Report on-

“Management Information System of Rancon Autos

Limited”

ITS 510, GROUP - 09

Submitted to:
Dr. M. Jahangir Alam
BRAC Business School
BRAC University
66 Mahakhali, Dhaka-1207

Date of Submission: August 6, 2018

 Report on-
“Management Information System of Rancon Autos
Limited”

Prepared by-
Rafiul Riasat Iqbal 17364035

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 Table of Contents
Executive Summary ................................................................................................................... 6

Introduction to the Organization ................................................................................................ 7

Operations of the Business......................................................................................................... 8

Overview of the Company MIS ................................................................................................. 8

Indication about IFS (Industrial and Financial System): ....................................................... 9

Overall Functions of Rancon Autos Limited Driven by MIS .................................................. 10

Finance and Accounts Operations ....................................................................................... 10

EMI Calculation using IFS ........................................................................................................... 11
Fixed Asset & Depreciation Calculation using IFS ...................................................................... 12
Cash Flow and Financial Statement Generated by IFS ................................................................. 12
Sales and Marketing Operations .......................................................................................... 13
Procedure of Sales......................................................................................................................... 14
Methods of Sales ........................................................................................................................... 15
Process of Sales Completion ......................................................................................................... 15
After Sales Support ....................................................................................................................... 16
Human Resource Information System ................................................................................. 17
Payroll, Time & Attendance .......................................................................................................... 18
Supply Chain and Inventory Management .......................................................................... 19
Procurement and Supply Chain Operations by IFS ...................................................................... 19
Vehicle Registration Process by IFS.................................................................................... 20
Key Findings ............................................................................................................................ 22

Recommendations .................................................................................................................... 23

Conclusion ............................................................................................................................... 23

References ................................................................................................................................ 24

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 Executive Summary

The aim of this report is to find out and analyze Management Information System of Rancon
Automobile Ltd. In order to analyze the information system, few of the employees of the
organization were interviewed who showed the process how the entire system works in
different subdivisions. It has been figured out that MIS of Rancon Automobile Ltd. has been
very systematic. Different subsystems such as Finance, Accounts, Marketing, Supply Chain,
Human Resources and Procurement, all are being delivered with the input of Management
Information System of the organization. Moreover, Transaction Processing System (TPS) of
the organization is also found to be very smooth as there are multiple subdivisions work
simultaneously. However, the report also includes some of the areas where changes can be
made in order to make the Information System more efficient and productive.

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 Introduction to the Organization
Rancon Autos Limited (RAL) which is a concern of Rangs Group is the sole distributor of
India’s most renowned vehicle manufacturer MAHINDRA and MAHINDRA vehicles in
Bangladesh. RAL has begun their journey in the year of 2013 and broadened from the
exchanging business to sole distributorship of renowned brands like MAHINDRA and
MAHINDRA. RAL has remained consistent with giving clients the plain best in item choice
and administrations. This business center point ceaselessly puts resources into modernizing its
administration framework and plans particular in-house preparing programs focused towards
enhancing the inventive capacities of its customers. RAL is sure that the trust and generosity
of its clients, the huge experience of its administration, and the commitment of its work
constrain, will empower the association to lead Bangladesh towards a prosperous future.

The company has prevailing with regards to making assorted variety its quality. However,
entrepreneurial nature of the directors drove the organization to open up branches the whole
way across the nation, in spite of the fact that management of Rangs Group have been working
together in Bangladesh since over four decades. Therefore, the company has been always
analyzing the market to discover new items and administrations zones to wind up engaged with,
and endeavor to be imaginative by following new thoughts, which are developing in the global
market. The organization is continually searching for new standards and have been very
effective in our undertaking to recognize and build up associations around the globe.2015 was
a key year for Rangs as it has accomplished the market pioneer position in transports business
with 36% piece of the overall industry. A forward since quite a while ago possessed and
guidelines by TATA. The year began with enormous test because of political distress and
disturbance however unfurled to be a standout amongst the most stupendous years. Business
advanced exponentially and the organization could achieve as high as 75% piece of the overall
industry in 7T class during the year end because of government controls the whole carriage
scene was shacked and new standards of BRTA write endorsement was propelled. The
company imagined that they have lost the market and contenders have won once more. In any

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case, with the well-wishers and support of every one of our clients and government divisions
they could turn back the tables, get all the BRTA endorsements on time and end of the year
being the market pioneer.

Operations of the Business

Rancon Autos Limited (RAL) conduct their business almost every district in all over the
country. Almost all districts and sub districts they have their branches and area offices.
However, they have successfully established a strong network throughout the country.

Over the years from a trading company Rancon Autos has become a very popular name in less
than six years. Throughout this time span they have expanded their business in order to ensure
excellence in product and service to the customers. Because of its continuous diversification
the have created a new brand model as a vehicle trading company in Bangladesh. Moreover,
they are indomitable for trading and assembling of vehicles, bus body making, after sales
customer help and support center.

Overview of the Company MIS

Likewise every company who are operating their core operations through information system,
which is basically the implementation of the organization system and procedures. Every MIS
covers the three main components which are System recommends integration and complete
view, Information stands for accuracy in data processing and the Management is the ultimate
decision maker. There are some major functional subsystem of MIS;

Finance and
Accounting

Supply Human
Chain Resource
MIS(Management
Information
System)

Logistics Marketing

1.1 Major Functional Subsystem of MIS

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Indication about IFS (Industrial and Financial System):

IFS™ a globally recognized leader in developing and delivering enterprise code for;

 Enterprise Resource Planning with (ERP)

 Enterprise Asset Management (EAM) and
 Enterprise Service Management (ESM).

IFS brings customers in targeted sectors nearer to their business, helps them be a lot of agile
and allows them to benefit from amendment. IFS may be a public company (XSTO: IFS)
based in 1983 and presently has over 2,800 workers. IFS supports over one million users
worldwide from its network of native offices and over a growing scheme of partners.

1.2 IFS Interface

Moreover, IFS™ develops and delivers enterprise software for customers around the world
who manufacture and distribute goods, maintain assets, and manage service-focused
operations. The industry expertise of their people and solutions, together with commitment
to the customers, has made us a recognized leader and the most recommended supplier in
their sector. IFS team of 3,500 employees supports more than 10,000 customers worldwide
from a network of local offices and through their growing ecosystem of partners.

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 Overall Functions of Rancon Autos Limited Driven by MIS

Finance and Accounts Operations

The overall accounts and finance operations driven by the Accounting Information System
uses the same interface to collect, preserve, manage, process, recover and reports the
financial data so that the company can utilize the information for the accountants,
consultants, business analyst, managers, chief financial officers, auditors and VAT or tax
agencies.

Most of the trained accountants are operating the whole software based accounting
operations to ensure the highest level of precision in a company’s financial transactions and
record keepings. The entire flow of data within the Rancon Autos automated financial
system follow few steps mentioning below:

Primary Customer
Purchase Supplier Inventory Tax
Sales Orders Billing
Data Orders Invoices Status Information
Statements

Aging of General
EMI Cash flow
Analysis Accounts Ledger Depriciation
Calculation Analysis
Receivable Creation

Profit and Bank

Balance
Reporting Sheet
Loss Liability
Statements Positions

1.3 Accounting Process of RANCON Autos Limited.

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EMI Calculation using IFS

The software components of internal accounting information system is a computer and

server operated helps to store, recovery and process all kinds of financial data. The
industrial and financial system (IFS) has considered as full of quality, reliable and secured.
As a result, company accounts managers relying on the information the software’s outputs
to make effective decision for the company and the software is able to give high quality
information to make sound decisions for the company. As Rancon Autos offering credit
sales for most of the customers with a very low percentage of interest “EMI Calculation”
is one of the major component to have a proper track on company’s accounts receivables.

1.4 EMI Calculation Panel in IFS

Rancon Autos has a very high value of product line and usually sale customers a maximum
of 48 EMI’s and the calculation is mentioning below,

Initial Amount 1,700,000.00

DP for a Year 147,500.00
For 4 Years 590,000.00
Total Amount 2,290,000.00
EMI/Month 47,708.33
Vehicle Tracking Fees/Month 600.00
Total VTS 28,800.00

1.4 EMI Calculation for a new vehicle.

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Fixed Asset & Depreciation Calculation using IFS

Rancon Autos usually follows declining balance method for assets because most of the
assets are like computer equipment and other which lose their value in two or three years
and become obsolete. For example, if an asset that costs Tk.40, 000 and the Salvage value
of Tk.1,000 then the expense is Tk.11,700 in first year, Tk.8,190 in second year, Tk. 5,733
and so on.

1.5 Fixed Asset Depreciation & Physical Count Panel

Cash Flow and Financial Statement Generated by IFS

Like the similar company in automobile industry Rancon Autos cash flow and financial
analysis is one of the major parts of financial reporting. However, the IFS operating system
made it easier to view and analysis these major parts. But a very precise and accurate data
input is required. Moreover, Rancon Autos has successfully generated the relevant cash
flows and financial statement throughout the years in a quarterly basis and a positive cash
flow indicates the company’s liquid assets are increasing, settling the debts, paying
expenses and providing information about future cash flows and ways of avoid financial
distress. In addition, automatic generated financial statements covers a range of time and
shows the reflections about revenues, expenses and net income and relevant data for
comparison.

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Sales and Marketing Operations

Getting the proper clients within the first place depends on successful lead management and
taking advantage of the correct openings at the proper time. IFS CRM underpins Rancon Autos
deals staff with a step-by-step capability handle giving a total diagram of where the company
within the deals process. By and large sales exercises are run by two departments in Rancon
Autos, one is direct sales and other is dealer sales.

1.6 Sales Information Panel.

Dealer sales division plays a key part to deal as well as boost up the deals volume through
dealer organize for accomplishing the deals target for Rancon Autos Limited. This division
organizes compelling preparing program with respect to the items for the dealers and
merchants’ staff and organizes vehicles reasonable nearly all through the nation so that the
clients can be sought after. To outlive within the advertise it is essential to gather data with
respect to the competitors, markets and potential clients and investigation the information for
taking promoting choices. Direct sales division of Rancon Autos restricted works their
exercises through random visit to diverse educate particularly in Dhaka city and close around
Dhaka area like Gazipur, Narayangonj. They have their sales representative in different areas
like Chittagong, Sylhet, Rangpur, Bogra, Jessore, Mymensingh etc. This Division collects data
of the potential customers/institutions and visits them in like manner to seek after to be a real
buyer. They take after up the existing customer’s state of mind with respect to their items and

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justify satisfaction level. This division also accomplishes the client who comes specifically to
their corporate office and the showroom which is found at Gazipur for Mahindra.

Procedure of Sales

To discover the source of the client or to gather the data they essentially do taking after steps:

 The sales officials have to be go through ceaseless field visit, or showcase visit to
different sub areas. They physically meet the truck proprietor to the truck stand.
 The marketing group organizes a few road shows to different areas to let the individuals
know almost the item.
 After getting any orders from the customer sales representatives sends necessary
information to the Customer relationship departments with online generating sales form
with credentials and record keeping.
 Customer relationship department creates purchase order in the sales panel with
necessary information and amount and request finance department for the final
approval.

1.7 Customer Order Panel

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Methods of Sales

 Full cash sales (Cash & Higher Value)

 Hybrid policy (HB)
 Hire purchase policy (HP)

Full Cash: In terms of full cash arrangement client should pay full installment during the buy
of the vehicles. In that case they get a few cash discount from 50 thousand to 1lac.

Hybrid Approach (HB): Typically also known as semi cash. This is often essentially without
interest installment. Assume a vehicle is 18lac, he must pay 9lac in cash quickly and rest inside
one year without interest.

Hire Purchase Policy (HP): At this arrangement customer got to pay 20 percent of the total
cost, assume the cost is 18lac, so 20percent is 3, 60,000tk at the time of buy.

1.8 Purchase Order Analysis in IFS

Process of Sales Completion

From focusing on the potential buyers, bring them or pull them some way or another to
Category 1 client by taking after any deals strategies they are comfortable or intrigued in, is the
whole procedure to total the deals handle. Meanwhile they got to fill a buyer shape where all
the company arrangements have been included. They have to be taken after those rules or
acknowledge the terms and conditions. After the buy or conveyance of those vehicles, after

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sales division collects and understands all the enquiry and operational issues of that client and
recovery group collects the installment from the client. When a client concurs any of these
strategies and buys the vehicle complying the terms and conditions, add up to deals prepare is
done.

After Sales Support

1.9 Customer Support Panel in IFS

After acquiring a vehicle, after sales division begins their jobs. Essentially they make beyond
any doubt clients are happy with their vehicles. The requirements and requests of the client
must be satisfied for them to spread a positive word of mouth. It plays a critical part client
fulfillment and maintenance. It makes steadfast client. Rancon Autos have a really well reputed
and well experienced after sales department. They have mechanical engineers together with
mechanics who have practical experiences. Essentially this division guides them to introduce,
keep up or work their vehicles. As a rule they give guarantee for 70000-75000km or 1.5years
motor guarantee whichever comes to begin with. They give six free services. To begin with
three services are full free counting parts, next three administrations they as it were
charges/includes the parts cost.

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Human Resource Information System

Every day of the working life the people the company employs contribute to the execution,
development and success of the business. So it makes sound business sense to create beyond
any doubt that Rancon Autos got a human resource arrangement that has capabilities and
usefulness that gives them with the openings to prosper themselves. The control to think
differently. IFS Human Asset Arrangement completely coordinates with uncertainties
applications ERP arrangement and gives the company with all the viable capability and ease of
utilize essential to perform regular HR assignments such as cost administration, time and
participation, and enlistment with add up to certainty. But it doesn’t stop there. The solution’s
expansive usefulness too gives the company with the opportunity to actualize inventive
representative preparing activities which can empower people inside the organization to
develop.

2.0 Human Resource Management Panel in IFS

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Payroll, Time & Attendance

IFS Payroll Administration empowers the company rearrange and oversee all your payroll
procedures. Total payroll arrangements are accessible in chosen departments, and a standard
interface to third-party payroll arrangements is accessible all through the company.

IFS Time & Participation makes it less demanding for the company to manage data on the
working hours of the employees. Wage code dispersion and the calculation of flexi-time, extra
time, shift premiums, etc. are programmed and checked against the central rules. In addition,
Rancon Autos spare basic time when representative input at the same time encourages finance
and venture, support, or generation systems.

2.1 Employee Analysis, Time and Attendance Record Panel in IFS

Likewise, IFS Recruitment makes it easier for Rancon Autos to rearrange the hiring of new
employees by supporting all hiring forms from the staff demand to the final exchange of
information to the worker file.

IFS Preparing Administration gives comprehensive support for the organization with broad
inner preparing operations. It empowered the company to compile internal training necessities
and utilize them as input for arranging preparing occasions whereas naturally updating
representative records after courses have been completed.

IFS Employee Improvement made a difference that create strategic human resource plans and
forms for the company by characterizing this organization’s skill/competency prerequisites and

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mapping them to company's accessible assets. Once the prerequisites are defined and mapped,
Company be able to utilize them for enlistment, worker improvement, or a posting of obsolete
or overrepresented competencies.

Supply Chain and Inventory Management

Material management through IFS permits Rancon Autos Limited to execute differentiated,
exceedingly automated stock arranging coordinates with the demand forecast. It moreover
makes stock replenishment more agile by giving a large number of arranging techniques such
as financial arrange amount, service-level-driven security stocks and uncommon models to
handle slow-moving parts. The model for supply chain and inventory management of Rancon
Autos Limited is mentioning below;

Inventory
Supplier Procurement
Logistic

Customer Distribution Manufacturing

2.2 Supply Chain and Inventory Management Model of RANCON (Source: Website’17)

Procurement and Supply Chain Operations by IFS

IFS Procurement allowed Rancon Autos did the streamline acquirement organization and may
be an essential portion of the IFS Supply Chain planning. It makes a difference for the company
to accomplish superior estimating from providers through centralized acquiring and is well
suited for multisite companies operating within the worldwide environment.

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IFS Applications for Supply Chain Management Program in Rancon Autos underpins the
balancing act between effectiveness and responsiveness by:

 Counting the inborn functionality for mixed-mode operations. (Higher Purchase

Vehicle).
 Mixing supply modes at the same time, adjusting quickly to unused supply models as
items mature or retire.
 Moving between arrange based and order-less generation in this manner assembly any
alter in your customers’ requirement.
 Reducing lead times.
 Reducing stock prerequisites.

2.3 Inventory purchase order placement by IFS.

Vehicle Registration Process by IFS

The registration process of a motor vehicle generally incorporated through a government

specialist, either obligatory or something else. For Rancon Autos vehicle registration the reason
of engine vehicle enlistment is to set up a connection between a vehicle and a proprietor or
client of the vehicle. This interface will be utilized for tax assessment or wrongdoing location
purposes. Whereas nearly all motor vehicles are extraordinarily distinguished by a vehicle
recognizable proof number, as it were enrolled vehicles show a vehicle enlistment plate and
carry a vehicle enlistment certificate. Engine vehicle enlistment is diverse from engine vehicle
permitting and protection certification. Motor vehicles may moreover be enrolled with property

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proprietors or supervisors to pick up benefits. For illustration, associations with stopping
offices may require enlistment of a vehicle with them to permit approved clients to stop there.

2.4 Vehicle Registration Window in IFS

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 Key Findings

1. Integrated Supply Chain: Rancon Group’s Information System over its supply chain
is very integrated. Both Procurement and Inventory are covered under the monitor of
one particular department.
2. Zero MIS application in Vendor Management System: VMS is a very crucial
function for Rancon group, but it is operated mostly manually. There is no automation
in Vendor Management System of the company.
3. Less Developed Material Management: Managing Materials is supposed to be highly
digitalized, but the company mostly performs material operations manually.
4. Systematic Transaction Processing System: Transaction System of Rancon Autos is
found to be very systematic as there are multiple subdivisions to deliver information
from one directory to another.

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 Recommendations

Some of the areas in which few changes can be made include:

1. The company can start following Just in Time (JIT) approach since its supply chain is
already developed.
2. Software of bottleneck operation should be used in the inventory department.
3. Rancon Autos should adopt Quality Control Management Information System (QC-
MIS) very soon since MIS over here is highly developed.
4. Procurement and Supply Chain Department must have software related to Statistical
Process Capability.
5. Employee Performance Management records should be included under HRIS.
6. Finance Department must have digital application for Capital Budgeting.

Conclusion

Rancon Autos Ltd. have a very strong Management Information System which covers almost
all the business functions very smoothly. Just MIS of the organization is fully responsible to
deliver information from the very top to the bottom. This flow of information helps the
managers of the company make decisions. If Rancon Autos Ltd. goes MIS driven just like this
in more few years with very few changes in the system, it will surely be the top automobile
company of Bangladesh.

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 References

1. RANCON. (2018). Retrieved from https://www.rancon.com.bd/

2. IFS Applications 7.5. Supply Chain. The balancing act between efficiency and
responsiveness. (2018). Retrieved from https://www.top10erp.org/ifs-applications-90-
supply-chain-management-supply-chain-modules-542
3. IFS Applications 7.5. Supply Chain. The balancing act between efficiency and
responsiveness. (2018). Retrieved from https://www.top10erp.org/ifs-applications-90-
supply-chain-management-supply-chain-modules-542
4. IFS Applications 7.5. Supply Chain. The balancing act between efficiency and
responsiveness. (2018). Retrieved from https://www.top10erp.org/ifs-applications-90-
supply-chain-management-supply-chain-modules-542

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