EFROZE PHARMACEUTICAL

Management Information Systems Submitted By: Mohammad Arif

240161

Submitted To: Sir Yasir Jamal Pasha

INTRODUCTION
EFROZE pharmaceutical is a manufacturing company which produces its medicines in Pakistan. Its head office is located at nursery (Shahra-e-Faisal, Karachi) and factory or production facility at Korangi (Karachi).

INTRO (CONT.)
PRODUCTS
Tablets Capsules Syrups Injections

NATURE OF THE COMPANY

Managing Director is the owner of the company who has invested in the company and is the sole owner of the company. Organizational Structure of the company is based on machine bureaucracy.

INTRO (CONT.)
DISTRIBUTION SYSTEM
EFROZE Pharmaceutical has got 50 distributors in Karachi and 200 distributors in total throughout the Pakistan. Company s products after manufacturing go the distributors which are located in different cities like Hyderabad, Karachi, Khairpur, Multan, Lahore and etc.

SUPLIERS OF THE COMPANY

Company has got suppliers both inside and out side the Pakistan like it has some suppliers in India and in other countries as well.

HRIS:
Strategic System

INTEGRATING COMPANY INFRASTURCTURE

Staffing HR Planning Labor force tracking
Training and Development Succession Planning Performance appraisal planning Compensation Administration

Contract costing Salary forecasting

Tactical System

Labor cost analysis & budgeting Turnover analysis

Training effectiveness Career matching

Training effectiveness Career matching

Recruiting Operational Workforce System planning/ Scheduling

Skill assessment Performance evaluation

Payroll control Benefits administration

PROJECT PLANNING
SHORT TERM PLANNING
In the short term planning company will implement Transaction Processing System (TPS) through it will be able to put all of its transactions into the computers

MIDDLE TERM PLANNING

In the middle term planning firm will introduce Management Information System (MIS) in all of its departments.

PROJECT PLANNING
LONG TERM PLANNING
In the long run company would like to introduce Enterprise Resource Planning (ERP) system which will help it in integrating and streamlining its business processes.

FUNDS FOR THE PROJECT

The main Source of fund will be the annual profit earned by the company and the remaining will be financed by taking loans financed by the financial institutions

PROBLEM ANALYSIS
Lack of coordination between different departments Company wants proper and timely placements to the suppliers Lead time of producing a medicine is high Time required to find data to prepare yearly financial statements Implementing computerized systems is the cultural barrier from the current employees

SOFTWARE SPECIFICATIONS
Able to generate reports about all types of inventory levels including raw materials, work-in-process and finished goods Able to calculate the total annual carrying cost of inventory Will provide the indication of re-order point to the production department, there will be no need of counting the whole inventory for giving orders to the suppliers It will provide the reports of annual sales, area wise sales, product wise sales and sales by territories For the Human resource department, software will provide information regarding their salaries, designations, bonuses and incentives

INFRASTRUCTURE OF I.T DEPARTMENT

Manager Information System

Project Manager

Software Engineer

Software Analyst Programmer Nave User

Network Administrator

System Analyst

NETWORKING INFRASTRUCURE

Implementing Star Topology at Efroze Pharmaceuticals

FLOW OF DATA AMONGST DIFFERENT DEPARTMENTS

IN STAR TOPOLOGY (CONTT.)

In Star Topology
Any non-centralized failure will have very little effect on the company s network, whereas on a ring network a break in the ring can disable the entire network Speed is faster because data Packets are sent quickly as they do not have to travel through any unnecessary nodes

Cables
Unshielded twisted pair cables will be used to connect he network of the company. These cables will be used to connect the computers with the switcher Category 5 of unshielded twisted pair will be used which can carry data to 100Mbps (Fast Ethernet).

IN STAR TOPOLOGY (CONTT.)

Software
Windows 2000 server will be used to integrate all the components of the computers.

Network Structure
Client/Server technology will be used to create a network structure and allow multiple users to simultaneously share the same resources irrespective of physical location.

IN STAR TOPOLOGY (CONTT.)

COST BENEFIT ANALYSIS

Cost of implementing TPS: 5 Computers Software Cost Maintenance
Total Cost

125,000 30,000 20,000 175,000

BENEFITS OF TPS
TANGIBLE BENEFITS
TPS will replace the clerks and filing cabinets and will help in saving the salaries of those clerks TPS will help in avoiding the huge paper costs TPS can substantially reduce clerical costs

BENEFITS OF TPS (CONT.)

INTANGIBLE BENEFITS
TPS will also help in speeding up the performance of the company If the supplier claims that company has not given payments to him, company can check and verify whether it has given payments or not Company will be able to produce its reports more easily Duplication of data can be avoided Records can be checked at any time

COST-BENEFITOF MIS
Reduction in Employees Cost per month

BENEFIT OF MIS (CONT.)

TANGIBLE BENEFITS

After implementation of MIS company will be able to reduce three employees who were involved in converting daily transactions into reports and present them in front of the higher management.

EXPERTS OPINION
NET PRESENT VALUE (NPV)
NPV gives consideration to time value of money. It is calculated by subtracting project s initial investment from the present value of its cash flows discounted at a rate equal to the firm s cost of capital If NPV is greater than 0, firm will be able to earn higher than its cost of capital In our project NPV is 1,292,700, greater than zero so firm will be able to earn a return greater than its cost of capital which is 8%

EXPERTS OPINION (CONT.)

PAYBACK PERIOD
Pay back is used for its simplicity by firms. Pay Back period defines how much time is required for a firm to recover its initial investment Our project will take a period of 1.2 years to recover its initial investment

EXPERTS OPINION (CONT.)

INTERNAL RATE OF RETURN
IRR is the discount rate that equates the NPV of an investment opportunity with zero With the help of IRR we can determine whether company will be able to earn greater than the cost of capital or lower than the cost of capital Our project indicates an IRR of 54.8% which indicates that firm will be able to earn with this rate if provided with the given cash flows

EXPERTS OPINION (CONT.)

COST BENEFIT RATIO
Cost-Benefit ratio of the project is 1.85 which indicates that the firm s benefits are 1.85 times greater than the cost of the project

ACCOUNTING RATE OF RETURN

ARR for the given project is 37.59% which shows that firm will be able to earn a total of .3759 rupee on each rupee of project investment

Scope of the Project

The scope of our project is to develop & manage IT department in an organization. By Managing this project we want to achieve following objectives: Providing a guideline about How to develop infrastructure of IT department with in an Organization . Create Awareness about Importance of Information System among business People.