Institute of Business Management

Information system for management

English Biscuit Manufacturers (Pvt.) Ltd.

Submitted by:

JehanzebMansoor – 7008 Sheharyar Naseem 10813

Anum Bundeli 10034

Assignment

2

Profile of the company

English Biscuit Manufacturers (Pvt.) Limited was formed as a joint venture company in 1965 with the

name of Peek Freans Pakistan Ltd. In 1966, it was renamed as English Biscuit Manufacturers (Pvt.) Ltd.

and started manufacturing and marketing the famous Peek Freans range during 1967. EBM hygienically

packed biscuits of supreme quality.

EBM’s more than 50 years of experience in the biscuit manufacturing industry enabled them to deliver

top quality products which are rich in nutrition and enabled them to provide hygienically packed

biscuits. EBM is also one of the first biscuit manufacturing companies in Pakistan that have achieved an

ISO - 9001 Certification hence, this achievement certifies that the company is truly committed in

providing higher quality products.

Incorporation of Transaction Processing System (TPS) in the

procurement process:

Being a huge firm, EBM has TPS (transaction process system) in place to keep the entire value chain

synchronized and integrated so as to make their procurement process more efficient and responsive.

The procurement process begins by means of performing an analysis of the current demand and

anticipating the raw materials required. Once the need is recognized, the system checks for the

approved suppliers, entered previously into the database with established terms with EBM. After the

selection of an approved supplier, a purchase order or a purchase agreement is generated that goes

through an approval process to allow the purchase. This is accomplished through an electronic drafting

of a purchase order which is sent directly through an email to the respective department, notifying that

a requisition requires an approval, after supplier selection is complete. If the requisition requests for

items with no existing suppliers, the system forwards a “request for quotation” to potential suppliers

inviting them to submit their bids for a purchase contract through an online transaction or real-time

processing system.

In certain cases for a repetitive purchase of raw materials, the company has an exception in their system

that if the purchase of items is of a very small amount or falls within the assigned limits then the system

may automatically create a purchase order without any prior approval from the respective department

whereas if the amount exceeds the assigned limits then the purchase has to go through an approval

process.

Assignment

3

TPS Use For EBM TPS (transaction process system) is always useful for company of this size because we need to have

entire company synchronized so that they could easily know what and how much is to be procured.

Basically the process of TPS goes in this way:

First the planning department through TPS by knowing current demand and current on hand

inventory.

Then Data goes to procurement department which is linked with entire group of suppliers and

also to supplier’s suppliers.

Then entire company associates know your demand and products we required.

This TPS helps us to get lowest rates and also increases your negotiation power.

A company like EBM is so huge that suppliers are always willing to supply on lowest rate and

also on credit terms.

How TPS Works In EBM Now we know how companies use TPS, but the point is how TPS works on its own as software.

TPS is software which is synchronized with each and every department of company.

Basically each department has its own way to process or data management system but

ultimately this entire data is synchronized on one plate form so that each and every department

could have access to data of the other department (only relevant data).

It’s very useful for forecasting and planning, especially for launching new products.

TPS also works for creating a data warehouse so that data could be used whenever needed.

Assignment

4

Benefits derived from TPS:

The objective of the EBM about implementing TPS was to perform error-free data input and processing

and avoid wasting time and efforts for inspecting all the documents and reports manually introduced by

or into company business reports as it was very time consuming for the individuals to review all the

input data manually. With the implementation of such system, routine reports were produced efficiently

and it reduced the response time as well, helping to smooth the procurement process.

Following are also many of the benefits derived by EBM by implementing TPS in their operations:

Their costs were substantially reduced

Procurement cycle was shortened

Quicker evaluation of the suppliers

Employees were able to invest their time more strategically

Monitor the inventory levels etc.

TPS also helped in superior information gathering and linking all the departments throughout the chain.

Recommendations:

English biscuit Manufacturing limited (EBM) has been working on their Old Transaction Processing

System, which is causing a hindrance among the various departments. Hence it is highly recommended

for them to adopt a New Transaction System which will help reduce their cost and will be more efficient.

In order to manage the inventory of local stores such as Imtiaz super market, VMI (Vendor Managed

Inventory) must be followed to further modernize the process of procurement.

Master Data Management system should be adopted by EBM which will help them in making significant

decisions based on their sourcing, supplier management or its operational procurement. Hence this will

help them break their monthly sales forecast into a weekly & daily sales forecast thereby reducing the

variance between the forecast and the actual demand.

Another big problem that we think EBM facings that they are not focusing on the best delivery times

hence their level of productivity has suffered. EBM should therefore put into operation the scheduling

system which will help them in managing their time thus increasing the level of productivity.