To solve the above problems and achieve the business strategies set out by the senior management, an information system is required to do the following tasks.
( a ) Computerised Stock Control System
( b ) An instructive “Bill of Materials” database.
( c ) Product Cost Analysis report.
What data / information qualities must it have ?
In respect to the stock control sub-system the information held in the stock file will be accessed by all the various users ( Sales Desk, Production staff and Accounts ) for different reasons. Therefore the quality of information required will differ between users.
The sales desk will enquire if a product can be manufactured from the components presently in stock, without the knowledge of what components are required. This will assist them in scheduling and will determine whether a delivery date can be achieved. In this case communication time is an important factor, the system should provide regular updates throughout the day on the stock level of components. To make the system simple for the user a computerised “Bill of Materials” should be adapted, in the form of a database. Listing all the components required to manufacture a certain product.
The production staff will require a high level of detail from the system, again in the form of a “Bill of Materials” to ensure the correct components go into manufacturing the chosen product by the customer. Also the staff needs to be confident the stock levels are correct as re-ordering will be done automatically on this information.
In reference to the accounts department, they also will require detailed information on components used per product and the various purchasing costs involved. To establish if a certain product increases or decreases the overall profit value of the organisation. As costings and sale prices would be listed this information needs to be secure and access forbidden to the other uses. Non-profit making products will be encapsulated in exceptional reports.
In all three cases the information accessed and produced must be both accurate and complete, to ensure the benefits of the system are accomplished.
How would you categorise it ?
The system is foremost formal and quantitative, the information being displayed, measured and processed numerically with reference to component identification. This presently taking place with the day to day running of the business. Although the calculated data, such as costings and stock levels would be historically recorded for future analysis.
Therefore as the information system is used on a day to day basis it could be described as an operation level system. Structured in form, with repetitive tasks processed, which would result in predictable outputs.
In respect to the “Bill of Materials” database this could be viewed as a knowledge work system, with reference to the sales desk and production staff users. As the databases primary concern is the creation of new knowledge for its user ie. Which components are required to manufacture a particular product. Also in relation to the production staff, the information system could be considered as a Transaction Processing system. Recording the use of components and monitoring stock levels to produce purchase order transactions once a components stock level has been reduced to a set point.
With reference to determining whether a product is a profitable item, then reporting and acting on this output information. The system used in the accounts department would be expressed as a Management Information system, supporting structured and semi-structured decisions on whether the sale of a product should continue or the sales price should be altered to suit.
In conclusion the overall information system would cover a wide spectrum of categories, when viewed from the different users perspective.
Who are the interested parties and what is the extent of their interest ?
This type of information will be discussed during the feasibility study concerning the system. We have previously examined who will use the system and their basic need from that system. In summary ~
Users ~ Need
Sales Desk ~ Can a requested quantity of products be manufactured from the components currently in stock. Without having human knowledge of what components are required. Therefore assessing whether a delivery date can be achieved.
Production Staff ~ Computerised stock control system in relation to the various components. Instructions on which correct set of components produce the requested product.
Accounts ~ The sales price of the product, list of components to built that product and purchasing costs. Set out in a cost analysis report.
All three of the above users would help in designing the system both in respect to their particular needs and that of the overall organisation.
The majority of data used in the system will come from production staff and their knowledge ie a list of all the products manufactured and a further list of the components needed to build each product type. This will then be checked for any errors. Also to calculate an appropriate stock level for each component, information on turnaround from suppliers and the average quantity used in a set period ( eg one week ) will be needed.
The purchase price for the components and the selling price per product will be obtained from the accounts department staff.
Unfortunately none of the future users have the technical expertise to build the system. Therefore the information system will need to be built by a professional in this field. However all the users would assist in choosing the correct forms of input and output methods of the system.
Which analysis and development methods would you use ?
Having successfully performed a feasibility study to determine if the proposed information system is technically and economically feasible. The next stage is to choose an analysis and development method to ensure the systems implementation is achieved. In my opinion the best option would be SSADM ( Structured Systems Analysis and Design Methodology ) the stages of this being ~
Stage 1 ~ Investigation of Current Environments
As discussed in the opening paragraphs, an overview of the current process, problems and users would be identified.
Stage 2 ~ Business Systems Options
The inputs, outputs, processes and data would be described at this stage. For example the production staff may choose a bar code system linked to the components, when a component is taken and swiped out the stock level is adjusted automatically and a buzz sound is generated to confirm the correct component has been selected for the product it is being used to build.
Stage 3 ~ Requirements Specification
This phase will determine the systems data, functions and events. Which can be clearly shown in the flow chart below, listing how data will flow around the business between the various entities.
Stage 4 ~ Technical System Options.
The costs, benefits and constraints of implementing the system will be described at this stage. For example as the system will effect the day to day running of the business, time will be an important constraint. Whereas the benefits created would exceed any reasonable cost.
Stage 5 ~ Logical Design
At this stage a model is created to shown how data is logically exchanged, by doing this and linking it to the process model shown above. It forces the analysts and business users to completely describe all the information requirements of the business area, to ensure data elements are not missed or defined improperly.
Stage 6 ~ Physical Design.
The correct choose of data storage, performance and processing characteristics will ensure the system does the job it is intended for. As the information is to be centralised a large file server would be required.
The reasons for choosing this method are as follows ~
a, All the activities are broken down into sub – activities, defining inputs and outputs. Making it easy to understand for the users who would assist in the systems design etc.
b, The technical activities are clearly stated and documented, which will assist in any future maintain to the system.
What organisational issues need to be addressed ?
The information system will improve the efficiency and communication regarding product data between the users, which will hopefully result in the organisation becoming more profitable. To achieve this goal a computerised stock control procedure, Bill of Materials database and Cost analysis reporting system is to be put in place.
The implementation of such a system, moving away from a manual process towards a computerised one, will mean changes to the organisations structure and the staff working within that structure.
For example some members of staff may be non computer literate, and will try to resist the innovation of the new system. To address this issue all members of staff will be invited to play an important part in the systems design, development and implementation. Training will be given not only on the system but on using computers in general.
The production staff may feel there job skills are being degraded with the approach of anyone being able to build a product if an instructive Bill of Materials is available.
Finally as the stock level of components are no longer to be checked manually and purchase orders will be done automatically. The number of stock control staff required will be reduced dramatically; only one person may be called for to update the system on supplier’s deliveries and new products being offered.
References
MBA Notes : Information Systems Initiation and Development, Units 1 and 4
Alter, S ( 2002 ) Information Systems, The foundation of E – Business
, Why Build a Logical Data Model
, Software Engineering & Systems Analysis Concepts
