Why do changes to one type of system

Assignment Help Operation Management

Reference no: EM131896416

Pico Electronics Develops TPS to Support Rapid-Fire Transactions

Malaysian electronic components distributor Pico Electronics had a problem that many mid-sized businesses would like to have: orders were coming in too quickly; they had to process an order every few minutes.

Pico didn't mind its order volume, but it was having difficulty keeping an accurate picture of current inventory. The company wanted to avoid a scenario in which three salespeople are accepting orders for the same item with only enough inventory to support two of the orders.

In 2006, Pico Electronics went shopping for a new order processing system that would provide real-time visibility to avoid such problems. Pico's procurement division needed to see what was being ordered as soon as it was ordered. The division could then purchase the required materials as necessary to fulfil customers' orders on time.

The company wanted to be more nimble in its ability to stay ahead of the competition. The project evaluation team, headed by finance manager Sharyne Tee, set several primary goals for the new system.

The new system should: Go beyond order processing to include all relevant business process-related data; generate reports to give the management an accurate snapshot of the company's performance in real time; accurately track inventory and costs in real time so that they could anticipate demand and have reasonable inventory reserves. Allow for fast access to both overseas customer and vendor histories; provide a stable and fast connection to link their overseas offices in China, Hong Kong, Malaysia, and Thailand.

Pico decided on SAP Business One software as a platform for the new TPS and ERP system. Since the implementation, SAP Business One has allowed Pico management to view current inventory in the warehouse.

The software also lets them analyze the performance of the separate divisions in the company. Because this software automates accounting-related data collection, Pico can better handle its accounts receivable, which improves cash flow.

Pico purchased a Jobshop add-on module designed by Sabre that allows the company to add more functionality as it grows. The module manages the entire production environment, from bill of material to shop floor control. With the Jobshop module, Pico can monitor all planning and production control activities and integrate sales, purchasing, inventory and financial activities.

This system development project at Pico Electronics illustrates how improvements to one system often involve changes to many systems. It would be unwise to examine changes to one system, such as a TPS or CRM, without evaluating their effect on related systems, such as ERP.

Questions

1. Why do changes to one type of system, such as a TPS, affect other systems in an enterprise?

2. What additional challenges do you think Pico faced in extending real-time visibility to its overseas offices?

Reference no: EM131896416

Questions Cloud

How is the philosophy of information sharing developed : Does this start with individuals in various teams or does this start with organizational leaders? What are your thoughts?

How much profit will the company make : Kratzen Company sells a product at $50 per unit that has unit variable costs of $30. How much profit will the company make if it sells 4,000 units?

Prepare the necessary entry under cost-of-goods-sold method : Kumar Inc. uses a perpetual inventory system. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method (b) Loss method.

Journalize and post the july transactions : Journalize and post the July transactions. Use page J1 for the journal. Prepare a trial balance at July 31 on a worksheet.

Why do changes to one type of system : What additional challenges do you think Pico faced in extending real-time visibility to its overseas offices?

Discuss the unresolved remuneration and pay issues : If you are the hospitAl administrator, discuss at least three (3) main interventions to each of the 6 problems?

Evaluate companys product lines using bcgs business : Discuss some tactics that the company can use to help move product lines into a different box and/or maintain their current position in the matrix.

What is the minimum price at which the company should sell : What is the minimum price at which the company should sell the AC2 package that would be more profitable for the company as a whole

Describe a current event that reinforces the situation : Explain why you believe this situation still exists today and how it could effectively be addressed in the workplace.

User Account

All Pages