A materials management information system (MMIS) in a

A MATERIALS MANAGEMENT INFORMATION SYSTEM

(MMIS) IN A STEEL INDUSTRY - A CASE STUDY

By

MARGARETHA SUSANNA VAN DER WALT

MINI THESIS

submitted in partial fulfillment of the requirements for the degree

MAGISTER INGENERIAE

in

ENGINEERING MANAGEMENT

at the

RAND AFRIKAANS UNIVERSITY

Supervisor: Prof L Pretorius

NOVEMBER 1998

Summary

Purchasing/procurement, materials management, supply chain management and logistics are

strategic elements linking customer requirements with the possibilities of the market. Purchasing is

establishing itself as a center of competence for the strategic alliances and development

partnerships with suppliers, for the continual process of improvement and for strategic cost

management in product development.

Materials Management within the Steel Industry is primarily concerned with the planning,

acquisition, conversion, flow, and distribution of raw materials to finished goods. Through the use of

Materials Management techniques, a company can initiate cost reduction programs. These can

include lower stock levels, reduction in number of vendors used, better quality of goods used,

integration of supply chain into company's own value chain, etc.

As such, it is important to have an integrated, supporting information system, which can supply

valid, up-to-date information as and when required. This thesis investigates whether it is necessary

or more advantageous to buy a ready-to-use system, or to write a custom system, to fulfil the before

mentioned requirement.

New technologies create the opportunity to do business more effectively. Managers must however,

take responsibility for participating in the planning and design of the information systems. Many

computer-generated reports are designed to enable managers to keep track of day-to-day

operations and to monitor the use of resources. Through effective design these reports can help

manage not only the use of resources, but also the total cost of ownership.

Decision support systems are designed to support semi-structured and unstructured decisions in

situations in which information is incomplete. They are developed to support decisions that are so

different each time that it would be hard to develop a standard set of procedures for programming

them. Such decisions may be specific and may relate to a one-time-only situation. A decision

support system should enable the decision-maker to apply the right decision rule to a problem,

rather than using standard rules that may not apply because of changing conditions.

In order to link the process to the Steel Industry, a short summary was given of current economic

trends and forecasts for the rest of the year.

A system was designed by using Microsoft Access 97. This package ensures readily available

support form Microsoft and is not unduly expensive. The system provides for information to be

stored in a database, with access to various reports and graphs. All of the main activities and

functions of Materials Management was incorporated into the system. The ready-to-use system

compared to the above mentioned one is SAP, and specifically the LIS module.

The impact of this investigation is that the outcome may influence future decisions regarding

whether to buy any commercially available software packages, or to write a custom system

reflecting the unique characteristics found in any business environment.

Through following the business research process, measurement instruments were designed, as well

as the appropriate scales, sampling methods and sample size. It was decided to use a

questionnaire to test the custom written system within Materials Management, at a Steel center.

After a sample group tested the custom software system and completed the questionnaires, the

information was summarised. The most important conclusion is that while the smaller, custom

written system is not ideally suited for every application within a larger company, it will be ideal for a

smaller company. Ease of adaptation and the financial impact also influences the final decision,

where the easier to adapt, 'cheaper' custom system is more suitable to a small company.

Finally, although certain rough conclusions can be drawn from this study, it is necessary to do a

more detailed investigation, using a larger sample group, to ascertain whether buying decisions in

larger companies should be rethought, in any case as far as expensive software systems are

concerned.

TABLE OF CONTENTS

Summary

Chapter one Introduction

Chapter two Materials Management 3

2.1 Primary Function 3

2.2 Reducing Costs through Materials Management 5

2.3 The Supply Chain 6

2.4 Commodity Management within Materials Management 8

2.5 Conclusion 10

Chapter three Information Systems 11

3.1 How Information Technology Supports Business Activities 11

3.2 A Managers View of Information Systems 14

3.3 Managerial Decision Support Systems 18

3.4 Systems Development Life Cycle 19

3.5 Systems Planning 21

3.6 Systems Analysis 26

3.7 Systems Design 30

3.8 Systems Implementation 32

3.9 Systems Support 34

3.10 Conclusion 35

Chapter four Characteristics of the Steel Industry 36

4.1 Basic Iron and Steel Industry 36

4.2 Structural Metal Industry 36

4.3 Prospects For the Local Steel Market 37

4.4 South African Steel Imports 37

4.5 Domestic Market 37

4.6 International Market 38

4.7 Conclusion 38

Chapter five Business Research 40

5.1 The Nature of Research 40

5.2 Measurement 41

5.3 Data Collection 47

5.4 Conclusion 51

Chapter six Case Study 52

6.1 Opportunity 52

6.2 Project Scope and Exclusions 54

6.3 Definition of Solution 54

6.4 Systems Benefits 55

6.5 Systems Risks and Concerns 56

6.6 Impact and Dependencies 57

6.7 Key Assumptions 58

6.8 Systems Diagrams 58

6.9 Programming Reports 58

6.10 Conclusion 59

Chapter seven Case Study Results 60

7.1 The Management Question 60

7.2 The Research Question 61

7.3 The Investigative Question 63

7.4 The Measurement Question 64

7.5 Further Comments 64

7.6 Conclusion 65

Chapter eight Conclusion 66

Chapter nine Bibliography 68

LIST OF FIGURES

Figure 2.1: Materials Management process

Figure 3.1: Value activities

Figure 3.2: Support activities

Figure 3.3: The value system

Figure 3.4: Activities of an organisation

Figure 3.5: A Framework for information systems

Figure 3.6: A summary of characteristics of information systems

Figure 3.7: Types of decisions and decision structure

Figure 3.8: Types of analysis in decision support systems

Figure 3.9: The classical and modern SDLF

Figure 3.10: Life cycle diagram of Systems Planning

Figure 3.11: Study phase activities

Figure 3.12: Context model

Figure 3.13: Problem/opportunity survey matrix

Figure 3.14: Systems models (p273 &283)

Figure 6.1: Process flow chart

Figure 7.1: Representation of response to management question

Figure 7.2: Distribution of opinions on SAP costs

Figure 7.3: Acceptability of SAP costs

Figure 7.4: Distribution of decision between SAP and MMIS

Figure 7.5: Ease of SAP implementation

Figure 7.6: Response on availability of information

LIST OF TABLES

Table 2.1: Guiding principles within Materials Management

Table 4.1: Movement expected in the steel sector i.r.o. 3rd quarter 1998

Table 5.1: Types of scale

Table 5.2: Development of research instrument

Table 5.3: Research questions

Table 6.1: Characteristics of MMIS and SAP

Table 6.2: Systems Benefits

Table 6.3: Systems Risks and Concerns

Table 7.1: Reasons for choice between MMIS and SAP

LIST OF APPENDICES

Appendix 5.1: Questionnaire

Appendix 6.1: Product Solution: Microsoft Access

Appendix 6.2: Low-level Systems Diagrams

Appendix 6.3: Systems characteristics

Appendix 6.4: User Manual

ACRONYMS

Acronym Page Description

MMIS 1, 27,

32, 33,

30, 31,

34, 37

Materials Management Information System

JIT 3 Just In Time system for procurement of goods, varying form

raw materials to spares and consumables

ABC

analysis

4 The Management Principle of Materiality, where items is

classified on the basis of relative importance

POS 5 Point Of Sale information

TCO 6, 33 Total Cost of Ownership

SDLC 14 Systems Development Life Cycle

CEO 16 Chief Executive Officer

BAA 17 Business Area Analysis Phase of Systems Planning

IS 18 Information Systems

RFQ 22,30, 41 Request For Quotation

RFP 22 Request For Proposal

RDP

Projects

27 Reconstruction and Development Plan for South Africa

US 29 United States

SAP (LIS) 30, 31,

43

33,

••

34, Logistics Information System within the SAP software system

ERD 35 Entity Relationship Diagram

DFD 36 Data Flow Diagram

MIS 36 Management Information System

CHAPTER ONE

Introduction

In the growing complexities of civilisation new problems develop more rapidly than the old ones are

solved. Since a problem is a doubtful code or question difficult to solve [14], it is necessary to

understand the relevant facts in order to solve the problem. To accomplish this the problem must

be carefully defined.

The aim of this study is to answer the question whether it is better to buy a commercially available

software system off the shelve, or to design a custom written system for the business. The

advantages and disadvantages of each will be investigated and discussed.

The research objective of this study can therefor be defined as follows:

To plan, analyse, design, implement and test, a small custom written Materials

Management Information System (MMIS), within a Steel Industry.

To compare a smaller, custom written Management Information System (MIS) software

system with a commercially available system.

To investigate the possible advantages and disadvantages of a commercial system in

comparison with a custom written system.

In order to arrive at these objectives, the study was divided into four parts. The first part gives

supporting and background information, the second part discusses the research process, the third

discusses the computer system used in the case study and the fourth the findings from the case

study as well as the final conclusion.

Part one consists of a discussion of supporting information regarding the environment in which the

study took place and the role of information systems in management. It can be summarised as

follows:

Materials Management (Chapter 2). This chapter looks at the primary function of Materials

Management, advantages of the process to a company, and the role of the supply chain

within a company's processes.

A MMIS in a Steel Industry — A Case Study 1

Information Systems (Chapter 3). A manager's view of information systems is discussed,

as well as the support information systems provide for the business processes. The

systems development life cycle is given in order to provide a backdrop for the system

discussed in part three.

Lastly the characteristics of the Steel Industry (Chapter 4) is discussed, as this is part of the

environment in which the case study took place.

Part two consists of:

Describing the research process (Chapter 5). The discussion is done at this stage to

provide the basis for part three. Although the mini thesis as a whole is a research study,

this chapter discusses the methods used during the process to -arrive at the findings and

final conclusion.

Part three consists of:

Describing the computer system programmed (Chapter 6). This chapter is the focal point of

the research objectives, as it describes the design of the system, as well as the advantages

and disadvantages as compared with a commercial system.

Part four consists of:

Stating research outcomes, i.e. the findings (Chapter 7). In this chapter is stated the

findings of the research as conducted within the described environment.

Drawing a conclusion from before mentioned outcomes (Chapter 8). The chapter ends the

mini thesis by summarising the outcomes and presenting the answer to the research

objectives.


CHAPTER TWO

Materials Management

This chapter aims to give background information regarding the Materials Management function in

general, as well as specifically in the Steel Industry. Materials Management has evolved from

being purely a purchasing function, into a department that adds value to the company through its

various processes and functions. Refer to Figure 2.1.

2.1

Primary function

Purchasing and materials management is primarily concerned with the planning, acquisition,

conversion, flow, and distribution of goods from the raw materials to finished goods. The

purchasing department in a typical organization is responsible for securing all necessary raw

materials, supplies, capital goods, and services at the best terms possible. The materials

management function typically coordinates the major activities contributing to materials costs and

availability including purchasing, warehousing, and distribution [27].

In a typical company, approximately 50% of all sales rands are being spent on purchased items or

services. The importance of the purchasing and materials management function in an

organisation can therefor not be overemphasized. Together, these trends have created an

environment where customers in all segments of the market face at least one common imperative -

the need to increase the efficiency of their operations. Similar trends in other sectors of the

economy gave rise to management techniques, which are now gaining acceptance in the life

sciences, market. The emergence of storerooms is but one example of these techniques [27].

Materials Management offers the following principal benefits [29]:

Enhances inventory control enabling stock holdings to be kept at an optimum economic

level;

Enhances service levels by providing on line access to purchasing and requisitioning to all

users;


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❖ Increases labor productivity by automating routine tasks, for example, items not requiring

special attention can be automatically provisioned;

Can lower costs and improve consistency of supply through the use of forward purchase

agreements;

Reduced cost of supply, improved warehouse use, optimised staff productivity and better

management information gives a better bottom line result.

2.2

Reducing Costs through Materials Management

Improving efficiency and reducing costs can be achieved in many ways, from reductions in staff to

elimination programs. One of the greatest cost drivers in any organization is the cost of supplies.

The cost of supplies is not limited to the price of an item [23]. Administrative and other overhead

costs are also incurred in selecting vendors, ordering, accounting, shipping, receiving, and storing

supplies. A growing appreciation of the extent of these costs has made their reduction a prime

focus of all organizations' cost reduction efforts. This holds true in academic, industrial, and

government accounts. One of the keyways to reduce supply costs is through a discipline widely

referred to as "materials management."

Analyses show that sophisticated materials management is already the norm in large industrial

accounts, and their success is likely to influence the purchasing practices of smaller companies as

well. Progressive government laboratories are also moving in this direction. It is a given that as

materials management techniques gain acceptance it will increasingly be applied to the

procurement of products and supplies [27].

Many organizations in all segments of the market have experimented with a number of these

enhanced strategies, programs and concepts. As the organization gains experience, and begin to

realize the benefits of integrated materials management, prime-vendor programs are commonly

found. Organisations seeking even greater results have pursued more creative approaches in

concert with their vendors. In fact, many of these programs have been conceived, packaged and

proposed by vendors as part of their effort to provide value-added services and to either enhance

or maintain their market share and profitability [1]. These techniques are commonly referred to as

Just-In-Time (JIT) or "stockless" programs.


Simply stated, JIT means that supplies are ordered to arrive just before they are actually needed

[7]. Thus, frequent deliveries are made directly to the production line and virtually no inventories

are maintained in a warehouse or storeroom. Organizations, which successfully implement JIT,

have found this concept has improved efficiency, reduced costs and increased profits. One of the

guiding principles of a JIT program is the need to dramatically reduce the organisation's number of

suppliers. Vendors must adapt to the changing business environment, or find they are competing

for a smaller share of the market segment populated by small volume accounts.

2.3

The Supply Chain

A lot of companies have been restructured, reorganized, and reengineered, downsized, rightsized,

and horisontally organized. As mentioned, attention is given to methods like ABC analysis, and

JIT [18]. The company is lean and mean, and the people are feeling empowered. The next

question is, is the supply chain up to the task of supporting the company's growth? If work has

been done to streamline and integrate the company's supply chain, the answer is likely to be

positive. If, on the other hand, these initiatives have gotten in the way of developing an agile and

responsive supply chain, the answer could be more negative.

An integrated supply chain is linked organisationally and coordinated with information flows, from

raw materials to on-time delivery of finished goods to customers. Partnering-oriented business

relationships are established between and among all supply chain members -to facilitate -

coordination of supply chain activities. What is partnering? Partnering or partnership sourcing can

be described as follow [9]: "... Is where customer and supplier develop such a close and long-term

relationship that the two work together as partners. It isn't philanthropy: the aim is to'secure the

best possible commercial advantage. The principle is that teamwork is better than combat. If the

end-customer is to be best served, then the parties to a deal must work together — and both must

win. Partnership sourcing works because both parties have an interest in each other's success."

It is important to link customer/seller interface in the value and supply chain. The issue of what the

customer actually requires must be addressed. The needs of the customer must therefor be linked

to the buyer/seller relationship where the focus is on value adding benefits in the supply chain.


Supply chain development can help a company [9]:

Achieve world-class quality standards

Plan better through long-term, information rich relationships with customers and suppliers

Innovate through better information from customers and suppliers, and access to the

technical resources of both.

Similarly, supply chain processes within the company are managed across the company to

minimise unnecessary handoffs, silo behavior (vertical thinking and behavior within a business

unit), uncertainty, and delays. The entire supply chain is linked by information about anticipated

and actual demand, supply, and movement. This information is used to coordinate the activities of

all supply chain partners. Integrated "super organisations" with coordinated supply chains are

extremely responsive, and can react quickly to support a partner company's rapid growth. All

supply chain partners share in business planning, forecasting point-of-sale (POS) information,

inventory status, and other activities and information related to coordinating the flow of products.

When everyone plays from the same sheet music, uncertainty and delays are minimized.

Suppliers know when to begin production, carriers can plan when to provide additional equipment,

and distributors can offer added just-in-time throughput capacity. Products speed through the

supply chain, unimpeded by uncertainty, start-up inertia, excessive handoffs, flow interruptions or

paperwork delays [18].

The nimbleness of a supply chain, and its capability to support anticipated growth, can be

assessed by answering the following questions:

Is timely POS information used to provide early warning of rapid shifts in demand?

Are agreed-upon, accurate demand forecasts used to "pull" products through the supply

chain - from raw materials through manufacturing to distribution to customers - in the right

amounts and in the right assortments, when needed?

Do the company's major customers regularly provide their demand projections and plans

for growth?

Does the company regularly give major suppliers its business plan and demand

projections?

Does purchasing, manufacturing, product flow, inventory, and transaction information move

seamlessly throughout the supply chain?

Is the company linked electronically with all its major customers, suppliers and

transportation carriers?


Have service and performance measurements been implemented between each stage of

the supply chain to monitor overall performance?

Are supply chain processes coordinated and managed horizontally across the organization

to minimize handoffs and reduce cycle times?

Information delays, multiple handoffs, suppliers' inability to quickly begin production, difficulty in

obtaining carrier equipment and a myriad of other problems will impede the company's ability to

respond quickly to growth triggers. If this is the case, it's time to improve the company's supply

chain efficiency and performance [18].

2.4

Commodity Management within Materials Management

Materials Management focuses on four core processes:

Total cost of ownership (TCO) / Supplier management — Achieve continuous reductions in

TCO

Materials/ Inventory planning — Optimise inventory levels within and across centers

Order fulfillment — Improve service levels and reduce the administrative burden.

Materials logistics — Optimise logistical flows, and ensure inventory integrity.

The above mentioned is executed by way of Commodity Management. Where the traditional

focus in Materials Management would be the achievement in savings on price only, Commodity

Management examines specification optimisation and commodity usage to achieve greater

savings [22]. Individual industrial goods or services are called commodities. Some examples are

electricity, mechanical spares, lubricants, and tires.

The savings are realised by way of Money teams and Commodity teams. Money teams are used

to achieve rapid change. A Money team focuses on achieving significant savings in one

commodity in a short period of time (3 — 4 months) with tight deadlines, during which the 80-20 rule

or Pareto concept apply. During this process the team identifies and tracks the key measures of

performance. A Money team is appointed for each commodity when required and consists of

representatives from Materials Management, Production, Maintenance and Finance.


A Commodity team consists of a commodity manager, a buyer/co-ordinator and a materials

engineer or technician. The manager will be responsible for obtaining commodities at the best

prices and making sure they are used effectively so that the total cost of ownership is reduced.

The buyer/co-ordinator will manage tenders, place high-value orders and make sure there is

neither too much nor too little stock. The materials engineer or technician will use his technical

expertise to make sure that commodities are used effectively by working closely with the suppliers

outside Iscor and the users in Iscor.

Total cost of ownership means all the money that a company spends to own the materials, goods

and services that are used to produce its products. This includes the purchase price, the amount

that is used, as well as the costs to keep it in the stores before it is used [22]. The guiding

principles within Materials Management can be summarised in the following table [23]:

Table 2.1: Guiding principles within Materials Management

Measure performance •

•

Measure performance against aggressive

targets.

Reward high performance

Operate strategically • Segment and classify commodities.

• Focus on commodities, not contracts.

a Keep systems and processes simple and

easy to manage.

• Manage commodities by total cost of

ownership, not by price.

Delegate decision making to the • Decentralise unless there is a compelling

lowest level to improve reason for centralisation

accountability • Empower people to make decisions and

hold them accountable for the results

Leverage suppliers • Work with suppliers to drive performance

improvement

• Consolidate supplier base

• Employ suppliers in non-strategic functions


2.5

Conclusion

As can be seen in the above, Materials Management has become an integral part of any cost

reduction- and efficiency improvement plans a company might have. Through compliance with

these principles as discussed in the chapter, Materials Management can render a service, which

fits the end-user needs. To accomplish all of the objectives, it is necessary to have timely,

trustworthy information, in a format that is useful. That is then the focus of the next chapter.


CHAPTER THREE

Information Systems

To be a successful manager, one must be able to recognise the information systems needed,

understand how new technologies create opportunities to do business more effectively, and accept

responsibility for participating in the planning and design of information systems. This ties directly

to the Materials Management principle of measuring performance, and operating strategically.

Many computer-generated reports are designed to enable managers to keep track of day-to-day

operations and to monitor the use of resources. Through effective design these reports can help

manage not only the use of resources, but also the total cost of ownership as defined in the

previous chapter.

3.1

How Information Technology Supports Business Activities

One of the first challenges to managers is to understand how information technology can be used

to support business activities, and therefor Materials Management activities. The concept of the

value chain helps explain which business activities can be analysed and perhaps transformed

through the use of information technology [15]. The value chain divides the company's activities

into value activities, that is the distinct activities it must perform to do business. Refer to

Figure 3.1.

Value activities consist of primary and support activities. Primary activities include inbound

logistics, operations, outbound logistics, marketing and service. Supporting activities include

delivery and handling of incoming materials. Figure 3.2 shows some support activities. The firm's

organisation [15], which includes activities such as general management, legal work, and

accounting, supports the entire value chain.

A system developed for an organisation should support primary activities in the value chain,

thereby providing a competitive edge in the market. The support activities can also be reinforced


SUPPORT ACTIVITIES

Inbound

Operations

Outbound

Marketing and logistics

logistics sales

w0-0 0 illl Materials handling Manufacturing Delivery Part assembly

Order processing Shipping

Advertising Promotion

Figure 3.1: Value activities E15]

Figure 3.2: Supp rt activities 05]

Organisation: Office automation

Human resources: Skills database

Technology: Computer-assisted design and manufacturing

Purchasing: On-line ordering links to suppliers

Service Inbound

Operations

Outbound

Marketing and logistics

logistics sales

al Materials handling Manufacturing Delivery Part assembly

wtY0 0

Order processing Shipping

Advertising Promotion

/ Service Repair

12 A MMIS in a Steel Industry — A Case Study

Supplier Firm Channel Buyer value value value value

by the use of information technology. For example, the management of human resources can be

supported by the design of a skills database.

The value chain of an industry works within a larger system of activities called the value system.

The value system includes the value chains of suppliers of the firm, of the channels through which

the firm distributes its products and services, and of the ultimate buyer [15]. The value system is

depicted in Figure 3.3. Interorganisational links with buyers' value chains can be facilitated with

the use of an information system. The system can provide valuable information to buyers and give

the manufacturer a competitive edge by providing important information linkages among dealers in

the same chain.

Figure 3.3: The value system [15]

The information-processing component of each value activity is being increasingly supported by

information technology. Inbound logistics activities can be supported by automated warehousing

systems that identify and monitor warehouse locations for incoming goods. On-line order entry

systems enable buyers to enter order data into devices that are directly connected to the firm's

order entry systems. These systems support outbound logistics activities and create

interorganisational links with the value activities of the firm's buyers.

Because information technology affects business at every level, more managers are using it to

support and to control their business activities. As a result, technology is being distributed at lower

and lower levels throughout organisations, and many managers are becoming involved in

decisions about computer systems [15].


Long-range plans

Strategic planning

Tactical

Operational

Budgets Tactical plans

Day-to-day transactions

Information technology can create competitive advantage by reducing the cost of value activities,

by effectively differentiating products and services to a firm's customers, and by enabling the firm

to expand its competitive scope.

3.2

A Manager's View of Information Systems

The process of management involves planning, organising, directing and controlling people and

activities. At each level of management, the responsibilities for handling these tasks differ. Top-

level managers are responsible for establishing organisational objectives. Middle-level managers

organise and control the organisation's resources to achieve these objectives, and lower-level

managers supervise day-to-day activities. Each of these three levels of management has different

information system needs. First-line supervisors need feedback about day-to-day activities,

middle-level managers need information regarding resources, and top-management use external

information to identify new business opportunities and to establish goals for the firm [15].

The activities of the firm are of three kinds: operational, tactical, and strategic planning, as shown

in Figure 3.4. Operations are the day-to-day activities of the firm that involve acquiring and

consuming resources. First-line supervisors must identify, collect and register all transactions that

result in acquiring or expending these resources. These day-to-day transactions produce data that

are the basis for operational systems.

Figure 3.4: Activities of an organisation [15]


STRATEGIC PLANNING 1==> Support for decisions

TACTICAL Demand reports

Special requests

Information needs

Payroll, Accounts receivable, Accounts payable, Inventory control, Billing, Scheduling, Sales order entry, Engineering

OPERATIONAL Scheduled

reports

Transaai ns

The tactical function is the responsibility of the middle-level managers. The time frame for tactical

activities may be month-to-month, or year-to-year. For example, orders for raw materials might be

monitored monthly, productivity might be assessed quarterly, and departmental budgets might be

reviewed annually. Data that can be used to predict future trends can be useful in helping

managers make these resource allocation decisions.

The top management of an organisation carries out strategic planning. They need to set the

organisation's long-range goals. In order to make these decisions, they need to know the activities

of competing firms, interest rates, and trends in government regulation.

Each of these levels requires different information systems, as shown in Figure 3.5. At the

operational level the primary concern is to collect, validate and record transactional data describing

the acquisition or disbursement of corporate resources.

Figure 3.5: A Framework for information systems [15]

These systems usually have the following characteristics [15):

Repetitiveness ;

Predictability,

Emphasis on the past,

Detailed nature,

Internal origin,

Structured form,

Great accuracy.


Tactical systems provide middle-level managers with the information they need to monitor and

control operations and to allocate resources more effectively. Transaction data are summarised,

aggregated or analysed. The characteristics are as follow [15]:

Periodic nature,

Unexpected findings,

Comparative nature,

Summary form,

Both internal and external sources.

The third level in the framework for information systems is strategic planning. Strategic planning-

level information systems are designed to provide top management with information that assists

them in making long-range planning decisions for the organisation. The systems often have these

characteristics [15]:

Ad hoc basis,

Unexpected information,

Predictive nature,

Summary form,

External data,

Unstructured format,

Subjectivity.

A summary of the characteristics of information systems is shown in Figure 3.6.

The base of operational systems has to be in place before tactical systems can be built. This is

because the data input into operational systems become the source of data for tactical systems.

However, tactical systems do not necessarily have to be in place for strategic planning systems to

be developed. This is because the latter rely heavily on external data sources [15].


Figure 3.6: A Summary of Characteristics of Information Systems [15]

Summary Classification of Information Systems

Characteristic Operational Tactical Strategic Planning

Frequency Regular, repetitive Mostly regular Often ad hoc

Dependability of

results

Expected results Some surprises may

occur

Results often contain

surprises

Time period covered The past Comparative Predictive of the future

Level of detail Very detailed Summaries of data Summaries of data

Source of data Internal Internal and external Mostly external

Nature of data Highly structured Some unstructured

data

Highly unstructured

Accuracy . Highly accurate data Some subjective data

used

Highly subjective data

Typical user First-line supervisor Middle managers Top management

Level of decision Task-oriented Control and resource

allocation-oriented

Goal oriented

Data are the individual elements of a transaction, such as item number, item quantity, and price on

a sales order transaction. Information is data with meaning for decision making. An information

system is a set of procedures organised to generate information that enables managers to review

operational, tactical, and strategic planning activities. A management information system is

designed to provide information for effective planning and tactical decision making.

Data is often aggregated to provide the information needed for tactical information systems.

Therefor, most management information systems need a foundation of operational-level data

systems.


3.3

Managerial Decision Support Systems

Decision support systems are designed to support semi-structured and unstructured decisions in

situations in which information is incomplete. They are developed to support decisions that are so

different each time that it would be hard to develop a standard set of procedures for programming

them. Such decisions may be specific and may relate to a one-time-only situation. A decision

support system should enable the decision-maker to apply the right decision rule to a problem,

rather than using standard rules that may not apply because of changing conditions. An effective

decision support system needs to incorporate the following features [15]:

Support of unstructured decisions. Figure 3.7 describes the types of decisions and degree

of decision structure for both structured and unstructured decisions.

Support for database access and modeling. Ideally, a decision support system should

have a database that serves as a repository of data for easy access and change. The

following step is to determine the type of access and the analysis needed. Refer to

Figure 3.8.

Support for all phases of the decision-making process. An effective support system should

support the three phases of the decision process: intelligence, design, and choice. At each

stage different operations occur. During the intelligence phase, data are collected as a

basis for diagnosing a problem or a situation requiring a decision. When alternatives are

weighed during the design phase, data may be manipulated or values may be assigned to

each alternative. A simulation of the results of the alternatives or statistics describing them

may be useful operations for choosing the best option.

Support for communications among decision-makers.

Availability of memory aids. In making decisions, managers constantly have to recall

information on the results of operations conducted ate previous times. Decision support

systems should provide these triggers.

Availability of control aids for decision making.


Figure 3.7: Types of decisions and decision structure [15]

Operational Tactical Strategic Planning

Structured decisions Accounts receivable Budget analysis New market planning

Inventory control Short-term forecasts Site location

Production scheduling Long-term forecasts Mergers

Unstructured

decisions

Cash management Budget preparation New product planning

Figure 3.8: Types of analysis in decision support systems [15]

Status Access Personal Analysis Model-based Analysis

Database used Operating data Operating data Wide-ranging data

Mostly internal Internal and external Internal and external

Access language Menu driven Very high level

language

Programming and

modeling languages

Designer Executive and I/S

staff

Executive and I/S

staff

Executive and I/S

staff

Evolution More reports Deeper analyses;

more data

Better techniques;

bigger models

Principal advantages Easy to use; quick

solution

Increased analytical

capability

Increased

organisational

understanding

3.4

Systems Development Life Cycle

`A systems development life cycle (SDLC) is a process by which systems analysts, software

engineers, programmers, and end-users build information systems and computer applications.'

[20] It is a project management tool used to plan, execute and control systems development

projects. The following general principles should be the ground rules for all systems development

[20].

40, Principle 1: Get the user involved. The individuals responsible for systems development

should make time for users, insist on user participation, and seek agreement from users on


all decisions that may affect them. Misunderstandings continue to be a significant problem

in systems development, however user involvement can help minimise these and help win

user acceptance for new ideas.

Principle 2: Use a problem solving approach. The SDLC is first and foremost a problem

solving approach to building systems. The classical problem solving approach is as

follows:

Identify the problem.

Understand the problem's environment and the problem's causes and effects.

Define the requirements of a suitable solution.

Identify alternative solutions.

Select the best solution.

Design and implement the solution.

Observe and evaluate the solution's impact. Refine the solution accordingly.

The idea is that all systems analysts should approach their projects using a problem solving

approach.

Principle 3: Establish phases and activities. In its simplest, classical form the SDLC

consists of four phases: systems analysis, systems design, systems implementation and

systems support. Modem variations added another phase, systems planning. Refer to

Figure 3.9. The phases are usually broken down into tasks that can be more easily

managed and accomplished.

Principle 4: Establish standards for consistent development and documentation. If no one

standard exists and analysts/programmers come and go, chaos would exist. In order to

promote good communication between this constantly changing base of users and

professionals there must be set standards. These standards usually describe activities,

responsibilities, documentation guidelines, and quality checks. Documentation should be a

working by-product of the entire systems development effort. Documentation stimulates

user involvement and reassures management about progress.

Principle 5: Justify systems as capital investments. When considering a capital investment,

two issues must be addressed. First, for any problem, there are likely to be several

possible solutions. The analyst should not accept the first one that comes to mind.

Second, each possible solution should be evaluated for feasibility, especially for cost-

effectiveness.


Principle 6: Don't be afraid to cancel or revise scope. A significant advantage to the

phased approach of the SDLC is that it presents several opportunities to reevaluate

feasibility. In the long run, cancelled projects are less costly than implemented disasters.

Principle 7: Divide and conquer. All systems are part of larger systems, and vice versa. It

is important to check that a smaller system interacts with the larger supersystem. By

dividing a large system into subsystems, it can be more easily managed, and the problem

solving process is simplified.

Principle 8: Design systems for growth and change. Flexibility and adaptability do not

happen on its own, it must be built into a system. Without it a system will become obsolete,

and the cost of maintaining it will become higher than the cost of starting over.

The different phases of the SDLC will be discussed in the following paragraphs.

Figure 3.9: The classical and modern SDLF [20]

yste analysis

Syste planning

Systems design

Systems analysis

Systems implementation

Systems support Systems design

Systems implementation

The Classic Life Cycle Systems support—

The Modem Life Cycle

3.5

Systems Planning

The systems planning function of the life cycle seeks to identify and prioritise those technologies

and applications that will return the most value to the business.' [20] This function is driven by the

cooperation of the system owners, who come from the ranks of executive management and higher

level middle management.


Systems planning consist of three phases [20]:

Study the business mission (also called the study phase).

Define information architecture (also called the definition phase).

Analyse a business area (also called the business area analysis).

The primary difference between systems planning and analysis is in the scope. Planning deals

with a larger part of the business, but in less detail. Figure 3.10 is a life cycle diagram that

illustrates the three planning phases.

Figure 3.10: Life cycle diagram of Systems Planning [20]

Planning-1

Study the business mission

(Planning analysis)

To systems analysis • •

Planned application development project

Any documentation from systems support

Business area requirements

t

Planning-3

Analyse business area

(Planning analysis)

Business requirements statement

Business area

V

Business plans

Information architecture and business areas

Business plans

Planning-2

Define an information architecture

(Planning analysis))

SS

Planning repository


The study phase. If information systems are to truly return value to the business, they need

to be aligned with the business mission. The fundamental objectives of the phase are :

To establish the mandate for strategic systems planning.

To build a working partnership between information systems management and top

business management.

To analyse enterprise strategies that may affect information systems.

The following activities (Figure 3.11) must be completed during the study phase [20]:

Establish the planning team. The first appointment should be the CEO, as this

shows management's commitment to the project. The executive management team

should then be appointed, as well as data analysts, to collect data, and a data- and

network administrator.

Define planning scope and expectations. The ideal scope is the entire business.

Whenever this is not the case, the scope should be clearly defined. Based on

interviews and group discussions, the scope of the project can be defined.

Identify business performance measures. This activity should identify the measures

used to measure business performance, not evaluate them.

Develop a project plan. This is based on the scope, and includes both a plan and a

budget for completing the next phase of the project (define an information

architecture).

Review findings and communicate planning vision. The planning team should now

make the decision as to continue the project to the next phase, or to terminate, and

whether or not to accept the proposed plan and budget.


Figure 3.11: Study phase activities [20]

All appropriate managers and

staff

Methodology and/or consultants

Role definitions

Planning project charter

( tudy-5 Review findings and

communicate planning

vision

(Planning team, executive sponsors,

managers, chief information officer)

...„Appropriate documentation

Study-1 Establish the

planning team

(Chief information officer and

executive sponsor)

Approval to start

Study-2 Define planning

scope and expectations

Organisation charts, context models, scope descriptions

(Executive sponsor, chief

information officer, and

planning team)

Role assignments

Planning repositories

Business performance measures

Project plan and budget

Scope 41--

Scope Study 4

Develop a project plan

(Planning team)

Study-3 Identify business

performance measures

(Planning team, with help

from managers)


❖ The definition phase. During this phase the information architecture must be defined. That

is, the vision and plan for using information technology and developing information systems

needed to support a business's mission. The fundamental objectives of the phase are:

To define a data-, application-, network-, information services-, and technology

infrastructure for future information systems.

To identify and prioritise logical business areas for further planning, or to identify

and prioritise application development projects.

The definition phase is triggered by the authority and funding to continue the planning

project from the study phase. These activities are [20]:

Model the enterprise. The enterprise model consists of people, activities, data and

networks.

Assess current business strategies. These include critical success factors for the

business, goals and objectives, who is responsible for the above-mentioned, etc.

Assess current information services and strategies.

Identify and prioritise business areas. After the business areas are identified, they

should be-ranked using the business and information systems assessments from

activity 2 and 3. Rankings should reflect business areas' relative importance to the

business as a whole, using the performance measures identified in the study phase.

Complete the new information architecture. Based on the proposed business areas,

the enterprise models should be subdivided into models that reflect those areas.

This includes information regarding data, activities, networks, technology and

people.

Identify and plan subsequent projects. Projects are now either sent to systems

development for systems analysis and design, or for business area analysis.

Review findings and approve the plan. A decision must be made to either continue

with the project, or make changes to the scope or budget.

❖ The business area analysis (BAA) phase. The purpose is to devise a plan that will lead to

highly integrated information systems applications for a business area. The fundamental

objectives are:

To identify business-level requirements for a shared database for the business

area.

To identify business-level requirements for a shared network for the business area.


To refine technical requirements for the business area database and networks.

To identify high-level business requirements for integrated applications in the

business area.

The typical activities of the phase is as follow [20]:

Establish the analysis team. The team must be cross-functional, consisting of

managers and/or supervisors from each relevant organisational unit.

Identify business area performance measures.

Model the business area. The enterprise models must now be expanded and

refined. These models will serve as a starting point for applications development.

Assess current business area and Information Systems (IS) performance.

Identify and prioritise development projects. The analysis team simply identifies or

partitions appropriate development projects on the models and prioritise them into a

sequence.

Plan application development strategy and projects. The plan includes a general

schedule for all development projects in the business area.

Review findings and approve the plan. As in the previous phase, findings and

recommendations should be reviewed.

3.6

Systems Analysis

`Systems analysis is the study of a current business and information system application and the

definition of user requirements and priorities for a new or improved application.' [20] Systems

analysis also consists of three phases:

Survey project feasibility (the survey phase).

Study and analyse the current system (the study phase).

Define and prioritise users' requirements (the definition phase).

The survey phase. This phase answers the question 'Is this project worth looking at?' The

fundamental objectives of the phase are:


J

Purchase order

Purchase order database (Read only)

Receiving notice 00.

Computer based

accounts payable

Supplier

Packing

Purchasing department

V C \

Freight receiving

system Purchase order

To identify problems, opportunities and/or directives that initiated the project

request.

To determine whether solving the problems, exploiting the opportunities and/or

satisfying the directives will benefit the business.

To achieve these objectives, one needs a very general understanding of the current

system. The survey phase is usually initiated by an unplanned application development

project from a system owner or system user. The following activities must be completed

[20]:

Conduct initial interview. The interview is with the project requester, and aims to

answer questions about the existing system, the objective for the new system, who

the end-users will be, the types of data necessary, etc.

Define project scope. One of the easiest ways to define scope is to draw context

models, which reflect the boundaries and scope of the system. Refer to Figure 3.12

Classify problems, opportunities, and possible solutions. Figure 3.13 is a sample

tool that documents an initial analysis of problems and opportunities, and possible

solutions.

Establish a proposed project plan. The plan should include estimated costs and

schedules.

Present survey findings and recommendations. The presentation is made to the

decision-making body for approval to continue the project into the next phase.

Figure 3.12: Context model [20]


Figure 3.13: Problem/opportunity survey matrix [20]

Problem/Opportunity Urgency Visibility Annual

benefits

Priority Solution

1 Response time to bid on sporting

events is excessive. We lose a lot of

possible contracts.

Fix within

six months

High $250,000 2 New development

2 Number of potential events is growing

faster than our ability to bid on those

events. The opportunity to bid on

additional, profitable events exists.

Fix within

one year

Medium $125,000 6 New development

3 Difficult to calculate estimated costs for

a bid. If you underestimate a bid, you

cannot charge the customer for excess

costs.

Fix within

three

months

High $50,000 4 Enhancement, then

new development

4 There is no historical database on

which to base future estimates.

Fix within

six months

Low $20,000 5 New development

5 We have recently purchased a

competitor, however, we have since

discovered fundamental

incompatibilities between our

respective eventschediiling data and

systems.

Need

immediate

fix, if

possible

High $75,000 1 Quick fix, then new

development

6 We have overbooked vehicles and

equipment for events and subsequently

incurred costly rental expenses to

legally cover obligations.

Need within

six months

High $2,500 3 Leave well enough

alone

7 We have occasionally booked events

only to discover that we didn't have the

'properly skilled' staff matched to the

obligations.

Need within

two years

Medium $10,000 7 New development

❖ The study phase. The phase answers the questions 'Are the problems really worth

solving?' and 'Is a new system really worth building?' The fundamental objectives of the

phase are as follows:

To understand the business environment of the system.

To understand the underlying causes and effects of problems.

To understand the benefits of exploiting opportunities.

To understand the implications of noncompliance with directives.

A MMIS in a Steel Industry — A Case Study

28

The following activities must be completed [20]:

Assign project roles.

Learn about the current system.

Model the current system. Data models, such as entity-relationship diagrams,

should be used, as well as process, people and network models.

Analyse problems and opportunities. The aim should be to find the problems, in

order to analyse it for cause and effect. This can be used to establish new and

revised objectives for a new and improved system.

Establish the new system's objectives. Objectives should be precise, measurable

statements of business performance that define the expectations for the new

system.

Modify project scope and plan (according to the above).

Review findings and recommendations.

A decision must be made to continue the project as is, to adjust the scope, cost or

schedule, or to cancel the project due to various reasons.

❖ The definition phase. The definition phase answers the question 'What does the user need

and want from a new system?' The fundamental objectives are:

To define business requirements that address problems identified with the current

system.

To define business requirements that exploit opportunities identified with the current

system.

To define business requirements that fulfills directives.

To offer system designers' absolute flexibility with regard to upcoming design

choices.


Identify requirements.

Model system requirements. Once again, four different models are required,

people, data, activities and networks. Refer to Figure 3.14.

Build discovery prototypes (if necessary).

Prioritise business requirements.

Modify project plan and scope.

Review requirement specifications.


Figure 3.14: Systems models [20]

Systems Design

'Systems design is the evaluation of alternative solutions and the specification of a detailed

computer-based solution'. [20 The three phases of system design are as follow [20]:

The selection phase.

The acquisition phase.

The design and integration phase.

The selection phase. There are two fundamental objectives in the selection phase:

To identify and research alternative manual and computer-based solutions to

support the target information system.

To evaluate the feasibility of alternative solutions and recommend the best overall

alternative solution.


Specify alternative solutions.


Analyse feasibility of alternative solutions. Feasibility analyses should not be limited

to costs and benefits. Most analysts use four sets of criteria: technical -, operational

-, economic -, and schedule feasibility. A matrix allows for a side-by-side

comparison of the different analyses of the candidates.

Recommend a system solution. A formal proposal must include project plans, size

estimates, candidate solutions and feasibility analysis.

The acquisition phase. The acquisition of software and hardware is not necessary for all

new systems. When it is necessary it is usually a difficult process. There are four

fundamental objectives:

To identify and research specific products that could support the recommended

solution for the target information system.

To solicit, evaluate and rank vendor proposals.

To select and recommend the best vendor proposal.

To establish requirements for integrating the awarded vendors products.

The activities necessary for this phase [20] are as follow:

Research technical criteria and options.

Solicit proposals from vendors. This requires the preparation of one of two

documents: a request for quotations (RFQ) or a request for proposals (RFP). The

RFQ is used when the choice about a specific product has already been made, and

the RFP when several products exist and competitive proposals and quotes are

invited.

Validate vendor claims and performance.

Evaluate and rank vendor proposals.

Award contract and debrief losing vendors.

Establish integration requirements.

The design and integration phase. This phase involves developing technical design

specifications. The objective of the phase is twofold:

To design a system that both fulfill requirements and are user-friendly.

To present clear and complete specifications to the computer programmers and

technicians.

The specific activities to be completed during this phase are:


Analyse and distribute data. The data model already developed during systems

analysis must now be refined, in order to have a model that will allow the

development of ideal file and database solutions.

Analyse and distribute processes.

Factor into design units. The above data and process models must be factored into

smaller pieces so that one individual can easily complete the design details.

Design computer files and/or databases.

Design computer outputs and inputs.

Design on-line user interfaces.

Present and review design.

Given the finished design units, two more components must be prepared:

An implementation plan that presents a proposed schedule for the construction and

delivery phase.

A final cost-benefit analysis that determines if the design is still feasible.

3.8

Systems Implementation

'Systems implementation is the construction of the new system and the delivery of that system into

production' [20] The trigger for systems implementation is the technical design statement. The

typical phases of systems implementation are:

❖ To build (or modify) and test networks phase. The fundamental objectives of the phase are

as follows:

To build (or modify) and test networks.

To build (or modify) and test unpopulated databases.

Figure 3.32 shows the activities to be completed [20].

Build and test networks (if necessary).

Build and test databases (if necessary).


To build and test programs phase. The fundamental objectives of the phase are as follow:

To develop a detailed plan to guide the development and testing of new or revised

computer programs.

To develop computer programs that accurately fulfills business process

requirements.

The most commonly performed activities are as follow [20]:

Plan for programming. The plan should include a review of the design

specifications, organisation of the programming team, and a detailed programming

plan.

Write and test new programs.

To install and test new system phase. The fundamental objectives are:

To install and test new software packages acquired from system vendors.

To conduct a complete system test to ensure the custom-built software and

acquired software packages work together properly.

To develop a detailed plan for converting from the old system to the new system.

The activities are [20]:

Install new software package (if necessary).

Test package (if necessary).

Conduct system test (if necessary).

Prepare conversion plan.

To deliver the new system into operation phase. The following objectives must be

accomplished:

Install files and/ or databases to be used by the new system.

Provide training and documentation for individuals that will be using the new

system.

Convert from the old system to the new system.

Evaluate the project and final system.

The activities are as follow [20]:

Install files and/or databases.

Train system users.


Convert to new system.

Evaluate project and system.

3.9

Systems Support

'Systems support is the on-going maintenance of a system after it has been placed into operation.

This includes program maintenance and system improvements.' [20] Systems support consists of

four on-going activities [20]:

Correct errors (also called maintenance).

Recover the system.

Assist users of the system.

Adapt the system to new requirements (also called re-engineering) [3].

Systems maintenance. The fundamental objectives are:

To make predictable changes to existing programs to correct errors that were made

during systems design and implementation.

To preserve those aspects of the programs that were already correct.

The steps that must be completed are [20]:

Define and validate the problems.

Benchmark the programs and application.

Understand the application and its programs.

Edit and test the programs.

Update documentation.

System recovery.

The occurrence of a system failure is inevitable. It generally results in an aborted program

and possible loss of data. The systems analyst usually fixes the program or acts as

intermediary between the end-user and those that can fix the problem.


❖ End-user assistance.

Users will always require additional assistance, no matter how well they have been trained.

The systems analyst will routinely observe the use of the system, conduct user-satisfaction

surveys and meetings, and log enhancement ideas and requests.

• Systems enhancement and reengineering. The objective is to modify or expand the

application system in response to constantly changing requirements. The activities to be

completed are [20]:

Analyse enhancement request.

Write simple, new programs.

Restructure files or databases.

Analyse program library and maintenance costs.

Reengineer and test programs.

3.10

Conclusion

Systems development is not a mechanical activity. There are no magic secrets for success, no

perfect rolls, techniques or methods. Systems analysis is the most critical part of information

systems development. It is during systems analysis that the existing business systems are

investigated, problems understood, and objectives, priorities and business requirements defined.

The quality of any subsequent systems design, implementation and support is dependent on good

systems analysis.

The systems life cycle in the context of this study will take place in a Steel industry. It is therefor

important to understand the industry and the characteristics thereof. The focus of the next chapter

is then the Steel industry and its characteristics.


CHAPTER FOUR

Characteristics of the Steel Industry

In the previous two chapters both Materials management and Information Systems have been described.

As the MMIS used in the case study is rooted in the Steel Industry, a quick review of the current market

trends and figures will be presented in this chapter. It is important to understand the background against

which Materials Management in this type of environment functions, as the current market trends exert

enormous pressure on continuous improvement capabilities and projects.

4.1

Basic Iron and Steel Industry

During the second quarter of 1998 a decline in the demand for steel products was experienced,

which is expected to continue during the third quarter [24]. During the third quarter, export efforts

will however be supported by the decline in the external value of the Rand. The increase in

interest rates during June 1998 is expected to take a heavy toll on total dispatches by the industry.

4.2

Structural Metal Industry

•:- Pipe Industry

The realisation of certain RDP projects is currently supporting the demand for small bore

pipe, although provincial governments may delay some of their spending due to budgetary

constraints. The absence of major construction projects is expected to curtail the demand

for large bore pipe during the third quarter [24].

❖ Plate and sheet metal works

In the immediate short term, a further decline in the demand for plate and sheet material

can be expected. As activities in this industry are sensitive to high interest rates, the


demand for drums, barrels, gas cylinders, water tanks, pressure vessels and earthmoving

equipment can only be expected to improve towards the middle of 1999.

4.3

Prospects for the Local Steel Market

A general improvement in total steel demand, within the South African industry, is only expected

towards the latter half of 1999 as high interest rate levels are expected to prevail during the

remainder of 1998. The Asian crisis will be having a severe impact on local steel demand during

the remainder of 1998 [24].

4.4

South African Steel Imports

Steel imports into South Africa increased to 111 770 tons during the first quarter of 1998, and are

expected to remain at a high level during the second quarter. The effects of a weakening and

volatile Rand on imported steel are likely to come into effect during the fourth quarter of this year,

and consequently third quarter imports are also expected to be relatively high [24].

4.5

Domestic Market

The domestic market is characterised by the following [26]:

A continuance of the decline in the demand for steel products from the mining sector for

the short-term.

A decline in the total dispatches to the manufacturing industry.

Punitive interest rates are curtailing activities in the building and construction sectors.

Steel imports remain on high levels.

Total steel demand is expected to decline further.


Business and consumer confidence is being impeded by the instability of the financial

markets, and therefor an improvement in total steel demand is only expected during the

latter half of 1999.

4.6

International Market

The international markets are however characterised by the following [26]:

The US economy is in its seventh consecutive year of expansion.

The European Union countries are experiencing relatively buoyant conditions in steel

consuming sectors.

The Asian steel prices continue to decline.

The Steel demand in South American countries is also under pressure.

4.7

Conclusion

As can be seen in Table 4.1 [26], the trend in the steel markets for the near future is not going

upwards, but will be decreasing. This chapter focussed on giving information regarding the steel

industry, its current trends, and characteristics. In the context of the study, what is important, is

that the economic situation of most company's within this industry will be of such a nature that

expensive computer systems may be placed on the back burner. The importance of relatively

cheaper systems, still delivering the same information and service, will be rising.

The next chapter describes the research process followed during the case study. It is important to

emphasize that the mini thesis as a whole is a research project, but that the next chapter provides

the guidelines for the specific case study done, as well as research in general.


Table 4.1: Movement expected in the steel sector i.r.o. 3 NI quarter 1998

Sector Current business

conditions

Decrease Sideways increase

Total steel consuming

industries

Below average X

Mining Poor X

Basic iron and steel industry Poor X

Cables and wire Poor X

Manufacturing Average X

Pipe industry Average X

Plate and sheet metal works Average X


CHAPTER FIVE

Business Research

The aim of this chapter is twofold. Firstly to form the basis for chapter six, the case study, and

secondly, to answer the question 'What is research?' and 'How is it done?' In Chapter one the

research objectives for the mini thesis were stated, as well as the plan to arrive at these objectives.

This chapter explains the actual process of doing business research, that it should be properly

planned and executed in order to gain insight into the research objective, and to arrive at a usable

answer. Be that that it is necessary to do more research, or to come to an effective conclusion to

the research question asked.

Where the rest of this mini thesis is investigative research, supplying background information and

sketching the larger picture, this chapter focuses on the actual process followed to evaluate the

system design, as well as making the comparison between the two systems.

5.1

The Nature of Research

The main question in the context of this study is 'What is research in a management setting?' [5] It

can be defined as any organised inquiry carried out to provide information for the solution of a

problem, or, '... is a careful inquiry or examination to discover new information or relationships and

to expand and to verify existing knowledge. It is the manipulation of things, concepts, or symbols

for the purpose of generalising and to extend, correct, or verify knowledge aids in the construction

of a theory or in the practice of an art.' [14]

Research contributes to more effective decisions in all functional areas of business. In research

facts and assumptions are assembled into a basis, for prediction of the outcomes of various

courses of action. The objective may also be to explain the forces that account for a certain

phenomenon. Research opportunities are found in all functional areas of business.


Applied research has value only to the extent that it assists management to make better decisions

[6]. It is the objective of this study to make a contribution to any manager's/decision maker's task

of choosing between a custom- or commercial MIS system.

The broadening of interest in more scientific decision making has been fostered by two factors:

The manager's increased need for more and better information, and

The availability of imported techniques to meet this need.

All managers face a 'make or buy' research situation from time to time. They often are ill equipped

to either [6]

Perform the data gathering and analysis job themselves, or to

Judge whether good value is received from the research.

For either situation a manager needs an understanding of the process of research design and

implementation.

5.2

Measurement

Measurement is the process by which hypothesis and theories are tested [6]. From a hypothesis is

deduced that certain conditions should exist in the real world, thereafter a measurement must be

put in place to ascertain whether these conditions do exist. If the conditions are found, they lend

support to the hypothesis, if not, the hypothesis is proved false. An important question is 'Just

what does one measure?'

Concepts used in research may be classified into objects and properties. Objects include the

'things' of ordinary experience, such as tables. People, books. Objects also include things, which

are not so concrete, such as attitudes, neurons and peer group pressures. Properties, on the

other hand, are the characteristics of the objects. For example, a man's physical properties may

be stated in terms of his weight, height and posture.

These and many other properties can be of measurement interest in a research study. Not only is

it a challenge to measure such constructs, but the researcher may find little agreement that the


properties chosen is the proper one's to study. The quality of a study depends on the adequacy of

the research design and the appropriateness of the measuring concepts and procedures.

Measurement has been defined as 'the matching of an aspect of one domain to an aspect of

another.' [6] This matching, often called mapping, is the operation of establishing correspondence

between properties in one area and properties in another set. Mapping from one set onto the

members of the other is done according to some rule of correspondence. The terms domain and

range are used to distinguish between the sets. The process is to assign or match each member

of a domain with a member of the range.

Some form of scale must be defined in the range. The observation of objects and properties from

the domain must then be transformed or mapped onto this scale. Several types of scales are

possible, the appropriate choice depends on what is assumed about the rule of correspondence.

Each scale has its own set of underlying assumptions about how the numerals in the range

correspond to the real-world observations in the domain. Four types of scale exist as can be seen

in the table below [6].

Table 5.1: Types of scale

Type of scale Characteristics of scale Basic empirical operation

Nominal No order, distance or origin. Determination of equality.

Ordinal Order but no distance or unique

origin.

Determination of greater or

lesser values.

Interval Both order and distance but no

unique origin.

Determination of equality of

intervals or differences.

Ratio Order, distance and unique

origin.

Determination of equality of

ratio's.


42

The ideal study should be designed and controlled for precise and unambiguous measurement of

the variables of interest. Since attainment of this ideal is unlikely, the sources of potential error

must be recognised and an attempt made to eliminate, neutralise or otherwise deal with it. Any

variation of score among the respondents should reflect true differences in their opinions.

However, four major error sources may contaminate the results [6].

The respondent as an error source

Opinion differences will come from certain characteristics of the respondent, such as

employee status, social class, traumatic experiences, reluctance to express negative

feelings, fatigue, boredom, etc.

Situational factors

Any condition that places a strain on the study can have serious effects on the outcome. If

the respondent feels that anonymity is not assured, a reluctance to express negative

feelings may be experienced.

The measurer as an error source

Careless mechanical processing — checking of the wrong response — can distort findings.

Incorrect coding, careless tabulation, and faulty statistical calculation can all have an

influence.

The measurement instrument as an error source

First it can be too confusing and ambiguous. The use of complex syntax and words

beyond comprehension is typical. A second deficiency is poor sampling of the universe of

items of concern. Seldom does the instrument explore all of the important issues.

What are the characteristics of a good measurement tool? It should be [6]:

An accurate counter or indicator of what is being measured.

Easy and efficient to use.

That is, it should be valid, reliable and practical.


Validity

This is the ability of a measurement tool to measure what is supposed and designed to measure.

It is the extent to which differences found with a measuring tool reflect true differences among

those being tested. This is difficult to ascertain as the differences are not known, which is the

precise reason for it being measured. One way to approach this question is to organise the

answer according to types of validity: content, criterion-related and construct.

Content validity is the extent to which it provides adequate coverage of the topic under study. If

the instrument contains a representative sample of the universe of subject matter of interest, then

content validity is good.

Criterion-related validity reflects the success of measures used for some empirical estimating

purposes. An opinion questionnaire, which correctly forecasts the outcome of an event, has

predictive validity.

Construct validity measures the presence of abstract characteristics for which no empirical

validation seems possible. In attempting to determine construct validity a set of other propositions

are associated with the results from measuring tool under consideration. If the measurements

correlate with each other, there is construct validity.

Reliability

A measure is reliable to the degree that it supplies consistent results. Reliability is concerned with

estimates of the degree to which a measurement is free of random or unstable error. It is not as

valuable as validity, but is much easier to assess. It is also frequently the only characteristic that

can be assessed.

Practicality

The scientific requirements of a project call for the measurement process to be reliable and valid,

while the operational requirements call for it to be practical.

The task facing the researcher is to arrive at an understanding of the major concepts of the study

and to measure their existence in some acceptable way. This calls for operational definitions of

these concepts and the translation into effective measurement procedures. This process consist

of four steps [6]:


Concept development.

Dimension specification.

Selection of observable indicators.

Combination of these indicators into indexes.

Concept development

Before a measurement tool can be developed, there must first be decided what it is that must be

measured. The concept to be measured, in the context of this study, is the list of features, which

should be included in an effective management information system, as described in paragraph 3.3.

Refer to Table 5.1, column 1.

Dimension specification

The various dimensions of the concepts under study should be specified either by empirical

correlation, or through deduction. Factor analysis or other statistical techniques may also be used

to determine concept components. Refer to Table 5.1, column 2.

Selection of indicators

Once the dimensions have been settled, indicators must be developed to measure each concept

element. Indicators are particular questions, scales, statistical measures, or other devices by

which the study concepts can be measured. For this study indicators must be selected to express

how the personnel working in the Industry section view the information system available versus the

custom system on test. Refer to Table 5.1, column 3.

Formation of indexes

When there are several dimensions of a concept, or different measures of a dimension, they

should be combined into an index. Use of more than one indicator lends stability to the scores and

improves the validity. Refer to Table 5.1, column 4.


Table 5.2: Development of research instrument

Concept development Dimension specification Indicator Indexes

Column 1 Column 2 Column 3 Column 4

Support of unstructured

decisions

- Available contracts

- Orders placed

- Orders delivered

- Orders delivered on-

time

- Stock availability

- Is information

regarding column

2 easily obtainable

from the system?

- Is information

clearly presented?

- Combine

results of

column 3

Support for database

access and modeling

- Orders

- RFQ's

- Contracts

- Article numbers

- Material groups

- Purchasing groups

- Vendors

- Does the system

efficiently process

information?

- Combine

results of

column 3

Support for all phases

of decision-making

process

- Data collection

- Choosing between

alternatives

- Simulation of results

of weighing of

alternatives

- Does the system

provide sufficient

graphs and

reports?

- Combine

results of

column 3

Support for

communication

between decision-

makers

- Identification of

possible problem

areas

- Does the system

provide adequate

support?

- Combine

results of

column 3

Availability of memory

aids

- On-time delivery

- Reliability of vendors

- Does the system

provide reliable

information?

- Combine

results of

column 3

Availability of control

aids

- Control of access to

database

- Control of access to

certain reports/graphs

- Is there a security

function that

supports control of

access?

- Combine

results of

column 3

Questions in column3 is a summary, or indication, of more detailed questions used in the research questionnaire. Refer to Appendix 5.1.


5.3

Data Collection

Sampling

The basic idea in sampling is that the analysis of some of the elements in a population provides

useful information on the entire population [6]. An element is the subject on which the

measurement is being taken, it is the unit of study. The population is the total collection of

elements about which inferences are made.

Sampling is based on two premises [6]. One is that there is enough similarity among the elements

in a population that a few of these elements will adequately represent the characteristics of the

total population.

Deming argues that the quality of a study is often better with sampling than with a census. He

suggests that 'Sampling possesses the possibility of better interviewing (testing), more thorough

investigation of missing, wrong or suspicious information, better supervision, and better processing

than is possible with complete coverage' [6]

Sampling also provides much quicker results than does a census. The speed of execution

minimises the time between the recognition of a need for information and the availability of that

information. Then, too, some situations require sampling. For example, when materials must be

destroyed in order to be tested. Sampling is also the only procedure possible if the population is

infinite.

Members of a sample may not fully represent the population, and values calculated from sample

data may vary from the population values. While some sample items underestimate the

parameter, others overestimate it. When the sample is drawn properly, variations in item values

tend to counteract each other. This counteraction results in a statistic (sample value) that is

generally close to the parameter (population value). For this effect, however, it is necessary:

That there be enough members in the sample, and

They must be drawn in a way to favor neither the overestimating nor the underestimating

tendencies.


The ultimate test of a sample design is how well it represents the characteristics of the population

it represents. In measurement terms the sample must be valid. Validity of a sample depends

upon two considerations [6]:

Accuracy. This is defined as the degree to which bias is absorbed from the sample. The

variance in measures due to some known or unknown influences that cause the score to

lean in some direction more than another has been counteracted in an accurate sample.

Precision. A second criterion of a good sample is precision of estimate. No sample will

fully represent its population in all respects. A sample statistic may be expected to differ

from its parameter as a result of random fluctuations inherent in the sampling process. It is

however desirable that the sample design produce a minimum error of estimate.

Sample size can be determined in two ways, neither of which will be discussed in full. One way is

to choose some sample size on a judgmental basis and then determine how much precision is

secured. A second approach is to determine the acceptable degree of precision and from that

determine the necessary size of sample.

Cost considerations are also often incorporated into the sample size decision.

The sample group used to test the MMIS, also has access to SAP, and uses the LIS module on a

regular basis. The sample group comes from the Materials Management environment within a

steel industry. This group is not representative of the entire steel industry, and does not cover any

other industry. The reason for exclusion is that the thesis concentrates on the specific part of an

industry. A questionnaire was supplied with the software, which everyone in the group had to

complete.

Survey Instrument Design

There are three strategic decisions that strongly affect the design of a survey instrument [6]:

The communication method chosen by which to conduct the questioning.

The degree of structure that is imposed on the questioning and response processes.

The degree to which the objectives of the study are to be disguised.

A MMIS in a Steel Industry - A Case Study 48

Communication method. Communication interactions between researcher and respondent are

either personal, impersonal or mixed in nature. The personal mode involves a one-on-one

relationship between interviewer and interviewee, where questions are asked and answered in a

structured way and recorded as such. In the impersonal mode the researcher depends upon a

printed instrument to carry the communication task. This instrument, a questionnaire, carries both

the instructions and questions to respondents, and provides space for them to complete their

answers. In the mixed mode, both of the above are utilised. In this project the questionnaire will

be used to gather information.

Process structure. With structured questioning the interviewer asks questions in a standardised

format and sequence. This makes it easier to develop a standard line of questioning that builds on

prior responses. In this study the process of questions and answers will be structured by the fact

that the questionnaire is prepared in advance and distributed with the program to the team

members.

Objective disguise. The decision to disguise the objective of a study depends on the type of

information required. When information is asked for at a conscious level, it is not necessary to

disguise the objective. When someone is asked for information which they are unwilling to

provide, it is necessary to disguise the questions and objective.

Instrument development process. The process of moving from the general management objective

or problem to specific measurement questions goes through four major question levels:

The management question — that problem which the manager must answer.

The research question — that basic information question(s) which the researcher must

answer in order to contribute to the solution of the management question.

The investigative questions — those specific questions which the researcher must ask

herself in order to answer the research question. There may be several levels of questions,

ranging from general to specific.

The measurement questions — those questions which respondents must answer if the

researcher is to gather the needed information.

These questions, as used in the research questionnaire, Appendix 5.1, can be summarised as

follow [6]:


Table 5.3: Research questions

Type of question Question

Management Whether to buy and use a custom written software package, or

a commercially available product.

Research Is the advantage of a commercially available product worth the

huge costs associated with it?

Investigative Are there more advantages than disadvantages to the

commercially available product?

Does the commercially available product support the business

functions?

How flexible is the system, i.e. how easy is it to change the

existing system?

Measurement

L

Name at least five advantages of the current SAP system?

Name at least five disadvantages of the SAP system?

Is it possible to determine the top ten vendors for a specific

period from the system?

Is it possible to measure the amount of contracts placed per

buyer for a period?

Has the system been adapted to suit your specific needs, when

required to?

The procedure to follow in developing a survey instrument vanes from case to case, but a general

approach consists of five major steps:

Information need determination. This step is concerned with adequate coverage of the

topic and with securing the information in its most usable form.

Data gathering process decisions. At this stage the manner by which data is to be

gathered must be decided.

Instrument drafting. This includes the drafting of specific measurement questions, where

both subject content and the wording of each question is decided.

Instrument testing. Once a first draft of the instrument has been developed it must be

tested, revised and taken to the field to be tested again.

Specification of procedures. This includes how the questions should be asked, the manner

in which it must be answered, and how the answers must be recorded.


5.4

Conclusion

Business research is a set of conceptual tools and techniques that enables a manager or

researcher to plan and execute a research project. This chapter aimed to give a broad outline of

these tools and techniques that were used to arrive at the research objective, as well as the

research questionnaire. In the following chapter the system created and written will be discussed,

where after the findings will be presented in chapter seven.


CHAPTER SIX

Case Study

The previous chapters described and gave detailed information regarding Materials Management,

Information Systems, the Steel industry, and methods of Business Research. This chapter will focus on

how they combine when a Materials Management Information System (MMIS) is investigated. The

knowledge gained from the previous chapters is applied in a production environment, especially the

systems development life cycle, as explained in Chapter 3. The results of the case study design are

presented in this chapter.

6.1

Opportunity

It is important that managers have access to timely and correct information. Within Materials

Management it is necessary to have information regarding vendors, the total quantity of orders

placed, invoice value of these orders, contracts being entered into and stock value. Materials

Management main activities can be broken down into the following subdivisions:

Order placement (including the issuing RFQ's);

Contract allocation;

Stock control;

Receiving of goods ordered;

Issuing of goods to end-users;

Vendor management;

Measurement of all of the above.

Materials Management needs to ask questions regarding all of the above, and the MMIS must be

able to answer them effectively and efficiently. The following is a summation of the relevant main

characteristics of the MMIS system and the SAP (LIS) system.


Table 6.1: Characteristics of MMIS and SAP

No MMIS SAP - LIS

1 Both MMIS and SAP can store, manage and report back on this information, although

the format differs:

1.1 Custom formats supply information as

needed.

Standard reports supply information, which

then have to be translated into own format.

1.2 If additional information becomes

important, the system must be changed.

However, the functionality excels at

creating own reports and queries.

Reports exist to gain access to additional

information outside original custom

specification.

1.3 Orders can be created only through

placing of an RFQ or if a contract exists.

Orders can be created through RFQ's,

requisitions, or without any references.

1.4 RFQ's are sent automatically through the

system.

RFQ's are sent automatically through the

system.

1.5 Contracts can easily be created and

maintained.

Contracts must be downloaded from the

mainframe system as still utilised by Head

Office.

1.6 Goods receipts are done with reference to

an order placed on the system.

Goods receipts are done with reference to

an order placed on the system.

1.7 Goods issue is done from stock in store. Goods issue can be done from stock, or

direct purchases received at stores.

1.8 Graphs can be selected or viewed for a

specific period relating to all of the above

information.

Multitudes of graphs can be viewed

relating to all business information

accessible.

1.9 Vendor management in terms of value

invoiced can be measured and managed.

Vendor management in terms of value

invoiced can be measured and managed.

1.10 The amount of money flowing from the

company can be measured and managed.

The amount of money flowing from the

company can be measured and managed.


53

6.2

Project/Case Study Scope and Exclusions

Scope

The MMIS, as written, is not intended for full-time use in a production environment. The

system is solely for comparison with the commercial system already in use. Both systems

will be subjected to the same set of standards and objectives, and a conclusion derived.

Exclusions

Tracking system for TCO models not included in scope of project. Furthermore the cost

code analysis was excluded as not being part of Materials Management's core business.

Relationship between problem and solution

The 'problem' or 'opportunity' as defined in paragraph 4.2 centers around whether

management must make a decision to:

Buy a commercially available system at an enormous cost, but with the

accompanying benefits and risks, or

Write a custom software system at a lower cost, but with its accompanying benefits

and risks.

The measurement devices must be of such a nature that the outcome enables

management to make a decision, or must at least show that no appreciable difference

exists.

6.3

Definition of Solution

Product Solution

A system was designed by using Microsoft Access 97. This package ensures readily

available support form Microsoft and is not unduly expensive. The system provides for

information to be stored in a database, with access to various reports and graphs. Seen

against the background of the main Materials Management activities, the system makes


provision to either place an order through issuing an RFQ, or through an existing supply

contract. Stock control is exercised by drawing a report showing all stocks available in the

store, which is updated as goods are received or issued. Using a detailed report can

separately monitor the receiving of goods, and the subsequent issuing thereof. Vendor

management and control is made possible by a report showing the top five vendors, as

measured by amount paid out to them during the month. A complete set of measurement

graphs is available to supply control aids for the responsible managers.

Refer to Appendix 6.1 for a detailed discussion, as well as Appendix 6.4 for user manual.

Process Solution

The low-level flow charts, Figure 6.1, show the process followed in the programming.

IT Technical Solution

It is not necessary to invest in a large network or hardware in order to implement the

software. Current computers and networks that are available and running on Windows and

Office can be utilised.

6.4

Systems Benefits

The benefits of the two systems can be seen summarised in Table 6.4. Although some are mutual

to both systems, quite a lot can only be seen as an advantage of one of the systems. Where the

smaller system may be easier to implement, the larger system supports the total business

requirement, etc.


Table 6.2: Systems Benefits

No MMIS SAP - LIS

1 Summary format Integrated System.

2 In-time updates of information In-time updates of information.

3 Smaller system is easier to implement,

support and maintain

Supports total business requirements.

4 Ease of user training User friendly as system knowledge

increases.

5 Inexpensive system to create and

implement

High degree of support for broad range of

management decisions.

6 System bugs can be rectified as soon as

possible.

Security measures to keep sensitive

information safe, is of a very high standard.

7 User friendly.

8 Easily implemented within a short

timeframe.

9 High degree of support for specific

Materials Management decisions

10 High degree of support for database access and —modeling.

11 System response time high. System response time high.

12 System can be developed in a short time

span.

System adaptation to specific organisation

environment takes a long time.

6.5

Systems Risks and Concerns

The various risks and concerns associated with the two systems are summarised in Table 6.5.

The disadvantages range from the large system being very expensive to implement, and the

smaller system having a limited number of users in a network environment.


56

Table 6.3: Systems Risks and Concerns

No MMIS SAP - LIS

1 Not an integrated system with regards to

total business requirements.

No report totals in SAP standard reports

(summary format).

2 Does not support total business

requirements/activities.

Complicated to implement, with a medium

to long timeframe.

3 System not updated automatically when

new releases of software become available.

System not updated automatically when

new releases of software become

available.

4 Number of users of the system on a

network environment is limited.

Very expensive to buy and implement.

5 A limit exists on the number of records and

relationships that can be created in one

application.

System support and maintenance difficult.

6 System bugs can only be rectified, as new

releases become available.

6.6

Impact and Dependencies

Impact

System: The proposed system does not impact on any other system or process as no

information from the system is used as input to another system.

Materials Management environment: The outcome may influence future decisions

regarding whether to buy any commercially available software packages, or to write a

custom system reflecting the unique characteristics found in any business environment.

Dependencies

This is a stand-alone system in Access and is not dependent on any other system or

software, as no information is received from an outside source.


6.7

Key Assumptions

To simplify the process, for first-order analysis purposes, Materials Management is seen as an

independent module, whereas in the business environment there is definitely interaction with

Finance, Production and Marketing.

6.8

Systems Diagrams

'Data modeling is a technique for organising and documenting a system's data' [20]. There are

numerous data modeling tools, an example is entity relationship diagrams. An entity relationship

diagram (ERD) is 'a data modeling tool that depicts the associations among different categories of

data within an information system' [20]. ERD's describe the logical requirements for a system.

These models are analysed to structure data so that it is flexible, non-redundant, and easy to

understand. Refer to Appendix 6.2 for low-level diagrams of the MMIS system.

6.9

Systems Characteristics

As described in Appendix 6.1 the system consists of various databases, forms, tables, queries and

reports. All of these are interrelated to each other, and updates information as new inputs are

made into the system. Refer to Appendix 6.3 for an example as was used in the MMIS system.


6.10

Conclusion

Taken into account the business environment, and the research objective, a syttem was

developed within certain limits. This chapter described the scope, exclusions, and the system

solution devised. This system was used in the research to ascertain whether future Materials

Management systems should be bought ready to use, custom written, or if the question requires

further research.


CHAPTER SEVEN

Ca Study esults

As mentioned before, eleven (11) of the Materials management team tested the system, and

completed the questionnaire. The results can be summarised as follows:

7.1

The Management 41)

111

(Refer to Question 1 of Research Questionnaire, Appendix 5.1)

This question was aimed at making a recommendation whether to buy and use a custom written

software system, or a commercially available one. The responses can be summarised as follows:

Figure 7.1: Representation of response to management question

As can be seen in the above graph, sixty percent (60%) of the respondents chose the SAP

system. The reasons for the choices are listed below:.


Table 7.1: Reasons for choice between MMIS and SAP

MMIS SAP

Easier to understand An integrated system

Cheaper The reporting function is more powerful when

handling larger volumes of information

More flexible than SAP SAP supplies more detail information

Sufficient for the needs of a smaller

company

Within the financial reach of a smaller

company

Remarks were made regarding the specific application of such a system. That is, within a smaller

company, a custom written system will be sufficient for the information needs. However, within a

large company where integrated information is required, a larger system, like SAP, will supply

better quality information.

7.2

The Research Chilesbon

(Refer to Question 14 and 15 of Research Questionnaire, Appendix 5.1)

These questions focused on the influence of costs on decision making. As can be seen below

eight out of ten of the respondents indicated that the costs associated with SAP were excessive.

That represents eighty percent (80%) of the sample group.

Figure 7.2: Distribution of opinions on SAP costs


When further analysing these two groups, it was found that half of the group thinking the costs are

excessive still believes that the associated advantages are worth the costs. The other half

opposed the before mentioned idea. In the group thinking that the costs are acceptable, all

believed that the associated advantages are worth it. The costs can be represented as sixty-

seven (67%) thinking that the costs are excessive, as to thirty-three (33%) thinking it is worth the

advantages.

Figure 7.3: Acceptability of SAP costs

Finally, when asked to choose between the two systems, seventy (70%) chose the custom written system

(or MMIS), indicating that the costs play a role in the decision process. It was also mentioned that the

environment wherein the information is used is an important influence on the decision.

Figure 7.4: Distribution of decision between SAP and MMIS


Very difficult

Conflicting ns ers

E Sy Difficult

p SAP 2 3 2 3

7.3

The investigative Question

(Refer to Question 8 and 13 of Research Questionnaire, Appendix 5.1)

These questions tested the perceptions of the sample group regarding ease of implementing

adaptations to the SAP system. Two respondents indicated it is easy to implement changes to the

SAP system, representing twenty (20%) of the sample group.

Figure 7.5: Ease of SAP implementation

E sy

Difficult

Very Conflicting difficult ans ers

However, fifty percent (50%) indicated it was either difficult or very difficult to make changes to the

SAP system. This indicates that the perception exists, or that it is, very difficult to change a

commercially available system to suit individual needs or situations.


ow.

7.4

The easurement Question

(Refer to Question 2, 9 - 12 of Research Questionnaire, Appendix 5.1)

These questions probed the availability of information as and when required. In total, sixty percent

(60%) of the respondents indicated that SAP supplied information more efficiently. However,

when asking for. more detailed information the smaller system supplied it in a more usable and

easier-to-reach fashion.

Figure 7.6: Response on availability of information

7.5

Further Comments

(Refer to Question 16 of Research Questionnaire, Appendix 5.1)

Some final comments made by the participants can be summarised as follows:

A custom written system will be the better option in a low risk, low budget environment, or

as an introductory information system for new vendors.

Seen from the view of a big company, the two systems are not comparable. Both systems

in their own environment are excellent.

A good system is user friendly and usable by everyone involved.


7.6

Conclusion

The most important conclusion is that while the smaller, custom written system is not ideally suited

for every application within a larger company, it will be well suited to a smaller company with less

integrated system needs.

The financial considerations also play a large role as it definitely influences the final decision: The

smaller system will suit a smaller company and so also the commercially available system a larger

company.

Ease of adaptation is definitely in favor of the smaller system, and detailed information on certain

subjects is more easily available on these types of systems.


CHAPTER EIGHT

Conclusion

In the first chapter a problem was defined that had to be solved during the ensuing investigation.

The question was defined as being whether it is better to buy a commercially available software

system off the shelve, or to design a custom written system for the business.

In order to solve this question research was done regarding materials management, the steel

industry, systems development and business research methods. It is shown that Materials

Management has become an integral part of any cost reduction- and efficiency improvement plans

a company might have. It is, however, necessary to have timely, trustworthy information, in a

format that is useful.

Systems development is shown not to be a mechanical activity. There are no magic secrets for

success, no perfect rolls, techniques or methods. Systems analysis is the most critical part of

information systems development. It is during systems analysis that the existing business systems

are investigated, problems understood, and objectives, priorities and business requirements

defined. The quality of any subsequent systems design, implementation and support is dependent

on good systems analysis.

The systems life cycle in the context of this study will take place in a Steel industry. It is therefor

important to understand the industry and the characteristics thereof. The trend in the steel

markets for the near future is not going upwards, but will be decreasing. What is important, is that

the economic situation of most company's within this industry will be of such a nature that

expensive computer systems may be placed on the back burner. The importance of relatively

cheaper systems, still delivering the same information and service, will be rising.

Business research is a set of conceptual tools and techniques that enables a manager or

researcher to plan and execute a research project. This chapter aimed to give a broad outline of

these tools and techniques that were used to arrive at the research objective, as well as the

research questionnaire.


Taken into account the business environment, and the research objective, a system was

developed within certain limits. This system was used in the research to ascertain whether future

Materials Management systems should be bought ready to use, custom written, or if the question

requires further research.

In summary the research objectives were defined as being threefold. The first, to program an

information system, was accomplished successfully as can be seen in a chapter six. The program

was implemented and tested by a sample of Materials Management personnel. The most important

conclusion is that while the smaller, custom written system is not ideally suited for every application

within a larger company, it will be well suited to a smaller company with less integrated system

needs. The financial considerations also play a large role whereas the smaller system will suit a

smaller company and so also the commercially available system a larger company. Ease of

adaptation is definitely in favor of the smaller system, and detailed information on certain subjects

is more easily available on these types of systems.

The findings also document the comparison between the two types of systems as defined in the

second research objective. These findings show that the information system should suit the

application and the environment in which it is used.

These findings are only an indication of possible behavior and outcomes within a certain

environment. Further study in this field would be possible to ascertain within a larger sample size if

the outcomes stay the same.

A MMIS in a Steel Industry - A Case Study 67

CHAPTER NINE

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of Quality, Irwin.

Macbeth, DK, Ferguson, N, 1994, Partnership Sourcing — An Integrated Supply Chain Approach,

Pitman Publishing.

Matthews, DQ, 1971, The Design of the Management Information System, Auerbach Publishers.

Mellville, Stuart, Goddard, Wayne, Research Methodology: An Introduction for Science and

Engineering Students, Juta and Co.

Miller, I, Freund, John E, Johnson, Richard A, 1990, Probability and Statistics for Engineers,

Prentice-Hall International Editions.

Murdick, Robert G, Ross, Joel E, 1974, Information Systems For Modem Management, Prentice-

Hall.

Rummel, J Francis, Ballaine, Wesley C, 1963, Research Methodology in Business, Harper and

Row

Schultheis, R, Sumner, M, 1989, Management Information Systems: A Manager's View, Irwin.

Sloman, Morris, 1994, Network and Distributed Systems Management, Addison-Wesley.

Stallings, William, 1993, Computer Organisation and Architecture, Macmillan Publishing Company.

Stuart, F Ian, McCutcheon, David, Winter 1995, "Problem Sources in Establishing Strategic

Supplier Alliances", International Journal of Purchasing and Materials Management, p 3 — 8.

Van Biljon, Ernst GB, 1996, "Partnerships Between Your Procurement Department and Suppliers",

Supply Chain, vol. 2 no 1, p 15 — 18.


Whitten, Jeffrey, Bentley, Lonnie, Barlow, Victor, Systems Analysis and Design Methods, Richard

D

http://mm&[email protected]

http://infodeli.iscorltd.co.za/materials/comman.htm

http://infodeli.iscorltd.co.za/materials/guiding.htm

http://www.iscorltd.co.za/brief/steeldom.htm

http://www.iscorltd.co.za/brief/steelint.htm

http://www.iscorltd.co.za/brief/steel.htm

http://www.mincom.com/mims/product/material.html

http://w3c//dtd.html

http://www.cba.bgsu.edu/html/purch.html


APPENDIX 5.1

Research Questionnaire for MMIS vs. SAP (LIS)

Which of the two systems (MMIS and SAP (LIS)) will you prefer to use?

MMIS

SAP (LIS )

1.1 Why?

Which of the two systems (MMIS and SAP (LIS)) supplies Materials Management information

the more efficiently when required?

MMIS

SAP (LIS )

Which of the following best describe the MMIS system:

Easy to use, supplies information as when required

Easy to use

Easy to use, doesn't supply information as and when required

Complicated to use

4.

4.1

Are there possible advantages of SAP (specifically LIS)?

Yes No

What is in your opinion, the five biggest advantages of SAP (specifically LIS)?

5. Are there possible disadvantages of SAP (specifically LIS)?

Yes

No

5.1 What is in your opinion, the five biggest disadvantages of SAP (specifically LIS)?

6.1

Are there possible advantages of MMIS?

Yes No

What is in your opinion, the five biggest advantages of MMIS?

7.1

Are there possible disadvantages of MMIS?

Yes No

What is in your opinion, the five biggest disadvantages of MMIS?

Which system supplies information regarding contracts more effectively?

Which system supplies information regarding orders more effectively?

Very difficult

Difficult

Easy

Very easy

MM IS

'SAP (LIS )

MM IS

SAP (LIS )

8. Rate the ease or difficulty to make changes or corrections to the SAP programming.

Which system supplies information regarding RFQ's more effectively?

M MIS

SAP (LIS )

Which system supplies information regarding vendors more effectively?

MMIS

SAP (LIS )

Can the SAP LIS system be adapted to individual needs?

Yes

No

13.1 Rate the ease of adaptation of SAP to individual needs.

Very difficult

Difficult

Easy

Very easy

How do you consider the costs associated with the introduction of SAP:

Excessive

Acceptable

Low

Very Low

14.1 Are the advantages of the SAP system worth the costs associated?

Yes

No

Motivate:

15.

15.1

15.2

If you could choose, would you buy SAP or a custom written system?

Custom written system SAP (LIS )

Does the associated costs influence your decision?

Yes No

If you answered no, why?

16. If you have any other comments on the two systems, please write them down here.

Thank you for your time and response

APPENDIX 6.1

Product Solution Microsoft Access

As mentioned before, Microsoft Access was used to program an MMIS system, which can

be used in the Materials Management environment. The following is a brief description of

how Microsoft Access functions, and how it was used in this project.

1.1

What is Microsoft Access?

Microsoft Access is a database management system for Windows, which is used to organise and

manage information [5]. Custom applications can be built in an effective way in order for

information to be extracted and viewed.

Microsoft Access uses tables to store information, and relationships, queries, forms and reports to

organise, view and manipulate information.

1.2

Why Use MS Access?

Microsoft Access is an excellent tool for [5]:

database management, that is, storing information in an orderly fashion,

extracting information in a format usable to a user (manager).

It is also easy to use, is Windows compatible, and can therefor be operated on any computer that

supports Windows.

The Visual Basic for Access (VBA) programming language is used to create an application that

utilises a graphical user interface. Powerful, full-featured applications can be created that exploit

the key features of Microsoft Windows.

1.3

What Is a Database?

A Database is a collection of information that is related to a particular topic or purpose [5]. The

key to efficient storage and retrieval in a database is to plan the process beforehand. It is

important to identify what the database must be able to do, in order to create the best solution.

The following questions must be considered:

•:. Which information must be retrieved from the database?

Which separate subject areas exist for which information must be stored?

How are these subjects related?

Which facts must be stored for each subject?

1.4

Database for the MMIS

Information regarding Materials Management objectives must be stored and retrieved form the

database. This includes Request For Quotations (RFQ), contracts, orders, goods received,

goods issued and stock. These subjects are all interrelated through the fact that they follow

sequentially on each other.

A RFQ must be issued whenever a new order must be generated. This triggers the vendor to

issue a price quotation for a specific article. When the RFQ is received back, using the RFQ

number and typing in the relevant information can generate an order. An order tells the vendor

when the specific article must be delivered. When delivery takes place, the article is received by

using the goods received function.

Thereafter it is issued to the end-user through goods issued. Stock is the result of more receipts

than issues.

1.5

Forms

Data is information the user wants to store and refer to again. In Microsoft Access, data can be

text, numbers, dates, and pictures. The easiest way to enter data is through the use of forms.

The user enters the data in a textbox, which is then stored in a table.

A record is a set of information that belongs together, such as all the information on an order. A

database consists of tables that hold many records.

Microsoft Access creates forms that can do calculations, look up information, and send a warning

message when information entered is wrong [5].

For example:

Delivery date on order > Current date

Positive quantity

Contract end date > Contract start date

Positive quantity

1.6

Tables

A database table is a collection of data with the same subject or topic [5]. One table contains for

example, information regarding articles, such as for instance article number, description, and unit

size. A MS Access database is a collection of tables, with related information stored in each. A

table consists of both fields and records. A field appears as a column in the table and contains a

category of information, such as the article number or description. Each record appears as a row

in the table and contains all the information about a specific article.

For example:

Order table contains information related to orders — order number, article number, vendor,

unit (quantity).

1.7

Queries

After creating the database and storing the information, the user would like to extract it in a useful

manner. A query defines a group of records that the programmer wants to work with [5]. A query

is a request for a particular collection of data, and the answer is called a dynaset. The records in

a dynaset can include fields from one or more tables. A query can be used to sort data or to view

a subset of all the data in a database. It can also be used to view the same information in

different ways. Four different types of queries exist: update, select, delete and cross tab.

For example:

Recordset for Report to define view per buyer shows number of orders for certain period

and the value of the orders.

1.8

Reports

Although the information in a table or query can be printed directly, a report presents the

information in an easier:to-read, more professional looking format. A report can combine data

into groups, and calculate totals, displays headers and footers [5].

For example:

Total number of RFQ's sent out per buyer per period

Total number of contracts per buyer per period

Number of orders outstanding per buyer per period.

APPENDIX 6.4

User Manual

The manual is designed to take new users step-by-step through the process of installing,

running and using MMIS.

1.1

How to install MMIS

Copy the five (5) files on the disk to a directory on the hard drive named c:\mmis. Unzip the files

and ensure that the files are in the correct location.

1.2

How to run MMIS

Open Access 97, a logon window will appear asking for a name and password. Type in 'admin' in

both lines. Click on 'OK'.

rornis) MISS irg C:),mmis‘MI55cfg mmisV4155cfg C: ‘UNZIPPEIVRGFILE‘MI55prg

MO.

When the above window appears, choose 'open an existing database' and the file c:\mmis\miss.

Click on 'OK'. The main menu will appear.

1.3

Security

For security purposes three (3) user profiles were defined, namely:

Admin — a user that administrates the system , and may run and make changes to system

(unrestricted access);

Codifier — a user who may register new article numbers, contracts, etc, and may run

system and draw reports;

Buyer — a user who may run system and draw reports.

Stores — a user who may issue and receive goods as well as draw reports.

1.4

Main Menu

The screen has the following buttons for further transactions:

RFQ's: for processing RFQ's and subsequent placement of orders;

Contracts: for processing RFQ's and subsequent placement of orders;

Orders received: for processing information when goods are delivered, or to issue such

goods to end users;

Other entry screens: for adding/deleting information regarding article numbers, contracts,

buying groups, etc.;

Reports: for drawing reports on above mentioned actions;

Exit to database window: to exit to database to make design changes.

Exit (system): to exit program and access.

1.5

RFQ's

The system allocates an automatic number to the RFQ. Information regarding quantity, unit of

order, tender date, article number and chosen vendor must be supplied. Stock type and

purchasing group is fixed and automatically drawn in when the article number is chosen. The

same applies to the vendor telephone numbers and contact person.

Click on the 'new order' button to place an order with reference to a RFQ. A screen will appear

requesting a RFQ number. Choose the applicable number and click on 'OK'. The orders entry

screen will appear, supplying relevant information. Type in quantity required, expected delivery

date, article number and vendor. Click on 'save' to transmit to vendor. Click on the 'exit' button

when finished.

1.6

Contracts

Follow the same procedure as described in 1.4, only selecting relevant contract to place order

against.

1.7

Orders Received

When goods are delivered to the stores, this option is used to enter the information against the

relevant order. Choose the article number, in the Description field choose 'Stock Received',

supply the quantity received, as well as the order number.

The same screen is used to issue goods to the end users. Follow the same procedure, only

choosing 'Stock Issued' in the Description field.

Both transactions update the stock value.

Stock R345.00 ••••••••• •• • • •• • •••• • a • •

, . . Stock

XXXXXXKXXXXXXX

R0.00

cccccccc

1.8

Other Entry Screens

The above screen shows the various inputs that can be made into the database.

The above is an example of the entry screen. Supply the article number and name, choose the

relevant material group, enter the price and the type (stock or consumable).

a •

w„,...,....„...

1.9

Reports

The above screen shows the possible reports that can be drawn from the system.

Orders against contracts: Shows the % of orders placed against registered contracts.

Orders graph: Displays amount of orders placed versus order value per specified buyer

for a period.

Delivery reliability: To view reliability for specified period, per purchasing group. Displays

number of outstanding orders, % of outstanding orders, number of orders placed, and

delivery reliability (%).

Stock: Displays stock value for the specified material group and period in report format.

Stock graph: Displays in bar chart format stock value against total material value.

Top five vendors: Displays the top five vendors in decreasing order, measured by Rand-

value spent per period specified.

Top five vendors graph: Displays the same information as above in both bar chart and pie

chart format.

Exit: To exit back to main menu.

1.10

Exit

Click on this button to exit the system.

1 CO

Veridorart4,

"'Microsoft Adeess - - (Relationships ) .00101111, ..C‘~

111D Elle edit view aelationshiPs Dols Window t

ID- Ur. [ ffi tb 1, 19n

Articles •~

Artidefto Article MGroupNo Price Type

OrderNo OrderDate Ref No ArticleNo Quantity Unit

PCitoupvIlt-

VendorNo Vendor Tel(a) Tel(h) Contact

ortraOljeitft

Contractrdo VendorNo ArticleNo StartDate EndDate Price

RFQId VendorNo ArtideNo Quantity Unit TenderDate

1-7 1-7171cAPs mErm.1-71-1_

Friday, December 11, 1998

Security Information Page: 1

Users

User Name Groups that User Belongs To

admin Admins, Users

Flora Codifier, Users

Kobus Stores, Users

Martin Buyer, Users

Groups

Group Name Users that Belong to Group

Admins admin

Buyer Martin

Codifier Flora

Stores Kobus

Users admin, Flora, Kobus, Martin

C:\mmis\MISSprg.mdb

Table: Articles

Friday, December 11, 1998 Page: 1

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MGroupNo No MS Sans Serif False -2147483640 0 False Neither Sunken 2 Center

65 786



Back Color: Border Color: Border Style: Caption: Display When: Font Bold: Font Name: Font Underline: ForeColor: HelpContextld: Name: Special Effect: Text Font Char Set: Visible:

-2147483633 0 All Pages Articles Entry Always Yes Times New Roman False -2147483630 0 Labe110 Flat 0

True

Back Style: Border Line Style: Border Width: ControlType: Event Proc Prefix: Font Italic: Font Size: Font Weight: Height: Left: Section: Text Align: Top:

Width:

AllowAutoCorrect: Back Color: Border Color: Border Style: Can Grow: ColumnHidden: ColumnWidth: ControlType: Display When: Enter Key Behavior: FilterLookup: Font Italic: Font Size: Font Weight: Height: Left: Name: Section: Status Bar Text: TabStop: Text Font Char Set: Visible:

Transparent Solid Hairline 100 Label() False 18 Bold 515 72 1 Left 65

2527

True -2147483643 0 First Page False False 600 109 Always False

1 False 8 Normal 270 5184 MGroupNo 0 Link to the MAterial Group True 0

True

Label: MGroupNo

Back Color: Border Color: Border Style: Caption: Display When: Font Bold: Font Name: Font Underline: ForeColor: HelpContextld: Name:

Label

-2147483633 0 All Pages Material Group Always Yes MS Sans Serif False -2147483630 0 MGroupNo Label

Back Style: Border Line Style: Border Width: ControlType: Event Proc Prefix: Font Italic: Font Size: Font Weight: Height: Left: Section:

Transparent Solid Hairline 100 MGroupNo_Label False 8 Bold 285 5256 1



Special Effect: Text Align:

Top: Width:

Flat Left

720 3666

Tag: Text Font Char Set: Visible:

DetachedLabel

0

True

Text Box: Price

After Update: Auto Tab: Back Style: Border Line Style: Border Width: Can Shrink: ColumnOrder: Control Source: Decimal Places: Enabled:

Event Proc Prefix: Font Bold: Font Name: Font Underline: ForeColor: Height: Left: Name: Section: Status Bar Text: TabStop: Text Font Char Set: Visible:

Label: Price Label

Back Color: Border Color: Border Style: Caption: Display When: Font Bold: Font Name: Font Underline: ForeColor: HelpContextld: Name: Special Effect: Text Align:

Top: Width:

[Event Procedure] False Normal Solid Hairline False Default Price Auto True

Price No MS Sans Serif False -2147483640 270 9000 • Price 0 Price of the Article True 0

True

-2147483633 0 All Pages Price Always Yes MS Sans Serif False -2147483630 0 Price Label Flat Right

AllowAutoCorrect: Back Color: Border Color: Border Style: Can Grow: ColumnHidden: ColumnWidth: ControlType: Display When: Enter Key Behavior: FilterLookup: Font Italic: Font Size: Font Weight: Format: HelpContextld: Locked: Scroll Bars: Special Effect: Tablndex: Text Align: Top:

Width:

Back Style: Border Line Style: Border Width: ControlType: Event Proc Prefix: Font Italic: Font Size: Font Weight: Height: Left: Section: Tag: Text Font Char Set: Visible:

True -2147483643

0 First Page False False 2310 109 Always False

1 False 8 Normal Currency 0 False Neither Sunken 4 Right 65

1062

Transparent Solid Hairline 100 Price_Label False 8 Bold 285 9000 1 DetachedLabel 0

True 720 1092

Combo Box: Type AllowAutoCorrect: True

Auto Expand: True

Back Color: -2147483643

Back Style: Normal

Border Color: 0

Border Line Style: Solid

Border Style: First Page

Border Width: Hairline



Bound Column: Column Heads: ColumnOrder. Control Source: Decimal Places: Enabled: Font Bold: Font Name: Font Underline: ForeColor. HelpContextld: Limit To List: List Width: Name: Row Source: Special Effect: TabIndex: Text Align:

Top: Width:

Label: Type Label

Back Color: Border Color: Border Style: Caption: Display When: Font Bold: Font Name: Font Underline: ForeColor: HelpContextld: Name: Special Effect: Text Align:

Top: Width:

1 False Default Type Auto True No MS Sans Serif False -2147483640 0 False 0 Type Stock;Consumable Sunken 5 Left

65 1179

-2147483633 0 All Pages Type Always Yes MS Sans Serif False -2147483630 0 Type Label Flat Left

Column Count ColumnHidden: ColumnWidth: ControlType: Display When: Event Proc Prefix: Font Italic: Font Size: Font Weight:

Height: Left: List Rows: Locked: Row Source Type: Section: Status Bar Text: TabStop: Text Font Char Set: Visible:

Back Style: Border Line Style: Border Width: ControlType: Event Proc Prefix: Font Italic: Font Size: Font Weight: Height: Left: Section: Tag: Text Font Char Set: Visible:

1 False 2310 111 Always Type False 8 Normal 270 10158 8 False Value List 0 Stock or Consumable True 0

True

Transparent Solid Hairline 100 Type_Label False 8 Bold 255 10158 1 DetachedLabel 0

True 720 1164

Code 1 Attribute VB_Name = "Form Articles"

2 Attribute VB_Creatable = True

3 Attribute VB_PredeclaredId = True

4 Attribute VBExposed = False

5 Option Compare Database

6 Option Explicit

7

8 Private Sub Article_BeforeUpdate(Cancel As Integer)

9 If DCount("Article", "Articles", "Article

'" & Article & "'") = 1 Then

10 MsgBox "An Article with this Description has already been entered.", vbExclamation, "Duplicate Article Description"



11 DoCmd.RunMacro "Hockey"

12 Cancel . True

13 End If

14 End Sub

15

16 Private Sub ArticleNo_BeforeUpdate(Cancel As Integer)

17 If DCount("ArticleNo", "Articles", "ArticleNo = 1 " & ArticleNo & n") = 1 Then

18 MsgBox °An Article with this Number has already been entered.", vbExclamation, "Duplicate Article Number°

19 Cancel . True

20 End If

21 End Sub

22

23 Private Sub Form_Delete(Cancel As Integer)

24 If DCount("ArticleNo", "Orders°, "ArticleNo = '" & ArticleNo & "'") > 0 Then

25 MsgBox "This Article is already linked to an Order and can not be Deleted!", vbCritical, "Invalid Delete Action"

26 Cancel = True

27 ElseIf DCount("ArticleNo", "RFQ", "ArticleNo = '" & ArticleNo & "'") > 0 Then

28 MsgBox "This Article is already linked to a RFQ and can not be Deleted!", vbCritical, "Invalid Delete Action"

29 Cancel = True

30 ElseIf DCount("ArticleNo", "Contracts", "ArticleNo = '" & ArticleNo & "'") > 0 Then

31 MsgBox "This Article is already linked to a Contract and can not be Deleted!", vbCritical, "Invalid Delete Action"

32 Cancel = True

33 End If

34 End Sub

35

36 Private Sub MGroupNo_AfterUpdate()

37 If DCount("MGroupNo", "MGroups", "MGroupNo = 1 " & MGroupNo & "'") = 0 Then

38 MsgBox "Please select a valid Material Group from the list.", vbExclamation, "Invalid Matertial Group"

39 DoCmd.RunMacro "Esckey"

40 End If

41 End Sub

42

43 Private Sub Price_AfterUpdate()

44 If Price <= 0 Then

45 MsgBox "Please enter a amount greater than zero.", vbExclamation, "Invalid Price"

46 DoCmd.RunMacro "Esckey", 2

47 End If

48 End Sub

49 Private Sub amdDel_Click()

50 On Error Resume Next

51 DoCmd.DoMenuItam acFormBar, acEditMenu, 8, acMenuVer70

52 DoCmd.DoMenuItem acFormBar, acEditMenu, 6, , acMenuVer70

53 End Sub

54 Private Sub amdClose_Click()


56 DoCmd.Close

C:\rnmis\MISSprg.mdb Form: Articles


57

58

End Sub

Private Sub cmdNew_Click()


60 DoCmd.OoToRecord , acNewRec

61 ArticleNo.SetFocus

62 End Sub

63 Sub Combol7_AfterUpdate()

64 ' Find the record that matches the control.

65 Me.RecordsetClone.FindFirst "[ArticleNo] I U & Mel[Combo17] & OtU

66 Me.Bookmark Me.RecordeetClone.Bookmark

67 ArticleNo.SetFocus

68 End Sub

69

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Display When: Height: Name:

Visible:

Display When:

Height: Name: Visible:

Always

300 PageFooter

True

Always

840 PageHeader

True

C:\mmis\MlSSprg.mdb Friday, December 11, 1998

Report: OutstandingOrders Page: 16

Properties

Caption:

Date Created:

Fast Laser Printing:

Grid X:

GrpKeepTogether:

HelpContextld:

Layout for Print:

Max Button:

OrderByOn:

Page Footer:

Palette Source:

PictureAlignment:

PictureSizeMode:

PictureType:

Record Source:

Width:

InfoPerPGroup

22/10/98 8:06:26 PM

True

24

1

0

True

True

False

All Pages

(Default)

Always

Clip

0

CrosstabOutstanding

9300

Count:

DateGrouping:

FilterOn:

Grid Y:

HasModule:

Last Updated:

LogicalPageWidth:

Min Button:

Owner:

Page Header:

Picture:

PicturePages:

PictureTiling:

Record Locks:

Visible:

19

Use System Settings

False

24

False

01/11/98 1:37:45 PM

9360

True

admin

All Pages

(none)

Form.

False

No Locks

True

Objects

Group Level 0

Control Source: GroupHeader: GroupOn: SortOrder:

Section: Detail

Back Color: Can Shrink: Event Proc Prefix: Height: Keep Together:

NewRowOrCol: Visible:

PGroupNo False Each Value False

16777215 False Detail

360

True None True

GroupFooter: Groupinterval: Keep Together:

Can Grow: Display When:

Force New Page: In Selection:

Name: Special Effect:

False 1 No

False Always

None False

Detail Flat

Section: PageFooter

Back Color: 16777215 Event Proc Prefix: PageFooter '

In Selection: False Special Effect: Flat

Section: PageHeader

Back Color: 16777215 Event Proc Prefix: PageHeader In Selection: False

Special Effect: Flat

Section: ReportFooter

Back Color: 16777215

Can Shrink: False

Can Grow:

False

Display When:

Always

C:\mmis\MISSprg.mdb Friday, December 11, 1998 Report: OutstandingOrders Page: 17

Event Proc Prefix: Height: Keep Together: NewRowOrCol: Visible:

Image: Image5

Back Color: Border Color: Border Style: ControlType: Height: ImageWidth: Name: PictureAlignment: Section: Special Effect: Visible:

Label: Labell3 Back Color: Border Color: Border Style: Caption: Event Proc Prefix: Font Italic: Font Size: Font Weight: Height: Name: Special Effect: Text Font Char Set: Visible:

Label: Label27 Back Color: Border Color: Border Style: Caption: Event Proc Prefix: Font Italic: Font Size: Font Weight: Height: Name:

ReportFooter 0 True None True

16777215 0 All Pages 103 1320 14384 Image5 Always 1 Flat True

16777215 0 All Pages Purchasing Group Labell3 False 10 Bold 300 Labell3 Flat 0

True

16777215 0 All Pages No. of Outstanding Orders Label27 False 10 Bold 840 Label27

Force New Page: In Selection: Name: Special Effect:

Can Grow: Display When: Force New Page: In Selection: Name: Special Effect:

Back Style: Border Line Style: Border Width: Event Proc Prefix: ImageHeight: Left: Picture: PictureType: Size Mode: Top: Width:

Back Style: Border Line Style: Border Width: ControlType: Font Bold: Font Name: Font Underline: ForeColor: Left: Section: Text Align: Top:

Width:

Back Style: Border Line Style: Border Width: ControlType: Font Bold: Font Name: Font Underline: ForeColor. Left: Section:

None False ReportFooter Flat

False Always None False ReportHeader Flat

Transparent Solid Hairline Image5 10784 7140 CAMMIS\arrow2.GIF 0 Stretch 0 2044

Transparent Solid Hairline 100 Yes Times New Roman False 0 0 3 Left 180

4320

Transparent Solid Hairline 100 Yes Times New Roman False 0 4320 3

Section: ReportHeader Back Color: 16777215 Can Shrink: False Event Proc Prefix: ReportHeader Height: 1860 Keep Together: True NewRowOrCol: None Visible: True



Special Effect: Flat Text Align: Center


Label: Label28

Back Color: 16777215 Back Style: Transparent



Caption: Total No. of Orders ControlType: 100

Event Proc Prefix: Labe128 Font Bold: Yes

Font Italic: False Font Name: Times New Roman

Font Size: 10 Font Underline: False

Font Weight: Bold ForeColor: 0

Height: 780 Left: 7140

Name: Labe128 Section: 3

Special Effect: Flat Text Align: Left


Label: Label35




Caption: % of Outstanding Orders ControlType: 100

Event Proc Prefix: Label35 Font Bold: Yes



Font Weight: Bold ForeColor: 0


Name: Label35 Section: 3

Special Effect: Flat Text Align: Center

Text Font Char 0 Top: 0 Set:

Visible: True Width: 1140

Label: Label36




Caption: Delivery Reliability ControlType: 100

Event Proc Prefix: Label36 Font Bold: Yes



Font Weight: Bold ForeColor. 0


Name: Label36 Section: 3

Special Effect: Flat Text Align: Left


Label: Label37





Border Style: Caption: Event Proc Prefix: Font Italic: Font Size: Font Weight: Height: Name: Special Effect: Text Font Char Set: Visible:

Line: Linel2

Border Color: Border Style: ControlType: Height: Line Slant: Section: Top: Width:

Line: Line32

Border Color: Border Style: ControlType: Height: Line Slant: Section: Top: Width:

Line: Line38 Border Color: Border Style: ControlType: Height: Line Slant: Section: Top: Width:

Text Box: PGroup Back Color: Border Color: Border Style: Can Grow: Control Source: Decimal Places: Font Bold: Font Name: Font Underline: ForeColor: Hide Duplicates:

All Pages Delivery Reliability Label37 False 26 Bold 720 Label37 Flat 0

True

0 First Page 102 0 False 4 0 9240



16777215 0 All Pages False PGroup Auto No Times New Roman False 0 False

Border Width: ControlType: Font Bold: Font Name: Font Underline: ForeColor. Left: Section: Text Align:

Top:

Border Line Style: Border Width: Event Proc Prefix:

Left: Name: Special Effect: Visible:

Border Line Style: Border Width: Event Proc Prefix: Left: Name: Special Effect: Visible:

Border Line Style: Border Width: Event Proc Prefix: Left: Name: Special Effect: Visible:

Back Style: Border Line Style: Border Width: Can Shrink: ControlType: Event Proc Prefix: Font Italic: Font Size: Font Weight: Height: Left:

Hairline 100 Yes Times New Roman False 0 60 1 Left 0

Solid 3 pt Line12 0 Line12 Flat True



Transparent Solid Hairline False 109 PGroup False 10 Normal 240 600

Width: 6660

CAmmisWISSprg.mdb Friday, December 11, 1998


Name:

PGroup

Running Sum:

No

Section:

0

Special Effect:

Flat

Text Align:

General

Text Font Char

0 Set:

Top:

60

Visible:

True

Width:

3720

16777215

0 All Pages False =11ftlsNull([bdPerc]),1,([1xtTotal]-[txtOut])/[bdTotal])

2 No Anal

False

Top:

Width:

Text Box: Text10

Back Color: Border Color: Border Style: Can Grow: Control Source: Decimal Places:


ForeColor: Hide Duplicates:

Name: Section: Text Align:

Top: Width:

Text Box: Text34

Back Color: Border Color: Border Style:

Can Grow: Control Source:

Decimal Places: Font Bold: Font Name: Font Underline:

Back Style: Border Line Style: Border Width: Can Shrink: ControlType: Event Proc Prefix: Font Italic:

Font Size: Font Weight:

Height: Left: Running Sum: Special Effect: Text Font Char Set: Visible:

Back Style: Border Line Style:

Border Width: Can Shrink: ControlType: Event Proc Prefix: Font Italic: Font Size: Font Weight:

Height:

Left: Running Sum: Special Effect: Text Font Char Set:

Visible:

Back Style: Border Line Style:

Border Width: Can Shrink:

ControlType:

Event Proc Prefix: Font Italic: Font Size: Font Weight:

Transparent

Solid Hairline

False 109 PGroupNo False 10 Normal

240 0 No Flat 0

True

Transparent

Solid Hairline

False 109 Text10

True 9 Bold

300 4680 No Flat

0

True

Transparent

Solid Hairline

False 109

Text34 False 10 Normal

Text Box: PGroupNo

Back Color:

16777215

Border Color:

0 Border Style:

All Pages

Can Grow:

False Control Source:

PGroupNo

Decimal Places:

Auto Font Bold:

No

Font Name:

Times New Roman

Font Underline:

False

ForeColor:

0 Hide Duplicates:

False

Name:

PGroupNo

Section:

0 Text Align:

Left

60

540

16777215

0 All Pages False =Page " & [Page] & " of " & [Pages] Auto Yes Times New Roman

False

0 False Text10

4 Right

0 4560

CArnmis\MISSprg.mdb Friday, December 11, 1998


ForeColor: Height: Left: Running Sum: Special Effect: Text Font Char Set: Visible:

0 240 8280 No Flat 0

True

Format: Hide Duplicates: Name: Section: Text Align: Top:

Width:

Percent False Text34 0 Center 60

900

Text Box: Text35

Back Color: 16777215 Border Color: 0 Border Style: All Pages Can Grow: False Control Source: ="Period: " &

Format([Forms]![DateDialog]![Startdate ],"dd-mmm-yyyy") & " to " & Format([Forms]![DateDialog]![EndDate] ,"dd-mmm-yyyy") Auto Yes Times New Roman False 0 False Text35 1 Left

Back Style: Border Line Style: Border Width: Can Shrink: ControlType:

Event Proc Prefix: Font Italic: Font Size: Font Weight: Height: Left: Running Sum: Special Effect: Text Font Char Set: Visible:

Transparent Solid Hairline False 109

Text35 False 12 Bold 300 60 No Flat 0

True

Decimal Places: Font Bold: Font Name: Font Underline: ForeColor: Hide Duplicates: Name: Section: Text Align:

Top: Width:

960 5100

Text Box: Text9

Back Color: Border Color: Border Style: Can Grow: Control Source: Decimal Places: Font Bold: Font Name: Font Underline: ForeColor: Height: Left: Running Sum: Special Effect: Text Font Char Set: Visible:

16777215 0 All Pages False =Now() Auto Yes Times New Roman False 0 300 0 No Flat 0

True

Back Style: Border Line Style: Border Width: Can Shrink: ControlType: Event Proc Prefix: Font Italic: Font Size: Font Weight: Format: Hide Duplicates: Name: Section: Text Align: Top:

Width:

Transparent Solid Hairline False 109 Text9 True 9 Bold Long Date False Text9 4 Left 0

4560

Text Box: txtOut

Back Color: Border Color: Border Style: Can Grow:

16777215 0 All Pages False

Back Style: Transparent Border Line Style: Solid Border Width: Hairline Can Shrink: False



Control Source: Decimal Places: Font Bold: Font Name: Font Underline: ForeColor: Hide Duplicates: Name: Section: Text Align:

Top: Width:

Text Box: txtPerc Back Color: Border Color: Border Style: Can Grow: Control Source: Decimal Places: Font Bold: Font Name: Font Underline: ForeColor: Height: Left: Running Sum: Special Effect: Text Font Char Set: Visible:

Number of Outstanding Orders Auto No Mal False 0 False txtOut 0 Center

60 1200

16777215 0 All Pages False =[txtOut]/[txtTotal] Auto No Arial False 0 240 5760 No Flat 0

True

ControlType: Event Proc Prefix: Font Italic: Font Size: Font Weight: Height: Left: Running Sum: Special Effect: Text Font Char Set: Visible:

Back Style: Border Line Style: Border Width: Can Shrink: ControlType: Event Proc Prefix: Font Italic: Font Size: Font Weight: Format: Hide Duplicates: Name: Section: Text Align: Top:

Width:

109 txtOut False 10 Normal 240 4320 No Flat 0

True

Transparent Solid Hairline False 109 txtPerc False 10 Normal Percent False txtPerc 0 Center 60

1140

Text Box: txtTotal

Back Color: 16777215 Border Color: Border Style: Can Grow: Control Source: Decimal Places: Font Bold: Font Name: Font Underline: ForeColor: Hide Duplicates: Name: Section: Text Align:

Top: Width:

0 All Pages False Total Number of Orders Auto No Arial False 0 False txtTotal 0 Center

60 900

Back Style: Border Line Style: Border Width: Can Shrink: ControlType: Event Proc Prefix: Font Italic: Font Size: Font Weight: Height: Left: Running Sum: Special Effect: Text Font Char Set: Visible:

Transparent Solid Hairline False 109 txtTotal False 10 Normal 240 7140 No Flat 0

True

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C:\mmis'MlSSprg.mdb Friday, December 11, 1998 Macro: Autoexec Page: 24

Properties

Date Created:

17/07/98 2:02:45 PM

Last Updated: 10/08/98 12:59:22 PM

Owner:

admin

Actions

Name Condition Action Argument Value

ShowToolbar Toolbar Name: User Toolbar

Show: Yes User Toolbar

Echo

Echo On:

No

Status Bar Text: Hide results of macro running

SetWamings Warnings On: No Turn system messages off

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C:\mmis\MISSprg.mdb Friday, December 11, 1998 Macro: EscKey Page: 25

Properties

Date Created:

17/07/98 2:02:45 PM

Last Updated: 17/07/98 2:02:45 PM

Owner: admin

Actions


SendKeys Keystrokes: {ESC}

Wait: No Press the Escape Key

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Macro: Find Page: 26

Properties

Date Created:

17/07/98 2:02:45 PM

Last Updated: 17/07/98 2:02:45 PM

Owner: admin

Actions


Course

GoToControl Control Name: CourseNo Go to course no

FindRecord Find What: =[FindCourse]

Match: Whole Field

Match Case: No

Search: Down

Search As Formatted: No

Only Current Field: Yes

Find First: Find student matching input

Employee

GoToControl Control Name: EmployeeNo Employee No

FindRecord Find What: =[FindEmployee]

Match: Whole Field

Match Case: No

Search: Down



Find First:

GoToControl Control Name: EmpName

EmpName

Centre

GoToControl Control Name: CentreNo Centre No

FindRecord Find What: =[FindCentrej

Match: Whole Field

Match Case: No

Search: Down



Find First:

GoToControl Control Name: CentreName


Macro: Find Page: 27

Centre Name

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C:\rnmis\MISSprg.mdb Friday, December 11, 1998

Macro: MenuBarHide Page: 28

Properties

Date Created:

10/07/98 9:30:42 AM

Last Updated: 10/07/98 9:30:42 AM

Actions


Echo

Echo On:

Yes

Status Bar Text: Hides Menu

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Module: Utilities Page: 29

Properties

Date Created:

17/07/98 2:02:46 PM

Last Updated: 12/10/98 8:50:40 AM

Owner: admin

Code 1 Attribute VB_Name . "Utilities"

2 Option Compare Database 'Use database order for string comparisons

3 Option Explicit

4

5 Function AreTablesAttached() As Integer

6 ' Update connection information in attached tables.

7

8 ' Number of attached tables for progress meter.

9 Const MAXTABLES = 18

10 Const NONEXISTENT TABLE = 3011

11 Const FliC_NOT_FOUND = 3024

12 Const ACCESS_DENIED = 3051

13 Const READ_ONLY_DATABASE = 3027

14

15 Dim DBASE As String

16 Dim TableCount As Integer

17 Dim filename As String, SearchPath As String, Temp As String

18 Dim ReturnValue As Variant, AccDir As String, i As Integer

19 Dim Start As Integer

20 Dim MyName As String

21 Dim Location As String

22 Dim Paths As String

23 Dim MyTable As TableDef

24 Dim MyWs As Workspace

.25 Dim MyDB As Database, MyRecords As Recordset

26 Set MyDB = DBEngine.Workspaces(0).Databases(0)

27

28 MyName = MyDB.Name

29 Start = InStr(1, MyName, "MISSprg.mdb", vbTextCompare) - 1

30 Location = Left$(MyDB.Name, Start)

31 Paths = Location & "MISScfg.mdb"

32

33 AreTablesAttached = True

34 Set MyTable = MyDB.TableDefs("Config")

35 MyTable.Connect = ";DATABASE=" & Paths

36 MyTable.RefreshLink

37

38 Paths = DLookup("DataLocation", "Config")

39

40 ' Initialize progress meter.

41 ReturnValue = SysCmd(SYSCMD_INITMETER, "Attaching tables", MAXTABLES)

C:\mmis\MISSprg.mdb Friday, December 11, 1998 Module: Utilities Page: 30

42

43 ' Loop through all tables, reattaching those with nonzero-length Connect strings.

44 TableCount . 1 ' Initialize TableCount for status meter.

45 For i = 0 To MyDB.TableDefs.Count - 1

46 Set MyTable = MyDB.TableDefs(i)

47 If MyTable.Connect <> °" Then

48 Select Case MyTable.SourceTableName

49 Case °Config°

50 GoTo 100

51 Case Else

52 MyTable.Connect = ";DATABASE=" & Paths & "\MISSdat.mdb;PWD=MISS"

53 End Select

54 If MyTable.SourceTableName = "Config" Then GoTo 100

55 Err = 0

56 MyTable.RefreshLink

57 If Err <> 0 Then

58 If Err . NONEXISTENT_TABLE Then

59 MsgBox "File & filename & "' does not contain required table '" & MyTable.SourceTableName & °'", 16, "Can't Run Solutions"

60 ElseIf Err . FHC_NOT_FOUND Then

61 MsgBox "You can't run FHC until you locate MISSDat.MDB", 16, "Can't Run Conf"

62 ElseIf Err = ACCESS_DENIED Then

63 MsgBox "Couldn't open " & filename & " because it is read- only or it is located on a read-only share.", 16, "Can't Run Solutions"

64 ElseIf Err = READ_ONLY_DATABASE Then

65 MsgBox °Can't reattach tables because MISSdat.MDB is read- only or is located on a read-only share.", 16, "Can't Run Solutions"

66 Else

67 MsgBox Error, 16, "Can't Attach"

68 End If

69 AreTablesAttached = False

70 GoTo Exit_Final

71 End If

72 TableCount = TableCount + 1

73 ReturnValue = SysCmd(SYSCMD_UPDATEMETER, TableCount)

74 End If

75 100 Next i

76

77 GoTo Exit_Final

78

79 Exit_Failed:

80 MsgBox "You can't run MISS until you locate MISSdat.MDB", 16, "Can't Run MISS"

81 AreTablesAttached = False

82

83 Exit_Final:

84 ReturnValue = SysCmd(SYSMD_REMOVEMETER)

85

86 End Function

87



88

89

90

91 Function IsLoaded(MyFormName)

92 ' Accepts: a form name

93 ' Purpose: determines if a form is loaded

94 ' Returns: True if specified the form is loaded;

95 ' False if the specified form is not loaded.

96 ' From: User's Guide Chapter 25

97

98 Dim i

99

100 IsLoaded . False

101 For i = 0 To Forms.Count - 1

102 If Forms(i).FormName = MyFormName Then

103 IsLoaded = True

104 Exit Function ' Quit function once form has been found.

105 End If

106 Next

107

108

109 End Function

110

111 Function RIsLoaded(MyReportName)

112 ' Accepts: a form name

113 ' Purpose: determines if a form is loaded

114 ' Returns: True if specified the form is loaded;

115 ' False if the specified form is not loaded.

116 ' From: User's Guide Chapter 25

117

118 Dim i As Integer

119

120 RIsLoaded = False

121 For i = 0 To Reports.Count - 1

122 If Reports(i).Name = MyReportName Then

123 RIsLoaded = True

124 Exit Function ' Quit function once form has been found.

125 End If

126 Next i

127

128 End Function

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Documents

A materials management information system (MMIS) in a