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Manufacturing Planning Systems Use for Strategic Planning

This study examines the evolution of manufacturing planning systems and their use in strategic planning. The research analyzes the types of systems used for different functions, assesses the operations benefits and costs, and examines the quality of information systems data. The findings highlight the advantages of vendor systems for strategic planning and dispel the notion that in-house systems are inferior. Major vendor systems are found to provide more benefits and better data quality compared to smaller systems.

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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.eduBongsug (Kevin) Chae, Kansas State UniversityChwenSheu, 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

  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)

  6. What types of systems are used for different functions?Degree of use of manufacturing planning & control systems

  7. Are there significant differences across systems in assessment of operations benefits?Degree of operations benefits obtained (1-7 scale)

  8. Are there significant differences across systems in assessment of operations costs?Degree of operations costs (1-7 scale – 7 low cost)

  9. Are there significant differences across systems in assessment of information systems data quality?Satisfaction with IS data quality (1-7 scale)

  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

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