Part 2 - Information system Flashcards
The developments of INFORMATION SYSTEM are required to deliver performance improvements
- The current data from these is UNRELIABLE and INCONSISTENT
- They are inadequate to provide the TIMELY and ACCURATE performance data
- A SHARED DATABASE accessible by all parts of the multidisciplinary teams
- Updated in REAL time
- The database should include FINANCIAL data, such as cost information, and NON-FINANCIAL data relating to lead times and quality.
- FAST and REALIABLE INTERNET SERVICES will be required
Benefit of unified corporate database
- Unified corporate databases integrate data from subsystems (for instance, production and sales) allowing management to see an overall picture of where performance is, and thereby help inform future business decisions.
- RELEVANT: relevant to the needs of the users by giving users only information and reports which are relevant to them and sharing data from all relevant departments
- TIMELY: it must be available when needed. A unified database would ensure that data was available instantly => improve the speed of decision making
- ACCURATE: data automatically with minimal human intervention, and would thus be less prone to inaccuracies
- COMMUNICATION: only assess to information which they need => be in an easy to use format, drill down to more detailed information.
- COST: The cost of producing the external information should not exceed the benefits
Objectives of management accounting information
- To measure performance
- To control the business
- To plan for the future
- To make decisions
Evaluating the quality of information
- The provision of good information: relevant, timely, accurate, communication, cost
- The provision of a value for money service: benefit and cost
- The availability of informed personnel
- Flexibility: flexible to the user’s needs
Impacts of integrating subsystems
- JIT manufacturing: close links between production scheduling and demand forecasts, closer communication with suppliers and customers
- Kaizen costing: cross-functional communication will be important
- TQM: require clearer reporting of quality costs to assist in the on-going motivation of staff
Enterprise Resource Planning Systems (ERPS)
- Software systems designed to support and automate the business processes
- Handle many aspects of operations including manufacturing, distribution, inventory, invoicing and accounting
- Operate throughout the whole organisation and across functions, integrated into one system
- Result in lower costs and lower investment required in assets
The database management system
A complex software system that organises the storage of data in the database in the most appropriate way to facilitate its storage, retrieval and use in different applications
A data warehouse
Contains data from a range of internal (eg sales order processing system, nominal ledger) and external sources
Data mining software
looks for hidden patterns and relationships in large pools of data
Loyalty card system help improve the performance
- Collect data from customers’ purchases and store it for data mining purposes in a data warehouse
- UNDERSTAND customers better and so improve their LOYALTY to the business by focusing offers on those things which customers ẸNOY => enhance the BRAND, sell greater VOLUMES
- allow data mining for RELATIONSHIPS: links between price offers and volumes sold; products which are often bought together; seasonality of product purchases
- be cost savings by more EFFICIENT ADVERTISING: profile customers and identify their individual preferences => targeted to groups of customers using products which they commonly buy
- Analysis where the least profitable NON-ESSENTIAL products are identified and can BE CUT from the product range.
Warehouse information system (WIS) is effective in reducing waste and adding value
- Incorrect information in the WIS wastes time by needing teams to investigate the discrepancies
- Staff will waste time looking for items stored in the wrong locations
- cyclical inventory counts in order to correct the information held in the WIS. This is wasteful activity which does not add value to customers
- barcodes or radio frequency identifiers (RFIDs) automatically read into the WIS reduce the time taken to manually input the data and improve its accuracy.
- Reduce Time delays
- Eliminate Complex presentation of information
The application of each of the 5Ss following the warehouse reorganisation
- Structurise: introducing order where possible, for example, by ensuring that items in the warehouse are arranged so that they are easy to find
- Systemise: organising items so that they are easy to use. At NJN, this means being able to accurately pick the correct items in the shortest possible time
- Sanitise: be tidy and avoid clutter. This helps make things easy to find, allows easy access of staff around the warehouse, and helps make a safe working environment.
- Standardise: finding the best way of undertaking a process or task, and applying it consistently
- Self-discipline: sustaining the other Ss by motivating employees.
The potential impact of Big Data for information system
Big Data refers to the VERY LARGE amounts of data which are now available through the increased USE OF TECHNOLOGY and can be used to develop PREDICTIVE information about human (customer and supplier) BEHAVIOUR.
Big Data: volume, velocity and variety.
- The large volume: the details of all products purchased, the time, amount and method of payment used => system hardware to store and retrieve it.
- The velocity of Big Data refers to the short timescales for information developed to affect decisions => The software must be present to allow the kind of data mining and predictive analysis required to perform these tasks
- The variety of types of information collected => these require different responses from the information recording and processing systems.
