The role if Integrated Management System in Developing Inventory Management system in Government Sector - Dissertation Example

? Table of Contents 2 Introduction 4 The government sector in UAE is in the integrated management system primary poses for assisting their store division that effectively processes related tasks of operation. The integrated management system helps to developing and improving any existing gaps and weaknesses when the application is utilized to being tailored to each department process tasks. The gaps and issues related to safety, building developments, staff quality, and the transferring of data that meets international standards sets the level of needed achievement. The weaknesses in proficiency meeting internal practices with sufficient resources can continue the lack of productivity to transferring data or materials from one point to another. This can cause a risk associated to cost that without an integrated management system in place to monitor and detect failure to meeting standards and negatively hinder the organization for progressing. 4 Integrated Management 4 Who Can Benefit From It? 5 Management system standards 6 INTEGRATED MANAGEMENT SYSTEMS - Enabling More Effective Business Performance 8 PAS 99 9 Integration of management system standards 10 Tips of System Integration 11 Government Sector 12 Issues Faced By The Government Store Division 13 Development of Inventory Management System 14 Application of Inventory Management System 15 Results of Developing Inventory Management System 15 Recommendations 16 REFERENCES 17 Abstract The pursuit for organizations relates to having proficiency in their integral management system that prevents lapse of coverage to processing tasks within certain daily practices. The review of the company internal processes in select departments offers a vantage point of identified gaps, such as, safety issues, building development, staff quality, material requisitions, and material transfers. Thus, the defined element of concern to address such gaps of issues are notion to structure the integrated management system in a way that adapts to each department needs for proficiency. This is key to solving the problem identified of slow responses from the government store division to the targeted consumer, in the ability, to structuring the technology resources effectively that limits overall associated risks. The aim is the achievement of objectives that arise from its polices with reference to a specific sector of the business. Further, the mission of having a combination of processes and practices that are used within an organization to aid the implementation of the organization’s policies provides a lasting impression to business model for efficiency. The goal is in reviewing the slow responses of productive processing of tasks that are mirrored - to certain integral management systems capabilities in the delivering of objectives that arise from these policies, is known as Integrated Management System [Def.] In the identification of risks the business processes in Operational Risk [Def.] are categorized into four areas: 1. Quality- risk of supplying the customer with a different product or service 2. Safety- risk associated with the supply of an unsafe product/service, or workers getting injured during production 3. Environment- risk of producing a product that could be harmful for the environment and/or the consumer 4. Security- risk involved with being associated with criminal activity during the provision of a product The core investment in business relates to the managing the resources that improves the overall profitability of the organization. Therefore, the needs is to having a huge cash flow constraint is imperative for the organization to optimize inventory using the analytical and statistical methods applied by an integrated approach. Respectively, the optimizing inventory is an output of many inter-organizational processes that making it one of the major challenges can hinder on reaching a desired outcome. The pursuit for the organization to lower service levels often it has been noticed that company’s attempt to lower their usage of inventory by using non-analytical approaches. The UAE private sector challenges are in the managing of resources of inventory that can restrict the ability to properly process related tasks for control and quality. These issues cause problems within the organization for meeting proficiency standards that causes risks in unnecessary costs. Thus, the review into application of structural integrated management system is key to solving the problem of meeting international standards on proficiency and efficiency. In most cases, the main solution is in the redesigning of initial processes that will be upgraded to the integrated management system that warrants a productive outcome of the organization structure. Introduction The government sector in UAE is in the integrated management system primary poses for assisting their store division that effectively processes related tasks of operation. The integrated management system helps to developing and improving any existing gaps and weaknesses when the application is utilized to being tailored to each department process tasks. The gaps and issues related to safety, building developments, staff quality, and the transferring of data that meets international standards sets the level of needed achievement. The weaknesses in proficiency meeting internal practices with sufficient resources can continue the lack of productivity to transferring data or materials from one point to another. This can cause a risk associated to cost that without an integrated management system in place to monitor and detect failure to meeting standards and negatively hinder the organization for progressing. Integrated Management A management system that incorporates the various systems of the organization and processes them in one framework is known as an Integrated Management System. It allows for the organization to work with unified objectives as one single unit. With this management system, the organization becomes as one, each function aimed towards one mutual goal. This greatly improves the performance of the entire organization. An integrated management system is well co-ordinate and leads to greater achievements. Providing a clear picture of each and every aspect of the organization, how they affect each other and all the risks related to it. This system makes it easier to implement new systems in the future. One structure is created by the management team; it effectively works towards the achievement of the organization’s objectives. This system smoothly works in each sector of a company; managing the needs of the employees, keeping a check on the competition, encouraging practices that minimize risks and increase resources. Such an approach towards management boosts the company’s profits and their objectives are more easily achieved. Who Can Benefit From It? This system of management is appropriate for any organization that is aiming to incorporate their management systems into one unified system with a complete documentation, policies, processes and procedures. This system suits the organization which is looking to introduce other management systems, and have an already maturing management system. The identified store division within the UAE is in the beneficial aspect of potentially applying a strong integrated management system that addresses each department needs, as well as, set goals. The approach the organization can illustrate an effective way to solving the hurdles faced by each department that renders a low cost assessment. Management system standards The following standards form the basis and guidance material for an Integrated Management System. It provides more effective management in all the sectors of the organization. It shall provide the basis for organizational development and also facilitate the liberation of employees. It promotes the implementation of the policies and gives surety to the consumer that the organization is proficient enough to meet their needs. Risk Management It provides a framework to create the context, analysis, treatment, and communication of risk. Defines the magnitude of the risk in relation the probability (likelihood of an incident occurring). This aspect is used to rate the risks and also to prioritize their financial treatment on these controls. Management system integration It gives Guidance to the business, government and community organizations. Identifies the components that are common to all management systems and provides an overview of them. Does not duplicate or replace the company’s existing management requirements, instead it is intended to assist the organizations to implement the common components of the existing systems in their separate organizations and/or level. It helps in identifying the areas, which qualify the management to reduce replication and the complexity in their system. Quality management systems Requirements It specifies the needs for quality management. This system can be used to focus on customer satisfaction by meeting their requirements and the applicable regulatory requirements. Such a system can be used by both internal and external parties to assess the ability of an organization to the needs of customers and regulatory requirements Occupational health and safety management systems Provides specifications with guidance for use this standard aims - to set the auditable standard for occupational health and safety management systems. Environmental management systems This standard is to set a criterion for an environmental management system. Information security management  Provides the management with possible recommendations for information security management Quality management systems Such a system aims to give Guidelines for performance improvement. It gives direction on quality management systems. It includes processes to improve the performance of the company and also to satisfy all the interested and concerned parties. Guidelines for quality in project management.  Two aspects are recognized in the application of quality in project management, in which, the quality of the project processes, and the quality of the product. Failing to address these may have a very prominent effect on the product, and the stakeholders of the organization. A systematic approach is needed for the creation and also the maintenance of quality in business processes and the product. Such an approach aims at making sure that the consumer’s needs are understood and met at first priority, the needs of the stakeholders are evaluated. The policies of the company must also be considered when implementing the management. (Acotrel Risk Management Pty Ltd, 19th July 2000) INTEGRATED MANAGEMENT SYSTEMS - Enabling More Effective Business Performance Today all the organizations need to conform to the various requirements in order to satisfy the demands and requirements of their stakeholders. The business drivers can be legal, quality, health, and safety, corporate responsibility and accountability, sustainability etc. the next step for any organization is to develop a separate system to deal with each sector and its new requirements. Eventually it gets hard to deal with the ever increasing needs as the systems were developed individually, hence they might even end up conflicting each other. Thus it is better for the organization to have one working system that addresses all the objectives and requirements. Such a system should be “transparent”, easy and helpful to use, aiding the business to run more efficiently. A complete and certified management system helps the company in doing numerous things. Such as: Increases the company’s efficiency Provided strong leadership Delivers standards of business conduct Provides a basis for improvement Standardizes the company’s operations Improves the company image and market standing PAS 99 PAS 99 (Publicly Available Specification) provides common requirements for a management system that can be put to use as a business outline for an Integrated Management System. This specification encourages organizations to see it as an opportunity to achieve a unified management system in order to increase the effectiveness of the running of their operations. PAS 99 also considers the six common requirements for management systems standards that have been outlined in the ISO Guide 72; and it also follows the Plan, Do, Check, Act approach of all the major management systems requirements standards. The 6 common requirements are as follows: 1. Policy 2. Planning 3. Implementation & Operation 4. Performance Assessment 5. Improvement 6. Management Review Their adoption aims to simplify and make easy the process of assessment in both the internal and external parties of an organization and allow them to secure huge internal benefits, Integration of management system standards The following standards are included in a typical management system: • ISO 9001 (Quality Management) • ISO 14001 (Environmental Management) • OHSAS 18001 (Occupational Health & Safety) • ISO/IEC 27001 (Information Security) • ISO 22000 (Food Safety) • ISO/IEC 20000 (IT Service Management) The standards that can be included in this list are not limited to the above list only. These may vary in some regions and countries. The range of standards might be included into the integrated management system. Tips of System Integration For the companies that have existing systems of management and are looking to integrate to a different system of management, some tips are provided below to smoothly incorporate the change: Understanding the existing system The company must have a full understanding of the existing system’s effectiveness, and how it is perceived by their employees. They should also focus on whether it provides them with clear and workable documentation. A big factor to be taken under consideration is the whether the workforce has faith in the system and its involvement in the achievement of the desired results. Consistency of the new system The company should have some surety that the systems will facilitate the same activities and/or services. It should aim at dealing with the same facilities and products. Establishment of a Cross Functional Team Such a team is important in order to determine the best possible approach towards system integration. It should include representatives from the environmental, safety and quality sectors. Cope with any resistance that they may face It is quite possible that internally change may not be accepted with open arms. Such a section of the company’s workforce needs to be managed and eased into the change, as per the company requirement. Managers and some employees might be reluctant to change and switch to a system that is unfamiliar to them. Understanding how the new systems may differ in purpose Management systems have numerous common elements, but there are many unique elements of each system. Such differences must be accommodated and acknowledged while incorporating the new management system. Some amendments are needed to be made on the system documentation A staged approach is sometimes said to be beneficial The procedures should be kept as simple and clear as possible for the key organization to assess the changes with the employees and managers that shall be directly affected. It has been observed that while integration is said to reduce the number of procedures and instructions, there is a possibility that the workforce gets confused. Training and Preparing of the Workforce Once the documentation has been finalized the training of the employees should begin. To prepare them for the integrated system and the organization must invest due time in order to coach their employees to the new ways of the management system. Check the integrated system and take any required actions. Government Sector The government sector is also referred to as the state sector or public sector. This sector deals with the manufacturing, distribution and allocation of goods and services, for the citizens or the government. Examples of public sector activity include delivering social security, administration of planning and organizing the defense system of the country. The public sector ownership takes several forms. These forms include: Taxes funding direct administration Since delivering organizations have no specific requirement or need to meet the criteria of commercial success, the government makes all the production decisions. State owned enterprises have greater commercial freedom These have a different method of administration. They are expected to operate according to the criteria that have been set; generally the government does not take the production decisions, although they may set their goals for them. Partial outsourcing This a public sector business model, usually for the IT services Complete outsourcing Contracting out with a privately owe company and providing the entire service on behalf of the government. This is considered as a blend of the private sector operations with public sector. In some forms the control and/or of the private .sector is to high that the specific service is not even included as a part of the public sector. Despite the name, public companies, they are not a part of the public sector. They are a kind of company in the private sector and are allowed to offer their shares to the general public. Issues Faced By The Government Store Division The main identified issues faced are the slow response of processing requests from other internal departments, external requests, and processing daily tasks that completes that department associated procedures. The development of the management systems relates to addressing the core issues of staff quality that if not integrated raises risks with costs that can prevent the progression of the government organization. The technology limited ability to structure itself to being tailored to the department cannot meet the core needs of the organization ability to serving its end-consumer of the public sector. Development of Inventory Management System Inventory management system [Def.] is a process for the management and control of a company’s objects and/or materials. The organization relies on barcodes and RFID tags for the automatic identification of the objects in their inventory. The system uses a barcode scanner or RFID reader to identify the object and then collects available information from the operators via mobile computers and/or fixed terminal. In accounting, inventory is categorized as an asset. Inventory [Def.] means a list assembled for formal purpose. (Chambers Dictionary, 1998, Chambers Harrap, Edinburgh, p. 845). Having an inventory system is of great importance to any company, organization and government. In the fast paced global market, a flawless inventory system is required to gain some competitive edge. Rather than managing inventory at a small scale and individual level, now focus is being placed on network based inventory management softwares. This provides an opportunity to position the inventory where it is needed the most and also provides a boost in the profitability. In this competitive market, a higher return on assets is achieved by strategically placing and distributing the inventory in advantageous positions. A network based inventory management software enhances the ability to satisfy the ever increasing demands of globalization within the key challenges of more inventory, products and distribution points is faced by the organizations. Application of Inventory Management System It can be used to automate a sales order fulfillment process. This system includes a list of orders to be filled, and reminds the workers to get the necessary items, also giving them information about packaging and shipping: An Inventory system manages the in and outward material of hardware. The systems might be using wireless mobile computers for the recording of transactions when they occur. To enhance the organization control systems, physical inventory counting and cycle counting are used. This takes care of all the supply orders. Results of Developing Inventory Management System Having an Inventory Management System in the Government Sector has numerous benefits. The advantages of having proper inventory management outweigh its costs. Such as: Automatic tracking and auditing of all the assets Proper identification of the new assets Easy to identify all the assets The system provides with all the information related to the assets, such as last date of audit, last user log on information Tools of auditing and inventory feed data in the database, hence assets can be monitored more accurately Easy to obtain information about which assets are being used, when and where they are being used Monitoring of the changes, licenses and required upgrades The system answers all the queries All pertinent information about each item can be controlled Provides the capability to track the levels of inventory and also the level of activity in multi locations within the government sector Facilitates purchasing, as it provides with reports of products at reorder points The system provides with online inquiry to keep a constant and thorough check on the assets Helps in cutting the significant costs Helps in avoiding a dramatic impact on the financial bottom line of the organization A computerized system for inventory management is a huge asset to any company, regardless of its size. Recommendations For efficient management of inventory its it required that: The company should consider fixing the stock levels of different categories, keeping in mind the consumption patterns, market trends, storage space, and the costs such as ordering and carrying. The company should effectively and responsibly dispose the non-moving and surplus stores and spares. The upstream companies should observe the norms fixed for holding the inventory REFERENCES Bisbe, Josep and David Otley, The Effects of the Interactive use of management control systems on product innovation, Accounting, Organization and Society, 2004 C. Donald J. Waters, Inventory control and management, John Wiley and Sons, 2003 Chambers Dictionary, Chambers Harrap, Edinburgh, 1998 D.Chandra Bose, Inventory Management, PHI Learning Pvt. Ltd., 2006 Floyd D. Hedrick, Library of Congress, Washington, D.C. Frank C. Barnes, P.E., Ph.D., University of North Carolina at Charlotte Edward W. Davis, University of Virginia, Charlottesville D. Clay Whybark, Indiana University, Bloomington, Murray Krieger, Inventory Management Integrated management systems series: IMS Part 7 Continual improvement, IMS Risk Solutions Ltd KomilVora, Inventory management system, California State University, Sacramento, 2009 Max Muller, Essentials of inventory management, AMACOM Div American MgmtAssn, 2003 Seleshi Sisaye, Organizational change and development in management control systems: process innovation for internal auditing and management accounting, Emerald Group Publishing, 2001 Wayne Pardy, Integrated management systems: leading strategies and solution, Government Institutes, 2009 Read More