MAF 635 STRATEGIC MANAGEMENT

ACCOUNTING

PREPARED BY:NAJATUL HUSNA BINTI MOHD NASIR 2013406458NUR AMALINA BINTI ROMLI 2013432856NURAZURIN BINTI SHAHLI 2013225844

Strategic manufacturing

planning

E-commerce

MRP

MRP II

ERPCAD

CAM

PARETO ANALYSIS

COURSE OUTLINE

E-COMMERCE

The exchange of goods and services

for money

Buying

distributingSelling

• Involves supply chain management, e-marketing, online marketing, EDI

• Electronic Technology• Internet• Extranet/intranet• Protocols

E-Commerce Mechanism

• Enables new ways of creating, delivering and capturing value to customers.• Exchange information, content, agreements, and

services among parties that are connected to through the Internet.

• Transformation of economic activity into digital media• Availability• Convenience

HOW DOES IT WORKS?

KEY DRIVERS

Technological Factors

Political Factors

Social Factors Economic Factors

Categories of E-Commerce

B2B B2C

C2B C2C

Business

Business Consumers

Consumers

And selling to...

Business originating from...

Business to Business (B2B) refers to the full spectrum of e-commerce that can occur between two organizations.

This includes purchasing and procurement, supplier management, inventory management, channel management, sales activities, payment management &service and support.

Examples: FreeMarkets, Dell and General Electric Business to Consumer (B2C) refers to exchanges between

business and consumers, activities tracked are consumer search, frequently asked questions and service and support.

Examples: Amazon, Yahoo and Charles Schwab & Co

Peer to Peer (C2C) exchanges involve transactions between and among consumers. These can include third party involvement, as in the case of the auction website Ebay.

Examples: Owners.com, Craiglist, Monster

Consumer to Business (C2B) involves when consumers band together to present themselves as a buyer in group.

Example: www.planetfeedback.com

BENEFITS & LIMITATION

BENEFITSOrg Consumer Society

Acc to international marketplace

24/7 access Enable more flexible working place

Operation cost savings

More choices Connects people

Mass Communication

Improve delivery process

Facilitate delivery of public services

Enable to reduce Inventories

An environment competition

LIMITATIONSOrg Consumer Society

Insufficient system security

Cost to access to the internet

Breakdown in human interaction

Facing increasing competition

Lack of security of the data

Social division

Rapid evolving of technology

Physical contact are replaced by technology process

MRP

•Material Requirements Planning • is a production planning and inventory control system

used to manage manufacturing processes. • Aim : to achieve sufficient level of inventory

ADVANTAGES DISADVANTAGESReduced inventory with fewer (none) shortages

Rely on accurate inputs

Reduced Traffic Cost Requires a lot of time

Reduced Obsolescence Costly & consuming

Reduced overtimeEnhance customer serviceReduced purchasing Cost (Saves Cost)

OBJECTIVES

Ensure materials are available for production and products are

available for delivery to customers.

Maintain the lowest possible material and product levels in

store

Plan manufacturing activities, delivery schedules and purchasing

activities.

FUNCTIONS

The basic function of MRP system includes inventory control, bill of material processing and elementary scheduling.

MRP helps organizations to maintain low inventory levels. It is used to plan manufacturing, purchasing and delivering activities

MRP II•Manufacturing Resources Planning II

Involve the other function of organization in manufacturing production• Eg : Human relations, finance, marketing etc. • It makes the organization to concentrate on the better

machine capacity planning & labour schedullingADVANTAGES DISADVANTAGES

Better inventories control Poor quality informationBetter planning & scheduling its operation Improve organization’s cash flowProvide profitability info timely & valid

DIFFERENCES

MRP • Purpose:• To help the managers in

determine the quantity & timing of raw materials to purchase

• Concern with material

MRP II• Purpose:• To help the managers

with other parts of the manufacturing process.

• Integration of all aspect of manufacturing production

ERP WHAT?

●is a type of financial management and accounting software

●integrates information concerning financial, manufacturing, sales, service, customer relations management, and other business activities

●impact revenue or liabilities into a single package.

WHY?

NON-INTEGRATED SYSTEM

INTEGRATED SYSTEM

●An attractive solution for many large companies

● Act as a planning company backbone for a company’s core business process

●Able to share the data from these processes with other corporate software system

● Early systems tend to be large, complicated, and expensive.

●Tend to create changes in many business process.

COMPUTER-AIDED DESIGN (CAD)

/ COMPUTER-AIDED

MANUFACTURING (CAM)

Specialized form of graphic

software

Provides interactive graphic

facilities

Assist engineering in:

* product and tool planning

* design, drafting

* process planning

* design revision

* facilities planning Use of computer systems and

software

perform function to manufacturing

engineering:

~ process planning

~ numerical control part

programming

to create a faster production

process and components and

tooling

CAD

CAM

Do you know?

Some computer

systems perform both

CAD/CAM, so term of

CAD/CAM is used to

Indicate the integration of

the two into one system.

How Does It Work?

ARCHITECTURE CAD software is used to design

2D floor plan and 3D schematic

of houses, office building and

other commercial structures.

ARCHITECTURE CAD software is used to design

2D floor plan and 3D schematic

of houses, office building and

other commercial structures.

AUTOMOTIVE CAD will help to create

prototypes of one body styles

and to design auto

components.

AUTOMOTIVE CAD will help to create

prototypes of one body styles

and to design auto

components.

FASHION The clothing manufactures can

determine the most efficient

cut of fabrics and can adjust

the scale of the pattern for

different size.

FASHION The clothing manufactures can

determine the most efficient

cut of fabrics and can adjust

the scale of the pattern for

different size.

Process of CAD/CAM

A designer use

CAD software to

make an exact

model of the

object that will

be manufactured

The design

specification are

downloaded to the

computer (CAM

computer) that

controls the

manufacturing

machine

The computer

controls the

machine which

makes the

product

Benefits & Limitations

> the correction can be

made

easily

> time and cost saving

> increased productivity

and

quality

> can be used to

facilitate

mass customization

> High cost

> software complexity

Branch of

science and

engineering

dealing with

the study of

robots

Involved with

robot’s design,

manufacture,

application,

and structural

disposition

Related to

electronics,

mechanics,

and software

The repetitive

tasks are

delegated to

machines

DEFINITION

PRO CONS

Incorporating industrial robots

does not guarantee results

in ROI

Safety of humans in danger with

presence of robots

High cost

Lack in expertise in operation of

robots

Increase workplace safety

Financial savings

High quality of product

More efficient in manufacturing

PARETO ANALYSIS

Pareto Principles

20% 80%

causes

work

results

When to use it?

When analyzing data about the frequency of problems

or causes in a process.

When there are many problems or causes and you want to focus on the

most significant.

Step 1

• Identify and List ProblemsStep 2

• Identify the Root Cause of Each ProblemStep 3

• Score ProblemsStep 4

• Group Problems Together By Root CauseStep 5

• Add up the Scores for Each GroupStep 6

• Take Action

How to use Pareto Analysis

Advantages of Pareto Analysis

Organizational efficiency

Improved decision making

Enhanced problem –

solving skills

Disadvantages of Pareto Analysis

Qualitative data VS

quantitative data

Multiple Pareto chart

maybe needed

Easy to make but difficult to troubleshoot

Conclusion

Pareto Analysis is a simple technique for prioritizing problem-solving work so

that the first piece of work you do resolved the greatest

number of problems.