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University of Winnipeg
Applied Computer Science
Eugene Kaluzniacky

Computer System Assignment 3 The University of Winnipeg Department of Applied Computer Science Introduction to Information Systems ACS-1803-050 Instructor: Eugene Kaluzniacky Truong Quynh Ngoc 3042529 Truong Quynh Ngoc 2 3042529 ERP software is stand for Enterprise Resource Planning software. It is a system where it manages information across the entire organization; it also composed of many subsystems functions to support business operations such as production planning, accounting management, sales and purchasing to warehousing, inventory control, manufacturing operations, supply chain and customer relationship management. ERP uses a common database that may be composed of several thousand tables, and the database is used to support all applications. The main benefits of ERP software are, it improves the working processes by increased the efficiency ensures that the business operations follow the optimal chain of activities everyday. Improved access to data for operational decision-making, it supports decisions such as sourcing or cost accounting. Elimination of costly, it helps matching the capabilities of organizations information system to its business needs. Lastly, the upgrade of technology infrastructure, when the organization is using ERP, it has an opportunity to upgrade the information technology that it uses. The information systems at Electro Tech had developed initially, most of top engineers moved into management and supervisor position. Overtime, there was the need for information as inventory reporting grew bigger and bigger, manager had so much time to look over it so properly inaccurate. The company required to have the inventory balances each month. Even though it said doing this way is more accurate but to me is not really. To have accurate information, it required so much time, for example, lower level manager have to record every transactions, by the end of month, he went through again to check if it is match with the inventory in hand. There were many orders, it took his time and probably he had overworked. Later on, the company had installed the Management Information Systems to capture Electro Tech’ key information. The program is either written in COBOL or FORTRAN for mainframe system that “allowed specific grouping of information to be collected.” However, there was staffing limitations, the information had updated at different time, in variation program. The information was empowered but the cross-functional integration was lost. Cross-functional integration is an environment that has a group of people with different functional working toward a common goal. It may include people from operations, human resources. It helps to increase information flow in the organization, flexibility in workforce and capital resources, and enhanced utilization of organizational resources. Since cross-functional integration has more range of information from all levels of management, it would increase decision complexity and confusion, would be more time consuming and less efficient, as well as generated conflict over resources. According to the Electro Tech scenario, because of lack of cross-function integration, workers don’t know what happen in other departments and necessary information. Therefore, it is led to wrong decision-making. Aware of the competition and customers’ information, Electro Tech’s management requested for the MIS activities. They hired programmers or people recently trained in latest computer program as well as replaced old code to new code; documentation is provided more complex information. It was led to the leave of some original programmers, the other of them were promoted. However, staffs increased again when the company developed on basic knowledge and required more people. Electro Tech also separated different department such as accounting/finance, VP of sales and marketing and human resources. During 70s and 80s, the company started to expanse their business by Truong Quynh Ngoc 3 3042529 building plants in Thailand and Western Europe, also found the closest suppliers as they could. By this time, the company had budgets to purchase personal computers and put project accounting and control become automated. Later on, as the price decreases, the Accounting department found the advantages of personal computers and used them extensively. Nevertheless, each department collected isolated data and made the decision according to the available data in disjoined collection of database and spreadsheets. From incomplete information, imperfect decision was made; therefore, it contributed to many problems Electro Tech faces today. There are many reasons to explain “imperfect decision resulted from incomplete information” in Electro Tech case. First, I would like to identify the situation of Electro Tech before SAP. Bob Peters is customer service representative, he usually goes to work 15 minutes before his shift because “it’s a Midwestern company, the early order desk shift covers East Coast time. The second shift is set up to cover orders later in the early day arriving from the West Coast.” Bob has to check out the lasted copy of the plant inventory report, and uses red, green and yellow markers so that he would know how urgent orders are. It is important and necessary because the Order It system is not integrated with the production scheduling or inventory system. Bob normally answers Sam Soot-customer from Reliable Manufacture phone call. Sam checks on the status of order SH100065 (requested as emergency shipment), but the automatic system break down and have to fix, so the order Sh100065 has been a week late. As experiences Bob had, he explained to Sam that the order is delayed since the system has downed and promises the order will ship the day after tomorrow. The problem arises as when Bob calls Bryan Luther-plant production scheduler to ask about the order and has an answer that the order can be out because of the maintained schedule. Bob then checks on the off-spec list and is so happy when he sees the 50 pieces order. However, he has to call Frank Brewer-Quality Control Analysis to check on the specification. Again, they don’t know about this and have to check with the Certificate of Compliance. It makes the process longer. In this situation, Bob was rush into the orders and said “it doesn’t matter if there is small difference between the specification”, however, in order to satisfy the customers, every single worker has to make sure they know what they do and the customers requirement. After all checks, Bob is happy and sure the shipment can be out tomorrow, but the problem happens again since Bob and Frank haven’t known who responsible to talk to shipping dock. Frank said it because he didn’t know if Reliable have requested any specific packing for this shipment and tried to reach Bob many times but couldn’t. Finally, he had to contact Laurie Stewart-warehouse and ship dock manager. Through the case, because of not having information is a problem, Bob have been through many difficulties to have the shipment for Reliable. As well, lack of information lead to improper promises, and Bob has to try his best to keep the image of the company. The lack of integration between the Order It syst
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