Finished Goods Inventory Classifications and Terminologies
While inventory classification of raw materials for Inventory Management purposes follows ABC Classification, Finished Goods inventory is classified under additional categories based on various attributes including sales volumes/patterns, functional attributes and operational requirements. Stock Category depending upon Sales Channels Finished Goods at the very basic level is manufactured and stocked separately depending upon the Business […]
Is the Internet the Great Leveler in Globalization?
Flat World? The famous cheerleader of globalization, Thomas Friedman, characterizes the global economy as a “flat world” where anyone can reap the benefits of the many opportunities that are provided by globalization because there are no “barriers” anymore with the advent of the internet. The basic premise is that anyone from anywhere can use the […]
Are Indian Start-ups and eCommerce Firms Living in Fantasy Land without Profits?
Are Indian Start-ups and eCommerce Firms Living in Fantasy Land? It is a well known fact that India is a favourite destination for yield hungry investors and angel investors keen to fund start-ups and eCommerce firms in the hope that they would be able to garner significant profits at a later stage. Indeed, India is […]
Inventory Management Systems
Modern day inventory is managed by sophisticated system applications that are designed to manage complex inventory plans and to a large extent contain processes that initiate and streamline the operations and inventory management. In the wake of improvements in the communication technology, companies are deploying one single ERP system across all factories, offices, departments and […]
BPI – Process Walk Through and Process Measurement Analysis
Business Process Improvement projects can be applied to any and every process in any industry. Using BPI it is possible to increase the efficiency of any and every process. Processes though designed well, can become inefficient over a period of time. Besides, processes need to be subject to review periodically to determine the efficiency as […]
An information system is integrated and co-ordinate network of components, which combine together to convert data into information.
An information system is essentially made up of five components hardware, software, database, network and people. These five components integrate to perform input, process, output, feedback and control.
Information processing consists of input; data process, data storage, output and control.
During input stage data instructions are fed to the systems which during process stage are worked upon by software programs and other queries.
During output stage, data is presented in structured format and reports.
In any given organization information system can be classified based on the usage of the information. Therefore, an information system in an organization can be divided into operations support system and management support system.
In an organization, data input is done by the end user which is processed to generate information products i.e. reports, which are utilized by internal and or external users. Such a system is called operation support system.
The purpose of the operation support system is to facilitate business transaction, control production, support internal as well as external communication and update organization central database.
The operation support system is further divided into a transaction-processing system, processing control system and enterprise collaboration system.
In manufacturing organization, there are several types of transaction across department.
Typical organizational departments are Sales, Account, Finance, Plant, Engineering, Human Resource and Marketing. Across which following transaction may occur sales order, sales return, cash receipts, credit sales; credit slips, material accounting, inventory management, depreciation accounting, etc.
These transactions can be categorized into batch transaction processing, single transaction processing and real time transaction processing.
In a manufacturing organization, certain decisions are made by a computer system without any manual intervention. In this type of system, critical information is fed to the system on a real-time basis thereby enabling process control. This kind of systems is referred as process control systems.
In recent times, there is more stress on team effort or collaboration across different functional teams. A system which enables collaborative effort by improving communication and sharing of data is referred to as an enterprise collaboration system.
Managers require precise information in a specific format to undertake an organizational decision. A system which facilitates an efficient decision making process for managers is called management support system.
Management support systems are essentially categorized as management information system, decision support system, expert system and accounting information system.
Management information system provides information to manager facilitating the routine decision-making process. Decision support system provides information to manager facilitating specific issue related solution.
An information system can be categorized based upon activity into strategic planning system, tactical information system and operational information system.
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Communication Systems and Groupware – Information System Concepts that Apply in All Functional Areas of Business
February 12, 2025
