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LALA LAJPAT RAI INSTITUTE OF ENGINEERING &

TECHNOLOGY, MOGA

PRACTICAL FILE

OF

MANAGEMENT INFORMATION SYSTEM

(IT-314)

SUBMITTED TO: -SUBMITTED TO: -

SUBMITTED BY:-SUBMITTED BY:-Ms. Inderpreet Kaur Grewal

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A.P (I.T) Class: 6th

I.T-2

Roll.

No.:10000000000


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Department of Information Technology

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INDEX

S.NO.

NAME OF THE EXPERIMENT DATE PAGE

NO.

REMARKS

1.

Introduction to Management InformationSystem.

2-4

2.Study of Information system and itstypes.

5-7

3.Study of information parameters. 8-10

4.MIS and its functional subsystem. 11-

12

5.Study of conceptual and physicalstructure of MIS.

13-15

6.Study of DSS, its users andcharacteristics.

16-17

7.Study of DSS model & Architecture. 18-

20

8.Study of GDSS, its users andcharacteristics.

21-22

9.Study of ERP and its applications. 23-

24

10. Study of ERP Marketing andimplementation.

25-25

11.Study of Supply Chain Management 26-

28

12.Study of Material Requirements Planning. 29-

30

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Experiment No. 1

AIM: Introduction to Management Information System.

Definition: MIS is also preferred Information Processing System, Informationand Decision System, organizational Information System or simply Information

System which is integrated, user machine system or providing information tooperations, management and decision making functions in an organization.The system utilizes computer hardware, software, manual procedures, andmodels for analysis, planning control and decision making and a database. Thefact that it is an integrated system doesnt mean that it is a single but itmeans that all parts fit into an overall design.

MIS for strategic policy planning& decision making

MIS for tactical planning andDecision making

MIS for operational planningDecision making & control

Transaction ProcessingInquiry response

Pyramid structure of MIS

MIS has been described as a pyramid structure in which:

Bottom layer consist of information for transaction processing, statusinquiries etc.

The next level consists of information resources in day to day operationand control.

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The third level consists of information resources to help in tacticalplanning and decision making for management control.

The top level consists of information resources to support strategicplanning and policy making by higher levels of management.

Each level of information processing may make use of data provided for lowerlevel but new data may also be introduced.

Computer based user machine system.

A MIS can exist without computers but it is a capability of computer whichmakes MIS feasible.The question is not whether computer should be used in MIS but the extent towhich computersshould be used in MIS and how much information should be computerized. The concept of user machine system means some functions are bestperformed by users while others are best performed by machines. The user of

MIS is any person responsible for entering input data, instruction given tosystem or utilizing the information output of the system. For many problemsthe user and computer forma combined system with results obtained from aset of interactions between computer and user.Computer based means that designer of MIS must have a knowledge ofcomputer and of their use in information processing. The user machine meansthat the system designer should also understand capabilities of human assystem components and behavior of users of information system.Information system application should not require user to be computerexperts. However users need to be able to specify their informationrequirement. Some understanding of computer, the nature of information and

its use in various management function aids users in this task.

Significance of MIS

MIS have become a vital component of successful business firms and otherorganizations. They contribute an essential field of study in businessadministration and management. Thats why business managers must take asubject in information systems. Since you intend to be a manager or businessprofessional it is very important to have a basic understanding of informationsystems as it is to understand any other functional area in business.

The following are the reasons why Information systems are important:Information system Resources and technologiesAn information system is an organized combination of people, hardware,software communication network and data resources that collects, transfer theinformation in organization. End users work by using many types ofinformation system. They might include simple manual hardware devices andinformal communication channels.An end user perspectiveAnyone who uses information system or information it produces is an enduser. This usually related to all persons in an organization are distinguishedfrom the smaller number of persons who are information system analysts or

professional computer programmers. A manager end user is a manager or

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professional who personally uses information systems so most managers aremanagerial end users.An enterprise perspectiveInformation system plays a vital role in business success of an enterprise.Information technology can provide the information. A business needs forefficient operations, effective management and competitive advantage.

However if information system dont properly related to the strategicobjectives, business operations or management needs of an enterprise theycan seriously damage its success so the proper management of informationsystem is a major challenge for managers.Thus information system functions include following points:

It consists of a major functional area of business.

A major part of resource of an enterprise and its cost of doing businessmakes a major resource management challenge.

It includes any important factor effecting operational efficiency,productivity and customer service and satisfaction.

It helps as a major source of information and a support needed to helpeffective decision making by manager.

It acts as vital, dynamic and challenging opportunity for users.

A global society perspectiveWe are living in a global info society, with a global economy that isincreasingly dependent on the creation, management and distribution ofinformation dependent on creation. So information is the basic resource intodays society.

People in many nations no longer stay with agriculture societies composed offarmers or even industrial societies where a majority of work force consists offactory workers. Instead the work force in many nations consist of farmers inservice occupations or knowledge workers that is the persons who spend mostof their day in creating, using, and distributing information.Knowledge workers include executive, managers and supervisors, professionalsuch as accountants, engineers etc. Most of them are end users who maketheir efficiency in using information system to create, distribute, manage anduse information resources. Thus information system helps them to managefinancial, material, energy and other resources involved in their workresponsibilities. Information or information system are valuable resource orknowledge workers, their organization and society. A major challenge forglobal information society is to manage its information resources to benefit allmembers of society while meeting the strategic goals of organization andnation. This means using information system to find more efficient andresponsible base of using information system to find more efficient andresponsible base of using the limited supply of material energy and otherresources. Since the information systems of so many organizations areinterconnected by local, global, telecommunication networks, knowledgeworkers who can know access and distribute information and manageresources all over the world. For these reasons information system play an

increasingly vital role in our global economy.

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Experiment No. 2

Aim: Study of Information system and its types.

Information system:

An information system (IS) can be any organized combination of people,hardware, software, communication networks and data sources that storesand retrieves, transforms and disseminates information in an organization.

An information system or MIS is a subset of the overall internal controlsof a business covering the application of people, documents, technologies, andprocedures by management accountants to solving business problems such ascosting a product, service or a business-wide strategy.

Frame work of Information System:

The useful concept frame work that organize the knowledge presentedin this text and outlines what you need to know about IS in figure. Itemphasize that you should concentrate your efforts in following five areas ofIS knowledge.

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(This frame work outlines the major areas of IS)

1. Foundation Concept:Fundamental behavioral, technical, business, and managerial concepts

about the components and roles of information system.

2. Information Technologies:Major concepts, developments, and management issue in information

technology i.e. hardware, software, networks, data management.

3. Business Application:The major uses of the IS for operations, management and competitive

advantage of a business.

4. Development Processes:Now business professional and information specialist, plan develop and

implement IS to meet business opportunities.

5. Management Challenge: The challenges of effectively and ethically managing information

technology at the end user, enterprise, and global levels of a business.

Types of Information System:Conceptually the applications of IS that are implemented in todays

business. ISs can be classified on operations and management supportsystem.

a. Operation Support Systems:ISs always have been needed to process data generated by and used in

business operation. Such operating support systems produce a variety ofinformation products for internal and external use.

b. Transaction Processing Systems:

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Transaction processing systems (TPS) automate the handling of data about businessactivities or transactions, which can be thought of as simple, discrete events in the life of an

organization. Data about each transaction are captured, transactions are verified and accepted or

rejected and validated transactions are stored for later aggregation. Reports may be produced

immediately to provide standard summarizations of transactions and transactions may be moved

from process to process in order to handle all aspects of the business activity.

c. Process Control Systems:

Monitor and control industrial processes.e.g. petroleum refining, powergeneration etc.

d. Enterprise collaboration system:

Support team, workgroup, and enterprise communications andcollaborations.e.g. e-mail, chat, and video conferencing groupware systems.

e. Management Support System:

When IS applications focus on providing information and support foreffective decision making by managers, they are called management supportsystem.

Management information system

A management information system (MIS) is a subset of the overallinternal controls of a business covering the application of people, documents,

technologies, and procedures by management accountants to solving businessproblems such as costing a product, service or a business-wide strategy.Management information systems are distinct from regular informationsystems in that they are used to analyze other information systems applied inoperational activities in the organization. e.g. Decision Support Systems,Expert systems, and Executive information systems

f. Decision Support System:

Decision Support Systems (DSS) are a specific class of computerized

information systems that supports business and organizational decision-making activities. A properly-designed DSS is an interactive software-basedsystem intended to help decision makers compile useful information from rawdata, documents, personal knowledge, and/or business models to identify andsolve problems and make decisions.

g. Executive Information System

Provide critical information from MIS, DSS, and other resources tailored tothe information needs of executives. e.g. systems for easy access to analysesof business performance, action of competitors etc.

h. Expert system:

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http://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Internal_controlhttp://en.wikipedia.org/wiki/Management_accountanthttp://en.wikipedia.org/wiki/Decision_Support_Systemhttp://en.wikipedia.org/wiki/Expert_systemhttp://en.wikipedia.org/wiki/Executive_information_systemhttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Internal_controlhttp://en.wikipedia.org/wiki/Management_accountanthttp://en.wikipedia.org/wiki/Decision_Support_Systemhttp://en.wikipedia.org/wiki/Expert_systemhttp://en.wikipedia.org/wiki/Executive_information_system


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An expert system is software that attempts to reproduce theperformance of one or more human experts, most commonly in a specificproblem domain, and is a traditional application and/or subfield of artificialintelligence.

Business intelligence:

Business intelligence (BI) refers to skills, technologies, applications andpractices used to help a business acquire a better understanding of itscommercial context. Business intelligence may also refer to the collectedinformation itself.

BI applications provide historical, current, and predictive views of businessoperations. Common functions of business intelligence applications arereporting, OLAP, analytics, data mining, business performance management,benchmarks, text mining, and analytics. Business intelligence often aims tosupport better business decision-making. Thus a BI system can be called adecision support system (DSS).

Experiment No. 3

Aim: Study of information parameters (age, quality, and value).

Information:Information is a data that has been processed into a form that is

meaningful to the recipient and is of real or perceived value in current orprospective actions or decisions.

Parameters of Information:

The parameters of information are:1. Quality

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http://en.wikipedia.org/wiki/Softwarehttp://en.wikipedia.org/wiki/Experthttp://en.wikipedia.org/wiki/Problem_domainhttp://en.wikipedia.org/wiki/Artificial_intelligencehttp://en.wikipedia.org/wiki/Artificial_intelligencehttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/OLAPhttp://en.wikipedia.org/wiki/Analyticshttp://en.wikipedia.org/wiki/Data_mininghttp://en.wikipedia.org/wiki/Business_performance_managementhttp://en.wikipedia.org/wiki/Benchmarkinghttp://en.wikipedia.org/wiki/Text_mininghttp://en.wikipedia.org/wiki/Decision_support_systemhttp://en.wikipedia.org/wiki/Softwarehttp://en.wikipedia.org/wiki/Experthttp://en.wikipedia.org/wiki/Problem_domainhttp://en.wikipedia.org/wiki/Artificial_intelligencehttp://en.wikipedia.org/wiki/Artificial_intelligencehttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/OLAPhttp://en.wikipedia.org/wiki/Analyticshttp://en.wikipedia.org/wiki/Data_mininghttp://en.wikipedia.org/wiki/Business_performance_managementhttp://en.wikipedia.org/wiki/Benchmarkinghttp://en.wikipedia.org/wiki/Text_mininghttp://en.wikipedia.org/wiki/Decision_support_system


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2. Value3. Age

1. Quality:Quality of information refers to its fitness for use, or its reliability. Someof the attributes of information, which influence the quality of

information, are:

1. Timeliness: means that information must reach the recipientswithin the prescribed time-frame. For effective decision making,information must reach the decision-maker at the right time.

2. Accuracy: means information is free from mistakes and errors, isclear and accurately reflects the meaning of data on which it isbased.

3. Relevance: Information is said to be relevant if it answersspecifically for the recipient what, why, where, when, who, and why?

4. Adequacy: means information must be sufficient in quantity, i.e.MIS must provide reports containing information which is required inthe deciding processes of decision-making.

5. Completeness: means that the information which is provided to amanager must be complete and should meet all his needs.Incomplete information may result in wrong decisions and thus mayprove costly to the organization.

2. Value:The value of information may be theoretically determined by the value

of a change in

Decision making behavior.Value of information can be determined by two types:

a. Value of information in decision making.b. Value of information other than in decision making.

a. Value of information in decision making:In decision making theory, the value of information is the value of thechange in decision behavior caused by the information less the cost ofobtaining the information. New information causes a different decision tobe made; the value of new information is the difference in valuebetween the outcome of the old decisions and that of the new decision,less the cost of obtaining the new information.

b. Value of information other than in decision making:Some other reasons for value of information are:

1. Motivation2. Model Building

3. Back Grand Building.

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Thus, value of information is important for an organization. There is nouse of information that has no value.

3. Age of information:Age of information with respect to information contained in

periodic report such as monthly operating report and the statement of

financial position at the end of period can be classified as:1. Age of conditional information.2. Age of operating information

1. Age of conditional information:

Condition information is that which pertains to a point in time suchas December 31. For condition information, the minimum age is theprocessing delay.

e.g. if the processing delay is 5 days, the inventory figure forSeptember 15 will be attempt five days old before it is received onSeptember 20. If inventory reports are issued weekly (i=7), the age ofinformation on hand just prior to receiving a new report is 7+5=12days.

2. Age of operating information:

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Operating information is accumulated over a period of time. Theaverage age of operating information accumulated during an interval istherefore only half the interval. Since it will be d days, after the end of theperiod until the information is available, the minimum age is d+1/2i.

Here, d= processing time and delaysi=information interval

(Age pattern of operating data)

Experiment No. 4

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Aim: MIS and its functional subsystem.

Theory:A management information system (MIS) is a subset of the overall

internal controls of a business covering the application of people, documents,technologies, and procedures by management accountants to solving business

problems such as costing a product, service or a business-wide strategy.

Definition

An 'MIS' is a planned system of the collecting, processing, storing anddisseminating data in the form of information needed to carry out thefunctions of management. According to Philip Kotler "A marketing informationsystem consists of people, equipment, and procedures to gather, sort,analyze, evaluate, and distribute needed, timely, and accurate information tomarketing decision maker.

(Human Resources MIS)

MIS functional subsystems:MIS can be viewed as a federation of a information system one for each

major organizational function here may be a common support system used bymore than one subsystems, but each functional system may be unique in itsprocedures, programs, models etc .typical major functional subsystems are:

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Major functional Subsystems Some typical uses

1. Marketing sales forecasting ,sales planning,customer and

sales analysis

2. Manufacturing production planning and scheduling, cost

control

analysis

3. Logistic planning and control of purchasing,

distribution

4. Finance and Accounting financial analysis, cost analysis ,capital

requirements planning income

measurement

5. Information processing information system planning cost

effectiveness

analysis

6. Top management strategic planning, resource allocation.

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Experiment No. 5

Aim: Study of conceptual and physical structure of MIS.

Procedure:

Structure of MIS is a difficult concept to understand because there is nostandard or universally accepted framework for describing MIS. Thus it is notsimple to answer a question like what does a MIS look like? How can onedescribe its conceptual and physical structure?

For example, a car may be perceived in a number of different ways; by

describing its physical characteristics, i.e. its shape, color, seating capacity,doors, etc. in terms of the component systems such as chassis, engine,ignition system etc. Each of these approaches would provide an understandingto the person about the car.

MIS Structure based on physical components:

Structure of MIS may be understood by looking at the physicalcomponents of the information system in an organization. The physicalcomponents of an organizational information system may be hardware,

software, database, manual procedures and operating persons.

1. Hardware: Hardware refers to the physical data processingequipment and peripheral devices. For example, CPU, monitor,

keyboard, printer, tapes, communication devices etc.

2. Software: Software is a broad term given to the instructions orprograms that direct the operation of the hardware. Software could

be of two types i.e. system and application software.

3. Database: The database consists of all data utilized byapplication software. Data is stored in files.

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4. Procedures: Formal operating procedures, which are required tooperate a system, such as manuals, are also regarded as physical

elements.

5. Operating Personnel: Personnel like computer operators,computer programmers, system analysts, system managers etc., are

the operating people of the information systems.

6. Input and Output: Various physical inputs and outputs from theinformation system, existing in the forms like printout, reports etc.

Structure of MIS based on information system processingfunctions:

Information system structure can also be understood in terms of itsprocessing functions. The functions of an MIS explain what the system does.

1. To Process Transactions: Information systems processtransactions where transaction may be defined as an activity taking

place in an organization. For example, making a purchase or a sale

or manufacturing a product. It may be within the organization or

may be external in nature.

2. To Maintain Master Files: Information systems create andmaintain master files in an organization. A master files stores

relatively permanent or historical data about organizational entities.

For example, data processing to prepare an employees salary

requires data items for the employees basic pay, allowances,

deductions, etc.

3. To Produce Reports: Reports are significant products of an

information system. Many reports are produced on regular baseswhich are called scheduled reports.

4. To Process Enquiries: An information system is used toprocess enquiries. For processing such queries, the information

system uses its databases. These may be regular enquiries with a

pre-defined format or ad-hoc enquiries.

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5. To Process Interactive Support Applications: Theinformation system contains applications designed to support

systems for planning, analysis, and decision-making. Various types

of models are used for processing such applications. The mode of

operation, as the name suggests, is interactive, in which the user

responds to questions and requests for data and receives result soas to make change in the input until an optimum solution is found.

(Information System Processing Functions)

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Experiment No. 6

Aim: Study of Decision Support System (DSS), its users and characteristics.

Introduction:

A decision support system (DSS) is a computer-based information

system that supports business or organizational decision-making activities.

DSS serve the management, operations, and planning levels of an

organization and help to make decisions, which may be rapidly changing and

not easily specified in advance.

DSS include knowledge-based systems. A properly designed DSS is an

interactive software-based system intended to help decision makers compile

useful information from a combination of raw data, documents, personal

knowledge, or business models to identify and solve problems and make

decisions.

Typical information that a decision support application might gather

and present are:

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a. inventories of information assets (including legacy and relational data

sources, cubes, data warehouses, and data marts),

b. comparative sales figures between one period and the next,

c. Projected revenue figures based on product sales assumptions.

DSS components may be classified as:

1. Inputs: Factors, numbers, and characteristics to analyze

2. User Knowledge and Expertise: Inputs requiring manual analysis

by the user

3. Outputs: Transformed data from which DSS "decisions" are

generated

4. Decisions: Results generated by the DSS based on user criteria

DSS characteristics and capabilities

1. Support for decision makers in semistructured and unstructured

problems.

2. Support managers at all levels.

3. Support individuals and groups.

4. Support for interdependent or sequential decisions.

5. Support intelligence, design, choice, and implementation.

6. Support variety of decision processes and styles.

7. DSS should be adaptable and flexible.

8. DSS should be interactive ease of use.

9. Effectiveness, but not efficiency.

10. Complete control by decision-makers.

11. Ease of development by end users.

12. Support modeling and analysis.

13. Data access.

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14. Standalone, integration and Web-based

Benefits

Improves personal efficiency

Speed up the process of decision making

Increases organizational control

Encourages exploration and discovery on the part of the decision maker

Speeds up problem solving in an organization

Facilitates interpersonal communication

Promotes learning or training

Generates new evidence in support of a decision

Creates a competitive advantage over competition

Reveals new approaches to thinking about the problem space

Helps automate managerial processes

DSS User

1. Managers

2. Staff specialists

3. Intermediary:

a. Staff assistant

b. Expert tool user

c. Business (system) analyst

d. Group DSS Facilitator

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Experiment No. 7

Aim: Study of DSS model & Architecture

Simons Model of Decision Making:

Decision Making is a process of choosing among alternative courses ofaction for the purpose of attaining a goal or goals.

The Decision-Making Process includes:

Intelligence

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Design

Choice

Implementation

Systematic Decision-Making Process (Simons Model)

1. The Intelligence PhaseScan the environment to identify problem situations or opportunities

a. Identify organizational goals and objectivesb. Determine whether they are being metc. Explicitly define the problem

d. Classify the probleme. Decompose into sub-problemsf. Is it my problem (ownership)g. Can I solve ith. Outcome: Problem statement

2. The Design PhaseGenerating, developing, and analyzing possible courses of action

Includesa. Understanding the problemb. Testing solutions for feasibilityc. A model is constructed, tested, and validated

Modelinga. Conceptualization of the problemb. Abstraction to quantitative and/or qualitative forms

3. The Choice Phasea. Search, evaluation, and recommending an appropriate solution to the

modelb. Specific set of values for the decision variables in a selected

alternative

c. The problem is considered solved after the recommended solution tothe model is successfully implemented

Intelligence

Design

Choice

Implementation

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4. The Implementation PhaseThere is nothing more difficult to carry out, nor more doubtful of

success, nor moredangerous to handle, than to initiate a new order of things.

Important Issuesa. Resistance to changeb. Degree of top management supportc. Users roles and involvement in system developmentd. Users training

Nature of Decision1. Structured Problems

a. Routine and repetitive with standard solutionb. Well defined decision making procedurec. Given a well-defined set of input, a well defined set of output is

defined2. Semi-structured Problems

a. Has some structured aspectb. Some of the inputs or outputs or procedures are not well defined

3. Unstructured Problemsa. All phases of decision making process are unstructuredb. Not well defined input, output set and procedures

Scope of Decision

1. Operational Planning and Control:a. Focus on efficient and effective execution of specific tasks.b. They affect activities taking place right nowc. E.g. What should be today's production level

2. Management Control and Tactical Planninga. Focus on effective utilization of resourcesb. more longer range planning horizonc. E.g. What is next years production level

3. Strategic Planninga. Long-range goals and policies for resource allocation

b. E.g. What new products should be offered

DSS Architecture:

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Three fundamental components of DSS architecture are:

a. The database (or knowledge base),

b. The model (i.e., the decision context and user criteria), and

c. The user interface.

d. The users themselves are also important components of the

architecture.

Development FrameworksDSS systems are not entirely different from other systems and require a

structured approach. Such a framework includes people, technology,

and the development approach.

DSS technology levels (of hardware and software) may include:

a. The actual application that will be used by the user. This is

the part of the application that allows the decision maker to make

decisions in a particular problem area. The user can act upon that

particular problem.

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b. Generator contains Hardware/software environment that

allows people to easily develop specific DSS applications. This

level makes use of case tools or systems such as Crystal, AIMMS,

Analytica and iThink.

c. Tools include lower level hardware/software. DSS generators

including special languages, function libraries and linking modules

Experiment No. 8

Aim: Study of Group Decision Support System (GDSS), its users andcharacteristics.

Introduction:

Group Decision Support System (GDSS) is an interactive, computer-

based system that helps a team of decision-makers solve problems and make

choices. GDSS are targeted to supporting groups in analyzing problem

situations and in performing group decision-making tasks. A GDSS is a hybrid

system that uses an elaborate communications infrastructure and heuristic

and quantitative models to support decision-making. A GDSS uses a set of

decision makers working together as a group.

Characteristics of GDSS:

1. Decision Room:

A Decision Room refers to the physical arrangement for using a

Group DSS. In a single room, workstations are made available toparticipants. The objective in using a Decision Room is to enhance and

improve the group's decision-making process.

Characteristics of a Decision Room include:

1) Each participant has a computer workstation.2) A leader (facilitator) coordinates the meeting.3) The room has a display screen that all participants can view.4) Computers are networked and client/server architecture is used.5) Specialized software is available to all participants.

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2. Decision Network:Group members are sitting in their respective location and use

their desktops and LAN to interact with others members. In this caseGDSS is not transparent.

3. Teleconferencing:The group members are in different cities and they come together

through teleconferencing for the GDSS operation.

4. Telecommunication:The group members are to different countries means their name

at remote location and they come together through long distancetelecommunication network.

GDSS Users:

The ultimate uses of GDSS are decision maker. However they cant runthe system. They have different usage pattern.

1. Subscription Mode:

The decision maker receives reports that are generated automaticallythat all generally or a regular basis. This is typically mode of usage formanagement reporting system.

2. Terminal Mode:

Decision maker is the direct uses of system through online access.

3. Check Mode:

The decision maker uses the system directly but offline preparinginput in coding form. The primary difference between check mode andterminal mode is technology employed.

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Experiment No. 9

Aim: Study of Enterprise Resource Planning (ERP) and its applications.

Introduction:

ERP stands for Enterprise Resource Planning. ERP is a way to integratethe data and processes of an organization into one single system. Usually ERPsystems will have many components including hardware and software, inorder to achieve integration, most ERP systems use a unified database to storedata for various functions found throughout the organization.

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The term ERP originally referred to how a large organization planned touse organizational wide resources. In the past, ERP systems were used in

larger more industrial types of companies. However, the use of ERP haschanged and is extremely comprehensive, today the term can refer to anytype of company, no matter what industry it falls in. In fact, ERP systems areused in almost any type of organization - large or small.

Integration is Key to ERP:

Integration is an extremely important part to ERP's. ERP's main goal is tointegrate data and processes from all areas of an organization and unify it foreasy access and work flow. ERP's usually accomplish integration by creatingone single database that employs multiple software modules providing

different areas of an organization with various business functions.

Although the ideal configuration would be one ERP system for an entireorganization, many larger organizations usually create and ERP system andthen build upon the system and external interface for other stand alonesystems which might be more powerful and perform better in fulfilling anorganizations needs. Usually this type of configuration can be time consumingand does require lots of labor hours.

Applications:

There are various areas normally covered under the concept of ERP are:

1. Financials: Financial accounting, management enterprise controland asset management.

2. Logistics: Production planning, materials management, plantmaintenance, quality management, roles and distribution.

3. Human Resources: Personnel management, training anddevelopment, skill inventory.

4. Work Flow: It integrates the entire organization with flexibleassignment of tasks and responsibilities to locations, positions, jobs,

groups or individuals. It integrates every employee in the value chain byproviding a versatile inbox at numbers workplace, which can be

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configured individually.

Advantages of ERP Systems:

There are many advantages of implementing an EPR system; here are afew of them:

A totally integrated system. The ability to streamline different processes and workflows.

The ability to easily share data across various departments in anorganization.

Improved efficiency and productivity levels.

Better tracking and forecasting.

Lower costs.

Disadvantages of ERP Systems: Customization in many situations is limited.

The need to reengineer business processes. ERP systems can be cost prohibitive to install and run.

Technical support can be shoddy.

ERP's may be too rigid for specific organizations that are either new orwant to move in a new direction in the near future.

Experiment No. 10

Aim: Study of ERP Marketing and implementation.

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Procedure:

Early only global organization, MNC, and large corporation withmulticounty operations considered that ERP solutions were necessary forthem. But even a small company if it is looking at the global market, has to

implement ERP solution.The cost of implementation of ERP is gradually coming down and now

even medium and small companies go for it. The experiences in the othercountries show that the productivity levels have gone up three fold withimplementation of ERP solutions.

Implementation of an ERP System:

Implementing an ERP system is not an easy task to achieve, in fact it takeslots of planning, consulting and in most cases 3 months to 1 year +. ERP

systems are extraordinary wide in scope and for many larger organizationscan be extremely complex. Implementing an ERP system will ultimatelyrequire significant changes on staff and work practices. While it may seemreasonable for an in house IT staff to head the project, it is widely advised thatERP implementation consultants be used, due to the fact that consultants areusually more cost effective and are specifically trained in implementing thesetypes of systems.

One of the most important traits that an organization should have whenimplementing an ERP system is ownership of the project. Because so manychanges take place and its broad effect on almost every individual in the

organization, it is important to make sure that everyone is on board and willhelp make the project and using the new ERP system a success.

Usually organizations use ERP vendors or consulting companies to implementtheir customized ERP system. There are three types of professional servicesthat are provided when implementing an ERP system, they are Consulting,Customization and Support.

Consulting Services:

Usually consulting services are responsible for the initial stages of ERPimplementation, they help an organization go live with their new system, withproduct training, workflow, improve ERP's use in the specific organization, etc.

Customization Services:

Customization services work by extending the use of the new ERP system orchanging its use by creating customized interfaces and/or underlyingapplication code. While ERP systems are made for many core routines, thereare still some needs that need to be built or customized for an organization.

Support Services:

Support services include both support and maintenance of ERP systems. Forinstance, trouble shooting and assistance with ERP issues.

1. Formation of implementation team.2. Preparation of implementation plan.

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3. Mapping of business process on to the package.

4. Gap analysis & Uses training.

Experiment No. 11

Aim: Study of Supply Chain Management

Introduction:Supply chain management (SCM) lets an organization get the right goods and

services to the place they're needed at the right time, in the proper quantity andat an acceptable cost. Efficiently managing this process involves overseeingrelationships with suppliers and customers, controlling inventory, forecastingdemand and getting constant feedback on what's happening at every link in thechain.

The supply chain involves several elements:

Location. It's important to know where production facilities, stocking

points and sourcing points are located; these determine the paths along

which goods will flow.

Production. An organization must decide what products to create at

which plants, which suppliers will service those plants, which plants will

supply specific distribution centers, and, sometimes, how goods will get to

the final customer. These decisions have a big impact on revenue, costs and

customer service.

Inventory. Each link in the supply chain has to keep a certain inventory of

raw materials, parts, subassemblies and other goods on hand as a buffer

against uncertainties and unpredictabilitys. Shutting down an assembly

plant because an expected part shipment didn't arrive is expensive. But

inventory costs money too, so it's important to manage deployment

strategies, determine efficient order quantities and reorder points, and set

safety stock levels.

Transportation. How do materials, parts and products get from one link

in the supply chain to the next? Choosing the best way to transport goodsoften involves trading off the shipping cost against the indirect cost of

inventory. For example, shipping by air is generally fast and reliable.

Shipping by sea or rail will likely be cheaper, especially for bulky goods and

large quantities, but slower and less reliable. So if you ship by sea or rail,

you have to plan further in advance and keep larger inventories than you do

if you ship by air.

Managing the Chain

Once you've determined all of the elements in the supply chain, how do youmanage the chain? There are three main paths in the process:

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Product flow includes the movement of goods from a supplier to a

customer, as well as customer returns.

Information flow involves transmitting orders and updating the status of

delivery.

Financial flow consists of credit terms, payments and payment

schedules, plus consignment and title ownership.

Juggling these elements involves record-keeping, tracking and analysis by

many departments. Supply chain software, especially large, integrated

packages, combines many different technologies to give a single view of

supply chain data that can be shared with others.

SCM applications fall into two main categories: planning applications and

execution applications. Planning applications determine the best way to

route materials and the quantities of goods needed at specific points. When

such applications work well, they make possible the "just-in-time" delivery of

goods. Execution applications track financial data, the physical status and

flow of goods, and ordering and delivery of materials.

Resource management

In organizational studies, resource management is the efficient andeffective deployment for an organization's resources when they are needed.Such resources may include financial resources, inventory, human skills,production resources, or information technology (IT). In the realm of projectmanagement, processes, techniques and philosophies as to the best approachfor allocating resources have been developed. These include discussions onfunctional vs. cross-functional resource allocation as well as processesespoused by organizations like the Project Management Institute (PMI) throughtheir Project Management Body of Knowledge (PMBOK) methodology to projectmanagement. Resource management is a key element to activity resourceestimating and project human resource management. Both are essentialcomponents of a comprehensive project management plan to execute andmonitor a project successfully.[1] [2] As is the case with the larger discipline of

project management, there are resource management software tools availablethat automate and assist the process of resource allocation to projects andportfolio resource visibility including supply and demand of resources.

HR (Human Resource) Management

This is the science of allocating human resources among various projects orbusiness units, maximizing the utilization of available personnel resources toachieve business goals; and performing the activities that are necessary in themaintenance of that workforce through identification of staffing requirements,planning and oversight of payroll and benefits, education and professional

development, and administering their work-life needs. The efficient andeffective deployment of an organization's personnel resources where and

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when they are needed, and in possession of the tools, training and skillsrequired by the work.

Corporate Resource Management Process

Large organizations usually have a defined corporate resource management

process which mainly guarantees that resources are never over-allocatedacross multiple projects.

Techniques

One resource management technique is resource leveling. It aims atsmoothing the stock of resources on hand, reducing both excess inventoriesand shortages.The required data are: the demands for various resources, forecast by timeperiod into the future as far as is reasonable, as well as the resources'configurations required in those demands, and the supply of the resources,again forecast by time period into the future as far as is reasonable. The goal is to achieve 100% utilization but that is very unlikely, whenweighted by important metrics and subject to constraints, for example:meeting a minimum service level, but otherwise minimizing cost.The principle is to invest in resources as stored capabilities, then unleash thecapabilities as demanded.A dimension of resource development is included in resource management bywhich investment in resources can be retained by a smaller additionalinvestment to develop a new capability that is demanded, at a lowerinvestment than disposing of the current resource and replacing it with

another that has the demanded capability.In conservation, resource management is a set of practices pertaining tomaintaining natural systems integrity. Examples of this form of managementare air resource management, soil conservation, forestry, wildlifemanagement and water resource management. The broad term for this typeof resource management is natural resource management (NRM).

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http://en.wikipedia.org/wiki/Resource_levelinghttp://en.wikipedia.org/wiki/Demand_(economics)http://en.wikipedia.org/wiki/Supply_(economics)http://en.wikipedia.org/wiki/Utilizationhttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Habitat_conservationhttp://en.wikipedia.org/wiki/Air#Air_pollutionhttp://en.wikipedia.org/wiki/Soil_conservationhttp://en.wikipedia.org/wiki/Forestryhttp://en.wikipedia.org/wiki/Wildlifehttp://en.wikipedia.org/wiki/Water_resourcehttp://en.wikipedia.org/wiki/Natural_resource_managementhttp://en.wikipedia.org/wiki/Resource_levelinghttp://en.wikipedia.org/wiki/Demand_(economics)http://en.wikipedia.org/wiki/Supply_(economics)http://en.wikipedia.org/wiki/Utilizationhttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Habitat_conservationhttp://en.wikipedia.org/wiki/Air#Air_pollutionhttp://en.wikipedia.org/wiki/Soil_conservationhttp://en.wikipedia.org/wiki/Forestryhttp://en.wikipedia.org/wiki/Wildlifehttp://en.wikipedia.org/wiki/Water_resourcehttp://en.wikipedia.org/wiki/Natural_resource_management


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Experiment No. 12

Aim: Study of (MRP) Material Requirement Planning.

Introduction:

Material Requirements Planning (MRP) is a computerized inventory controlsystem that willcalculate the demand for component items, keep track of when they are neededandgenerate works orders and purchase orders that take into account the lead timerequired tomake the items in-house or purchase them from a supplier.

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Where appropriateAn MRP system is best suited within complex and uncertain manufacturingenvironments.Environments such that customer orders are erratic, jobs may take a number ofvaryingpaths through the system, lead times are uncertain and due dates vary.

Requirements when implementingWhen implementing an MRP system the following strategies need to beidentified: -

1. Accurate Bills of Materials and Routings.2. Replenishment Strategy.3. Re-Order Point Control.4. Min, Max.5. Economic Order Quantity (EOQ).6. Safety Stock.7. Etc.8. Strict procedures on Issuing and Receiving stock should be adhered to

and frequently.9. Training should be given to all staff that uses the system to make them

aware of thebenefits and more importantly the risks of not adhering to procedures.

Relationship to Environmental Turbulence Indicators (ETI)Supply Chain Turbulence.

Relationship to Agility Capabilities Indicator (ACI)1. Operational Agility.

2. Replenishment Strategy.

MRP system can be efficient and effective with following points: -1. Make a key individual responsible for the MRP system.2. The replenishment strategy must be identified and balanced to reduce the

risk of over stocking or potential stock outs.3. MRP implosions should be run regularly. Depending on the lead times

offered, at the end of each shift should be sufficient.4. Each item that is stocked requires a designated place that is labelled with

part number, description, quantity and the location.5. Always remember that what the MRP suggests you should make are

Suggestions and common sense must always prevail.6. The data within the system should be accurate and up to date. After allrubbish in rubbish out.

7. No defective part should be booked into the system as complete. As thiswould be classed as a useable item.

8. Contingency reports should be set up to identify items that have beenordered that have no bill of materials or routings. As these could be quiteeasily over looked.

9. Regular stock checks should be undertaken to account for scrap ordefects. These initial should be undertaken regularly, but as the systemruns these can normally be relaxed.

Risks

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1. The bills of materials and the routings need to be accurate and up to date.2. The stocking quantities and re-order levels need to be calculated

accurately otherwise yourun the risk of over stocking or even running out of stock. Also the

replenishment strategyneeds to be identified in line with your products and processes. It is also

very important todecide where you are actually going to hold stocks and where you are

not.3. The data within the system must be accurate and up to date, after all

rubbish in rubbish out.4. Strict procedures must be followed on receiving and issuing stock and this

needs to be doneon a regular basis.

Benefits1. The benefits of implementing accurate stocking quantities and re-order

levels means that youare greatly reducing the risks of over stocking or even running out of

stock.2. In terms of managing these stocks, the benefits of employing an MRP

system is that it doesall the hard work for you and just relies on you checking that what it is

suggesting is sensible.3. Other benefits are that it provides a central data source so people are not

duplicating data orjobs. It also means that reports can be generated to calculate what to

order and when. Thisenables companys to easily manage complex products. With this data

that is being collected,accurate performance measurement can be undertaken. As the system is

calculating what toorder and when, it frees up the users time to address other issues.

Advantages of MRP Systems

There are many advantages of implementing an MRP system; here are a fewof them:

1. MRP enhances productivity2. Eliminates inefficiencies.

3. Increases customer responsiveness.4. Reduces Raw Material Inventory

misprctical

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