Group Assignment: Post # 3 (Answer)

PART 1

Break-even Calculator

Break even analysis depends on the following variables:
The fixed production costs for a product.
The variable production costs for a product.
The product’s unit price.
The product expected unit sales.

Break even can help to find out when the cost (variable and fixed) will be covered at which sales volume. Also, we can use this tool to calculate how much profit we can get in different sales quantity.

For the Senior Management level, they can see how many they need to sell to cover all the cost and gain profit. Then they can use this for analysis with other date, like competitors’ sales and market share. After that they can set long-term strategic planning and company objective.

For the Middle Management level, they need check the profit periodically to achieve the company objective. If not they need to do some activities in order to achieve the goal. For example, they may do more promotion to increase the sales. And they can use the break-even calculator to recalculate the cost and profit.

HSBC Mortgage Planner

HSBC Mortgage Planner is a tool for the company to have the estimate result and some general mortgage information. It includes: HOW MUCH CAN I BORROW? WHAT WILL IT COST? HOW MUCH CAN I SAVE ON “DEPOST-LINKED MORETGAGE”?

For Senior Management, they can know how much they can borrow from bank by this tool, then they can arrange the amount to use in different company uses. For example, company development etc.. Also, they can estimate the cost for the mortgage.

For Middle Management level, they can give guideline to the account department how to help the company to borrow bank and how to use the money after borrowed.

PART 2

1. Accept/Enter Order : Sales Management – Sales Order

2. Order Acknowledgement : Sales Management – Sales Order (Posted)

3. Purchase Materials : Procurement Management – Purchaser Order
Material Requirement Planning (MRP) – Purchasing Plan

4. Receive Materials : Warehouse Management – Physical Inventory, incoming shipment

5. Production : Production Management – Process Plan
Material Requirement Planning (MRP) – Manufacturing plan

6. Packing : Production Management – Work Requirement, Quality Control Report

7. Shipping : Warehouse Management – Goods Transaction
Sales Management – Goods shipment

8. Invoicing and Collection : Sales Management – Sales Invoice
Financial Managment

PART 3

Marking Department, Sales Department, Warehouse, Purchase Department, Production Line, Transportation and Shipping and Account Department.

First of all, by using the ERP system, it can integrate all data and performance monitoring across multiple different department in company even in different locations
If that, all employees are using the most updated information, so it can avoid any mistake by using the old and incomplete date.
Which mean they will standardize for all data in the company and improving the operating performance. Also, it will minimize the response time to customers and suppliers.
All the staff can working more efficient and work much more easier.

ERP software can serve as a foundation or platform for decision support systems because it provided the extensive database. It integrating the date and the staff can use this system in different locations but it can keep the consistence, so the company can use the ERP as a foundation or platform.