LUMS Case Study Packages LTD

Group Members Ameer Taimur Ali Anum Iftikhar Muniba Shoaib Natasha Farooq Sadaf Ikram Shumail Arzu Syeda Madeeha Atta

Company Background 
Founded in 1956 by Syed Baber Ali  Two Main Divisions 
Paper & Broad Mill  Packaging Division 

Price Leader in packaging on the basis of high quality and service  Market success  Monopoly

Corporate Planning 
Planning was carried out by top management  Functions 
Planning Department  Commercial Department  Finance Department

Systems Limited
‡ Incorporated in November 1977 ‡ Director of systems limited ‡ Diversification into computer related management ‡ Software development operations

The Production Department 
Order Processing
± ISO ± Job Card 

Machine Scheduling
± Purpose of loading chart ± Main problem in creating loading chart ± Proposed solution 

Material Planning
± Two places for inventory ± Problem with Paper store ± Proposed solution

Production 
Six printing lines  New orders Old customers order Rafi takes round and resolve matters Planning people coordinated through other sections  Completed orders were the responsibility of the dispatch section

Dispatches
‡Last stage where finished orders were shipped ‡Stock list ‡ Call contractors to send the truck ‡ After verified from the ISO, six copies of dispatch note using five layers of carbon ‡ Copies sent to the following department ‡Planning department ‡Computer section ‡Accounts department ‡ Systems limited

Customer Service 
Planning department is responsible for customer service  Copy of all the current ISOs was kept in the planning department Dispatches made against the order; copy of the dispatch note will be attached to ISO report Online database is available with the computer section

Evolution of Computers at Packages 
The state of computerization at packages was a result of sixteen years of sustained efforts.  Initially outside help was used for the development of computer applications.  Later on packages acquired in-house expertise in computers .  In the late 1980·s Personal Computers, also found their way into the manager·s Office.  This helped the individual departments in building their own applications.

Applications Developed Outside Packages Ltd. 
Initiated development of computer based applications in the early 1960 s The first system to be computerized was Payroll. In 1971, the Payroll application was run on Wapda s IBM 360 machines. At the same time they started working on a computer-based Inventory control system. Later, Packages developed a Trim Scheduling Program to help minimize the wastage in the paper and board cutting processes.    

Continued« 
In 1978, Wapda sold it·s IBM 360 machines to Systems Limited.  As need arose, new applications were developed by Systems Ltd fro Packages.  In 1982 Systems Ltd. was running the following computer applications for Packages:  Payroll and Personnel  Inventory Accounting  Accounts Payable  Accounts Receivable  Invoicing  Costing  Production Incentive System  Trim Scheduling    In the later half of 1982, a study was undertaken by Systems Ltd. Consequently, a meeting was held between Systems Ltd and Packages with a purpose of formulating a 3-5 yeas computer strategy at Packages. In 1983 Packages bought data entry machines and started doing entry in-house.

Applications Developed In-house
‡ Suleman Elahi as Technical Manager joined Packages in 1979. ‡ He proposed the idea of development of in-house applications. ‡ Packages first in-house machines were two Tandy model 2 computers which Packages bought from Suleman. ‡ He got involved in the computerization process at Packaged. ‡ Suleman helped build several major applications to run on Tandy machines. ‡ The Sales order Processing (SOPS) and Employee Systems are examples of some of the applications developed at Packages.

Sales Order Processing System
‡ A database was developed on unify, a relational database operating under Unix. ‡ With this new system, the hand written ISO would be typed ‡ And this information would be stored in a separate job order file and is given a unique ISO number ‡ Each order would be identified by its ISO number ‡ The product code number of the ISO would then be matched with the code number in database and production report is printed

Employee system
This database provided senior managers easy access to information regarding their workers 
Provides information about the employees  With the employee system, the manager could get information

such as
± Number of gate passes a worker had taken ± Number of children of a worker

Background 
Suleman Elahi wanted to acquire in-house computer processing for packages but his proposal was rejected  He ended up settling for upgrading the obsolete Tandy System with Unix operating system  This new system had six terminals which led Packages to do its own data entry and because of this Packages then didn·t have to pay to Systems Limited for the data entry cost 

Later in 1987 he again proposed the idea of integrated computer system rendering the system they were using as an obsolete one

Major Problems 
There were three reoccurring:
± Data redundancy ± Data Duplication ± No standards were being followed; a lot of adhoc programs with no proper planning or documentation 

Consultation with Aezaz Hussain of Systems Ltd  Costs and Benefit Analysis

IBM & DEC
Two proposals were made by IBM sales manager: 1. First one based on IBM latest minicomputer series , 9370 and VSE/SP operating system
± Total cost: 29.2 lac with an annual recurring cost of 225000

2.

Second Alternative: Based on IBM PC/RT hardware (Reduced instruction set computers) and a UNIX V operating system Cost: 17.16million  Plus Points:
± ± Apart from giving the alternatives, the sales manager also provided the company an implementation plan Any other software might have led the company to convert its software; both troublesome and risky

´DECµ 
Jaffer Brothers; Their sales Manager was Azer Zia, he proposed MicroVax system which WAPDA was already using  Cost: 24 Lac  Plus Points:
± Easy conversion of programs from IBM to DEC ± Unlimited time period provided for conversion ± The manager knew all about the existing applications so the system he proposed was tailored according to the company·s requirement

ROLE OF I.S. IN THE FUTURE  Respond quickly to changing demands  Efficient and cost effective  To achieve this objective, role of I.S was decided to reduce to one of the monitoring systems  Achieved by dumping Unifying data onto Oracle  Reduce accumulated backlog of systems

Current Situation
At this time Packages system is using the following systems efficiently: 
Accounting System  Inventory Control System  Production Incentive System  Production Planning System  Job Casting System

Current Situation
Due to the rapid development in computer technology the older ones became outdated so currently Packages Ltd is using the following: ‡ Multiuser DECSTATION 500/125 ‡ Configuration:
Model No. PM-339 JY Descriptions DS 5000/125 SBM 16MB ULT DECSTATION 5000 Model 125 16Mb of 4m bit Ram, 25 MHz CPU CPU R3000 FPU R30310(Maths) MIPS 26.8 Clock Speed 25Hz Cache Memory 128 KB Memory Capacity 8-128 MB Including software Licences: ULTRIX, FNS, DECWINDOWS, DECENT C, MOUSE, UNIFY Compaq AQ Model 250 PCs attached with networking

Current Situation
Now Packages Ltd is again planning on updating its systems with SAP in order to prevent its valuable information/data from various problems

Future Plans
1. Easily approachable and user friendly 2. Training in Relational Database Management Systems (RDBMS) under UNIX 3. Enhancement in hardware capability

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