INFORMATION SYSTEM BASED

SUPPLY CHAIN
MANAGEMENT
OF PEPSICO. HYDERABAD.

Subject MIS

Teacher: Muhammad Memon

AN OVER VIEW OF PEPSICO INC.
In late 1880’s when an American Pharmacist Caleb
Bradham created a Cola Soft drink by combining natural
ingredients.
 The drink became so popular that they decided to expand
it and laid down foundation of Pepsi-Cola company in
1898 with sales of $500 million and 19,000 employees.
 Later in 1965 Pepsi-Cola Company and Frito-Lay Inc. the
new Company named PepsiCo Inc. in North Carolina,
U.S.A.
 annual revenue more than $65 Billion, and 297,000
employees
 product portfolio includes 22 brands
 each generates more than $1 billion each in annual retail
sales.

PEPSICO INC. IN PAKISTAN:
In Pakistan the PepsiCo Inc. is doing business on
franchising basis the head quarter of Franchisee
is situated at Islamabad.
 the company performs manufacturing processes
in 5 plants situated at Quetta, Karachi and
Hyderabad, with annual growth rate of last 5
years 25%.

T. Isamail Zara”. Mirpurkhas Road.I.VISIT DETAILS: Address: : PepsiCo Inc.  .  Date: 14-Febuarary-2013  Timing: 10 am to 12 pm  Processes Guided By: Resident Director “Mr.E Hyderabad. S. Factory C-7.

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Design Phase . wholesaler and ultimate Consumer.Implementation Phase .WHY SUPPLY CHAIN MANAGEMENT? Supply chain management SCM is the integration and management of complete supply chain from supplier to store. and again from store to agent.Planning Phase . from store to Manufacturing Department. From Manufacturing Department to Store.  The System Development Life Cycle comprises of following steps:  .Use or Operation Phase .Analysis phase .

 . the information system they were following was generally focusing on whole organization like finance problems. HR Problems. salary system. employee attendance. but most of work was being performed manually focusing more on paper work and less use of information system. wage problems. financial reporting etc.PLANNING PHASE: Recognize Problem:  During our visit at PepsiCo we come to know that PepsiCo was not equipped with any special system to cater for their supply chain management specially.

The PepsiCo order.  Orders to suppliers and from customers were received manually which was time consuming and incurring cost. processes and dispatches thousands of units of inventory on daily basis and the flow of inventory was almost manually controlled. receives.  PepsiCo Hyderabad was not equipped with web base system in order to made transactions online.  .  Returns of unapproved inventory were manually controlled.  No proper check and balance for losses made during manufacturing process.  Inventory reporting was made manually.

.DEFINING PROBLEMS After recognizing the problem carefully and making logical analysis we come to know about basic problems of PepsiCo Supply Chain system which are: .Lack of Information System based Inventory Flow.Manually Order System.  .

SET SYSTEM OBJECTIVES: MIS based Vehicle flow  MIS Based Inventory Flow System  Online Order System:  MIS Based purchase system  Management Support System  Creates Added-Value for Customers  .

 More secure and reliable data.  Increases sale and non-economic returns  Reduces excessive paper and ordering cost  Customer satisfaction  Demand forecast and planning based on more reliable data  Online payment system increase receivable collections  Timeliness in delivery of products  Intimacy with creditors/suppliers  High inventory turnover  .CONCLUSION: Reduce wastage of time incurred during material flow.

ESTABLISH SYSTEM CONSTRAINTS:  The basic system constraints are consist of i.System Development Constraints ii.After Development of System Constraints System Development Constraints: Main system Development constraints are as follow:  Project Scope  Time period  Budget  .

Test Program .PROJECT SCOPE: The project scope is the definition of what the project is supposed to accomplish with the specified features and functions in a project.Prepare Database .Design network .Code Program .Approved Program .Review Design .Identify Output Information Requirements .Educate Users  . .Cutover to Model .Identify Input Data Requirements .Design Database .Prepare a new system documentation .Prepare Program Documentation .Identify Criteria .

5 months Use or operate phase 5 months Total time constraint set for project: 10 months .  TIME PERIOD: The suitable time period constraint for this project is determined as following: Planning Phase 01 month Analyzing Phase 01 month Design phase 1.5 month Implementation phase 2.

000  .000  Design Phase Rs 100.000  Implementation Phase Rs 250.BUDGET: The budgeting of system after having careful analysis of system turnover. and projected cash inflows and out flows with consent of System Analysis the following budgeting plane is announced:  Phase Estimated Budget  Planning Phase Rs 100.000  Total Budget Rs 950.000  Use/Operation Phase Rs 300.000  Analysis Phase Rs 200. forecasted returns.

Organizational Impact  User Information Satisfaction: Satisfaction of user information is very much important.User Information Satisfaction .  .AFTER DEVELOPMENT OF SYSTEM CONSTRAINTS: After development constraints can best be defined on 2 points: . it is defined as “Degree to which users rely on usefulness of Information System”. user information satisfaction is best parameter to measure assessment of Information System Implementation.

 Increases Organizations ability to respond change.  It increases employees understanding with modern Supply Chain Management.ORGANIZATIONAL IMPACTS: The organizational impact of SCM Information System is very wide.  Inventory wastages will be reduced  .  It will completely takeover the current system which is almost manual system.

Legal and Ethical .Technical Objectives .Operational .Economic Return .FEASIBILITY STUDY:  Feasibility study is performed on following points: .Schedule .Non Economic Return .

testers & debuggers Are the current technical resources sufficient for the new system? Can they be upgraded to provide to provide the level of technology necessary for the new system?  . Is the project feasible within the limits of current technology?  Does the technology exist at all?  Is it available within given resource constraints? Is it a practical proposition? Manpower.programmers.TECHNICAL FEASIBILITY: Technical feasibility considers the technical requirements of projects. the technical feasibility depends upon system analyst expertise and knowledge to estimate wither technically this system will be feasible to operate or not?  Technical feasibility of this Information System will be tested from following points.

. these cost can best be adjusted under new Information System. also losses incurred during manufacturing process.ECONOMIC RETURN  The new Information System will make organization more cost effective. sales volumes will ultimately increase. it reduces excessive paper work cost. with keeping track records of inventory flow management can keep records of rejected supplies from quality Department and Returns made.

 Customer satisfaction will increase.  .  It will help in make accurate sales forecasting and demand forecasting on the basis of previous demand track.  It increases supplier/customer intimacy.NON-ECONOMIC RETURN: Information system will provide competitive advantage.  Employees will be trained and more competitive. organization will be able to make quick response to queries made by management and customers and suppliers. and will be able to see situations more clearly than now.

.LEGAL AND ETHICAL:  Legally new information system will be securing the data base from un-authorized access. and takes advantage of the opportunities identified during scope definition and how it satisfies the requirements identified in the requirements analysis phase of system development. Operational Feasibility:  Operational feasibility is a measure of how well a proposed system solves the problems.

whether it is too long to be complete before it is useful. .SCHEDULE:  Schedule feasibility is to assess the duration of the project determined by analyst. System analysts have to estimate how long the system will take to develop. and whether all potential timeframes and the completion date schedules can be met. as well as whether meeting these date will sufficient for dealing with the needs of the organization.

CONTROL MECHANISM: .

DETAILED DESCRIPTION OF SDLC CYCLE: .

PERT CHART DEFINING SCHEDULE: .

L=2 Month .7 5Month T.E=0.50 Month  TL= 1 Month T. For Path 4 – 18:  T.E= 0.L= 3 Month :For Path 10-11: T.25 Months  T.50 Month   For Path 7-9  T.E=0.5 Months T.E=0.FROM CHART: For path 1-3 .L= 1.50  T.E= 0.E=0.25 Month For Path 16-17: T.L= Month 1.25 Month    For Path 14-15:  T.0 Month  For Path 19-20:  T.L=2.E=0.25 T.25 Month  T.L= Month 1.

The MIS Steering committee will be collecting feedback from employees .  User’s Feedback:   Not all the employee will be ready and adaptable to change.After completion of planning phase and arranging various meetings the MIS Steering Committee announces the system study in which committee announces about the detailed outline of project. The announcement of new Information system can create disturbance in working environment as psychologically most of employees in any organizations are against the change . -To know there ideas about new system and resolving any issue they are having with new system.ANALYSIS PHASE: Announce The System: .

ORGANIZE THE PROJECT TEAM The project team organized for developing Information based Supply Chain Management will consist of following team members:  Project Manager   System Analyst   Software Architect   Designer  Software Developer   Software Tester  .

Inventory flow: .Controlled Vehicle Movement: .Authorization: -Online Ordering Systems: .Track Records Of Losses During Process: .CONDUCT SYSTEM STUDY (DEFINE INFORMATION NEEDS)  The system study will be based on following points: .

DEFINE SYSTEM PERFORMANCE CRITERIA: The Supply Chain Performance Criteria will be based on following points:  Customer Services:  Quality:  Agility:  Supply Chain Cost:  .

THE DESIGN PHASE: ORDER TO SUPPLIER: .

PAYMENT TO SUPPLIERS: .

REPORT GENERATION: INPUTS: .

PROCESS: .

OUTPUT: .

ADD CUSTOMER: .

PROCESS: .

SEARCH PROFILE: .

PROCESS: .

OUTPUT: .

ADD SUPPLIERS: .

PROCESS: .

SEARCH SUPPLIER: .

PROCESS: .

OUTPUT: .

INVENTORY REPORTS: .

PROCESS:

OUTPUT:

GRAPHICAL REPRESENTATION

PROCESS: .

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Web server configuration .IDENTIFY ALTERNATIVE SYSTEM CONFIGURATIONS: While determining system configuration we have to consider: .Data Base System Configuration .Client machine hard ware and software requirement  .

HARD WARE REQUIREMENT: WEB SERVER CONFIGURATION: Data Base System Configuration:  The ideal system configurations for Data Base are following:  Small data base:  Processor: 1 processor of 3 G Hz minimum recommended  Ram: 2 GB RAM minimum recommended  Hard disk: 240 GB minimum Recommended  Medium Size Database:  Processor 2 processor of 3 G Hz minimum recommended  RAM: 4 GB RAM minimum Recommended  Hard disk: 500 GB hard disk minimum recommended  Large Size Database:  Processor: 3 Processor of 3 G Hz minimum recommended  Ram: 6 GB RAM minimum Recommended  Hard Disk: 800 GB Hard disk minimum recommended  .

5 GHz recommended  RAM: 1 GB Ram minimum recommended  Hard Disk: 120 GB Hard disk Minimum Recommended  .Client Machine Hardware Requirement:  The recommended Hardware requirement for client machine is as under:    Processor: I processor with minimum 2.

UNIX. Oracle Windows Operating System. Oracle 11g     For Client/User:  Operating System: Operating   Internet Browser: Mozilla Firefox Windows Operating System. IBM® DB2 Version 9.5. IBM DB2 Version 9. Google Chrome.1.1. IBM DB2 for Version 9. Internet Explorer. UNIX System Internet explorer. Google Chrome.SOFTWARE REQUIREMENT:   for Data base:  Operating System: Linux  Internet Browser: Mozilla Firefox  Data base: z/OS®   10g. .

 Affordable Prices  Unlimited Bandwidth  Unlimited Disk Space  Unlimited Domains could be hosted  24 Hours Uptime  Data Backups  More Secure & Reliable  24 Hours support (Through Ticket or Live Chat)  .EVALUATING ALTERNATIVE SYSTEM CONFIGURATION: Web Hosting service Evaluation:  Some basic and important features someone should check before signing up for any hosting package.

Following are the top 5 web hosting websites in Pakistan  Hostgator:  Just host:  Hostmonster :  iPage :  Bluehost: .

 Medium Size Data base  Medium size Database can prove to be Ideal for medium organizations as it will not impose excessive operational costs as compared to large Data base systems.HARD WARE REQUIREMENT EVALUATION: For data base server:  Small size Data base:  Small size data base will no doubt be economic to obtain. it requires an additional IT staff to look after for Database. further more it increases operational cost. but this type of database will lead managers to problems of especially data storage  Large Size Data Base:  Large Size database are difficult to operate. and will require less IT Staff personnel to operate and maintain. neither find difficult to retrieve and store large piece of information like Small Database.  .

CLIENT/USER’S MACHINE HARDWARE REQUIREMENT EVALUATION: Evaluation of user’s system hardware configuration is easy it requires no more expensive hardware with high configurations.  . following brands are available in market:  HP  IBM  LENOVO  ACER  APPLE  DELL  OPTIPLEX And so on. a standard configuration set up is recommended.

Evaluations are based on standard requirement of Personal computer. UNIX.  User’s Software Evaluation: user’s system needs are straight forward. ORACLE. Popular Operating systems are Microsoft’s Windows.  .SOFTWARE REQUIREMENT EVALUATION: Database Software Evaluation: database software evaluation will be made on recommendation of System evaluation. SQL. MS ACCESS and so on. many database software are available including. IBM . LINUX and so on.

 Database System Configuration:  Hardware Configuration: Hardware configuration selected for Database System is as follows.  Processor 2 processor of 3 G Hz minimum recommended  RAM: 4 GB RAM minimum Recommended  Hard disk: 500 GB hard disk minimum recommended  Software Configuration: Software Configuration selected to operate Database Management is :  Operating System: UNIX Operating System.  Internet Browser: Mozilla Firefox  Data base: Oracle 11g  .SELECT BEST CONFIGURATION: Web Server Hosting Configuration:  The web server hosting selected by MIS Steering Committee is Just host web hosting service.

USER’S SYSTEM CONFIGURATION Hardware Configuration: Hardware Configuration needed for User’s Configuration are as follow:  Processor: I processor with minimum 2.5 GHz  RAM: 1 GB Ram minimum  Hard Disk: 120 GB Hard disk  Software Requirement: Software Requirements selected for User’s system configuration are as follow:  Operating System: Window’s 7  Internet Browser: Mozilla Firefox  .