Management Information Systems

Assignment
1

Case Study Analysis

Coors Ceramics Revamps Information Systems

AUTHOR

Recep ZIHNI

Sarajevo

Monday, 08 November 2010

1. How has implementation of an integrated set of information systems enabled Coors to
meet customer needs more effectively?

 The project proved to be highly successful.

 Since the systems were installed, Coors's product cycle has been cut from an average of 12
weeks to 8 weeks and on-time shipments have improved to over 95%.
 The project team focused first on how to meet the needs of the customers.
 Coors's old information systems took as long as two days to process new orders.
 With 1,500 orders coming in monthly, that was a huge problem.
 There was no way a salesperson could track the exact status of a particular customer's order.
 To compensate for the processing delays, Coors produced more orders than it received, so it
built up inventory to meet customers' desired delivery dates.
 When customers called to complain, the salesperson would get no valid data from the system
other than an incorrect “shipped on time” report.
 Also, Coors Company was producing more orders than it receives, in order to satisfy the
customer needs.
 The new information systems have also improved business decision making for customers.

2. Did this system meet all three key business goals for new systems at Coors?

 To increase customer satisfaction

 To reduce lead times
 To reduce operating costs

1. To increase customer satisfaction

 The system met this goal.

 The project team focused first on how to meet the needs of the customers.
 The order was delivered on time—not just that it shipped within a seven-day period.
 The company is able to send the orders and deliver all in time.
 They solved their major problem of customer dissatisfaction – shipping and delivering.
 As the system improved, the quality of the products got better and resulted a good reputation.

2. To reduce lead times

 The lead times are reduced.

 Because the product cycle's improved by 30 %.
 Shipments have improved to over 95% by changing weekly basis system to daily basis.
 The new system enabled to help delivering of the products in the shortest possible time.
 Coors salespeople can now be confident that “shipped on time”.
 By increasing inventory, lead time seemed decreased but inventory costs were increased.
3. To reduce operating costs

 The operating costs are now lower.

 The project team implemented an integrated set of information systems.
 These new systems automated the work processes associated with acquiring raw materials,
transforming raw materials into top quality products, and delivering them to customers within
the shortest possible time decreased the costs.
 The product cycle has been cut from an average of 12 weeks to 8 weeks that meant low
operating costs.
 Coors used to produce more than the orders which raised inventory levels, production costs,
and overhead costs, but now is low level.

3. Identify key decisions that must be made at the business review meeting each morning.
Identify some questions that are likely to be asked by the general manager at the morning
business review meeting.

1. Identify key decisions that must be made at the business review meeting each morning.

 The goals and streamlining fundamental business work processes

 How the business should operate
 Business decision making
 Review of the previous day’s sales and requests for new products.
 Discussion of how things are going and check on the current status
 Work processes associated with acquiring raw materials, transforming raw materials, products
and delivering them to customers
 Shipment, customer satisfaction, work-in progress, inventory, and delivery schedules
 How to reduce the operating costs
 Their successes and achievements to motivate employees
 How to reduce lead times
 Manufacturing, engineering, sales, production, marketing, sales, supply, human resources
 New techniques, tools, machinery, equipment, systems

2. Identify some questions that are likely to be asked by the general manager at the morning business
review meeting.

 How are our current situation, customer satisfaction, lead times, operating costs, and profit?
 Are our goals being fulfilled successfully and completely?
 Are there any opportunities and threats for the company?
 What are the new ideas and frontiers for production, market, sales, machinery, investment,
improvements, and organization?
 What do the other companies do for their businesses, how do they manage on similar issues?
 Are our customers satisfied with the level of services they receive?
 How do our salespeople feel when they serve the customers?
 How can our information system be improved?
4. What additional features or benefits might you want this basic system to deliver?

 might give accurate and detailed information to decision makers.

 might provide reports for current and future performance analysis of the company.
 might generate reports such as financial statements, inventory status reports, or performance
reports needed.
 might answer what-if-questions asked by management.
 might indicate how things are going and why not as planned.
 might provide information about sales, inventories, and other data that would help in managing
new enterprise.
 might investigate desirability of new technologies, improve operating procedures, re-evaluate
information requirements, and verify proposed modifications to existing basic designs.

References:
Course Technology Classic Cases, An Introduction to Information Systems