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MISINFORMATION SYSTEMS USED IN

STRATEGIC BUSINESS DEVELOPMENT IN

A RMG INDUSTRY

SUBMITTED TO: SUBMITTED BY:

Mr.T.V.S.N Murthy Geetika Gulyani,7

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Why are Information Systems required?

- support business process and operations. IS helps manager to conduct their dailyactivities and functions properly. e.g. in a garment industry,different activities like

costing of apparels, inventory management, etc take place. IS help mangers toconduct such activities accurately and timely manner with the helop of softwares.- support decison making for employees and managers. IS can simply be defined asinput -> process -> information. IS takes data as input and processes them andgenerate information. Managers can use these information for the betterment of theirorganizations. e.g. IS can analyze exisiting historical data about customers in bankand generate informations like good customers, bad customers etc. Managers canuse this information while deciding to provide loan for new customers.- support in making strategic decision for competitive advantages. IS can giveinformations like which items to launch in which location by analyzing data collectedfrom different sources such that company can have advantage by using theseinformation over their competitors. IS also can help business houses in conductingtheir business process differently than thier competitors.strategic role is also helpful for the planning of the organisation because throughstrategic role the future will be planned.

Role of Information Systems

Information Systems have played a crucial role in the RMG industry . byensuring critical decisions on forecasting of production and retail sales.

Any Garment firms strategic objective for using a information system are asfollows:

o Operational excellenceo Reduced costs

o Enhanced decision making

o Competitive edge

1. Operational excellence

1. Efficiency is an essential part of the apparel business. Managers inthe RMG industry continuously scout for methods and ways toboost their efficiency in business processes.

2. Information systems are deployed in the business processes byundertaking BPR (Business Process Re-engineering) .

2. Reduction in costs

1. Reduction in costs has been the neverdying motto of each readymade garment company as reduced costs proportionatelyenhance profits

2. Every company seeks to expand its market share by reducingprices/cost cutting.

3.

Enhanced decision making

1. Decision making is the core to any production process, as in case ofthe RMG industry, where it is primarily important in areas of

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forecasting various aspects which affect the costs indirectly ordirectly.

2. Improper decisions lead to extra inventories, high transport chargesand over-production or shortages in production, misallocation ofresources and poor response, delayed production schedules .

3. Competitive edge

In a free economy, its a business compulsion for apparelmanufacturers to seek strategies that provide them the extraedge over other competitors to boost sales and brand image.

Information systems have enabled and extended the reach offirms to their customers via web for customizing orders , thusattracting more crowd in the marketplace.

Automated functions carried out by information system give

high precision in doing various jobs at the earliest , which incomparison to others is a distinctive advantage.

Different kinds of systemsThe four main categories of information systems which serve different organizationlevels are:

1. Operational-level systems support operational managers by keeping track of the elementary activities

& transactions of the org such as sales, receipts, cash deposits. 2. Knowledge-level systems

support the organizations knowledge and data worker.- It help the company to discover, organize and integrate new knowledge into

business and to control the flow of paperwork.3. Management-Level system- monitor, control, decision-making & administrative activities of middle

managers- controlling whether everything in company is working well, whether actual

costs exceed budgets4. Strategic-Level Systems- help senior management tackle and address strategic issues and long-term

trends, both in the firm and the external environment.

Different kinds of system : Example

Systems Example (Sales system)

Strategic level To forecast sales trends, buying habits trends for next 5 years

Management

level

Tracks monthly sales figures, if sales exceed or fall below expected

figures

Knowledge level To design promotional displays for firms products, i.e. to design anattractive brochure for a new collection or style of garments

Operational To record daily sales figures, i.e. at the cashier machine

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level

TYPES OF INFORMATION SYSTEMS:

A.Functional perspective:

Sales and marketing systems

Sales and marketing systems are used for tracking the sale of products atvarious retail outlets.

These also help in determining customer buying trends and preferences .Manufacturing and production systems

Manufacturing and production systems deal mainly with the production ofgoods.

These help in planning and establishing production goals, acquisition ofmaterials, storage, scheduling of labour and materials.

Finance and accounting systems

The finance and accounting systems help in managing the assets of thecompany and streamline its investments and liabilities .

It is also responsible for the capitalization of the firmHuman resource systems

Human resource systems are responsible for the record-keeping of datapertaining to the employees of the firm.

It helps in identifying potentially skilled employees.

In the RMG industry, its vital to identify multi skilled personnel at theoperational management level so as to effectively utilize their potential.

Each type of system serves different levels and functions.

B.Constituency prespective:

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6 Major Types of Systems:

Executive Support Systems (ESS) Decision Support Systems (DSS) Management Information Systems (MIS) Knowledge Work Systems (KWS) Office Automation Systems (OAS) Transaction Processing Systems (TPS)

Transaction Processing Systems (TPS): Basic business systems that serve the operational level

A computerized system that performs and records the daily routinetransactions necessary to the conduct of the business

For example, sales order entry, employee record keeping and shipping etc.

The Systems provide operational details, summery reports,and exception reports to help supervise and control routineoperation. TPS Systems for rmg industry are: DyesProcedures/Recipe Optimization, Universal Control for Monitoringand control of finishing machines, for man m/c interface, for lottracking, and for bar code readingetc.

Knowledge Work Systems (KWS):

Aid knowledge to workers in the creation and integration of new knowledge inthe org. Eg: design workstations to promote the creation of new knowledge

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Office System-computer system, such as WP, E-mail systems and schedulingsystems to increase the productivity of data workers by supporting thecoordinating and communicating activities in an office

Management information system : The role is that to serve the function of planning, controlling and decision

making by providing routine summary and exception reports

Eg: Sales Management , Inventory Control

APPLICATION OF MIS IN A FASHION GARMENT INDUSTRY

A. ERP(ENERPRISE RESOURCE PLANNING) : ERP is principally an integration of business management practices and

modern technology. ERP is an amalgamation of three most important components:

1. Business Management Practices,2. Information Technology3. Specific Business Objectives.

ERP is a massive software architecture that supports the streaming anddistribution of geographically scattered enterprise wide information across allthe functional units of a business house

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It helps in managing data like:

Material Requisition - FromProduction Plan, Stores and UserDepartment

Purchase Order & Ordering System-Monitoring PO's, Amendments,Cancellation of PO's etc

Goods Inward/Inward Register

Issues/Issue Register - Raw Material,Packing Material, Stores, Maint. SparesMachine wise etc.

Stock Ledger - Locationwise/Consolidated

Stock Valuation - Any PreferredMethods - FIFO, Weighted Average, LIFO,

Fixed Cost Method

Slow/Non moving Stocks

Department wise Consumption

ABC/ XYZ Analysis

Supplier History & performanceevaluation

Minimum/Maximum/Reordering LevelAnalysis

B.VMI(VENDOR MANAGED INVENTORY): Vendor Managed Inventory is a continuous replenishment program that uses

the exchange of information between the retailer and the supplier to allow the

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supplier to manage and replenish merchandise at the store or warehouselevel.

In this program, the retailer supplies the vendor with the informationnecessary to maintain just enough merchandise to meet customer demand.

C.BI(BUSSINESS INTELLIGENCE):Business Intelligence (BI) refers to skills, processes, technologies,applications and practices used to support decision making.BI uses technologies, processes, and applications to analyze mostly internal,structured data and business processes while competitive intelligence, isdone by gathering, analyzing and disseminating information with or withoutsupport from technology and applications .

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D.RFI(RADIO FREQUENCY IDENTIFICATION):Includes wireless data capture and transaction processing.This technology provides additional functionality& benefits for productauthentication.

RFID applications include:. Inventory management (raw materials, work in progress,

and finished goods). Improved efficiencies in the shipping and receiving of goods. Reduction in 'shrinkage' (loss of goods or assets). Reducing 'out of stock' situations. Asset and resource tracking proving quality control. Improving quality control

D.SUPPLY CHAIN MANAGEMENT:

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Decision Support System (DSS): DSS helps managers to make decisions that are unique, rapidly changing and

not easily specified in advance DSS uses internal info (TPS & MIS) as well as external sources such as

current stock prices, product prices of competitors

DSS has more analytical power than other sys

Eg: Production scheduling, Cost Analysis, Pricing Analysis, Budgeting

Executive Support System

Executive Support System (ESS) is a reporting tool (software) that allowsyou to turn your organization's data into useful summarized reports.

These reports are generally used by executive level managers for quickaccess to reports coming from all company levels and departments suchas billing, cost accounting , staffing, scheduling, and more.

ESS address non-routine decisions requiring judgment, evaluation sinceno agreed-on procedure for arriving at a solution

ESS provide a generalized computing and communications capacity thatcan be applied to a changing array of problems.

ESS are not designed primarily to solve specific problems

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