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INTRODUCTION

• ACCORDING TO ALAN GREENSPAN, CHAIRMAN


OF THE US FEDERAL, RESERVE, “OUR ECONOMY
IS BENEFITING FROM STRUCTURAL GAINS IN
PRODUCTIVITY THAT HAVE BEEN DRIVEN BY A
REMARKABLE WAVE OF TECHNOLOGICAL
INNOVATION. WHAT DIFFERENTIATES THIS PERIOD
FROM OTHER PERIODS IN OUR HISTORY IS THE
EXTRAORDINARY ROLE PLAYED BY INFORMATION
AND COMMUNICATION TECHNOLOGIES”.
INTRODUCTION
• NO COUNTRY IS MAKING THE TRANSITION TO A
KNOWLEDGE-BASED ECONOMY BETTER THAN THE
U.S.
• NINE OF THE TEN LARGEST ORGANIZATION IN THE
WORLD ARE U.S. ORGANIZATION, COMPARED WITH
TWO IN 1990
• NINE OF THE TOP 15 BANKS ARE BASED IN U.S.,
WHEREAS NONE WERE IN 1990. FOR THE FIRST
TIME
• THE RICHEST IN THE WORLD, BILL GATES, DOESN’T
OWN ANY ASSETS SUCH AS FACTORIES,
RAILROADS, GOLD OR OIL. HE ONLY OWNS
KNOWLEDGE.
AIM

TO DISCUS VARIOUS ASPECTS AND DIMENSIONS OF

INFORMATION TECHNOLOGY WHICH CONTRIBUTES

TOTAL QUALITY MANAGEMENT


SEQUENCE
• WHAT IS TQM, ITS GOALS, ROLE AND POTENTIAL SAVINGS

• INTRODUCTION TO IT, ITS LEVELS AND HISTORY

• COMPUTERS AND QUALITY FUNCTIONS

• INTERNET AND OTHER ELECTRONIC COMMUNICATIONS

• INFORMATION QUALITY ISSUES

• TECHNOLOGIES OF THE FUTURE

• TYPE OF INFORMATION SYSTEMS

• HOW INFORMATION SYSTEMS CONTRIBUTE TO TQM

• CONCLUSION

• BIBLIOGRAPHY
WHAT IS TOTAL QUALITY
MANAGEMENT
TOTAL QUALITY IS A BUSINESS MANAGEMENT
METHODOLOGY THAT ALIGNS THE ACTIVITIES
OF ALL EMPLOYEES IN AN ORGANISATION WITH
THE COMMON FOCUS OF

CUSTOMER SATISFACTION

THROUGH CONTINUOUS IMPROVEMENT IN THE


QUALITY OF ALL PROCESSES, GOODS AND
SERVICES.
TQM GOALS
COMPANIES HAVING APPLIED TQM METHODOLOGIES HAVE
ACHIEVED THESE GOALS.

• MANUFACTURING COST REDUCTION/YEAR 10 TO 25 %

• CYCLE TIME REDUCTION/YEAR 30 %

• INVENTORY REDUCTION/YEAR 30 %

• PRODUCT-DEVELOPMENT CYLE REDUCTION/YEAR 30 %

• COMPLEXITY REDUCTION/YEAR 10 TO 30 %

• DOUBLE PRODUCT QUALITY/YEAR -DO-

• DOUBLE PRODUCT RELIABILITY/YEAR -DO-


ROLE OF TQM

TOTAL
QUALITY

CUSTOMER PRODUCTIVITY
SATISFACTION &
COMPETITVENESS EFFICIENCY
THROUGH
CUSTOMER FOCUS
INCREASED REDUCED
SALES COST

PROFIT

GROWTH
ROLE OF TQM

Cost of Defects

Management Continuous
Leadership and Improvement
return on quality

TQM
Empowerment Customer
Focus

Quality tools,
benchmarking,
and the like
TQM AND POTENTIAL SAVING
BENCHMARKING HAS PROVED THAT FOR AN AVERAGE COMPANY:

• 10 TO 25 % OF THE MANUFACTURING COST IS CAUSED BY


DIRECT QUALITY COST.IT IS PREVENTIVE ACTIVITIES,TEST,
REPAIR, MAINTENANCE DURING WARRANTY PERIOD ETC).

• 10 - 25 % OF THE PRODUCTION COST ARE CAUSED BY


INDIRECT QUALITY COST. IT IS THE TIME LOSS
BETWEEN MARKETING, RESEARCH, DEVELOPMENT AND
PRODUCTION,NON-OPTIMUM FUNCTIONAL SUPPORT, E.G.
FINANCE, PERSONNEL ETC.)

• 10 - 50 % OF THE PRODUCTION COST CAN BE REDUCED BY


COMPLEXITY REDUCTION

• 27 - 72 % OF TOTAL POTENTIAL FOR IMPROVEMENTS.


INTRODUCTION TO IT
• IT IS A TOOL LIKE OTHER TOOLS WHICH, HELPS
THE TQM ORGANIZATIONS IN ACHIEVING THEIR
GOALS.
• OVER THE PAST FEW DECADES, COMPUTERS AND
QUALITY MANAGEMENT PRACTICES HAVE
EVOLVED TOGETHER AND HAVE SUPPORTED
EACH OTHER. THIS INTERDEPENDENCE WILL
CONTINUE IN THE NEAR FUTURE.
• IT IS DEFINED AS COMPUTER TECHNOLOGY
(EITHER HARDWARE OR SOFTWARE) FOR
PROCESSING AND STORING INFORMATION, AS
WELL AS COMMUNICATIONS TECHNOLOGY FOR
TRANSMITTING INFORMATION.
• ORGANIZATIONS NEED TO BECOME PROFICIENT
IN CONVERTING INFORMATION TO KNOWLEDGE.
LEVELS OF IT
THERE ARE THREE LEVELS OF INFORMATION
TECHNOLOGY:-

DATA.THESE ARE ALPHANUMERIC AND CAN BE MOVED


ABOUT WITHOUT REGARD TO MEANING.

INFORMATION. IT IS THE MEANINGFUL


ARRANGEMENT OF DATA THAT CREATES PATTERNS AND
ACTIVATES MEANING IS A PERSON’S MIND. IT EXISTS AT
THE POINT OF HUMAN PERCEPTION.

KNOWLEDGE. IT IS THE VALUE-ADDED CONTENT


OF HUMAN THOUGHT, DERIVED FROM PERCEPTION
AND INTELLIGENT MANIPULATION OF INFORMATION.
THEREFORE, IT IS THE BASIS FOR INTELLIGENT ACTION.
HISTORY OF IT
THE FIRST COMPUTER WAS THE ENIAC (ELECTRONIC
NUMERICAL INTEGRATOR AND COMPUTER), WHICH WAS
COMPLETED IN 1946.

THE FIRST USE WAS BY THE GOVERNMENT TO MANAGE


THE NATIONAL CENSUS AND FOR RESEARCH ON
NUCLEAR WEAPONS.

THERE HAS BEEN A PHENOMENAL GROWTH IN CAPACITY,


SPEED, AND MINIATURIZATION (REDUCED SIZE) IN THE
LAST 50 YEARS.

THIS GROWTH WILL CONTINUE TO ACCELERATE WITH A


DOUBLING OF PERFORMANCE EVERY 18 MONTHS.
HISTORY OF IT
THE TABLE SHOWS THE HISTORY OF IT & THE DATES ARE GUIDES,
SINCE HARDWARE & SOFTWARE DEVELOPED OVER SEVERAL YEARS.
Timeline Machine Applications

1946-1963 Vacuum tube with input Scientific and


by punch cards are engineering.
magnetic tape.
1964-1976 Distributed access to Accounting, Inventory,
mainframe. Compatible and business
models. transactions.
1977-1984 Mid-range computers Users involved in
with user-friendly system developments
interfaces
1985-1996 Personal Computers, Desktop systems with
local are networks spreadsheets and word
processors.
1997-1996 Wireless technology, E-mail electronic
Internet as primary commerce systems.
platform.
COMPUTERS & QUALITY FUNCTIONS

• COMPUTERS PLAY AN ESSENTIAL ROLE IN THE


QUALITY FUNCTION.
• THEY PERFORM VERY SIMPLE OPERATIONS AT FAST
SPEEDS WITH AN EXCEPTIONALLY HIGH DEGREE OF
ACCURACY.
• A COMPUTER MUST BE PROGRAMMED TO EXECUTE
THESE SIMPLE OPERATIONS IN THE CORRECT
SEQUENCE IN ORDER TO ACCOMPLISH A GIVEN TASK.
• COMPUTERS CAN BE PROGRAMMED TO :-
• PERFORM COMPLEX CALCULATIONS
• CONTROL A PROCESS OR TEST
• ANALYZE DATA
• WRITE REPORTS & RECALL INFO ON COMMAND.
COMPUTERS & QUALITY FUNCTIONS

• IN ADDITION, COMPUTER SERVES AS A PLATFORM FOR


INTRANET AND INTERNET UTILIZATION.
• THE QUALITY FUNCTION NEEDS SERVED BY THE
COMPUTER ARE:-
• DATA COLLECTION.
• DATA ANALYSIS AND REPORTING.
• STATISTICAL ANALYSIS.
• PROCESS CONTROL.
• TEST AND INSPECTION.
• SYSTEM DESIGN.
DATA COLLECTION
COMPUTERS ARE WELL SUITED FOR THE COLLECTION OF
DATA. PRINCIPAL BENEFITS ARE FASTER DATA
TRANSMISSION. FEWER ERRORS, AND LOWER
COLLECTION COSTS.
DATA ARE TRANSMITTED TO THE COMPUTER BY PAPER OR
MAGNETIC TAPE, OPTICAL CHARACTER RECOGNITION,
TOUCH TELEPHONE, WIRELESS TRANSMISSION,
KEYBOARD, VOICE, POINTER, BAR-CODE SCAN, AND
DIRECT INTERFACE WITH A PROCESS.
THE TYPE AND AMOUNT OF DATA ARE THE PRINCIPAL
PROBLEMS OF DATA COLLECTION.
SOURCES OF DATA ARE PROCESS INSPECTION STATIONS,
SCRAP AND WASTE REPORTS, PRODUCT AUDITS, TESTING
LABORATORIES, CUSTOMER COMPLAINTS, SERVICE
INFORMATION, PROCESS CONTROL, AND INCOMING
MATERIAL INSPECTION.
STATISTICAL ANALYSIS
THE 1ST & STILL AN IMPORTANT USE OF THE COMPUTER IN
QUALITY CONTROL IS FOR STATISTICAL ANALYSIS.

MOST OF THE STATISTICAL TECHNIQUES CAN BE EASILY


PROGRAMMED.

ONCE PROGRAMMED, CONSIDERABLE CALCULATION


TIME IS SAVED, AND THE CALCULATIONS ARE ERROR-
FREE.

MAY STATISTICAL COMPUTER PROGRAMS HAVE BEEN


PUBLISHED IN THE “JOURNAL OF QUALITY TECHNOLOGY”
AND CAN EASILY BE ADAPTED TO ANY COMPUTER OR
PROGRAM LANGUAGE.
STATISTICAL ANALYSIS
THE ADVANTAGES OF PROGRAM STATISTICAL SOFTWARE
PACKAGES ARE:-

• TIME CONSUMING MANUAL CALCULATIONS ARE


ELIMINATED

• TIMELY AND ACCURATE ANALYSIS MAY BE


PERFORMED TO DIAGNOSE ONE-TIME PROBLEMS
OR TO MAINTAIN PROCESS CONTROL.

• MANY PRACTITIONERS WITH LIMITED KNOWLEDGE


IN ADVANCED STATISTICS CAN PERFORM THEIR
OWN STATISTICAL ANALYSIS.
STATISTICAL ANALYSIS
ONCE A STATISTICAL PACKAGE OF COMPUTER PROGRAMS
IS DEVELOPED OR PURCHASED, THE QUALITY ENGINEER
CAN SPECIFY A PARTICULAR SEQUENCE OF STATISTICAL
CALCULATIONS TO USE FOR A GIVEN SET OF CONDITIONS.
THE RESULTS OF THESE CALCULATIONS CAN PROVIDE
CONCLUSIVE EVIDENCE OR SUGGEST ADDITIONAL
STATISTICAL CALCULATIONS FOR THE COMPUTER TO
PERFORM.
EXAMPLE USING STATISTICAL PROCESS CONTROL, THE
U.S POSTAL SERVICE IN ROYAL Oak, MI FOUND WAYS TO
REROUTE MORE MAIL TO THE AUTOMATIC SORTING
MACHINE. THIS IMPROVEMENT RESULTED IN AN ANNUAL
SAVINGS OF $ 700.000 FOR THE FACILITY.
PROCESS CONTROL
THE FIRST APPLICATION OF COMPUTERS IN PROCESS
CONTROL WAS WITH NUMERICALLY CONTROLLED
MACHINES.
NC MACHINES USED PUNCHED PAPER TO TRANSMIT
INSTRUCTIONS TO THE COMPUTER, WHICH THEN
CONTROLLED THE SEQUENCE OF OPERATIONS.
PAPER TAPE IS NO LONGER USED TO PROVIDE
INSTRUCTIONS TO A MACHINE.
COMPUTER NUMERICALLY CONTROLLED CNC MACHINES,
ROBOTS, AND AUTOMATIC STORAGE AND RETRIEVAL
SYSTEMS (ASRS) PROVIDE THE BASIC EQUIPMENT FOR AN
AUTOMATED FACTORY.
THE MEASUREMENT AND CONTROL OF CRITICAL
VARIABLES TO KEEP THEM ON TARGET WITH MINIMUM
VARIATION AND WITHIN ACCEPTABLE CONTROL LIMITS
REQUIRES SOPHISTICATED EQUIPMENTS.
PROCESS CONTROL
AN AUTOMATED PROCESS CONTROL SYSTEM IS
ILLUSTRATED BY THE FLOW DIAGRAM:-

Actuator
PROCESS CONTROL
THE BENEFITS THAT ARE OBTAINED FROM AUTOMATIC
PROCESS CONTROL ARE:-
• CONSTANT PRODUCT QUALITY. DUE TO A
REDUCTION IN PROCESS VARIATION.
• MORE UNIFORM STARTUP AND SHUTDOWN. SINCE
THE PROCESS CAN BE MONITORED AND
CONTROLLED DURING THESE CRITICAL PERIODS.
• INCREASED PRODUCTIVITY. BECAUSE FEWER
PEOPLE ARE NEEDED TO MONITOR THE CONTROLS.
• SAFER OPERATION OF PERSONNEL AND
EQUIPMENT. BY EITHER STOPPING THE PROCESS OR
FAILING TO START THE PROCESS WHEN AN UNSAFE
CONDITION OCCURS.
AUTOMATED TEST AND INSPECTION
IF TEST AND INSPECTION ARE CONSIDERED A PROCESS IN
ITSELF OR PART OF A PRODUCTION PROCESS, THEN
AUTOMATED TEST AND INSPECTION IS SIMILAR TO THE
PREVIOUS SECTION ON AUTOMATED PROCESS CONTROL.
BESIDES THE PRIMARY DIS-ADVANTAGE OF THE HIGH
COST OF EQUIPMENT, COMPUTER-CONTROLLED TEST AND
INSPECTION SYSTEMS OFFER THE FOLLOWING
ADVANTAGES:-
• IMPROVED TEST QUALITY
• LOWER OPERATING COST
• BETTER REPORT PREPARATION
• IMPROVED ACCURACY
• AUTOMATED CALIBRATION
• MALFUNCTION DIAGNOSTICS.
SYSTEM DESIGN
SOFTWARE APPLICATIONS ADAPTED TO THE QUALITY
FUNCTION ARE BECOMING MORE SOPHISTICATED AND
COMPREHENSIVE.
THERE ARE NUMEROUS PACKAGES THAT COMBINE
MANY OF THE QUALITY FUNCTIONS.
THE INTEGRATION OF THE VARIOUS QUALITY
FUNCTIONS WITH OTHER ACTIVITIES REQUIRES AN
EXTREMELY SOPHISTICATED SYSTEM DESIGN AND WILL
BECOME COMMON PLACE IN NEAR FUTURE.
IT WILL REQUIRE THE USE OF :-
• EXPERT SYSTEMS
• RELATIONAL DATABASES
• ADAPTIVE SYSTEM
SYSTEM DESIGN
COMPONENTS OF A TOTAL SYSTEM DESIGN ARE AVAILABLE IN THE
FOLLOWING SOFTWARE:-
CADD : COMPUTER-AIDED DRAFTING AND DESIGN
CAM : COMPUTER-AIDED MANUFACTURING
CAE : COMPUTER-AIDED ENGINEERING
MRP : MATERIALS REQUIREMENTS PLANNING
MRPII : MANUFACTURING RESOURCE PLANNING
CAPR : COMPUTER –AIDED PROCESS PLANNING
CIM : COMPUTER-INTEGRATED MANUFACTURING
MIS : MANAGEMENT INFORMATION SYSTEM
MES : MANUFACTURING EXECUTION SYSTEMS
ERP : ENTERPRISE RESOURCE PLANNING
HRIS : HUMAN RESOURCE INFORMATION SYSTEMS
TQM : TOTAL QUALITY MANAGEMENT
THE INTERNET AND OTHER ELECTRONIC
COMMUNICATION
INTERNET
IT IS A WORLDWIDE NETWORK OF COMPUTER NETWORKS.
IT BEGAN IN 1969 AS A MEANS OF EXCHANGING DATA BETWEEN
UNIVERSITIES AND THE U.S. MILITARY.
IN 1991, THE NATIONAL SCIENCE FOUNDATION, WHICH WAS
RESPONSIBLE FOR THE INTERNET, RELEASED THE BAN ON
COMMERCIAL USE OF IT.
THE INTERNET CONTAINS AN INCREDIBLE AMOUNT OF
INFORMATION AND KNOWLEDGE ON SUBJECTS THAT RANGE FROM
A TO ZEE.
INTRANET
WITHIN ORGANIZATIONS, LANS EFFICIENTLY SHARE DATA AMONG
USERS BY KEEPING LARGE AMOUNTS OF TRANSACTION DATA ON
LARGE CENTRAL COMPUTERS, WHILE CONNECTING PCs TO THEM.
LANS FACILITATE DATA SHARING SUCH AS E-MAIL MESSAGES,
TRANSACTIONS, DECISIONS AND SEARCHES, CALENDARS,
SCHEDULING, TEAMWORK AND AUTHORSHIP, AND ACCESS TO THE
INTERNET.
THE INTERNET AND OTHER ELECTRONIC
COMMUNICATION
INSTANT MESSAGING
ORGANIZATION ARE FINDING THAT E-MAIL CLOGS
COMPUTER NETWORKS AND INCREASINGLY TAKES UP
EMPLOYEES TIME. IBM IS USING INSTANT MESSAGING
RATHER THAN E-MAIL BECAUSE IT IS FASTER.
VIDEO CONFERENCING
VIDEO CONFERENCING IS A TECHNIQUE WHERE PEOPLE
AT REMOTE LOCATIONS PARTICIPATE IN A CONFERENCE
WHEREBY THEY NOT ONLY HEAR BUT SEE EACH OTHER.
VIDEO CONFERENCING ALLOWS MORE EMPLOYEES TO
PARTICIPATE IN A MEETING THAT OTHERWISE WOULD
HAVE BEEN LIMITED TO A FEW PEOPLE.
THE INTERNET AND OTHER ELECTRONIC
COMMUNICATION
VIRTUAL TEAMING
A VIRTUAL TEAM CAN BE DEFINED AS A GROUP OF INDIVIDUALS
LARGELY DEPENDENT ON ELECTRONIC TECHNIQUES TO JOINTLY
COMPLETE A PROJECT, REGARDLESS OF DIFFERENCES IN MEMBERS
GEOGRAPHIC LOCATION, TIME ZONE, OR ORGANIZATIONAL BORDER.
SOFTWARE, KNOWN AS GROUPWARE, IS USED TO HELP TEAMS
COMMUNICATE IN CYBERSPACE.
VIRTUAL TEAMS USE A COMBINATION OF INTERNET. E-MAIL
INSTANT MESSAGING, PC-TO PC CONNECTIONS, SHARED COMPUTER
SCREENS, AND LINKED DATABASES.
ONE IMPORTANT DIFFERENCE IS THAT THE MEMBERS DO NOT MEET
FACE TO FACE.
THE INTERNET AND OTHER ELECTRONIC
COMMUNICATION
DOCUMENT MANAGEMENT
GLOBALLY INTEGRATED, PAPERLESS DOCUMENTATION IS BEING
USED BY FORWARD-THINKING ORGANIZATIONS. APPLICABLE
GROUPWARE SOFTWARE SUCH AS QSET MAKES REMOTE AND
PAPERLESS ASSESSMENTS POSSIBLE.

e-LEARNING
E-LEARNING IS OFFERED IN A VARIETY OF FORMATS SUCH AS CD-
ROM-BASED, LAN-BASED AND WEB-BASED.
ADVANCES IN COMPUTER HARDWARE AND SOFTWARE MAKE E-
LEARNING THE BEST WAY FOR ORGANIZATIONS TO ACHIEVE THEIR
EDUCATION AND TRAINING NEEDS.
E-LEARNING WILL ONLY BE SUCCESSFUL IF ITS PLANNING AND
IMPLEMENTATION IS WELL-THOUGH OUT TO ENSURE IT MEETS THE
NEEDS OF THE ORGANIZATION.
THE INTERNET AND OTHER ELECTRONIC
COMMUNICATION
e-LEARNING. IT HAS A NUMBER OF ADVANTAGES OVER THE
TRADITIONAL CLASSROOM:-
• INDIVIDUALS OR GROUPS CAN ASSESS THE INSTRUCTION WHEN
IT’S NEEDED.
• ONLY A COMPUTER IS NECESSARY.
• LEARNERS CAN IMMEDIATELY APPLY WHAT THEY LEARN.
• IT TAKES LESS TIME.
• IT CAN BE CUSTOMIZED TO MEET THE INDIVIDUAL’S NEEDS.
• INTERACTIVE EXERCISES CAN BE PROVIDED TO TEST
KNOWLEDGE, APPLY SKILLS, AND EXPERIMENT IN A NON-
JUDGMENTAL ENVIRONMENT.
• RETENTION AND ON-THE-JOB EFFECTIVENESS IS INCREASED.
• MATERIALS CAN BE REVIEWED AT A LATER DATE.
• PARTICIPANTS DO NOT NEED TO TRAVEL.
THE INTERNET AND OTHER ELECTRONIC
COMMUNICATION
e-GOVERNMENT. US GOVERNMENT IS INCREASING ITS USE OF
THE INTERNET TO SIMPLIFY PROCESSING OF INFORMATION.
EXAMPLES ARE:-
• THE U.S. PATENT AND TRADEMARK OFFICE DEVELOPED AN
INTERACTIVE WEB-BASED SYSTEM THAT ANYONE CAN
USE TO FILE A TRADEMARK APPLICATION. THE SYSTEM HAS
IMPROVED THE QUALITY OF INITIAL APPLICATIONS AND
HELPS IN MAINTAINING THE QUALITY OF APPLICATION
PROCESSING.
• UNEMPLOYED WORKERS COMPLETE THEIR APPLICATIONS
FOR UNEMPLOYMENT PAYMENTS WITHOUT
ASSISTANCE FROM COUNSELORS USING COMPUTERS IN
THE UNEMPLOYMENT OFFICE. THIS INFORMATION IS
TRANSFERRED TO A CENTRAL COMPUTER, WHICH FURTHER
EVALUATES THE DATA AND APPROVES THE ISSUING OF THE
CHECK.
THE INTERNET AND OTHER ELECTRONIC
COMMUNICATION
e-COMMERCE. THE LINKING OF EVERY KIND OF MACHINE
AND COMPUTER WITH TELECOMMUNICATIONS HAS CHANGED WHAT
TASKS ARE DONE BY WHOM AND WHERE. PROCESSES CAN RESIDE
ACROSS MULTIPLE ORGANIZATIONS – FROM SUPPLIERS TO
CUSTOMERS AND STILL BE EFFECTIVELY MANAGED. SUPPLY
CHAINS HAVE BEEN REENGINEERED; EMPLOYEES ARE FREE OF
GEOGRAPHICAL LIMITATIONS, AND PRODUCTS ARE MANUFACTURED
AROUND THE GLOBE. PROCESSES DO NOT BEGIN OR END WITHIN
ONE FACILITY, TEAM, OR ORGANIZATION.
EXAMPLE. USING THE INTERNET, YOU CAN ORDER A PRODUCT FROM
A CONTACT IN A COUNTRY WHO WILL DESIGN IT ON HIS PERSONAL
COMPUTER, OBTAIN YOUR APPROVAL FOR THE DESIGN, SEARCH FOR
COMPETITIVE BIDS, AND SEND THE DESIGN TO, SAY, HONG KONG
FOR MANUFACTURING. THE DESIGN WILL BE DOWNLOADED TO A
MACHINE THAT WILL AUTOMATICALLY PRODUCE THE PRODUCT,
INSPECT FOR QUALITY, AND PACKAGE AND LABEL THE CONTENTS.
IT WILL BE SHIPPED BY NEXT DAY AIR WITH THE ENTIRE PROCESS,
EXCLUDING AIR TRAVEL TIME, TAKING LESS THAN A FEW HOURS.
THE INTERNET AND OTHER ELECTRONIC
COMMUNICATION
Integrating Functions and Business Processes

Supply Chain Management


INTEGRATING FUNCTIONS AND
BUSINESS PROCESSES
HOW INFORMATION SYSTEMS FACILITATE SUPPLY CHAIN MANAGEMENT

• DECIDE WHEN, WHAT TO PRODUCE, STORE, MOVE


• RAPIDLY COMMUNICATE ORDERS
• COMMUNICATE ORDERS, TRACK ORDER STATUS
• CHECK INVENTORY AVAILABILITY, MONITOR STOCK LEVELS
• TRACK SHIPMENTS
• PLAN PRODUCTION BASED ON ACTUAL DEMAND
• RAPIDLY COMMUNICATE PRODUCT DESIGN CHANGE
• PROVIDE PRODUCT SPECIFICATIONS
• SHARE INFORMATION ABOUT DEFECT RATES, RETURNS
THE INTERNET AND OTHER ELECTRONIC
COMMUNICATION

BUSINESS-TO-BUSINESS (B2B). e-COMMERCE APPLICATIONS


BETWEEN BUSINESSES HAVE EXISTED SINCE THE EARLY
1980’S. THESE EARLY BUSINESS-TO-BUSINESS (B2B)
APPLICATIONS WERE PROPRIETARY SYSTEMS USING PRIVATE
NETWORKS, BUT THEY WERE NOT ECONOMICALLY FEASIBLE
FOR SMALL BUSINESSES. WAL-MART AND KMART ARE
EXCELLENT EXAMPLES OF B2B USING THE ELECTRONIC
DATA INTERCHANGE (EDI) STANDARD. WHEN A CUSTOMER
PURCHASES A PRODUCT AT THE CHECKOUT COUNTER, THE
COMPUTER STORES THIS INFORMATION FOR LATER
TRANSMISSION TO THE SUPPLIER. THIS PROCESS WOULD
CONTINUE UNTIL A PARTICULAR INVENTORY LEVEL WAS
REACHED.
THE INTERNET AND OTHER ELECTRONIC
COMMUNICATION
BUSINESS – TO – CUSTOMER (B2C). BROADLY DEFINED B2C
IS THE ELECTRONIC TRANSMISSION OF BUYER SELLER
TRANSACTIONS AND RELATED INFORMATION BETWEEN
INDIVIDUAL AND CUSTOMERS AND ONE OR MORE
BUSINESSES.
THE BUYER BENEFITS FROM EASY ACCESS TO PRODUCT
INFORMATION, AGENTS TO HELP FIND THINGS AND
COMPARE COSTS, SALES AND SERVICE 24/7 (24 HOURS A DAY,
SEVEN DAYS A WEEK) ANYWHERE, AND ONLINE THE
DISTRIBUTION OF A DIGITIZED PRODUCT OR SERVICE.
THE SELLER BENEFITS FROM LOWER COSTS, GLOBAL
OUTREACH, MULTIMEDIA MARKETING CHANNEL AND
MARKET RESEARCH OPPORTUNITIES, 24/7 SALES AND
CUSTOMER SUPPORT CHANNEL, AND DISTRIBUTION
CHANNEL FOR A DIGITIZED PRODUCT OR SERVICE.
THE INTERNET AND OTHER ELECTRONIC
COMMUNICATION

WEBSITE DESIGN. DESIGNING A GOOD WEBSITE IS NO


DIFFERENT THAN DESIGNING A GOOD PRODUCT OR SERVICE.
IT BEGINS WITH STATING THE OBJECTIVES SUCH AS
INCREASING SALES, GAINING MORE CUSTOMERS,
PROVIDING INFORMATION TO STAKEHOLDERS, SELLING
PRODUCTS DIRECTLY, OR REDUCING COST.
INFORMATION QUALITY ISSUES

SUFFICIENCY ACCURACY

TIMELINESS CYBER CRIMES

INFORMATION
INTELLECTUA PRIVACY
L PROPERTY QUALITY ISSUES

SECURITY POLLUTION

CREATIVITY CONTROL &


PREVENTION
TECHNOLOGIES OF FUTURES

WIRELESS e-PAPER

ARTIFICIAL TECHNOLOGIES OF WALLET PC


INTELLIGENCE FUTURES

VIRTUAL e-BOOK
e-COMMERCE
MAJOR TYPES OF SYSTEMS

• EXECUTIVE SUPPORT SYSTEMS (ESS)


• DECISION SUPPORT SYSTEMS (DSS)
• MANAGEMENT INFORMATION SYSTEMS (MIS)
• KNOWLEDGE WORK SYSTEMS (KWS)
• OFFICE AUTOMATION SYSTEMS (OAS)
• TRANSACTION PROCESSING SYSTEMS (TPS)
TYPES OF INFORMATION SYSTEMS
TYPES OF SYSTEMS
RELATIONSHIPS AMONG SYSTEMS
PAYROLL TPS
TYPES OF TPS SYSTEMS
INTEGRATING FUNCTIONS AND
BUSINESS PROCESSES

TRADITIONAL VIEW OF SYSTEMS


INTEGRATING FUNCTIONS AND
BUSINESS PROCESSES

ENTERPRISE SYSTEMS
HOW INFORMATION SYSTEMS CONTRIBUTE TO
TOTAL QUALITY MANAGEMENT

• SIMPLIFYING THE PRODUCT OR THE PRODUCTION


PROCESS
• BENCHMARKING
• USE CUSTOMER DEMANDS AS A GUIDE TO
IMPROVING PRODUCTS AND SERVICES
• REDUCE CYCLE TIME
• IMPROVE THE QUALITY AND PRECISION OF THE
DESIGN
• INCREASE THE PRECISION OF PRODUCTION
CONCLUSION
TQM IS CONSIDERED TO BE MORE INCREMENTAL THAN
BUSINESS PROCESS REENGINEERING (BPR) BECAUSE ITS
EFFORTS OFTEN FOCUS ON MAKING A SERIES OF
CONTINUOUS IMPROVEMENTS RATHER THAN DRAMATIC
BURSTS OF CHANGE. SOMETIMES, HOWEVER, PROCESSES
MAY HAVE TO BE FULLY REENGINEERED TO ACHIEVE A
SPECIFIED LEVEL OF QUALITY.
INFORMATION TECHNOLOGY CAN HELP FIRMS ACHIEVE
THEIR QUALITY GOALS BY:
• HELPING THEM SIMPLIFY PRODUCTS OR PROCESSES.
• MEET BENCHMARKING STANDARDS.
• MAKE IMPROVEMENTS BASED ON CUSTOMER
DEMANDS.
• REDUCE CYCLE TIME.
• INCREASE THE QUALITY AND PRECISION OF DESIGN
AND PRODUCTION.
BIBLIOGRAPHY
1. MANAGEMENT AND INFORMATION
SYSTEMS (7TH EDITION)
BY
KENNETH C. LAUDON
(New York University)
JANE P.LAUDON
(Azimuth Information System)

2. TOTAL QUALITY MANAGEMENT


(3RD EDITION)
BY
DALE H.BESTERFIELD
(Professor Emeritus, Southern Illinois University)
CAROL BESTERFIELD- MICHNA
GLEN H.BESTERFIELD
(Associate Professor, University Of South Florida)
MARRY BESTERFIELD-SACRE
(Assistant Professor, University Pittsburgh)

3. INTERNET

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