MIS SYSTEM OF KFC

UNIVERSITY OF CENTERAL PUNJAB

ASSOCIATED DEGREE PROGRAM IN INFORMATION

TECHNOLOGY (ADP IT)

SUBJECT : MANAGEMENT INFORMATION SYSTEM

TOPIC : MIS OF KFC

Submitted by: LAIBA KHALID (0154)

SAUD QAYYUM (0134)

HARIS AFZAL MIRZA (0180)

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INDEX
Sr.No Table of contents

1 Introduction to Company(KFC)

2 History of company

3 Introduction to Enterprise resource planning (ERP)

4 Objectives of ERP

5 Advantages of ERP

6 Disadvantages to ERP

7 What does ERP include

8 Function of ERP

9 KFC before and after implementing ERP

RECOMMEDATION AND CONCLUSION

:
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Introduction to KFC

Kentucky Fried Chicken is one of the leading fast food Franchise concepts of today;present in
a variety of countries around the world and has been proficient to launch a renowned
International reputation in multiple continents. Starting in the United States in the 1930s, it
has grown to become a true multi-domestic company. KFC has focused on foreign markets
since the 1960s and has initiated a new challenge today in conquering Asia.
KFC, known as Kentucky Fried Chicken, is a chain of fast food restaurants based in
Louisville, Kentucky.

In the midst of the depression, Harland Sanders who was born just outside Henryville(
Indiana), opens his first restaurant in the small front room of a gas station in Corbin,
Kentucky.

• The target customer of KFC [upper, middle and above] are health conscious and hence to
cater to their interest Kentucky fried Chicken changed its name to KFC.
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HISTORY OF KFC

KFC was founded by Harland Sanders, an entrepreneur who began selling fried chicken from
his roadside restaurant in Corbin, Kentucky, during the Great Depression. Sanders identified
the potential of restaurant franchising, and the first "Kentucky Fried Chicken" franchise
opened in Salt Lake City, Utah in 1952. KFC popularized chicken in the fast-food industry,
diversifying the market by challenging the established dominance of the hamburger. By
branding himself "Colonel Sanders", the founder became a prominent figure of American
cultural history, and his image remains widely used in KFC advertising. The company's rapid
expansion saw it grow too large for Sanders to manage, and in 1964 he sold the company to a
group of investors led by John Y. Brown, Jr. and Jack C. Massey.

KFC was one of the first fast-food chains to expand internationally, opening outlets in
England, Mexico and Jamaica by the mid-1960s. Throughout the 1970s and 1980s, KFC
experienced mixed success domestically, as it went through a series of changes in corporate
ownership with little or no experience in the restaurant business. In the early 1970s, KFC was
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sold to the spirits distributor Heinlein, which was taken over by the R.J. Reynolds food and
tobacco conglomerate, which later sold the chain to PepsiCo. The chain continued to expand
overseas, and in 1987 KFC became the first Western restaurant chain to open in China.

In 1997, PepsiCo spun off its restaurants division as Trico Global Restaurants, which
changed its name to Yum! Brands in 2002. Yum has proved a more focused owner than
Pepsi, and although KFC's number of outlets has declined in the US, the company has
continued to grow in Asia, South America and Africa. The chain has expanded to 18,875
outlets across 118 countries and territories, with 4,563 outlets in China alone, KFC's largest
market.
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Enterprise resource planning (ERP)

Enterprise resource planning (ERP) is a business management software—usually a suite of

integrated applications—that a company can use to collect, store, manage and interpret data
from many business activities, including:-

 Product planning, cost

 Manufacturing or service delivery
 Marketing and sales
 Inventory management
 Shipping and payment
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ERP provides an integrated view of core business processes, often in real-time, using
common databases maintained by a database management system. ERP systems track
business resources—cash, raw materials, production capacity—and the status of business
commitments: orders, purchase orders, and payroll. The applications that make up the system
share data across the various departments (manufacturing, purchasing, sales, accounting, etc.)
that provide the data. ERP facilitates information flow between all business functions, and
manages connections to outside stakeholders.

Enterprise system software is a multi-billion dollar industry that produces components that
support a variety of business functions. IT investments have become the largest category of
capital expenditure in United States-based businesses over the past decade. Though early
ERP systems focused on large enterprises, smaller enterprises increasingly use ERP systems.
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OBJECTIVES OF ERP

 ERP or enterprise resource planning is a commonly used software package for

enhancing the operational efficiency of business resources. It is a composition of
software modules assisting company owners to achieve their goals at a faster rate.
Implementation of ERP for an organization is done on the basis of company
requirements. Today, ERP is a widely applied software system in all types of
industrial fields including small and medium sized companies. Inventory control,
better human capital management, customer relationship management and order
tracking are some among the key benefits of implementing enterprise resource
planning. Proper implementation of ERP package according to business needs is
benefited with lots of advantages. Before implementing ERP software, it is advised to
do well research on specific field. Choosing the right ERP software package from a
well reputed vendor ensure safety. Now, let's see in detail the core objectives of ERP.

 Knowing real time information about business field strategies is one of the core
objectives of ERP. ERP software package, which is a blend of software modules helps
in integrating data and real time information. It helps in better planning and
management of resources as per the requirements of company. Upgrading the needed
software modules, better work flow and improved efficiency are some of the
important benefits of using ERP system. It is found to be very efficient in controlling
and managing organizations at different locations. At present ERP is an essential tool
package used by many of the multinational companies for achieving their long term
goals. Return on investment, best known as ROI is another core objective of ERP.
Proper implementation of ERP package assists professionals to gain more profit by
utilizing available resources. It is a perfect tool adopted by company owners for
delivering desired output at affordable cost.

 In order to compete and win in today's global market field, better management of
resources is an important criterion. Implementation of ERP controls different
functions and enhance company efficiency. Latest technologies equipped with in ERP
software package helps in better controlling and management of data. If
implementation of ERP is done according to company goals, it assures you more
return on investment. Before planning project, it is advised to design the project in a
realistic approach. This helps employees in maximizing ROI in practical. Reducing
inventory cost is another core objective of ERP implementation. Better order tracking,
knowing customer needs and business requirements by ERP assists in proper
utilization and management of resources. It enhances operational process and
maximizes the return on investment rates.

 Enhancing the customer relationship management is a main feature coming under the
core objectives of ERP. It increases the quality of services, shortens delivery times
and enhances the performance rate offered by companies. Error controlling is another
core objective behind ERP implementation in an organization. It helps in better
planning and coordination of business resources so as to achieve maximum profit.
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Advantages of ERP (Enterprise Resource Planning) System:

In order to understand computer networks better, it would be helpful to have an overview of

the applications running on the network. ERP or Enterprise Resource Planning is an
important enterprise application that integrates all the individual department functions into a
single software application.

ERP Systems make it easier to track the workflow across various departments. They reduce
the operational costs involved in manually tracking and (perhaps) duplicating data using
individual & disparate systems. In this article, let us have a look at the advantages and dis-
advantages of implementing ERP (Enterprise Resource Management) Software Systems.

1. Complete visibility into all the important processes, across various departments of an
organization (especially for senior management personnel).
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2. Automatic and coherent workflow from one department/function to another, to ensure a

smooth transition and quicker completion of processes. This also ensures that all the inter-
departmental activities are properly tracked and none of them is ‘missed out’.

3. A unified and single reporting system to analyze the statistics/status etc. in real-time,
across all functions/departments.

4. Since same (ERP) software is now used across all departments, an individual department
having to buy and maintain their own software systems is no longer necessary.

5. Certain ERP vendors can extend their ERP systems to provide Business Intelligence
functionalities that can give overall insights on business processes and identify potential areas
of problems/improvements.

6. Advanced e-commerce integration is possible with ERP systems – most of them can
handle web-based order tracking/ processing.

7. There are various modules in an ERP system like Finance/Accounts, Human Resource
Management, Manufacturing, Marketing/Sales, Supply Chain/Warehouse Management,
CRM, Project Management, etc.

8. Since ERP is a modular software system, its possible to implement either a few modules
(or) many modules based on the requirements of an organization. If more modules
implemented, the integration between various departments may be better.

9. Since a Database system is implemented on the backend to store all the information
required by the ERP system, it enables centralized storage/back-up of all enterprise data.

10. ERP systems are more secure as centralized security policies can be applied to them. All
the transactions happening via the ERP systems can be tracked.

12. It is possible to integrate other systems (like bar-code reader, for example) to the ERP
system through an API (Application Programing Interface).
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Disadvantages of ERP (Enterprise Resource Planning) Systems:

1. ERP deployments are highly time-consuming – projects may take 1-3 years (or more) to
get completed and fully functional.

2. Too little customization may not integrate the ERP system with the business process & too
much customization may slow down the project and make it difficult to upgrade.

3. The cost savings/payback may not be realized immediately after the ERP implementation
& it is quite difficult to measure the same.

4. The participation of users is very important for successful implementation of ERP projects
– hence, exhaustive user training and simple user interface might be critical. But ERP
systems are generally difficult to learn (and use).

5. There may be additional indirect costs due to ERP implementation – like new IT
infrastructure, upgrading the WAN links, etc.

6. Migration of existing data to the new ERP systems is difficult (or impossible) to
achieve. Integrating ERP systems with other stand alone software systems is equally difficult
(if possible). These activities may consume a lot of time, money & resources, if attempted.

7. ERP implementations are difficult to achieve in decentralized organizations with disparate

business processes and systems.

8. Once an ERP systems is implemented it becomes a single vendor lock-in for further
upgrades, customizations etc. Companies are at the discretion of a single vendor and may not
be able to negotiate effectively for their services.

9. Evaluation prior to implementation of ERP system is critical. If this step is not done
properly and experienced technical/business resources are not available while evaluating,
ERP implementations can (and have) become a failure.
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What Does ERP Software Implementation Include?

For the small / medium-sized business, there are four distinct facets to an implementation,
and ignoring or short-cutting any of them can lead to a very unhappy user when all is said and
done:

1. Data migration
2. Business Consulting
3. Configuration
4. User Training

Data Migration

You don’t want to manually key in your customers and part numbers. You also want your
new ERP system to have all your sales history in place. The good news is that, from a
technology perspective, migrating this information is usually not a problem. The bad news is
that it can usually be done quickly or correctly, but not both. To migrate data into a new
system optimally, allowing you to use the new system to it’s potential, will usually entail
some data cleansing (or “massaging”) activities by both the software vendor and the end user.

Data migration is not a single-stage activity. You’d want to migrate data ahead of time, to
sanity check and for training purposes (see later), and then again at point of go-live.

Business Consulting

The business processes and procedures that you’ve developed while working with your entry-
level system (and probably some Excel spreadsheets to supplement it) may work well for you
at present – and of course you have a comfort level with familiar processes. But this may not
be the best way to operate once you have a more powerful business software tool at your
disposal. A good ERP Software Vendor will assist you in optimizing your processes to take
maximum advantage of the system, and eliminate procedural bottlenecks and / or duplication.

Configuration

Your new ERP system will be much more configurable than perhaps you’re accustomed to.
The same system can behave quite differently (and even look and feel different) depending
on how it’s set up. Getting the initial setup right is crucial to a smooth implementation. While
you should be guided by the vendor, you need to actively participate in this process to ensure
that what you ant to get out of the system is taken into account during setup. While many
configuration options can be changed / reversed even after you are live on the ERP system,
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by that time your hands will be full, and you may never get to making those changes. Do it
right the first time.

User Training

No matter how user-friendly a system is, users need training. I believe that in the small /
medium-sized business, there is no point training most end users until just a few days before
go-live. Otherwise most of the training is forgotten / wasted. A “power user” or two should
be trained ahead of time, but most users should experience training and go-live as a single,
contiguous exercise. Users should only ever be trained on their actual (migrated) data, and
should be trained on any changes to business processes at the same time.

ERP and its function

After increasing the complexity in business process, ERP has become famous among
business community. If we have to define it in simple way. Then we can say that ERP is the
new invention of Information technology in which experts make the system for integration of
all business processes. For this, they utilize different software and hardware, with this all
process of business like , accounting , human resource , production and now marketing are
managed . Now, ERP whose full name is enterprise resource planning (some says enterprise
resource processing) is very scientific technique of Controlling whole business by co-
ordination of all information on shared data base . This technique was firstly introduced by
information technology research and advisory firm Gartner, Inc. in 1990
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Function of ERP

1. With ERP, business can better control over its billing to customersand receivables. With the
ability to automate processes. It provides better operational, financial and accounting control
over its billing operations and receivables.
2. ERP system can be used for accomplish every task by integrating the information system ,
seamless flow of information across every department . It is helpful to make automation of
every business process.
3. Because ERP works on IT's basic rules 'input -process-output ‘, So it is also using as
management information system (MIS) .
4. ERP treats the organisation as single entity and caters to the information needs of the whole
organisation because information is the key resource of every organisation to win the
competition. ERP system provides accurate, relevant and timeliness information to all
department on one software system.
5. Main function of ERP system and software is to provide information updated and on real
time.
6. In ERP, you can get answer of any query by its powerful query and filtering facility.
7. Now advance ERP software packages are providing the facility to manage import –export
8. ERP system can easily use in Government, healthcare, financial, retail and other service
sectors.
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Key Functions
1. EDI-(Electronic Data Interchange)

2. AMS-(Attendance Monitoring System)

3. CAD/CAM/CAE (Computer Aided Design/Computer Aided Manufacturing/Computer

Aided Engineering)

4. DMS-(Document Management System)

5. CMS (Communication management Systems)

6. SMS (Security Management System)

KFC Before Implementing an ERP System:

KFC was using multiple IT solutions to address their business requirements. Because of this,
integrity of the reports became difficult to validate and management had a hard time tracking
down their stocks.

They became burdened by multiple data sources that didn’t integrate. Lots of time and money
was lost from duplication of order entries and business processes throughout the outlets.

Numerous hours were being spent each month manually creating reports, tracking invoices
and handling payroll to provide the Head Office with their month end financial reports.

The reason behind these problems was evident: the systems could not communicate with one
another,

The KFC IT team updated KFC’s Enterprise IT structure with JD Edwards EnterpriseOne
8.10 to be able to solve KFC’s growing problem of MIS-information and inaccurate reports.

KFC’s Implementation of an ERP System.

JD EDWARDS ENTERPRISEONE 8.10 offers both the foundation and operational
components, including:

 Financial Management
 Technical Foundation
 Inventory Management
 Asset Management
 Forecasting
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 Workforce Management
 Time and expense Management
 Procurement

JD Edwards Enterprise One 8.10 benefits the company with the following:

 Greater efficiencies-reducing duplicate data entry/maintains

 Standardizes business processes
 Tracks and manages key data
 Greater level of insight into how the business works
 Enables to plan ahead
 Provides business applications for now, and into the future

CONCLUSIONS AND RECOMMEDATIONS

 The proposed system will not be a different system but, an upgrade to the existing
one.
 After an evaluation of various ERP solutions,I came to conclusion that an upgrade to
JD Edwards Enterprise One 8.10 to JD Edwards Enterprise One 9.0 would be the best
choice.
 ERP System is very much helpful to the organization and also the management
becomes proper and maintaince becomes easy.
 JD Edwards Enterprise One 9.0 includes enhancements for financial management,
supply chain management and human resource management. The latest release also
includes industry-specific capabilities for engineering and construction, Food and
beverages, commercial real estate, industrial manufacturing and professional services.
 The new web-based system enables quicker generation of inventory,saled and revenue
reports-going from 1hour to 20minutes.This helps the KFC management to make
more accurate and quicker decisions in response to demand changes.
 The system supports the company to automate inter-company invoicing and business
workflows.
 The system is user-friendly and there is ease in managing it.
 It helps to save a lot of time and resource for deployment and training across various
countries.
 Accounting module provides advanced project accounting integrated to an enterprise
general ledger to help deliver better data quality for enhanced compliance and
financial management and multiple options for expense allocation on projects.
 Dynamic configuration capabilities enable sales and customer service representatives
to correctly enter sales order combinations comprised of products and service
offerings.
 ERP incorporates customer-driven user interface improvements and adopts a
consistent Oracle standard to enhance productivity and improve the visual experience.