chapter 4 logistics and supply chain information systems Flashcards
Define a supply chain management information system
a combination of hardware , software , infrastructure and trained personnel organized to facilitate planning, control,
coordination
and decision making in an organizations supply chain
Summarize supply chain information system architecture
Discuss the process of establishing and implementing a supply chain management
information system.
1.Strategic alignment focuses on the relationship between the proposed SCMI system
and the strategy of the organisation. It explains why the system is important to the
critical
success factors of the organization.the system must be aligned with the overall strategies of the organization
filling critical roles within the system. Critical project roles refer to positions and activities of sponsor, champion and SCMIS
project leader.
obtain participation from stakeholders.Stakeholder participation refers to the active and appropriate involvement of the
stakeholder groups in the systems analysis and development process
define critical design features of the system.Critical design features refer to operational and managerial work processes, system
functionality and system user interfaces. These features are necessary to the success
of the project, but they are not sufficient
Discuss the following applications of supply chain information systems:
Barcodes
E-commerce business-to-business systems
Enterprise systems
Executive information systems
Graphics in information systems
bar codes.Barcodes (Universal product codes (UPC)), are important to information processing
because they provide a low cost, well defined method for identifying products, parts,
equipment
business to business.Business-to-business (B2B) e-commerce employs computer and communications systems
to conduct transactions and exchange information. B2B e-commerce requires
specialised systems provided and maintained by the information systems function. The
term business refers to any organisation that conducts transactions with other organisations.
enterprise systems.The core enterprise systems include the set of applications that are necessary for transaction
processing, managerial reporting and reporting to stakeholders, including investors
and government authorities. These applications keep records on customers,
employees, suppliers and activities associated with them.
executive information system.An executive information system (EIS) is a computer-based application system that
provides
executives with internal and external information relevant to their management
responsibilities.
graphics information systems.Graphics are used for analysing, presenting and communicating data. Their increased
use has occurred owing to a heightened need for better and more relevant information
and the availability of low cost computer graphics tools. Graphics can help identify
key variables and trends, highlight important relationships among variables and
demonstrate subtle but important deviations or exceptions. Graphics are abstract pictures
conveying information about numbers and relationships among numbers using
points, lines, a coordinate system, numbers, symbols, words, shading and color.
Discuss the supply chain applications of information technology
business planning
sales planning
order processing
master scheduling
capacity planning
material planning
purchasing’
process design
vendors
inventory management
product design
quality
Give an overview of the process for assessing supply chain management information
systems.
Stage I: Analysis of the organizational context for information systems
1. Analysis of the industry and competitive environment of the organization
2. Analysis of the historical development, culture, structure and activities of the organization
3. Analysis of the organization’s requirements for information and technology support
Stage II: Assessment of the information system infrastructure
1. Assessment of information systems architecture of applications and databases
2. Assessment of the technical architecture for information systems
3. Assessment of organization and management structure for information systems
4. Assessment of the investment in information systems
Stage III: Assessment of the organizational interface for information systems
1. Assessment of information system planning and control
2. Assessment of information system use
3. Assessment of end user computing
Stage IV: Assessment of information system activities
1. Assessment of application development and maintenance
2. Assessment of information system operations
3. Assessment of capacity planning and technology acquisition
4. Assessment of information system support functions
5. Assessment of information system safe guards
6. Assessment of information system personnel management
Summarize the risks associated with supply chain management information
systems.
- Information systems required for organizational continuity. Many organizations cannot
function without their information systems, e.g., airlines cannot schedule flights
or book seats and banks cannot process checks. These organizations would cease
to exist if their information systems remained inoperative for only short periods. - Many organizations have made substantial investments to develop and implement
information systems. These investments sometimes account for more than 50
per cent of their total capital investment. Moreover, information systems often are
costly to operate and maintain. Significant losses can be incurred if they do not
deliver
expected benefits. - Information systems affect employee behavior. Information systems can be used to
control and reward employee performance. Incorrect or inadequate information
can result in dysfunctional behavior, e.g., employee morale may drop because
employees believe that they have not been evaluated correctly. - Information systems enable information to be exchanged among individuals in-
side
and outside organizations. An organization’s ability to respond to change
may depend on how well employees can exchange information among themselves.
Its desirability as a trading partner may depend on how well it can exchange
information
with other organizations. - Despite their high cost, many information systems fail, i.e., they are never placed in
use, abandoned after a short service life, or not used for decision making purposes.
Even organizations known for their IS expertise sometimes have dramatic failures. - Software failures can cause both direct and indirect losses. Direct losses can occur
from malfunctions that arise in physical processes or financial processes, e.g., environmental
pollution by an out of control nuclear reactor or overpayments to creditors
by a faulty electronic funds transfer system.
Indirect losses arise through damage to reputation, e.g., loss of customer goodwill
through errors in customer invoices. - Computer systems sometimes contain confidential information such as financial
data and personal details. If IS controls fail to maintain the privacy of this information,
security can be jeopardized, competitive advantages can be lost and individual
lives can be ruined.
what does supply chain management systems include
hardware
software
infrastructure
personnel
Planning.A basic management function involving formulation of one or more detailed
plans to achieve optimum balance of needs or demands with the available resources.
Control –A management function aimed at achieving defined goals within an established timetable and usually understood to have three components: (1) setting standards,
(2) measuring actual performance, and (3) taking corrective action.
Coordination – The synchronization and integration of activities, responsibilities, and
command and control structures to ensure that the resources of an organization are
used most efficiently in pursuit of the specified objectives.
Decision making – The thought process of selecting a logical choice from the available
options. When trying to make a good decision, a person must weigh the positives
and negatives of each option, and consider all the alternatives.
Organization – A unit of people that is structured and managed to meet a need or to
pursue collective goals.
steps involved in developing and implementing a Supply Chain Management
Information System
1.Analysis
This is a very important part in the development of a supply chain information system
and involves looking at the supply chain and finding out how information is being
handled at the moment
2.Feasibility Study
The aim of a feasibility study is to see whether it is possible to develop a supply chain
information system at a reasonable cost.
3.System Design
The areas that need to be considered in the design process are
* Outputs – The system must be able to report on all the supply chain activities and
functions, accurately, on time and in the format required for the purposes of effective
supply chain management.
* Inputs — To work out the inputs required for a supply chain information system
4. Testing
Any new supply chain information system needs to be thoroughly tested before being
introduced.
5.Implementation
6. documentation.
what are the key ingredients to a successful supply chain information partnership
- Shared vision at the top: Top executives in the partnering companies must agree
on the objectives of collaboration. - Reciprocal skills in information technology: Partnerships work better when both part-
ners possess the necessary skills to manage the complex technologies that may be
involved: databases, communications networks. - Concrete plans for an early success: Early successes give employees in the partner-
ing companies confidence in the venture. - Persistence in the development of usable information: Attention must be given to
packaging shared data in a way that is useful to both partners. - Coordination of business policy: Information partnerships go beyond merely sharing
data. True information partnerships are supported by information systems that essentially
ignore normal organizational boundaries between companies.
