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Management Information System

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  1. 5 Management Information System Introduction to e-Business Systems Judi Prajetno Sugiono jpsugiono@gmail.com (2008)

  2. 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

  3. 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

  4. Section I Functional Business Systems jpsugiono@gmail.com (C)2007

  5. 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

  6. Functional Business Information System jpsugiono@gmail.com (C)2007

  7. Marketing Information System jpsugiono@gmail.com (C)2007

  8. Marketing Information Systems • Marketing Information Systems provide information technologies that support major components of the marketing function. jpsugiono@gmail.com (C)2007

  9. jpsugiono@gmail.com (C)2007

  10. Marketing Information Systems (continued) jpsugiono@gmail.com (C)2007

  11. 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

  12. Targeted marketing • Five targeting components at advertising and promotion management jpsugiono@gmail.com (C)2007

  13. 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

  14. Sales Force Automation (continued) jpsugiono@gmail.com (C)2007

  15. Sales Force Automation (continued) jpsugiono@gmail.com (C)2007

  16. Manufacturing Information System jpsugiono@gmail.com (C)2007

  17. 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

  18. 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

  19. Quantitative Forecasting Associative Time Series Models Models Linear Moving Exponential Trend Average Smoothing Regression Projection Quantitative Forecasting Methods jpsugiono@gmail.com (C)2007

  20. Demand Demand Random movement Time (a) Trend Time (b) Cycle Demand Demand Time (c) Seasonal pattern Time (d) Trend with seasonal pattern Forms of Forecast Movement jpsugiono@gmail.com (C)2007

  21. y Forecasting: Simple Linear Regression jpsugiono@gmail.com (C)2007

  22. Actual Demand 250 200 150 Actual Demand 100 50 0 1 3 5 7 9 11 Example: jpsugiono@gmail.com (C)2007

  23. Forecast 270 260 250 240 forecast 230 220 210 13 15 17 19 21 23 y=192.92 + 3.05 x jpsugiono@gmail.com (C)2007

  24. 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

  25. Q Order point Q=d.t Average Inventory=Q/2 t t=Q/D Economic Order Quantity (Eoq) • Goal: minimized total inventory cost jpsugiono@gmail.com (C)2007

  26. 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

  27. 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

  28. 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

  29. Example: Demand at Week 5: 500 Week 6: 300 jpsugiono@gmail.com (C)2007

  30. jpsugiono@gmail.com (C)2007

  31. jpsugiono@gmail.com (C)2007

  32. jpsugiono@gmail.com (C)2007

  33. 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

  34. 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

  35. 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

  36. jpsugiono@gmail.com (C)2007

  37. 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

  38. Human Resource Systems jpsugiono@gmail.com (C)2007

  39. 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

  40. 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

  41. 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

  42. Accounting Information Systems jpsugiono@gmail.com (C)2007

  43. Accounting Systems • Record and report business transactions and other economic events • Online Accounting Systems jpsugiono@gmail.com (C)2007

  44. Accounting Systems (continued) jpsugiono@gmail.com (C)2007

  45. jpsugiono@gmail.com (C)2007

  46. Financial Information Systems jpsugiono@gmail.com (C)2007

  47. 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

  48. Area of Financial Management Systems jpsugiono@gmail.com (C)2007

  49. Area of Financial Management Systems (continued) • Cash Management • Collects information on all cash receipts and disbursements on a real-time or periodic basis jpsugiono@gmail.com (C)2007

  50. 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