The Personnel & Payroll
Function
1
The Personnel & Payroll Function
Supported by an Integrated Database
2
The Manufacturing Function
Involves many activities like:
-inventory management
-machine scheduling
-labor management
-robotics & factory automation
-quality control
-etc
3
Information Systems to
Manufacturing
- MRP II (Manufacturing Resource Planning)
*helps the purchasing of raw materials
*automates production scheduling
*is used to process products in large batches.(When each
batch is finished, it’s moved along to the next production station)
- JIT (Just In Time)
*moves products in small batches from station to station
*materials arrive just in time from suppliers, reducing
inventory holding costs (very reliable deliveries for customers)
CIM: Computer-Integrated
-CAD/CAM Manufacturing : MRP,JIT,
*used in production (designs are transformed CAD/CAM
into numerical control instructions for machines & robots) 4
Business Process Redesign
Legacy Systems develops & sells microcomputer
sw applications, including spreadsheets,
DBMS, & DTP
Legacy Systems was organized as follows:
CEO
Customer Finance &
Marketing Sales Development
Support Administrat
5
Business Process Redesign
And products were developed using the following
process:
Customer
Needs
Quality Customer
Marketing Development Sales
Assurance Support
Specifications Product Tested product Marketed product
(given to Sales)
(characteristics (builds product (Cust Sup provides custome
of a new product were according to specifications w/ advise & info on
developed by Marketing & gives it to Qua Assu for testing) the product) 6
Business Process Redesign
But Legacy had problems w/ this
development process:
-In Marketing (the product manager) took
overall responsibility for the product
-In Development (engineers) did not take
ownership/responsibility for the product
-the serial nature of the development process:
-needs of customers are best known by Customer Support, but
they are at the end of the process (too late to give info to Develop)
-Customer Support blamed Sales,
Sales blamed Development,
7
Development blamed Marketing when problems aroused
Legacy Redesigned Development Process
to Product-Oriented Organization
All employees
identified w/ their
assigned product.
Worked as a
team to develop
specifications,
build product &
doc, & support
customers.
Marketing & Dev
personnel spent
time in Cust Supp
Produces
products that
better
meet the More concurrent
customers’
needs 8
Concurrent Product Development
9
Business Process Redesign
Business Process Redesign can cause:
- Reduced need for management & staff
personnel
- Increased Concurrency
- Organizational Resistance
10
Business Process Redesign
Reduced need for management & staff
personnel :
-Redesigned organizations are flatter.
Fewer levels of management.
-Managers have greater control area
-Large no of staff jobs become
unnecessary
(ex:document-processing reduces need for filing clerks,
presentation appl products eliminate need for graphic
artists)
11
Business Process Redesign
Increased Concurrency
- At Legacy, in developing product
specifications, personnel from Marketing,
Eng, & Cust Supp worked concurrently.c
Coming together early in the development
process increases the product quality.
12
Business Process Redesign
Organizational Resistance
- changes in personnel responsibilities,
reporting relationships, etc can cause
resistance.
(ex: At Legacy, Cust Supp group was broken up; all representatives
were assigned to a product team & reported to team’s business
unit manager. The manager of Cust Supp had no employees left &
was asked to manage one of the 3 teams)
13
Business Network Redesign
It refers to the use of information systems
to enable groups of enterprises to interact
more productively.
4 types of Network Redesign occur:
Moderately Coupled
• EDI (Electronic Data Interchange)
• Interenterprise system access
• Interenterprise process integration
• Knowledge networks
Highly Coupled
14
Electronic Data Interchange
In which organizations agree on common
data standards. W/ this they can
transmit data to & from w/o human
intervention.
Ex: Internal Revenue Service (IRS). IRS defined a data interchange
standard so both individuals & businesses can file their taxes
electronically -> saves taxpayer time & reduces IRS paperwork &
data entry.
Ex: Banks : ATM’s (Automated Teller Machines); Bank transfers; etc
15
Interenterprise System Access
In which organizations use one another’s
information systems.
Ex: The manufacturer & supplier use each other’s info sys.
Manufacturer uses it to start the shipments of goods from the
supplier.
Ex: Your flight from NY to Los A is canceled, you need another
reservation on another flight & you dont know which. You go to an
X airline; but they dont have a suitable flight only Y airline has; so
X airline agent can access Y airline’s reservation system & get the
reservation for you.
16
Interenterprise Process
Integration
In which organizations share a business
system so as to allow a single process to
be distributed across several enterprises.
The processes are undertaken by depts in
different companies.
Ex: consider a manufacturing process. Several companies decide to
manufacture & sell products together. X is strong in sale,marketing, &
order fulfillment; Y is strong at product engineering; Z is strong in
manufacturing. So X is responsible for process parts 2,3,8,9; Y for
process part 1; Z for process parts 4,5,6,7.
17
Knowledge Networks
In which organizations use information
technology to share expertise. The
expertise of several experts &
organizations is integrated into a single
system. They dont process transactions,
they just use info sys.
Ex: Attorneys could integrate their expertise in a complicated lawsuit.
Physicists & nuclear engineers could integrate their expertise to decide how
best to respond to emergency in a nuclear power plant.
18
Business Scope Redefinition
Applications that involve business scope
redefinition change the nature of the
enterprise’s activities.
4 ways to redefine business scope:
• Entry to New Market
(X Greenhouse expands its sales to Canadian market)
• Entry to New Product Category
(X adds clothing to its product line)
• Technology-Induces Products
(X develops & sells multimedia product o show customers best way to plant &
care for the products they bought)
• Technology-Induces Market Changes
(X changes market expectations w/ regard to product support) 19
Value Added By EIS
Enterprise MIS add value in the same way
that personal & workgroup Info Sys do.
They add value :
- to process by facilitating operational control,
management control,n& strategic planning.
- to products by enhancing product features &
characteristics & by improving product
delivery.
- through facilitating flexibility in an
organization’s ability to respond to
environmental changes. 20