Decision Support System Introduction

Decision Support Systems
Antonio, Breeve Imperial, Sheryl Palara, J Velasco, Maryjoy
Introduction
Decision makers are faced with increasingly stressful environments highly competitive, fast-paced, near real-time, overloaded with information, data distributed throughout the enterprise, and multinational in scope. The combination of the Internet enabling speed and access, and the maturation of artificial intelligence techniques, has lead to sophisticated aids to support decision making under these risky and uncertain conditions. These aids have the potential to improve decision making by suggesting solutions that are better than those made by the human alone. They are increasingly available in diverse fields from medical diagnosis to traffic control to engineering applications.
Decision Support System
A Decision Support System (DSS) is an interactive computer-based system or subsystem intended to help decision makers use communications technologies, data, documents, knowledge and/or models to identify and solve problems, complete decision process tasks, and make decisions. Decision Support System is a general term for any computer application that enhances a person or groups ability to make decisions. Also, Decision Support Systems refers to an academic field of research that involves designing and studying Decision Support Systems in their context of use.
Spreadsheet-based decision support systems
A DSS is made up of a model (or models), a source of data, and a user interface. When a model is implemented in Excel, it is possible to use Visual Basic for Applications (VBA) to make the system more efficient by automating interactive tasks that users would otherwise have to repeat routinely. VBA can also make the system more powerful by extending the functionality of a spreadsheet model and by customizing its use.
Essential steps in the process of making a decision

Step 1 Concept of Project is Identified
Decision To Proceed Decision To Abandon
Step 2
Project assessment. Taking account of all issues involved

Step 3
Project Goes to Detail Specification For Tender

Step 4
Tender Accepted. Construction Starts

Step 5
Operation Starts
Step 1
The conceptual need for a project arise mainly as a result of an basement of future requirements. It may be made by a team of experts. Typically a conceptual study will identify the technical solution required, the economic merits, and acceptability of project in socio political terms. It may require discussion with financial institutions whether or not they will provide necessary funds.
Step 2
Assuming the decision has been made to develop the project further then a detailed assessment will have to be made of all technical, economic and socio-political factors. The details may be quantitative and based on subjective knowledge. A major decision making is about novelty of project.

A project may technically be novel(unusual) ( making a new airplane ). The project may employ and established technology in novel environment ( using electrical train in third world country).
In this step the degree of uncertainty associated with each factor will begin to emerge. An understanding of uncertainty associated with any proposal is essential for a feasible decision making.
Step 3

If the outcome of step 2 is to proceed the project, then a tender specification has to be prepared. It should define, exactly what work the tender is required to do. Ideally it has to define every thing that has to be done. The magnitude of uncertainty associated with this stage is a reason for possible variations in cost and duration of projects. Before a tender specification is issued it is prudent to confirm that the project is acceptable to regulatory authorities and that the adequate finance is available. The financer need to be convinced that the project is viable, that the proposer is sound and has the experience and capability to derive the project to a successful conclusion.
Step 4 ,5
Step 4

The first action is to decide if one of the tender should be accepted. The tenderer should have the appropriate experience, capability and adequate financial resources. Assuming all steps completed satisfactorily, a decision has to be taken to start the project. Even if the project starts, it might have to be stopped if the environment it operates is changed.
Step 5
Decision making characteristics
Decision is made based on the information available. At each part of the assessment, there may have to be iterative development to take account improvement in data that take place as the project proceeds. A project will not go ahead unless there is adequate funding.
Management

Management is decision making The manager is a decision maker Organizations are filled with decision makers at different level. Management is considered as art: a talent acquired over years by trial-and-error. However decision making today is becoming more complicated: Technology / Information/Computers : increasing More alternative to choose Structural Complexity / Competition : increasing larger cost of error International markets / Consumerism(interest of consumer) : increasing more uncertainty about future Changes, Fluctuations : increasing need for quick decision
Management problems

Most management problems for which decisions are sought can be represented by three standard elements objectives, decision variables, and constraints. Objective

Maximize profit Provide earliest entry into market Minimize employee discomfort/turnover Determine what price to use Determine length of time tests should be run on a new product/service Determine the responsibilities to assign to each worker Cant charge below cost Test enough to meet minimum safety regulations Ensure responsibilities are at most shared by two workers
Decision variables
Constraints

Types of Problems
Structured: situations where the procedures to follow when a decision is needed can be specified in advance

Repetitive Standard solution methods exist Complete automation may be feasible
Unstructured: decision situations where it is not possible to specify in advance most of the decision procedures to follow

One-time No standard solutions Rely on judgment Automation is usually infeasible
Semi-structured: decision procedures that can be pre specified, but not enough to lead to a definite recommended decision
Some elements and/or phases of decision making process have repetitive elements
DSS most useful for repetitive aspects of semi-structured problems
DSS in Summary
A MANAGEMENT LEVEL COMPUTER SYSTEM Which:
COMBINES DATA, MODELS, USER - FRIENDLY SOFTWARE
FOR SEMISTRUCTURED & UNSTRUCTURED DECISION MAKING. It utilizes data, provides an easy-to-use interface, and allows for the decision maker's own insights.
Why DSS?
Increasing complexity of decisions

Technology Information: Data, data everywhere, and not the time to think! Number and complexity of options Pace of change Inexpensive high-powered computing Better software More efficient software development process
Increasing availability of computerized support

Increasing usability of computers
Perceived benefits

decision quality improved communication cost reduction increased productivity time savings improved customer and employee satisfaction

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Decision Support Systems

Antonio, Breeve Imperial, Sheryl Palara, J Velasco, Maryjoy

Decision Support System

Spreadsheet-based decision support systems

Essential steps in the process of making a decision

Project assessment. Taking account of all issues involved

Project Goes to Detail Specification For Tender

Tender Accepted. Construction Starts

Decision making characteristics

Repetitive Standard solution methods exist Complete automation may be feasible

One-time No standard solutions Rely on judgment Automation is usually infeasible

DSS most useful for repetitive aspects of semi-structured problems

A MANAGEMENT LEVEL COMPUTER SYSTEM Which:

COMBINES DATA, MODELS, USER - FRIENDLY SOFTWARE

Increasing complexity of decisions

Increasing availability of computerized support

Increasing usability of computers

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