2. Assignment - Mis for Proton

TUGASAN SEPTEMBER 2014 SEMESTER

KOD KURSUS

NAMA KURSUS

PROGRAM

NAMA PELAJAR

NO. MATRIK

NAMA FASILITATOR AKADEMIK

PUSAT PEMBELAJARAN

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INTRODUCTION

Management Information Systems (MIS) is the study of people, technology, organizations and the relationships among them. MIS professionals help firms realize maximum benefit from investment in personnel, equipment, and business processes. MIS is a people oriented field with an emphasis on service through technology. If you have an interest in technology and have the desire to use technology to improve people’s lives, a degree in MIS may be for you.

Businesses use information systems at all levels of operation to collect, process and store data. Management aggregates and disseminates this data in the form of information needed to carry out the daily operations of business. Everyone who works in business, from someone who pays the bills to the person who makes employment decisions, uses information systems. A car dealership could use a computer database to keep track of which products sell best. A retail store might use a computer-based information system to sell products over the Internet. In fact, many businesses concentrate on the alignment of MIS with business goals to achieve competitive advantage over other businesses.

The initial concept of MIS was to process data from the organization and presents it in the form of reports at regular intervals. The system was largely capable of handling the data from collection to processing. It was more impersonal, requiring each individual to pick and choose the processed data and use it for his requirements. This concept was further modified when a distinction was made between data and information. The information is a product of an analysis of data. This concept is similar to a raw material and the finished product. What are needed are

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information and not mas of data. However, the data can be analyzed in a number of ways, producing different shades and specifications of the information as a product. It was, therefore, demanded that the system concept be an individual- oriented, as each individual may have a different orientation towards the information. This concept was further modified, that the system should present information in such a form and format that it creates an impact on its user, provoking a decision or an investigation. It was later realized then even though such an impact was a welcome modification, some sort of selective approach was necessary in the analysis and reporting. Hence, the concept of exception reporting was imbibed in MIS is the norm for an exception.

MIS professionals create information systems for data management. In addition, they manage various information systems to meet the needs of managers, staff and customers. By working collaboratively with various members of their work group, as well as with their customers and clients, MIS professionals are able to play a key role in areas such as information security, integration and exchange. As an MIS major, you will learn to design, implement and use business information systems in innovative ways to increase the effectiveness and efficiency of your company.

A common misconception is that MIS only concerns programming. However, programming is just a small part of the MIS curriculum. While programming concepts represent some of the founding concepts and information systems development, implementation and use, many jobs in MIS do not utilize programming at all. A large portion of the MIS degree focuses on data analysis, teamwork, leadership, project management, customer service and underlying business

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theories. These aspects of the degree are what set the MIS professional apart from a computer science specialist.

BACKGROUND OF PROTON

Based on the task, this project have chosen that Proton Holdings Berhad as the organization which will be studied and explore. It has been the largest automotive brand in Southeast Asia. For decades, Proton has strived to distinguish PROTON from others by reflecting the quality and persevering in perfecting the brand and product design, in order to become a global automotive player. Below is the well-known Proton Holdings Berhad assorted logo.

However since the evolvement of the Proton Holdings Berhad, they have change their logo throughout the years. Below are the transformation of Proton’ logo.

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Proton’s factory is situated in Industrial Area HICOM , Batu Tiga, Shah Alam which had opened on 9 Julai 1985 and launched by the Prime Minister YAB Tun. Dr. Mahathir bin Mohamad. After 20 years of operation, Proton has launched another factory at Tanjung Malim, Perak which

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has been launched by Dato’ Seri Abdullah Ahmad Badawi. On 2 Ogos 2008, Proton has celebrated a 3 million cars production.

Proton Organization History

Perusahan Otomobil Nasional Berhad (PROTON) was incorporated in May 7, 1983 to manufacture, assemble and sell motor vehicles and related products, including accessories, spare parts and other components. PROTON produced Malaysia's first car, the Proton Saga, commercially launched on July 9, 1985 by then Malaysian Prime Minister, Dato' Seri Mahathir Mohamed, who had originally conceived the idea of a Malaysian car.

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Proton Saga Launching on 9 Julai 1985

Its model line-up includes the Waja, Satria GTi, Wira, Iswara, Arena, Perdana V6 and Juara. The range of 1.3, 1.5, 1.6, 1.8 and 2.0 litre engines satisfies a wide spectrum of customers both locally and abroad. PROTON's main plant in Shah Alam, with an area of 923 900 sq metres, was originally designed for a capacity of 80 000 units per year. In 1997, capacity increased to 230 000 units per year with the construction of the Medium Volume Factory, which is next to the Main Plant. Today, the Shah Alam factory is capable of producing 240 000 vehicles per year.

Besides being shareholders, Mitsubishi Corporation and Mitsubishi Motors Corporation are also PROTON's technical assistance partner and component supplier. PROTON has a total of 11 subsidiaries and 11 associate companies, which are involved in manufacturing, research and development, sales and service activities.

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December 30, 1996, marked the launch of the Proton Putra, a two-door coupe, as well the production of our millionth car from the Shah Alam plant. PROTON made a major step in upgrading its engineering capabilities with the acquisition of Lotus Group International Limited, a British automotive engineering company and manufacturer of luxury sports cars in October 1996. Together, PROTON and Lotus offer large scale manufacturing capabilities with worldclass engineering expertise.

PROTON cars are making their mark internationally as competitive and innovative automobiles. They are now being exported to 50 countries including the highly competitive United Kingdom and continental European markets. With concerted and unswerving commitment from customers, business associates, shareholders, government agencies, and employees, PROTON is realising its goal of being an internationally successful Malaysian automotive manufacturer.

It is achieving this by being customer oriented and by producing competitively priced and innovative products. Thus, it is contributing to Malaysia's attainment of Vision 2020. With solid base built up over the last 10 years, Malaysia's car manufacturing industry is progressing vigorously.

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MANAGEMENT INFORMATION SYSTEM OF PROTON

A management information system (MIS) is a computerized database of management information in PROTON are organized and programmed in such a way that it produces regular reports on operations for every level of management in a company. It is usually also possible to obtain special reports from the system easily. The main purpose of the MIS in PROTON is to give the managers feedback about their own performance; top management can monitor the company as a whole. Information displayed by the MIS typically shows the actual data of PROTON over against planned results and results from a year before thus it measures progress against goals.

The MIS of PROTON receives data from the company units and functions. Some of the data are collected automatically from computer linked checkout counters of PROTON whereby others are keyed in at periodic intervals. Routine reports are preprogrammed and run at intervals or on demand while others are obtained using built-in query languages in the organization of PROTON whereby display functions built into the system are used by managers to check on status at deskside computers connected to the MIS by networks. Many sophisticated systems in PROTON also need to be monitored and displayed the performance of the company's stock.

Since Proton Holdings Berhad is the most establish company in Malaysia, they have used and own also the most establish MIS to be operate successfully throughout the evolvement of the company within this 25 years. Proton has been used SAP MIS in whole developing and production process.

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Before we look closer to the SAP system of PROTON, we first need to know that PROTON has its own policy towards the system used. Based on the interviewee, in order to have the system to operate, the program must be in MySQL language. Even though PROTON is a big production company, they still choose to use MySQL language because it is an open source program and it is cheaper compared to Oracle which is licensed and expensive. Another things about PROTON is that previously most of the PROTON system involve UNIX operation system but now they are moving forward in using the Microsoft operation system.

Since PROTON is a large corporation, they also have three data center to support the capacity of the data and each act as backup data center for the other. This data center is situated in Shah Alam, Tanjung Malim and OUE. This data center has 1 high-end server that integrates with 7 servers. Previously, Proton only has 3 servers to operate but due to high demand in the production process they bought another 4 server.

Through all this 25 years of evolvement, PROTON has used 3 systems which are INTRA, .net and SAP. SAP in a new implemented system in PROTON which have been currently operate for 3 to 4 years. This system is used in order to replace the INTRA and .net systems that have been used for about 5 to 6 years and not sufficient enough to meet the latest technology. Besides this big operational system, PROTON allows each division in the company to have their own system but still they have to integrate it with the SAP system.

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This is due to the needs and requirements involve in each division. Any new created project will have their own division to run. However, PROTON still provides or allows some system to be created internally by the Information System of PROTON division. In order to do this, the proposal has to be submitted to the Procurement Council so that they have their budget either to outsourcing it or made internally. Members of the council are include the board of directors and senior Information Technology Management team.

Now let us look at the SAP system used by Proton Holdings Berhad. SAP or System Application Programming is a German global software corporation that provides enterprise software applications and support to businesses of all sizes globally. Headquartered in Walldorf, Germany, with regional offices around the world, SAP is the largest enterprise software company in the world (as of 2009).

It is the world-leading provider of business solutions & operates in Kuala Lumpur since 1992. It is also the largest software company in Europe and the fourth largest globally. The company's best known products are its SAP Enterprise Resource Planning (SAP ERP) and SAP Business Objects software. Besides PROTON, Petronas Company also use this system to manage their productivity and this German company has over 500 clients that use SAP system in Malaysia. We are focusing in SAP Enterprise Resource Planning (SAP ERP) only. PROTON uses this SAP ERP because it manages 4 major components such as:  Money  Material  Manufacturing

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 Machines

Despite these components as said above, PROTON chooses SAP in the ERP that function towards below criteria which its roles and responsibilities provides a big portion of influence towards PROTON as a whole:  Finance  Material  Quality  Maintenance and HR  Production

So based on Proton Holdings Berhad demands above, they have been used several SAP systems such as below: Customer Relationship Management (CRM) Enterprise Resource Planning (ERP) Product Lifecycle Management (PLM) Supply Chain Management (SCM) Supplier Relationship Management (SRM)

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Example of the integration with other Information System in the organization

Based on the picture above, we can see the integration within the Information System owned by PROTON. Since PROTON mainly used the SAP system. From here, we can see that the main SAP system which is situated in Shah Alam has to be integrating the result or data wih the SAP from Casting Plant department which situated at Glenmarie, Shah Alam and also combine with the SAP system at Tanjung Malim. This structure shows to us how the integration happens in the company using SAP PI. The yellow boxes are the systems that operate to produce the specific focus.

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Specific IS system exploration We are going to focus on SAP PI which means that we are focusing on SAP Process Integration system. SAP using PI, allow the system to:  Enabling Application-to-Application Processes  Enabling Business-to-Business Processes  Business Process Management  Enabling Enterprise Services

According to PROTON, they had been using this SAP PI to integrate throughout the process and the system in all PROTON division. [14]

Obviously, there must be reasonable purposes for PROTON in using this system integration throughout its division. With the usage type PI, Proton can integrate applications from one or multiple systems. SAP differentiates between the following areas:

 Cross-system application integration, which does not focus on individual end-user actions. Applications can be company-internal, cross-company, SAP or non-SAP applications. The SAP NetWeaver usage type PI incorporates all functions that were previously a part of SAP Exchange Infrastructure (SAP XI).

 The modeling, administration, and automation of user-driven processes within SAP systems. From a technical viewpoint, a core function of the runtime is that you can save the state of a previously-modeled process and call it up at a later stage, if the process is to be continued as a result of a particular action or event. Since the execution of processes can be useful when integrating applications across system boundaries (without user actions), relevant functions within SAP NetWeaver are reused for this purpose. Together, the functions referred to here are known as Business Process Management.

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However, the diagram below will show how PROTON has the integration within the SAP PI system. So based on this diagram, PROTON can ensure that the flow of data and the production that happen in the whole system are integrated accordingly with the guidelines and procedures as stated in the system as a whole.

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ADOPTION OF NEW SYSTEM IN PROTON

PROTON Holdings Bhd has started using its web-based product data management (PDM) system to enable its 1,500 engineers to save up to 75% in time taken to develop products, said chief executive officer Tengku Tan Sri Mahaleel Tengku Ariff.

The solution will allow

information to be easily available during the product-design cycle, as well as to improve communications and collaboration among participants in the development process.

The Product Data Management (PDM) system is an improvement from existing systems used by Proton, which was restricted to its Shah Alam headquarters. The system will be linked with all the manufacturing facilities in Shah Alam and Tanjung Malim. It will also allow local engineers to have a real-time communication with overseas design and engineering centers, such as Britain-based Lotus Engineering and MV Agusta Italy, for global sharing and management of engineering data.

The Product Data Management (PDM) system would help reduce costs in maintaining a connection infrastructure between the Shah Alam and Tanjung Malim facilities. The infrastructure connection from Shah Alam to Tanjung Malim cost about RM250,000 annually.

The Process of PROTON Developing a completely new vehicle is a complex and highly detailed process, usually taking 36 months from initial concept stage, to the production of a road-worthy model. PROTON’s state-

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of-the-art facilities combined with the expertise of Proton engineers mean the process of developing new models has been reduced to 24 months.

The Research and Development facility, where the dreams of the nation are transformed into reality, provides a complete and comprehensive range of engineering services both for the automotive industry as well as for engineering consultancy for any industry requiring Research and Development expertise.

As one of the engines of growth for the country, PROTON has the responsibility to contribute towards the industrialization of the nation. The facilities and expertise available at PROTON’s Research and Development facility provides Malaysia with the capability to lead the way by offering a complete range of engineering solutions to both local and foreign companies.

Every new vehicle development begins with Concept Formulation: a brainstorming process placing you, the consumer, at the center of the idea which is trying to forecast exactly what you will expect and need from your car, through studying styling trends and product segmentation, several years before you’re even started thinking about buying it. Idea Sketches are hand-drawn and modeled using computer tools. Miniature Scale (1:3 ratios) is built, and upon concept approval, the concept will progress to the Design Development phase.

The design development phase is the development begins to fill in the details of the concept car, supported by sophisticated digitizing layout planning computer modeling software which creates external surface (A-surface) data for form and shape.

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A 1:1 full-size scale model is built, finished and painted, and if this is approved, a StylingEngineering Feasibility study examines the practicality of body engineering and car internal systems installations, while 3D computer modeling adds refinements to the computer simulated model, together with internal surface data (B-surface).

ADVANTAGES OF THE MANAGEMENT INFORMATION SYSTEM FOR PROTON

In accordance with the Senior Manager of Information Technology division in Proton Holdings Berhad, SAP is a proven process and has been used internally or world-wide. Besides that it has a shorter time of development for either a ready-made system and customizes system because some of the system is ready made by the German company. The SAP system has never been corrupted in the entire runtime process compare to other supporting system that used to be corrupted due to the lack of maintaining.

SAP system is also used because of its high effectiveness in reporting tools. Previously Proton used Crystal Report Tools to generate the report but this tool only generates report but do not have any input data area process. Meanwhile, the SAP system provides the input data area and at the same time generates the report. It is also have the best support system and provide the support and backup all the time for the Proton.

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Besides the main SAP system, Proton also use SAP ERP. The advantage that Proton choose SAP ERP is because:

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SAP is a powerful tool that integrates multiple business processes and functions into one comprehensive system.

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SAP reduces lack of integration across business line which will raise the risk of duplication, mistakes and inconsistency data.

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SAP provides different approach than their competitors in market. Each piece (module like FI, MM, SD) can operate independently from all other software. And the key benefit of using this approach is that companies can implement individual module that fits the company needs, and have the flexibility to add other module later when their business grows.

It is important to note that a MIS should not only indicate the status of a business’s conditions, but also indicate why the conditions are improving or deteriorating. For example, a MIS of PROTON should report performance relative to cost and profitable or unprofitable projects, while identifying individual accountability in both current and past.

This can be done only if such reports are based on constantly updated information accessible to those in authority who are responsible for assessing and assuring it is used for timely decisionmaking.

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BENEFITS OF MANAGEMENT INFORMATION SYSTEM IN PROTON

Often the intangible benefits of system information management are the critical point in the course of business of a company's wheel. Because it is intangible, the following aspects are often overlooked or not detected.

Therefore, I would like to highlight some benefits that could bring PROTON towards more competitive in the future with its strong Management Information System that could help it to thrive throughout the nation with the vision 2020 slogan and together with the world’s development and globalization.

1. Increased customer satisfaction Good management information system will speed up the process so that, the time required to serve a customer can be faster.

2. Improved quantity and quality of information Information is an important component of business today. Who controls the information would act more responsive to changes and trends in the future. Application of good information system will certainly generate reports compilation of data that is managed by qualified and comprehensive database. This can be achieved for each of the reporting process is executed automatically by computer machines. The quality of the information in the organization of PROTON is crucial as it is expanding its business throughout the years.

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3. Improved quality and quantity management decisions It is inevitable that any decision-making relies heavily on information that supports the policy to be taken. It can only be realized if information systems can provide information that is relevant, accurate and current can be retrieved at any time.

4. Improved quality and responsiveness number of the competitor’s condition Aspects of business intelligence are very important since a long time with a variety of formats and needs. To reach the point of rapid and appropriate response on the dynamics of the competition will require information systems that can collect, analyze and compile the information needed by decision makers in the company.

5. Improved operational efficiency and flexibility All business owners would want these. The more efficient and flexibly an operational then this indicate the low cost to run it. This can be achieved due to cut the bureaucracy in the company after the implementation of good information systems.

6. Improved quality of internal and external communications A good information system must be supported by electronic data communication network systems that are reliable as well. With the application of good information systems, each party both inside and outside the company can exchange information more effectively and efficiently. This is a crucial element for PROTON as it is becoming the nation’s premiere automobile brand which holds many vendors which needs better and improved communication systems.

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7. Improved quality of planning Planning is an essential process for businesses. However, any plan that will be made then of course needed the support of adequate information into practice. If not then the plan may be disoriented and did not reach its target because of mistake information into its base.

8. Improved quality control and supervision. With the information system is built and maintained properly then any activity within the business environment can be constantly monitored. Monitoring is certainly an impact on improving control over every procedure and activities occurring within the company.

CONCLUSION

Management information systems have changed the dynamics of running businesses efficiently. Decentralization is one of the biggest advantages; it allows monitoring of operations at low levels and frees up resources for departmental managers to devote time to strategic activities. Coordination of specialized projects and activities is much better and decision makers in the organization are aware of issues and problems in all departments. Another advantage of MIS is that it minimizes information overload, which can be quite common with conventional businesses in the modern era.

MIS has to be designed and managed in such way that it aggregates information, monitors the company's activities and operations and enhances communication and collaboration among

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employees. This ensures better planning for all activities and better ways to measure performance, manage resources and facilitate compliance with industry and government regulations. Control helps in forecasting, preparing accurate budgets and providing the tools and vital information to employees, top management and business partners.

The purpose of MIS is to generate synthesized and processed information from computerized and automated and certain manual systems. Information distribution to all levels of corporate managers, professionals and key executives becomes quite seamless with streamlined MIS. Managers are able to make quick, timely and informed decisions. Top management and board members can take strategic decisions, plan future growth and business expansion activities based on the data and information generated by MIS.

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O'Brien, James (2004), "Management Information System". New Delhi:TMH, p;527.

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