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MIS SYSTEM OF KFC

JINAN UNIVERSITY
SAIDA LEBANON
FACULTY OF BUSINESS ADMINISTRATION

PROJECT
MANAGEMENT INFORMATION SYSTEM
TOPIC
MIS OF KFC
Instructor
PROF. KAMEL BARBAR
Submitted by:
Afif OsamaZaklit

JINAN UNVIVERSITY

MIS SYSTEM OF KFC


Acknowledgement:
To work on this project was one of the best experience i could ever had. The
immense help and support received from the respondents from College Faculty
overwhelmed me during the project.
I also thank Jinan University for their constant support and guidance. I would
like to express my sincere gratitude to Prof. Kamel Barbar because without his
help this project would not be possible and who has sincerely supported me
with the valuable insights into completion of this project.
I also thank our library where it was possible for me to refer different kinds of
book
Finally, I express my intense gratitude to my parents whose blessings help
me to translate my efforts into fruitful achievement.

Thank You

Afif O. Zaklit

JINAN UNIVERSITY

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INDEX
Sr.No

Table of contents

Introduction to Management Information System(MIS)

Advantages of MIS

Disadvantages of MIS

Introduction to Company(KFC)

History of company

Introduction to Enterprise resource planning (ERP)

Objectives of ERP

Advantages of ERP

Disadvantages to ERP

10

What does ERP include

11

Function of ERP

12

KFC before and after implementing ERP

Page No.

RECOMMEDATION AND CONCLUSION

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EXECUTIVE SUMMARY
It has been immensely founded that Management information system(MIS) is an
very important part of any organization,even a small or big organization needs
MIS in their working.MIS makes the organization very systematic and
orderly.ERP-Enterprise Resource Planning is a part of MIS which is followed
by KFC.Here there is a deep study done on MIS system of KFC so that through
this research we can have a glance on how MIS is useful in any firm. ERP is the
new invention of Information technology in which experts make the system for
integration of all business processes. Enhancing the customer relationship
management is a main feature coming under the core objectives of ERP. The
new web-based system enables quicker generation of inventory,saled and
revenue reports-going from 1hour to 20minutes.This helps the KFC
management to make more accurate and quicker decisions in response to
demand changes. With ERP, business can better control over its billing to
customers and receivables. With the ability to automate processes. It provides
better operational, financial and accounting control over its billing operations
and receivables.ERP system can be used for accomplish every task by
integrating the information system, seamless flow of information across every
department . It is helpful to make automation of every business process. systems
are more secure as centralized security policies can be applied to them. All the
transactions happening via the ERP systems can be tracked. There are various
modules in an ERP system like Finance/Accounts, Human Resource
Management, Manufacturing, Marketing/Sales, Supply Chain/Warehouse
Management, CRM, Project Management, etc.Thus this project has an deep
understanding of the ERP system and its working in KFC.For any proper
working and maintaining of the firm it is mandatory to follow the MIS so that it
works easily without any complexion.

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Management Information System (MIS)

A management information system (MIS) provides information that


organizations require to manage themselves efficiently and effectively.
Management information systems are typically computer systems used for
managing. The six primary components of an MIS are:
1. Hardware
2. Software
3. Firmware
4. Data (information for decision making),
5. Procedures (design,development and documentation)
6. People (individuals, groups, or organizations).
Management information systems are distinct from other information systems in
that they are used to analyze and facilitate strategic and operational activities.

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Academically, the term is commonly used to refer to the study of how


individuals, groups, and organizations evaluate, design, implement, manage, and
utilize systems to generate information to improve efficiency and effectiveness
of decision making, including systems termed decision support systems, expert
systems, and executive information systems. Many business schools (or colleges
of business administration within universities) have an MIS department,
alongside departments of accounting, finance, management, marketing, and may
award degrees (at undergrad, masters, and PhD levels) in MIS.
Terms In Management Information System (MIS)
The terms Management Information System (MIS), information system,
Enterprise Resource Planning (ERP), and information technology management
are often confused.Information technology management concerns the operation
and organization of information technology resources independent of their
purpose.
Most management information systems specialize in particular commercial and
industrial sectors, aspects of the enterprise, or management substructure.
Management information systems, produce fixed, regularly scheduled
reports based on
data extracted and summarized from the firms underlying transaction
processing systems to middle and operational level managers to identify and
inform structured and semi-structured decision problems.
Decision Support Systems (DSS) are computer program applications used by
middle and higher management to compile information from a wide range of
sources to support problem solving and decision making. A DSS is used
mostly for semi-structured and unstructured decision problems.
Executive Information Systems (EIS) is a reporting tool that provides quick
access to summarized reports coming from all company levels and
departments such as accounting, human resources and operations.
Marketing Information Systems are Management Information Systems
designed specifically for managing the marketing aspects of the business.
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Office Automation Systems (OAS) support communication and productivity
in the enterprise by automating workflow and eliminating bottlenecks.OAS
may be implemented at any and all levels of management.
School Information Management Systems (SIMS) cover
administration,and often including teaching and learning materials.

school

Enterprise Resource Planning facilitates the flow of information between all


business functions inside the boundaries of the organization and manage the
connections to outside stakeholders.
Enterprise Application
Enterprise systemsalso known as enterprise resource planning (ERP)
systemsprovide integrated software modules and a unified database that
personnel use to plan, manage, and control core business processes across
multiple locations. Modules of ERP systems may include finance,
accounting,

marketing,

human

resources,

production,

inventory

management, and distribution.


Supply chain management (SCM) systems enable more efficient
management of the supply chain by integrating the links in a supply chain.
This may include suppliers, manufacturers, wholesalers, retailers, and final
customers.[7]

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Customer relationship management (CRM) systems help businesses manage
relationships
with potential and current customers and business partners across marketing,
sales, and service.[8]
Knowledge management system (KMS) helps organizations facilitate the
collection, recording, organization, retrieval, and dissemination of
knowledge. This may include documents, accounting records, unrecorded
procedures, practices, and skills. Knowledge management (KM) as a system
covers the process of knowledge creation and acquisition from internal
processes and the external world. The collected knowledge is incorporated in
organizational policies and procedures, and then disseminated to the
stakeholders.[9]

Developing Enterprise System


Conversion is the process of changing or converting the old system into the new.
This can be done in three basic ways, though newer methods (prototyping,
Extreme Programming, JAD, etc.) are replacing these traditional conversion
methods in many cases:
Direct cut The new system replaces the old at an appointed time.
Pilot study - Introducing the new system to a small portion of the operation
to see how it fares. If good then the new system expands to the rest of the
company.

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ADVANTAGES OF MIS
The following are some of the benefits that can be attained using MISs.

Companies are able to identify their strengths and weaknesses due to the
presence of revenue reports, employees' performance record etc. Identifying
these aspects can help a company improve its business processes and
operations.
Giving an overall picture of the company.
Acting as a communication and planning tool.
The availability of customer data and feedback can help the company to
align its business processes according to the needs of its customers. The
effective management of customer data can help the company to perform
direct marketing and promotion activities.
MISs can help a company gain a competitive advantage. Competitive
advantage is a firms ability to do something better, faster, cheaper, or
uniquely, when compared with rival firms in the market.
It Facilitates planning : MIS improves the quality of plants by providing
relevant information for sound decision - making . Due to increase in the size
and complexity of organizations, managers have lost personal contact with the
scene of operations.

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In Minimizes information overload : MIS change the larger amount of data in
to summarized form and there by avoids the confusion which may arise when
managers are flooded with detailed facts.
MIS Encourages Decentralization : Decentralization of authority is possibly
when there is a system for monitoring operations at lower levels. MIS is
successfully used for measuring performance and making necessary change in
the organizational plans and procedures.
It brings Co ordination : MIS facilities integration of specialized activities by
keeping each department aware of the problem and requirements of other
departments. It connects all decision centers in the organization.
It makes control easier : MIS serves as a link between managerial planning and
control. It improves the ability of management to evaluate and improve
performance . The used computers has increased the data processing and
storage capabilities and reduced the cost MIS assembles, process , stores ,
Retrieves , evaluates and Disseminates the information.

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DISADVANTAGES OF MIS

Depending on organization deployment, usage and extraneous factors,


some disadvantages related to Management Information Systems can
come to the fore. Allocation of budgets for MIS upgrades, modifications
and other revisions can be quite tricky at times.
If budgets are not allocated uniformly or as per immediate requirements,
key functionalities might get effected and benefits might not be realized
consistently.
Integration issues with legacy systems can affect the quality of output and
vital business intelligence reports.
Constant Monitoring Issues.
Change in management, exits or departures of department managers and
other senior executives has a broad effect on the working and monitoring
of certain organization practices including MIS systems. Since MIS is a
critical component of an organization's risk management strategy and
allied systems, constant monitoring is necessary to ensure its
effectiveness.
Quality of inputs into MIS needs to be monitored; otherwise consistency
in the quality of data and information generated gets effected.
Managers are not able to direct business, operational and decision-making
activities with the requisite flexibility.

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Introduction to KFC

Kentucky Fried Chicken is one of the leading fast food Franchise concepts of
today;present in a variety of countries around the world and has been proficient
to launch a renowned International reputation in multiple continents. Starting in
the United States in the 1930s, it has grown to become a true multi-domestic
company. KFC has focused on foreign markets since the 1960s and has initiated
a new challenge today in conquering.
KFC, known as Kentucky Fried Chicken, is a chain of fast food restaurants
based in Louisville,Kentucky.
In the midst of the depression, Harland Sanders who was born just outside
Henryville ( Indiana), opens his first restaurant in the small front room of a gas
station in Corbin, Kentucky.

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The target customer of KFC [upper, middle and above] are health conscious
and hence to cater to their interest Kentucky fried Chicken changed its name to
KFC.
HISTORY OF KFC

KFC was founded by Harland Sanders, an entrepreneur who began selling fried
chicken from his roadside restaurant in Corbin, Kentucky, during the Great
Depression. Sanders identified the potential of restaurant franchising, and the
first "Kentucky Fried Chicken" franchise opened in Salt Lake City, Utah in
1952. KFC popularized chicken in the fast-food industry, diversifying the
market by challenging the established dominance of the hamburger. By branding
himself "Colonel Sanders", the founder became a prominent figure of American
cultural history, and his image remains widely used in KFC advertising. The
company's rapid expansion saw it grow too large for Sanders to manage, and in
1964 he sold the company to a group of investors led by John Y. Brown, Jr. and
Jack C. Massey.
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KFC was one of the first fast-food chains to expand internationally, opening
outlets in England, Mexico and Jamaica by the mid-1960s. Throughout the
1970s and 1980s, KFC experienced mixed success domestically, as it went
through a series of changes in corporate ownership with little or no experience
in the restaurant business. In the early 1970s, KFC was sold to the spirits
distributor Heublein, which was taken over by the R.J. Reynolds food and
tobacco conglomerate, which later sold the chain to PepsiCo. The chain
continued to expand overseas, and in 1987 KFC became the first Western
restaurant chain to open in China.
In 1997, PepsiCo spun off its restaurants division as Tricon Global Restaurants,
which changed its name to Yum! Brands in 2002. Yum has proved a more
focused owner than Pepsi, and although KFC's number of outlets have declined
in the US, the company has continued to grow in Asia, South America and
Africa. The chain has expanded to 18,875 outlets across 118 countries and
territories, with 4,563 outlets in China alone, KFC's largest market.

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Enterprise resource planning (ERP)

Enterprise resource planning (ERP) is a business management software


usually a suite of integrated applicationsthat a company can use to collect,
store, manage and interpret data from many business activities, including: Product planning, cost
Manufacturing or service delivery
Marketing and sales
Inventory management
Shipping and payment

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ERP provides an integrated view of core business processes, often in real-time,


using common databases maintained by a database management system. ERP
systems track business resourcescash, raw materials, production capacity
and the status of business commitments: orders, purchase orders, and payroll.
The applications that make up the system share data across the various
departments (manufacturing, purchasing, sales, accounting, etc.) that provide
the data. ERP facilitates information flow between all business functions, and
manages connections to outside stakeholders.

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Enterprise system software is a multi-billion dollar industry that produces
components that support a variety of business functions. IT investments have
become the largest category of capital expenditure in United States-based
businesses over the past decade. Though early ERP systems focused on large
enterprises, smaller enterprises increasingly use ERP systems.
OBJECTIVES OF ERP
ERP or enterprise resource planning is a commonly used software
package for enhancing the operational efficiency of business resources. It
is a composition of software modules assisting company owners to
achieve their goals at a faster rate. Implementation of ERP for an
organization is done on the basis of company requirements. Today, ERP is
a widely applied software system in all types of industrial fields including
small and medium sized companies. Inventory control, better human
capital management, customer relationship management and order
tracking are some among the key benefits of implementing enterprise
resource planning. Proper implementation of ERP package according to
business needs is benefited with lots of advantages. Before implementing
ERP software, it is advised to do well research on specific field. Choosing
the right ERP software package from a well reputed vendor ensure safety.
Now, let's see in detail the core objectives of ERP.

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Knowing real time information about business field strategies is one of


the core objectives of ERP. ERP software package, which is a blend of
software modules helps in integrating data and real time information. It
helps in better planning and management of resources as per the
requirements of company. Upgrading the needed software modules, better
work flow and improved efficiency are some of the important benefits of
using ERP system. It is found to be very efficient in controlling and
managing organizations at different locations. At present ERP is an
essential tool package used by many of the multinational companies for
achieving their long term goals. Return on investment, best known as
ROI is another core objective of ERP. Proper implementation of ERP
package assists professionals to gain more profit by utilizing available
resources. It is a perfect tool adopted by company owners for delivering
desired output at affordable cost.
In order to compete and win in today's global market field, better
management of resources is an important criterion. Implementation of
ERP controls different functions and enhance company efficiency. Latest
technologies equipped with in ERP software package helps in better
controlling and management of data. If implementation of ERP is done
according to company goals, it assures you more return on investment.
Before planning project, it is advised to design the project in a realistic
approach. This helps employees in maximizing ROI in practical.
Reducing inventory cost is another core objective of ERP
implementation. Better order tracking, knowing customer needs and
business requirements by ERP assists in proper utilization and
management of resources. It enhances operational process and maximizes
the return on investment rates.

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Enhancing the customer relationship management is a main feature


coming under the core objectives of ERP. It increases the quality of
services, shortens delivery times and enhances the performance rate
offered by companies. Error controlling is another core objective behind
ERP implementation in an organization. It helps in better planning and
coordination of business resources so as to achieve maximum profit.

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Advantages of ERP (Enterprise Resource Planning) System:

In order to understand computer networks better, it would be helpful to have an


overview of the applications running on the network. ERP or Enterprise
Resource Planning is an important enterprise application that integrates all the
individual department functions into a single software application.
ERP Systems make it easier to track the workflow across various departments.
They reduce the operational costs involved in manually tracking and (perhaps)
duplicating data using individual & disparate systems. In this article, let us have
a look at the advantages and dis-advantages of implementing ERP (Enterprise
Resource Management) Software Systems.

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1. Complete visibility into all the important processes, across various
departments of an organization (especially for senior management
personnel).
2. Automatic and coherent workflow from one department/function to another, to
ensure a smooth transition and quicker completion of processes. This also
ensures that all the inter-departmental activities are properly tracked and none of
them is missed out.
3. A unified and single reporting system to analyze the statistics/status etc. in realtime, across all functions/departments.
4. Since same (ERP) software is now used across all departments, individual
departments having to buy and maintain their own software systems is no longer
necessary.
5.Certain ERP vendors can extend their ERP systems to provide Business
Intelligencefunctionalities, that can give overall insights on business processes
and identify potential areas of problems/improvements.
6. Advanced e-commerce integration is possible with ERP systems most of them
can handle web-based order tracking/ processing.
7. There are various modules in an ERP system like Finance/Accounts, Human
Resource
Management,
Manufacturing,
Marketing/Sales,
Supply
Chain/Warehouse Management, CRM, Project Management, etc.
8. Since ERP is a modular software system, its possible to implement either a few
modules (or) many modules based on the requirements of an organization. If
more modules implemented, the integration between various departments may
be better.
9. Since a Database system is implemented on the backend to store all the
information required by the ERP system, it enables centralized storage/back-up
of all enterprise data.
10.ERP systems are more secure as centralized security policies can be applied to
them. All the transactions happening via the ERP systems can be tracked.
12. It is possible to integrate other systems (like bar-code reader, for example)
to the ERP system through an API (Application Programing Interface).
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Disadvantages of ERP (Enterprise Resource Planning) Systems:
1. ERP deployments are highly time-consuming projects may take 1-3 years (or more)
to get completed and fully functional.
2. Too little customization may not integrate the ERP system with the business process &
too much customization may slow down the project and make it difficult to upgrade.
3. The cost savings/payback may not be realized immediately after the ERP
implementation & it is quite difficult to measure the same.
4. The participation of users is very important for successful implementation of ERP
projects
hence, exhaustive user training and simple user interface might be critical. But ERP
systems are generally difficult to learn (and use).
5. There maybe additional indirect costs due to ERP implementation like new IT
infrastructure, upgrading the WAN links, etc.
6. Migration of existing data to the new ERP systems is difficult (or impossible) to
achieve. Integrating ERP systems with other stand alone software systems is equally
difficult (if
possible). These activities may consume a lot of time, money & resources, if
attempted.
7. ERP implementations are difficult to achieve in decentralized organizations with
disparate business processes and systems.
8. Once an ERP systems is implemented it becomes a single vendor lock-in for further
upgrades, customizations etc. Companies are at the discretion of a single vendor and
may not be able to negotiate effectively for their services.
9. Evaluation prior to implementation of ERP system is critical. If this step is not done
properly and experienced technical/business resources are not available while
evaluating, ERP implementations can (and have) become a failure.

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What Does ERP Software Implementation Include?

For the small / medium-sized business, there are four distinct facets to an
implementation, and ignoring or short-cutting any of them can lead to a very
unhappy user when all is said and done:
1. Data migration
2. Business Consulting
3. Configuration
4. User Training
Data Migration
You dont want to manually key in your customers and part numbers. You also
want your new ERP system to have all your sales history in place. The good
news is that, from a technology perspective,migrating this information is
usually not a problem. The bad news is that it can usually be done quickly or
correctly, but not both. To migrate data into a new system optimally, allowing
you to use the new system to its potential, will usually entail some data
cleansing (or massaging) activities by both the software vendor and the
end user.
Data migration is not a single-stage activity. Youd want to migrate data ahead
of time, to sanity check and for training purposes (see later), and then again at
point of go-live.

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Business Consulting
The business processes and procedures that youve developed while working
with your entry-level system (and probably some Excel spreadsheets to
supplement it) may work well for you at present and of course you have a
comfort level with familiar processes. But this may not be the best way to
operate once you have a more powerful business software tool at your
disposal. A good ERP Software Vendor will assist you in optimizing your
processes to take maximum advantage of the system, and eliminate procedural
bottlenecks and / or duplication.
Configuration
Your new ERP system will be much more configurable than perhaps youre
accustomed to.
The same system can behave quite differently (and even look and feel
different) depending on how its set up. Getting the initial setup right is crucial
to a smooth implementation. While you should be guided by the vendor, you
need to actively participate in this process to ensure that what you ant to get
out of the system is taken into account during setup. While many
configuration options can be changed / reversed even after you are live on the
ERP system,
by that time your hands will be full, and you may never get to making those
changes. Do it right the first time.

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User Training
No matter how user-friendly a system is, users need training. I believe that in
the small / medium-sized business, there is no point training most end users
until just a few days before go-live. Otherwise most of the training is forgotten /
wasted. A power user or two should be trained ahead of time, but most users
should experience training and go-live as a single, contiguous exercise. Users
should only ever be trained on their actual (migrated) data, and should be
trained on any changes to business processes at the same time.

ERP and its function


After increasing the complexity in business process , ERP has become famous
among business community . If we have to define it in simple way.Then we can
say that ERP is the new invention of Information technology in which experts
make the system for integration of all business processes. For this, they utilize
different software and hardware, with this all process of business like ,
accounting , human resource , production and now marketing are managed .
Now , ERP whose full name is enterprise resource planning ( some says
enterprise resource processing ) is very scientific technique of Controlling
whole business by co-ordination of all information on shared data base . This
technique was firstly introduced by information technology research and
advisory firm Gartner, Inc. in 1990

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Function of ERP

1. With ERP , business can better control over its billing to customersand
receivables. With the ability to automate processes. It provides better
operational, financial and accounting control over its billing operations and
receivables.
2. ERP system can be used for accomplish every task by integrating the
information system , seamless flow of information across every department .
It is helpful to make automation of every business process .
3. Because ERP works on IT's basic rules 'input -process-output ' , So it is also
using as management information system (MIS ) .
4. ERP treats the organisation as single entity and caters to the information
needs of the whole organisation because information is the key resource of
every organisation to win the competition . ERP system provides accurate ,
relevant and timeliness information to all department on one software system
.

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5. Main function of ERP system and softwares is to provide information


updated and on real time.
6. In ERP,you can get answer of any query by its powerful query and filtering
facility.
7. Now advance ERP softwares packages are providing the facility to manage
import export
8. ERP system can easily use in Government , healthcare , financial , retail and
other service sectors .
Key Functions
1. EDI-(Electronic Data Interchange)
2. AMS-(Attendence Mointoring System)
3. CAD/CAM/CAE(Computer Aided Design/Computer Aided
Manufacturing/Computer Aided Engineering)
4. DMS-(Document Management System)
5. CMS(Communication management Systems)
6. SMS(Security Management System)

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KFC Before Implementing an ERP System:
KFC was using multiple IT solutions to address their business
requirements.Because of this,integrity of the reports became difficult to validate
and management had a hard time tracking down their stocks.
They became burdened by multiple data sources that didnt integrate.Lots of
time and money was lost from duplication of order entries and business
processes throughout the outlets.
Numerous hours were being spent each month manually creating
reports,tracking invoices and handling payroll to provide the Head Office with
their month end financial reports.
The reason behind these problems was evident:the systems could not
communicate with one another, The KFC IT team updated KFCs Enterprise IT
structure with JD Edwards EnterpriseOne8.10 to be able to solve
KFCs growing problem of mis-information and inaccurate reports.

KFCs Implementation of an ERP System.


JD EDWARDS ENTERPRISEONE 8.10 offers both the foundation and
operational components,including:
Financial Management
Technical Foundation
Inventory Management
Asset Management
Forecasting
Workforce Management
Time and expense Management
Procurement

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JD Edwards EnterpriseOne 8.10 benefits the company with the following:


Greater efficiencies-reducing duplicate data entry/maintaince
Standardizes business processes
Tracks and manages key data
Greater level of insight into how the business works
Enables to plan ahead
Provides business applications for now,and into the future

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CONCLUSIONS AND RECOMMEDATIONS
The proposed system will not be a different system but,an upgrade to the
existing one.
After an evaluation of various ERP solutions,I came to conclusion that an
upgrade to JD Edwards EnterpriseOne 8.10 to JD Edwards EnterpriseOne
9.0 would be the best choice.
ERP System is very much helpfull to the organization and also the
management becomes proper and maintaince becomes easy.
JD Edwards EnterpriseOne 9.0 includes enhancements for financial
management,supply chain management and humn resource
management.The latest release also includes industrt-specific
caspalibilties
for
engineering
and
construction,Food
and
beverages,commercial real estate,industrial manufacturing and
professional services.
The new web-based system enables quicker generation of inventory,saled
and revenue reports-going from 1hour to 20minutes.This helps the KFC
management to make more accurate and quicker decisions in response to
demand changes.
The system also enables centralized data respository,XML-based
integration with other Applications.Also distribute formatted
documents,results in saving on third party software licensing costs.
The system supports the company to automate inter-company invoicing
and business workflows.
It helps ensuring consistency and enhancing operational efficiency.It
potentially saves 20-30 addistional headcount to process these routine
transactions
The system is user-friendly and there is ease in managing it.

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It helps to save a lot of time and resource for deployment and training
across various countries.
Accounting module provides advanced projrct accounting integrated to an
enterprise general ledger to help deliver better data quality for enhanced
compliance and financial management and multiple options for expense
allocation on projects.
Dynamic configuration capabilities enable sales and customer service
representatives to correctly enter sales order combinations comprised of
products and service offerings.
ERP incorporates customer-driven user interface improvements and
adopts a consistent Oracle standard to enhance productivity and improve
the visual experience.

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REFERENCES
http://www.answers.com/Q/What_are_the_advantages_and_disadvantages_of_
MIS
http://www.ehow.com/about_5494879_advantages-disadvantages-informationmanagement-systems.html
http://elogiboyau.centerblog.net/
http://www.sap.com/index.html
http://www.kfc.com/
http://www.oracle.com/us/corporate/press/017527_EN
http://it.toolbox.com/home/search/?r=jd+edwards

JINAN UNIVERSITY

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