Information System For Order Processing

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The 11th Asia Pacific Industrial Engineering and Management Systems Conference

The 14th Asia Pacific Regional Meeting of International Foundation for Production Research
Melaka, 7 – 10 December 2010

Information System for Order Processing in the Supply Chain of


Manufacturing Enterprises
†1 2
Radwan, A. and Majid Aarabi
Department of Manufacturing and Industrial Engineering, Faculty of Mechanical Engineering, Universiti Teknologi
Malaysia, 81310 Skudai, Johor, MALAYSIA
Email: ashraf@fkm.utm.my1
2
amajid4@live.utm.my

Khoei, M. R.
Department of Manufacturing and Industrial Engineering, Faculty of Mechanical Engineering, Universiti Teknologi
Malaysia, 81310 Skudai, Johor, MALAYSIA
Email: mr.khoei@gmail.com

Abstract – Nowadays, high competitive market needs fast, effective, high responsiveness, online
interactive, 24 hours 7 days availability, easy to follow up orders processing, etc. Despite of the
growing importance of information systems (ISs) for Supply Chain Management (SCM) activities, the
lack of a comprehensive framework for modeling and developing IS for SCM has a negative impact on
the performance of small and medium size enterprises. In this paper, the Generic Enterprise
Reference Architecture (GERA) framework is implemented for modeling of Supply Chain
Management Information Systems (SCMISs). For researchers, the model provides an interdisciplinary
approach to understanding the range of Supply Chain Management Information System (SCMIS)
capabilities. With further study, the model and concepts could also be adapted for other strategic
enterprises IS applications. Thus, an information system model was designed and developed for order
processing in the supply chain of the manufacturing enterprises.

Keywords: Supply Chain Management, Information System, Framework, Order Processing, GERA,
GERAM

1. INTRODUCTION Systems alternatives. Due to that, companies face


complicated and perilous determinations appraising
Supply Chain Management Information and picking up a suitable Supply Chain Management
Systems have an extremely vital role in the ability of Information System solution or guaranteeing that
companies to decrease expenses and increase the their executed systems are organized with their
accessibility of their supply chain. Supply Chain business policies (Reddy et al., 2001). An
Management Information Systems are information organizational skill is the aptitude of an organization
systems used to organize information between to attain its objectives by leveraging its different
customers, distributors, manufacturers, suppliers, and resources (Ulrich at al., 1990).
other members in the supply chain. Information
systems have significant effects on the integration of Supply chain management and information
the supply chain main elements, and are the major systems are firmly attached. Execution of supply
enabling tools to respond to the customers demand, chain strategies will be extremely complicated with
according to their desired quality, in a shortest time no supporting of information systems.
and with the lowest price. Simultaneously, a lot of progresses in information
However, there are some experimentally form systems have been appeared from necessities set by
fit for evaluating the organizational skill held up by enterprises seeking cooperate with their members in
the ambit of Supply Chain Management Information the supply chain area. For example, the progression
of internet services have been driven by a must for
________________________________________
† : Radwan, A. is a Professor, Dept. of Manufacturing & Industrial Engineering, Faculty of Mechanical
Engineering, Universiti Teknologi Malaysia (UTM), Malaysia. He received a Dr. Ing. Degree from Norwegian
University of Science and Technology, Norway in 1989.
The 11th Asia Pacific Industrial Engineering and Management Systems Conference
The 14th Asia Pacific Regional Meeting of International Foundation for Production Research
Melaka, 7 – 10 December 2010

pliability and more open information systems blend of information connection technology (Tim
interfaces to uphold re-configurability McLaren et.al. 2004).
(Charu Chandra et al., 2007). The supply chain is an
expression that utilized progressively by logistics 2. SCM INFORMATION SYSTEMS
specialists. Supply chain covers each attempt
entangled with manufacturing and delivering a last
2.1 Supply Chain Management description
product, from the providers to the clients. the basic
factors of the supply chain procedure are source,
Supply chain management is simply the
plan, create and deliver which this factors completely
integration of the activities that respond to the
describe these attempts, that contain administer
customer orders, in a way of obtaining the necessary
provide and request, sourcing raw substances and
materials and/or components, and the required
components, production and assembly, storage and
services to transform them to products, which fulfills
stock pursuing, demand entrance and demand
organization, allocation all over the channels, and the customer orders. Slack, N. et al (2001), stated
transference to the clients (Arrianto Mukti Wibowo, that supply chain management is the management of
et al., 1999). Supply chain management information the interconnection of organizations which relate to
systems are the information systems between each other through upstream and downstream
companies that employ information and linkages between the different processes that produce
communication technology to arrange information value in the form of products and services to the
inside and among the participator of a supply chain ultimate consumer.
like the clients, sellers, providers, and distributors
included in the utilization and supply of a special 2.2 Supply Chain Management Information
product or service. Companies frequently use a
portfolio of supply chain management information The information consists of data, analysis
systems, which characteristically contain legacy tools, methods, techniques and algorithms. Which are
systems linked by electronic data interchange, concerning Inventory, Facilities, Transportations,
packaged applications employing Web-based Cost, Prices, and Customers. Figure 1 shows basic
exchange of information or ideas, or some other entities and interfaces of the supply chain
management drivers.

Information
Inventory
Facility
Transportation
Suppliers Customers
Costs
Prices
Customers

Figure 1: Basic entities and interfaces of the supply chain management drivers

There are three major macro processes in Supply - Customer Relationship Management (CRM):
Chain Management (Sunil Chopra et al. 2007): Marketing, Sell, Order Processing, and
- Supplier Relationship Management (SRM): Call/Service center.
Supplier & Design collaboration, Source
planning, Negotiation, and Buy. SCM Information systems should consider all of
- Internal Supply Chain Management (ISCM): them to have a succeeded SCMIS, and for using the
Strategic planning, Demand planning, Supply decision making in Manufacturing Enterprises. In a
planning, Fulfillment, and Field service. comprehensive SCMIS, the mentioned drivers should
be considered in all three macro processes. The
proposed SCMIS has to provide a functional
The 11th Asia Pacific Industrial Engineering and Management Systems Conference
The 14th Asia Pacific Regional Meeting of International Foundation for Production Research
Melaka, 7 – 10 December 2010
integration of the three macros (SRM, ISCM, and details implement according the life cycle. Finally,
CRM). the different views of the Information Systems were
In this system, our focus will be on the customer done with modeling tools. Because of the maximum
order processing related IS in SCM. The GERAM pages limitation, all of the done stages can't be
(Generalized Enterprise Reference Architecture and detailed in this paper, but we pointed some of them in
Methodology) framework is implemented to model brief:
our SCMIS.
Identification:
3. SCMIS and GERA Framework As the first stage in this architecture, we defined the
entities of the system and their internal and external
3.1 GERA Framework relation. We did this stage with interview and the
study of documents. for identifying the necessary
This architecture (Generic Enterprise Reference entities and their details.
Architecture - GERA) is the most important
components of GERAM framework. It is used in Concept:
enterprise engineering and integration. GERA defines After the definition of the entities, with analyzing and
some concepts of each enterprise and recommends using of the brain storming, we defined the business
consider these for integration of their systems: plans, functional concepts, information, resources
- Human oriented concepts: This concept considers (human and non-human of technical), organization,
the human related aspects such as, roles, skills, objectives (products or services), controls, mission,
authority and so on. vision, values, strategies, objectives, policies, and
- Process oriented concepts: Deals with functions other conceptual details of the system.
and activities should be done for each life-cycle
phases of systems. Requirements:
- Technology oriented concepts: Deals with the After definition of the conceptual details of the
infrastructure that used to support the processes of system, we defined the requirements of the system.
the system. For this purpose, we divided these requirements to
Also, to more comprehensive and detailed completely the followings:
of the studying system, GERA provides the views Functional requirements: according the desired
that allow the operational processes to be described output and necessary information and reports, and,
as an integrated model. These views in details will be we designed our system (Figure 3), for obtaining the
discussed in next section. necessary output. With consider to these, we defined
the functional requirements of the system. The more
detailed functional modeling of the system was
3.2 Modeling of Information System for
designed in the next stages.
Order Processing in SCM with GERA Information requirements: the databases, entities,
attributes, and their capabilities were defined in this
This case study is the using of GERA for modeling of category. We listed the information requirements of
Information System for Order Processing in Supply the system. The information modeling of these
Chain. The following subdivisions of models or t entities will be designed in the next stages with using
views have been identified in GERA (Bernus P. et of the modeling tools.
al., 1996): Resource requirements: the necessary resources
- Model Contents Views: function, information, (includes: human or non-human) of the system
resource, organization; studied in this stage. With using of studying the
- Purpose Views: customer service and product, system, specify their needs study the feasibility of the
management and control; system with using of the result of this study.
- Implementation View: human implemented tasks, Organization Requirements: according the objectives
automated tasks (mission support technology, and of the system that we designed this system to obtain
management & control technology); them, we decided to rearrange and modify some parts
- Physical Manifestation Views: software, and of the organization and the staffs.
hardware. Products & Customer Service requirements: with
using of interview and studying of the our system, we
According the life cycle of GERA, the development can find the required useful output products and
of IS was done: Identification, Concept, services for the system.
Requirements, Design (Preliminary, Detailed), Management & Control requirements: users and
Implementation, Operation, and finally operators authority, back-up and protecting the
Decommission. Each of modeling views and their system against the spam and virus are the
Continuous Improvement

Function Function Function

Information Information Information

Function
Resource Resource
Resource

Organization Information Function Function


Organization Organization

Resource Information Information


Products & Products &
Products &
Customer Customer
Customer Organization Resource
Service Resource
Service
Service

Organization Organization
Products &
Management Management Management Customer
CONCEPT

& Control & Control Service Products & Products &


REQUIREMENT

& Control

OPERATION
Customer
IDENTIFICATION

Customer

DECOMMISSION
IMPLEMENTATION
DETAILED DESIGN
PRELIMINARY DESIGN

Human Tasks Human Tasks Service Service


Human Tasks Management
& Control
Non-Human Non-Human Non-Human Management Management
tasks tasks & Control & Control

Figure 2 – The used GERA framework for SCM IS


tasks
Human Tasks

Software Software Software


Non-Human
Design Design Design
tasks

Hardware Hardware Hardware


The 11th Asia Pacific Industrial Engineering and Management Systems Conference

Design Design Design


The 14th Asia Pacific Regional Meeting of International Foundation for Production Research
Melaka, 7 – 10 December 2010
The 11th Asia Pacific Industrial Engineering and Management Systems Conference
The 14th Asia Pacific Regional Meeting of International Foundation for Production Research
Melaka, 7 – 10 December 2010

Figure 3–Functional model of the System

requirements that are considered for using this system non-human) of the system detailed more here in this
well. stage to prepare to obtain them.
Preliminary Design: Organization Preliminary Design: the required
Functional Preliminary Design: the functional model organization that studied in the previous stage,
of the system with using of IDEF0 were designed, the designed with details for ready to implement, the
operational relation of the part of the system viewed, responsibilities, roles, skills, authorities and
optimize and ready to design in details and then capabilities of the people specified here. For
implemented. implementation, we need more details that we did
Information Preliminary Design: after the defining them in the Detailed Design stage.
the databases, entities, attributes in previous stage. Products & Customer Service Preliminary Design:
Now, we designed the keys and obtain the the necessary products, services and output of the
information model of them with using IDEF1X system designed in more details here in this stage. In
(Menzel C., 1998) in this stage. this stage we coded the reports and with designing of
Resource Preliminary Design: the previously their patterns and feedback to the related persons and
designed necessary resources (includes: human or departments to be more suitable for them at the end.
The 11th Asia Pacific Industrial Engineering and Management Systems Conference
The 14th Asia Pacific Regional Meeting of International Foundation for Production Research
Melaka, 7 – 10 December 2010

Management & Control Preliminary Design: users Operation:


and operators authority, back-up and holding the During this stage, we are controlling, assessing,
system against the spam and virus and related monitoring and try to optimizing the operation of the
policies were designed and obtained here. We SCM IS in our system. This caused to improve some
decided to buy a valid licensed anti-virus and anti- of our system functions, more suitability and user
spam and also consider a good password check for friendly and more favorite for all stakeholders of the
online accessed users of the system. system.
Human tasks Preliminary Design: the designed
system had some human related tasks and they Decommission:
should be related to human with particular skill. For At present, system is operating and continuously it
this purpose, we trained some of them with necessary assess and redesign, improve, upgrade, maintain and
courses to be capable for their roles in this system any other activities to have the best usable and most
and determine their responsibilities in the system. effective system.
Non-Human tasks Preliminary Design: the technical
(non-human) tasks of the system were specified and 4. CONCLUSION
the necessary technical needed to some technical
(non-human) considerations to operate well. We In this paper, the GERA framework is used to model
obtained adequate servers, hardware and other SCMISs. Our focus was on analyzing the technical
technical facilities for system.
and operational aspects of the order processing with
Detailed Design: respect to the function view, information view,
This stage include: Functional Detailed Design, resources view, organization view, customer service
Information Detailed Design, Resource Detailed & product view, management & control view,
Design, Organization Detailed Design, Management implementation views, software and hardware views
& Control Detailed Design, Human tasks Detailed of the GERA framework. The framework modeling
Design, and Non-Human tasks Detailed Design were
has shown clearly the interaction and the flow of
done with similar to what explained in the previous
stage. In addition of these, there were two activities information between the various activities. Besides,
in this stage: the security issues have been highlighted and
Software Detailed Design: the algorithm of the identified. This framework model identifies the
software and the details of it, also the programming necessary modeling tools to specify each view in the
language for programming user interfaces and system. Further, the framework model facilitates the
database query language detailed in this stage. Then next step for implementing of the related modeling
in the next stage, the software of the system
tools, to build up the prototype software of the
implemented with VB and query with SQL and
database designed with Microsoft-ACCESS SCMIS.
Hardware Detailed Design: the detail of the
hardware that are used in system is listed here. All REFERENCES
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The 11th Asia Pacific Industrial Engineering and Management Systems Conference
The 14th Asia Pacific Regional Meeting of International Foundation for Production Research
Melaka, 7 – 10 December 2010

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AUTHOR BIOGRAPHIES
Radwan, A. is a Professor, Dept. of Manufacturing
& Industrial Engineering, Faculty of Mechanical
Engineering, Universiti Teknologi Malaysia (UTM),
Malaysia. He received a Dr. Ing. Degree from
Norwegian University of Science and Technology,
Norway in 1989. His teaching and research interests
include Expert Systems for Industrial Engineering
Applications, Computer Integrated Manufacturing

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