brown manfg. co.(mis)

8/8/2019 brown manfg. co.(MIS)

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By:

Navdeep Kanwar

Neha GuptaRohan Sharma

Shruti Garg

Umesh Gupta


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Overview

Primary focus:To enable Companys Procurement department, whichformed the basis of automatic calculation of reorder points,

economical order quantities and quantity discountanalysis.

Assumption:

Although the session was quite technical in nature, Mr.Foster detected an enthusiastic response from severalbuyers.

.


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Contd.

Disturbing element:Although Mr. Paul tried but he was not able to make

contact with A.L.Metcalfe, Director of Purchasing.

Post Installation:After three months from its installation an audit was

conducted which ensured that only two of the ten buyerswere utilizing the Application. Majority had reverted backto the old method of ordering but were comparing theirdecisions with the computers suggested ordering strategy


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Q 1. How did Paul Foster handle the situation ? What should he have

done differently ?

A 1. Being a system analyst, Paul Fosters primary focus was to

enable companys procurement department to base ordering facilities

on a smoothing type of forecasting.

For required forecasting system he performed these steps :

Analysis :

Formed basis such as automatic calculation of reorder

points, economic order quantities and quantity discountanalysis.


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Synthesis :

Incorporated several new ideas in forecasting and

ordering algorithms.

Implementation :

Conducted seminars and briefing sessions.

Conversion seminars were held.

Post installation audit was done.


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Q. What should he have done differently ?

A. In application development cycle one part is ANALYSISPHASE. Paul Foster should have worked upon feasibility

part.

Feasibility study

Determine application risk

Analysis costs versus benefits

Establish study objectives


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Ans) Comparison between the operating culture of BrownCo. and Fosters System

Fosters System Required the centralization of operations.

Difficult to comprehend because of the nuancesincorporated.

Brown Manufacturing CompanyUse of printouts to post and update their own records.

Use of same old techniques as used in the past.


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Contd.

y Positivenote

Most buyers use the new system for just comparing it with

the results of the past methods.But still using the technique they knew.

Usage of old methods because the technique was not wellconceived by the employees in the brown Manufacturing

Dept.


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Q.3) How do you rate Metcalfesroleinthesituation? Ishetypical ofpurchasing director.

Role of purchasing director

Direct the department, to ensure that it is adequatelystaffed and managed to achieve results.

Work with buyers to identify future sourcing opportunities.

y Train new buyers and buyer trainees on Company systems,

policies and procedures.y Daily review of product movement forecasts based on

seasonality, market trends, and probability of anticipatedsales.


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Contd.

Metcalfes role A very important person, responsible to make final

decision related to procurement of raw material.

Is he typical of purchasing manager?

No, being a highest authority in purchase department,he is obliged to be there. No matter, how road and tiedhe is. This is his job and he is responsible to take careof it. He ought to be there in the seminar or meet atleast once with Paul Foster to understand if the systemdeveloped by Foster, actually suits to his organisationor not.


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Ques 4: Whatshould Foster do now?

1. TechnologyTransfer

Transfer of new technology into the companys

culture.

System was very complicated and technical in

nature and hence difficult to comprehend.

Foster should make it more User Friendly

2. Motivating and influencing the Buyers

Change the mind set of the people

Proper Training and Scheduling should be done


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Contd.

3. Intimate Cooperation Between System User and SystemDeveloper.

Proper synchronization between MIS department and Purchasingdepartment

4. Application Business Plan

To provide a vehicle for stating the pertinent agreements and

rationale under which the activity must proceed

5. Steering Committee


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brown manfg. co.(mis)

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