ing Information System - Flowchart 4g5f5c

Mid Test Assignment

Name: Angenie Sanusi (00000011270) Fanny Sutrisno (00000011288) Monica (00000011105) Class: A3 Subject: ing Information System (AIS) Submission Date: Friday, 20th November 2015 Lecture: Mr. Andrew Universitas Pelita Harapan (UPH) Medan

2015

Abstract Firstly, thanks to God because of His love and grace, this project can finish smoothly. The purpose of this project is to learn how one company information system in order to know the exactly work of employee. From this project, it can be seen that one company structure isn’t as simple as people think about. The system must be reliable, relevant and understandable.

Second,

from

this

project,

writer

can

know

verity

type

of

documentation of ing Information system. It helps writer to determine which documentation is suitable for company and how this documentation is help ant or other people of to understand how the company system work. Not only that, writer can also know what to improve the documentation to make sure that the system is understandable and remove unnecessary things in the system.

Last but not least, writer can know better of how to make the proper documentation to help ant and manager to make decision or sole the problem especially when the company facing ineffectiveness in the company.

Writer Angenie Sanusi Fanny Sutrisno Monica

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2

Table of Content Abstract........................................................................................................... i Table of Content............................................................................................... ii I. Introduction.................................................................................................. 1 II. Body............................................................................................................ 2 III. Evaluation and Recommendation............................................................... 18 IV. Conclusion.................................................................................................. 19 References Appendices

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I. Introduction XYZ Limited Company is a manufacturing company. XYZ Limited Company opens their first company in Jakarta, Indonesia. In Jakarta, XYZ Limited Company buys products from suppliers and manufactures them to finished products, then sells them to stores or customers like Matahari, SOGO or Parkson Department Store. XYZ Limited Company focuses on selling woman clothes. The category of clothes that XYZ Limited Company sells is around age of 15 – 20 year old.

The business activities in manufacturing company is purchasing, producing, storing, and selling the inventory. In XYZ Limited Company, this cycle is recurring. This cycle calls expenditures cycle, revenue cycle, production cycle and to sell it, we must have workers which include in human resources cycle. XYZ Limited Company purchases material to produce the products from suppliers, then produces it to finished goods after receives it, after that selling it directly to customers or retailers and wholesalers.

There are 3 documentation techniques to form a business’ document. There are Data Flow Diagram (DFD), REA model and flowcharts. XYZ Limited Company uses flowcharts as their documentation technique.

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II. Body Background of The Company XYZ limited company is the manufacturing company that just establishes which in clothes field. It is located in the Jakarta, Indonesia. The reason why XYZ Limited Company open in Jakarta is because Jakarta is the biggest city in Indonesia which have a large market and opportunity to serve big department store like SOGO Department Store, Matahari Department Store, Parkson and many others. Not only that, by opening in Jakarta, it is easiest to find a big retailer who serve customers out from Jakarta, therefore XYZ Limited Company sells the clothes all around Indonesia. XYZ Limited Company makes the clothes with a high quality and sales all over Indonesia. Type of the clothes that the company sells is women clothes which are around 15 to 20s years old. For instance, dress, t-shirt, pants, skirts and many others which is following the fashion trends.

There are vision and mission of the XYZ Limited Company. The mission of XYZ limited Company is to serve all markets in Indonesia and to fulfill the variance demand on clothes in Indonesia. The vision of XYZ Limited Company itself is to increase the National output and Real GDP of Indonesia. Not only that, by establishing XYZ Limited Company, it is hoped to Indonesia’s citizen especially in isolated area to fulfill the citizen needs of clothes.

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Documentation Technique There are many ways to document the business activities cycle. This documentation is for the employee or the investor to understand how the business activity cycle in one company looks like. It also helps for manager to know which part to analyze when there’s something wrong with the report. 1. Data Flow Diagram (DFD) Data flow diagram is a graph that represents the input and output of the information which is processed by the information system. Based on Sybase (2012), DFD is useful for documentation is because it helps to visualize how the system operates, how the system accomplished the work and how the system implemented. DFD consists of four basic elements which are data source and destination, data flows, transformation processes and data stores. Data source is the input while data destination is the output. Data flow is from one information flow to the other information. Transformation process is a system that will process the information from the input to the new information then transfer to become an output or other information for another system to process. Data store is where the information is being stored or save and usually in journal.

Source: Google

To use DFD there are several roles that must be obey to make the proper DFD, which are: Page 3 of 19

- First, it should start from left to right and top to down - Second, there must be input and output - Third, data flow may not be split - Fourth, loops are not allowed 2. Flow Chart Flow Chart is using standard symbols to describe the flow in a clear, concise and logical manner. Every symbol in the flow chart represents operation, input, processing activity or storage. The advantages using flow chart is that it is easiest to analyze and easy to understand. According to Eternal Sunshine of the Is Mind (2013) stated that while during analyzing, flow chart can be a guidance or blueprint. There are four type of low chart symbol, which are: a. Input or Output Symbol Document Symbol = Represent a Document or report in the Computer

Multiple Copies of One Document = indicating the multiple document with number in the up right hand corner

Input/output; Journal/Ledger = can represent both input/output or journal/ledger

Display = display information by online device

Online Keying = input data entry by online device Terminal or personal Computer = combine display and online keying which represent the computer or terminal

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Terminal Tape = manual control which the purpose is to compare with the computer data for control purpose

b. Processing Symbol Computer Processing = represent processing of information by online device

Manual Operation = processing operation by manually

Auxiliary Operation = represent a processing operation by other device expect computer

Offline Keying operation = represent operation by offline keying device

c. Storage Symbol Magnetic Disc = indicated data store permanently on magnetic disc and usually represent master files and database

Magnetic tape = represent data store on magnetic tape and sometimes represent transaction files

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Diskette = represent data stored on floppy disk or zip disk

Online Storage = represent data store in the temporary online

Manual Filing = represent filing of document by manually stored and retrieved. Inside the symbol have A = Alphabetic order. D = Data order. N = Numeric order. d. Flow and miscellaneous Symbol Document or processing flow = represent the direction of processing or document flow. Data/Information Flow = represent direction of data usually show that the data is being copied from one document to another. Communication Link = represent the transmission of data from one location to another location usually via online communication line One-page Connector = connect from one location to another location on the same page and avoid crossing lines Off-page connector = connecting two processing flow between two age or signal out from one page to another pages

Terminal = represent the beginning, end or a point of interrupting in a process or program and also indicate the external party.

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Decision = represent a decision-making step or to show branching to alternative paths

Annotation = provides addition of descriptive comments or explanatory notes as clarification. 3. REA (Resource, Event and Agent) Data Model REA data model is a conceptual modeling tool specifically designed to provide structure for deg AIS data bases. REA Data model identifying what entities should be included in the AIS data base and prescribing how to structure relationships among the entities in the AIS database. The REA data model classifies entities into three distinct categories: 1. Resources acquired and used by an organization 2. Events engaged in by the organization 3. Agents participating in these events Symbol in the REA data model are

Entity

Relationship

Attribute By using REA Data model, it helps to managers to identify the nonvalue added activities that can be eliminated, reduces the multiple

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data, collection, data storage and maintenance procedures and store a detail information. Nature Relationship in REA Data model:

Relationship type is based on maximum cardinality: -

One to One

-

One to Many

-

Many to Many

For XYZ Limited Company, the company choose to use the flowchart which is because flowchart is easiest to understand by the ant

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and manager. It is easy to see the problem sources in order to solve the problem.

Business Activity Cycle Business Activity Cycle is the sequence way to perform in order to reach the best result in business. There are five cycles in business activities cycle that usually one company has. Those are production cycle, revenue cycle, expenditure cycle, human resources or payroll cycle and financing or general ledger cycle. XYZ Limited Company which is a manufacturing company has four cycles of the business activities cycle. The way manufacturing company get the products is buying from suppliers in the form of material and produce it to finished products which are ready to be sold. 1. Revenue Cycle Revenue cycle is charts that represent the business cycle by showing how the consumer gets the goods and cash collecting. It is exchange information with customers. There are four basic cycles in the revenue cycle, which are: Sales order Entry For sales order chart, it can be seen that customer take PO and Sales Department of XYZ Limited Company will make six copies of sales order and customer PO which some of them will separate to the other departments. In credit department, they see the customer information to find out that the customer is our customer and then approved the sales orders. Next step, it will to warehouse to see whether there is a stock or not. If yes then it will go to shipping

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department and make memo to make inventory control. If no then reject the sales order. Inventory control is to control the outflow and inflow of the inventory to prevent thief or loss inventory. Shipping In shipping department, sales order will be note down to record the sales order and then compare with the sales order from the warehouse. It is need to compare in order to know that sales order from sales department and warehouse to know if it is same and know how much the stock in the warehouse. Billing and Receivable In billing department, sales journal will be prepared and other document will be ordered by numeric. Not only that, invoice will be prepared to customer and also to receivable. In receivable, there will be an update of customer receivable which is based on the invoice. Cash Collection In cashier, it will receive the check which is also along with the remittance date. So XYZ Limited Company will know when to clear the check. In cash receipt, check will be recorded in cash journal and transferred to the bank. In receivable, it will then update the remittance so it can be see when the money will be paid off to balance the receivable. 2. Production Cycle Production cycle is charts that represent the business cycle by showing the operation associated with the manufacturing of

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products. There are four basic activities in the production cycle, which are: Product Design To make a design, customer make a clothes requirement which will be sent to Design Department and then begin to make the design. After that, design will be and if it’s satisfying, the clothes design will be sent to customer, for them to make order. If it’s not satisfying, then identify the flaws, and remake the design and update again the Operation List and Bill of Material. Then, from design making, it produced 2 copies of Operation List and Bill of Material which sent to Planning & Schedule Department and Cost ing Department. Planning and Scheduling The company are planning to have production based on Customer Order only. In Planning & Scheduling Department, Sales Department will sent customer order and plan for production based on customer order (Lean Manufacturing). Then, the department assess the available inventory and labor needed based on the Operation List and Bill of Material from the Design department which is where human resource will send available employee document and inventory control will send the inventory records to planning & scheduling dep. Then, if inventory doesn’t enough, then purchase requisition will be prepared to purchasing department and file it also to inventory control. After there is enough material and labor, then preparing the production document such as 2 copies of Production Order, Move tickets,

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Master

Production

Schedule,

and

Material

Requisition

to

Production Department. A copy of Production order will be sent to Cost ing Department.

Production Operation After receiving the 4 documents from the Planning & Scheduling Department, the Production Department initiate the production based on the time, material, labor needed to do the production and distribute some documents again. Here, the finished clothes are produced and would be sent to inventory control. Document of Material Requisition is distributed again to inventory control and some excess material will be sent to inventory control too. Inventory control then will update the inventory records, which records then will sent back to planning& scheduling department to plan for production. Then, inventory control will distribute the excess material and material requisition to cost ing department. Also, document of Move tickets and manufacturing overhead happened in production along with a copy of Job time ticket for the time performed by employee to produce clothes are to be sent to Cost ing Department. Production department will also sent Payroll time card and a copy of Job time ticket of employee, who’s working in production department, to the Human Resource Department for them to pay for their salaries and wages.

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Cost ing With the document received in Cost ing Department, such

as

production

manufacturing

order,

overhead,

job excess

time

ticket,

material,

move and

ticket,

material

requisition, then Cost ing department do calculation on direct material, direct labor, and manufacturing overhead of production. Then, as a result, because there is no work in process clothes then immediately come out with the Cost of Goods Manufactured. In the company, the finished clothes are produced only for customer order, so there’s no inventory of finished clothes, so Cost ing can immediately calculate for Cost of Goods Sold and then sent it to the Manager for determining the price. Design Department will send the Operation List and Bill of Material to Cost ing Department to calculate for the Cost of Making the Design. Then, the Cost of Making the Design is sent to the Manager also in determining the price. Both Cost of Goods Sold and Cost of Making the Design will be combined and manager decide to mark-up 15% of the cost to determine the sales price to be charged for the customer. 3. Expenditure Cycle Expenditure cycle is charts that represent the business cycle by showing how the purchasing of and payment for goods and services. There are four basic activities in expenditure cycle, which are: Ordering materials, suppliers, and services In inventory control, it can check whether there is needed of purchasing of material. If there is needed to purchase the material,

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then

from

inventory

control,

there

will

make

the

purchase

requisition. From the purchasing department, they will make the purchase order to the vendor and other copies to the receiving department, inventory control and payable. So each department can compare the purchase order with purchase receive. Receiving materials, suppliers and services For receiving department, which already receive the copy of purchase order, will inspect the receiving good to see whether it is in the same amount that the vendor sent and purchase order from purchasing department. After that, receiving department will make some copies of receiving report to the payable, inventory control, purchasing department and warehouse. Approving Supplier Invoice In payable, it will receive the copies of receiving report from the receiving department, copies of purchase requisition from purchasing department, and copies of purchase order from the purchasing department. All this files will be compared and make the payable sub-ledger and purchase journal. After that all the copies and invoice will be sent to ing department to make the cash disbursement. Cash Disbursements In cash disbursements, it will once again to compare with the copies and invoice that the payable sent to, and make the check to pay the vendor. All copies and then sent back to ing department to save and check will sent to vendor at the time that have been settled.

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4. Human resources/payroll cycle Human resources/payroll cycle is charts that represent the business cycle by showing how the employee performing in the company. There are seven basic activities in payroll cycle, which are:

Update Payroll Master File From human resource, it’s provided the employee changes and new employment data document and update the employee changes. It includes the new hires, terminations, and changes in pay rates. After that, the human resource prepare the approved employee changes and key in to computer the changes. The human resource will key in the employee changes and update the payroll master file as how much to pay of these employee. Update tax rates and deductions The company will receive the tax rates and deductions from the government, insurances, and other agencies to prepare for the payroll for the employee. Then the company will update the tax rates and deductions to the computer for them to prepare the paychecks of employee after the tax rates and deductions. Validate time and attendance data Information on time and attendance comes in the form of job time ticket and time cards from departments in company. Then after receiving both of this documents, we do the reconciliation and key-in to the computer the validated and the total of all the time data as the payroll transactions file in computer. Then in computer we sort it into the sorted payroll transaction file for the

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purpose of preparing the payroll checks along with the current payroll master file and the tax rates and deductions from government, insurances, and other agencies. Prepare payroll In preparing the payroll, the following document are produced which are the employee paychecks, various reports and payroll . As payroll transactions are prepared and processed, labor costs are accumulated to general ledger and then updated also in payroll master file. The various report are periodically sent to departments. Disburse Payroll The payroll will be sent later to Payable . Then

approving

the

payroll



and

preparation

of

disbursement voucher are to be made which is later to be forward to the cashier. A copy of payroll are to be included in general ledger here. Also, the employee paychecks will be process further to cashier for distribution to employee. The employee paychecks, disbursement voucher, and payroll are to be reviewed and sign in cashier. Then, it produces the payroll which are to be sent to payroll department to be

file

based

on

date.

The

cashier

also

produces

the

disbursement voucher for ing department, the signed employee checks for employee after deducting and withholding taxes, and the payroll transfer checks to the bank. Calculate employer-paid benefits and taxes

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In cashier department, the employer pays some payroll taxes and employee benefits directly by the existence of the withholding taxes and miscellaneous reductions from employee paychecks, retirement reductions, contributions to the countries, etc. Disburse Payroll Taxes and Miscellaneous Deductions Last, the company via cashier will record the withholding taxes and miscellaneous deductions to the general ledger and will also give them to the government, insurances, and various agencies. III. Evaluation and Recommendation XYZ Limited Company uses flow chart as their document technique to form their data. Flow chart uses standard symbols that can be easily to analyze and understand. The symbols in the flow chart represents input/output, processing, storage and flows.

Flow charts are easy-to-understand diagrams that show how the steps in a process fit together. Their simplicity makes them useful tools for communicating how processes work, and for documenting how to do a particular job. Furthermore, the act of mapping out a process using a flow chart can clarify other parties understanding of it.

Flow charts are a tool for programmers and non-programmers. Flow charts are ideal for reading code written in unfamiliar programming language or with an extinct programming system although we are not

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expert in it. In fact, flow charts make it easy for novice or nonprogrammers to read and understand it.

Flow charts are not only used as software, but also in process management and other fields of engineering. Flow charts are recommended to improve by adding more photograph or color in order to make flow charts more interesting in a presentation slideshow. Other recommendation is to keep everything fit in one page so flow charts can be read easily without need to flip to another page. The flow of the cycle must be from left to right and also flow lines must be under the symbol so it will not be overlapped.

IV. Conclusion XYZ Limited Company is a manufacturing company that focuses on producing and selling woman clothes within 15-20 years old. XYZ Limited Company opens in Jakarta because Jakarta is the biggest city in Indonesia and it also easy for the company to sell it to customer or even retailers. Business activity cycle in XYZ Limited Company is revenue cycle, expenditure cycle, production cycle and payroll cycle. Each cycle has their activity itself. Those cycles need to be formed and documented. XYZ Limited Company uses flow charts as their document technique. With flow charts, managers and other parties can easily

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understand it. Even novice or non-programmers will easily understand it because flow charts use standard symbols. To be easier to understand, there is improvement that flow charts need to make. It is by adding photograph or color to be interesting presentation slideshow. To avoid overlapped of flow charts line, it must be consistent and placed under the symbols, if it placed randomly, flow charts will be difficult to be read. The last, the flow of the cycle must be from left to right.

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References ETERNAL SUNSHINE OF THE IS MIND. (2013, February 20). Advantages and Disadvantages of Flowchart. Retrieved November 14, 2015, from ETERNAL SUNSHINE OF THE IS MIND: https://eternalsunshineoftheismind.wordpress.com/2013/02/20/adva ntages-and-disadvantages-of-flowchart/ Jain, P. (2011). production Cycle. Retrieved November 16, 2015, from http://www.slideshare.net/PoojithJain/production-cycle?related=1 Romney, M., Steinbart, P., Mula, J., McNamara, R., & Tonkin, T. (2012). The humman Resource Management Cycle/Payroll Subcycle. In ing Information Systems Australasian Edition (p. 273). New Zealand: Pearson Higher Education AU. Sybase. (2012, January 30). Data Flow Diagram (DFD). Retrieved November 14, 2015, from Sybase: http://infocenter.sybase.com/help/index.jsp? topic=/com.sybase.infocenter.dc38088.1610/doc/html/rad12320262 66129.html

Appendices Appendices – Expenditure Cycle

Figure 1

Figure 2

Figure 3

Figure 4

Appendices – Human Resource/ Payroll Cycle

Figure 1

Figure 2

Appendices – Production Cycle

Figure 1

Figure 2

Figure 3

Appendices – Revenue Cycle

Figure 1

Figure 2

Figure 3

Figure 4

Figure 5