The Personnel & Payroll Function

1. The Personnel & Payroll Function

2. The Personnel & Payroll Function Supported by an Integrated Database

3. The Manufacturing Function • Involves many activities like: • -inventory management • -machine scheduling • -labor management • -robotics & factory automation • -quality control • -etc

4. Information Systems to Manufacturing • - MRP II (Manufacturing Resource Planning) • *helps the purchasing of raw materials • *automates production scheduling • *is used to process products in large batches.(When each batch is finished, it’s moved along to the next production station) • - JIT (Just In Time) • *moves products in small batches from station to station • *materials arrive just in time from suppliers, reducing inventory holding costs (very reliable deliveries for customers) • -CAD/CAM • *used in production (designs are transformed • into numerical control instructions for machines & robots) CIM: Computer-Integrated Manufacturing : MRP,JIT, CAD/CAM

5. Business Process Redesign • Legacy Systems develops & sells microcomputer sw applications, including spreadsheets, DBMS, & DTP • Legacy Systems was organized as follows: CEO Marketing Sales Development Customer Support Finance & Administrat

6. Business Process Redesign • And products were developed using the following process: Customer Needs Marketing Development Quality Assurance Sales Customer Support Specifications (characteristics of a new product were developed by Marketing & given to Dev) Tested product (given to Sales) Product (builds product according to specifications gives it to Qua Assu for testing) Marketed product (Cust Sup provides customer w/ advise & info on the product)

7. Business Process Redesign • But Legacy had problems w/ this development process: • -In Marketing (the product manager) took overall responsibility for the product • -In Development (engineers) did not take ownership/responsibility for the product • -the serial nature of the development process: • -needs of customers are best known by Customer Support, but they are at the end of the process (too late to give info to Develop) • -Customer Support blamed Sales, • Sales blamed Development, • Development blamed Marketing when problems aroused

8. Legacy Redesigned Development Processto Product-Oriented Organization All employees identified w/ their assigned product. Worked as a team to develop specifications, build product & doc, & support customers. Marketing & Dev personnel spent time in Cust Supp Produces products that better meet the customers’ needs More concurrent

9. Concurrent Product Development

10. Business Process Redesign • Business Process Redesign can cause: • - Reduced need for management & staff personnel • - Increased Concurrency • - Organizational Resistance

11. Business Process Redesign • Reduced need for management & staff personnel : • -Redesigned organizations are flatter. • Fewer levels of management. • -Managers have greater control area • -Large no of staff jobs become unnecessary • (ex:document-processing reduces need for filing clerks, presentation appl products eliminate need for graphic artists)

12. Business Process Redesign • Increased Concurrency • - At Legacy, in developing product specifications, personnel from Marketing, Eng, & Cust Supp worked concurrently.c Coming together early in the development process increases the product quality.

13. Business Process Redesign • Organizational Resistance • - changes in personnel responsibilities, reporting relationships, etc can cause resistance. • (ex: At Legacy, Cust Supp group was broken up; all representatives were assigned to a product team & reported to team’s business unit manager. The manager of Cust Supp had no employees left & was asked to manage one of the 3 teams)

14. Business Network Redesign • It refers to the use of information systems to enable groups of enterprises to interact more productively. • 4 types of Network Redesign occur: • EDI (Electronic Data Interchange) • Interenterprise system access • Interenterprise process integration • Knowledge networks Moderately Coupled Highly Coupled

15. Electronic Data Interchange • In which organizations agree on common data standards. W/ this they can transmit data to & from w/o human intervention. • Ex: Internal Revenue Service (IRS). IRS defined a data interchange standard so both individuals & businesses can file their taxes electronically -> saves taxpayer time & reduces IRS paperwork & data entry. • Ex: Banks : ATM’s (Automated Teller Machines); Bank transfers; etc

16. Interenterprise System Access • In which organizations use one another’s information systems. • Ex: The manufacturer & supplier use each other’s info sys. Manufacturer uses it to start the shipments of goods from the supplier. • Ex: Your flight from NY to Los A is canceled, you need another reservation on another flight & you dont know which. You go to an X airline; but they dont have a suitable flight only Y airline has; so X airline agent can access Y airline’s reservation system & get the reservation for you.

17. Interenterprise Process Integration • In which organizations share a business system so as to allow a single process to be distributed across several enterprises. The processes are undertaken by depts in different companies. • Ex: consider a manufacturing process. Several companies decide to manufacture & sell products together. X is strong in sale,marketing, & order fulfillment; Y is strong at product engineering; Z is strong in manufacturing. So X is responsible for process parts 2,3,8,9; Y for process part 1; Z for process parts 4,5,6,7.

18. Knowledge Networks • In which organizations use information technology to share expertise. The expertise of several experts & organizations is integrated into a single system. They dont process transactions, they just use info sys. • Ex: Attorneys could integrate their expertise in a complicated lawsuit. • Physicists & nuclear engineers could integrate their expertise to decide how best to respond to emergency in a nuclear power plant.

19. Business Scope Redefinition • Applications that involve business scope redefinition change the nature of the enterprise’s activities. • 4 ways to redefine business scope: • Entry to New Market • (X Greenhouse expands its sales to Canadian market) • Entry to New Product Category • (X adds clothing to its product line) • Technology-Induces Products • (X develops & sells multimedia product o show customers best way to plant & care for the products they bought) • Technology-Induces Market Changes • (X changes market expectations w/ regard to product support)

20. Value Added By EIS • Enterprise MIS add value in the same way that personal & workgroup Info Sys do. They add value : • - to process by facilitating operational control, management control,n& strategic planning. • - to products by enhancing product features & characteristics & by improving product delivery. • - through facilitating flexibility in an organization’s ability to respond to environmental changes.