Institute of Supply and Materials Management

Graduate Diploma in Purchasing

And

Supply Chain Management

2015 – 2018

Assignment -2nd

Year

–Semester I – Module 07

“Study on the current “Supply Chain Management Information System” solution of your

organization.”

Name - M.K.R.D.Perera

Index No. - GDPSCM 15/18-28

Introduction of Company and IT back ground

TVS Lanka (pvt) Ltd.

TVS Lanka (Pvt) Ltd is one of leading company in Sri Lanka in the field of the micro automobile industry and

with joined venture of TVS Motor Company of India, TVS Sons of India and United Motors PLC of Sri

Lanka,

TVS Lanka is selling Motor bikes, Scooters, Mopeds, Three wheels and spare parts for the above vehicle,

TVS Lanka (TVSL) is using ERP system which called IFS.

IFS Applications is a single, agile, application suite that delivers enterprise asset management (EAM),

enterprise resource planning (ERP), enterprise project management and supply chain management to

demanding and global businesses. IFS Applications’ EAM functionality handles more than maintenance –

with full maintenance repair and overhaul, field service management and asset lifecycle management

capabilities.

TVSL is using IFS Application 7 with use of three modules according to the company requirements such as

Distribution, Finance Integration and Pure Finance, this has covered internal sectional needs according to

resources of the IFS modules, Distribution Module basically covered Inventory & Production, Finance

Integration is covered users that are need finance back ground & sales functional needs. Main finance needs

are covered by Pure Finance module such as Balance sheet & Profit & Loss Accounts.

According to the above three module categorization IFS can allocate the user accounts according to their job

roles and limited privileges of access. So it will ensure the security advance and focus of user Job descriptions.

Organization Structure, Network & User Privileges.

Operation System – Windows

Hardware & Type of Network - HP ML350 G6 and LAN/VPN

Utility Software - IFS Admin Tool

Type of Database - Oracle

Backup method - Tape

Whole network contains a hardware firewall protection to withstand the threats via internet. But Symantec end

point protection has been installed in every PC /workstation to protect network from viruses which can be

spread through PC’s or individual users.

Head Office - Main Server

Spare part Store - VPN Connection

Main Wrok Shop - VPN Connection

TVSL Showrooms - VPN Connection

Production Pant -

VPN Connection

Geographically there are location types and operating systems we are using are Microsoft Windows 2012,

Windows 2008, Windows 10, Windows 7, Windows XP. Company has an agreement with Microsoft for OEM

license for all these operating systems with their 24 hour technical supports.

All sites have access to company ERP call IFS which is a total integrated system as all departments Production

/Logistic/Finance/Warehouse/HR departments have their own role in the system to play. In that way all have

the access to live data from the system, but only for the data relevant to their respective department.

IFS accountability is given through the IFS Admin tool to relevant users, as per the requirement under the

management approval. There are two procedures to create an account for users, gain approval. Define access

to users.

1. Login request to the company network to be made by the Department Head through HR manager to a

newly recruited employee (USER ID CREATION FORM (TVS LANKA) Doc ID: TVS-IT-EMP-

001).

2. If IFS access is needed and decided by immediate manager as per user job role, request to be made IFS

login request form with approval of HOD.

According to approvals IT departments will decide what section can be accessed to the users and permission

level to be given to the users by considering users position, experience and the requirement.

Based on user category IT department will assign the JOB role privileges using IFS Admin Tool.

Backup

Every day backup IFS data will be taken to the tape and send to the backup storage at UML IT departments,

Every user has to be centrally backup their data via backup storage software.

Tables of the Database

In the system, everyone in the organization who has the authorization to access to the system, have been

provided the facility of getting all information from the data base such as

Supplier list with their Id and contact details

Purchase order history (supplier wise and item wise)

Delivered orders in the certain time of period

Etc

Eg 1:- How to retrieve the Suppliers List

When we consider the purchasing functions it is more important to have the supplier data of the organization

and it should be accessible accurately once it is required,

Accordingly in our system, it has been provided the facility to get the list of suppliers with their ID, company

name, address, contact details etc. who have supplied the materials to the organization since the system was

launched.

Eg 2: - How to retrieve the details of a specific supplier using their ID

If we know the company ID we can find the details such as company address, Email and telephone contacts

and the payment method etc. of any supplier from the system with using General , Address , Invoice tabs

Eg 3: - View all the purchase orders (supplier wise) using their name, ID or Purchase order details such as PO

no, any supplier references

There are two ways to find the details of all the purchase orders which have been placed against particular

supplier since the system was launched. They are;

I. If the supplier ID is available it enables finding the list of all purchase orders placed for that ID

II. If we don’t know the supplier ID, still the purchase order list can be retrieved without searching for

supplier ID (as shown in the Example 1 “how to find the suppliers”)

Below is the example for the above I;

Functions

In the system it has been facilitated some functions enabling the preparation of reports or any list of details

arranged in ascending or descending order to get the required data from the system.

And also it can be converted the report into PDF format or get them as MS Excel sheets as we wish. Because it

is easy to cross check / compare the details one by one when obtained details are in Excel format. Also we can

print some documents such as purchase order reports, manufacturing order reports, stock counting journals etc.

directly through the system. They can be generated from the system and converted into other file format if

required to be sent to the other parties as per the purpose.

Most important function that our system provides to the person who is placing the purchase orders is, it has

facilitated users to send the purchase orders direct to the suppliers thru the system,

Forms and reports

Different kinds of entry forms are available to feed details according to different tasks performed in the system

such as creating a new part number for an item, creating a new supplier in the system, creating a purchase

order and goods received note, issuing materials to production etc.

In the system it is created a signature for every user with the log in access. When an entry is made in the

system, form gets that signature of the user automatically and saves along with the entry. Therefore in any case

the creator of any entry can be traced upon the signature of the entry saved in the system.

Eg: - How forms are used in creating a purchase order

When creating a purchase order, it is needed to fill few cages only, because most of the details have been pre

entered and retrieved from the database and displayed automatically once the main requirement is included in

the form. As an example, first we should have the supplier Id number, item no and the quantity required.

Quantity is calculated depending on some reasons such as forecast for the product, MOQ and the lead time of

the item. MOQ and the lead time of a particular item are given by the system as default.

Eg: - How forms are used in creating entries for the received goods

As shown below after entering the purchase order number to the goods entry form we can have the item and

the quantity that have been ordered under the particular purchase order number and person who has created the

GRN. Then it can be checked whether the details of the physically received goods are correct upon the

invoice/packing list. Then it is needed to enter the goods received date and Bin manually and save the details

by pressing “enters” Key. Also it cannot be changed the details after saving them in the system at any

circumstance.

Also in the system it is provided users to get the reports from the system such as purchase order reports,

manufacturing order reports, stock journals and the outstanding materials report, call MRP to make the user

duties easy and effective by saving additional time spend on such.

Advantages

1. As the access to the system has been given to all relevant people, each and every transaction is being

shared among all.

2. It helps to ensure the transparency of the transactions within the organization

3. It improves traceability.

4. As the customer orders, production planning, material planning are centralized and streamlined through

the system it enables retrieving data and decision making more convenient and efficient.

5. Improve the collaboration among the departments.

6. Ensures data security and accuracy.

7. It makes complex processes like inventory management easy.

8. It makes the reporting easier

9. Eliminate unnecessary transactions

10. Optimize the business processes

11. There is a separated test version of the software to better practice and to avoid making errors while

working with the software.

Disadvantages & Constraints

1. System is difficult to be used without having a proper training

2. The accessible to system will be lost when the internet connection, electricity are interrupted or lost

and the whole transaction within the company will be stopped.

3. Limited customization facility as per the new requirements.

4. If the data feeding to the system is incorrect, the whole organization will be in trouble.

5. Expertise of the system is with a very few people in the organization.

6. As it is software it is inflexible.

7. Transformation to a new system from the current system is very difficult, even impossible.

8. Only limited privileges have to do the changes without help of system providers.

9. Higher charges of annual agreement & customization charges.

Required Upcoming Development

1. It would be better if we could have a mechanism in the system that we could obtain the history of the

changes of entries of the system when required. Because as an example if someone has made a change

unit price of an item by mistakenly or unintentionally, we will be able to check and correct it with the

old one with the old signature soon. Otherwise it is time consuming to check old documentation and

get it corrected.

2. It would be better if the manual entries of the tasks perform in the system can be minimized. It will

help in reducing the chances of making errors and entering incorrect details in the data base.

3. If we can have server facility to our site with a replicate database implementation, it will help to reduce

network traffics and delays in solving maintenance issues.

4. A documented proper training for overall usage to the system needs to be given at the recruitment of a

new person to the group and need to develop at least one expertise from each department regarding the

software.

Conclusion & Recommendation

With the improvement of the technology new methodologies were invented and developed in order to make

the human activities more convenient and efficient. Likewise IT field also revolutionary developed with

number of achievements during last few decades. IT applications were utilized in all the other industries with

its concept of global village as it enabled centralized the knowledge, technology which were spread all over

the world

TVSL is using IFS Application 7 with use of three modules according to the company requirements such as

Distribution, Finance Integration and Pure Finance, this has covered internal sectional needs according to

resources of the IFS modules, Distribution Module basically covered Sale & Inventory, Finance Integration is

covered users that are need finance back ground & distribution functional needs, Main finance need are

covered by Pure Finance module such as Balance sheet & Profit & Loss Accounts,

Microsoft windows2012, windows2008, windows7, windows10 and windows vista are used as operating

systems (OS). In the company it is used an enterprise resource planning (ERP) system called Jeeves, is

designed with .net programming language and is commonly used by all staff members within the group.

In the system there are tables in the database in which the data are saved and can be retrieved once we need.

Supplier list with their ID and contact details, Purchase order history (supplier wise and item wise), Delivered

orders are some of the examples for such tables. Also there are some functions available in the system such as

preparation of reports, arranging data in an order, printing the documents with the data inserted through the

system, enabling the purchase orders created through the system to be sent in the same way. When we

consider the methodology of feeding the data to the system, there are different types of forms generated by the

system according to the purpose of the action. They are used in the occasions like when creating a new part

number for an item, creating a new supplier in the system, creating a purchase order and goods received note,

issuing materials to production. Also the system generates the reports such as purchase order reports,

manufacturing order reports, stock journals and the outstanding materials report as well.

When working with such a computerized system there are advantages, disadvantages and constraints as well.

Among the advantages optimizing the business process, improving efficiency, total visibility, traceability and

transparency, ensuring reliability, accuracy and security are significant. As it is software it is inflexible,

necessity training and expertise, incorrect manual entry will put all in trouble, difficulties in maintenance, not

being able to have change history revision of the entries, difficulty of shifting from current system to a new

system are among the disadvantages and the constraints of using the software available in our company.

For the current system, it will be better if we could obtain the history of the changes of entries of the system

when required. Also if we could minimize the manual entries where as possible, it would help in entering

incorrect details in the database. If we can have server facility to our site with a replicate database

implementation, it will help to reduce network traffics and maintenance issue. A documented proper training

for overall usage to the system needs to be given at the recruitment of a new person to the group. As currently

we are using a highly advanced and user friendly system comparatively, it is beneficial in a great extent once

each and every one have the knowledge of having the optimum use of that towards enhancing the values of the

organization.

References

IT department help / IFS Help Desk

IFS Application 7