Agenda

We shall discuss the case on Dairy

Identify Information Systems
Discuss the appropriateness of applying
OMNIS Model
• MCS
• Functional Systems
• An example of Marketing IS

Case on FMCG-PRM-41 1
Functional Systems

Dairy Unit

Finance and
Production Marketing Distribution
Accounting

Case on FMCG-PRM-41 2
 Identification of Information Systems:
Functional Systems Processes
1.1. Meet Demand
Production Information System 1.2. Get Raw Material
1.3. Manage Production

2.1. Arrange/collect Raw Material

2.2. Supply Raw Material to Production
2.3. Collect Indents
Marketing Information System
2.4. Manage Field Supervisors
2.5. Manage Collection Centres
2.6. Manage Sales
2.7. Manage Collection of Milk and Collection centres for
production

3.1. Collect demand notes from Booths/Centres

Distribution Information System 3.2. Arrange Contractor
3.3. Manage Milk Routes

Finance and Accounting Information

4.1. Manage Pourer accounts, Commissions, Penalty etc.
System
4.2. Manage Accounting at Collection Centres
4.3. Manage Accounting in Dairy

Case on FMCG-PRM-41 3
 Processes
Sl. No. Input Process Output Process Rules Process Logics

1 Milk Collect milk from Milk Valid Co-op Society No. of pourers:
Milk Pourers 100,000

2 Indents Collect indents from Demand of Valid Booths/ 1.No. of Booths/

Milk Centers/ Booths products Centers Centers: 780
2. If no indent,
default quota

3 Milk Produce Milk/ Milk Production as per 12 hour notice

Products demand

4 Dispatch Dispatch products Dispatch Dispatch as per Quota

instructions through trucks to schedules demand
milk centers/ booths

5 Payment advice Issue payment Payment Payment Commission,

advice (Milk center/ schedules instructions as per penalty
booth wise) dispatch

6 Payment schedules Collect payment Payments Collect payment as Bill cycle of 15

from collection per bill cycle days
centers

Case on FMCG-PRM-41 4
Process Details
Proc Process Description Type Of Goal Activities
ess# Process

1 Collect milk from Pourers Core?? Timely and -Identify Pourers

qualitative -Ascertain supply.
collection of milk -Arrange transport
-Collect milk

2 Collect indents from Milk Centers/ Booths Support?? Timely collection -Identify Milk-Centers/ Booths.
of indents -Ascertain demand of each Booth/
Center in time.

3 Produce Core?? Produce in time -Receive demand from Marketing in

as per demand/ time.
quality -Arrange to produce in time.
standards/ -Utilize resources optimally.
optimized
utilization of
resource
4 Dispatch products through trucks to milk Support?? Dispatch in time -Identify Contractor for transportation
centers/ booths and with quality -Dispatch Milk Route wise

5 Issue payment advice (Milk center/ booth Support?? Issue payment -Track Indents
wise) advice in time -Prepare payment advice booth
wise/ center wise

6 Collect payment from collection centers Support?? Collect payment -Collect Payment from Centers/
in time Booths
- Identify Supervisors

Case on FMCG-PRM-41 5
Process Matrix
Proc Process Process Owner Shared By
ess Description
Process Process Process Process Process Process
No.
#1 #2 #3 #4 #5 #6

1 Collect milk from Marketing x x

Co-op Societies

2 Collect indents Distribution x x x x

from Milk
Centers/ Booths

3 Produce Production x x x
4 Dispatch Distribution x x
products through
trucks for milk
centers/ booths

5 Issue payment Finance X x

advice (Milk
center/ booth
wise)
6 Collect payment Marketing X x x
from collection
centers

Case on FMCG-PRM-41 6
 Example of Marketing IS
Functional System Explanations
Milk Centres
Booths
Actors Customers
Field Supervisors
????

Each Booth/Centre would raise Indents

Rules In absence of Indent, Default Quota would prevail
Demand would be Forecast for next 12 hours
????
Default Quota , Penalty, Incentives- ???
Collections -???
Source for Events Bill Payment Cycle - ???
Ageing of Debtors -???

Processes Already Discussed

Case on FMCG-PRM-41 7
 Example of Marketing IS
Information
System Explanations What is to be Done?
(Simulation)

Each Booth/Centre would raise Indents

Rules In absence of Indent, Default Quota would All Rules to be reflected in the IS; A repository
prevail to be formed
Demand would be Forecast for next 12 hours
????
Default Quota , Penalty, Incentives- ??? Information Base: Capture Bench marks
Collections -??? Collections going down
Source for Events Bill Payment Cycle - ??? Default Quota is always used for forecasting
Payment Cycle is not steady
Debtors Ageing is increasing
Ageing of Debtors -??? Penalty is increasing
Incentive given is less

Processes Already Discussed No Change

Case on FMCG-PRM-41 8
 Example of Marketing IS
Behaviour / Message
Source
Explanations Message Captured
Each Booth/Centre would raise Indents

In absence of Indent, Default Quota would

prevail
1. Market Demand drops
Rules
2. Booth/ Centre Dissatisfaction on
Demand would be Forecast for next 12 hours
Payment Cycle
???? 3. Collections Dropped
4. Field Supervisor frequently
Default Quota , Penalty, Incentives- ???
recommends for Penalty/Stoppage
Collections -???
Source for Events of Product delivery
Bill Payment Cycle - ??? 5. Time Overrun in receipt of
Ageing of Debtors -??? products by booth

Processes Already Discussed

Case on FMCG-PRM-41 9
 MCS
Systems Nature of Purpose of Focus Area Case of FMCG
systems Systems
Area
Belief Shared To respect Retain I have monopoly in the market
beliefs, core areas of organizational My brand is accepted
Systems purpose organization value I have 100,000 milk producers
Expect annual sales increase by 10%
Every department works in tandem with other
Boundary Formalizatio To encourage To avoid risks Market is focused on city where it is situated
n of rules individual in the domain Marketing is done through distributers and retailers
Systems and logics innovation Quota is lifted through agreements,
within the indents are also raised through telephones / documents
boundary In absence of information, default quota would be honoured
specified Route planning as per demand
Every vehicle has three responsibilities
Commissions, penalty
Billing cycle, payment cycle are managed at collection centres
Diagnostic Feedback, Resource Design critical Demand is recorded with 12 hour notice; Re-order levels,
Controls and allocation and performance stock outs, vehicle availability, milk collection, demand
Systems monitoring of motivation to areas estimation
organization optimization
al outcomes

Interactive Role specific Stay prepared Address Will producers supply milk daily to meet the demand?
controls and for strategic Is the notice period of 12 hours good enough?
Control measureme uncertainties uncertainties What if members stop supplying milk?
Systems nts and take new What if Cattle are not of good quality
initiatives What id interdepartmental coordination fails?
Is the penalty/ incentive structure aligned with margins?
Is the route planning optimized?
How can transactions be made ON-LINE?

Case on FMCG-PRM-41 10