E-commerce Essay Example

or commission from the consumer for facilitating these transactions. For example, someone wanting to sell their house may hire a property agency that takes a percentage of commission when the house is sold.

Additionally, there is peer-to-peer e-commerce where members directly communicate to exchange information, distribute tasks, or execute transactions. These peers offer their resources to others without central coordination by servers or stable housing structures. Peers both provide and consume resources. For instance, youth websites are popular for sharing files like music and videos.

Another example is mobile commerce (M-commerce), which involves wireless transactions using handheld devices such as cellular phones. Internet banking systems demonstrate M-commerce.E-commerce benefits both businesses and customers. Businesses can save costs by avoiding infrastructure expenses and physical stores or land. They can also reduce distribution costs by eliminating the need for staff or marketing catalogs. Furthermore, businesses can access the global market without geographical limitations, allowing even small and medium enterprises to participate with minimal financial investment. Internet technologies enable sellers to track customer preferences and offer tailored products or services. Similarly, e-commerce allows customers to search for cheaper options that meet their criteria, saving them time and money through online research. However, there are drawbacks to consider such as security concerns when providing personal information for payment, making customers vulnerable to fraud and identity theft. Additionally, delays in receiving goods are common due to shipping issues resulting in delivery times occurring on the following day or later when shopping online.computer-based system, known as Material Requirements Planning (MR.), is used in e-commerce to integrate production planning and inventory control. Its objective is to maintain sufficient inventory levels for timely material availability while

adjusting production scheduling based on forecast orders. This system incorporates changes in orders into its dynamic production schedule. In the context of e-commerce, this text explores the concept of dependent demand, which refers to how product A relies on products B, C, and D in its production process. To complete a specific quantity of product A, all corresponding units of products B, C, and D are necessary. Furthermore, the authenticity of online websites can be difficult to determine and may lead to customer dissatisfaction due to the inability to physically experience products before purchasing. Additionally, certain items like furniture may not be available for online purchase due to high transportation costs and risk of damage. However, Malaysian companies such as Long.My and Madam.My utilize e-commerce for various transactions including business-to-business, business-to-consumer, and consumer-to-consumer. They offer a wide range of products such as electronics and houses. Another company called Azalea.My also uses e-commerce for business-to-consumer transactions offering clothing, shoes, and accessoriesThe system includes inputs such as the master production schedule, product structure records (which account for supplier lead times), and inventory status records. The master production schedule assists in planning staffing, production, and inventory management by providing essential information for effective manufacturing process planning and control. By connecting forecasting with business planning and detailed operations, it offers management an accurate overview of current orders and processes.

The product structure records contain crucial details about each warehouse item and their required assembly for producing each end item. Each record must include part numbers, descriptions, quantity per assembly, lead times, and quantity per end item. Inventory status records are vital for managing a company's inventory. Warehouse records provide the

current status of all items and scheduled receipts. It is important to regularly update and maintain the accuracy of these records for every inventory transaction.

The outputs of this process are the "Recommended Production Schedule" and the "Recommended Purchasing Schedule." The "Recommended Production Schedule" provides detailed information on start and completion dates, as well as quantities needed to meet demand from the Master Production Schedule.The "Recommended Purchasing Schedule" outlines when items should be received and purchase orders placed to align with production schedules. The goal of Material Requirements (MR) is to ensure materials are available in the right place and at the right time. Organizational goals for MR design and implementation can be categorized into inventory, due date, and capacity dimensions. Manufacturing Resource Planning (MRP) systems offer advantages like improved inventory management, timely production scheduling, and better coordination between purchasing and production departments. These systems minimize inventory levels, track material requirements, determine cost-effective order sizes, calculate safety stock quantities, allocate production time efficiently, plan for future capacity needs, enhance customer service, and respond better to market demands. However, using MRP systems has disadvantages such as the need for accurate input information which can be challenging if a small business lacks good inventory records or updated bills of materials.The implementation of an MRP system can result in various issues such as missing parts, excessive orders, schedule delays, and missed delivery dates. However, this process may also encounter challenges that are both time-consuming and costly due to employee resistance. Overcoming these difficulties requires providing training and education to all impacted employees. Additionally, a lack of commitment from top management is another drawback. It is crucial for the acceptance

of MRP as a planning tool with a profit-oriented focus. Manufacturing Resource Planning II (MRP II) IMPAIR serves as an advanced version of MRP I which is a computer-based planning and scheduling system aimed at enhancing management's control over manufacturing operations and its support functions. IMPAIR expands on MRP by integrating various aspects of manufacturing plant operations including planning, procurement, and resource utilization. This integration ensures efficient customer demand fulfillment by connecting high-level plans like Marketing Plan, Financial Plan, and Production Plan with lower-level systems such as MR., AMPS, Shop Floor Control, Purchasing, and Inventory. The decision rules within the MR.II system aim to achieve balanced production across different items. For proper execution of AMPS, it is vital that the MR.II system guarantees the capability of the production facility; otherwise compromising delivery dates may occur.Prominent companies such as Ford Motors, Caterpillar, and Coca Cola rely on MR.II for efficient management of their manufacturing operations. The MR.II process involves converting strategic plans into AMPS, which then serve as a foundation for developing MR.schedules that align with the plans. Capacity Requirements Planning (CRAP) is conducted to determine the necessary equipment, personnel, and materials needed to meet the schedules. If capacity falls short, revisions may be required for both AMPS and strategic plans. This iterative process continues until schedules are in line with plant capacity. The schedules are then released to responsible departments for production and accomplishment information to update the MR./AMPS elements, creating a closed loop manufacturing planning and execution system.

MR.II brings several advantages including standardized business processes through automation, making them easily repeatable and serving as a platform for improvement. However, during initial implementation of MR.II,

companies may face challenges in controlling the increase in transactions associated with sales, manufacturing, and purchasing growth. Nevertheless, MR.II allows employees in these areas to accomplish more tasks while providing increased visibility of information for their jobs - ultimately enhancing competitiveness.However, implementing MR.II also has its drawbacks. It relies on accurate quantity information in the inventory area and bill of material module to avoid errors in automated planning processes. The planning modules use averages for lead times (time to purchase or manufacture) and lot sizes (quantities usually purchased or manufactured) on purchase orders or work orders. If there is a lack of understanding about the impact of average lot sizes and lead times, it can result in failure and expensive re-implementation if there are variations between actual lot sizes purchased or produced and the lead times. In such cases, the planning software will not generate plans that align with the actual circumstances.

Both material requirements planning (MR.) and manufacturing resource planning (IMPAIR) involve integrating incremental information through hardware and modular software applications connected to a central database that stores and delivers business data. However, MR. primarily focuses on manufacturing materials, while IMPAIR encompasses coordination of the entire manufacturing production, including materials, finance, and human relations. The objective of IMPAIR is to provide consistent data to all stakeholders involved in the manufacturing process as the product progresses along the production line.The use of paper-based information systems or non-integrated computer systems that generate paper or disk outputs often leads to errors in data. These errors can include missing or redundant information, numerical mistakes caused by incorrect data entry, calculations based on inaccurate numbers, and poor decision-making with outdated

or incorrect data. Additionally, non-integrated systems may have unreliable data due to inconsistent categorization across different databases used by various departments.
To address these challenges, the IMPAIR system incorporates material requirements planning (MR) and is considered a comprehensive business management tool. This system involves multiple software and processes for tasks such as inputting sales forecasts, coordinating raw material purchases, developing production schedules, and integrating data from all functional units within a company. Each product's specific plans in the IMPAIR system are based on a master production schedule and consider factors like machine and labor capacity. The resulting labor and machine schedule is then sent to accounting and finance for information regarding production costs.
Furthermore, Enterprise Resource Planning (ERP) software plays a significant role in consolidating information from all stages of the business into one centralized repository for management purposes. ERP systems gained popularity in the 2000s due to technological disruptions like the year 2000 problem and the introduction of the Euro currency.These comprehensive IS applications store data in an integrated database that is constantly updated in real-time, ensuring that transactions made in one application update details in another. This is crucial as it eliminates the need for overnight batch updates and allows for immediate updating of associated data such as stock levels in an inventory system when a sales order is placed.

Generally, the core ERP software is provided by external specialist suppliers. Developing their own ERP application undermines the business case for change and carries risks. Suppliers state that the functionality of ERP software is mostly predetermined and can only be altered based on a reference model representing best practice for a specific application.

ERP integrates various business

processes including financial accounting, management accounting, human resources, manufacturing, order entry, supply chain management, project management, and customer relationship management. This integration saves time and expenses while enabling faster decision-making with fewer errors for management.

ERP supports upper-level management by providing critical decision-making information and enhancing adaptability to change and data security. While implementing ERP may be expensive and impact business processes, it also creates increased opportunities for collaboration within a modern enterprise.The lack of flexibility, adaptability, and ongoing support may impede the effectiveness of ERP, causing potential business-related issues that erode its benefits. Robotics plays a significant role in computer-aided design (CAD) and computer-aided manufacturing (CAM), as highlighted by Porter and Millard in 1985. Traditional approaches to business operations do not ensure a competitive advantage in the market. Organizations invest in systems to respond to global pressures and gain advanced information. The early implementation of computer aided systems focused on automating complex designs and advancing manufacturing processes for future generations.

Computer Aided Design (CAD) is an electronically oriented program that combines hardware and software to facilitate the creation of virtual models for products or goods. Instead of traditional tools like pencils and T-squares, CAD utilizes computer programs (such as high-quality graphics monitors, mice, light pens, and digitizing) along with computer printouts from special printers or plotters to generate drawings, diagrams, and designs.

There are numerous business applications for CAD. Firstly, it enhances idea generation by providing a more flexible process that eliminates the need for prototypes when testing products. This enables organizations to generate more new ideas and suggestions since new product concepts can be quickly tested at a lower cost.Computer Aided Design (CAD) has numerous benefits.

It allows for instant augmentation of new product designs and potential improvements to existing products. CAD also facilitates market testing by enabling companies to start the process earlier in the design phase, allowing target groups to quickly view virtual mock-ups of new products and provide immediate feedback for alterations. The software used in CAD allows for easy updates and feedback during design sessions, as it allows new data to be entered without erasing previous work. Additionally, CAD systems have a "zoom" feature that enables closer inspection of elements within the computer models, which are three-dimensional and can be rotated on any axis, providing a better understanding of the object and reducing risk in new product designs. Using virtual testing with CAD also saves both time and money in product development.

However, implementing CAD can be expensive and requires expertise in operating the software. On the other hand, Computer Aided Manufacturing (CAM) involves using computer software and hardware to translate CAD models into manufacturing instructions or instructions for numerical controlled machines. This modern industry practice utilizes specially programmed computers to operate machines more efficiently and quickly. CAM software acts as a link between the conceptual design phase and the manufacturing process, eliminating the need for physical prototypes. In the past, converting CAD designs into paper drawings with production instructions was a manual task.
However, CAM software has revolutionized the manufacturing process by directly transforming CAD-generated models into a set of manufacturing instructions. This software converts the models into G-Code, which is a programming language understood by numerical controlled machines. The use of G-code allows for streamlined production as each machine tool in the manufacturing "cell" acts as an

industrial robot with a specific role. The product moves through the cell in a production line style, with each machine tool performing one step. With computer controllers operating all the tools using G-code instructions, human involvement is minimized and costs are reduced.

CAM software also provides flexibility for design changes as manufacturers can easily provide updated instructions to the machine tools and see immediate results. Additionally, tasks like part reordering and error detection can be automated through CAM software.

While implementing CAM brings benefits such as cost reduction, lower product prices, and increased profits, it requires CAD/CAM software, hardware, and trained operators that can increase expenses. Furthermore, technological malfunctions have the potential to disrupt production in assembly-line structures.

As head of department dealing with multiple issues inherited from previous management, it is important to prioritize which problems should be addressed first. It is recommended to focus on those that are most critical.The Parent Analysis tool is based on Joseph M. Curran's Parent Principle or "80/20 Rule" established in 1937. Its purpose is to identify underlying issues while pinpointing the top 20 percent of tasks that will produce 80 percent of desired outcomes. To make the most of this tool, you should:
1. Create a thorough list of all issues that need to be resolved by collecting input from clients, team members, surveys or logs.
2. Determine the underlying cause of each problem using techniques such as Brainstorming, the 5 Whys approach, Cause and Effect Analysis or Root Cause Analysis.
3. Assign an evaluation score to each problem for assessment purposes.

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