Management Information System

5 Management Information System Introduction to e-Business Systems Judi Prajetno Sugiono jpsugiono@gmail.com (2008)

Learning Objectives • Give examples of how Internet and other information technologies support business processes within the business functions of .. • Accounting, • Finance, • Human resource management, • Marketing, and • Production and operations management. jpsugiono@gmail.com (C)2007

Learning Objectives (continued) • Identify the following cross-functional system concepts, and how they can provide significant business value to a company: • Cross-functional enterprise systems • Enterprise application integration • Transaction processing systems • Enterprise collaboration systems jpsugiono@gmail.com (C)2007

IT in Business • “Business managers are moving from a tradition where they could avoid, delegate, or ignore decisions about IT to one where they cannot create a marketing, product, international, organization, or financial plan that does not involve such decisions.” jpsugiono@gmail.com (C)2007

Interactive Marketing • Customer focused marketing process • Based on using Internet, intranets, & extranets to establish two-way communications between customers or potential customers and the business • Customers become involved in product development, delivery, & service issues jpsugiono@gmail.com (C)2007

Sales Force Automation • The sales force is connected to marketing websites on the Internet, extranets, & the company intranet • Increases productivity of sales force • Speeds up the capture & analysis of sales data • Allows management to provide improved delivery information & better support of the sales force. jpsugiono@gmail.com (C)2007

Manufacturing Systems • Support the production/operations function • Assists firms in planning, monitoring, & controlling inventories, purchases, & the flow of goods and services jpsugiono@gmail.com (C)2007

Manufacturing Resource Planning Systems Manufacturing Execution Systems Engineering Systems Production Forecasting Production Scheduling Material Requirements Planning Capacity Planning Production Cost Control Quality Control Shop Floor Scheduling Shop Floor Control Machine Control Robotics Control Process Control Computer Aided Design Computer Aided Engineering Computer Aided Manufacturing Computer Aided Process Planning Product Simulation & Prototyping Enterprise Resource Planning Computer Integrated Manufacturing Manufacturing Systems (continued) jpsugiono@gmail.com (C)2007

Inventory Control • Inventory: • raw material • work in process • finish goods • Problems • Cost = Cp + Co + Cs + Ch + Csh • Lead time • Order Size • Reorder Point • Safety Stock • Etc jpsugiono@gmail.com (C)2007

Purchasing Cost  neglected, depend on ordering frequency Ordering Cost = (D/Q)Co • Holding Cost = (Q/2)Ch • Total Cost (TC) = (D/Q)Co + (Q/2)Ch • Reorder point (R) = L . DL • L=lead time • DL= demand at lead time jpsugiono@gmail.com (C)2007

Material Requirement Planning (MRP) • Goal : Determine Requirement and Schedule • Complexity Factor: • Product Structure (level of Bill of Material – BOM) • Lot Size • FPR (Fixed Period Requirement) • FOQ (Fixed Order Quantity) • EOQ (Economic Order Quantity) • L4L (Lot for Lot) • Lead Time Change jpsugiono@gmail.com (C)2007

Gross Requirements On-hand Net requirements Netting find net requirement Lotting • find order quantity Offsetting find order time (order release) Explosion calculation to low level MRP steps: • Lot-for-lot (L4L) • Economic order quantity (EOQ) • Fixed Order Period (FOP) • Fixed Order Quantity (FOQ) • Least total cost (LTC) • Least unit cost (LUC) • Part Period Balancing • Wagner-Whitin Algorithm jpsugiono@gmail.com (C)2007

Computer-Integrated Manufacturing (CIM) • Objectives: • Simplify • Automate • Integrate • Supports the concepts of • flexible manufacturing systems, • agile manufacturing, • total quality management jpsugiono@gmail.com (C)2007

Engineering System • Computer-Aided Engineering (CAE) • Help engineer to design better products • Computer-Aided Design (CAD) • Engineering drawing • Computer-Aided Manufacturing (CAM) • Automated production process • Computer-Aided Process Planning (CAPP) • creates processing instructions for CAM • Product Simulation and Prototyping • Simulate production process jpsugiono@gmail.com (C)2007

Manufacturing Execution Systems (MES) • Performance monitoring systems for factory floor operations • Shop Floor SchedulingCreating schedule of shop floor • Shop Floor ControlControl of Shop floor • Machine ControlThe use of a computer to control the actions of a machine (i.e. numerical control) • Process ControlThe use of computers to control an ongoing physical process • Robotics ControlProgrammable action of robot jpsugiono@gmail.com (C)2007

Manufacturing Resource Planning (MRP II) • Production ForecastingProcess of predicting a future event • Production SchedulingCreating schedule of production • Material Requirements Planning (MRP)Define material required • Capacity PlanningDefine the capacity of facility to produce • Production Cost ControlControl cost used in production • Quality ControlControl the quality of product • Integrated in Enterprise Resource Planning, see chap. 6 jpsugiono@gmail.com (C)2007

Human Resource Systems • Planning to meet the personnel needs of the business • Development of employees to their full potential • Recruitment, selection, & hiring • Job placement • Performance appraisals • Employee benefits analysis • Training and development • Health, safety, & security jpsugiono@gmail.com (C)2007

Human Resource Information Systems Supported by information systems that record and track human resources to maximize their use Supported by Information Systems to plan and monitor employee recruitment, training, and development programs Supported by Information Systems to formularize salary, compensation and control jpsugiono@gmail.com (C)2007

HRM and the Internet • Allows companies to process most common HRM applications over their intranets. • Allows companies to provide around-the-clock services to their employees. • Allows companies to disseminate valuable information faster. • Allows employees to perform HRM tasks online. jpsugiono@gmail.com (C)2007

Financial Management Systems • Supports financial managers in decisions concerning • The financing of the business • The allocation & control of financial resources within the business. jpsugiono@gmail.com (C)2007

Area of Financial Management Systems (continued) • Investment Management • Helps the financial manager make buy, sell, or hold decisions for each type of security • Helps the financial manager develop the optimum mix of securities in order to minimize risk and maximize return jpsugiono@gmail.com (C)2007

Management Information System