Pemodelan sistem

  SYSTEM

  Definition:

  • A system is understood to be a whole composed of elements that are related to each other.

SISTEM MODELING

  • The cohesion will emerge from the fact that

  the elements are linked together by their Materi 1 2 relations.

  System

  • Briefly defined, one might say that a system is

  a collection of elements in their entirety and the relations between them.

  SYSTEM System (Inner-Outer)

  • Theory: General system theory (L.V Bertalanffy,1956)
  • Symbolization of the concept sy
  • –Inner-System Boundary-Outer (Environment)
  • >Open system vs. Closed system
  • Content of the sys
  • The complete collection of all elements without the interrelations of these elements being taken into

  Elements and the Relations between Sub-System

  Elements

  • Elements of a system are characterised by certain features –>physical,geometrical,aesthetic,social-psychological or econ
  • If a relationship exists between one or more elements

  then if the characteristics of those elements change then the other elements will similarly change 5 6

  • Relations between the elements are indicated by means of a simple line.
  • Relations can be in terms of technical, economic, socio- psychological aspects.

  Relationship between System:

  System thinking Elements

  • Thinking in terms of systems -as opposed to seeing

  snapshots or discrete events with little or no interrelationship.

  • Peter Senge, in his bestselling book The Fifth Discipline:

  describes how our mental models, or personal paradigms, are often developed from our tendency to

  break down large problems into smaller manageable parts. Why we need Systems Thinking System thinking

  Senge views the problem as systemic in nature System thinking: Thinking in terms of and not easily or quickly overcome in organizations. systems

  • The core of the problem is that our world is one of
  • dynamic complexity, the mastery of which cannot

  System thinking: A problem methodology

  be achieved by focusing on details alone without systems fluency.

  approach

  • Senge describes a simulation, called The Beer Game.
  • 9 • System thinking: Observing is viewed as 10 The game clearly demonstrates how experienced decision-makers can fall into a trap of thinking mental activity –Mental Model

      of their actions as isolated and helps them to better understand their roles within systems.

      System:Mental Model Aspects System

    • Represents a partial collection of the system relation • There are various aspects of system –e.g.

      technical, economic, socio-psychological aspects

    • The various aspects have been connected together by means of what are termed
    Multi-Aspect System: 3 Independent Aspects

      Integrated System

      13 14 Example-1: Multi Disciplinary Approach Multi-Disciplinary Approach

      For A Multi-Aspect Problem

    • A mono-disciplinist is seen as someone with specialist knowledge in the area of a single – mono-discipline (He will only be able to construe a mono-aspect v
    • With increasing complexity of technical system

      and increase in the number of relevant aspects –

      Example-3: An Interdisciplinary Example-2: Multi Disciplinary Approach Approach For A Multi-Aspect Problem

      For A Multi-Aspect Problem

      17 18 Industrial Engineering (IE) What Does IE Do? Typical IE Questions

    • Is the system providing the best possible economic

      return to its owners?

    • Are some products not economically viable? Which ones?
    • Are resources being utilized appropriately? Where is capacity excessive or inadequate?
    • Is the mix of resources appropriate? Are new technologies needed?
    • 21 22<
    • Are the resources organized and managed properly?
    • Are suppliers' prices, terms, delivery, and quality

      appropriate?

    • Are the products/services meeting customers'

      needs? How could they be improved? Needs A Comprehensive Approach: Systems Modelling

    • Increased Complexity of Today’s Decision Making
    • The 20 th

    • Information Technology has revolutionized commercial activities
    • The creation of huge multi-national corporations
    • The problems of overpopulation and others
    •   Materi 2 System Thinking 25 System Thinking

        century has been marked by unprecedented technological progress

      SISTEM MODELING

      • Today’s world has increased in complexity
      • The traditional methods of problem solving based on the cause-and effect model cannot cope any longer.

        Construction of the Aswan Dam

      • Intended to increased agriculture produc
      • It also caused an unprecedented increased in
      • >⇒ Improve the road network &amp; parking facilities ⇒ Reduce patronage of public transport facilities ⇒ resulted fare hikes &amp; curtailment of service frequency &amp; coverage.
      • ⇒accelerated the shift from public to private

      • Increased car owner after WW II
      Assessment of Unit Production Efficiency versus Effectiveness

        schistosomiasis (affected 60% fellahin)

      • It trap fertile silt, increase use of fertili
      • Together with poor drainage causes salinization

        ⇒ land unsuitable for agriculture

        Deterioration of Urban Transport

        Costs

      • Unit production cost is all material, energy, &amp; labor
      • The firm may be very efficient in the use of its

        costs then dividing the total by number of parts produce.

        resources, but this efficiency is not put to

      • The efficiency assessed on level of unit production effective use in term of the firm’s overall cost.

        objectives of goals.

      • That rule works fine for simple one stage production
      • Technical efficiency, using a given set input to

        process, when no difficulties in selling all its output

        produce the maximum level of output, or

      • How if we faced with complex multi-product – multi-
      • 28 29

          producing a given level of output with the

          stage process? The machine center’s looks good, minimum amount of input. but ends up with excessive intermediate parts stocks that are costly to finance &amp; maintain &amp; run

        • Economic efficiency, in term of maximizing the

          the risk of obsolete difference between revenues &amp; total cost.

          Unplanned &amp; Counterintuitive

        • Effectiveness, looks at how well the goals of

          Outcomes activity are achieved.

          Trade-off between variables will affect overall Action A will cause the desired outcome B to be effectiveness of the system. realized.

        • Efficiency is minimizing waste and maximizing But in addition to B, A also causes C, D, and E to utilization of resource.

          happen Some of these outcomes are unintended, Efficiency is not the enemy of effectiveness.

        • unpredicted, and may negate the outcome B.
        • Efficiency takes overall goals of organization into
        Reductionist and Cause-And-Effect Thinking

        • Cause-and-Effect Thinking
        • All phenomena are explainable by using cause-and-
        • The traditional scientific model of thought are effect relationship.

          based on two major ideas: Reductionist and

        • A is taken to be the cause of B

          Cause-and-Effect Thinking

          Reductionism: Everything can be reduced,

        • Viewing the world in this way, everything can be

          explained by decomposing it into parts and looking decomposed, or disassembled to ultimately for cause-and-effect relationship between the parts. simple parts.

        • Breaking a problem into a set of simpler subproblems,
        • But it may be inadequate to examine the causal solving each of these individually and then
        • 32 33 relationship one by one. assembling their solutions into overall solution fo
        • New properties may emerge through the interaction whole problem.
        • But sum of individual solutions does not necessary between the parts (emergent properties).

          produce a best solution for the whole system

          Systems Concept Systems Thinking

        • Defining Systems:

          Out-There View of Systems

          With the systems thinking, something • e.g., our solar system (sun &amp; its 9 planets).

          to be explained is viewed as parts of a

        • Seen as absolute; Exists out-there; Viewed as independent of observer.

          larger whole, a system, and is explained

        • Inside-us View of Systems in term of its role in that system.
        • Depend on what the person viewing something as a system • Different people may define the same system in different way.

        • Systems as a Human Conceptualization
        • World view of observer/Weltanschauung

          Only human observer that may view something as a system.

          (personal factors)

        • For examples:
        • An estuary is viewed as a beautiful place (not a system)
        • A few feet away from the path (not a system)
        • As an ecological system
        • >Effect of Previous Knowledge • System’s definitions are subjec
        • Cannot be labeled “right” or “valid” &amp; “wrong” or

          “invalid”

        36 Defining Systems

        • The point that system are human conceptualization is clearly driven home by the fact that majority of system conceive are not our personal view of some real assembly of thing out there in the real world.
        • 37 Subjectivity of Systems Descri
        • Valid for the person making it
        • Dependent on the aim and purpose for building it
        • >Compo
        • Relationship • Behavior (or the activities or the transformation
        • Environment
        System as Black Boxes Hierarchy of Systems Environment

          Formal Definition of The concept System

          1. A system is an organized assembly of components 2.

          The system does something.

          3. Each component contributes towards the behavior

          of the system and is affected by being in the system.

          4. Groups of components within the system may by

          The Crucial elements of a system

          process)

        • The complexity of real live

          ⇒ have no or only incomplete knowledge of the inner workings of Wider system of interest system, even where the physical components are able to identify.

        • This lack of knowledge is affected by random aspects.
        • In other situation the transformation process is
        • 40 Narrow system 41

            known exactly. However, rather than represent of interest it in full detail, it may be perfectly adequate to view as black box by single functional relationship.

          • Hierarchy system is the nesting systems within

            System Behavior systems.

          • The containing system becomes the environment of the contained system.
          • System state, the set of value assumed by all state
          • variables as of given point in time.

            Containing system exercise some control over

          • State variables are attributes of system component, the contained system.

            at any point in time each state variables has a given

          • The controlling may set the objective of the numerical or categorical value.

            contained system, monitoring it achieve the

          • Variety of system behavior, system behavior can be objectives, &amp; have control over some crucial almost infinitely varied, even for very simple system.

            Control System Types of Systems

          • Discrete system, the states of system jumps through a
          • sequence of discrete states.

            Control is exercised by imposing something on the system in form of inputs

          • Continuous system, the state of the system change
          • A set of decisions or decision rules, or simply an initial continuously, because there are continuous variables.

            state for the system.

          • Deterministic system, the behavior is predictable in every • detail.

            Three conditions are needed for exercising control over system behavior

          • Stochastic system, the behavior is not completely
          • 44 45<
          • A target, objective, or goal for the system predictable, affected by random or stochastic inputs.
          • A system capable of reaching the target or goal
          • Closed system, is one that not receive anything from its
          • Some means for influencing the system behavior - the environment.

            control inputs

          • Open system, interact with the environment, by receiving inputs from it &amp; providing output to it.

            Types of controls

          • Open loop controls • Often in the form of a recipe or a set of rules to follow (e.g.

            starting the engine)

          • Closed loop controls (Feedback contr
          • Information about the system behaviour is fed back to the controller for evaluation.
          • This may lead the controller to adjust the control signals (e.g.

            Control the temperature of the shower water)

          • A System is described by:

            System in a decision making

          • Observer: Who is interested in the system?

            Decision maker context

          • Purpose: Why define the system?

            Improve, output of interest

          • A system is an organized se
          • Environment: outside the system. Define the system

            boundary components and relationships that do • Inputs: Affect the system but are not affected by it. something that none of the components

            Can be controllable or uncontrollable. Decision

            variables/parameters can do alone.

          • Outputs: Are affected by the system. These are of
          • interest to the observer. Include measure of success

            We use system models as a convenient 48 49

          • Components: Both affect and are affected by the

            way to view something in order to aid system. decision making (to solve a problem).

          • Relationship/transformation process: Between system inputs, outputs and components.

            Definition of A Problem

          • There must be an individual (or a group of

            individuals), referred as the decision

          PEMODELAN SISTEM

            maker who:

          • Is dissatisfied with the current state of affairs

            Materi 3

          • Knows when goals have been achieved
          • 51<
          • Has control over aspects of problem situation

            Problem Formulation that affect the extent to which goals can be achieved

            Four Elements of A Problem Problem Elements:[LOD]

          • The decision maker: the LOD manager
          • The decision m
          • The objective: keeping the cost of the LOD’s
          • The decision maker’s objective

            operation as low as possible, subject to

          • maintaining the same level of customer service.

            The performance measure for assessing

          • The performance measure: the total

            how well the objectives have been operating cost of the LOD

            System Relevant [LOD]

          • The widest system: the company as a

            whole

          • The refinery: one of its subsystem 54 system
          • The LOD: a subsystem of the refinery
          • 55<
          • Within LOD system:
          • the production/inventory control operation form one of its major subsystem (i.e. the narrow system of interest)

            Components of the Stock Influence Diagram [LOD] Replenishment System

            Influence diagram shows: See Table 5-1, page 110

          • >How the control inputs and other inputs affect the system variables for various system components, and
          • How these in turn affect the system outputs, in particular the performance outp
          • Note: the easiest approach to draw an influence
          • Performance measure
          • Uncontrollable Inputs •

          • Controllable Inp>

            • The collection of all possible courses of action you might

            >Interaction among These Components
          •   58 59 Components of a Model

              Parameters

            • • These are logical, and mathematical function representing

              the cause-and -effect relationships among inputs, parameters, and the outcome.
            • There are also set of constraints which apply to each of t
            • Actions

            PEMODELAN SISTEM

              Materi 4 System Characterization 61 System Characterization:

              [Murthy et.al,1990]

            • The SYSTEM APPROACH Offers a universal framework for treating such distinctly different problems
            • In the systems approach the real world associated with
            • A total description -unmanageable
            • Not all features of the real world are

              the problem is viewed as a system

            • The solution to the problem is viewed as a study of the
            • A partial description is often adequate

              system with a defined goals

              System Characterization: [Murthy et.al,1990]

              relevant to the problem or its solution

            • System/Variable/Param>A Black Box descript>Variables are attribute needed to describe interaction between objects (components)
            • Parameters are attribute intrinsic to an ob>Described only by the variables through which it interacts with its environment, and the inner structure of the system is ignored (A Black Box descript>System/Environ>The interaction between the system and its environment is through variables common to >A White Box descript
            • If one can describe all objects in the system and their attributes (through variables and relationships) -describing the system a greater detail (A White Box description)

            64 Basic Concepts

            • Relations
            • The interaction between objects are described through relationships linking the variables of the interacting objects
            • 65 Degree of Detail

                Degree of Detail

                System Characterization

              • Static vs Dyn
              • The degree of detail needed to describe a
              • >static systems -time does not play any part
              • dynamic systems-time plays a very important role
              •   system appropriately depends on many factors

                • If all the details are included - the description is

                  unmanageable

                • Continuous Time vs Discrete
                • In dynamic systems either some or all of the variable are changing with time -the change take
                • However, if significant details are omitted the

                  Keputusan Pembelian Terigu System Characterization • Pabrik roti membeli terigu dengan harga $1000 per ton.

                • Time Scale in Dynamic Systems

                  Kebutuhan terigu relatif konstan selama setahun dengan

                • the variables change with time

                  total permintaan per bulan sebesar 20 ton. Terigu dikirim

                • The term ‘time scale’ is used to indicate the dari pabrik terigu dengan menggunakan truk dan ongkos duration for significant changes to occur in a per sekali kirim $132, tidak tergantung dari jumlah terigu variable yang diangkut.

                  Uang yang digunakan untuk membeli terigu berasal dari Deterministic vs Stochastic suatu investasi dengan interest sebesar 8% per tahun.

                • If the values assumed by the variables are
                • 68 69 Juga, terigu yang disimpan diasuransikan dengan premi predictable with certainty (Deterministic systems) 16% yang dihitung berdasarkan nilai rata
                • If not, then uncertainty is a significant feature of persediaan per tahun. Manajer pembelian ingin the system -the changes in the variable are mendapatkan kebijakan pembelian terigu yg lebih baik random and unpredictable (Stochastic systems) dari yang terjadi sekarang.

                  System Description Mathematical Model

                72 Mathematical Model

                  73 Mathematical Model EOQ Model

                  Solution

                76 Validation:[Internal]

                  77 Validation:[Internal] System/Model Overview

                • Introduction • What is a mathematical model?
                • Why do we build a mathematical model?
                • How to build a mathematical model?
                • An illustrative case (Case of LOD)
                • Formal Approaches for finding the optimal

                SISTEM MODELING

                  Materi 5 Mathematical Modeling 81 OUTLINE

                  solution

                  INTRODUCTION

                • A mathematical model: Express, in
                • We use the OR/MS Methodology •

                  To capture the relationships between various elements of the relevant system in a mathematical model and explore its solution.

                  What is a mathematical model?

                  quantitative term, the relationships

                  between various components, as defined in the relevant system for the problem (e.g. using Influence Diagram).

                • Terminol
                • Objective function (the performance measure is expressed as a function of decision variables)
                • Uncontrollable inputs: parameters, coefficients, or constants
                • Constraints –limit the range of the decision variables
                • 85 Relationship Between Input-

                  84 What is a mathematical model?

                    System-Output Why build mathematical models?

                  • Real-life tests are not poss>Disruptive
                  • Risky
                  • Expensive
                  Properties of Good mathematical Properties of Good mathematical models models

                  • Simple –simple models are more easily Easy to communicate with –easy to

                    understood by the problem owner prepare, update, and change the inputs and get answer quickly

                  • Complete –should include all significant
                  • aspect of the problem situation affecting Appropriate for the situation studied – the measure of effectiveness
                  • 88 produces the relevant outputs at the 89 lowest possible cost and in the time
                  • Easy to manipulate –possible to obtain

                    required answer from the model

                  • Produce information that is relevant and
                  • Adaptive –changes in the structure of the

                    appropriate for decision making –has to

                    problem situation be useful for decision making

                    The Art of Modeling The Art of Modeling

                  • An iterative process of enhancements
                  • A scientific process
                    • –begin with a very simple model and

                  • More akin to art than science

                    move in an evolutionary fashion toward

                  • A few guidelines

                    more elaborate models

                    Ockham’s Razor:

                    Working out a numerical example – Math. Model For The LOD Problem

                  • Simplifica>Constraints (Warehouse space &amp; mixing and filling capacities)
                  • Two decision variables (cutoff point, L and order siz>First Approxima
                  • Ignore the constraints
                  • Involve only one decision variable, Q
                  • 92 93<>Performance mea
                  • Total annual relevant cost (TAC) (per year)
                  • TAC=Annual stock holding cost+Annual set up cost+Annual handling cost+Annual product values

                    Math. Model For The Problem LOD

                    Math. Model For The LOD Problem

                  • Annual stock holding
                  • (Average stock level x Unit product value) x

                    = + + + T ( Q ) [ .

                    5 Qvr ] [ sD / Q ] [ h D ] [ vD ]

                    1

                    1

                    1

                    1 Holding cost/$/year

                  • Annual set up
                  • Setup cost per batch x Annual number of stock T ( Q , L ) [ sN ] [ h D ] [ .

                    5 Qvr sD / Q ] [ h D ] = + + + +

                    2

                    2

                    1

                    1

                    1 replenishments Math. Model – LOD

                    [Second Approximation] • Two decision variables, L and Q.

                  • Two additional costs
                  • The annual set up cost for special production
                  • Annual volume by special prod.runs x Product handling

                    cost per unit

                  • The annual handling cost for big order
                  • Production setup per batch x Annual number of special
                  • 96 97

                      prod.runs

                    • Total cost =

                      The annual set up cost for special production run + The annual handling cost for big order + Associated annual EOQ cost given L + The annual handling cost for small order.

                      Deriving A Solution To The Model Deriving A Solution To The Model

                    • Enumeration
                    • Enumeration • Number of alternatives of action is relatively small.
                    • Computational effort is relatively minor

                      Search Methods

                    • Optimal solution is obtained by evaluating the

                      Algorithmic Solution Methods performance measure for each alternatives.

                    • Classical Methods of Calculus
                    • >Search Met>Heuristic Solution Met
                    • e.g. Golden section search
                    Deriving A Solution To The Model

                    • Classical Methods of Calculus •

                      Heuristic Solution Methods

                    • Impossible to find the optimal solution with the computational means currently available (intractable)
                    • If the optimal solution is possible to obtain, but the potential benefit do not justify the computational effort needed.
                    • Heuristic methods: to find a good solutions or to improve an 100
                    • 101 existing solutions (out put based techni>Simulation
                    • For complex dynamic systems • To identify good policies rather than the optimal one.

                      Model Testing &amp; Sensitivity Analysis

                    • Internal Validity (Verification)
                    • Is the model mathematically correct and logically consistent?
                    • This also involves verifying that each expression is

                      SISTEM MODELING dimensionally consistent.

                    • External Validity (Validat
                    • Is the model a sufficiently valid representation of

                      Materi 6 103

                      reality?

                      Model Testing &amp; Sensitivity

                    • Testing the solution perform
                    • To determine the expected benefits, such as net

                      Analysis profits or net savings

                      Analysis of Sensitivity of Solution Rules for Testing Validity

                    • The evaluation of the proposed policy has to be

                      Analysis of Sensitivity of Solution based on observations of actual (or

                    • Sensitivity analysis (evaluate the response simulated) performance of the best solution to changes in various inp>The data used for the test shoul
                    • Error analysis

                      independent of the data used to derive the

                    • The input parameters are estimated on the basis 104
                    • 105
                    • If the optimal solution is relatively

                      to changes in the input parameters D, s, v, and r?

                      3.Compute the actual value of the objective function if the pseudo-optimal policy determined in (1) were implemented.

                      Sensitivity Analysis For The LOD Problem

                      / ) 5 . (

                      2 / 2 ) 5 . (

                      /

                      Ds vr sD Ds vr vr Q T Q sD Qvr Q T

                      Q sD Qvr Q T / ) 5 . ( + =

                      Ds vr EOQ / 2 =

                      108 Math. Model For The LOD Problem

                      4.Find the difference between the optimal objective function values obtained from (2) –using the correct value and (3) –using the estimate value.

                      2.Assume that the value of the input parameter p differs from the correct value, P (p=kP). Find the optimal policy, using the (assumed) correct value P.

                      p , is in error).

                      1.Determine the optimal policy based on the best estimate values for all input parameters (assume that one of these, say

                    • Sensitivity analysis is used for exploring how the optimal solution changes as a function of

                      such uncertain data 107 Procedure of Error Analysis

                      resource)

                      scarce resource (shadow price of the

                      the value of additional amounts of each

                      can place more confidence in the validity and usefulness of the model

                      insensitive, then the decision maker and user

                    • Sensitivity analysis provides information about

                      106 Purpose of Sensitivity Analysis

                    • How do EOQ expression and T(Q) respond
                      • =
                      • =
                      • 109

                        x D implied (4140/k) 20700 8280 5175 4140 3450 2760 2070 1035 111 error in demand -80% -50% -20% 0% 20% 50% 100% 300% k (known) 20% 50% 80% 100% 120% 150% 200% 400% T(EOQ) based on D 6552 4144 3276 2930 2675 2392 2072 1465 T(50.87) based on D 8790 4395 3296 2930 2686 2442 2198 1831 Cost increase 34.2% 6.1% 0.6% 0.0% 0.4% 2.1% 6.1% 25.0% cost increase 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% -100% 0% 100% 200% 300% 400% cost increase

                        2 = = = vr Ds EOQ 2482 $

                        −

                        2442 2442 2482 =

                        % 64 . 100 1 %

                        T

                        )( 18 . 320 )( 87 . ) 5 . 50 ( 87 . 50 ( = + =

                        87 . ) 50 / 2875 ( 18 )

                        ( 2875 18 ) 2 /

                        110 An Example • A year later its is discovered that actual demand in not 4140, but only 2875 (over estimate 44%)

                        42 ) ( 18 . 320 /

                        ( 4140 18 ) 2 / = 2 = = vr Ds EOQ 4 .

                        50 ) ( 18 . 320 /

                      • If we had implemented this solution, the minimum relevan cost, would have been • Instead, we implemented the pseudo-optimal solution
                      • The difference beetween actual cost &amp; the minimum cost (lost in potential benefit)

                        T 87 .

                        4 . 42 ( = =

                        ( 18 . 320 / 2442 $ ( 2875 18 ) 2 )

                        Implementation

                      • Putting the tested solution to work
                      • Means translating the mathematical

                      SISTEM MODELING

                        solution into set of easily understood operating procedures or decision rules Materi 7 113

                      • Training all people involved for the proper

                        Implementation of Solution application of the rules, executing the transition, and preparing complete documentation for future reference

                        Problem of Implementation Implementation 1. • Not easily handled by a systematic Relating to the physical task of

                        approach, good organization and implementation coordination

                        2. Relating to the problem user and other • Fraught with difficulties that are largely of individuals affected by the solution –e.g.

                        a human nature –e.g. consider the LOD their personalities, their motivation and 114 115

                      • OR/MS analyst pays attention of the first
                      • The tendency is to neglect and overlook the human factors of (2) and (3).
                      • Note: neglecting the human constraints in
                      • More involvement of problem user(s)
                      • Individual who could become obstacles to

                        116 Problem of Implementation

                        factor

                        a system can easily lead to a solution that is one on paper only and is not

                        The human constraints may be relaxed in a number of way:

                        proper implementation could be transferred (?)

                      • Technical solution can be adjusted by

                        workable in practice. 117 Problem of Implementation

                        simplifying the policy or solution rules

                      • Starts at the outset of any project
                      • The stock clerk was viewed as the most important stakeholder for the user’ group (pulled in as an active project team member)
                      • 119<
                      • It is not sufficient to start planning for the implementation once the solution has been tested and the report submitted

                        118 Problem of Implementation For LOD case:

                        Planning for Implementation

                      • Establishing effective lines of
                      • Ordering of special equipment and
                      • Developing all software
                      • Planning and executing the actual process

                      • Exploring and managing the prior

                        120 Planning for Implementation

                        communication

                        expectation for the project

                      • Keeping the problem owners and problem
                      • Regularly following-up sessions with problem users
                      • Checking out availability and sources of all
                      • The environment is constantly undergoing
                      • A change in the form or nature of an input

                        users regularly informed

                        input data needed 121

                        Planning for Implementation

                        commercial computer software

                        of implementation

                      • Inputs into the system are also changing
                      • Such change may be quantitative or
                      • 123<
                      • For example –LOD problem (?)
                      Controlling and Maintaining the Controlling and Maintaining the Solution

                        122 Controlling and Maintaining the Solution

                        change

                        Controlling and Maintaining the Solution

                        is called structural –affects the influence relationship between the input and one or more intermediate variables in the model.

                        Solution

                      • Establishing controls over the How each input has to be measured to

                        solution consists of:

                        assess if a change is significant

                      • Listing for each input (parameters, Assigning responsibility for the control of

                        constraints) –the quantitative change each item 124 125

                        Listing of structural form of all influence How the solution has to be adjusted in relationships between inputs and response to changes (quantitative and intermediate variables; intermediate and structural changes) outcome variables.

                        Following Up Implementation Following Up Implementation and Model Performance and Model Performance

                      • Monitoring Implementation:

                        If any misapplication or misinterpretation

                      • of the solution show up, corrective action

                        The job of the OR/MS analyst is not finished once the solution has been must be initiated. implemented.

                        Performance audit:

                      • After some time. Enforcement rules for 126
                      • 127

                        A Systems View of Manufacturing

                      • Manufacturing can be viewed either as a transformation process or as a system.
                      • As a Transformation Process: A narrow

                      SISTEM MODELING

                        definition of manufacturing is that it a process of transformation where raw material are converted into products.

                        Materi 8 129

                      • As a System: Manufacturing is not limited to

                        Manufacturing System materials transformation performed in a factory.

                        Rather, it is a complex system comprising of several elements.

                        Flow of Materials, Information and A Systems View of

                        Cost PLANNING Manufacturing n

                      • o rm a ti

                        This involves an internal environment and In fo an external environment.

                      • MATERIALS
                      • RAW Flow of Materials PROCESS PRODUCTS of The inputs are from the external F low 130 environment and involve several variables. 131

                        • - FINAN CIAL
                        • INP UTS EXT ERN AL EN VIR ON M EN T A Systems View of - H UMAN - MATER IAL - INFO RMATIO N Manufacturing - TEC HN O LO G Y<

                          • PRO C ESS TR ANSFO R MAT IO N

                          Can be viewed from three different Aspects: LAB OR ’S EF FO RTS INT ERN AL ENV IRO N M ENT

                          Technical: Dealing with engineering, science TECH NO LO G Y and technology issues. O PER ATIO N S

                        • MANAG E MENT
                        • PR O DU CTS/SER VIC ES marketing, legal issues

                          FIN ANC IAL O UTPU TS 132

                          Commercial: Dealing with financial, 133 C ON SEQ UEN C ES H UMANC ON SEQ UEN C ES Management: Dealing with planning,

                          operations and other related issues such as Figure 2.2: Systems View of M anufacturing (Murthy, 1995a) information. And also organisational issues dealing with human related issues.

                        MANUFACTURING: DIFFERENT

                          Firm Level PERSPECTIVES

                        • It can also be viewed from three different Manufacturing at the firm level involves

                          perspectives: several variables which can be broadly

                        • Firm level,

                          grouped into the following three categories:

                        • Industry level and
                        • Technical • Regional or global level. 134
                        • 135
                        Technical Commercial

                        • The commercial side deals with issues
                        • The technical side has been discussed such as costs, sales, revenue and profits.

                          before and involves various issues Each of these involves many variables. related to the science, engineering and

                        • For example, the costs can be investment technology aspects of manufacturing. 136

                          costs, unit manufacturing costs, cost of 137 rework and so on. The basic bottom line for a firm is that it must make reasonable profit for its investment.

                          Management National Level

                          Deal with managing the various activities In the national level, a manufacturing firm at strategic and operational levels taking is influenced by factors such as market into account the many different legal and competition and government policies. socio-political aspects and various

                        • Obviously, the market competition is not constraints.
                        • 138 only determined by manufactured goods 139

                          Regional and Global Levels National Level

                          Some of the government policies that Manufacturing at the regional and global affect the manufacturing enterprise are levels deals with the following factors : indicated below.

                        • Fierce competition
                        • >Industry or Technology develop
                        • Open market - free trade

                          policies,

                        • Trade organisation - regional partnerships
                        • 140 141<>Taxation policies, • Environmental polic
                        • Trade policies – export and import

                          subsidies, protection

                        • Financial investment

                          A THREE LEVEL MODEL OF Level 3 Strategic Leve l MANUFACTURING Research and Developm ent Finance Partnerships Level 2 Operations Level

                        • Manufacturing is a complex system Accounting Legal Planning involving several elements. It can be Level 1 Process Level viewed as a three level system (Level 1 - S UP PLIERS Inputs Processes Outputs CUSTOMERS

                          3) Hum an Envir onmental M arketing

                        • Note that Level 1 is nested within Level 2, 142 Resource 143

                          Level 1 Level 2

                        • This level corresponds to the shop floor This level includes Level 1 as well as six

                          level and has three key elements - Inputs, new elements. The focus of this level is Process and Outputs. management of business at the operations level and the six new elements with a 144 range of operational issues. 145

                          Level 3

                        • This level includes the Levels 1 and 2 and

                          six new elements. Here, the management focus is long term and strategic.

                        • This is important, as survival of businesses

                          in the fiercely competitive global market 146