INFORMATION SYSTEM BASED

SUPPLY CHAIN
MANAGEMENT
OF PEPSICO. HYDERABAD.

Subject MIS

Teacher: Muhammad Memon

AN OVER VIEW OF PEPSICO INC.

In late 1880s when an American Pharmacist Caleb
Bradham created a Cola Soft drink by combining natural
ingredients.
The drink became so popular that they decided to expand
it and laid down foundation of Pepsi-Cola company in
1898 with sales of $500 million and 19,000 employees.
Later in 1965 Pepsi-Cola Company and Frito-Lay Inc. the
new Company named PepsiCo Inc. in North Carolina,
U.S.A.
annual revenue more than $65 Billion, and 297,000
employees
product portfolio includes 22 brands
each generates more than $1 billion each in annual retail
sales.

PEPSICO INC. IN PAKISTAN:

In Pakistan the PepsiCo Inc. is doing business on
franchising basis the head quarter of Franchisee
is situated at Islamabad.
the company performs manufacturing processes
in 5 plants situated at Quetta, Karachi and
Hyderabad, with annual growth rate of last 5
years 25%.

VISIT DETAILS:
Address: :
PepsiCo Inc. Factory C-7,
Mirpurkhas Road, S.I.T.E Hyderabad.
Date:
14-Febuarary-2013
Timing:
10 am to 12 pm
Processes Guided By:
Resident
Director Mr. Isamail Zara.

WHY SUPPLY CHAIN MANAGEMENT?

Supply chain management SCM is the integration and
management of complete supply chain from supplier to
store, from store to Manufacturing Department, From
Manufacturing Department to Store, and again from
store to agent, wholesaler and ultimate Consumer.
The System Development Life Cycle comprises of
following steps:

- Planning Phase
- Analysis phase
- Design Phase
- Implementation Phase
- Use or Operation Phase

PLANNING PHASE:
Recognize Problem:
During our visit at PepsiCo we come to know that
PepsiCo was not equipped with any special
system to cater for their supply chain
management specially, the information system
they were following was generally focusing on
whole organization like finance problems, HR
Problems, employee attendance, wage problems,
salary system, financial reporting etc. but most of
work was being performed manually focusing
more on paper work and less use of information
system.

The PepsiCo order, receives, processes and dispatches

thousands of units of inventory on daily basis and the
flow of inventory was almost manually controlled.
Inventory reporting was made manually.
Orders to suppliers and from customers were received
manually which was time consuming and incurring
cost.
No proper check and balance for losses made during
manufacturing process.
PepsiCo Hyderabad was not equipped with web base
system in order to made transactions online.
Returns of unapproved inventory were manually
controlled.

DEFINING PROBLEMS
After recognizing the problem carefully and
making logical analysis we come to know about
basic problems of PepsiCo Supply Chain system
which are:
- Lack of Information System based Inventory
Flow.
- Manually Order System.

SET SYSTEM OBJECTIVES:

MIS based Vehicle flow
MIS Based Inventory Flow System
Online Order System:
MIS Based purchase system
Management Support System
Creates Added-Value for Customers

CONCLUSION:
Reduce wastage of time incurred during material flow.
More secure and reliable data.
Increases sale and non-economic returns
Reduces excessive paper and ordering cost
Customer satisfaction
Demand forecast and planning based on more reliable
data
Online payment system increase receivable collections
Timeliness in delivery of products
Intimacy with creditors/suppliers
High inventory turnover

ESTABLISH SYSTEM CONSTRAINTS:

The basic system constraints are consist of

i- System Development Constraints

ii- After Development of System Constraints
System Development Constraints:
Main system Development constraints are as
follow:
Project Scope
Time period
Budget

PROJECT SCOPE:
The project scope is the definition of what the project is supposed to
accomplish with the specified features and functions in a project.
- Identify Criteria
- Identify Output Information Requirements
- Identify Input Data Requirements
- Prepare a new system documentation
- Design network
- Design Database
- Review Design
- Prepare Program Documentation
- Code Program
- Approved Program
- Prepare Database
- Educate Users

- Cutover to Model
- Test Program


TIME PERIOD:

The suitable time period constraint for this project is

determined as following:
Planning Phase
01 month
Analyzing Phase
01 month
Design phase
1.5 month
Implementation phase
2.5 months
Use or operate phase
5 months
Total time constraint set for project:
10 months

BUDGET:
The budgeting of system after having careful
analysis of system turnover, forecasted returns, and
projected cash inflows and out flows with consent of
System Analysis the following budgeting plane is
announced:
Phase
Estimated Budget
Planning Phase
Rs 100,000
Analysis Phase
Rs 200,000
Design Phase
Rs 100,000
Implementation Phase
Rs 250,000
Use/Operation Phase
Rs 300,000
Total Budget
Rs 950,000

AFTER DEVELOPMENT OF SYSTEM

CONSTRAINTS:

After development constraints can best be

defined on 2 points:
- User Information Satisfaction
- Organizational Impact

User Information Satisfaction:

Satisfaction of user information is very much
important, user information satisfaction is best
parameter to measure assessment of Information
System Implementation, it is defined as Degree
to which users rely on usefulness of Information
System.

ORGANIZATIONAL IMPACTS:
The organizational impact of SCM Information
System is very wide.
It will completely takeover the current system
which is almost manual system.
It increases employees understanding with
modern Supply Chain Management.
Increases Organizations ability to respond
change.
Inventory wastages will be reduced

FEASIBILITY STUDY:

Feasibility study is performed on following

points:

- Technical Objectives
- Economic Return
- Non Economic Return
- Legal and Ethical
- Operational
- Schedule

TECHNICAL FEASIBILITY:
Technical feasibility considers the technical requirements of
projects, the technical feasibility depends upon system analyst
expertise and knowledge to estimate wither technically this
system will be feasible to operate or not?
Technical feasibility of this Information System will be tested
from following points.
Is the project feasible within the limits of current technology?
Does the technology exist at all?
Is it available within given resource constraints?
Is it a practical proposition?
Manpower- programmers, testers & debuggers
Are the current technical resources sufficient for the new system?
Can they be upgraded to provide to provide the level of technology
necessary for the new system?

ECONOMIC RETURN

The new Information System will make

organization more cost effective, it reduces
excessive paper work cost, sales volumes will
ultimately increase, with keeping track records of
inventory flow management can keep records of
rejected supplies from quality Department and
Returns made, also losses incurred during
manufacturing process, these cost can best be
adjusted under new Information System.

NON-ECONOMIC RETURN:
Information system will provide competitive
advantage.
Customer satisfaction will increase.
It will help in make accurate sales forecasting and
demand forecasting on the basis of previous demand
track.
Employees will be trained and more competitive,
and will be able to see situations more clearly than
now.
It increases supplier/customer intimacy,
organization will be able to make quick response to
queries made by management and customers and
suppliers.

LEGAL AND ETHICAL:

Legally new information system will be securing

the data base from un-authorized access.

Operational Feasibility:

Operational feasibility is a measure of how well a

proposed system solves the problems, and takes
advantage of the opportunities identified during
scope definition and how it satisfies the
requirements identified in the requirements
analysis phase of system development.

SCHEDULE:

Schedule feasibility is to assess the duration of

the project determined by analyst, whether it is
too long to be complete before it is useful. System
analysts have to estimate how long the system
will take to develop, and whether all potential
timeframes and the completion date schedules
can be met, as well as whether meeting these
date will sufficient for dealing with the needs of
the organization.

CONTROL MECHANISM:

DETAILED DESCRIPTION OF SDLC CYCLE:

PERT CHART DEFINING

SCHEDULE:

FROM CHART:
For path 1-3

, For Path 4 18:

T.E=0.25

T.E=0.25 Month

T.L=

Month

1.50 Month

For Path 7-9

T.E=

0.25 Months

T.L=

1.25 Month

For Path 14-15:

T.E=0.50
T.L=

Month
1.0 Month

For Path 19-20:

T.E= 0.50 Month
TL= 1 Month

T.L= 3 Month
:For Path 10-11:
T.E=0.7 5Month
T.L=2.25 Month

For Path 16-17:

T.E=0.5 Months
T.L=2 Month

ANALYSIS PHASE:
Announce The System:
- After completion of planning phase and arranging
various meetings the MIS Steering Committee
announces the system study in which committee
announces about the detailed outline of project.

Users Feedback:

Not all the employee will be ready and adaptable to change.

The announcement of new Information system can create
disturbance in working environment as psychologically most
of employees in any organizations are against the change .
-To know there ideas about new system and resolving any
issue they are having with new system. The MIS Steering
committee will be collecting feedback from employees

ORGANIZE THE PROJECT TEAM

The project team organized for developing
Information based Supply Chain Management
will consist of following team members:
Project Manager
System Analyst
Software Architect
Designer
Software Developer
Software Tester

CONDUCT SYSTEM STUDY (DEFINE

INFORMATION NEEDS)

The system study will be based on following

points:

- Authorization:
-Online Ordering Systems:
- Controlled Vehicle Movement:
- Inventory flow:
- Track Records Of Losses During Process:

DEFINE SYSTEM PERFORMANCE CRITERIA:

The Supply Chain Performance Criteria will be
based on following points:
Customer Services:
Quality:
Agility:
Supply Chain Cost:

THE DESIGN PHASE:

ORDER TO SUPPLIER:

PAYMENT TO SUPPLIERS:

REPORT GENERATION:
INPUTS:

PROCESS:

OUTPUT:

ADD CUSTOMER:

PROCESS:

SEARCH PROFILE:

PROCESS:

OUTPUT:

ADD SUPPLIERS:

PROCESS:

SEARCH SUPPLIER:

PROCESS:

OUTPUT:

INVENTORY REPORTS:

PROCESS:

OUTPUT:

GRAPHICAL REPRESENTATION

PROCESS:

IDENTIFY ALTERNATIVE SYSTEM

CONFIGURATIONS:

While determining system configuration we have

to consider:
- Web server configuration
- Data Base System Configuration
- Client machine hard ware and software
requirement

HARD WARE REQUIREMENT:

WEB SERVER CONFIGURATION:
Data Base System Configuration:
The ideal system configurations for Data Base are following:
Small data base:
Processor:
1 processor of 3 G Hz minimum recommended
Ram:
2 GB RAM minimum recommended
Hard disk:
240 GB minimum Recommended
Medium Size Database:
Processor
2 processor of 3 G Hz minimum recommended
RAM:
4 GB RAM minimum Recommended
Hard disk:
500 GB hard disk minimum recommended
Large Size Database:
Processor:
3 Processor of 3 G Hz minimum recommended
Ram:
6 GB RAM minimum Recommended
Hard Disk:
800 GB Hard disk minimum recommended

Client Machine Hardware Requirement:

The recommended Hardware requirement for
client machine is as under:

Processor:
I processor with
minimum 2.5 GHz recommended
RAM:
1 GB Ram
minimum recommended
Hard Disk:
120 GB Hard disk
Minimum Recommended

SOFTWARE REQUIREMENT:

for Data base:

Operating System:
Linux
Internet Browser:
Mozilla Firefox
Data base:
z/OS

10g, Oracle 11g

For Client/User:
Operating System:
Operating

Internet Browser:
Mozilla Firefox

Windows Operating System, UNIX,

Google Chrome, Internet Explorer,
IBM DB2 Version 9.1, IBM DB2 for
Version 9.1, IBM DB2 Version 9.5, Oracle

Windows Operating System, UNIX

System
Internet explorer, Google Chrome,

EVALUATING ALTERNATIVE
SYSTEM CONFIGURATION:
Web Hosting service Evaluation:
Some basic and important features someone should
check before signing up for any hosting package.
Affordable Prices
Unlimited Bandwidth
Unlimited Disk Space
Unlimited Domains could be hosted
24 Hours Uptime
Data Backups
More Secure & Reliable
24 Hours support (Through Ticket or Live Chat)

Following are the top 5 web hosting websites

in Pakistan
Hostgator:
Just host:
Hostmonster :
iPage :
Bluehost:

HARD WARE REQUIREMENT EVALUATION:

For data base server:
Small size Data base:
Small size data base will no doubt be economic to obtain, and will
require less IT Staff personnel to operate and maintain, but this
type of database will lead managers to problems of especially
data storage
Large Size Data Base:
Large Size database are difficult to operate, it requires an
additional IT staff to look after for Database, further more it
increases operational cost.
Medium Size Data base
Medium size Database can prove to be Ideal for medium
organizations as it will not impose excessive operational costs as
compared to large Data base systems, neither find difficult to
retrieve and store large piece of information like Small Database.

CLIENT/USERS MACHINE HARDWARE

REQUIREMENT EVALUATION:
Evaluation of users system hardware configuration is
easy it requires no more expensive hardware with high
configurations, a standard configuration set up is
recommended, following brands are available in market:
HP
IBM
LENOVO
ACER
APPLE
DELL
OPTIPLEX
And so on.

SOFTWARE REQUIREMENT
EVALUATION:
Database Software Evaluation: database
software evaluation will be made on
recommendation of System evaluation, many
database software are available including, IBM ,
SQL, ORACLE, MS ACCESS and so on.
Users Software Evaluation: users system
needs are straight forward, Evaluations are
based on standard requirement of Personal
computer.
Popular Operating systems are Microsofts
Windows, UNIX, LINUX and so on.

SELECT BEST CONFIGURATION:

Web Server Hosting Configuration:
The web server hosting selected by MIS Steering Committee is Just host
web hosting service.
Database System Configuration:
Hardware Configuration: Hardware configuration selected for
Database System is as follows,
Processor
2 processor of 3 G Hz minimum
recommended
RAM:
4 GB RAM minimum Recommended
Hard disk:
500 GB hard disk minimum
recommended
Software Configuration: Software Configuration selected to operate
Database Management is :
Operating System:
UNIX Operating System,
Internet Browser:
Mozilla Firefox
Data base:
Oracle 11g

USERS SYSTEM CONFIGURATION

Hardware Configuration: Hardware
Configuration needed for Users Configuration are
as follow:
Processor:
I processor with
minimum 2.5 GHz
RAM:
1 GB Ram minimum
Hard Disk:
120 GB Hard disk
Software Requirement: Software Requirements
selected for Users system configuration are as
follow:
Operating System:
Windows 7
Internet Browser:
Mozilla Firefox