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Manufacturing Planning Systems Use for Strategic Planning
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Manufacturing Planning Systems Use for Strategic Planning

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David L. Olson, Bongsug Kevin Chae, Chwen Sheu, Manufacturing Planning Systems Use for Strategic Planning

David L. Olson, Bongsug Kevin Chae, Chwen Sheu, Manufacturing Planning Systems Use for Strategic Planning

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  • 1. Manufacturing Planning Systems Use for Strategic Planning David L. Olson, University of Nebraska-Lincoln, dolson3@unl.edu Bongsug (Kevin) Chae, Kansas State University Chwen Sheu, Kansas State University
  • 2. Manufacturing Planning Systems• 1960s 1970s – Continue to evolve• 1990s – ERP – Integrated systems – Expensive • MANY VARIANTS• MPS specific systems can handle planning, logistics functions – Not integrated – More affordable
  • 3. GMRG Data• Global Manufacturing Research Group• Since 1985 – Four rounds to date – Same survey applied to manufacturers in 17 countries• Our dataset – 964 responses – 736 answered question concerning ERP system used
  • 4. Respondent Categories by Country None Small In-house BOPSE Total Albania 8 3 11 Australia 4 17 9 20 50 Austria 1 7 6 14 China 1 8 29 15 53 Croatia 55 4 7 66 Finland 11 94 15 13 133 Germany 2 2 4 Hungary 9 16 15 10 50 Ireland 3 15 4 9 31 Italy 8 26 4 3 41 Korea 3 9 19 17 48 Macedonia 2 2 Mexico 38 8 11 57 Sweden 23 1 6 30 Switzerland 12 6 8 26 Taiwan 4 31 10 45 US 5 45 15 10 75
  • 5. Are there significant differences across systems in application to strategic planning?Degree of use of manufacturing planning & control systems for strategic planning (1-7 scale) Avg prob(diff) 1-tail small In-house BOPSE n none 1.679 .001*** 0.000*** 0.000*** 28 small 2.861 0.000*** 0.000*** 359 In-house 3.626 0.200 171 BOPSE 3.925 147
  • 6. What types of systems are used for different functions? Degree of use of manufacturing planning & control systemsCategory Material Inventory Labor Shop Floor Cost Planning Control Planning Control PlanningNone Manual Desktop Manual Manual Desktop, ManualSmall Modified Commercial Commercial, Modified Commercial, Commercial Manual commercial, Desktop ManualIn-House Custom Custom Desktop, Desktop, Desktop, Custom Custom Custom, CommercialBOPSE Commercial Commercial Commercial, Commercial, Commercial Desktop Desktop
  • 7. Are there significant differences across systems in assessment of operations benefits? Degree of operations benefits obtained (1-7 scale) Avg prob(diff) 1-tail small In-house BOPSE N None 4.172 0.000*** 0.053* 0.037** 29 Small 4.662 0.027** 0.108 359 In-house 4.442 0.743 165 BOPSE 4.483 143
  • 8. Are there significant differences acrosssystems in assessment of operations costs? Degree of operations costs (1-7 scale – 7 low cost) Avg prob(diff) 1-tail small In-house BOPSE n None 4.069 0.006*** 0.372 0.891 29 Small 3.714 0.021** 0.003*** 360 In-house 3.945 0.410 165 BOPSE 4.049 143
  • 9. Are there significant differences across systems inassessment of information systems data quality? Satisfaction with IS data quality (1-7 scale) Avg prob(diff) 1-tail small In-house BOPSE N None 3.429 0.003*** 0.004*** 0.001*** 7 Small 5.051 0.914 0.313 39 In-house 5.023 0.124 88 BOPSE 5.323 62
  • 10. Conclusions• There are a variety of ways to get MPS• Vendor systems better for strategic planning – In-house systems not significantly inferior
  • 11. MPS use by Function• Manual systems or desktop used by those without formal MPS• Desktop systems used by all• Custom software more common in in-house systems• Major vendor systems move away from manual, custom software, desktop
  • 12. Operations Benefits & Costs• Major vendor systems provide more benefits – But not significant except against None category• Small systems have cost disadvantage – Perceived overall costs of Major Vendor systems rated as reducing cost
  • 13. Data Quality• Major Vendor Systems rated best – Small, In-House systems not significantly inferior