CHAPTER I: Introduction
1.1
Background
of the Study
It has been
part of our history that goods produced are not usually consumed by those that
produced them or where they are produced. They need to be moved and moved to
the location they are needed. These goods passed through a long chain and are
usually handled by many people, with each contributing to adding value to the
product, from point of extraction to the transformation, and eventually
consumption. This extraction – transformation – consumption stage is what is
referred to as supply function.
History has
also told us that at a point those activities were undertaken crudely and
primitively. No easy access to information. In the organization, sometimes
information are passed wrongly between buyer and the supplier on what is to be
supplied, where it should be supplied and the time to supply it. But as time
goes on man develop methods, technique and technology that allow man make this
activity easier and more efficient, which is information technology.
Information
technology is considered as a pre-requisite for effective control of today’s complex
function, indeed a recent study conducted by Forrester Research indicate that US
manufacturers are increasingly dependent on benefits brought by information
technology to improve supply function agility, reduce cycle time, achieve
higher efficiency and deliver products to customer in a timely manner. The
implementation of information technology in supply function has also enable
firm organization to develop and accumulate knowledge about stores, about its
customers, supplier and market demands, which in turn influence performance.
1.2
Statement
of the Problem
Before the
introduction of information technology to supply function, the keeping of
records (information) manually often resulted in keeping copies of the same
document in different places. information is not easily accessible relating to supply
function and sometimes information don’t get to the buyer and supplier on time
on what is to be supplied and this will tied down activities and it will also
affect the organization.
Keeping of
stock record is manually done which is time consuming, not cost effective, even
the calculation of stock level is very, very difficult and at times it causes
delay in the delivery of materials. Not only that before the advent of the use
of information technology in supply function stock checking and stock taking
becomes very difficult which at times lead to discovery of huge number of
items. Either going bad or becoming obsolete. Even the location of material and
identification becomes very difficult because identifying and location of
materials could be time consuming and this could lead to bottleneck.
It is with
this in mind that researchers will attempt to see how the application of
information technology can impact on supply function of Peugeot Automobile of
Nigeria (PAN).
1.3
Objectives
of the Study
i.
To identify the impact of information technology on
supply function
ii.
To identify the condition under which enterprise
resource planning (ERP) can be a critical enabler or severe handicap for superior
chain performance.
iii.
To identify the basic concept involving in the
analysis, design and operation of information system in relation to supply
function
iv.
To identify the innovative approaches that had been
recently developed in relation to supply function.
v.
To determine whether the process is reliable enough in
ensuring efficiency and effectiveness in increasing organizational performance.
1.4
Significance
of the Study
The
significance of this study is to know the impact of information technology in
an organization by creating and developing sound management information system
to meet organizational goals and objectives.
The
effective use of information technology offers manager several significant
advantages because it is the ability to process large volume of data rapidly.
Computer can do much routine clerical works; thus, freeing departmental personnel
from many mistakes and repetitive tasks.
Information
technology offers supply functions executives immediate availability of more
complete data and information for use when making purchasing and related
materials decisions, because of its fantastic speed. It can also supply management
with virtually instant report which might otherwise take an army of clerks
month to prepare or update, this will enable the supplier to manage by
exemption and do more effective and economical good job and managing the flow
of materials throughout operation.
Another
significance is to look into information technology method of supply function
of Peugeot Automobile Nigeria Kaduna with the view of making students for
automated system for obvious reasons.
The
researcher provides valuable suggestion and advice on problem facing the store
departments. This will help the organization to adopt a recommended stock
control technique to improve service and profit level of the organization.
Further
more the project is requirement in partial fulfillment for the award of a Higher
National Diploma in Purchasing and Supply of Kaduna Polytechnic. The project work
will help other students that will research on the topic.
1.5
Scope of
the Study
The scope
of this study covers the idea behind information. Peugeot Automobile Nigeria was
chosen as a case study.
This study
is conducted in Peugeot Automobile company Nigeria , located at Kakuri, Kaduna
South local government.
The main focus
of the study is the impact that information technology has on supply function
of Peugeot Automobile of Nigeria.
The information obtained will be used for purchasing department, stores and
production department because the use of information technology will have a lot
of impact on supply function of Peugeot Automobile Nigeria (PAN)
1.6
Research
Question
i.
What impact does information technology has on supply
in your organization?
ii.
Under what conditions can enterprise resource planning
(ERP) enhance performance of supply function in the organization?
iii.
What are the
basic concepts that are involved in the analyzing information system in
relation to supply function in the organization?
iv.
What are the innovation approaches that are currently
adopted to develop in relation to supply function in the organization?
v.
Is the process reliable enough to ensure efficiency
and effectiveness in increasing organizational performance?
1.7 Definition
of Terms
Information: information is any thing that
adds to our knowledge either consciously or unconsciously positively or
negatively.
Information
technology: Any computer-based tool that people use to work with
information and support the information and information – processing needs of
an organization
System: A system is a whole with parts
working together to achieve a goal.
Management: this is the planning and control
of the use of a of resource to achieve more objectives
Management
information system (MIS); is the function that plans for,
develops, implement and maintains IT hardware, software and applications that
people use to support the goals of an organization.
Procurement; is a managerial process, aimed at ensuring continuous flow of
materials, projects and services into and within the organisation in order to
meet with its goals and objectives, profitably and efficiently in an
ever-changing business environment.
e-Procurement: A simple and fast means of business
transaction that requires telephone lines and other communication equipments.
Supply: Flow of materials within the firm,
i.e. the stores function covering such issues as consumption of raw materials,
office items and other MRO items