The process of whole system is starting from generating sales order. The agents simply puts the customer details in field provided which guarantees that no relevant information is missed out by the agent. Once relevant information has been put , the details automatically checks the credit limit of the customer and if it permits the agent decides and print out the copy of sales order for different departments.
One of the copy of sales order is sent to the warehousing department where the personnel checks whether the stock of different components requires to meet sales order is sufficient. If some material has to be procured then it places the order with the vendor and make all arrangements to meet sales order by the target time given.- In the present system once the production has been given target and production is carried out the goods are sent to the shipping and receiving department .
The goods are then counted and checked by them and compared with the sales order slip. The advantage of this system is that the same slip is used as bible as it is original document generated by marketing department and before handing over to the customer these final goods are again compared with the sales order slip.The goods if any are received as merchandise returns are delivered back to the company. And warehouse department enters these amounts in the master file. This is very important step in inventory control management. The Production and inventory mangers of the company have asked to make a attempt to convince the president and vice president that new information system is essential to the continued success of the firm.
Inorder to convince the management regarding adoption of the new information system in the company . We have to first identify the major problems and their implication on the future of the this well established company. Major Problems in Present Production and Inventory system of Plocharski Company – Manual Job Order and tracking card are prepared to track and keep record of inventory. Earlier when size was small the company could maintain manually but now when size has increased the company should start thinking as improper stock keeping and inventory valuation leads to wastage of valuable stock, other related resources and obsolesce.
No follow ups of scheduled target dates . Deadlines for goods delivery is never met. Customers are taken for granted. They have to come to the Company and enquire bout their order. – The competition is increasing. The other manufacturers have started imitating their designs. They are not proactive in their approach. They should follow such an scheduling approach so that Just-In-Time method can be implemented .and avoid wastages and meet target on time. – Management of the company is adamant over adopting new techniques of information flow. This approach may hamper the business of the growing firm.
Job order and raw materials inventory are updated once in a week and updating process takes once a week.The is too slow and is good only if the company has monopoly in market. ystems implementation is often called the ” action Phase” of a systems study because the recommended changes from prior analysis , design and development work are now put into operation. Implementation could be lead to confusion. Prepare the physical site Before going ahead, the organization should arrange for the actual physical site. If new site has to be arranged then how much cost has to be incurred.
Determine functional changes The company has to consider the probable effect of new accounting system on reporting structure and personnel relationship. Ignorance of Human relationship may lead to long term problem. Select and Assign Personnel Introduction of new system will modify the job structure of many employees. The employees whose job is getting eliminated or reduced should be offered job in new system or be given sufficient notice of termination. Train Personnel Before the introduction of new system the employees should be given adequate training and feedback session should be considered otherwise new system though very efficient will prove to be a failure.
Acquire & Install Computer Equipment Once physical place is planned , the terminals, routers , servers are bought and positioned as per the plan. Estabilish Internal Controls Organisation should implement internal controls inorde to safeguard its assts, ensure the accuracy and reliability of accounting data, promote operating efficiency and encourage employees. Convert data files When converting to new system, an organization may have to convert its data files to newer, more useful formats. Acquire Computer Software The implementation team must also install the software that was acquired or developed for the project.The software from indepent vendor is called canned software while bundled with hardware is called turnkery systems.