LUMS Case Study Packages LTD

Group MembersAmeer Taimur Ali

Anum IftikharMuniba ShoaibNatasha Farooq

Sadaf IkramShumail Arzu

Syeda Madeeha Atta

Company Background

Founded in 1956 by Syed Baber Ali Two Main Divisions

Paper & Broad Mill Packaging Division

Price Leader in packaging on the basis of high quality and service

Market success Monopoly

Corporate Planning

Planning was carried out by top

management

Functions

Planning Department

Commercial Department

Finance Department

Systems Limited

• Incorporated in November 1977

• Director of systems limited

• Diversification into computer related

management

• Software development operations

The Production Department Order Processing– ISO– Job Card

Machine Scheduling– Purpose of loading chart– Main problem in creating loading chart– Proposed solution

Material Planning– Two places for inventory– Problem with Paper store– Proposed solution

Production

Six printing lines New ordersOld customers order

Rafi takes round and resolve mattersPlanning people coordinated through other sections Completed orders were the responsibility of the dispatch section

Dispatches•Last stage where finished orders were shipped•Stock list• Call contractors to send the truck• After verified from the ISO, six copies of dispatch note using five layers of carbon• Copies sent to the following department•Planning department•Computer section•Accounts department• Systems limited

Customer Service Planning department is responsible for

customer service

Copy of all the current ISOs was kept in the

planning department

Dispatches made against the order; copy of the

dispatch note will be attached to ISO report

Online database is available with the computer

section

Evolution of Computers at Packages

The state of computerization at packages was a result of

sixteen years of sustained efforts.

Initially outside help was used for the development of

computer applications.

Later on packages acquired in-house expertise in computers .

In the late 1980’s Personal Computers, also found their way

into the manager’s Office.

This helped the individual departments in building their own

applications.

Applications Developed Outside Packages Ltd.

Initiated development of computer based applications in the early 1960’s

The first system to be computerized was Payroll.

In 1971, the Payroll application was run on Wapda’s IBM 360 machines.

At the same time they started working on a computer-based Inventory control system.

Later, Packages developed a Trim Scheduling Program to help minimize the wastage in the paper and board cutting processes.

Continued… In 1978, Wapda sold it’s IBM 360 machines to Systems Limited.

As need arose, new applications were developed by Systems Ltd fro Packages.

In 1982 Systems Ltd. was running the following computer applications for

Packages:

Payroll and Personnel

Inventory Accounting

Accounts Payable

Accounts Receivable

Invoicing

Costing

Production Incentive System

Trim Scheduling

In the later half of 1982, a study was undertaken by Systems Ltd.

Consequently, a meeting was held between Systems Ltd and Packages with a

purpose of formulating a 3-5 yeas computer strategy at Packages.

In 1983 Packages bought data entry machines and started doing entry in-

house.

Applications Developed In-house• Suleman Elahi as Technical Manager joined Packages in

1979.

• He proposed the idea of development of in-house applications.

• Packages first in-house machines were two Tandy model 2 computers which Packages bought from Suleman.

• He got involved in the computerization process at Packaged.

• Suleman helped build several major applications to run onTandy machines.

• The Sales order Processing (SOPS) and Employee Systems are

examples of some of the applications developed at Packages.

Sales Order Processing System

• A database was developed on unify, a relational database

operating under Unix.

• With this new system, the hand written ISO would be typed

• And this information would be stored in a separate job order

file and is given a unique ISO number

• Each order would be identified by its ISO number

• The product code number of the ISO would then be matched

with the code number in database and production report is

printed

Employee system

This database provided senior managers easy

access to information regarding their workers

Provides information about the employees

With the employee system, the manager could

get information such as

– Number of gate passes a worker had taken

– Number of children of a worker

Background Suleman Elahi wanted to acquire in-house computer

processing for packages but his proposal was rejected

He ended up settling for upgrading the obsolete Tandy System with Unix operating system

This new system had six terminals which led Packages to do its own data entry and because of this Packages then didn’t have to pay to Systems Limited for the data entry cost

Later in 1987 he again proposed the idea of integrated computer system rendering the system they were using as an obsolete one

Major Problems

There were three reoccurring: – Data redundancy– Data Duplication– No standards were being followed; a

lot of adhoc programs with no proper planning or documentation

Consultation with Aezaz Hussain of Systems Ltd

Costs and Benefit Analysis

IBM & DEC

Two proposals were made by IBM sales manager:1. First one based on IBM latest minicomputer series ,

9370 and VSE/SP operating system– Total cost: 29.2 lac with an annual recurring cost of 225000

2. Second Alternative: Based on IBM PC/RT hardware (Reduced instruction set computers) and a UNIX V operating system

Cost: 17.16million Plus Points:– Apart from giving the alternatives, the sales manager also

provided the company an implementation plan – Any other software might have led the company to convert

its software; both troublesome and risky

“DEC”

Jaffer Brothers; Their sales Manager was Azer Zia, he

proposed MicroVax system which WAPDA was already using

Cost: 24 Lac

Plus Points:

– Easy conversion of programs from IBM to DEC

– Unlimited time period provided for conversion

– The manager knew all about the existing applications so the system

he proposed was tailored according to the company’s requirement

ROLE OF I.S. IN THE FUTURE

Respond quickly to changing demands

Efficient and cost effective

To achieve this objective, role of I.S was

decided to reduce to one of the monitoring

systems

Achieved by dumping Unifying data onto Oracle

Reduce accumulated backlog of systems

Current Situation

At this time Packages system is using the following systems efficiently:

Accounting System

Inventory Control System

Production Incentive System

Production Planning System

Job Casting System

Current SituationDue to the rapid development in computer technology the older ones

became outdated so currently Packages Ltd is using the following:

• Multiuser DECSTATION 500/125• Configuration:Model No. Descriptions

PM-339 JY DS 5000/125 SBM 16MB ULTDECSTATION 5000 Model 12516Mb of 4m bit Ram, 25 MHz CPUCPU R3000FPU R30310(Maths)MIPS 26.8Clock Speed 25HzCache Memory 128 KBMemory Capacity 8-128 MB

Including software Licences:ULTRIX, FNS, DECWINDOWS, DECENT C, MOUSE, UNIFY

Compaq AQ Model 250 PCs attached with networking

Current Situation

Now Packages Ltd is again planning

on updating its systems with SAP in

order to prevent its valuable

information/data from various

problems

Future Plans

1. Easily approachable and user

friendly

2. Training in Relational Database

Management Systems (RDBMS)

under UNIX

3. Enhancement in hardware

capability

The End