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Project of

Information Management
Topic
Role of Information System in Finance Department of Oil & Gas Development Company Limited (OGDCL)
BBA 5th Semester
Submitted to:

Mr. Aziz-Ul-Rehman Rana

Submitted By: Sha ad-Ul-!a" Babar Rehman !aider #han $mer %azir !assan &arhan Raza &ayzaan 'a(aid

Department of Business Administration


Foundation University Institute of Management and Computer Sciences

List of contents
Role of Information System in Finance Department of OGDCL
Visit Report Acknowledgement Practical Study of Organization Vision Statement Mission Statement Introduction To The ompany

!sta"lishment of O#$ %

Initial Successes Transition to a self financing entity Initial Pu"lic Offering #$R

ompany Profile

ore Values

Ma&or Products 'uyers Organizational Structure Introduction to the Topic Types of Information System

RO%! O( I)(ORMATIO) T! *)O%O#+ , I)(ORMATIO) S+ST!M I) O#$ %


$ecision Support System -$SS. Transaction Processing System -TPS. Office Information System -OIS. PA+RO%% S! TIO) O#$ % A TIVIT+ (%O/

*ART PA+RO%%

S! TIO) O#$ %
MIS and !SS 0uestions and Answers

omputer $escription1

/hich Operating System They 2se1

/hich $ata"ase Software They 2se1 Is Organization gi3es training to their

!mployees to use Software1


/hich )etwork They 2se1 /hich )etwork Topology They 2se1 *ow They Store $ata1 *ow Organization gather information

from Outside1
/hich 'ackup Techni4ue They 2se1 *ow The Information Tra3els1 Trou"leshooting Organizational Structure of (inance , Accounts S/OT A)A%+SIS of the Merits , $emerits Suggestions

ompany

onclusion

Previously OGDCL was using software namely Artesia Data System developed by an international consultant Cooper #as replaced it wit# &ORACLE in t#e year '(()! Lybrand! "#e pac$age was a compre#ensive management information and financial system! %ow OGDCL

)isit Re*ort We selected Oil & Gas Development Company Limited (OGDCL) for our practical study subject of Role of M+S in &inance ,e*artment of $-,./. OGDCL is one of the biggest companies involved in Drilling & !ploration in "a#istan$

Ac0no led1ement %he &hole management of OGDCL 'ead office G()*+ ,lue -rea .slamabad &as very much cooperative$ specially &e are very than#ful to /0 /uhammad 0afi1 General /anager (2inance)1 &ho gave us a lot of #no&ledge relating to our topic$

Practical St !y of Organi"ation

With reference to our topic1 0ole of .nformation 3ystem in 2inance Department of OGDCL We visited Oil & Gas Development Company Limited (OGDCL)$ OGDCL is one of the biggest companies involved in Drilling & !ploration in "a#istan$

#ision Statement
To be a leading, regional Pakistani E & P Company, recognized for its people, partnerships and performance.

Mission Statement
There mission is to become a competitive, dynamic and growing E & P company, rapidly enhancing our reserves through world class workforce, best management practices and technology and ma imizing returns to all stakeholders by capturing high value business opportunities within the country and abroad, while being a responsible corporate citizen.

Intro! ction to t$e Com%any Esta&lis$ment of OGDCL


%o revive e!ploration in the energy sector the Government of "a#istan signed a long(term loan -greement on 45 /arch 67)6 &ith the 83301 &hereby "a#istan received +9 million 0ubles to finance e:uipment and services of 3oviet e!perts for e!ploration$ "ursuant to the -greement1 OGDC &as created under an Ordinance dated +4th 3eptember 67)6$ %he Corporation &as charged &ith responsibility to underta#e a &ell thought out and systematic e!ploratory programme and to plan and promote "a#istan;s oil and gas prospects$

Initial Successes
- number of donor agencies such as the World ,an#1 Canadian .nternational Development -gency (C.D-) and the -sian Development ,an# provided the impetus through assistance for major development projects in the form of loans and grants$ OGDC;s concerted efforts &ere very successful as they resulted in a number of major oil and gas discoveries bet&een 67)< and 67<+$ %oot oil field &as discovered in 67)<1 &hich paved the &ay for further e!ploratory &or# in the =orth$ During the period 6794(9>1 the Company reformed the strategy for updating its e:uipment base and undertoo# a very aggressive &or# program$ %his resulted in discovery of a number of oil and gas fields in the ighties1 thus giving the Company a measure of financial independence$ %hese include the %hora1 3ono1 Lashari1 ,obi1 %ando -lam & Dhoda# oil*condensate fields and "ir#oh1 8ch1 Loti1 =andpur and "anjpir gas fields &hich are commercial discoveries that testify to the professional capabilities of the Corporation$

Transition to a self financing entity


=oting the Company;s success1 due to major oil and gas discoveries in the eighties1 the Government in ?uly 67<71 off(loaded the Company from the 2ederal ,udget and allo&ed it to manage its activities &ith self(generated funds$ %he financial year 67<7(74 &as OGDC;s first year of self(financing$ .t &as a great challenge for OGDC$ %he obvious initial target during the first year of self(financing &as to generate sufficient resources to maintain the momentum of e!ploration and development at a pace envisaged in the "ublic 3ector Development "rogram ("3D") as &ell as to meet its debt servicing obligations$ OGDC not only generated enough internal funds to meet its debt obligations but also invested enough resources in e!ploration and development to increase the country;s reserves and production$

Initial Public Offering


Government of "a#istan disinvested part of its shareholding in the company in +44@$ .nitially +$>A of the e:uity &ith an additional green(shoe option upto +$>A of e:uity &as offered to the general public$ %he said Offer received an over&helming response from the general public and &as recorded as a landmar# transaction in the history of "a#istanBs capital mar#ets$

GDR
.n December +44)1 the Government of "a#istan divested a further 64A of its holding in the company$ %he Company is no& listed on the London 3toc# !change since on December 4)1 +44)$

Com%any Profile
o Oil and Gas Development Company Limited *OGDCL+ was initially created under an Ordinance in ,-.,/ as public sector Corporation t#at subse0uently in pursuance of t#e Petroleum Policy/ ,--1 was converted from a statutory Corporation into a public limited 2oint stoc$ Company on commercial lines w!e!f! ') October ,--3! o o o Companys Board of Directors was reconstituted by nominating e4perts in different fields on its Board! 5n April67ay ,---/ Government of Pa$istan approved privati8ation of OGDCL and a 9inancial Advisor was appointed for t#at purpose! 5n October '(() Government of Pa$istan furt#er decided to disinvest part of its s#are#olding in t#e Company after issuing bonus s#ares at t#ree s#ares per one s#are! 5nitially '!:; of t#e e0uity wit# an additional green<s#oe option up to '!:; of e0uity was offered to general public under 5PO! "#e said offer received an overw#elming response from t#e general public/ w#ic# #as been recorded as a landmar$ transaction in t#e #istory of Pa$istans capital mar$et! o "#e Company is now listed on all t#e t#ree =toc$ >4c#anges of Pa$istan wit# #ig#est mar$et capitali8ation!

Core #al es
7erit "eam ?or$ =afety Dedication 5nnovation

MA'OR PROD(C)S
Cr !e Oil Gas LPG (Li* efie! Petrole m Gas)

S l%$ r +$ite %etrole m %ro! cts ,erosene Oil Sol-ent Oil .SD (.ig$ S%ee! Diesel) /a%$t$a

0(1ERS
"#e products sold by OGDCL are very essential to our daily life! "#e buyers of t#ese products are as follows!
Cr !e Oil 7ainly refineries li$e Attoc$ @efinery/ Pa$ Arab @efinery/ etc! purc#ase t#e crude oil in auction from OGDCL! Gas "#e main buyers of gas are =ui %ort#ern Gas Private Limited *=%GPL+ and =ui sout#ern Gas Private Limited *==GPL+! "#eses bot# companies sold t#e gas to t#e individual customers! OGDCL is not directly engage in selling t#e gas to t#e customers *t#e ultimate users+! LPG (Li* efie! Petrole m Gas) "#e LPG is sold to t#e C%G gas stations! S l%$ r "#e p#armaceutical companies are t#e main buyer of =ulp#ur! +$ite %etrole m %ro! cts !erosene "il #olvent "il $#% &$igh #peed %iesel' (aphtha

Organi"ational Str ct re

Chairman ,oard of Directors /anaging Director Company 3ecretary Chief 3taff Officer

$D (.%) G/ (.%) /anager (.%) Chief (.%) Dy$ Chief (.%) 3r$ .% Officers .% Officers .% 3ection

$D (2inance* -ccounts) General /anagers /anagers

$D ( !ploration) General /anagers /anagers

$D (Drilling) General /anagers /anagers

$D (Corporate -ffair) General /anagers /anagers

Chief -ccount Officers 3enior -ccount Officers -ccount Officers 2inance* -ccount 3ections

Chief ngineers "rinciple ngineers 3enior ngineers ?unior ngineers !ploration 3taff * 3ections

Chief ngineers "rinciple ngineers 3enior ngineers ?unior ngineers Drilling 3taff * 3ections

Chiefs (Corporate) Dy$ Chiefs (Corporate) 3enior Corporate Officers ?unior Corporate Officers Corporate 3taff * 3ections

Introduction to the Topic


Information System5
A business application of the computer. It is made up of the database, application programs and manual and machine procedures. It also encompasses the computer systems that do the processing. or A system/ w#et#er automated or manual/ t#at comprises people/ mac#ines/ and6or met#ods organi8ed to collect/ process/ transmit/ and disseminate data t#at represent user information!

Types of Information System

MIS
A business information system designed to produce t#e information needed for successful management of a structured problem/ process/ department/ or business!

DSS
A business information system designed to assist in decision ma$ing w#ere t#e decision process is relatively unstructured and only part of t#e information needed is structured in advance!

ESS
A business information system t#at uses business rules/ regulations/ and databases to evaluate a situation or determine an appropriate course of action!

ROLE OF INFORMATION TECHNOLOGY & INFORMATION SYSTEM IN OGDCL


Decision Support System (DSS Tr!ns!ction "rocessin# System (T"S O$$ice In$orm!tion System (OIS "!yro%% section MIS !n& ESS

Decision S %%ort System (DSS)


-s companies migrate to&ard responsive e(business models1 they are investing in ne& data( driven decision support application frame&or#s that help them respond rapidly to changing mar#et conditions and customer needs$ 3o to succeed in business today1 including any e(business initiative1 companies need information systems that can support the diverse information and decisions ma#ing needs of their managers and business professionals$

Definition2
Decision support systems are computer base information systems that provide interactive information support to managers and business professionals during the decision ma#ing process$ .= OGDCL

Decision S %%ort system (se2


o -nalytical /odels o 3pecialiCed databases o - decision ma#ers o&n insights and judgments o -n interactive1 computer(based modeling process to support the ma#ing of semi structured and unstructured business decisions$

Difference &et3een Management Information an! Decision S %%ort system2


Main Points Mana1ement +nformation Systems Decision support provided "rovide information about the performance of the organiCation ,ecision Su**ort Systems "rovide information and decision support techni:ues to analyCe specific problems or .nformation form and fre:uency .nformation format "eriodic1 e!ception1 demand1 and push reports and responses "re specified1 fired format$ opportunities .nteractive in:uiries and responses -d hoc1 fle!ible1 and adaptable format$

.nformation processing methodology

.nformation produces by e!traction and manipulation of business data

.nformation produces by analytical modeling of business data$

Com%onents of Decision S %%ort System2


8nli#e management information systems1 decision support systems rely on model bases as &ell as databases as vital system resources$ - D33 model base is soft&are components that consists of models used in computational and analytical routines than mathematically e!press relationships among variables$ 3uch models may be stored in the form of spreadsheet models or templates1 or statistical and mathematical programs and program modules$

(sing Decision S %%ort Systems2


8sing a decision support system involves an interactive analytical modeling process$ e$g$ using a D33 soft&are pac#age for decision support may result in a series of displays in response to alternative &hat if changes entered by a manager$ %his differs from the demand responses of management information systems1 since decision ma#ers are not demanding prespecified information$ 0ather they e!plore possible alternatives$ %hus1 they do not have to specify their information needs in advance$ .nstead1 they use the D33 to find the information they need to help them ma#e a decision$

)ransaction Processing Systems ()PS)2


,usinesses e!ist by managing transactions1 events that involver or affect the enterprise$ %ransactions are at the heart of every companyBs business process$ "rocessing transactions efficiently and accurately is &hat #eeps a business running smoothly$ .f a company cannot accept or fulfill orders1 record its sales1 manage its inventory1 bill for its products or services1 collect money1 meet payroll needs1 or maintain income ta! records1 it &ill not stay in business very long$ - transaction processing system is a shared system that uses a combination of information technology and manual procedures to process data and information and to manage transactions$ With a %"31 each transaction is handled according to standard company procedures$

2!3 2RA%SA.2+$%

PR$.3SS+%- S34U3%.3 A%, 2PS $U2PU2 A%, R3P$R2S:

- transaction processing system can process either on line or in batches summariCes the processing se:uence and the five types of output produces during transaction processing action documents1 detail reports summary reports1 e!ception reports1 and updated master data$ Action documents are documents designed to trigger a specific action or to signify that a transaction has ta#en place$ -t price chopper1 for e!ample invoices are action documents intended to result in the payment of money$ When a utility company produces a customerBs monthly bill1 it too1 is creating an action document designed to result in the payment of money$ 3imilarly state motor vehicle department process their files regularly to determine &ho must rene& their car registrations during a particular month1 then send out an action document prepared by the system$ A ,etail Re*ort5 sometimes called a transaction log1 contains data describing each processed transaction$ .t includes enough details to identify the transaction and its most important characteristics$ 2or e!ample1 if the transaction is the payment of an invoice1 the detail report &ill list the transaction and indicate the amount of money paid1 the chec# number or cash reference1 the date of the transaction1 and the individual or company ma#ing the payment$ A Summary Re*ort sho&s the overall results of processing for a period of time or for a batch of transactions and includes a grand total for all listed transactions and the average transaction amount$ .t lists in summary form the transactions that too# place$ Different versions of the report may be produced for various recipients$ 2or e!ample1 a grocery store may produce one summary report for the boo##eeper1 another for the receiving manager1 and other for department mangers$

Office Information System


$ffice automation systems 6$ASs7 combine various technologies to reduce the manual labor re:uired in operating an efficient office environment$ Systems ,e(elo*ment: 2he Si8 Phases of Systems Analysis 9 ,esi1n 2he Pur*ose of a System System: defined as a collection of related components that interact to perform a tas# in order to accomplish a goal$ -n organiCationBs computer(based information system consists of hard&are1 soft&are1 people1 procedures1 and data1 as &ell as

communications setups$ %hese &or# together to provide people &ith information for running the -ettin1 the Project -oin1: !o +t Starts5 :ho;s +n(ol(ed

Users: %he system under discussion should al&ays be developed in consultation &ith users$ .f user involvement in analysis and design is inade:uate1 the system may fail for lac# of acceptance$ Mana1ement: /anagers &ithin the organiCation should also be consulted about the system$ 2echnical staff: /embers of the companyBs information systems department1 consisting of systems analysts and programmers1 need to be involved$

Systems analyst is an information specialist &ho performs systems analysis1 design1 and implementation$ %he analystBs job is to study the information and communications needs of an organiCation and determine &hat changes are re:uired to deliver better information to people &ho need it$ 2he Si8 Phases of Systems Analysis 9 ,esi1n Systems analysis and desi1n is a si!(phase problem(solving procedure for e!amining an information system and improving it$ Systems de(elo*ment life cycle 6S,/.7 is the step(by(step process that many organiCations follo& during systems analysis and design$ <. Preliminary in(esti1ation: Conduct a preliminary analysis1 propose alternative solutions1 describe costs and benefits1 and submit a preliminary plan &ith recommendations$ D D D D .onduct the *reliminary analysis Pro*ose alternati(e solutions ,escribe the costs and benefits Submit a *reliminary *lan

=. Systems analysis: Gather data1 analyCe the data1 and &rite a report$ D D D >. -ather data Analyze the data :rite a re*ort

Systems desi1n: /a#e a preliminary design and then a detailed design1 and &rite a report$ D D D ,o a *reliminary desi1n ,o a detailed desi1n :rite a re*ort

?. Systems de(elo*ment: the systems analyst or others in the organiCation develop or ac:uire the soft&are1 ac:uire the hard&are1 and then test the system$ D D D ,e(elo* or ac"uire the soft are Ac"uire !ard are 2est the system

5. Systems im*lementation: Convert the hard&are1 soft&are1 and files to the ne& system and train the users$ D D .on(ert to the ne 2rain the Users system

@. Systems maintenance: -djusts and improves the system by having system audits and periodic evaluations and by ma#ing changes based on ne& conditions$

PA1ROLL SEC)IO/
5 wor$ed as an 5nternee in t#e Payroll =ection from t#e ), stAuly to .t# August '((3! During t#is period 5 learned following about t#e section! Payroll of OGDCL employees is centrally controlled by Payroll =ection at Bead Office! Payroll section is responsible to manage and control t#e salary and ot#er benefits of OGDCL employees payroll data is prepared on mont#ly basis posted on different locations! "#ey wor$ wit# t#e mutual coordination of Computer =ection! "#ey maintain t#eir manual record till t#e ,( t# of t#e mont#/ and t#en send to Computer =ection for entering into t#e computer system! "#ey enter records till t#e '( t# of t#e mont#! Prepare pay slips/ and return it to Payroll =ection! "#en/ different departments send t#eir responsible people to collect t#ese slips! =alary is disbursed t#roug# ban$ and cas#! Computer lists are prepared ban$ wise! One is sent to respective ban$ along wit# c#e0ue for onward credit to employees ban$ accounts! Ot#er list is provided to concerned location for cas# disbursements! 5n order to minimi8e cas# #andling/ salary is disbursed t#roug# ban$s! ?#en amount is less t#an @s! :/(((/ t#en cas# payment is made! Csually "A6DA/ casual employees amounts are so small t#at disbursed t#roug# cas#! "#e pay scales at OGDCL are different for staff employees and officers! "#e staff scales follow t#e government set scales! =cales are from ,<,3 eac# scale is a category wit# ma4imum and minimum range! >ac# year t#e employees in eac# category get t#eir annual increments on ac#ievement of some target and

it is eit#er t#roug# t#is annual increment or promotion t#at a person moves from one scale to anot#er! "#e officer pay scale is based on t#e government scale wit# a little refinement by OGDCL itself! @at#er t#an following t#e basic )*+,, grade system/ t#e company #as rearranged t#e scales to represent >4ecutive Groups! Officer Allo3ances2 A part of employees salary and benefits are various allowances! "#e allowances t#at OGDCL is providing to its officers include t#e following! .o se Rent2 "#is is .( ; of t#e officers basic pay!

Con-eyance Allo3ance2 ?#ic# is awarding to t#e e4ecutive group to w#ic# an employee belongs! (tilities C$argesD "#ese include waterE t#e company pays t#e employees bill gas and electricity consumption! 5t is ,:; of Basic pay! )ele%$one CallsD A certain fi4 amount of telep#one calls are free for officers as per t#e limit get in t#eir scale! )ec$nical Allo3ances2 9or t#ose w#o #ave tec#nical 0ualification of some sort/ of course/ w#ic# is productive for t#e 2ob! "#is allowance is for bot# #ead office and field officers! 4 alification Pay2 "#is is paid to 0ualified officers wit# e!g! P#!D!/ 5C7A/ CA degrees/ on a mont#ly basis! Entertainment Allo3ance2 ?#ic# is ,(; of basic pay is also provided to t#e officers! Com% ter Allo3ance2 is provided to all computer programmers and e4perts of t#e company! Ser-ant Allo3ance2 is also provided to OGDCL officers/ w#ic# again is according to grade limit! 5iel! Allo3ances2 5t is for officers on various field locations of t#e company and is :(; of t#eir basic pay! Messing Allo3ances2 is again provided to all t#ose posted on t#e field!

Staff Allo3ances2 "#e staff employees li$e t#e officers are provided wit# various allowances w#ic# are actually more t#an officer allowances! "#is point #ig#lig#ts t#e e4istence of union negotiations! .o se Rent Allo3ance2 5t consists of F'; of an employees basic pay and annual increments!

5iel! Allo3ance2 is provided to all employees posted on t#e fields constituting :.; of t#eir basic pay! (niform Allo3anceD 5t is given to all employees w#o #ave a special uniform e!g! drivers/ store #elpers/ security guards etc/ and amounts to )': per mont#!

+as$ing Allo3ance2 is also provided to t#ose in special uniform/ w#ic# amounts to a roug# ,1( per mont#! Port Allo3ance2 is given to all t#ose employees: at t#e Clearing and 9orwarding department of t#e company at ?est ?ard Garac#i! 5t amounts to ''( per mont#!

Cas$ .an!ling Allo3ance2 is provided to t#ese staff members t#at deal in cas#! 5t e0uals a ''( per mont#! )orc$ Allo3ance2 is given to security guards and drivers to $eep t#eir torc#es in wor$ing order amount to rupees ,((! Material .an!ling Allo3ance2 is provided to t#ese wor$ing at various companies stores w#ere purc#ased merc#andises are $ept! Rig 5loor Allo3ance2 "#is amount to '(( rupees per mont# and is entitled to all wor$ers on t#e rig location on mont#ly basis! )ec$nical Allo3anceD 5t is provided to all t#e tec#nical staff e0ual to ,.( rupees per mont#! Efficiency Allo3ance2 5t is '(; of basic pay/ entitled to all radio/ wireless and telep#one operators!

Payroll Section %erforms t$e follo3ing f nctions.


,! Preparation of mont#ly payroll for all OGDCL regular employees of all Pa$istan! 5t includes #ead office/ regional offices and all ot#er fields! 7oreover payment of mont#ly salaries deputationists/ #ead office wor$ c#arge and casual employees! '! Payment of "A6DA/ bonus6awards/ transfer benefits to officers and staff/ wor$ c#arge and casual employees! )! Payment of leave encas#ment to regular staff! 1! 5t prepares mont#ly overtime of t#e staff! :! 5t prepares >id69estival advance of all regular employees as per notification! .! Payroll =ection ma$es t#e final settlement to Companys retired6resigned employees/ and t#en issues clearance letter for release of pension! wages to

3! 5t arranges for t#e payment of arrears on t#e settlement of CBA Agreement! After every ' years on 3t# 9ebruary t#e staff is entitled to revise t#eir emoluments sub2ect to negotiation between management CBA!

F! Payroll section is responsible to provide all desired information regarding pay and allowances to t#e 7anagement on basis or as w#en re0uired! -! @econciliation and ad2ustment of relevant accounts is made periodically in order to e4ercise effective control on payroll!

DA)A 6 I/P()2
Payroll =ection uses following forms for $eeping record of its data and for entering data into t#e system!

)1PE I2
appointment!

"#is type of form is used for employees personal information at t#e time of

)1PE III2 "#is form is used for entering any permanent c#ange in t#e employees salary! )1PE #2 "#is form is used for arrears payments/ and does not carry t#is information for t#e
coming mont#!

)1PE #II2 "#is type data is used for installment recovery!

AC)I#I)1 5LO+ C.AR)

B@<Personnel Department

Loans Advances =ection

PA1ROLL SEC)IO/

Computer =ection

Provident 9und =ection

D599>@>%" BA%G=

E7ec ti-e S %%ort Systems


%he activities of top level e!ecutives in business and government are often :uite different from those of middle managers and staff members$ 0ather than focusing on a single business process or an individual product or service line1 as most middle managers do1 e!ecutives spend most of their time meeting the challenges and opportunities that &ill affect the firmBs future$ When a serious problem arises for e!ample1 an industrial accident or the potential loss of an important customer they are also li#ely to be involved in determining the cause$ Dealing &ith the effect1 and preventing the problems recurrence$ !ecutives also spend a good deal of their time on activities e!ternal to the company$ /ar#et opportunities monitoring the activities of competitors1 and #eeping an eye on impending legislation are among the e!ecutiveBs principal e!ternal concerns$ -s you can probably guess1 and as e!ecutives spend much of their time in meetings$ .n fact1 they spend very little time in their offices and gave precious fe& moments of :uiet time in &hich to contemplate the intricate plans and strategies they must put into effect$ When they are in their offices they need to be briefed on company developments :uic#ly and in a &ay that provides them &ith useful and &ell focused information$ -n e!ecutive support system1 sometimes called an e!ecutive information system1 is an interactive information system ( .3)1 is a passes a broad spectrum of company activities presenting information on every thing from entire business units to product and service lines to customers and suppliers$

ESS at 3$irl%ool2
With sales of appro!imately E 9 billion annually1 &hirlpool corp$ of ,enton harbor1 /ichigan1 is the largest appliance manufacturer in the 8nited 3tates and ,raCil and the second largest in urope1 Canada1 and /e!ico$ %he company believes that its success e!pends on ma#ing information available to its e!ecutives and its customers :uic#ly$ Global companies li#e &hirlpool1 &here international events affect day to day business operations1 rely on .% to #eep their e!ecutives in touch &ith one another and to help them ma#e decisions$ Whirlpool has developed an e!ecutive support system that lets e!ecutives retrieve data and information1 regardless of their location1 by clic#ing an icon to access data from commercial databases1 &hirlpool databases1 or the companyBs electronic mail system$

Management Information Systems2


Mana1ement +nformation system as the ori1inal ty*e of information systems de(elo*ed to su**ort managerial decision ma#ing$ -n /.3 produces information produces that support many of the day to day decision ma#ing needs of manager and business professionals$ 0eports1 display1 and responses produced by management information systems provide information that these decision ma#ers have specified in advance as ade:uately meeting their information needs$ 3uch predefined information products satisfy the information needs of decision ma#ers at the operational and tactical levels of the organiCation &ho are faced &ith more structured types of decision situation$ 2or e!ample1 sales mangers rely heavily on sales analysis reports to evaluate differences in performance among salespeople &ho sell the same types of products to the same types of customers$ %hey have a pretty good idea of the #inds of information about sales results they need to manage sales performance effectively$

Management Re%orting Alternati-es2


/anagement information systems provide a variety of information products to managers$ 2our major reporting alternatives are provided by such systems$ Periodic Scheduled Re*orts: %his traditional form of providing information to managers uses a prespecified format designed to provide mangers &ith <information on a regular basis$ %ypical e!amples of such periodic scheduled reports are daily or &ee#ly sales analysis reports and monthly financial statements$ 38ce*tion Re*ortsF .n some cases1 reports are produced only &hen e!ceptional conditions occur$ .n other cases1 reports are produced periodically but contain information only about these e!ceptional conditions$ 2or e!ample1 a credit manger can be provided &ith a report that contains only information on customers &ho e!ceed their credit limits$ ,emand Re*orts and Res*onses: .nformation is available &henever a manager demands it$ 2or e!ample1 &eb bro&sers and D,/3 :uery languages and report generators enable managers at "C &or#stations to get immediate responses or find and obtain customiCed reports as a result of their re:uests for the information they need$

./+3%2S

,A2A BAS3S

Sales Pros%ects an! Ri-als /e3s

=ales Prospects @ivals %ews @ivals %ews and Company %ews Company %ews

Customer Data

=ales Data

=ales Prospects and Company When computers %ews

are net&or#ed1 t&o industriesGcomputing and communications converge1

5nventory Data

and the result is vastly more than the sum of the parts$ 3uddenly computing applications become available fir business(to(business coordination and commerce and for small as &ell as large organiCations$ %he global .nternet creates a public place &ithout geographic boundariesG cyberspacesG&here ordinary citiCens can interact1 publish their ideas1 and engage in the purchase of goods and services$ .n short1 the impact of both computing and communications on our society and organiCational structures is greatly magnified$

%hus1 telecommunications and net&or# technologies are internet&or#ing and revolutioniCing business and society$ ,usinesses have become net&or#ed enterprises$ %he .nternet1 the Web1 and intranets and e!tranets are net&or#ing business processes and employees together1 and connecting them to their customers1 suppliers and other business sta#eholders$ Companies and &or#groups can thus collaborate more creativelyH manage their business operations and resources more effectively and compete successfully in todayBs fast(changing global economy$

OGDCL is actively pursuing its commitment to&ards moderniCation of its information technology and communication infrastructure and facilities$ Wor#ing to&ards this commitment1 the Company successfully completed the consultancy project on preparation of an .% 3trategic "lan$ %he plan so prepared has helped identify and prioritiCe the initiatives in the areas of infrastructure enhancement1 business intelligence applications and restructuring and

reorganiCation of the .% Department$

0uestions and Answers


omputer $escription1
"#e company is using Pentium 1 computers in all t#eir sections! ?#ic# are very beneficial for t#e wor$ers due to t#eir speed and reliability!

/hich Operating System They 2se1


5n All over OGDCL ?indows HP Professional is installing! ?indows HP is a GC5 operating system w#ic# can be easily used by t#e employees! But ?indows %" =erver and Line4 is install on t#eir servers at 5" department!

/hich $ata 'ase Software They 2se1


"#e company is using Oracle ,,i data base software to record all its financial records/ because Oracle is very vast and reliable software! All most all t#eir members are fully trained to operate t#e software! "#e 7ain 7odules t#ey are using in Oracle are GL 7odule 75= 7odule Payable 7odule Budget 7odule

Is Organization gi3es training to their !mployees to use Software1


Company #ave institute OG"5 w#ere basic training of . to ,' 7ont#s is provided to t#e new employees w#o are not familiar wit# t#e software used by t#e company!

/hich )etwork They 2se1


On infrastructure side/ Company LA% #as been e4tended to different offices t#roug# #ig# speed wireless tec#nologies! "#is #as facilitated easy s#aring of information resources among t#ese offices! Geeping in view t#e re0uirement of management reporting and monitoring of GP5s/ a Business 5ntelligence =olution *a software system from an Australian firm+ was selected and deployed for a t#ree mont#s detailed evaluation! "#is system provides facility for integrating real<time data from different sources *financials/ production etc!+ and generation management reports and GP5s in a grap#ical format! 7ove towards ac0uisition of t#is system will be made after on going successful evaluation!

/hich )etwork Topology They 2se1


As we $now in all over t#e world t#e star topology is used on all levels of organi8ations! OGDCL is also using star topology wit# in t#eir particular wor$ing areas suc# as t#e Bead Office 5slamabad!

*ow They Store $ata1


"#ey #ave a disaster recovery site toget#er wit# revamping of e4isting data center! "#e state<of<t#e<art tec#nologies providing central storage wit# facilities to replicate real time data wit# offsite bac$up

systems! "#e arrangement ensures business continuity in case of any possible disaster t#at disrupts t#e central systems or ma$es t#e main offices in accessible!

*ow Organization gather information from Outside1


Computeri8ed networ$ing system is prevailing in t#e OGDCL! -(; of t#e locations6fields are online to gat#er information easily!

/hich 'ackup Techni4ue They 2se1


5ncremental bac$up tec#ni0ue is used in all over OGDCL Bead office and fields!

*ow The Information Tra3els1

5i7e! Assets

%epreciation -sset Transactions General Le!ger

Acco nts .nvoices Paya&les Payment s .nterface


S &8system Li9e Payroll

/evenue -d0ustm ents

In-entor y

-ccrued /eceipts

.nvoice s /eceipt s Acco nts Recei-a&le s

P rc$asing

Trou"leshooting
"#ey #ave a special team of people to #andle different problems facing by t#e computer operators! OGDCL #ave a complete department of maintance called PC Assembly to fi4 ma2or problem!

5I/A/CE 6 ACCO(/)S DEPAR)ME/)


S)R(C)(RE O5 ).E 5I/A/CE 6 ACCO(/)S DEPAR)ME/)

E 7e c

ti- e D ire c to r 5in an ce

G e n e ra l M a n a g e r

M an ag e r

C $ ie f A cco

n ta n t

D y C $ ie f A cco

n ta n t

S r. A c c o

n ta n t

A cco

n ta n t

A s s is ta n t A c c o

n ta n t

A cco

n ts A s s is ta n t

'r. A c c o

n ts A s s is ta n t

5I/A/CE 6 ACCO(/)S DEPAR)ME/)


9inance Accounts Department #as been playing marvelous role in t#e development of t#e OGDCL! 9inance Accounts Department is directly under t#e OGDCL #as ac0uired t#e services of #ig#ly 0ualified professionals li$e CAs/ C7As/ 7BAs and 7!com for its 9inance and Accounts Department! administrative control of >4ecutive Director 9inance! "#e >4ecutive Director *9inance+ #eads t#e

9inance

Accounts Department! General 7anager *9inance+/ General 7anager *Accounts+

General

7anager *"reasury+ assist t#e >4ecutive Director *9inance+ for effective and efficient controlling of OGDCL financial activities! "#en t#ere are 7anagers and below 7anagers t#ere is a c#ain of C#ief/ Deputy C#ief/ =enior Accountant/ Accountant/ Assistant Accountant and t#en staff members!

ORGA/OGRAM O5 5I/A/CE 6 ACCO(/)S DEP))


E:EC()I#E DIREC)OR *95%A%C>+

G>%>@AL 7A%AG>@ (ACCO(/)S)

G>%>@AL 7A%AG>@ ()REAS(R1)

G>%>@AL 7A%AG>@ (5I/A/CE)

7A%AG>@ (0(DGE) 6 5I/AL ACCO(/)S)

7A%AG>@ ()REAS(R1)

7A%AG>@ (5I/A/CE)

7A%AG>@ (ACCO(/)S)

7A%AG>@ ('# ACCO(/)S)

7A%AG>@ (S)ORE 6 5I:ED ASSE)S)

S/OT Analyses
S)RE/G).S

Computeri8ed networ$ing system is prevailing in t#e OGDCL! -(; of t#e locations6fields are online! OGDCL #as #ig# caliber training facility structure in t#e form of OG"5! Big#ly advanced and modern tec#nology and e0uipment is possessed by OGDCL! OGDCL #as #ig#ly professional manpower and offers t#em very competitive salary pac$ages!

+EA,/ESSES
Outdated procurement procedures and stores inventory management system of OGDCL undermines OGDCLs performance! Delayed decisions due to prolonged procedures!

$**ortunitiesA /ore capacity of production

2hreats: 3#illed person fired out 'ired foreigner technician

Merits
'igh :uality product 'igh capacity production 'igh professional management .ndependent /anagement team to ta#e better decision

Demerits
Iuality inconsistency in some areas of production 3#illed person fired out Web site updating negligence about 2inancial topics

S ggestions2

<.

%here should be informal communication among the superiors and sub(ordinates by arranging tea party once in four months or si! months and in this &ay the distance among them &ill be reduced$ -s a result employeeBs efficiency can be enhanced$ Decision(ma#ing and authority should be delegated to a certain e!tent for reducing delayed procedures and saving time$ OGDCL should emphasiCe on reducing production cost and optimiCing productivity by introducing ne& technology and employing s#illful human resource$ Company should focus on operational effectiveness and :uality of human resource assets$ 'ierarchy levels should be reduced in order to improve interaction1 communication and coordination at each level$

=. >. ?. 5.

Concl sions
-ll oil and gas companies1 particularly independent operators1 have a strong sense of industry$ %hey fre:uently behave in &ays that suggest they consider themselves as co providers as opposed to competitors$ %he desire to gain share by outperforming their in(#ind brethren1 generally is not driving force of management in independent operators$ .n fact1 &hat truly distinguishes many independent is that their strategy is the reflection of the management$ %he :uality of an organiCation is dependent on the :uality of its &or# force$ OGDCL has engaged top professionals in Geology1 Drilling1 ngineering1 and "etroleum &ho are &or#ing for the search OGDCL is producing oil and gas products and meeting the consumption of the countryBs re:uirement1 &hich in turn is providing great support by reducing the import bill of the country$ J3truggle is the #ey to success$ %he results are the discretion of -llah$ 'ence hard &or#ing and devoted &or#force is the most precious asset for an organiCationK$