MANAGEMENT

INFORMATION SYSTEM

REPORT

MIS AT ORIENT CRAFTS

SUBMITTED TO : SUBMIITED BY:

Prof. Malathi Sriram Hani Suresh 18134

Rahul Srivastava 18142

Deepak Rao 18152
Prachurya Sarma 18162
Srinidhi Urs H N 18171
Preface:

Orient Crafts Limited is Gurgaon based company. The current CMD of the company is Sudhir
Dhingra. The company is established over 40 years ago, Orient Craft is today India’s #1
garment design house, backed by a large world class manufacturing infrastructure. With state-
of-art production facilities across 21 units and a combined capacity to produce nearly 2,00,000
pieces per day, OC aims to deliver high quality in wide variety of products to suit its customer’s
needs. Currently the annual turnover of OC is 250 million USD (first cost, resulting in over a
billion dollars of retail products and growing).

OC being a design led organization. The strength is to keep abreast with latest fashion trends
and the worldwide sourcing network which helps them to meet client satisfaction with every
delivery they make. Cutting edge technology, modern infrastructure and innovation in design
are some of the words that describe them.

While they continue to strive and deliver through performance and complying with all Health
and Safety norms & leap ‘behind and beyond the needle point’ to give back to the society. The
company endeavour to be a socially responsible corporate and execute various programs and
initiatives to uplift the local, rural and marginalized sectors.

Some of the Clients of Orient Crafts:

EXECUTIVE SUMMARY
The case ‘Orient Crafts’ illustrates about the functionalities involved in the organization and
the operations carried out in the organization using an implemented integrated information
system. It also emphasizes on the areas that the organization gave high priority and the
improvement in the performance of those prioritised areas after the implementation of the
integrated information system. It also exemplifies how the company’s decision of entering
custom manufacturing impacted on their customer by creating a true customer satisfaction.

We being the students of SDMIMD pursuing PGDM, has studied the case and preparing report
as a part of our ‘Management Information System Project’ that has been carried out under the
guidance of Prof. Malathi Sriram, Assistant Professor-Systems, SDMIMD, Mysore. The main
deliverables of this report are as explained below.

The report narrates the information system employed by ‘Orient Crafts’ and the objectives of
the in-place information system. We also outline about the hardware and software
infrastructure setup in the organization for its information system and about the key
technologies adopted in the organization. The report also represents of the business processes
carried out in the organization through a ‘Use-Case Diagram’. We also analyse about the
improvements in the prioritised areas of performance of the organization after the
implementation of the information system. The report also emphasizes on the activity areas
that focused on MIS with respect to the organization and on how the adaptation to custom
manufacturing would change the business process of the ‘Orient Crafts’.

Objectives of Required MIS

The main objective of the orient crafts before implementing Integrated information system:
 To improve customer service which was at 60% (i.e. 60% of orders were being
delivered according to original customer request).
 To increase the sales/inventory ratio which was at 4.2%.
 To reduce production cost variance which was averaged as 16.3%.
 To reduce clerical expenses which were up to 36% of sales.
This was not good enough in a highly competitive business. Since the primary
asset a company has is customer service an improvement in customer service
was given top priority.
Three areas of cost control were also given high priority. They were:
 Production cost
 Distribution cost
 Clerical cost

MIS Implemented to cater the objectives

Integrated management information system was implemented, because of which, performance
in the following areas four areas of high priority greatly improved.

 Customer Service: Up to 72% of orders were filled as requested as against the earlier
60% showing substantial improvement.
 Inventory Turnover: The sales/ inventory ratio was 6.2% of 50% increase over the
previous performance.
 Production Cost Variance: With timely and accurate information available when
needed now the cost variance was controlled with 1% tolerance.
 Clerical Expense: The ratio of clerical expense has dropped to 2.8%.

Types of MIS Initially Used:

From the case study of Orient Crafts as it is not mention anywhere that what are the initial
technical development the management took to reduce the cost. But, as from the case they had
implemented MIS which had increase the efficiency of the company in terms of Customer
service, Inventory Turnover, Production Cost Variance and Clerical Expense. So, by taking
this information we can say that Orient Crafts has used ERP and E- Business Enterprise.

 ERP: This application consolidates the data provided by various functional groups of
the company and automate and maintain back-office business activities.
So, by implementing ERP in Orient Crafts the company can reduce the unnecessary
cost and it can focus on what groups are properly functioning and get a clear and
transparent picture which can increase functional efficiency of the system.
 E-Business Enterprise: E-Business expands to electronic business which implies the
online presence of the business firm.

E- Business is being implemented by almost all kind of advance firms so Orient Crafts also
wanted to enter global market E- Business the organisation can understand the client more
 perfectly and, they can impart the image which the company wants to portray to get their
perfect objective and mission. By using the concept of E-Business tools the company can
analyse where they need to focus for more.

HARDWARE AND SOFTWARE USED BY ORIENT CRAFTS:

KNITTING MACHINE:
A knitting machine is a device used to create knitted fabrics in a semi or fully automated
fashion. There are numerous types of knitting machines, ranging from simple spool or board
templates with no moving parts to highly complex mechanisms controlled by electronics. All,
however, produce various types of knitted fabrics, usually either flat or tubular, and of varying
degrees of complexity. Pattern stitches can be selected by hand manipulation of the needles, or
with push-buttons and dials, mechanical punch cards, or electronic pattern reading devices and
computers., or with push-buttons and dials, mechanical punch cards, or electronic pattern
reading devices and computers. Machine knitting saves a considerable amount of time but does
require learning to operate the machines correctly. Most if not all hand knitting patterns can be
worked up on a machine, either identically or in a similar design.

CROCHET MACHINE:
Crochet is a process of creating fabric by interlocking loops of yarn, thread, or strands of other
materials using a crochet hook. The name is derived from the French term crochet, meaning
'small hook'. These are made of materials such as metal, wood, or plastic and are manufactured
commercially and produced in artisan workshops. The salient difference between crochet
and knitting, beyond the implements used for their production, is that each stitch in crochet is
completed before proceeding with the next one, while knitting keeps a large number of stitches
open at a time.

COMPUTERISED EMBROIDERY MACHINE:

Orient crafts use computerised embroidery machine where Patterns can be directly downloaded
from connectivity websites and you can even create and customize your own on some makes
and models.

Some other machines used by orient crafts are lace making machines and cloth finishing
machines.

Coming to the software used by the apparel manufacturer, it uses latest computer aided
software manufactured by TUKATECH.

Tukatech’s 3D apparel design software eliminates the need for trial and error in physical
sample creation, ensuring that any design fits right the first time through the following
process:

1.Bypass Physical Sample Making: TUKA3D’s accurate virtual fit sessions with animation
allow the user to bypass physical sample making, dramatically reducing the time and cost
associated with product development.

2.Models Based on Scan Data: The software provides a unique tool which help the user to
understand the measurement that can be extracted from body scan which can be used to
create a 3D avatar that is exact replica of the fit. So, by doing so user can understand how
the final design will look like.

3.No Physical Samples, No Photo Shoot, No Inventory: Create a virtual photo shoot for
online sales, emailing to buyers, or for marketing purposes. Showcase a complete collection
without manufacturing a single garment. With TUKA3D, the Made-On-Demand business
model becomes a reality.

PDM Software: PDM serves as a centralized system of database that provides clarity and
simplicity. It promotes the synthesis and exchange of data among users who have
authorized access to it. With the utilization of PDM, apparel industries can manage product
development, operation, and maintenance. It also aids in maximum usage of production
resources, limits the wastage of raw materials, helps in retaining the quality of the product,
and enables to share information with different wings of a textile company.

Since every department is allocated different tasks and is involved in different functions,
PDM software allows users to update information pertaining to their work, and
responsibilities regularly, which in turn can be used by others to smoothen the
manufacturing process. Hence any form of information recorded, created, or re-used helps
to perform the production efficiently. Any input on a product, adds value and links the
system to diverse users like the CAD (Computer Aided Designing) team, production
managers, and designers to work with the latest data.
Suggested Technologies/MIS used for Orient Crafts
We are suggesting this information system as according to the case orient crafts wanted to enter
into custom manufacturing/increase inventory turnover ratio and reduce cost variances.

CRM: Customer Relationship Management, covers concepts used by companies to manage

their relationships with customers, which may include attracting the customer, analysing the
customer, and satisfying the customer.

 It is a comprehensive approach to customer relationship management. It is used in

managing a company’s interactions with prospective customers and current customers.
 It is a strategy designed to help companies increase their productivity and improve
customer satisfaction and retention. This strategy is very powerful as it provides a
comprehensive view and it helps monitor previous interactions, pending invoice, status
of orders and many others.
 CRM software is also used in tracking data of individual clients. Knowing the data of
each client is necessary so that the sales team will know the information needed in
dealing with their customers. Having the necessary information is useful so that each
customer will be given individualized service.

SCM: The ultimate goal of SCM is to meet customers demand more efficiently by providing
the right product in the right quantity, at the right location, on the right time and in the right
condition. The major goals are: Waste Reduction, Time Compression, Flexible Response and
Unit Cost Reduction.

 Supply chain is more accurately viewed as a set of linked processes that take place in
the extraction of materials for transformation into products or perhaps services for
distribution to customers.
 It is used to meet customer demand for guaranteed delivery of high quality and low cost
with minimal lead time.
 To optimise pre and post production inventory levels.

RFID: In the field of textile and clothing, radio frequency identification (RFID), which is one
of the most promising technological innovations, is used in manufacturing, inventory control,
warehousing, distribution, logistics, automatic object tracking and supply chain management.

 This application includes wireless data capture and transaction processing. This
technology provides additional functionality & benefits for product authentication.
  RFID technologies may improve the potential benefits of supply chain management
through reduction of inventory losses, increase of the efficiency and speed of processes
and improvement of information accuracy.

Vendor Managed Inventory (VMI): Vendor Managed Inventory (VMI) is a

streamlined approach to inventory management and order fulfilment. VMI involves
collaboration between suppliers and their customers (e.g., distributor, retailer, OEM, or product
end user) which changes the traditional ordering process.

 The goal of VMI is to align business objectives and streamline supply chain operations
for both suppliers and their customers.
 The business value is a direct result of increased information flow:
 Improved Inventory turns
 Improved Service
 Increased Sales
 VMI requires a communication link—typically electronic data interchange (EDI) or the
Internet—that provides the supplier with the distributor sales and inventory data it
needs to plan inventory and place orders.
 The benefits of a vendor managed inventory system may include better inventory
accuracy, forecasting, and service.

Chatbots: Chatbot is a computer program which conducts a conversation via auditory or

textual method. This will help to understand what the viewers are looking for. There are several
benefits of integrating chatbot with a business website.

 Automating live chat customer service with chatbots not only benefits users but also
offers many advantages to businesses. Chatbots can reduce costs and give your business
a way to provide 24/7 customer service.

QUESTIONS RELATED TO CASE:

Ques 1) Are you impressed with the improvement in customer service, inventory
turnover, production cost variance and clerical expenses at Orient Crafts? Justify your
answer

• The improvement made by Orient crafts is impressive:

 • Customer service: Up to 72 percent of orders were now filled as requested when
compared to earlier 60 % it looks good

• Inventory turnover: The sales/ inventory was 6.2 and earlier this ratio was 4.2

• Production cost variance: The new information system has helped in controlling this
cost as accurate information was given whenever required by the organisation

• The clerical expenses had dropped by 2.8%

Q2.) How could custom manufacturing change the way the Orient crafts did the business?

• Custom manufacturing allows companies to continue to produce large quantities of

products, but they can manipulate their designs to produce a unique product for a
specific customer or client.

• Customer get the bonus of a unique custom product, but they are also able to benefit
from lower cost pf production.

• Custom manufacturing at orient crafts is quickly becoming the future of the

manufacturing world. It employs the most advanced and innovative design, as well as
management techniques.

• Custom manufacturing produces products that are of a higher quality because they are
built with amazing precision and accuracy.

• Instead of building just one part, manufacturers can easily make one product for one
customer, make a different unique product for another customer that will be
customizing to fit their specific needs.

Ques 3) Which activities areas were the focus of MIS, operational control, management
control or strategic planning at orient crafts? Do you agree with the emphasis?

The activities areas which were the focus of MIS:

1. Production costs – Strategic planning

2. Distribution costs – Management control

3. Clerical costs – Operational control

• The handling of production costs comes under the lens of operations and can be reduced
as the higher-level management are crucial with such type of decisions as they have the
 power to choose suppliers for the business and raw materials is one of the major factors
for reducing the price

• Whereas distribution costs come under the managers role and they have to come up
with the places where sales are not upto the mark and stop the sales at that side.

• Clerical costs come under operational control.

REFRENCES:
http://customerthink.com/crm-and-customer-experience-how-crm-helps-in-providing-
better-customer-relationships/

https://link.springer.com/article/10.1186/s40691-015-0034-9

https://searcherp.techtarget.com/definition/vendor-managed-inventory-VMI

https://www.datalliance.com/what-is-vmi

https://www.tukatech.com/3D-fashion-design-software/TUKA3D

https://www.fibre2fashion.com/industry-article/6910/product-data-management