Supporting Slides

1
Supporting Slides
X
Systems for Planning Control in
Manufacturing Systems and Management for
Competitive Manufacture
Professor David K Harrison Glasgow Caledonian
University Dr David J Petty The University of
Manchester Institute of Science and Technology
ISBN 0 7506 49771
0000
2
Overview
05

• In Two Decades, Contribution of Manufacturing to
  GDP has Fallen from 35 to 22
• UK Manufacturing Industry Spends More on
  Information Technology than Machine Tools
• Key Determinants in Performance are Quality, Lean
  Production and Logistics

• Industrial
• Revolution
• Materials

• Information
• Revolution
• Knowledge

• Hardware and Software
• Dynamic
• Business
• Independent

• Non-Technical
• Slow
• Evolution
• Business
• Focused

Technical
Conceptual
Information Now Has Strategic Importance
0501
3
Evolution of IT Systems
05
Technical Developments Business
Developments Double Entry Book Keeping
1400 1700 Industrial Revolution Industrial
Economy 1700 1800 Jacquards Loom 1810 Babbage's
Analytical Engine 1880 Hollerith - Punch
Cards 1900 Fleming Invents the Diode Mass
Production 1900 1930 Wilson 's EOQ
Formula 1940 Theory of Computing German Wartime
Codes Cracked First Stored Program
Computer 1950 Bell Labs Develop the
Transistor Accounting Applications 1950 High
Level Languages Centrallised IT
Management 1960 Integrated Circuits Manufacturing
Applications 1960 On-line, Real-Time
Systems 1970 Large scale Integration (LSI) New
Applications (Eg. CAD) 1970 Micro-Computers 1980
IBM PC Launched De-Centrallised IT Systems
1980 Strategic Information Systems 1990 Windows
and GUIs Enterprise Resource Planning
1990 2000 WWW in common use E-commerce and
E-Business 2000
0502
4
Application of IT in Manufacturing
05
0503
5
Commercial Environment
05

• De-Centralisation
• Global Markets
• Rapid Change
• Maturity

These Factors Are Related to Four Competition
Mechanisms
0504
6
Marketing Strategies
05

• Lowest Cost
• Differentiation
• Niche
• Barrier

Information Systems Seen as a Competitive Weapon
0505
7
Appropriate Systems
05

• IT/IS Systems Critical
• One Reason for the USAs Resurgence
• 52 of US Investment was in IT/IS in 1999
• How Do We Provide Appropriate Systems?

0506
8
Parkers Model for System Provision
05
User Requests
Business Requirements
Initial Study
IT / IS Dept. Development
End User Development
Change Establish if the System Needs to be Changed
Make Develop in House Systems Tailored to Needs
Buy Purchase a Package to Meet Needs
Help Allow Users to Develop Their Own Systems
0507
9
User Led Systems
05

• Makes Use of New IT/IS Technology
• Three Main Advantages
• Ownership
• Understanding of Needs
• Eliminates Training
• Conditions
• Single User or Department Use
• No Direct Update of Corporate Systems
• Read-Only Access of Corporate Systems
• Management of Personal Data
• Ad-Hoc or Frequently Changed Reports
• No Interface Problems

0508
10
Packaged Solutions
05

• Increasingly Common
• Advantages
• Reduced Cost
• Used Widely
• Development Expertise
• Evaluate Supplier
• Deliverables (Source Code?)
• Usage (No of Users?)
• Support (Help Line?)
• Organisation (Stable/Secure?)

0509
11
Package Evaluation
05
0510
12
Options for Modification
05

• Quick and Lowest Cost
• Take-up of New Releases
• Needs User Commitment
• Is this a Showstopper?
• Builds Knowledge In-House
• Inhibits Take-up of New Releases
• Also Possible to Sub-Contract
• Employs User Exits or Hooks
• Difficult to Show Errors in Package
• Also Inhibits Take-up of New Releases

• Use As Is
• Modify Internally
• Modify Externally

0511
13
In-House Solution
05

• Expensive
• Can Delay Implementation
• Are Requirements Stable?
• Can Institutionalise Poor Practices
• Can Divert Business Focus

0512
14
Modify Existing Systems
05
Often Seems Attractive Because of Speed and Low
Disruption

• Are Systems Viable Over the Medium Term?
• Are the Systems Well Documented?
• Are the Required Skills Available?
• Does the Modification Conform to the IT/IS
  strategy?
• Is the Modification Justified in its Own Right?

• Technology
• Documentation
• Skills
• Strategy
• Justification

Can be a Quick and Dirty Solution
0513
15
Should the Request be Changed?
05

• Is the Request Consistent with Needs?
• Do Alternatives Exist (e.g., Manual Systems)?
• Is the Correct Problem Being Addressed?
• Can Business Processes be Changed?

These issues are emphasised in BPR and SSM
0514
16
Manual Vs Computer Systems
05
Advantages - Computer
Advantages - Manual

• Effort in Complex Systems
• Unique Reports
• Security (Backup)
• Distributed Access
• Speed of Access
• Intolerant of Poor Design

• Effort in Simple Systems
• User Understanding
• Security (Access)
• Flexible
• Speed of Access
• Tolerant of Poor Design

Which Method is Best Will Depend Upon the
Circumstances
0515
17
Symptoms of Poor Design
05

• Symptoms
• Redundancy
• Duplication of Effort
• Data Replication
• Re-analysis
• Transcription
• Problems May be Unavoidable
• Should be Checked

0516
18
System Justification
05

• Initiation
• Existing Capacity
• Cost
• Better Information

• New Opportunities
• Forced Changes
• Image

Think Carefully System Implementation is Usually
More Expensive than Originally Thought
0517
19
Review of System Provision Issues
05

• Different Approaches for System Provision
• Advantages and Disadvantages
• Business Processes Can be Changed
• This Can Yield Large Business Benefits

0518
20
SSA - Principles
05

• Objective Building a Battleship
• What Approach Should be Taken?
• Start Welding Plate Together?
• Produce a Design?

• Objective Developing an IT/IS System
• What Approach Should be Taken?
• Start Keying into MS Access?
• Produce a Design?

0519
21
Development Methodology 1
05
0520
22
Development Methodology 2
05
0521
23
Software Development Costs
05
Cost
Time
1
2
3
4
5
6
7
Evaluation and
Changeover
Implementation
Detailed
Systems
Systems
Scope and
Investigation and
Maintenance
(Operation)
(Programming)
Design
Design
Analysis
Objectives
Feasibility Study
0522
24
Personnel
05

• End User of the System
• Responsible for Moving from One System to Another
• Team of Senior Managers to Oversee an
  Implementation
• Determines the Requirements and Overall System
  Design
• Defines the System Design
• Develops Actual Program Code

• User
• Implementation Team
• Steering Committee
• Business Analyst
• Systems Analyst
• Programmer

0523
25
SSADM - Overview (1)
05

• Structured Systems Analysis Design Methodology
• Developed by the UK Government
• A Structured Systems Analysis (SSA) tool
• Complex and Comprehensive Methodology

0524
26
SSADM Overview (2)
05
Sequence
0525
27
Systems and Analysis Concepts
05
Resolution into Smaller Elements

• Analysis
• System Boundaries
• Human Understanding
• Hierarchy
• Functional Decomposition
• Emergence

0526
28
Summary
05

• Systems are Crucial
• Two Aspects to Systems Design
• System Design is Expensive
• The Consequences of Failure are Serious
• Good Planning is Usually Rewarded
• Lack of Planning is Usually Punished

0527
29
Terms of Reference
06

• Often Not Clearly Defined
• Need to Obtain an Overview First
• Re-visit Terms of Reference
• Define the System Boundary

0601
30
Sources of Information
06

• Documentation
• Observation
• Questionnaires
• Objective Measurement
• Interviews

0602
31
Interviews Good Practice
06

• Explain Purpose
• Put Interviewee at Ease
• Prepare Questions
• Never Criticise
• Never Criticise the Firm

• Summarise Points
• Take Notes
• Short Interviews
• Follow-up
• Discuss Analysis

0603
32
Observation Test Start
06
The Cat Sat on The The Mat
0604
33
Observation Test Times-Up!
06
The Cat Sat on The The Mat
0605
34
Patterns
06
0606
35
Patterns - Revealed
06
0607
36
Interviews - Pitfalls
06

• Non-Cooperation
• Users May Try to Please Analyst
• Users Find Expression Difficult
• Easy to Jump to Conclusions

Initial Findings Should be Summarised in a Report
0608
37
Organisation Charts
06
J. Astle
Managing
Director
R. Taylor
A. Hartford
C. Suggett
B. Robson
Technical
Finance
Production
Sales Director
Director
Director
Director
L. Cantello
E. Maresca
C. Regis
J. Osbourne
R. Robson
L. Cunningham
D. Howe
R. Moses
Chief
Electrical
Technical
Commercial
Management
Materials
Works
Production
Designer
Design
Sales
Sales
Accountant
Manager
Manager
Engineering
0609
38
Block Diagrams
06
0610
39
Reporting Guidelines
06

• Who Does the Work?
• What Information is Used?
• How is Information Communicated (Forms)?
• Limitations of Systems
• New Methods of Operation - Possibly with
  Alternatives
• Recommendations for Moving Forward
• Detail is Important in System Description

0611
40
Early Stages - Review
06

• Early Stages are Important
• Tempting to Omit
• Time Spent is Usually Rewarded

0612
41
Systems Design Analysis
06

• How Will Requirements be Met?
• Representation and Modelling
• Logical, Formal, Graphical Techniques
• Not Related to Hardware/Software
• Flow Charts, DFDs, RFDs and IDEF0 Models

0613
42
Systems Design - Two Philosophies
06
Old Physical
Emulation
System
New Physical
System
Additional
Factors
Abstract Model
Abstract Model
of New System
of Old System
New
Integrated System
0614
43
Flow Charts Basic Symbols
06
On Page Connector
Flowline
Manual Operation
Off Page
Connector
Document
Collate Activity
Generalised
Sort Activity
Off-Line Storage
Generalised
Decision
Input/Output
0615
44
Flow Charts Example
06
Sales
Sales
Order
Order
Customer
4
3
2
1
Internal
Order Form
Prepare
Order
Form
Yes
Credit
4
O.K.
3
2
1
Internal
No
Credit
Order Form
Control
4
3
2
1
Internal
Sales Order
Order Form
Determine
Processing
Catalogue
Number
Letter to
Customer
4
4
3
3
2
2
1
1
Internal
Internal
Order Form
Order Form
Despatch
Product
Despatch Dept.
No
Letter to
Yes
Invoice
Customer
0616
45
Flow Charts Pros and Cons
06

• Advantages
• Simple
• Intuitive
• Easy to Explain
• Disadvantages
• Cannot Cope with Complexity
• Does not Correspond to Real Systems
• Not Easy to Turn into a System

0617
46
Representation of Data Flows (1)
06
The Relationship of Activities within a System
and the Data that is used

• External Entities

• Must Be a Noun

Customer
Name
Identifier

• Data Store

Supplier Details

• D Computer Store
• M Manual Store
• T Transient Store
• T(M) Transient Manual Store

D1
Identifier
Location
1
Payroll Clerk

• Process

• Must be a Verb

Enter Payroll Details
Name

• Data Flow

• To or From a Process
• Between External Entities
• Should Not Cross

0618
47
Representation of Data Flows (2)
06

• Information Flows to or From a Process
• Data May Flow Between External Entities

Title Invoice Payments
Supplier
Cheque
Invoice
2
Payments Clerk
Goods Inwards
Produce Cheques
GRN
Invoice Queries
GRN File
M1
Invoices for Payment
1
Purchase Clerk
Authorised Invoices
GRNs
Match Invoices, Purchase Orders and GRNs
Accounts Payable Details
D2
PO Details
PO Details
Purchase Order Details
PO
D1
0619
48
Representation of Data Flows (3)
06
Supplier
1
Match Invoices, Purchase Orders and GRNs
Purchase Order Details
D1
Invoice
PO Details
1.1
Purchase Clerk
Match Documents
Invoice Queries

Pending Queries List
GRN
TM1
GRN
GRN File
Goods Inwards
M1
Queries
1.2
Purchase Clerk
Act on Matching Outcome

Authorised Invoices

• Different Levels Must be Consistent

Accounts Payable Details
D2
0620
49
Representation of Data Flows (4)
06

• DFDs Can be Functionally Decomposed
• DFDs Should Follow the 7 2 Rule

1
2
3
4
5
6
3.2
3.1
3.3
3.5
3.4
3.3.1
3.3.2
3.3.3
3.3.4
3.3.6
3.3.5
0621
50
Use of DFDs
06

• DFD Types
• Current Physical
• Current Logical
• Required Logical
• Required Physical
• Avoid Unnecessary Complexity
• Use Functional Decomposition
• Even if Formal Methods Not Used

0622
51
Resource Flow Diagrams (1)
06
The Flow of Physical Items Through a Systems

• External Entities

• Must Be a Noun

Customer

• Item Flow

• Must Be a Noun

Raw Material
Raw Material in Stores

• Item at Rest

• Must Be a Noun

• Data Flow

• Between Items at Rest

0623
52
Resource Flow Diagrams (2)
06
Delivery Note
Goods in Receiving Area
Supplier
Goods
Goods
GRN
Goods in Stores
Shop Floor
Goods
Requisition
0624
53
ICOM Diagram
06
Control
Input
Output
Function
Mechanism
0625
54
IDEF0 Example Levels 0 and 1
06
Request
Level 0
for Coffee
Level 1
Cup of
Water
Serve
Coffee
Coffee
Ingredients
Request
for Coffee
Cup and
Spoon
Kettle
Whistle
Boil
Water
Functional
Kettle
Hot Water
Decomposition
1
Cup of
Add
Coffee
Ingredients
Ingredients
2
Cup of
Serve
Coffee
Cup and
Coffee
Spoon
3
0626
55
IDEF0 Example Levels 1 and 2
06
Request
Kettle
Level 1
for Coffee
Whistle
Level 2
Cup of
Ingredients
Add
Coffee
Ingredients
2
Hot Water
Request for Coffee
Kettle
Whistle
Cup and
Spoon
Cup Plus
Add
Ingredients
Coffee
Coffee
1
Cup Plus
Add
Ingredients
Sugar
2
Cup of
Add Hot
Coffee
Hot Water
Water
3
Cup and Spoon
0627
56
IDEF0 Rules

• Use Requirements/New System Definition
• Always Use Verbs
• Adopt Numbering Convention
• Never Exceed Eight Tasks
• Always Check Between Levels
• Use Radii on Lines

0628
57
IDEF0 Functional Decomposition
06
0629
58
IDEF0 - Example
06
0630
59
Limitations of the Classical Approach
06

• Hard Systems Problems
• Redundancy
• Duplication of Effort
• Data Replication
• Re-analysis
• Transcription
• Other Methodologies Available

0631
60
Hard Systems Assumptions
06

• Clearly Defined Existing System
• Clear Objectives
• End Result is a Computer System
• Objective Measure of Performance
• Professional Analysts are Required

0632
61
Hard Systems Limitations
06

• Problems NOT Clearly Defined
• Not All Cases Can be Analysed
• Human Issues Can be Ignored
• Reactive Approach
• Can Lead to Passive Users

0633
62
Soft Systems Methodology
06
Real World
Systems Thinking
0634
63
Root Definitions
06
CATWOE
Customers Actors Transformation Process
Weltanschaung Owners Environment
The university is an institution for teaching,
learning and research (W) responsible to the
Government (O) within the higher education sector
(E). The activities of the institution are
carried out by the university staff (A). The
universitys objective is to develop the
abilities of its students and undertaken research
(T) for the benefit of the UK economy
(C). OR The University is an institution for
increasing the sum of human knowledge (W)
responsible to its governors (O) within the broad
context of the academic community (E). The
universitys objective is to provide a fertile
environment for its staff and students (A) to
develop their ideas and understanding (T) for the
benefit of the various disciplines represented in
the institution throughout the world (C).
Can be Difficult to Use in Practice Root
Definitions can be Useful
0635
64
Data Structure Analysis
07

• Hardware Performance x 100
• Software Development x 10
• Complex Systems
• Need to Improve Productivity
• Logical, Formal Approach

0701
65
Approaches to Data Storage
07
Application Centred
Data Centred
Datafiles
Datafiles
Database
Datafiles
Datafiles
Limitations
0702
66
E-R Modelling Overview
07
A Technique for Formally Representing Data Systems

• Entity

• An Object or Concept Capable of Independent
  Existence
• Must Be a Noun

House

• Attribute
• (Often Omitted)

• Must Be a Noun
• A Property of an Entity
• Identifier An Attribute or Attribute Group that
  Uniquely Identifies an Entity

Lives in

• Relationship

• Must be a Linking Statement
• An Association Between Two Entities

Number
Street
House
Family
0703
67
Relationships - Obligatory
07
0704
68
Relationships - Non Obligatory
07
0705
69
Relationships Recursive
07
0706
70
E-R Diagrams - Example
07
N
Ordered
Order
1
N
Item
N
M
1
M
1
Stored
Location
Has
Made
1
1
Status
1
N
Has
Routing
Op.
E-R Models Can Form the Basis for Data Tables
0707
71
Connection Traps
07
0708
72
Databases
08

• Organisations Need to Control Data
• Important for Competitiveness
• Types of Database
• Unstructured
• Simple Flat File
• Integrated Database

0801
73
Flat File Databases
08
Record
File
Field
0802
74
Flat File Database Example
08
Reference
010293
Key
Author
Gascoigne P. and Barnes J.
Source
Journal of Sports Injuries
Volume
Number
Year
3
7
1995
Title
Recurrent Injury Problems for Professional
Sportsmen and Women.
Synopsis
Many professional athletes can experience injury
problems which extend over months or even years.
This paper reviews a number of case studies of
individuals who have experienced chronic injury
problems during their career.
0803
75
Use of Indexes
08
Index (1)
Physical
Author
Order
Atkins T.
55
Doe J.
21
Bloggs F.
n
Gascoigne P.
18
Barnes J.
Smith A.
79
Jones B.
Index (2)
Journal
International
23
Magazine of...
4
3
Journal of
2
67
1
Sports....
Sports Inj.
65
Review
Sports Sci.
33
Monthly
0804
76
Database Development
08
Implementation

• Alphanumeric
• Integer
• Real Number

• Date
• Logical
• Others

0805
77
Common Problem
08
GOS12457/B GOS12457\B

• Ambiguity
• Classification

Field Types
Lookup Tables
0806
78
Relational Databases
08

• Database Management Systems (DMS)
• Data Structuring
• Validation and Recovery
• Data Manipulation Language
• Levels of Abstraction
• View
• Conceptual
• Physical
• Design of Tables

0807
79
Principles of Table Usage
08

• Order of Rows is Irrelevant
• Order of Columns is Irrelevant
• No Duplicate Entries (Keys)
• A Row/Column Intersection has a Single Value

Normalised Table
Attribute
Attributes Type
Table Name
Occurrence
Directory
surname
first name
tel number
0161-745-5000
Abbott
Louis
Wright
Orville
0161-652-6521
Cannon
Thomas
0151-362-8947
0121-498-3698
Dankworth
John
Everly
Donald
0181-357-9518
0181-357-9518
Paul
Simon
Crick
Francis
0171-888-7771
Directory(surname, first name, tel number)
0808
80
Determinacy and Normalisation
08
0809
81
Design of Data Tables Example
08
0810
82
Data Linking and Control
08
Table 1
Data
Link
Maintenance
Table 2
Framework

• Tables are Linked Via the DMS Data Manipulation
  Language
• Tables Can Only be Updated Independently with
  Caution
• Independent Update/Deletion Can Corrupt the
  Database

0811
83
Databases - Review
08

• Details of Operation Vary with Different DMSs
• Set of Common Principles
• Formal Methods Can Create Robust Databases

0812
84
Changeover
08
Modes of Changeover

• Single Stage
• Parallel
• Phased
• Pilot

0813
85
Implementation Tasks
08
0814
86
Data Entry
08

• Static Data
• Dynamic Data

• Phased Entry
• Immediately Prior to Changeover

Issues Is Data Accurate? Does All Data Need to
be Entered? Can Data Entry be Phased?
Systems Need to be Supported and Reviewed After
Going-Live
0815
87
BPR - Overview
09

• Michael Hammer and James Champy
• Reengineering the Corporation A Manifesto for
  Business Revolution
• One of the Best Selling Management Texts Ever
• Employed by 70 of American Corporations

0901
88
Nature of Change
09
0902
89
Business Processes
09
Input
Output
Supplier
Customer
0903
90
BPR Approach 1
09
0904
91
BPR Approach 2
09

• Change of Operating Practices is Key
• Challenging Eliminating Flattening
• Simplifying Standardising Paralleling
• Empowering Informating Monitoring
• Partnering Outsourcing Pre-scheduling

• Re-Design
• Re-Tool IT
• Re-Orchestrate

3 Rs

• IT is a Major BPR Enabler
• Do Current IT Systems Support Business
  Processes?
• Are New, More Appropriate Technologies Available?

• Organisational Changes are Necessary
• Commitment Incentives Communication
• Confidence Accountability Obstacles
• Celebrate

0905
92
Organisational Structures
09
Hierarchical
Flattened
Matrix
Instructions
Reports
Matrix Organisations Advantages Disadvantages
? Responsive and Clear ? Staff Can Have
Conflicting Priorities ? Customer Focused ?
Problems in Existing Companies ? Encourages
Initiative ? Difficult to Manage Service
Functions ? Encourages Teamwork ?
Reward/Promotion Structure
0906
93
Hierarchical vs Matrix Structure
09
Managing Director
Hierarchical
Prod Production Elec Electrical Mech
Mechanical Des Design Rep Representative
Finance Director
Technical Director
Production Director
Accounts Manager
Purchasing Manager
Sales Manager
4 x Prod. Supervisor
Maintenance Manager
Elec. Des. Manager
Mech. Des. Manager
4 x Cost Clerk
Payroll Clerk
4 x Buyers
4 x Sales Clerk
4 x Sales Rep.
4 x Fitters
40 x Operators
8 x Elec. Designers
8 x Mech. Designer
0907
94
BPR - Summary
09

• Two Modes of Change Continuous and Step
• BPR is a Comprehensive Philosophy
• Requires Organisational Change
• Can be Challenging
• Not an IT/IS Approach
• IT/IS is a Key Enabler
• Along with TQM, BPR is Highly Influential

0908
95
Course Book
X
Systems for Planning Control in
Manufacturing Systems and Management for
Competitive Manufacture Professor David K
Harrison Dr David J Petty ISBN 0 7506 49771
0000