Chapter II

REVIEW OF RELATED LITERATURE AND STUDIES

Related Literature

People require information for many reasons and in varied ways. For instance, you

probably seek information for entertainment and enlightenment by viewing television, watching

movies, browsing the Internet, listening to the radio, and reading newspapers, magazines, and

books. In business, however, people and organizations seek and use information mainly to make

sound decisions and to solve problems - two closely related practices that form the foundation of

every successful company.

Significant nationwide progress are being made every day to improve and integrate all

managerial problems that are being encountered by every organization at the state, national level,

and indeed every governmental branch and offices. One of the most complex tasks facing a

certain office or organization is the management of resources that enables the office to work for

last. Besides simply paying an employee, it will need to undergo proper compensation and

investigation in order to secure valuable data that will be useful in the utilization of reports.

[Equipment Management information System for the National Irrigation Administration (NIA)

Catarman, Northern Samar, Cosme T. Socito Jr and Nilbert G. Tuella, April 2010]

An Information System can be defined technically as a set of interrelated components that

collect (or retrieve), process, store and distribute information to support decision making and

control in an organization. Another definition of an Information system (by Buckingham et al

(1987b) is :
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            A system which assembles, stores, processes, and delivers information relevant to an

organization (or to a society), in such a way that the information is accessible and useful to those

who wish to use it, including managers, staff, clients and citizens. Also, in addition to supporting

decision-making, information systems help workers and managers to analyze complex problems,

to develop new products and to integrate the various modules and departments. Moreover the

'transmission losses inter-departmental communication are reduced considerably leading to better

coordination and improved transparency (information sharing) within the organization as a

whole.

Basically an Information System handles the flow and maintenance of information that

supports a business or some other operation. It contains information about significant people,

places and things within the organization or in the environment surrounding it. Information is

derived from meaningful interpretation of data. Data consists of the raw facts representing events

occurring in the organization before they are organized into an understandable and useful form

for humans. 

            Three activities provide the information that organizations need. These activities are

Input, Processing and Output. 'Input' consists of acquisition of the 'raw data', which is

transformed into more meaningful packets of 'Information' by means of 'Processing'. The

processed information now flows to the users or activities also called as 'Output'. The

shortcomings are analyzed and the information is sent back to the appropriate members of the

organization to help them evaluate and refine the input. This is termed as ‘feedback’.

            Examples of 'Information Inputs' would be Transactions, events which would undergo

'processing' in the form of sorting, listing, merging and updating resulting in 'outputs' such as
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detailed reports, lists and summaries. Another example would be in the manufacturing

environment with 'information inputs' such as design specs material requirements and the SOPs

(standard operating procedures). These would be ‘processed’ by the information system by

modeling and simulation techniques and would result in standard production models along with

the overall cost of the production process which is calculated by the information system from the

knowledge base containing material costs, hourly labor costs and other indirect costs. Hence

almost totally eliminating a distinct costing function in the scheme of things. 

IS is a technology driven system. Without it, business would not be what it is today. It

has evolved over the past forty years to being the back bone of business, yet the simple

application rules created in the 1960s and 1970s are still very relevant in any application where

data or information is transferred in whatever business model it is applied to no matter the

complexity.

Information on the other hand, is an important resource in an effective management of

any organization. Information is any act or set of facts, which is useful in making a specific

decision among alternative courses of action. The information potential of data is enhance by

refinement, which involves selection, processing, sorting and reorganizing the data into a usable

form and transmission to the end-users. [http://www.info.com/]

Large modern organization such as universities and government offices needs this for the

acquisition of appropriate information on equipment to process data into information and

disseminate the information for management use, towards effective administration.

[http://www.oppaga.state.fl.usreportspd9602rpt.pdf]
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Based on reports and investigation conduction for the utilization of Equipment

Management Information System in both federal and state universities in Nigeria, shows that the

system optimizes the collection, transfer and presentation of information throughout the

institution. This is through an integrated structure of database and information flow. According

to Sambo (1992), a system uses formatted procedures to provide management at all levels and in

all levels and in all functions with appropriate information, based on data from both internal and

external sources. In the same vein, Lucy (1989) viewed Equipment Management System as a

system to convert data from internal and external sources into information and to communicate

that information in an appropriate form to management at all levels, to function.

[http://www.oppaga.state.fl.usreportspd9602rpt.pdf]

In relation to this, the proposed Information System in UEP Machinery Department is a

system that integrates all data and information for the progress of the office. Furthermore, it

generates information that will be useful to the Head of the Office of the said section.

The Philippine Council for advanced Science and Technology Research and development

(PCASTRD) recently completed a project to develop customized enterprise information system

based on the advanced Science and Technology Institute’s (ASTI) in-house developed Infosys

suite of solutions. The three (3) month partnership project between ASTI and PCASTRD

culminated in a handover and lunching ceremony of the System held at PCASTRD’s office last

September 9, 2009.

Prior to the project, PCASTRD had been looking for a dynamic web application to

conveniently manage enterprise information, in addition to a desire to promote more efficient

operations and transparency. PCASTRD explored the option of purchasing such a solution from

commercial vendors but eventually chose to collaborate with it sister agency ASTI to develop
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customized systems. By adopting ASTI’s solution, PSCASTRD achieves significant savings

(estimated in the hundreds of thousands of pesos) and looks forward to operations that are more

efficient. [http://www.asti.dost.gov.ph/]

An automated storage and retrieval system (ASRS or AS/RS) consists of a variety of

computer-controlled systems for automatically placing and retrieving loads from defined storage

locations.[1] Automated storage and retrieval systems (AS/RS) are typically used in applications

where: there is a very high volume of loads being moved into and out of storage; storage density

is important because of space constraints; no value adding content is present in this process;

accuracy is critical because of potential expensive damages to the load. AS/RS can be used with

standard loads as well as nonstandard loads.[2]

AS/RS systems are designed for automated storage and retrieval of parts and items in

manufacturing, distribution, retail, wholesale and institutions. They first originated in the 1960s,

initially focusing on heavy pallet loads but with the evolution of the technology the handled

loads have become smaller.[3] The systems operate under computerized control, maintaining an

inventory of stored items. Retrieval of items is accomplished by specifying the item type and

quantity to be retrieved. The computer determines where in the storage area the item can be

retrieved from and schedules the retrieval. It directs the proper automated storage and retrieval

machine (SRM) to the location where the item is stored and directs the machine to deposit the

item at a location where it is to be picked up. A system of conveyors and or automated guided

vehicles is sometimes part of the AS/RS system. These take loads into and out of the storage area

and move them to the manufacturing floor or loading docks. To store items, the pallet or tray is

placed at an input station for the system, the information for inventory is entered into a computer

terminal and the AS/RS system moves the load to the storage area, determines a suitable location
 13

for the item, and stores the load. As items are stored into or retrieved from the racks, the

computer updates its inventory accordingly.

The benefits of an AS/RS system include reduced labor for transporting items into and

out of inventory, reduced inventory levels, more accurate tracking of inventory, and space

savings. Items are often stored more densely than in systems where items are stored and retrieved

manually.[4]

The Maintenance Management System (MMS) is a computerized database designed to

optimize the management of deferred maintenance and capital improvement activities throughout

the Service by using standardized procedures to document and prioritize field facility and

equipment needs and to report accomplishments. It is a management tool for planning and

budgeting deferred maintenance, capital improvement, equipment repair and replacement, and

construction projects, recording data about equipment and property including maintenance

activities, specifications, purchase date, expected lifetime, warranty information, service

contracts, service history, spare parts and anything else that might be of help to management or

maintenance workers. This information is intended to help maintenance workers do their jobs

more effectively (for example, determining which machines require maintenance and which

storerooms contain the spare parts they need) and to help management make informed decisions

(for example, calculating the cost of machine breakdown repair versus preventive maintenance

for each machine, possibly leading to better allocation of resources).

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Related Studies

Nowadays, it is hard to imagine any industry that has not been affected by computer

based information system and computer application. Many offices consider management and

information system to be equal in importance with the services that they are about to offer with

their clients.

Throughout the centuries the changing nature and sheer volume of data coupled with the

advancement of the technology resulted in a gradual evolution of data processing methods.

Regardless, however, in the manner of processing data, the objective of data processing as well

as data integration are still the same. [Introduction to Information Technology, Module I]

In innovative aspects computerized management and information system is one of the

basic necessities in our modern society particularly in the large companies, agencies and

institutions. The need of this technology or system is a great help in monitoring, processing and

retrieving data.

The office of Program Policy Analysis and Government accountability of Florida

Legislature had come to have their review in Equipment Management Information System

administered by the Department of Management Services (DMS) to determine on how agencies

use the system whether it is meeting agency needs.

This report is one of a series that addresses the state’s vehicle that are assigned to

individual employees are used, the use of employee’s privately owned vehicles, and the methods

Florida uses to acquire and maintain its vehicle fleet.

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Florida owns and operates over 23,000 motor vehicles, which represents a substantial

investments and annual operating expenses. These vehicles are operated by 26 governmental

entities, excluding the state University System. [http://www.state.fl.us./oppag]

Foreign Studies

The University of Alberta Facility Inventory System provides a computerized inventory

of equipment on campus for departmental, faculty and central administrative functions.

Facility Inventory System has the responsibility to ensure that all new equipment

acquisitions are inventoried. Initially, this involves scrutinizing all completed purchase orders,

followed by an Equipment Inventory staff member locating and tagging the equipment and

processing the information. Only Facility Inventory System has the ability to provide with the

complete task by using borrowing with lending system that elaborate the data user.1

The study of Automated Inventory System Using Portable Data Acquisition Module for

Bell Electronics Corporation conducted by Karen K. Jao, Monchie C. Dela Cruz, Zarina Ira V.

Bernabe presented a design of Automated Inventory System using Portable Data Acquisition

Module for Bell Electronics Corporation. The tests that have been conducted at Bell Electronics

Corporation lessen a significant amount of time dedicated in creating summary reports of

inventory along with the other related records. In addition, the company finds the proposed

system more effective in their inventory management not only because of the improved speed,

but also due to the increased of efficiency by reducing manual interventions. However, it is

recommended to automate other manual transactions in order to improve the productivity of the

company. Furthermore, to increase the storage capability of the portable data acquisition module
 16

the researchers recommend incorporating EEPROMs to the microcontroller. Finally, it is

recommended to make the inventory system web-enable for easy access.2

The Maintenance Management System (MMS) is a computerized database designed to

optimize the management of deferred maintenance and capital improvement activities throughout

the Service by using standardized procedures to document and prioritize field facility and

equipment needs and to report accomplishments. It is a management tool for planning and

budgeting deferred maintenance, capital improvement, equipment repair and replacement, and

construction projects. The MMS documentation begins at the ground level with identification of

deferred maintenance, capital improvement, construction, and equipment replacement and repair

needs by field station managers. The database allows generation of reports that summarize data

in a variety of ways such as by maintenance codes, by facility and equipment category, by

project cost estimates, by priorities, and by project expenditures. The Service must document all

deferred maintenance and construction appropriation projects in the MMS database before they

are eligible for funding. We define terms associated with maintenance management efforts in

Appendix A. We should apply these terms in all aspects of maintenance and capital improvement

programs from budget planning and development to budget execution and financial reporting.

The MMS documents deferred maintenance, construction, capital improvement, and equipment

needs to aid management in planning and budgeting for Service field activities.

Effective planning, coordination, and scheduling of the maintenance function can be, and

for many years was, accomplished without computer support. However, in these days of high

technology and rapid, economical data communication, job preparation is accomplished far more

efficiently with the support of a sound Computerized Maintenance Information Management

System (CMMIS).
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A CMMS software package maintains a computer database of information about an

organization’s maintenance operations, i.e. CMMIS – computerized maintenance management

information system. This information is intended to help maintenance workers do their jobs more

effectively (for example, determining which machines require maintenance and which

storerooms contain the spare parts they need) and to help management make informed decisions

(for example, calculating the cost of machine breakdown repair versus preventive maintenance

for each machine, possibly leading to better allocation of resources). CMMS data may also be

used to verify regulatory compliance.

CMMS packages may be used by any organization that must perform maintenance on

equipment, assets and property. Some CMMS products focus on particular industry sectors (e.g.

the maintenance of vehicle fleets or health care facilities). Other products aim to be more

general.

CMMIS does Scheduling, Asset management, Fixed assets: Details the machines being

maintained and their associated tooling, Parts inventory / Parts locations / purchasing, Costing.

Scheduling jobs, assigning personnel, reserving materials, recording costs, and tracking relevant

information such as the cause of the problem (if any), downtime involved (if any), and

recommendations for future action are the CMMIS work. Typically, the CMMS schedules

preventive maintenance automatically based on maintenance plans and/or meter readings.

Different software packages use different techniques for reporting when a job should be

performed.
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Local Studies

Rechel Albina Raga and Erwin Abadies studied and designed a computerized sports

equipment inventory system for UEP Sports Director’s Office to solve the existing problem on

the manual inventory system of the sports equipment. As far as performance is concerned, the

researchers found that the old process (manual inventory) required more time to record data, and

there were problems on control and security of the equipment records. The researchers proposed

a system that will make time shorter and help the workers do their duties easier and more

effective. This proposed system was expected to lessen the burden of the staff as well as the

students/ coaches/ athletes of this institutions.3

In the study conducted by Ariel Magat (2002), he stated that inventory system is vital to

any institution, agency, or department. The proper safekeeping, processing and disposal of

records plays important roles in the efficient, effective and smooth operation that eventually

would lead to the successful attainment of the goal and objectives of institution, agency and

departments concerned.4