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.

‡ The decision support system helps in making a decision and also in its performance evaluation. .CONCEPT OF DSS DSS model has 3 phases Intelligence Design Choice ‡ These systems are helpful where the decisionmaker calls for complex manipulation of data.

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

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

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

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. . EXECUTIVE SENSITIVITY. ‡ MANAGEMENT DECISION MAKING RELIES ON INTUITION.AND OTHER UNQUANTIFIABLE DATA.

COMPONENTS OF DSS Components of DSS Database Decision Statistics & Manipulation Display .

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

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

‡ Involves two aspects of data analysis. ‡ Involves Various Operation.STATISTICS & MANIPULATION ‡ Produces meaningful Information. .

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 .

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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 .

accessed and updated by a DBMS ‡ It is a series of software programs ‡ DBMS standardizes large and complex files .Database Management Systems (DBMS) ‡ Database is created.

It PROVIDES SIX MAJOR FEATURES ‡ Capability of obtaining answers to queries ‡ Establishing data relationships ‡ Achieving data independence ‡ Quick retrieval of data ‡ Data security .

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

model updates and changes and data manipulation.Modelbase Management Systems (MBMS) ‡ It is a software system ‡ It integrates new routines and reports. ‡ It is capable of inter-relating models with appropriate linkages .

diagrams. pictures can be produced in colour .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.

User System Interface ‡ This component includes languages and devices ‡ With which information is entered into the computer and displayed .

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

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

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

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

LIMITATIONS OF DSS ‡ SMALL MEMORIES ‡ SLOW ‡ INDIVIDUAL USE .

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

Acting on that information. These changes were evaluated as measures to prevent an acquisition. an American home products firm was allowed to acquire Brunswick¶s Sherhood medical products division. At Brunswick Corp. . The µwhat-if¶ analysis indicated that Brunswick¶s divestiture of its medical group might curtail an unwanted takeover attempt and force the hostile firm to abandon its acquisition bid. Brunswick then remained on independent entity and continued operation. The software helped Brunswick staff model in analyzing scenarios that depicted various corporate reorganization. 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.CASE STUDY 1 DSS at Brunswick Corp.

Introduction: ‡ Gujarat State Fertilizers & Chemicals (GSFC) Ltd. ‡ GSFC requires a large amount of energy in the form of steam and power for its process plant operations. .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. is a petrochemical and fertilizer products manufacturing company.

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 .

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