Problem Analysis

Inventory System

Sun Chemical implemented software from SAP. Sun Chemical engaged global management consulting firm, Accenture, to plan the SAP implementation. The MIS function that Sun Chemical uses to keep track of their inventory is SAP R3 Version 6. It keeps track of material balances, re-order points, and provides management reports in order to run the manufacturing process in an efficient manner. While not everyone knows how to use it, this system is used by the 2,700 employees that work in the management, procurement, and manufacturing departments. It has also reduced staffing in procurement and logistics. Sun Chemical has been installing SAP over the last four years, and there are yearly updates of the software. When they launched plans to implement SAP four years ago, Sun Chemical looked to BMC CONTROL-M to provide the enterprise batch scheduling tool that would make the new system responsive to business' needs. "Using the BMC software, Sun Chemical has automated its day-to-day batch processes, which includes 600 jobs a day. The solution has reduced employee costs and standardized systems across 60 locations in 15 countries to maintain consistent and seamless operations. Without BMC, they would need additional employees and larger budgets to achieve the same results that Sun Chemical enjoys today (Reference 3)." Sun Chemical is vertically integrated to use their own pigments to create their own ink.



Hardware


The concept of hardware includes all physical devices and materials used in information processing. HP is the computer system that is used for the hardware of the inventory system, which consists of a database server, web server, and application server. The HP hardware is based on the SAP software. The hardware possesses all the storage space and the memory and therefore is used when doing inventory. It is upgraded when a new release or new software comes out.


Software


Software includes all sets of information processing instructions. The software database used is Microsoft SQL. SAP R3 Version 6 is the inventory system used. BMC CONTROL-M is the software implemented to help with SAP. 
BMC solutions enables Sun Chemical team members to interact with and respond to each other (Reference 4). When a customer places an order, it is entered directly into the SAP system. The BMC CONTROL-M solution checks inventory and inputs shipping and invoicing, delivering the product to the location closest to the customer. Sun Chemical's inventory system, SAP R3 Version 6, is capable of doing calculations by itself, such as material requirement planning. It knows how much inventory is on hand and how much is needed to order when they are running low. To some extent, it is able to share information with other companies. It generates requisitions that turn into purchase orders that are transmitted to the suppliers. The systems can also handle inter-divisional orders.



Data

Data constitutes a valuable organization resource. It can take many forms organized into databases that hold processed and organized data or knowledge bases that hold knowledge in a variety of forms, such as facts, rules, and examples about successful business practices. The data that is entered and organized into the SAP system is inventory, inventory balances, how the ink is made and what components it is made of, purchase orders, and physical inventory for audit purposes. It also keeps track of the order quantities.




Procedures

Procedures are the policies that govern the operation of a computer system. All employees who use the system are given procedure manuals in their line of work. The manuals include information about that transaction that is being used and the type of information that needs to be entered into the system.

People


People are the most influential component of the success or failure of the information system. Approximately 2,700 employees use this inventory system, in departments such as management, procurement, and manufacturing. However, not all employees know how it works. The employees that do use the system need to possess certain skills, such as good analytical skills, problem solving, and standard computer skills to function the buttons.

No comments:

Post a Comment