Manufacturing System

A&A Toy Manufacturing Company

Introduction

Observed that the flow of information and logistics management between the client A&A Toy Manufacturing Company and its partners are not yet optimal, it is decided to recommend some information software to the client. As the company still adopting manual accounting system, it caused messy collection of financial and accounting data and human errors. The above problems would be burdens that affect managers’ decision making. In the hope of solving these problems an Accounting Information System (AIS) would be recommend to A&A Toy Manufacturing Company.

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The client has few employees, so it does not hold a well-structured system to management the employees. The following problems were observed: incomplete labor record, overlapped job duties and difficulties in calculating MPF. To improve human resource management of the client, a Human Resources Management System (HRIS) would be recommended. As the company is not using a well Logistic Information System (LIS), the schedule of importing raw materials is messy; communication with customers is also poor. It is decided to recommend a Logistic Information System to tackle the problems stated above.

The lack of Manufacturing Information System (MFIS) created difficulties like volume of inventory has not clearly stated and a scheduled operation is unable to run. A manufacturing information system can hopefully solve the difficulties. It is going to recommend Accounting Information System (AIS), Human Resources Management System (HRIS), Logistic Information System (LIS) and Manufacturing Information System (MFIS) for A&A Toy Manufacturing Company to improve their daily operation. Methods used to tackle the project Firstly, we drafted a project outline by brainstorming.

Secondly, we discussed on the type of product that the manufacturing company produced. Thirdly, according to the nature of toy manufacturing company, we picked 4 information systems which benefit for the operation of the business. Based on the toy manufacturing company, we have to state what problems that a toy manufacturing company always faced. Lastly, we have to find the information on the selected 4 information systems that helps to tackle the above problems. In the process of doing the project, we faced a lot of difficulties. Then we sought help from our lecturer. So, the project can be finished on time.

Our group found a lot of relevant information on the Internet, especially from wiki. Abundant of information are provided to be reference for our project.

Logistic Information System (LIS)

The logistics Information System is the system managing and controlling information handling processes optimally with respect to flow time and capacity, storage, distribution and presentation in such a way that it contributes to company results in concurrence with the costs of capturing like creation, searching and maintenance. The Logistics Information System is made up of the following information systems:

• Sales Information System Purchasing Information System
• Inventory Controlling
• Shop Floor Information System
• Plant Maintenance Information System
• Quality Management Information System Function of Logistic Information System (LIS)
• Correct information product at the accurate point of time
• Correct format / quality
• Create planning data
• Provide an easy-to-use planning functions to support forecasting function
• Plan, control, and monitor business events at different stages in the decision-making process
• Flexible tools for collecting, aggregating and analyzing data from the operative applications

Situation:

A&A Toy Manufacturing Company has faced several problems nowadays. It has a poor management in logistic. First, the schedule of importing raw materials is messy. The company does not have a well-organized to manage the inventory stock. It is time-consuming and inefficient for the production line to spend large amount of time in making phone calls to confirm the arriving times of the raw materials. The arriving time is unclear and inaccurate. It is difficult for the company to have an accurate schedule to finish output in production stage under this situation.

Secondly, the company does not have well-communicate with customers. They have not set up an accurate date and time to deliver finish goods to customers. It may have to delay or reschedule in the transaction. Therefore, customers always ask about this. It is ineffective and increases the cost to communicate with them. Overall, the logistic management of planning, organization and control of goods and material in A&A Toy Manufacturing Company are chaotic. Logistics information system is needed to solve problem that the company has.

Application:

Under the situation of the company, Logistics information system is important for achieving the efficiency and effectiveness. First, using information technology in Logistics information systems can well connect with consumers and suppliers. Time cost is decrease by communicate via Email or websites. The date and time for the raw material arrived and deliver product are more accurate than before. It reduces the redundancy of the transaction. Second, it reduces the requirements of inventory and human resources by enabling requirements planning.

Logistics Data Warehouse is using for manage the inventory. It is clear and organizes for the company to update and group relevant data. Human resources reduce and bring effective to the company to make the decision. Third, delivery the finish goods to customers are effective by using logistics information system. The transportation of products improves because the company can plan the routes before they send the product to customers. The routes will be simplify and delivery conveniently. The transportation cost decrease.

Fourth, it helps to enlarge scales of business through logistics information system. The manufacturing company is clearer idea about storage of raw materials and finish goods, it is easily to order raw materials from suppliers or deliver finish goods to customers in a right time. They have a good management in inventory. It helps enlarge capacity of receiving order or storage.

Logistics Information Management System would be recommended. Firstly, both of the system is using graphical user interface (GUI), employees can easily pick up the new system. In case, encountered any problems both of the systems have supporting team to help the employees. The systems have a fair performance on the user-friendly aspect. Secondly, only Customs Intelligence™ provided the mobile access function to keep check the inventories location, the predicted time of arriving. LIMS and only perform this function on computers.

Thirdly, the RFID tags, only LIMS supported RFID tags to manage the inventory that in the warehouse. With RFID technology it can easily locate the location of the stocks in the warehouse and know the quantity of the stocks. It would be helpful to the business. To conclude, LIMS is cheaper and offered RFID technology, which is a useful tool. Although it does not preform mobile access function, it is not a must to have it. Employees can also know the raw materials location and predicted arrival time from computers. It is enough to fix the messy of making phone calls all the time to know the rrival time. LIMS would be recommended as it can fix the company’s obstacles and have an RFID function which can further help the business to improve.

Accounting Information System (FIS)

Accounting Information System is a system of collection, storage and processing of financial and accounting data. An accounting Information system is a computer-based method. The resulting financial reports are useful for the internal management and external parties such as investor. It benefits the management to make decision.

Functions of Financial Information System (FIS)

• Collects relevant financial and accounting data
• Stores the financial and accounting data
• Transfers the financial and accounting data into information, such as financial reports
• Provides information to financial executives
• Provides timely financial information

Situation

After working with different functional units of A&A Toy Manufacturing Company for a while, I have observed that the company still adopting manual accounting system. This creates abundant of problems. Firstly, manual accounting system leads to the messy collection of financial and accounting data from different departments.

With lots of missing data and the mistakes made by the accountants, it produces incomplete and inaccurate financial reports to the management. Secondly, manual accounting system leads to the wasting time in processing the data into information. After collection of data, the accountants have to record those transactions in to ledger by hand. It is really time consuming. Some of the final financial reports may be out of dated for decision making. Thirdly, the management make decision depends heavily on the financial reports produced by the accountants.

As the incomplete and inaccurate provided to management, the management will make a wrong decision. To conclude, manual accounting system produces incomplete, inaccurate and out of dated financial reports. The process of processing the financial and accounting data into information is messy and time consuming.

Application

Applying computerize accounting information system can help to improve the financial operation of the company. It brings several advantages to the company. Firstly, computerize accounting information system is automate and streamline reporting. The accountants just have to input the necessary data into the software.

It will generate those requested accurate financial reports automatically by the accountants. Secondly, computerize accounting information system can generate financial reports automatically. So it is less time consuming. The accountants no need to record each transaction. The financial reports must be timely as the computerize system can generate reports in fast rate. Thirdly, computerize accounting information system can generate timely, accurate, relevant, integrated financial. It can avoid human mistakes. Therefore, the management can make the correct decision for the business.

Fourthly, computerize accounting information system can store the past data and reports. So the data and reports will be more organized and tidy. The probability of losing data will become low. To conclude, computerize accounting information system benefits the operation of business. It is less time consuming in generating timely, accurate, relevant, integrated financial reports in a short period. So, the financial and accounting data can be more organized and tidy. It monitors the cash flow closely in the company. Also, those qualified reports can truly reflect the profitability and liquidity of the company.

The management can make the best decision. Intuit QuickBooks would be recommended. Firstly, as A&A Toy Manufacturing Company is using manual accounting system, a user-friendly system is needed for employees start to pick up. Intuit QuickBooks is more user-friendly than FrontAccounting as it uses graphical user interface (GUI). Employees can get used to the new system soon. Moreover, if the employees encounter any problem, they can seek help from the Intuit hotline. While FrontAccounting just provided some common Q&A sections on the web, it is not specific even cannot help the employee. It would be a waste of human resource.

Thirdly, as the managers or the owners may need to preform decision making outside the office, it would be better to have mobile accessing function for their convenience. Intuit QuickBooks provided this function while FrontAccounting does not. Although extra charges are needed for this function, managers could still have the right to consider use it or not. Fourthly, employees may need to access to the same document at one time, Intuit QuickBooks can support multiple users to work on the same time. It would be more convenient for the employee.

Time would be wasted if the employees need to do the job one by one. Fifthly, both of the software have updating to introduce new functions of fix some bugs. They have fair performance on this criterion. Sixthly, FrontAccounting is free of charge, while Intuit QuickBooks cost almost USD$200, it is expensive to the A&A Toy Manufacturing Company. However good AIS could help the company a lot in saving cost and present accurate information for decision making purpose. As, the performance of Intuit QuickBooks is better than FrontAccounting and the cost is for permanent use, thus it is still worthy.

To conclude, Intuit QuickBooks would be recommended to A&A Toy Manufacturing Company. Manufacturing Information System (MFIS) Manufacturing Information System is a computer-based system that works in conjunction with other functional information systems to support the firm’s management in solving problems that relate to manufacturing the firm’s products. Manufacturing information provide services to support the manufacturing function, such as the inventory control and order processing for the company. The company may benefit by reducing the manufacturing costs, increasing products quality, and improving inventory decisions.

Functions of Manufacturing Information System

• Manages manufacturing resources
• Enhances the availability of information
• Collects and organizes manufacturing quality data in a straight-forward manner
• Support inventory decision-making

Situation

After working with different functional units of A&A Toy Manufacturing Company, our team found that the company was operating with poor information and logistics management. Firstly, without a suitable manufacturing information system, the volume of inventory has not clearly stated during the daily operation.

The staffs have to use extra time and manpower to check-up the inventory stock. In case, the staffs of production lines have to check that regularly, this may lower the efficiency since it wasted a lot of company’s resources. Secondly, the company cannot run a scheduled operation since the delivery of raw materials is not on-time. Moreover, the company does not have any concept on managing the manufacturing resources; as a result, the late delivery of raw materials may lead to poor shipment arrangement and customers-relation.

Also, the above actions may delay the manufacturing processing, and lower the effectiveness.

Application

For the suitable manufacturing information system used by the A&A Toy Manufacturing Company, it may turns into conceptual and strategic tool for competitive advantage. Firstly, a manufacturing information system may help in organizing to resources’ data, such as the inventory stock. The system may help the company to keep track on the resources’ states and adjust the internal settings automatically. The usage of the report and control system of manufacturing information system is sophisticated.

These kind of high-tech system can reduce the manpower wasted and duplicated use of resources; it may achieves maximum efficiency with minimum error. Secondly, the manufacturing information system includes managing the raw materials needed to be used. A good manufacturing information system can help in arranging the delivery of stocks and the processing tasks. Thus, the system may enhances the effectiveness in terms of ensure to do the processing tasks on-schedule and use the materials with high attainment.

Manufacturing Information System (Erp)

Software offers auto Production Planning & Purchase Order prepared based on delivery date while considering available raw and finished stocks, it can help to reduce the manpower to check-up the inventory stocks. Besides, it also can help to enhance their shipment arrangement and customers-relation. Manufacturing Information System (Erp) Software also offers product and final goods inspection, to help A&A to control the quality of the raw and finished stocks.

Human Resource Information System (HRIS)

Human Resource Information System enables users to perform standard reporting from all Human Resource areas and process personal information, it provided information that helps decision makers define their own report quickly and efficiently.

Functions of Human Resource Information System

• Manage all employee information * Report and analysis of employee information
• Developing online data bases of employee information
• Benefits administration (enrollment, status changes, personal information updating)
• Developing online searchable data bases of applicant resumes
• Training record maintenance

Situation

A&A Toy Manufacturing Company with the small scale of operation and few of employees, all the information of labor only recorded by the application form individually so there is no complete labor record. This policy caused different management problems of the company: Firstly, without complete labor record, it is difficult for the company to specify labor’s strength and abilities. As a result, the supervisors cannot allocate the most suitable workers to carry out specific job duties. Secondly, as the company didn’t clearly give any instructions to labor that they have to do of their positions. So, their job duties may be overlapped.

For instance, both salespersons and customer services need to answer lots of queries from their customers regarding the shipment arrangement, delivery status as well as warranty issues of their finished products. It will lower the efficiency of division of labor. Thirdly, with incomplete labor record, the company cannot recruit qualified candidates to satisfy the need of labor force in different departments. Fourthly, the calculation of Mandatory Provident Fund Schemes (MPF) of labor will be messy, the company cannot certainly calculate accumulate mandatory provident fund of each labor without complete labor record.

Application of Human Resource Information System

Firstly, Human Resource Information System helps the company to manage and record all employees’ information, Manager can clearly know all the information of labor including their strength, abilities and training record from the Human Resource Information System. Secondly, in order to give instructions to labor, they can have a clearer idea what to do of their positions; manager can offer different jobs according to their strength and abilities. Thus, it can avoid the problem of overlapping job duties. Thirdly, company can develop online database of employees’ information and nline searchable database of applicant resumes, so that the manager can review all the records easily. With online searchable database of applicant resumes, the company can easily search for the qualified candidates from received application form to satisfy the shortage of labor force in different departments. Fourthly, Human Resource Information System can be reconfigured to suit for different kinds of payroll, the system can record their payroll automatically with flexible payroll adjustment, the company can accurately calculate accumulate Mandatory Provident Fund of labor. As a small-sized company, cost is one of the main concerns. To choose the proper system for the human resource information system, we prefer the Microsoft Office Access. Firstly, BambooHR costs monthly and the price is based on the number of labors.

As a company with the small scale of operation, although A&A Toy Manufacturing Company only has a few of employees, monthly cost is a liability to them. MS Access only costs $139. 99 and for permanent use, it will reduce the burden of the company on the system. Secondly, MS Access and BambooHR are fair in the user-friendly section, but BambooHR involves some tools for the users to use easily, but they are only helpful in editing and filling the data in it after setting up the database. MS Access involves the graphical user interfaces (GUI), it can help the managers to set up the database of the employees easily.

Besides, A&A is the company with the small scale of operation and few of employees, it may not have the senior programmers, MS Access offers many features for junior programmers, it is easy to use for A&A. Lastly, BambooHR and MS Access have fair performance on the update frequency and the security, two of these systems constantly update to meet customers’ needs and make the system more efficiency. Because of all the people are concerned about the security of the information systems, include the HRIS, two of these systems have a fair performance in security.

For example, they use the firewall to protect the information in the database, and use some software to protect the information when they are in the backup process, such as SSL. To conclude, we suggest A&A Toy Manufacturing Company to use Microsoft Office Access as their human resource information system.

Conclusion

To conclude, we suggested four types of information system for A&A Toy Manufacturing Company to use and help them to improve their existing state. We recommended Logistic Information System (LIS), Accounting Information System (AIS), Human Resource Information System (HRIS) and Manufacturing Information System(MFIS).

Firstly, for Logistic Information System, we recommended A&A to use Logistics Information Management System (LIMS) to help to solve the exist problems such as reduces the requirements of inventory and human resources. LIMS supported RFID tags that can easily locate the location of the stocks in the warehouse and know the quantity of the stocks. Employees can also know the raw materials location and predicted arrival time from computers, it can help to decrease the human resource needed of the inventory management and making calls. Secondly, for Accounting Information System, we suggested Intuit QuickBooks.

It uses graphical user interface (GUI) to help the employees to pick up the system easily. Besides, Intuit QuickBooks can support multiple users to work on the same time, it would be more convenient for the employees to access to the same document at one time. Use computerize accounting information system instead of manual accounting system can reduce the probabilities of error and help the managers to make the best decisions to the company. Thirdly, for Human Resource Information System, we recommended Microsoft Office Access. Access only costs $139. 9 and for permanent use, it will reduce the burden of the company on the system. It also involves the graphical user interfaces (GUI), it can help the managers to set up the database of the employees easily. It can help the manager to manage the data of employees more convenient and efficiency. The managers can clearly know all the strength, abilities and training record of labor from the system and avoid the problem of overlapping job duties. Fourthly, for the manufacturing information system, we recommended Manufacturing Information System (Erp) Software. A&A can use this software to solve their problem.

It offers auto Production Planning & Purchase Order prepared, it helps A&A to reduce the manpower to check-up the inventory stocks and enhance their shipment arrangement and enhance customers-relation. In addition, it also provides the product and final goods inspection, it can help the managers to control the quality of the raw and finished stocks. The above information systems with software can help to solve the difficulties. It helps to enhance the management in different departments to be optimal. Our team believes that those software can enhance the profitability in a foreseeable future.

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