Innovation in operations and

processesLesson 6

Chapter 8 + slides

What are operations?Operations include the processes that transform inputs into final output

What is a process?

All activities are part of processesThe process is a value-added processingAny process involving people and / or resourcesEvery process has inputs and outputs (results)Each process requires controls to ensure stabilityNeed to measure inputs, process activities, output

Process include all phases that transform inputs into final output

Information System Computer System

The term information system refers to the set of hardware, software and technologies that constitute

only a part of the real information system.

It 'good to clear then that the term information system means that

in regard to information management in the enterprise, or how it is

processed and communicated the information, however, the term computer is done

reference to everything related to the devices that will be used.

information system identifies an organized structure,

made up of people, procedures, computer equipment, which is

aimed to collect, select, evaluate and disseminate data and information to be used as

decision support.

system informations’s components

phenomena of interest to the company

information

stakeholdersdata assets procedures

principles & values

data processing employees

measurement of phenomena

It contains the following elements:

• A wealth of data (representing the raw material with which represent information)• a 'set of procedures for the acquisition, data processing and for production of information• a set of people who run these procedures• a set of tools and instruments necessary for treatment, transfer and storage of information.

data

information

knowledge release of

information

data processing

data acquisition

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Businesses began to use for the first time the technologies layout and grew up with computers and the Internet later in the 50s and 60s.

The introduction of computers in business necessitated the introduction of new systems that combine information technology with manufacturing processes. These systems, nowadays, play a key role in manufacturing industries where they are known by the name of MRP stands for Material Requirements Planning.

After nearly two decades, these systems are no longer able to meet all the needs of companies of the time, evolved into MRP II (Manufacturing Resource Planning).

Then due to the competitive pressure the companies found themselves in different position of having to revise their business strategies and redesign their business processes. Particular emphasis in recent times, have had, in fact, the draft of these business process reengineering (BPR - Business Process Reengineering), which aim to radically rethink how to operate in order to achieve significant improvements.

This activity leads to remove the existing information systems, both in terms of technology, that the realignment of business objectives.

The new systems are designed to adequately support the core processes.

The ERP Enterprise Resource Planning

have evolved over a period that has lasted forty years, introducing innovations both in the

business, which ininformation technology as a fundamental means

of this evolution. The biggest goal is reached that it has

implemented integration and synchronization of all the individual functions necessary to

management company.

ERP system

The idea of sharing the real benefit of such systems and that more than any other allows the integration.

The connectivity of these systems is provided by a set of software sub-system data sharing, once the data is stored, can be used by any division.

This organization provides immediate and visible benefits. At first, simplistic analysis would seem that the process information generated by an event of starting branches in different activities according to a sort of hierarchy: starting, for example, from a production order, it triggers a sequence of operations involving other departments as "child nodes" of the first event.

In fact, one can not speak of a tree, but of a network structure.The fundamental difference lies in the mode of interaction between

the various departments: each generates data that are below the node, the node brother and also the parent node, creating connections with all the equipment involved in the ongoing process and this is the true implementation of the concept integration.

Relationship between the additional modules

The most widely used ERP systems in the world are SAP and Microsoft

Dynamics. 1. Distribution2. Supply Chain Management3. Financial Management4. Production5. Human resource management6. Business Intelligence7. Customer Relationship Management (customer

relationship management)8. Project Management

1. Ease of access to confidential information2. Elimination of redundant data and3. Operations4. Reduction of life cycles5. Increase efficiency while reducing costs6. Greater adaptability to change

advantages and disadvantages

advantages and disadvantages

1. The implementation of ERP system2. Necessary process re-engineering3. Maintenance of the component under thecontrol of the seller4. Problem of disorientation