DECISION SUPPORT SYSTEM

By: ANSHU AGRAWAL BARKHA SAYAMVAR EBRAHIM HUSAINY HARSHIL RUPANI LATIKA RUPANI SAMIKSHA RANKA

OVERVIEW
Definition Understanding & Concept Characteristics Types of DSS Architecture Impact of DSS on decision making Components of DSS system and programs Fundamental DSS program structure Conceptual model of DSS Types of tools Functions & Capabilities of DSS applications Users & Limitations of DSS

DEFINITION OF DSS
Scott Morton define decision support system as interactive computer based systems, which help decision makers utilize data and models to solve unstructured problems. Gerrity defines DSS as an effective blend of human intelligence, information technology, and software which interact closely to solve complex problems.

UNDERSTANDING OF DSS
DSS are: Computer based facilities for assisting human decision making. DSS differs from MIS and TPS. Designed to facilitate the solutions of problems less structured. Collection of data and data collecting tools. Their models are often quite complex and dynamic.

CONCEPT OF DSS
DSS model has 3 phases
Intelligence Design Choice

These systems are helpful where the decisionmaker calls for complex manipulation of data. The decision support system helps in making a decision and also in its performance evaluation.

CHARACTERISTICS OF DSS
Ability to support the solution of complex problems. Fast response to unexpected situations that result in changed inputs. Designed to help support decisions that are formulated as semi-structured, complex problems. May be constructed to support one time decisions.

Contd
DSS is typically designed for either a particular decision-maker or a group of decision makers. Allows the decision maker to interact in a natural manner. DSS generator (software) can be used. It is a way to organize information intended for use in decision making.

Contd
A decision support system is conceptualised as a process instead of a product. Ability to quickly and objectively try different strategies under different configurations. Facilitates communication Consistent and objective decisions

ARCHITECTURE OF A GENERIC DSS APPLICATION

MIS DATA DSS MODEL TPS DATA

EXTERNAL DATA DSS PROGRAM

DSS USER

GRAPHS

REPORTS

TYPES OF DESITION SUPPORT SYSTEM

STATUS INQUIRY SYSTEM DATA ANALYSIS SYSTEM INFORMATION ANALYSIS SYSTEM ACCOUNTING SYSTEM MODEL BASED SYSTEM

IMPACT OF DSS ON DICISION MAKING

THE DATA REQUIRED FOR THE DECISION FACED BY TOP MANAGEMENT ARE EXTERNAL AND UNSTRUCTURED. DSS ARE NOT WELL UNDERSTOOD AND HAVE BEEN SLOW TO GAIN ACCEPTANCE. MANAGEMENT DECISION MAKING RELIES ON INTUITION, EXECUTIVE SENSITIVITY,AND OTHER UNQUANTIFIABLE DATA.

COMPONENTS OF DSS

Components of DSS Database Decision Statistics & Manipulation Display

DATABASE
Develops Information. Coordinates the Flow. Capture the data. Centralize all Data.

DECISION MODELS
Sophisticated. Complicated. Quantitative & Qualitative conceptualisation. Expresses perceptions.

STATISTICS & MANIPULATION

Produces meaningful Information. Involves Various Operation. Involves two aspects of data analysis.

Fundamental DSS Program Structure

Fundamental DSS Program Structure

Users interface with the dialogue management component The model management component maintains & executes models of business activity. The data management component maintains DSS data.

TYPES OF TOOLS/MODELS
DSS

BEHAVIOURAL MODELS

MANAGEMENT SCIENCE MODELS

BEHAVIOURAL MODELS
Useful in understanding the behaviour amongst the business variables Decision-maker make decisions on such behavioural relationships Various models of this category: Trend Analysis Forecasting Statistical Analysis

USES IN AREAS
Process control Manufacturing Agricultural sciences Marketing Psychology

MANAGEMENT SCIENCE MODELS

Decision-maker makes decision on the proven methods of management Various models of this category: Business management Accounting Econometrics

CONCEPTUAL MODEL OF A DSS

The conceptual model consists of : Database and its management Database Management Systens (DBMS) Modelbase and its Management Modelbase Management Systems (MBMS) Hardware of DSS User System Interface

DATABASE & ITS MANAGEMENT

Database is Collection of inter-related data Corresponds to the need and structure of a company Used for more than one application Can be compared to a file

DATABASE MANAGES THE FOLLOWING DATA:

Finance Marketing Personnel Production

Database Management Systems (DBMS)

Database is created, accessed and updated by a DBMS It is a series of software programs DBMS standardizes large and complex files

It PROVIDES SIX MAJOR FEATURES

Capability of obtaining answers to queries Establishing data relationships Achieving data independence Quick retrieval of data Data security

Modelbase and its Management

Modelbase is divided into 2 major parts:
1) Pre-written computer programs Includes standard models Eg. Linear programming or regression analysis 2) Model building blocks Pre-written programs and sub routines can be used to construct ad hoc applications

Modelbase Management Systems (MBMS)

It is a software system It integrates new routines and reports, model updates and changes and data manipulation. It is capable of inter-relating models with appropriate linkages

Hardware of DSS
Typically used to run a large DSS in the mainframe computer User constructed DSS also run on microcomputers for managerial use In this a graphic display is of very importance Charts, graphs, diagrams, pictures can be produced in colour

User System Interface

This component includes languages and devices With which information is entered into the computer and displayed

CAPABILITIES OF DSS
Can update or manipulate the database and also select data. Create special reports in a desired format. Perform calculations and execute aggregation of data. Produce reports, memos, letters and resumes.

 Construct simple mathematical models. Perform financial analysis in spreadsheet form. Conduct optimization. Perform simulation.

FUNCTIONS OF DSS
Becoming familiar with the problem domain. Determining sensitivity of results to changes in decision variables. Identifying patterns. Predicting decision outcomes.

 Developing models of business processes. Computing optimum mixes. Facilitating group communication.

LIMITATIONS OF DSS
SMALL MEMORIES SLOW INDIVIDUAL USE

DSS USERS
Decision making in an organization occur in three main levelsSTRATEGIC MANAGERIAL OPERATIONAL

CASE STUDY 1
DSS at Brunswick Corp. At Brunswick Corp, a diversified billion-dollar corporation, a DSS from Thorn EMI computer software is used routinely to save time and money in key marketing and financial areas. The software helped Brunswick staff model in analyzing scenarios that depicted various corporate reorganization. These changes were evaluated as measures to prevent an acquisition. The what-if analysis indicated that Brunswicks divestiture of its medical group might curtail an unwanted takeover attempt and force the hostile firm to abandon its acquisition bid. Acting on that information, an American home products firm was allowed to acquire Brunswicks Sherhood medical products division. Brunswick then remained on independent entity and continued operation.

CASE STUDY 2
CASE STUDY OF GSFC Decision Support System (DSS) evaluates the economy of operations with respect to energy and product costs in the fertilizer complex for its various processing plants. Introduction: Gujarat State Fertilizers & Chemicals (GSFC) Ltd. is a petrochemical and fertilizer products manufacturing company. GSFC requires a large amount of energy in the form of steam and power for its process plant operations.

SOLUTION

PLANT LOAD CALCULATION POWER AND STEAM

POWER
CALCULATE INTERNAL POWER REQUIREMENT BASED ON GIPCL CONSTRAINTS

STEAM

COST OF FUEL AND ALGORITHMS AVAILABILITY OF FUEL

BASED COST ALGORITHM (COMPLEX LOGIC) DISPLAY OF STEAM/POWER GENERATION DEMAND FROM VARIOUS SOURCES