Question

In: Operations Management

ICTx, a family-owned manufacturer of budget computers, has grown exponentially over the last few years. However,...

ICTx, a family-owned manufacturer of budget computers, has grown exponentially over the last few years. However, the company is having difficulty preparing for future growth. The only information system used at ICTx is an antiquated accounting system. The company has one manufacturing plant located in Gaza; and three warehouses, in Rafah, Wastta, and AlNasser. The ICTx sales force is national, and ICTx purchases about a third of its computer parts and materials from a single overseas supplier. You have been hired to recommend the information systems ICTx should implement in order to maintain their competitive edge. However, there is not enough money for a full-blown, cross-functional enterprise application, and you will need to limit the first step to a single functional area or constituency. What will you choose, and why? Hints: your answer should discuss the TPS

MIS ”chapter 2 Global E-business and Collaboration”

Solutions

Expert Solution

The information system that should be implemented to overcome the problem of the company is TPS ("Transaction Processing System"). A TPS is a software system, or can be combination of software/hardware that enables transaction processing. TPS is a category of information system (IS) that gathers, stores, updates and accesses business transaction of a company.

  • As stated in the problem the company is growing very rapidly.
  • The warehouses where the inventory or stock of the company is available at three distinct location that is in Dubai, Abu Fhabi, and RAK.
  • If TPS is selected as an IS of the company then the data stored at warehouse and the transactions made there can be stored at the center place and the process of information accessing, modifying, and viewing can be done appropriately.
  • TPS system can be utilized by accounting, production, manufacturing department of the company. The communication and interaction between these functional units can also be made easier with TPS.
  • The TPS can also be integrated MIS ("Management Information System") and other higher level information systems.
  • Using TPS each functional unit can synchronize their processes and activities.
  • TPS will also help the vacuum company managers to monitor the status of internal operations of the company as well as relations of the company with the external environment.

Why?

Reasons to select TPS for Information System

  1.    Efficient Performance
  2.   Continuous availability of the data for running business operations
  3. Maintains Data integrity
  4. TPS is easy to use.
  5. TPS supports modular growth

Explanation:

TPS ("Transaction Processing System")-

  • A TPS is an information system that collects, organizes,updates and retrieves the data transactions of an enterprise. TPS will help the vacuum company to give a predictable response in real-time to requests.
  • With TPS the daily routine transactions made in the company that is needed to run the business are recorded in a computerized way. This feature makes the facilitation of the information in real-time like to track inventory status sales etc.
  • When all the business operations will be performed efficiently, effectively, and on-time then naturally the company will achieve a competitive advantage.

There are 2 types of processing supported by TPS-

  1. Processing in a batch-Transactions may be gathered and processed in a group for batch processing.
  2. Processing in real-time-Here the data is proceeding in real-time. To process the business transaction that needs real-time processing can run here.

How TPS can be a good choice for Information System for the company-

The TPS can provide the following advantages in the organization-

Efficient Performance

TPS can execute several transactions that can be processed rapidly in real-time. Thus, it can speed-up business processes and functions.

Continuous availability

The TPS facilitates consistency in the system by providing continuous data flow in functional units of the organization. Thus, it cannot halt the organizational processes due to a lack of data availability.

Data integrity

The TPS information system's security policies maintain data integrity. Un-Consistent transactions are prohibited that can harm the data integrity and accuracy.

Ease of use.

TPS can be used easily by each functional head. The storing, accessing, and processing of the data can be performed easily in TPS.

Modular growth

TPS can be best suited to meet the exponential growth needs of the company. It is possible with TPS to add, remove, and reconfigure hardware/software components as per need.

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