6Atal Bihari Vajpayee – Indian Institute of

Information Technology and Management

Business process management

Assignment

Submitted to: Submitted by:

Dr Gyan Prakash Abhishek Gupta (2019 MBA-01)

1
Q1. What role information system plays in supporting decisions?
Ans. The relationship between information system and decision making is a central
concern in the field of information system (IS). The main objective of information
systems is helping decision makers by providing accurate and time-based information
helping them in making the right decisions in turbulent environment. A successful
organization nowadays relies heavily on information systems to improve its work in
one hand, and on the other hand achieving its goals and benefits. Management
Information Systems helps in solving both structured and unstructured problem
environments. This system is consisted of computers, People, procedures, databases,
interactive query facilities and… Information is considered as a most important
ingredient for success decision making in now a day’s companies, Due to the
importance of information in decision making a developed system has emerged to
serve the appropriate information's to managers for good decision-making process;
called information system.
There are following roles of information system in supporting decisions:

1. Information from Company Operations

When you base your decisions on data available from management information
systems, they reflect information that comes from the operations of your company.
Management information systems take data generated by the working level and
organize it into useful formats. Management information systems typically contain
sales figures, expenses, investments and workforce data. If you need to know how
much profit your company has made each year for the past five years to make a
decision, management information systems can provide accurate reports giving you
that information.

2. Capability to Run Scenarios

The capability to run scenarios is a key decision-making tool. Some management

information systems have this feature built in, while others can provide the
information required for running scenarios on other applications, such as
spreadsheets. Your decision is influenced by what happens if you decide a certain
way. What-if scenarios show you how different variables change when you make a
decision.

You can enter reduced staff levels or increased promotion budgets and see what
happens to revenue, expenses and profit for different levels of cuts or increases.
Management information systems systems play a critical role in making realistic
scenarios possible.

2
3. Projections to Assist in Decision Making

Any decisions you make result in changes in the projected company results and may
require modifications to your business strategy and overall goals. Management
information systems either have trend analysis built in or can provide information
that lets you carry out such an analysis. Typical business strategies include
projections for all fundamental operating results.

A trend analysis allows you to show what these results would be in the current
situation and how they will change once you have implemented the decisions you
have taken. The new values form the basis of your strategic approach going
forward.

4. Implementation and Evaluation

While you make your decisions with specific goals in mind and have the
documentation from management information systems and trend analysis to support
your expectations, you have to track company results to make sure they develop as
planned. Management information systems give you the data you need to determine
whether your decisions have had the desired effect, or whether you have to take
corrective action to reach your goals. If specific results are not on track, you can use
management information systems to evaluate the situation and decide to take
additional measures if necessary.

Application of Information Systems-

The application of IS in an organization requires involvement of many key team

players, including systems analysts, information technology specialists, computer
programmers, management, executives, quality-control personnel, help-desk
specialists, information security and more. Proper application of MIS should result
in the following advantages:

 Increased Profits: IS application can result in new product development,

changed marketing, changed packaging, improved customer service, a
growing product line, better communication with different levels of
customers, competitive pricing and higher customer retention rates.
 Increased Quality: IS application contributes to increased quality through
reducing waste, helping in the selection of quality materials and
implementing warranties/guarantees that match material quality.
 Decreased Costs: IS application helps management become more strategic
about material sourcing, staffing, scheduling, increasing efficiency,
improving processes, managing inventory appropriately and manufacturing
goods at the right time

3
Q2. Processes are the building block of organizations and organizational tasks are
performed in terms of well-defined processes. Develop a set of processes for 

(a) Customer order: To explain customer order using process flow chart, I have
taken the following examples of a restaurant purchase order and online order.

(i) food purchase order

(ii) online purchase order

4
(b) payment process

5
(c) Inventory management

6
(d) Production process: Paper production

7
8
Q3. You will notice that customer order, payment processes, inventory management,
production processes are interrelated.   Develop integrated process for
organization of your choice (you may take any organization, first provide brief
of your chosen organization and then describe its integrated processes) 

Ans. As we discussed above customer order, payment process, inventory

management and production process are interrelated with each other. The below
diagram will establish this fact. In the given figure you will see the customer is
indirectly related with every part of the cycle. Similarly, we can say for others too.

Integrated process for JK tyre:-

For the better understanding I am taking the example of JK Tyre.

INTRODUCTION OF J.K TYRE & INDUSTRIES

JK Tyre and Industries is a leading corporate entity which believes in excellence,

innovation and technology. The Company started manufacturing tyres in 1977, with a capacity
of 0.5 million tyres per annum and has grown multifield over the years to its present capacity of
more than 16 million tyres per annum. JK Tyre has five state-of-the art plants strategically
located in India; in the States of Rajasthan, Madhya Pradesh and Karnataka. The Company
is known for manufacturing India’s leading tyre brands

JK Tyre, Vikrant and Tornal in Mexico, for all categories of four-wheelers. As the

22nd largest tyre manufacturer in the world, JK Tyre exports its tyres to over 80 countries

9
 across 6 continents and enjoys a premium brand status in various sophisticated
markets, including the Americas. The Company also outsources tyres from China and
other low-cost countries for its international markets.

JKTyre pioneered the Radial technology in India way back in 1977 and is Indias only 
tyre manufacturer, offering full range of radial tyres for Cars, Jeeps, SUVs, LCVs,
Truck & Bus and Tractors. The Company manufactures the entire range of tyres for
all four-wheeler categories.

The Company is the No.1 player in „Off the Road‟ (OTR) tyre segment and has
presence across India in almost all applications like Mining, Rock Excavating,
Quarrying, Dam Building and Port operations, and also manufactures Ultra-Large OTR
tyres in its state-of-the-art facility at Mysore. With a distribution network of over 4000
dealers and over 120 stocking points, JK Tyre has left a mark across every Indian road
treading into every nook and corner of  the country.

This includes 125 „JK Tyre Steel Wheels‟ – high-tech one-stop-tyre shops, and over
20 JK Tyre Truck Radial Care Centres on major National high ways which operate on a
365 days/24 hours basis. JK Tyre is a preferred Original Equipment Manufacturers
(OEM) supplier and continues to be ranked No.1 by the JD Power Asia Pacific Tyre
Customer Satisfaction Index Survey. „JK Tyre‟ is the first and the only Indian Tyre
Brand to be recognized as a “Superbrand”

 The Company has consciously been modernizing and expanding its manufacturing facilities
continuously to retain its edge in the market place. JK Tyre is a Total Quality Management
(TQM) driven company, having received all four ISO 9001, QS 9000, ISO 14001 and TS 16949
accreditations. The Company was the first tyre company in the world to receive ISO/TS
16949:2000 certificate for its entire operations in one go.

INTRODUCTION ON TYRE

Everyone knows what a tyre is and what it’s for, right? It’s a black donut made of
rubber, placed on a vehicle so the driver can transport himself and his cargo from
point A to point B. The tyre has to allow for easy steering, braking and cornering. It
must provide for a comfortable, safe ride. It needs to be durable. And that’s about the
extent of what most of us know.

Actually, a tyre is an advanced engineering product made of a lot more than rubber.
Fiber, textile, and steel cord are just some of the components that go into the tyre’s

10
innerliner, body plies, bead assembly, belts, sidewalls, and tread. As you can
imagine, the manufacture of this complex product is, well, complex. It requires the
latest technology, heavy equipment, precision instruments and—most importantly—
qualified people.

Some of the activities that go on in the tyre factory are the mixing of the rubber
compound; preparation of the fabric cord, steel cord, and bead wire; “calendering” of
the inner liner, steel belt and ply cord; extrusion, or shaping, of the tyre’s sidewall
and tread; and the actual building, curing, and inspection of the tyres. Read on for a
more detailed explanation and refer to the manufacturing flowchart for a visual
reference to each process.

IT advancement in supply chain

In today’s ultra-competitive age, an integrated and agile supply chain plays a crucial
role in enhancing the company’s viability and performance. JK Tyre has transformed
its supply chain over the last year with numerous improvements to align with its
mission of being a customer obsessed company.

The IT-enabled supply chain improved visibility across the chain, reduced
redundancy and increased efficiency. JK Tyre designed logistics, distribution
channels and transportation keeping in mind the optimum use of energy and natural
resources, managed through regional warehouses, just-in-time delivery and beat
cycle for last mile deliveries. Team collaboration and cross functional approach lead
to smooth operations.

Benefits of integrative approach in supply chain

1. The company IT-enabled the entire supply chain and the result was increased
visibility and better planning, extensive use of SAP in OE just-in-time
warehouses and export order management and fulfilment process being two of
the many examples. Integrated mould management system was introduced
across nine plants, enhancing mould utilisation. The company could reduce
export port stock significantly. The company used the best warehouse practices
and know-how, successfully converting some of its warehouses into model
warehouses.

2. An integrated and more efficient supply chain helped in increasing product

availability for all segments and surpassing the global supply chain standards,
while there was a substantial cost saving during the year.

3. JK Tyre strengthened its supply chain to address the growing needs of internal
or external customers and ultimately increased the customer experience.

11
4. JK Tyres consider whether proposed solution offers real-time integration, in-
memory storage, and an easy-to-use interface. Features like these can help to
give would-be users a sense of the visibility implications both within
their organisations.
5. Technology is playing a critical role in optimising decision of supply chain
network flow for achieving organisational competitiveness, improve higher
service level, improve visibility & accountability, lowering inventories &
supply chain cost.
6. At JK Tyres now all supply chain processes are automated & we have been
using various technological tools like APO, ERP & mobile application to link
real time data to serve our customers proactively.

12
In an integrative approach the company pile up the data which encloses all the
information regarding customer order, customer satisfaction, inventory
management, operations, payment process etc. This data is accessible to every
stakeholder from anywhere at any time through a common platform like SAP. If it
is necessary the SAP ID would be share with supplier or merchant. In this way all
must be integrated with system.
As in above flowcharts you have seen that in any supply chain purchase order is
interrelated with inventory management, budgeting (Finance), production control in
different ways and similarly, inventory management as well.

13
 Q4. While doing the above, you will realise that there needs to be a set of rules for drawing
graphical diagrams of processes. BMPM (Business process modeling notation is one such
methodology for drawing processes). A file containing basic BPMN methodology is attached. Use
BPMN to draw integrated processes of your chosen organization. You may organise your
processes in terms of swim-lanes.
Ans. As I mentioned earlier, for my better understanding of BPM concepts I have chosen JK Tyre.
The below figure that is BPM diagram of JK Tyre showing the integration of different
departments of the company. The company is working on Pull approach. I have represented
company processes in terms of swim-lanes below.

14
Manufacturing flow chart at JK tyre

15