BACHELOR IN OFFICE SYSTEM MANAGEMENT (HONS)

ADMINISTRATIVE OPERATIONS SYSTEMS

(ASM 553)

SUBMISSION:
“CASE STUDY”

PREPARED BY:

NBS4A

1. Husna Izzati Binti Mohamad Khairudin 2016954381

2 Nurul Shahira Binti Baddeli 2017892644

3. Nurfazryana Binti Zaki 2017856622

4. Nini Shafika Binti Mohd Zuraimi 2017870432

PREPARED FOR:

Madam Nor Fazalina Hj Salleh

Faculty of Business Management

Uitm Puncak Alam

1. Describe the different system levels found in the case. Provide example for each
levels.

There are four (4) different system levels found in the case: input, processing,
feedback, and output.

a) Input – Flow of work through a system begins with the input of some type of
resource.

Example - Employee collecting or have important information that should be

taken down are what type of occasion, the number of people, the number and
types of dishes, the place, date and time of event.

b) Processing - The transformation of input into desired output takes place

during the processing element, which is composed of methods and
procedures.

Example -The owner will take down the orders, write them on a piece of
paper and note in her calendar. There are times however, one of the help
takes the order and later give it to the owner who sometimes forgets to put a
note in her calendar.

The owner types out and print the list of orders and hand it to the supervisor
who checks the stock of supplies.

c) Feedback – Enables the system to determine whether results are meeting

expectations.

Example -The company is flexible in accepting orders whether small or big

events. Due to this, the company receives a lot of orders either from their
regular customers or new customers. Because of the large orders, the
company is facing a problem of keeping track of orders and making sure they
have enough stock to fulfill orders.

d) Output –Interaction between the input and processing elements produces

output.

Example -Every time they run out of stock of an item, the owner will then ask
one of the help to go and buy the ingredients. This will incur cost.
2. Describe the phases of the order systems used in the company. Provide example for
each level.

a. Input – Flow of work through a system begins with input of some type of
resources. Example, The owner take down the orders, write them on a piece
of paper and note in her calendar

b. Processing - The transformation of input into desired output takes place

during the processing element, which is composed of methods and
procedures. Example, The owner types out and prints the list of orders and
hand it to the supervisor who checks the stock of supplies.

c. Output – Interaction between the input and processing elements produce

output. Example, one of cooks would check for the ingredients in stock for the
orders listed.

d. Feedback – Enables the system to determine whether results are meeting

expectations. Example, Semurni Catering Company received a lot of order,
but then ingredients are not enough, they will have to change customer’s
order. Some customer accepts it; some customers will go to other caterer,
thus this results in lost sale.

e. Controlling – Has both internal and external dimensions. Example, Semurni

Catering didn’t control input and output, they flexible in accepting orders
whether small or big events, and receives a lot of orders either from regular
customers or new customers.

3. The areas in which problems typically occur in the system are:-

 Order from customer

- Most of the time it is the owner who receives the order and she will take down in a
piece of paper and note in her calendar. But in a time got someone usually help to
take the order and give it to the owner who sometimes forgets to put a note in her
calendar

 Important of information’s customer

- Important information that should be taken down are what type of occasion, the
number of people, the number and types of dishes, the place, date and time of event.
But since there is no printed form, sometime the information taken is not complete.

 Label of the ingredient

- The stocks are not labelled correctly in terms of weight and or amount. So when
the owner gives the list of orders to checks the stock suppliers, it become
cumbersome. So, the cook would just estimate whether the stock is enough. If it
is estimated as enough, they do not purchase more stock. but it’s become a
problem when some ingredients is not enough, they will have to change the
customer’s order.
  Incur cost
- For wet ingredients they buy when receive orders but for the dry ingredients, they
buy in advance. There are many times they run out of the dry ingredients and do
not purchase enough wet ingredients especially when orders are not properly
recorded. So, when it happen, the owners need to ask someone help to buy the
ingredients and it will effects incur cost.

 Inventory on hand
- Owner of this company do not have inventory on hand. It is very important for this
company. It can help to reduce cost because they buy in bulk and also can help
customers who have urgent need for catering and not lose sales during festive
season.

4. Different between order qualifier and order winner are: -

Order Qualifier Order Winner

 Order qualifier is must have excellent
quality since everyone expects it
 Order winners is Dell competes on all
four priorities
a. Southwest Airlines competes
on cost
b. McDonald’s competes on
consistency
c. FedEx competes on speed
d. Custom tailors compete on
flexibility

5. Two competitive priorities found in the case.

 Flexibility Competitive Priorities, it is because the company is flexible in

accepting orders whether small or big events. Besides that, it is known for its
good food, flexibility, low price and generosity. The company could improve
their service especially in delivering order from customer, Maybe they can
provide the online system so they can track, Key-in & update the customer
orders from the system.
o The competing on flexibility have (2):
 Product Flexibility
 Easily switch production from one item to another
 Easily customize product/service to meet specific
requirements of a customer
 Volume Flexibility
 Ability to ramp production up and down to match
market demands
  Quality Competitive Priorities, based on the case, we can see the problem
happens for the items stock. The ingredients were not labelled correctly in
terms of weight and amount. There are times they run out of the dry
ingredients and do not purchase enough wet ingredients especially when
orders are not properly recorded. In other to make sure the stocks is always
sufficient for costumers orders. They have to do a listing for wet & dry items.
And for the labels, they should request from their suppliers to prepare the
items in ready, with the correctly labels, weight and amount as per requested.
o The competing on Quality have (2):
 High Performance Design
 Superior features, high durability & excellent customer
service
 Product & service consistency
 Meets design specifications
 Close tolerances
 Error free delivery

6. Competitive priority that could be used as order winner for the company.

 Time Competitive Priorities. In order to make sure the service is going smooth as
they can preparing the foods, delivering the items as soon as customer request. The
company can improve on their time management. Make a proper schedule for the
staff. Maybe some rotation.
 Time Competitive Priorities have (2):
o a. Fast Delivery
 Focused on shorter time between order placement and delivery
o b. On-time delivery
 Deliver product exactly when needed every time
o c. Rapid development speed
 Using concurrent processes to shorten product development time.

7. Two types of cost of the company would incur if they do not keep enough inventories.

 Shortage Costs, Shortage costs are those costs incurred by an organization when it
has no inventory in stock. These costs include: Loss of business from customers who
go elsewhere to make purchases. Loss of the margin on sales that were not
completed. The example of cost is:
o Loss profit, expediting & back ordering expenses

 Risk cost, the cost of managing risks and incurring losses. Total cost of risk is the
sum of all aspects of an organization's operations that relate to risk, including
retained (uninsured) losses and related loss adjustment expenses, risk control costs,
transfer costs, and administrative costs. The example of cost is:
o Damage, theft and taxes associated with the volume of inventor held.
 8. Automated administrative system that would help the company to overcome the
problem of not having enough stock.

The Modern Office: Integrated, automated functions

1st punched-card 3rd : Word

2nd : Computer
data processing processing system
based operation
system

Integrates family of machines
functions was developed for
recording, storing, processing
and printing information.
This way can help the company
to keep the tracking of orders
and making sure they have
enough stock to fulfil orders.
Further integrated the activities in
information cycle.
The system should be able to
record the important information
for the company so that the
infromation taken is complete.
This system also should can be
access to every worker not the
owner only, because there are
times when the helper will take
the orders from the customer. So
it is important for them to key-in
all the information into the
system when received the
orders.
Separate systems for storing,
processing and printing text
Word processing system began
to use the computer for
performing a several functions
This process will help the
company to labelled the stock
correctly in term of weight and
amount.
This process also will help the
cooks to estimate the ingredients
correctly.

9. Three ways the company can use the inventory.

 Fluctuations/safety stock
o Carried as a cushion to protect against possible demand variation, “just in
case” of unexpected demand. There is often an uncertainty of demand for
one’s products. Without safety inventory, there would be lots of missed
opportunities when unexpected demand spikes aren’t fulfilled because of
insufficient stock.
 Lot-size or cycle stock
o Take advantage of quantity discounts or purchasing efficiencies.
o Results when a company buys or produces more than is immediately needed.
The extra units of lot-size inventory are carried in inventory and depleted as
customers place orders.
 Anticipation Inventory
o When a business anticipates an event that will require more inventory than
usual, it acquires anticipation inventory. For example, a business may
anticipate increased demand because a competitor will go out of business
and will build up inventory for that event.