Dss N Tps r3d4z

DSS & TPS Dr. Satish Jangra (2009A229M) Jyoti Goyal (2009A233M) Neha Goyal (2009A241M)

Decision System (DSS)  Decision System is a system that provides tools to managers to assist them in solving semi-structured and structured problems.  A DSS is not intended to make decisions for managers.  A DSS s the human decision-making process.

• Systems that replace human decision making- rather than it are called programmed decision systems.

Example • A writer, a selected group of journal and text resources at a local library – and a strategy for using those resources – may serve as part of a decision system.

DSS Goals and Applications • Decision systems are characterized by at least three properties: • They semi-structured or un-structured decision making. • They are flexible enough to respond to the changing needs of decision makers. • They are easy to use.

Structured Decisions • Structured decisions are those that are easily make from a given set of inputs. • E.g; issue a reminder notice if a bill is overdue or deciding to sell a stock under a given set of market conditions, can be programmed fairly easily.

Semi-structured and unstructured decisions • Semi-structured and unstructured decisions are decisions for which information obtained from a computer system is only a portion of the total knowledge needed to make the decision.

Steps in solving a problem with a DSS

Define and formulate problem

Frame problem into DSS model

Use Model to obtain results

Reformulate problem

CAPABILITIES OF DSS A DSS provides for decision maker at all management levels It s all phases of decision making process-intelligence-design and choice It promotes learning. It is adaptable by the over time to deal with changing condition

Properties of Decision System

• for semi-structured and unstructured decision making. • Flexibility in specifying output requirements. • Ease of use and ease of development for non-professionals. • Fast response.

Properties of DSS (cont.) • Middle or top management focus. • Use of models • Focus on managerial effectiveness, rather than efficiency.

COMPONENTS OF DSS DATABASE: Current & Historical Data from Many Sources, as Required MODEL BASE: Collection of Mathematical & Analytical Building Blocks  INTERFACE ;Communication between a DSS and  : The person faced with the problem

Components of a DSS

DSS Software Data Base Graphical Interface

Decision Maker



Model Base Models -Financial -Statistical analysis -Graphical -Project managment

 A database is an organized collection of data for one or more multiple uses .  Databases consist of software-based "containers" that are structured to collect and store information so s can retrieve, add, update or remove such information in an automatic fashion  A graphical interface (GUI) (sometimes pronounced gooey is a type of interface item that allows people to interact with programs in more one ways

Types of DSS  Status inquiry system  Data analysis system  Information analysis system  ing system  Model based system

Example of DSS types Decision

Type of system required

• Selection

Inquiry System Inquiry system Data analysis Information analysis system

of vendor •Procurement •Pricing •Selection of vendor based on price , quality, performance •Selection of capital Asset •Inventory rationalization

Return on investment analysis system Valuation of inventory and ing system

Putting A DSS at work • The tasks commonly performed by decision systems are; • • • •

Information retrieval Data reconfiguration Calculator activities Analysis

Information Retrieval • Information retrieval in a DSS environment refers to the act of extracting information from a database, or from data files for the purpose of making decision.

Selection and Projection • Two common types of retrieval are; - Selection - Projection Selection: Selection involves separating out records that have specific characteristics. e.g. identifying all males over age 64 in employee file or database. Projection: obtaining only certain fields of data. e.g. extracting all names and phone numbers from an employee file or database.

Data reconfiguration Original data:

Name

City

State

M. Rashid Irfan Khalid Asad Bashir Ahmad Raza Zahid Ali

Multan Lahore Jranwla Karachi Kohlu

Punjab Punjab Punjab Sindh Blchstan

Name

City

State

Ahmad Raza Asad Bashir Irfan Khalid M. Rashid Zahid Ali

Karachi Jranwla Lahore Multan Kohlu

Sindh Punjab Punjab Punjab Blchstan

(a) Sorting by name

State City Punjab Multan Punjab Lahore Punjab jranwla Sindh Karachi Blchstan Kohlu

Name M. Rashid Irfan Khalid Asad Bashir Ahmad Rza Zahid Ali

(b) Exchanging fields (columns) Name

City

M. Rashid Multan Irfan Khalid Lahore Asad Bashir Jranwla Ahmad Raza Karachi Zahid Ali Kohlu

State

Zip

Punjab Punjab Punjab Sindh Blchstan

52000 54000 50000 42000 65000

(c) ing (with zip code data)

Punjab (60%)

(d) Presentation graphics (pie chart by state)

Sindh (20%) Blchstan (20%)

Calculator Activities • Functions - Arithmetic and Statistical Functions i.e. SUM, AVG, LOG etc.

- Financial Functions PV, FV, NPV, PMT etc.

- Conditional Functions IF, CHOOSE etc.

- Data Functions TODAY, DATE etc.

Analysis • Four widely used types of DSS analysis tools: • • • •

Statistical Tools Optimizing Tools What-if Analysis Intelligence routines.

BEHAVIOURAL MODEL These models are useful in understanding the behavior amongst the business variables. Examples :  regression analysis Time series analysis Market research methods Ratio analysis for financial assessment

Management science models These models are developed on the principles of business management, ing, econometrics. Examples : Budgeting models Break-even analysis model Return on investment analysis Procedural models PERT/M

Operational research models • These models are mathematical models . These represent the real life problems situation in of the variables, constraints, parameters expressed in algebraic equations. • Examples:  Mathematical programming techniques  Linear programming model  Inventory control model

DSS Development • The DSS development process in many instances, after decision-making needs are identified and an initial prototype developed, several evaluation/ modification iterations may be needed before the DSS is ready for use. • DSS development tools: => Spreadsheets => Interface => Command Interfaces => Templates => Physical Modification

Figure: DSS Development Process

DSS Examples • A contract negotiation DSS • An Oil Executive’s DSS • An Environmental DSS

DSS Examples • DSS For Education Decisions • School Match (elementary/secondary school search, school match) • Official MBA Guide (screen and rank MBA programs)

• DSS for Financial Decisions • Financenter (customizable calculators) • Prudential Securities ( advice, strategies, calculators)

DSS Examples • DSS for Health Decisions • Almond Board (personalized fitness & nutrition advice) • AFAA (health evaluation, tips, news, answers) • Health Grades (alternatives, evaluators, tips)

• DSS for Information Technology Decisions • Avantsoft (ROI calculation for technology investment) • Developer.com (advice, tips, tutorials, news, online library)

DSS Examples • DSS for Insurance Decisions • Insure.com (alternatives, ratings, guidance) • Quotesmith (insurance quotes) • MarketTrak (neural net and genetic algorithm forecasts, performance, comparison) • NEOS (online demo of portfolio optimizer)

• DSS for Natural Resource Decisions • Ag Canada (online DSS for manure management) • IMP (online DSS for pest management)

DSS Examples • DSS for Purchasing Decisions • • • •

CompareNet (comparisons) mySimon (shopping agent) Consumers Digest (product reviews, shopping tips) CARPOINT

• DSS for Real Estate Decisions • CyberHomes (search for home alternatives) • Countrywide (financing calculators, mortgage alternatives) • GetSmart (mortgage finder)

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DSS Examples • Geographic DSS • Leeds (online demo for radioactive waste disposal) • SUNY-Buffalo (tutorial, course, materials)

Group Decision Systems Group of managers could also use a DSS as well on a common task or issue To facilitate this a GDSS (Group Decision System) application is provided to multiple s on various computer and on multiple networks Is the requirement in the organization that believe in team-based working environment

What is a Transaction Processing System? 

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Transaction Processing Systems are computerised systems that perform and record the daily routine transactions necessary to conduct the business. A Transaction Processing System consists of TP monitor, databases, and transactions Transaction execution is controlled by a TP monitor. It Creates the abstraction of a transaction, analogous to the way an operating system creates the abstraction of a process It’s an information system designed to process routine business transactions. Seeks time- and cost-efficiency by automating repetitive operations in large volumes.

What is a Transaction Processing System? • Interfaces with an organization’s other information systems, such as IRS, DSS, EIS. • Centers around ing and finance transactions. • Example: Airline Reservation Systems, order entry/processing systems, bank’s processing systems

transactions

Transaction Processing System

DBMS

database

DBMS

database

TP Monitor

TPS, MIS/DSS, and SpecialPurpose Information Systems

Transaction Processing Activities  

Data collection: Capturing data necessary for the transaction Data editing: Check validity and completeness 

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Ex: 400 hours/week instead of 40 hours/week

Data correction: Correct the wrong data Data manipulation: Calculate, summarize Data storage: Update transactions Document production and reports: Create end results (paychecks)

Transaction Processing Activities

Transaction Processing Cycle Transaction Document

Transaction Input

Correction

Input Validation

Process Transaction

Invalid Input

Transaction and Control Log

Update Master File

Control Log

Master File

Objectives of TPS  Process

data generated by and about transactions  Maintain a high degree of accuracy  Ensure data and information integrity and accuracy  Produce timely documents and reports  Increase labour efficiency  Help provide increased and enhanced service  Help build and maintain customer loyalty  Achieve competitive advantage

ACID test 

Atomicity: all steps involved in transaction completed successfully as a group

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Consistency: transaction successfully transforms the system and database from one valid state to another

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Isolation: transaction is processed concurrently with other transactions. As if only transaction executing the system

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Durability: all changes transaction makes to database become permanent

The Major Characteristics of TPS 

TPS handles data which shows the results of various activities on historical basis ie, activities which have already happened.

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It is relevant to all the four functional areas ie, production, marketing, finance and human resources because each area has some kind of transaction.

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TPS helps to assess the organizational performance.

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Large amounts of data are processed.

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The sources of data are mostly internal, and the output is intended mainly for an internal audience.

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The TPS processes information on a regular basis: daily, weekly, monthly, etc.

ing TPS Asset management

Customer

Cost of assets

Payments

s payable

s receivable Amounts owed by customers Amounts paid by customers

Payroll

Labour costs

Paycheques

Customer

Amounts owed by company Amounts paid by company

General ledger Expense transactions Budget

Asset depreciation

Components Of TPS •

There are four components of a Transaction Processing System • Input- These are source documents such as customer orders, purchase orders etc. They help in, 1. Capturing data. 2. Indicates what data is required for recording and what actions need to be taken. • Processing- It involves the use of journals and s for chronological recording of data. Journals are used for financial ing transactions and s for other type of data.

Components Of TPS • Storage- The computer stores various records in files. files are of two types, transaction file and master file. • Output- The outputs generated are in the form of documents such as trial balance, profit and loss , balance sheet etc.

Components Of TPS

Data DataInput Input

Data DataProcessing Processing

Data DataStorage Storage

Output OutputGeneration Generation

Transaction Processing Methods On-line transaction processing (OLTP) - method of computerized processing in which each transaction is processed immediately and the affected records are updated

On-line Schematic

Terminal Terminal

Terminal

Output

Immediate processing of each transaction

Terminal

Terminal Terminal

Transaction Processing Methods Batch processing – method of computerized processing in which business transactions are accumulated over a period of time and prepared for processing as a single unit.

Batch Schematic

Data entry of accumulated transactions

Input (batched)

Output

Transaction Processing Methods On-line analytic processing (OLAP) – method of computerized processing in which data is entered online and validated but, their processing is done on periodic batch basis. It is basically used for making management decisions by analysis of the data.

Control for TPS • Control in the system is required to ensure that the system is achieving the objectives. • Audit Trails- It’s the chronology of activities that can be traced from beginning to the end or vice versa. This is important as it tells us what went wrong in the transaction. • Ensuring Processing of All Transactions- Control in TPS also ensures that all transactions have been processed. Problems such as interruptions in computer operation, carelessness of personnel etc results into non processing of some transactions.

TPS Applications       

Order Processing Purchasing s Receivables & s Payables Receiving & Shipping Inventory on Hand Payroll General Ledgers

Refrences • James A. O’Brien (Introduction to Information System. • Laudon and Laudon (Management Information System) • J. O'Brien and G. Marakas ( Enterprise Information Systems) • http//:wikipedia.com