MIS implementation at AC Ltd | Analysis

A PROJECT Survey On Management Information System of AC Ltd.

TABLE OF CONTENTS

S. NO.

PARTICULARS

PAGE NO.

ACKNOWLEDGEMENT

3

EXECUTIVE SUMMARY

4

1

INTRODUCTION - Description OF MIS

5

2

COMPANY PROFILE

6

3

OBJECTIVE IN THE STUDY

7

4

SCOPE OF THIS STUDY

7

5

TYPES OF MIS AND USES

8

7

ROLES OF MIS

8

8

DESCRIPTION & Mother nature OF INFORMATION SYSTEM

12

9

Description and Analysis use of Information Systems

MIS Analysis AT AC LIMITED

9. 1 Basic Information

9. 2 Need For Integrated MIS

9. 3 MIS Functions Supplied by Current MIS

9. 4 Architecture of MIS at AC Limited

9. 5 Inventory Management Module Of Current MIS

12-24

11

ASSESSMENT OF CURRENT USE OF INFORMATION SYSTEMS, recognition of problems

24

12

RECOMMENDATION for future advancements used of IS

25

13

GANTT CHART

28

14

REFERENCES

29

EXECUTIVE SUMMARY

Making decisions can be an essential part in the performing of any organization. To help in Decision making in this ever-competitive world it is crucial that managers have the right information at the right time to bridge the gap between need and expectation. For better move of information an sufficient Management Information Systems (MIS) is the necessity of this time. Thus it is important to have an understanding of the MIS followed in an organization by all levels of management to be able to have effective and appropriate decisions.

A management information system collects and functions data (information) and provides it to professionals whatsoever levels who put it to use for decision making, planning, program execution, and control. The MIS has many jobs to execute like your choice support role, the performance monitoring role and the efficient support role.

To get an authentic view of the MIS, Ive been through the MIS of AC Small. For the purpose of getting back in depth knowledge of particular functions of the business, I targeted the needs, uses and benefits associated with MIS with respect to the Material Team of the company. For the prep of this article, Inventory Management has primarily been centered.

AC Small is main Pakistani companies to understand the potential and need for information technology and also to adopt automation and IT infrastructure. The primary computerization occurred in 1986.

The company has traveled a long way from the times in 1986 when it was using simple keypunching machines. Significant improvements were made in the application systems and infrastructure. From Batch processing to on-line systems, from IBM1401 to the latest UNIX and Windows XP and 2003 based mostly machines business has made well-timed transitions determined by the available systems. Throughout this development the MIS continued to be synchronized to the info flow in the organization and the management felt which it has played a job in the entire expansion and increased performance of the organization.

INTRODUCTION - Description OF MIS

Management Information Systems (MIS) is something comprising people, machines, methods, data bases and data models, as its components. The system gathers data from Internal and Exterior sources of an organization; procedures it and supplies Management Information to aid managers along the way in decision making. Thus it is safe to summarize that an information system is "a system comprising the network of most communication programs used in a organization".

There a wide range of potential benefits associated with MIS investments

Investing in information systems pays off for a corporation in many ways.

  1. It could support a main competency.
  2. Enhance distribution route management.
  3. Builds brand collateral.
  4. IT investment can enhance production processes
  5. Information systems allow company overall flexibility in its result level.

An information system consists of all the components that collect, manipulate, and deliver data or information. It usually includes hardware, software, people, marketing communications systems such as telephone lines, and the data itself. The activities engaged include inputting data, processing of data into information, storage of data and information, and the production of outputs such as management reports.

COMPANY PROFILE - THE ACC LIMITED

AC (AC Small) is Pakistan's most important manufacturer of cement and cement. AC's businesses are multiply throughout the country with 14 modern cement factories, 13 Ready combine concrete vegetation, 19 sales offices, and several zonal offices. It has a labor force of about 9000 individuals and a countrywide distribution network of over 9, 000 dealers. AC's research and development facility has a unique history of ground breaking research, product development and particular consultancy services. Since its inception in 1936, the business has been a trendsetter and important benchmark for the concrete industry according of its creation, marketing and personnel management operations. Its commitment to environment-friendliness, its high honest standards running a business dealings and its on-going initiatives in community welfare programs have triumphed in it acclaim as a dependable corporate resident. AC has made significant efforts to the country building process by way of quality products, services and writing its knowledge.

In the 70 years of its presence, AC has been a pioneer in the manufacture of concrete and cement and a trendsetter in many areas of cement and concrete technology including improvements in raw materials utilization, process improvement, energy saving and development of high performance concretes.

ACs brand is synonymous with concrete and enjoys a high level of collateral in the Indian market. It is the only cement company that results in the set of Consumer Super Brands of India.

The company's various companies are supported by a robust, in-house research and technology backup facility - the only one of its kind in the Indian cement industry. This ensures not only reliability in product quality but also ongoing advancements in products, operations, and application areas.

AC has abundant experience in mining, being the most significant user of limestone, and it is also one of the principal users of coal. As the most significant cement maker in India, it is one of the biggest customers of the Indian Railways, and the foremost user of the road carry network services for inward and outward motion of materials and products.

ACC in addition has long its services overseas to the center East, Africa, and SOUTH USA, where it includes provided specialized and managerial consultancy to a number of consumers, and also helps in the operation and maintenance of cement plants in another country.

ACC demonstrates the practices of being a good corporate and business citizen undertaking a wide range of activities to improve the living conditions of the under-privileged classes living near its factories.

OBJECTIVE OF THIS STUDY

The objective of the report is to study the MIS execution at AC Ltd. and by using this website, to get an information in to the needs of MIS in business setups on a big level, various functions performed by the MIS, benefits produced out of such a system and the potential risks involved.

I plan to aim my study at analyzing the business enterprise needs of the business, key troubles or desired practical requirements of the MIS, the IT solution that is currently implemented and the outcome of such something.

AC Ltd. requires MIS to map inside processes and relationship with the exterior environment to the technology and ensure the solution delivers real advantages to the business.

SCOPE IN THE STUDY

The scope of the study is to comprehend the reason why behind the need of MIS in AC Ltd. This research leads to the MIS support to the Company as a whole with special focus on Inventory Management utilized in the Materials Stores Section of the business. Through the connections with the executives of AC Limited, we get an perception about the effectiveness of the MIS set up at the business.

TYPES OF MIS AND USES

MIS CLASSIFICATION

MIS is an idea, which really is a matter of degree rather than a complete one. In management there are perhaps few the areas other than MIS which gas created very much controversy. We would make an attempt to try to look into different kinds of MIS as they may have evolved during time.

  1. Transaction Control System
  2. Management Information System
  3. Decision Support System
  4. Executive Support System
  5. Office Automation System
  6. Business Expert System

FUNCTIONAL USES AND Functions OF MIS

THE PERFORMANCE MONITORING ROLE

MIS are not merely information and data examination. They need to be utilized as an MBO (Management by Targets) tool. They help
  • to determine relevant and measurable objectives
  • to keep an eye on results and shows (reach ratios)
  • to send alerts, in some cases daily, to professionals at each level of the business, on all deviations between results and pre-established aims and finances.

THE FUNCTIONAL SUPPORT ROLE

Business functions and procedures support function is the standard. It will involve collecting, recording, holding, and basic processing of data. Information systems support business techniques and functions by
  • tracking, storing and handling sales data, purchase data, investment data, payroll data and other accounting records
  • taking, storing and digesting inventory data, work in process data, equipment repair and maintenance data, supply string data, and other production/operations records
  • taking, storing and producing employees data, salary data, job histories, and other recruiting records
  • saving, storing and producing market data, customer information, customer purchase histories, marketing research data, advertising data, and other marketing records
  • recording, stocking an handling business cleverness data, competitor examination data, industry data, commercial aims, and other tactical management records

use of all above to apply, control, and screen plans, strategies, techniques, new products, home based business models or new business ventures.

THE DECISION SUPPORT ROLE

The business decision making support function moves one step further. It really is a fundamental element of making decisions. It allows users to ask "What if?" questions: What if we boost the price by 5%? Imagine if we increase price by 10%? What if we decrease price by 5%? Imagine if we increase price by 10% now, then reduce it by 5% in three months? In addition, it allows users to deal with contingencies: If inflation boosts by 5% (rather than 2% as we are presuming), then what do we do? What do we do if we are confronted with a reach or a fresh competitive threat?

ORGANIZATIONAL STRUCTURE FROM THE ACC LTD.

Description and Mother nature of Information System

INVENTORY MANAGEMENT

A product that is increased demand is usually extremely difficult to manage. Delivering the right amount of products means that a precise demand forecast is essential. This supports the effect on the entire source chain to facilitate useful consumer response predicated on consumer demands it becomes important that such companies consider inventory management very seriously. Making appropriate demand and supply predictions is a great situation that anyone in the supply chain management industry could perfect off.

By providing well-timed accurate information regarding inventory location, motion and valuation, receipt of goods, sales and come back of goods and earnings you can make sure that your inventory is obvious within a network.

With inventory management you can established your product catalog to cover up products that aren't in stock, or change prices predicated on the quantity of products available in the warehouse. The number available can be displayed to the shopper and this can prevent pointless misunderstandings when the shopper adds items not available to a shopping cart software. The store buyer can be automatically notified about low inventory levels.

IT (IT) is an integral enabler in the change of purchasing into a proper business function. The challenge is to find a way to put these technologies to work with and create value and competitive edge.

The Main Aims in Inventory Management are
  • Increased customer service
  • Reduced inventory investment
  • Increased productivity
  • Great things about inventory management applications
  • Complete control of inventory.
  • Complete information about the value of the inventory
  • Complete awareness on Quantities on hand, Quantities dedicated and Volumes sold
  • Response time to demand changes reduced
  • Increased sales
  • Knowledge of the precise size of merchandizing inventory
  • Fees and insurance premiums paid on unnecessary merchandize inventory averted.

DESCRIPTION AND Research OF INFORMATION SYSTEMS

AC is main Indian companies to understand the and importance of it and take up automation and IT. The organization began computerizing its systems as early as 1986. The organization has traveled quite a distance from the times in 1986 when it was using simple keypunching machines. Significant advancements have been manufactured in the application form systems and infrastructure. From Batch handling to on-line systems, from IBM1401 to the latest UNIX and Home windows 2003 centered machines it has made well-timed transitions determined by available technology and business requirements.

AC has made a quantum bounce from in-house developed systems using Oracle 9i and Creator 6i to the ERP based solution. This decision was entirely based on its strategic aims and the business enterprise benefits that are anticipated to check out. With this move people, business processes and technologies in the united states are aligned.

The execution of ERP solution for process control is shown in the shape below.

Fig. 1 The ERP implementation for process control at AC Ltd.

IT department is still continuously working on improving the operation and taking away the problems of the machine. Because of this system is becoming better day-by-day, thus increasing the efficiency of the company.

NEED FOR A MIS

The benefits associated with a built-in MIS are

  • Better processing of the large level of data in an organization.
  • Minimizing the Redundancy of Data occurring in case of separate deals.
  • Option of all the required information about any team by using a common system.
  • Making the machine capable of helping the managers in making decisions.
  • Facilitate the communication between the various regional offices of the company and the organization office along with the key plant.
  • Use of online data to speed up the information movement of the business and facilitate decision-making

FUNCTIONS PROVIDED BY CURRENT MIS

Plant (Making & Maintenance)

Production

  • Breakdown and Place performance Module
  • MIS Studies and stoppage Module, Stock position

Raw Materials Management System

  • Integration with Weigh Bridge and Security Gate
  • Daily stock, issue position and expenses passing
  • Transport Freight Repayment Systems

Weigh Bridge

  • Integrated with Security Gate
  • Stopped one mechanical weigh bridge
  • 500 trucks can consider for gross and tare in one day

500x2 = 1000

  • Time Management Information, Truck Activity reports
  • Weighment is integrated with invoice cum challan freight
  • Payment
  • Pick up truck position inside and outside the seed.

Computerized Precautionary Maintenance Software

  • Both herb are employing this module
  • Preventive Maintenance and Breakdown Module
  • Shutdown module and integrated with inventory
  • Forecasting of spares and skills usage module

Inward & Outward Materials Security

Control on returnable goods

Work Order and analysis

  • Work Order will be prepared by authorized person
  • Provided to all or any departments. Integrated with Rate Master
  • And budget.

Labour Deployment and accounting System

  • Daily supply of Contractor Labour deployment
  • Against regular, adhoc and shutdown requirements
  • Daily/monthly/yearly evaluation reports
  • Service provider labour Bill moving system

Commercial Applications

Marketing Accounting and examination System

  • Excise module and Sales Taxes Module
  • Transport Bill passing module
  • Order Confirmations and Dispatch Instruction
  • Free Market Requirements, Railway Receipt
  • Commercial Invoice, Debit Take note, Credit Notes.

Stores Inventory & Non Inventory

  • ONLINE indent, Issue and Receipt Materials
  • Delivery Schedule
  • Handling the inventory
  • Managing the increased inventory
  • Stores Ledger, ingestion Summary
  • MIS accounts, Budget V/s Actual Ingestion.
  • Integrated with financial Package
  • Repair & maintenance inventory, Section Wise Expenditures.

Purchase Management System

  • Purchase Order integration with indent
  • On line enquiry, Party sensible information
  • Pending list of purchase order
  • MIS studies, Purchase / Indent Register
  • Repayment Advice System (Progress, regular)

Financial Accounting System

  • All sorts of voucher feeding
  • Purchase and freight expenses passing
  • Other Expenses bill moving and TDS Module
  • Basic Ledger, Sub Ledger and Trial balance of two
  • Financial years
  • Auto repayment advice, Bank forwarding characters, payment
  • System, Overhead Analysis information.
  • Integrated with inventory and Payroll module MIS Reports
  • Cash Budget,

Vehicle Movement

  • Handling on Taxi cab, Car etc

On line General information System

  • Information provided to Users about
  • Online Leave status I. e. beginning, availed and shutting status
  • Electricity Deduction Worker sensible, Quarter wise
  • Over time Status section wise
  • Welfare regulations, Telephone list, unintentional etc
  • Actual Usage against budget, Welfare information

Human Resource Development

  • Topic Classes, General Awareness Program,
  • TNA of Workmen, TNA of LCW, Individual record of ext/int
  • Training, Pending Training etc.

    Payroll & PIS Module

  • Payslips of Personnel, Worker, College, Badli & Casual Worker
  • PF, VPF, Bonus, Gratuity Module
  • LIC, CTD, Thrift Modern culture, Co-operative advances Component.
  • Recovery & Deduction, PIS and TAX Employee wise
  • Integrated with Financial Package
  • AS TIME PASSES, C-off Module
  • Payroll of Marketing Office (Transferred from HO)

Sales Accounting Systems

  • Sales Accounting Systems, Hire Payment System
  • Data launching, Expenses Payment System,
  • Freight Payment, MIS, Transferring in FAS

Gate Forward System (Returnable &Non-returnable goods)

  • All goods send through Computerized Gate Pass
  • Integrated with Gate System.
  • Pending repair items information

Architecture of MIS at AC Limited

Current MIS of the company is basically a In-house developed system, also comprising of few customized readymade software programs bought from outside the house developers. It comprises of 11 main modules covering all the primary functions of the business.

Inventory Management Module is one of the main parts of the system. It is highly included with the other modules and capable of functionalities like Auto Alarming when inventory is low. It is capable of generating more than 200 different types of information to help professionals in several required ways. Its main parts include Inventory concern, purchase, expenses passing, other OER passing, freight passing, stock updation etc.

DFDs and Data processing diagrams
Inventory Package Context Level Diagram (CFD)
Inventory Package Issue DFD
Inventory Purchase DFD

Data Control (Full Inventory Component)

Application used for Work order Prep with the ACC Ltd.

1. ITEM CODE CREATION

There are 9 types of item group in Non Catalogue Item

  • Medicines 806
  • Stationary 807
  • Repair Order 808
  • Travelling Order 809
  • Recycleables 810
  • Capital Requests 811
  • Job Orders 812
  • Laboratory Items 813
  • Direct book orders 814

2. Indent Posting

3. Indent Sanctioning

4. Indent Type Updation[image]

5. Order Preparation

6. Order Printing[image]

ASSESSMENT OF CURRENT USE OF INFORMATION SYSTEMS

IDENTIFICATION OF PROBLEMS

After analyzing the machine properly, we came up to a simple conclusion that system is working fine at a standard level and comprising very little problems. These problems cant be stated consequently problems and instead can be explained as future route. Still we tried out to write down the few of them, which can be as follows: -

  • Still lack of system integration after a level. Though inventory management module is included well with all the current other modules like economic climate, thus lowering the redundancy. But nonetheless there is certainly need of newspaper work and manual intervention when reordering is necessary. System cannot be configured to reorder automatically, even for the fast paced raw material.
  • Lack of Web Integration. AC hasnt still hired the idea of taking requests or placing your order through web and have no integration of its system to its website.
  • Legacy Network Support. Backbone network used by AC continues to be the same, that they used in 1993. They havent upgraded the network support from then, which has started creating problems for the kids already. As MIS of the company is enhancing day-by-day including increasingly more functionalities, the network has recently become very slow.
  • Insufficient training to managers to effectively use the decision support functionalities of system. That is another problem that people felt at the company. IT department is actually making the advancements in the system constantly with new added functionalities, but there exists lack of training to managers to effectively use these functions in way that can support those to make better decisions. For example, on the average, a supervisor uses only 10-15 types of accounts out of more than 200 types of reports available.

RECOMMENDATIONS FOR FUTURE DEVELOPMENT

Considering the given problems, their evaluation and research on comparative MIS systems found in the similar kind of sectors, our group is showing following suggestions for the business.

IT division of the company should now work towards integrating the machine on an increased level and making the company Paper-Less Office. This will be done by integrating the system in a manner that the manual intervention be reduced in the day-to-day process.

The company should also start Web-Based purchasing and selling, so that to have the ability to catch up with the growing industry.

As more improvements in MIS would be done, and Web-support to be also incorporated, it is more than sure that current Network available will crash. To cop this, company must update its network. For this function, we suggest the tie-up of company with some outside the house contractors like IBM or CISCO to continually upgrade and maintain their network.

With each up gradation, we suggest training to the managers of the company about effectively using the added functionalities and use of them in an improved way. This is also done by providing a handbook along with each up gradation.

REFERENCES

Officials Contacted from

Mr. Sam Joseph (Deputy Administrator, IT Office), AC Small.

Secondary Sources

Management Information Systems - A Managerial Point of view, D. P. Goyal

www. tcs. com

www. sap. com

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