Evaluation of Materials Management Information System

Evaluation of Materials wariness cultivation SystemExecutive SummaryThe purpose of this report is to judge the effectiveness of the be Materials worry System (MMS) in ABC complex body part, identify the gaps in business processes and define substance abuser needs and stakeholders expectations concerning the carrying into action of new Information System (IS) proposed by the Modernization Committee of the Company. sports stadium study and look for by means of questionnaires showed that there were major failures in the existing MMS in the world of ho nary(prenominal) of planning, railing and parentage of materials and equipment. There was no interconnected automatise control over the materials planning process. tradeers and providers entropybases were poor. Tracking of materials was processed through MS Excel spreadsheet making the expediting of Suppliers submissions in economical as some beats the selective training was simply lost which led to mismatch between the Company and Suppliers info in the context of delivery situation.The control and monitoring of the materials in line of credit was characterized by inefficient inventory paperwork. The overall MMS documentation was not well-rounded enough provoking heavy workload, manual verification of the data and unacceptable reporting which consequently caused failures to meet construction completion deadlines.The proposed IS bore MM was faultfindingly evaluated as a potential solution for the automation of MMS in ABC body structure. Taking into consideration principle business objectives the achievement of IS was diagnosed by means of IS Success Framework certain by DeLone and McLean (see adjunct 1).The outcome of the analysis showed that IS proved to be applicable and could meet the expectations of all Senior Management or Materials personnel, and to align with the Companys strategy and business objectives. The master(prenominal) processes of Materials Management and the relations between ABC Construction and traffickers/Suppliers screwing be efficiently managed and coordinated if proposed IS is implemented.The recommendation to utilize the proposed wear down MM for efficient Material Management was supported. Professional MM IS and quicken of execution can post the Company faster judgment of conviction to market, potential growth as a long-term objective and thus, sustainable future of the business. get along all-encompassing financial analysis for IS executing project will be conducted by the fiscal Department and presented to stakeholders in order to make final investiture decision.IntroductionABC Construction is a medium Russian Construction Company founded in 1995 specializing in general construction, construction management, and design services. It is a material-intensive business in which control over materials necessary for construction has a major impact on the revenue of the company.In order to nettle the current transaction of Material Management System, identify its inefficiency and define user needs and expectations of the stakeholders with regards to implementation of new proposed Information System (IS) a field study and research through questionnaires were conducted.Based on the results of the interviews and data from the questionnaires of 1 Project Director, 4 Project Managers, 4 Contracts Managers, 5 Chief Engineers, 3 Material Managers and 10 Materials Coordinators the major drawbacks of the existing MMS were identified in the field of planning, tracking and inventory of materials and equipment.The following implications are summarized to describe the outcome of the research with regards to MMS utilized in the CompanyThere is no efficient automated control over the materials planning process. Vendors and Suppliers database is poor, not up-to-date, not all the required information included. Vendor Data requirements are not defined in terms of requisitions, package and purchase orders (PO), no materials sp ecifications available and deliveries timelines indicated. No broad pricing information available in the system.Tracking process of shape of materials and equipment deliveries is done through MS Excel spreadsheets making the expediting of Vendor submissions inefficient. A number of Materials Specialists and Coordinators are working on one spreadsheet at the resembling time and overdue to human element while transferring data information may be lost. This causes the mismatch between the Company and the Contractors data in terms of materials status.Inefficient control over the materials in stock. Inventory reports are not detailed shortages of materials are not contract and can be depicted by means of PIVOT tables only. Materials Coordinators working in heterogeneous projects of the Company sometimes do not have enough time for monitoring the stock which can cause such major problems as failures to meet construction completion deadlines and initial budget deficit due to incident al expenditures caused by damaged/lost or undelivered materials which were not correctly indicated in craftwork database.The overall MMS documentation is not comprehensive process sheets, inventory records, material requisitions, material call-off schedules, shortage notes, lot tickets, delivery notes and quality mental test sheets provide incomplete information and you have to take time and imply to another documents and spreadsheets to find the required information. There are no procedures on document standards between the Company and its vendors/suppliers. Contract Managers are not cheery with the reporting system which is not transparent enough and is to be developed to better standards.Due to the Companys Modernization Strategy and taking into account the gaps in the existing MMS a standard integrated IS SAP MM (Materials Management) was proposed for implementation within the Company.The main objectives of IS Implementation set by the Senior Management are as followsTo ens ure that ABC Construction has the right material, in the right place, at the right quantity and price.To develop and unify materials cerebrate procedures and make materials purchase, transfer and receipt clear for all involved parties.To plosive speech sound competitive in construction market and build a sustainable future.Analysis and ImplicationsIn order to assess the integral ERP solution SAP MM (module that is used for Procurement Handling and Inventory Management) was reviewed to evaluate the pertinence of IS to meet the requirements of the stipulated business objectives. IS was inspected through the application of the success metrics specified in Updated IS Success lay developed by DeLone and McLean.SAP MM success evaluation based upon success metrics aligned with stakeholders expectations is indicated in the table below.IS Success DimensionsValued QualitiesPreliminary Assessment of SAP MM1Information QualityUsabilityInformation is comprehensive and complete.Consistent trac k of historical data.Availability / ReliabilityData can be accessed from sixfold geographical locations, IS stable and reliable.AdaptabilityIS flexible computer architecture with high scalability.Response timeReal-time application, response time is short.2System Quality gist PersonalizedClear definition of user access rights.CompletenessIS covers all stages from mean to Procurement and Warehousing (see Appendix 2).High integration with other ERP systems.relevantSingle data storage with the relevant data.SecureR/3, 3-tier architecture database, application server and client, all data stores on server side.Encrypted client-server data transfer.3Service QualityAssuranceIS if fully integrated and do not require additional adaptation.Developer Support24/7 helpdesk. subdued remote administration options.4UsageSimplicity of operationstaple training usually takes 5-10 days.User-friendly interface.Quick Access to the most updated data.5User satisfactionBusiness purposesorientationSAP MM is able to provide the required graphs and analytics for planning, tracking and inventory reporting structures are clear and flourishing to reconfigure.6Net benefitsImproved Cost ControlIS lowers total court of ownership with a scalable and flexible solution that enables to implement enterprise-wide changes and deploy them globally.IS make betters efficiency with a solution that has the functionality to support the business processes.Improved strategic and Operational ProcurementIS optimizes vendor base, corrects inventory turnover and vibration times, and reduces working(a) costs.IS covers all tasks within the supply chemical chain, including consumption-based planning, planning, vendor evaluation and invoice verification. It alike includes inventory and warehouse management to manage stock until usage dictates the cycle should begin again.Electronic Kanban/Just-in-Time delivery is supported.Information transparencyIS enables management precaution support overall decision-ma king processes.IS facilitates time saving.One of the main objectives of the capabilities of described IS is to improve streamline collaboration between the Materials Department and its suppliers while drastically diminish procurement and inventory costs and maximizing the value of relationships on twain sides. Thus, the supplier participation and automation of cross-company processes are increasing which leads to enhancing the supply chain visibility, to increasing the overall speed accuracy, and adaptability of Vendors which is vital for construction field.Proposed IS can improve and simplify the inventory procedures and control over stock in the Company. IS Supplier portal component is available. That eliminates manual data entry, improves internal and external communications and reduces errors and process costs. IS provides the required transparency of the Material Management processes and Supplier/Vendor base visibility enabling companies to monitor and evaluate suppliers with real-time performance feedback.The following expectations of the Company can be met if proposed IS is implementedAutomation, simplification and speedup of Material Management processes.Less mismatching between Supplier/Vendor and the Companys status documentationAccurate and detailed information on Supplier/Vendor abilities and rates.Improved reporting system and configuration of the reports per requirements of Senior Management, Materials Staff and Financial Dept.Lowered procurement and inventory costs improved asset utilization. decreased risk of supply and delays through the efficient IS electronic tracking.Reduced downtime overtime paperwork, adjustment and compilation of the forms.RecommendationsBased on the results of SAP MM critical evaluation the IS proves to be applicable in order to develop or replace the existing MMS in ABC Construction and to meet the expectations of each Senior Management or Materials personnel, and to align with the Companys strategy and business o bjectives. The lead processes of Materials Management can be fully monitored and controlled if proposed IS is implemented.Therefore, the recommendation to utilize the proposed SAP MM for efficient Material Management is supported. To build a sustainable future and to remain competitive in construction market the materials and equipment as well as relations of ABC Construction with Vendors/Suppliers can be efficiently managed and coordinated through proposed SAP MM. Professional MM IS and speed of execution can provide the Company with faster time to market and potential growth of business as a long-term objective.Further comprehensive financial assessment in terms of costs and commercialized value, benefits and risks of the IS implementation project is to be conducted by the Financial Department and presented to stakeholders in order to make final investment decision. Microsoft Rapid Economic plea (REJ) Framework can be recommended for further reference see experience below.Bibl iography1. 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