Enterprise Business Processes and Reporting (IS 6214) MBS MIMAS 20 th Jan 2010 Fergal Carton Business Information Systems

Last week Evolution of ERP from MRP ERP are used for visibility = control Revenue versus expenditure cycle Main modules of ERP

This week Degrees of integration Families of information systems ERP and reporting Decision support Compare plan to actual Data cubes Types of data Data collection

Degrees of integration 1 st degree: people talk to one another (informal) 2 nd degree: exchange of documents 3 rd degree: integrated systems shared by several functional areas 4 th degree: single integrated system shared by the whole firm

Families of Information Systems IS can be regarded as an umbrella name for the following systems: –Transaction Processing Systems (eg. ERP) –Reporting tools (eg. Data Warehouse) –Decision Support Systems (eg. Business Intelligence)

ERP Reports Based on hard reports – lists of transactions Originally targeted at middle managers each report took too long to create (hard coded); information was not refined enough; there was too much of it Not flexible Onerous in terms of processing

Different types of report exist: Scheduled reports (produced periodically) Exception reports (produced when something unusual happens) Demand (ad-hoc) reports (specific reports requested by a user) ERP Reports

Decision Support Systems set of tools provided to managers to assist them in solving problems in their own, personalised way. not all data computer generated support manager as opposed to replace them originally targeted at top managers interactive and flexible

What is a Decision?

Data for monitoring activities Norm or budget is put together: –based on experience, gut feeling or statistical analysis –corresponds to expected levels the more complete the model the more complete the monitoring measurement methods and procedures are also put together: the structure of the budget tells you what data to collect

Decisions compare plan to actual Compare –Plan to –Actual figure Decide on course of action

Example : sales figures Sales dashboard is a key tool: –Allocate responsibility for poor performance with more accuracy –Break down per product / market –Present both volumes, gross revenues and contribution figures Use colour coding to indicate where results are good or bad Use sales maps for visual impact Comparison with: –Budget figures (e.g. weekly figures) –Competitors –Previous period –Same period previous year in case of seasonality

Example of data cubes

Types of data 1 Volume data (production) consumption data (raw material, packaging…) personnel data maintenance data time related measurements productivity data All form the basis of the calculations used to monitor manufacturing activities …

Type of data 2 Primary data: –taken straight from the floor (input and output) –e.g. production, consumption, labour, maintenance –ad-hoc reports - e.g. accidents, defects Secondary data or calculated data: –allocated costs –productivity –pay bonuses –variances High level data: –investigations of variances –soft information about staff morale etc...

Type of data : Cucina What are the types of data you have for Cucina?

Type of data : static What are the types of data you have for Cucina?

Type of data : dynamic What are the types of data you have for Cucina?

Type of data: soft information Data collection - –Grapevine –factory tours (talking and observing) Data storage - –managers’ minds –special reports Data usage: –ad-hoc basis –decision making

Bad data recording No data! Too costly - e.g. in equipment or time not timely - lack of speed (e.g. weekly measure) inaccurate (e.g. procedure not well designed) wrong incentive / instructions given lack of control - open to dishonesty

Data storage Series of ad-hoc systems manual and computer- based (spreadsheet, filed forms…) Dedicated databases for manufacturing data (QC, shipping etc…) Process Control Systems (technical parameters) Other specialised proprietary systems (integration may not be easy). ERP system with its own data structure or fed by existing systems

Deciding what information to collect Information cost + overload mean not all data are useful Some framework can be used – e.g. Critical Success Factors (CSF) Questions that must be answered: –How is it measured and broken down? –How often should it be measured? –Who should know about it? –Where can the data be found? –How should it be presented?