Today’s technology is growing so rapidly that it makes such an enormous influence in every aspect of life, including in the manufacturing companies, where the use of digital based information technology can produce the accurate information that people need in production activities. Information systems can be technically defined as a set of interconnected components, gathering, processing, storing, and distributing information for decision making, coordination and supervision.
Business Process Management is a field of knowledge in Management Information Systems to design, create, control and analyze company operations involving people, organizations, applications, documents and other sources of information. Cemara Mas Tanggulangin Cigarette Company is a company engaged in manufacturing cigarettes. The information system on the production activities at Cemara Mas Tanggulangin Cigarette Company is not implemented effectively so the company still uses a manual data entry system in distributing company information or data.
Manual data entry is prone to loss of data or information, and causes distortion of information, recording errors, malfunctions, and difficult to trace when the data on the results of production is needed. One way for a company to compete with its competitors is to use an effective management information system.
Bodnard and Hopwood (2004) stated that the change from a manual system to a digital system is not only about technological change, but also changes in behavior and organization. Rockart (1995) in Irwansyah (2003) stated that information technology is the fourth resource after human resources, money resources, machine resources used by managers to form and operate companies.
One example of a case experienced by Cemara Mas Cigarette Company Tanggulangin is the delay in updating the selling price information between the sales and marketing department, so that the prices of the products sold have not been updated, resulting in an average selling price being 28% lower than the price that could have been reached on the market. This is the main consideration for researchers to carry out the identification process in the business process starting from the procurement of raw materials to become finished goods (output) at the Cemara Mas Cigarette Company, Tanggulangin.
A simple manual data entry system does facilitate employees from all educational backgrounds, but the recording system is not effective because manual data entry provides a loophole from human error. It also causes information distortion, namely information that must go through many posts before reaching the destination can change, especially if the coordination system is weak.
Data flow diagrams (DFD) that illustrate the company’s existing conditions are depicted by level 0 diagrams, while Data flow diagrams (DFD) that illustrate ideal conditions in the company and can later become suggestions for improvement are illustrated by level 1 diagrams. The results of research in the company, showed that Comparison between Data Flow Diagrams (DFD) level 0 and level 1 in the company can result in the identification of information distortion in the ordering section, from the supply of raw materials that are inadequate for the production process as well as the appearance of order quantity fluctuations. Furthermore, the distortion of information on the procurement of raw materials, which is related to the price of raw materials and the conditions of raw material inventory for the process of making products. Finally, information distortion in the production department, lead time (order fulfillment time) is backward as a result of information that is not known by the sales and production department in terms of product order confirmation. Distortion at 3 (three) points above is the starting point to implement digital-based Information Management System in the company.
The researcher proposes to replace the manual data entry system with a computerized system. The prototype model of a digital-based Management Information System Management was created to accommodate data flow from sales, production and distribution information more accurately. The prototype model can be accessed by all relevant parts up to the director level as a form of direct reporting (real time). Coordination between departments is better because the digital prototype model is more responsive to company conditions, so that it can help the director in making decision. The computerized and coordinated system also facilitates the preparation and storage of information related to the production and sale of cigarettes.
Periodic reporting is also easy to do with the existence of a computerized and coordinated system. Digital prototype applications in this company will make the company ready to compete with competitors in similar industries in the current digital era.
Author: Tuwanku Aria Auliandri; Marsha Rizkiaputri
Link Artikel Jurnal : Journal International Journal of Innovation, Creativity and Change (2020) https://www.ijicc.net/images/vol11iss9/11921_Rizkiaputri_2020_E_R.pdf
