MANAGEMENT INFORMATION SYSTEM IMPLEMENTATION
ARIZONA STATE UNIVERSITY
CIS 235 - INTRODUCTION TO INFORMATION SYSTEMS
WEEK 6
PURPOSE OF DISCUSSION
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Describe an example of a Manufacturing Management Information System model.
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Explain the Implementation of electronic Business (e-Business) in various types of companies
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Describe an example of an electronic office (e-Office) at DG Immigration
Information Systems Manufacturing
The Industrial World always connects our thoughts to an input, process, output
procedure. Data is an input that will eventually become information through a management
system process called Database Management System (DBMS). Data is easy to get, but
information is hard to find. The process of turning data into information needs to go through
a system that has high complexity. Management Information System (MIS) is the main tool
for generating information for decision-making for company development. Manufacturing
companies need information to keep their industry running. Without accurate information,
companies cannot determine policies, decisions, and even regulations that can support the
improvement and development of the company.
Manufacturing Information System (MIS) is included in the overall Management
Information System (MIS) framework. SIM emphasizes more on the production process that
occurs in a production process, starting from the input of raw materials to the output of
finished goods, by considering all the processes that occur.
A.
Input
Internal company data is internal data of the overall system that supports the process
of processing data into useful information. This data includes human resources (HR),
materials, machines, and other things that support the overall process such as transportation,
material quality specifications, maintenance frequency, and others. Meanwhile, company
external data is data that comes from outside the company (environment) that supports the
data processing process into useful information. Examples of external data are supplier data,
government policies on minimum wage, electricity, and others. These data are usually useful
for calculating costs in manufacturing from the beginning to the end of the process.
B.
Process
The process of processing data into information is always identified with the
Database Management System (DBMS). DBMS is synonymous with data management,
where existing data must be guaranteed for accuracy, currency, security, and availability for
users. Activities that occur in data management:
1. Data collection (documentation)
2. Data testing, so that there are no data inconsistencies
3. Data maintenance, to ensure data accuracy and currency
4. Data security, to avoid data corruption and misuse.
5. Data retrieval, can be in the form of reports, to facilitate other data processing.
C.
Output
Information generated from data processing results needs to be classified based on several
subsystems. In this case, the author classifies the output data into 3 parts, namely inventory,
production and quality, where these three do not leave out the cost elements that occur in
them.
1. Inventory; the inventory subsystem has the definition of every product in the company that is
either stored or will be needed. The inventory subsystem provides stock quantities, holding
costs, safety stock, and others based on the results of data processing from inputs. The
inventory subsystem usually has a process purchasing and inventory. Other processes can be
developed according to the needs of the company, but these two processes are sufficient to
represent the entire process in the inventory subsystem. In the purchasing process,
information management needs to document the process of selecting suppliers until the
arrival of materials from suppliers to be processed on the production floor. The purchasing
process needs to be calculated by considering the correlation between purchasing and storage.
If the amount of storage is small, then the frequency of purchases is expected to increase
(with a small quantity of products) and costs will increase. However, if the amount of storage
is large, then the frequency of purchases is small (with a large quantity of products) and costs
can be reduced, but storage costs also increase.
2. Production; the production subsystem needs to be documented and needs to be used as
information to support executives in making decisions. The definition of the production
subsystem is everything related to the processes that occur at each workstation or department.
The information that users need is production scheduling and transactions between work
stations. Production scheduling needs to take into account demand data and production
capacity. This data is usually taken from marketing who knows the future market forecasts,
so that products are not produced too much or too little. In addition to dealing with
marketing, production scheduling is related to human resources in terms of the number of
employees working, employee qualifications, work shifts, and others. Although the number
of employees is small, if the qualifications are good, the production results are of high
quality. Therefore, worker performance determines production scheduling. Bill of Materials
(BOM) is closely related to production scheduling. The relationship between scheduling and
inventory can be correlated through the BOM. Inventory levels will affect the production
schedule, so the BOM of each product needs to be detailed to avoid production delays.
Delays in the components of each product can be seen from the results of data processing, so
that any errors can be corrected for the next scheduling period. Linkages between work
stations need to be supported by a good system. Just In Time (JIT), published by Japan, has
become a well-known system in large companies because of the information process that will
reduce delays in sending products to the next workstation (kanban system). In SIM, it is
necessary to document every transaction process (flow of take, receive, return between
workstations) that occurs to maintain the possibility of delivery errors, damage during
delivery, and others. The transaction process also needs to organize a documentation system
for the storage of WIP and finished goods that will be processed further so that the product is
protected from damage or unwanted things.
3. Quality; the quality subsystem has a very complex definition. Everything is related to quality,
whether it is time, cost, work performance, or selection Supplier. Many other things are not
the absolute definition of quality but need to be included in quality elements such as
maintenance processes. The processes that need to be documented in this subsystem are
Process Control, Maintenance, and Specification of both finished products and materials.
There are many other things that need to be documented, but overall, these three processes
can reflect the quality of the products produced. The maintenance process is included in the
quality section because the biggest process disruption on the production floor is due to
machine maintenance problems. The maintenance process is related to the economic life of
the machine, as well as the length of maintenance performed. Information about the
maintenance process will greatly support production scheduling, so that there are not too
many preemptions (process stops) in each work station. The production process that occurs at
each workstation needs to be documented so that it can later become information, which
workstation has the most influence on the quality of the current product. This determination
can be made by recording defective products that occur at each work station. The quality of a
product is largely determined by consumer desires. Consumers have standards of satisfaction
that are translated into specifications, and these specifications become the benchmark for the
quality of a product. Documentation of product specifications produced can be a measure of
the quality of the current production process. Information about current product
specifications can also be a strategic thinking for future company policies.
D.
Cost
Cost components are included in all subsystems. The goal of manufacturing
companies in general is to achieve profits from the sale of their products. Therefore, an
information system will never be separated from the cost elements that occur in it. The
manufacturing information system illustrates that cost is a component that covers the entire
information output, and cost is also included in each component of the subsystem. That is, in
producing information for each subsystem requires a large cost and at the same time there are
costs that can be reduced from the results of the information obtained from the existing
system.
Of course, someone within the company must be responsible for the development
scenario of the company's information system architecture, which must always work together
with other top management. Experience has shown that to create an information system based
on Supply Chain Management, there must be a representative on the Board of Directors of
the company, which in the business world is commonly referred to as the CIO or Chief
Information Officer. Without this position in the organizational structure, it is impossible to
implement an information system that has a strategic function for the company concerned.
8.1
E- Business Implementation
E-Business is a new business pattern that is widely believed to be a future business
pattern, E-business uses internet technology as its main strength to be able to carry out
various business activities electronically that are efficient and flexible. Lee and Whang
(2001) define e-business as "the use of internet-based computing and communications to
execute both front-end business processes". Meanwhile, Laudon & Laudon (2000) define it
as "the use of the internet and other digital technologies for organizational communication
and coordination and the management of the firm". Through this definition, it can be seen
that the scope of e-business is very broad. It includes all management activities such as
communication, collaboration, or coordination that take place electronically in supporting all
business processes that take place in a company.
In e-business managers can use e-mail, web documents, and groupware to communicate
effectively with employees and various other parties in the company, as well as collaborate
with team work anywhere. As a complement, Oracle company (www. oracle.com) which
produces many applications supporting e-business defines it as "a true ebusiness is a business
that utilizes the full power of the internet to make its operations dramatically more efficient,
less expensive, and more flexible than ever before". From the above definitions, it appears
that ebusiness is applied to make the company's operations more efficient, less expensive, and
more flexible than ever before. In addition, through e-business, companies are not only
expected to experience a decrease in costs but also provide new opportunities for companies
to increase profits through the creation of products and services or expansion as stated by
Laudon & Laudon (2000): "The internet can help companies create and capture profits in
new ways by adding extra value to existing products and services or by providing the
foundation for new products and services".
So far, the application of e-business is more directed at increasing the company's ability
to increase revenue and reduce operational costs, as stated by Barua, et all (2001) that
investment in e-business will increase the success of operational activities, which in turn will
increase the company's financial success. In general, e-business is the use of information
technology/IT, especially the internet in business organizations.
A number of multi-national companies have proven their success because their
management information systems have used IT/internet to produce accurate information and
data in every decision. American Airlines was the first company to use IT technology in its
management information system for ticket booking services. E-business has shown many
levels of excellence because e-business allows remote business transactions without having
direct contact with the client so that the organization will be more efficient (Widiartanto,
2004: 53). In Indonesia, business strategies through e-business mechanisms are increasingly
being used, especially for banking, education, hospitality, trade, hospitals and various other
fields. BCA, DHL, HM Sampoerna, Merpati Nusantara Airlines, Bina Nusantara, Grand
Hyatt Jakarta, and Metrodata are examples of companies that enjoy the benefits of e-business
(Joko Sugiarsono, 2001 in Indrajit, 2002: 27).
1)
Bank Central Asia (BCA)
BCA's information technology excellence has been achieved step by step. E-business
applications began in 1985 and by 1994 were on-line in all branches. A total of US$ 50-7
million was spent. As a result, all BCA branches are now integrated on-line with ATM
facilities that are accessible to the majority of the public. All branches have the same
systems, equipment and procedures for all branches. In the early stages, e-business was
limited to communication between branches or staff, but BCA now utilizes the internet
to connect with customers and branches through internet banking, Klik BCA. For the
largest bank in Indonesia, the use of e-business is not only for efficiency but also to
increase competitive advantage and enable new business opportunities.
2)
DHL
DHL is one of the world's leading transnational shipping companies. Globally, DHL's
investment in e-business is estimated at US$ 500 million per year. Indonesia is allocated
US$1.5 million per year. The funds were used to build a shipment tracking facility called
track and trace (T&T), which allows customers to know where their packages or
documents are. T&T has been around since 1988. Back then, DHL offices around the
world were connected to the DHLnet communications network. Another facility is DHL
connect, which allows customers to print airway bills, create customs documentation,
commercial in voice, pickup requests, provide standard delivery reports and process
transactions via e-mail. The latest development is that each courier is equipped with a
next generation scanner that allows the courier to scan the contents of a customer's
package while connected to the DHLnet network so that the package data including time
of receipt and delivery is instantly recorded in the database.
3)
HM Sampoerna
The cigarette company was introduced to e-business in 1981, but only in the payroll
system. Then starting in 1985, it was developed into the inventory system, fixed asset
system, and general ledger.
4)
Merpati Nusantara Airlines
Merpati Nusantara Airlines is one step ahead in e-business implementation
compared to other companies in Indonesia. Merpati has Merpati Internet Reservation
Access (MIRA) allows customers to make reservations at any time without having to
come to the office. The service was launched in late 1999 in collaboration with
Indosatnet Isolution Service. For MIRA, Merpati and Indosat spent around Rp 210
million. Merpati was determined to make MIRA a stepping stone to create a larger
system, both for internal and external needs. Many airline companies in Indonesia
followed Merpati Nusantara Airlines' lead.
5)
Bina Nusantara University
Since 1995 UbiNus has developed inter-active Voice Respond and Computer Telephony
Integration applications. A year later it was developed again in KRS registration. This
private university also developed an information kiosk service center similar to a bank
ATM. At the information kiosk, students can obtain any information about their courses.
Thus, there are four channels of information services for students. Conventional
communication, through service counters, the internet, and e-mail.
6)
PT Telkom
By realizing that the information and communication (infocom) business is a very
promising future business, PT Telkom has changed the company's vision to "to be a
leading infocom company in the region". The desire to be a leading infocom company in
the region is indeed in line with the global trend prevailing in many countries. PT
Telkom then translated the vision into several business areas, namely phone, mobile,
vision, internet, and services. Meanwhile, currently PT Telkom, which is still perceived
by the public as a telephone company, has opened a Multimedia business area which
includes the internet.
8.2
Implementation of e-Office (Electronic Office)
The Directorate General of Immigration has developed an electronic office system (e-
Office). Some of its modules are intended to improve services for the public, such as e-
passports. Others are aimed at simplifying and standardizing the internal work processes of
the Directorate General of Immigration.
Still remembering the case of the double and fake passport of the convicted tax mafia
Gayus Tambunan, who used the pseudonym "Sony Laksono", reportedly Gayus also has a
fake passport of the country of Guyana, with the name "Tosep Morris". Of course with a
different photo appearance. Various types of wigs and glasses as a differentiator of
appearance are easily obtained by anyone in this country.
The emergence of multiple passports is possible, not only done by a "Gayus" but by
anyone can be done, for example someone who already has a passport at the immigration
office (kanim) of city A, can also make a different passport at kanim B, because so far each
immigration office system is still stand alone, meaning that the passport making system has
not been integrated, so there is no verification. This provides an opportunity for anyone to
counterfeit passports (the emergence of double passports) or with different names.
Currently, there is little chance of passport forgery, because since January 26, 2011, the
Directorate General of Immigration has implemented an electronic passport system (e-
passport), which is equipped with an encrypted data storage chip. The chip has a high level of
security and meets the security standards of the International Civil Aviation Organization,
making it difficult to counterfeit. Through this e-passport, it is hoped that there will be no
more cases of forgery, because the data stored in the chip has been accurately encrypted.
Although it is quite sophisticated, the price is claimed to be affordable by the people of
Indonesia, namely the price of e-passports is only IDR 655 thousand rupiah, still the cheapest
in ASEAN.
The issuance of the e-passport can only be served at the immigration office in Central
Jakarta. West Jakarta Special Class I Kanim, and Soekarno-Hatta Airport Special Class I
Kanim. Previously, the Directorate General of Immigration had introduced the Indonesian
Travel Document (SPRI) or passport system, which could be made in all canims without
being bound by proof of domicile listed on the KTP. Previously, Tangerang KTP holders, for
example, could only apply for an SPRI at the Tangerang Kanim. With the establishment of a
new regulation that uses a biometric-based integrated photo system, the SPRI can be made at
any kanim. Furthermore, data verification will be sent online to the Immigration Data Center
(Pusdakim). The aim is to provide convenience and better service to the public in making
SPRI.
Biometric-based SPRIs have begun to be issued in four of Indonesia's 119 overseas
representatives, namely the Indonesian Embassy in Thailand and Singapore, the Indonesian
Consul General in Penang (Malaysia), and the Indonesian Economic Trade Office in Taiwan.
The SPRI and e-passport systems are part of a number of information technology (IT) system
developments carried out by the Directorate General of Immigration. In addition to being
able to issue e-passports, currently the entire work process in all offices is integrated and
connected in real time and everything is driven by the system. Efforts towards IT-based work
patterns at the Directorate General of Immigration have actually been carried out since the
early 1980s, but the plan has always failed. It was only in 2002 that the grand design of the
Immigration Management Information System (SIMKIM) began. Implementation of
SIMKIM began in 2007 by building infrastructure, such as a pusdakim and developing a
communication network between the Directorate General of Immigration and 33 regional
offices (kanwil), 108 canim, 44 immigration checkpoints (TPI), 13 immigration detention
centers (rudenim), one special unit for Indonesian Migrant Workers (TKI), and four
Indonesian representatives that are connected online.
For the SIMKIM project, a number of local vendors were involved, such as Sigma,
Berca Hardayaperkasa, Comnet Nusantara Integrator, and Telkom. Investment incurred Rp
42 billion, which was used for the purchase of several units of Blade servers and clustering
systems, as well as for the deployment of communication networks using fiber optics and
MPLS networks. In June 2008, the SIMKIM project, which was introduced to the public
under the name electronic-office system (e-Office), was completed, so that all kanim were
integrated and connected online. The e-Office includes a number of modules (applications) to
support the work process at each stage of immigration services, before and after the
implementation of e-Office can be distinguished in the following diagram:
The stages of immigration services include Border Control Management (BCM) which
functions to record the crossing of people into and out of Indonesian territory, and Identity
Management (IdM) which regulates the access rights of each employee to each application
system that is built. The development and implementation of applications in e-Office is not
done all at once, but in stages. IdM, BCM and Single Sign On (SSO) applications, for
example, were implemented in 2009. With IdM and SSO, each officer is organized at the
head office, which will enter a portal using a password. From the portal, their rights and jobs
can be determined; if it is the finance department, then they can only enter the finance
department for visa, residence permit and SPRI services). Basically, all employee activities
will be monitored by the system. For example, the delivery of passport blanks to a canim, can
now be monitored, where the blank arrived, who authorized it to the regional office, canim
and used on behalf of whom. With IdM and SSO, all activities of who and what can be
known.
Monitoring and controlling all immigration work processes throughout Indonesia is done
from the Control Room located on the 9th floor of Bhumi Pura Wira Wibhawa Building. This
control room is used to monitor the performance of all server systems, and immigration
communication networks. In the control room there are 30 IT officers who each monitor each
PC, they have the task of monitoring and serving checking data on people who have
passports, residence permits and tourist visas, passport debarment data, BCM, SPRI issuance
system, IdM and so on. Behind the control room, there is a teleconference room, to conduct
working relationships with regional offices, TPI and so on. The control room serves to
facilitate consolidation, integration and when data is needed quickly.
In addition to the control room on the 9th floor of the building, there is a closed room for
producing passport serial numbers, and a data center room. In the data center there are several
servers from various vendors, which have a very large capacity (in terms of terabytes), so that
currently the data center stores 10 million data, including images and fingerprint rows, related
to the high demand for passport applications which now reaches 3 million applications per
year. The implementation of e-Office provides several benefits, namely; First, the realization
of digital technology-based (electronic) workflow simplification in immigration services. For
example, previously applications submitted from Merauke had to be sent by letter to the
Jayapura Regional Office, then to the Directorate General of Immigration Jakarta, if
approved, a letter would be sent to Jayapura and forwarded to Marauke, with the new system
the administrative process can be done electronically, because data input from Merauke can
be displayed in real time in Jayapura and Jakarta and vice versa. Second, the realization of
standardization of work processes at every stage of the immigration service process at each
Immigration Function Executor. The effect will minimize corruptive actions and conflicts of
interest. Third, the realization of ease of monitoring and supervision through the use of IT-
based administrative systems. Fourth, it has a document management system, so that the
flow of the file completion process at each stage is carried out by the system. Fifth, the file
digitization process, each application attachment in the form of requirements or supporting
data is stored in the form of a digital file, thus facilitating the process of rediscovery.
All implementations do not go smoothly, the most principle obstacle is changing the
culture, especially the old employees is not easy, so it is necessary to educate continuously.
The benefits of implementing an integrated e-Office are that kanim in each place can
find out the condition of the service, both regarding the number of applicants, the status of
the applicant and the officer responsible for the service process quickly and easily. In
addition, digital archiving can be done together with the application process, data checking,
prevention and debarment lists online. Reporting can be done through the system, the
obstacle is the low ability of human resources to master information and communication
technology. Therefore, technical training on the use and maintenance of devices and systems
is needed. The Directorate General of Immigration's work plan also needs
socialized, so that the canim can know and prepare their resources better. In the short term,
the Directorate General of Immigration will conduct intensive physical monitoring through
the placement of CCTV in five major TPIs, namely; Soekarno-Hatta, Juanda, Ngurah Rai,
Medan and Batam, because currently it is only able to monitor who is crossing into Indonesia
from the incoming passport, with CCTV it can monitor the physical.
