Manufacturing Planning Systems  Use for Strategic Planning David L. Olson, University of Nebraska-Lincoln,               d...
Manufacturing Planning Systems• 1960s 1970s  – Continue to evolve• 1990s – ERP  – Integrated systems  – Expensive     • MA...
GMRG Data• Global Manufacturing Research Group• Since 1985  – Four rounds to date  – Same survey applied to manufacturers ...
Respondent Categories by Country                  None       Small    In-house        BOPSE        Total    Albania       ...
Are there significant differences across systems      in application to strategic planning?Degree of use of manufacturing ...
What types of systems are used for different                        functions?  Degree of use of manufacturing planning & ...
Are there significant differences across systems     in assessment of operations benefits? Degree of operations benefits o...
Are there significant differences acrosssystems in assessment of operations costs? Degree of operations costs (1-7 scale –...
Are there significant differences across systems inassessment of information systems data quality?          Satisfaction w...
Conclusions• There are a variety of ways to get MPS• Vendor systems better for strategic planning  – In-house systems not ...
MPS use by Function• Manual systems or desktop used by those  without formal MPS• Desktop systems used by all• Custom soft...
Operations Benefits & Costs• Major vendor systems provide more benefits  – But not significant except against None categor...
Data Quality• Major Vendor Systems rated best  – Small, In-House systems not significantly inferior
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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

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Manufacturing Planning Systems Use for Strategic Planning

  1. 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. 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. 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. 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. 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. 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. 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. 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. 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. 10. Conclusions• There are a variety of ways to get MPS• Vendor systems better for strategic planning – In-house systems not significantly inferior
  11. 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. 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. 13. Data Quality• Major Vendor Systems rated best – Small, In-House systems not significantly inferior

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