Era of globalization


In today's era of globalization, many goods are produced in complicated patterns of subcontracting that stretch across the world. It is happing on a huge scale, and in many industries- both in manufacturing and in service. Subcontracting supply chains can be quite difficult to understand. The garment industry is one that is particularly mobile, and its supply chains have become truly global and complicated.

Since 1970, the RMG (Ready Made Garments) industry started developing in Bangladesh primarily as export- oriented industries. For the last three decades the main source of foreign exchange of Bangladesh has been the key export division. At present this industry provides employments 3 million workers to generate about $5 billion worth of products each year by exporting garments.

Key Facts:

The global economy is now controlled by the transfer of production where firms of developed countries swing their attention to developing countries. Reducing costs and increasing output are the main causes for this disposition; by discovering the simplest way to undercharge is to transferring the production to the third world helping the expansion of the economy as well the speed up the economy of the developed nations. The cause of this transfer can be clarified by the salary structure in the garments industry, all over the world. Apparel labor charge per hour in USA is 10.12 but it is only 0.30 in Bangladesh. The poor wages structure chart of Third world countries given below explains the profit levels of the retailer's.

Existing Management system of Garments Industries:

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Readymade garment is a labor intensive industry and relatively simple technology compared to the other high-tech industries. Garments manufacturing units are like tailor's shop , getting order from the foreign buyers (RETAILR) importing the raw material such as ; fabrics from the foreign suppliers or sometimes buy from the local markets as per order, then manufacture garments and supply those to the buyers .

The value chain in the textile and garments industry stretches from the raw material production through yarn spinning, fabric weaving, dyeing and finishing, garment sewing, trimming, labeling ,packaging and delivery. The various element s I this supply chain are geographically dispersed and involving a number of different partners. Particularly in those developing countries, that do not have the supporting industries, the shift towards a full package service can represent a considerable challenge, instead being responsible for only one part of the value chain suppliers requires to co-ordinate and run several stages, which demands a high level of integration, and the necessary management system and Information technologies to make it possible. Figure 2.(2): display the present value chain.

The Basic Supply Chain Management System:

Appears that manufacturers of garments industries mainly faces " order lead time " problem and this problem occurred in the supply chain due to inefficient management .time consumed in the first two steps in the supply chain is the basic reason for increasing lead time. It is possible to reduce a major portion of order lead time by improving the implementing by combination of the Supply Chain Management and IS.


My business plan is to make a sustainable e-commerce based brokerage company for the garments industry, aiming to more efficient in terms of adaption with the old one and maximizing profit of the company as well as the labors.

To reduce the time and enhance the service and quality my proposal is to change the traditional way of doing business in to transform the present strategy to digitally optimized system. The future web based brokerage company will based on following strategy.

  • Supply Chain Management Systems (SCM).
  • Transaction Processing System (TPS).
  • Communication System.
  • Business functions.
  • Security Systems .

  1. Supply chain Management Systems helps us to do the following things given below.
    • An automatic flow of information between firm ad suppliers to optimizing the production and delivery.
    • Close Linkage of activities involved in buying, making, moving a product.
    • Network of organization and business process for production and distribution of product.
    • Decide when and what to produce ,store and move
    • Rapidly communicate orders.
    • Track status of orders.
    • Check and monitor inventory.
    • Reduce inventory, transportation, warehousing costs.
    • Track shipment.
    • Plan production based on actual customer demand.
    • Rapidly communicate changes in product design.

    Future Supply Chain Management System:

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    By developing a Virtual web based brokerage company most of the problems that currently garments industries are facing can be solved. With the explosion of the internet, over one third of the small medium business are transacted over the website. Which means every garments industries should grab this opportunity now to become familiar with ecommerce, in order to be ready for the arrival of the Information Superhighway. The investment that e-brokerage Company will make in setting up an e-commerce website will pay off in the future.

    My Business plan is to develop the web site e-categorized Business - to- Business serviced based. Even though it is a virtual company there should a physical office site at most suitable geographic area, where the buyer and the company employee can see the real sample or the supplier and do the final deal. Buying and selling goods and services electronically.

    Executing the entire firm's business process with Internet technology.

    Making private and secure business network based on Internet technology.

    Faster Calculation and paperwork.

    Analysis of customer purchase patterns and preference.

    More efficient business service.

    Instant global distribution of information.

    Breaking the traditional way to trade.

    Benefiting the low wage labors.

    In the figure 4: the first glimpse of the operation network is shown.

  2. Transaction Processing system.(TPS)
  3. The basic transaction processing systems activities will be:

    • Basic business systems that serve the organizations operational level.
    • Input: Transactions, Events.
    • Process: sorting listing merging, updating.
    • Output: Detailed reports, listing, summaries.
    • User: Operations personal, supervisors.

  4. Communications Systems.
  5. Above diagram shows how user (Retailer, supplier, and manufacturing company) are communicating with each others to keep them self updated using internet based VOIP/SIP gateway and Internet fax service. The communication system of the company shall be more cost effective and in-expensive. All the communication systems will be mostly web based and IP based.

    Cost of VOIP calls : Using Vonage systems call's are free when calling to Vonage number using broadband internet and Vonage device to regular phone(PSTN) line.

    Line activation fee: £9.99

    Equipment fee: Free - £29.99

    Equipment delivery fee: £8.99

    Monthly costs: £6.99

    Broad band Internet cost: £25.00 per month speed up 20 Mb speed. (Source Virgin Media).

    Fax Service: Net 2 Fax. Free of charge.

    How the Networks Works.

    Most of the foreign buyer/ retailers are European, or North American. So my plan is set up the physical office in UK. Which is in the middle of the both buyer, supplier and the production companies. The website will be hosted from the UK based secure data based web hosting service.

    Every single user must be registered with company name, details and correspondent address. Registered users will be rated according to their business profile and feedback. Retailers when they want to place a order they will ask for others e.g. supplier, manufacturing to bid for an auction as appropriate. Such as there will option of what kind of material, quantity or accessories buyer are looking for, or if it is for fabrics based, woolen, or stitching based there will be a option to find the knitted, woven supplier's and knitting quote .All the information of the companies will be secured and un disclosed over the site .Only the site owner company will have the access to the database of the registered clients details. After the successful auction site owner Company will send an e-mail or start to negotiate to the winner company to send their sample and the proposed or agrees rate to the company's address. After receiving the sample and the quotation company send's the sample to the buyer's office for approval and setting up a meeting with the brokerage company, to place the final order.

    Once the order is placed the manufacturing company gets the accessories and the raw material from the suppliers and head to production.

  6. Major Business Functions.
  7. Major Business Function of the Brokerage Company:

    The major functioning departments of the brokerage company will be:

    Sales and marketing.

    • Help Identify Customer.
    • Develop products and services.
    • Promote products and services.
    • Sell products and service.
    • Providing ongoing customer supports.
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    Sales and marketing departments will be in charge of the identifying the potential customer. Giving them the knowledge of the samples an helping them with finding rated suppliers according to the company's performance and the feedback. Promoting the companies brand and the products. Processing order's and keeping the track of it, price analysis determining prices for products and services, sales forecasting for one or many.

    Manufacturing and production :

    • Planning ,development , maintenance of the production facilities.
    • Acquisition, Storage, availability of materials.
    • Scheduling materials, facilities, labor.
    • Controlling the flow of production.
    • Planning development, production of products and services.

    Manufacturing and production departments controls the actions of the machines and the equipments, planning a production , deciding when and how many products should be produced, locating facilities deciding where to locating the new facilities.

    Finance and Accounting :

    • Managing firm's financial assets: cash, stocks, bond.etc.
    • Manage Capitalization of firm and finding new financial assets.
    • Maintain and manage financial records.

    Major duties of accounts and finance departments is to keep track of companies receivable money or money owed by others firms, making budgets of the firm and preparing a short term of budgets, profit planning for the one year or long term.

    Human Resource :

    • Indentifying the potential employees.
    • Maintaining employees records.
    • Keeping tracks of the employees skills , jobs performance and training.
    • Support planning for employee compensation and carrier development.

    It is an important to give employees proper training and develop them , keeping records of the employee training and performance Doing the compensation analysis and monitoring wages , salaries and benefits, planning a long term skilled labor force . Figure 6: shows how the major functions are actively operational.

  8. Security Systems.
  9. The proposed web site will have the most reliable, advance and secured platform. The connectivity systems will be encrypted from clients ends to the host. E-mail, database and all the transaction will go through a secured service tunnel which will be encrypted. For every transaction payment methods are digitally.

The security systems are embedded in:

  • Connectivity.
  • Clients Database.
  • E-mail's.
  • E-payments.

Security :

Conclusion :

With the explosion of the internet, over one third of the small businesses are transformed in to web based organization. This means every non e-commerce based firm's should grab this opportunity to become familiar with the e-commerce , in order to be ready for the arrival of the information superhighway. The investment that these firm's will make for setting up an e-commerce website will pay off in the future. The web site will rapidly attract significant number of customers all around the world to try the online trading . Web promotions will help to encourage repeat use of the site by demonstrating its unique benefits. Garments Industry will gain technological competitive advantages over competitors and at the same saving commissions payable to the buying houses.


(Decision Support System):

Decision Support System is a knowledge system with some specific discipline and a movement that help's to make a decision which has a great impact on the company's profit by definition it strengthen some kind of choice in progress. Information is a major part of the present society, which has big impact to our faster communication, our interest, relevant information to some ones personal life, work place and its surroundings. It manages to force the managements, inventory and some inflation polices. It warns management team about the crisis that could happen in the future in the company.

The decision support systems that I am using is decision explorer, developed by Banxia Software ( version 3.3.0 Demonstration. This product is free and accessible for only 30days . This product is download able from the home site .The following things which are given below are the basic support it does.

The basic things that a Decision Support System does are:

  • Helps Building up concepts in to a model.
  • It does qualitative Information.
  • It helps qualitative Information to get the straight idea before moving to any quantification data.
  • A tool that supports methods giving structure to unstructured data.
  • Fast and flexible means of capturing and manipulating qualitative data.
  • Helps to focus groups and project teams.
  • Helps groups to use time more productively exploring ideas and options.
  • Improves interview and meeting quality.
  • Helps to develop a frame work facilities better decision making.

Current Users:

Decision Explorer are being used by a diverse range of companies and organizations, which includes British Airways, British Energy, British Telecommunications Plc, Royal Mail , Post Office ,NHS Provider Support unit ( Northern Ireland ) , Ministry of home affairs of Singapore , renowned airlines company KLM Royal Dutch Airlines, United Nations Office and the banking giant Lloyds TSB Group plc.

Besides these commercial organizations there are some academic sectors that are currently using service of this software. Name of the academic institutions are the followings:

Bourne mouth University, Brunel University, City University of Hong Kong, East London business School, European business Management School, university of Manchester and so on.

This software can also be used by any individual or any sort of organization for doing any sort of strategic management or analyze any qualitative information to a structure. Decision explorer is like a visual thing tool, because it builds a visual ( graphical) representation of an individuals or groups ideas and the relationships between them.

As a student I could use this software for the every expect of my life, writing my case studies for an assignments, academic career or what so ever, people around the globe using this software as part of their life whether if it is about their personal life or about any important decision or helping any simple concepts into a idea or model.

Purpose of Using This Software:

Since this software is developed for building database of relationship, it also can be used for:

  • Strategy Development.
  • Capturing Ideas.
  • Conflict of resolution or analysis.
  • Competitor analysis.
  • Interview Analysis.
  • For personal projection mapping.
  • System dynamic modeling.
  • Report/ Documentation structuring.
  • Risk identification.
  • Focusing creativity in meeting.
  • Stake holder analysis.
  • Structured brainstorming.
  • Scenario Building.
  • Problem Solving.
  • Qualitative data analysis.
  • Influence diagramming.
  • Identifying distance competencies.

Feature's of this Software:

Considering the flexibility of this software it allows to support mapping techniques for using by both single user to group work ( as Group Decision Support System- GDSS) . Potential solutions can be found after building up a model on basis up on a key factor. Analyzing the maps this software provides the facilities given below.

  • It shows influences of a concept.
  • Finding concepts that have great influence.
  • Showing groups whose concepts are closely linked to each other.
  • It provides a model by reducing a maintaining link.
  • Showing concepts with many links.
  • By showing a hierarchy in a model.
  • By locating loops of influence.
  • The most influenced outcomes by the concept.
  • Focusing on an issue by reducing the model and the links.
  • On-line help info:

    The frequently asked question section is quite friendly like other FAQ sections. The online page contains general questions , getting the best from the decision explorer and technical question, which are related , when operating the software for first time or when you are new at using it.

    General Questions:

    General questions are regarding the basic training course about the software. These module helps to you get training from the "which button to press" to a "power user", facilitating workshop, seamless use of this software via the command line. What kind OS system does it supports, if is works on non 9 X systems.

    Quality expectation of this software is not that much highly pronounced, it seemed like getting the best is not the developer has thought of this software unlike the technical questions.

    User Interface:

    The GUI of the decision explorer, looks like the other regular software non strategic decision making tools .The outlook of the software is non professional, the icon of the main program is not captioned, background looks un friendly , especially when some is new to this software. It has a funny idea to making some idea in to concepts. Once you are done with inputting the data, it is really quite hard t find the compiler or the mapping icon, to execute the process.

    Since I have assigned the task of selecting and purchasing this product, it is quite hard to judge this product. There is some flexibility in this product as well as complexity. But I think that there must be some kind of friendly short term training to go through for understanding and mastering of this product.

    Case Studies: 1

    Information System in Restaurant:

    The knowledge and information revolution began at the turn of the twentieth century and has gradually accelerated. Case study research continues to be and essential form of the worlds present situation. Since Information systems are dominating the worlds every size and every category of business, it also reflects on the restaurant business. This case study explores the relationships among user participation, influence, conflict, and resolution in the development of the managements of information systems. The three main category of Information systems are:

    • Strategic-level System.
    • Management -level system.
    • Operational-level system.

    Strategic -level system:

    Strategic -level systems helps senior managers with long range planning needed to meet changes in the external and internal business environment. There are also different information needs for the various business functions : sales and marketing , production ,finance , accounting and human resource .Information systems are deployed in to the restaurant business as a strategic planning system.

    Providing communications and computing environment that serves the organizations strategic level, which is implementing information systems to their business operation systems, helping to manage to make a budget of the profit, and planning. Profits forecasting and personal training.

    Management -level System:

    Management -level systems are designed to serve the monitoring, controlling, decision-making and administrative activities of organizations.

    Operational-level systems:

    It supports operational manager's needs for current, accurate and easily accessible information primarily used t keep track of the elementary activities and transactions of the organization.


    When a waiter takes a order and then enter it online via terminals it displays to the appropriate terminals and the precise bill are generated. This is because an inventory management system is installed, when a order is placed the inventory systems checks the inventory and it helps the cooks to make a quick decision to send back a message to the sender "out of stock" if is out of stock. When a waiter make an entry to the terminal a data base system keeps the track of the terminals orders are being sent until the final total is done, and it also creates a database of the menu, which can be used later to profit analysis and making the new menu according to the sales of the restaurant.

    At the end of the week when a weekly sales report is generated, the report checks the actual price of the product cost and deducts it from the sales report to get the profit amount and helps managers to come up with a new set of menus of more profits.

    Logging the void reports in to the systems helps the managers to get information about the reason , if it was voided for lack of stocks or the service was poor, so the management level think to order more stocks or improve the service quality and give them more training about the sales system.

    The MIS system would be more complete if the Transaction Processing System (TPS) is implemented. A diagram is given below for a better solution.

    Source: Class Room Handbook.

    Case Study -2.

    Security Loopholes.

    The case study shows that the company SystemX has a security hole among the seven branches through out the country. The nature of the company is finance oriented, which deals with cheque , draft numbers , marketing plans , and more confidential data over the net . The company depends on the internet systems in unsecured way for their regular transaction and communication. The network was open to the internet and the hackers as well without the anti-virus software there is always a potential threat of spreading virus, Trojan or phishing program .Having email access without the default password can be more fatal for the firm. Without the security consultancy and without more man power it is impossible to fix every computer systems, and it may cost fortune. The network systems of the system X is decentralized, since they have more than one network sharing with each others. After analyzing the case there is some problems and solutions are found to solve the company's problem.


    Internetworking is linking of separate networks, each of which remains its own identity , into an interconnected network. The backbone may be connected to the networks of other branches outside the firm, to the internet, to the networks of public telecommunication service provider or to other public networks. The linking of separate networks , each of which retains its own identity , into an interconnected network, is called internetworking.

    Security Budget:

    When a company do their yearly budgets for different sectors and they should have a extra budget for the information system to ensure that, the company's confidential data or information stays safe and protected all the time .It Very important to have Information Systems budgets all the time.

    Case Study-3:

    Overhauling the Information Systems Environment:

    Case Study 3 shows that the nature of the business of Multibase Company limited is manufacturing yarn, paper-pulp and cement, which are located across the country in different locations. A computer based information system (CBIS) is installed at each unit, process weekly and monthly reports for the senior executives to analyze the planning and control to make a strategic plan for the present competitive environment. Since the manufacturing units are located in different city it is time consuming to get the report generated by the CBIS system on time. To get the solutions of these problem, company must find the basic problems, which are given below:

    • Managerial Problem.
    • Organization Problem.
    • Technology Problem.

    To find the proper solution company must develop the MIS system from decentralize to centralized, and adding the TPS system to their report generation system. A simple diagram shows how to overcome from this problem.

    The diagram show that how reports are being analyzed and processed. When user's from the each units inputs data to the centralized MIS systems it creates a database and process the data according to the appropriate departments. When a weekly or monthly reports are generated the reports shows detail of each branch or units production quantity , cost and helps to do the planning and control.

    The Chief Information Officers (CIO) requirements was to process all the reports from each units and build a database and creating a graph of the entire productions and sales report for better business planning and organizing the MIS systems for future.

    Case Study -4

    System Failure!

    Bank of New York introduced new software on 20th November 1985, to register all the banks financial transaction and lost over $ 5 millions of dollars due to the software's error.

    When a new software is developed it has go through a lot of testing for fixing the errors, and the user who will be operating the software must be well trained and pass through as a certified user of that specific software, and must be able have the in-depth knowledge of that product .

    The developer and the user must collaborate with each others before launching a software. If the testing was done alone with the users training the $ 5 millions of dollars loss might not happen.

    The failure of the communications systems of ambulance service of London, cost 30 people's lives due to software problem. Communication systems software basically based on database systems , if it is not up-to-date all the time , it is not possible to keep the track of the right data . Or the data base operator were not well trained for operate the software properly. It could the reason for delaying the service or finding the right address or the medical history of the patients and caused deaths of the peoples.

    Before launching the software proper test were not done or the operator s were not trained, to optimize the service according to the ambulances services management's team.

    Internet Service provider America On-Line is a giant service provider in USA, back in 7th of August 1996 affected 16 million users for 19 hours benefiting from their services due to installing a new software , where the experts was hopeful about the system that it would able to handle the disaster . The software must be developed to perform the installation and providing the service at the same time.

    This disaster happened because the developer were depended on the new software that it would perform the way it suppose to be, and having no back-up systems ready during the installation time , or re-routing the traffic to another server .


    Since the development of the digital systems are relying on to this blindly, without thinking about the consequence of mal-function of the systems. Digital systems are blessing and curse at the same time, since these things are developed by the human being. As a result there is always a consequence of loosing lives or money. When some new technology is introduced a proper testing, monitoring, performance analyzing and right training needs to given to the users . So it is simple that to minimizing the damages to human life or what so -ever , digital service is not totally dependable .

    Interview /Report Guide

    Today I am interviewing a candidate for my companies MIS officer, pursuing in depth information around a topic, following -up a certain responds to questionnaires, and further investigate to their responses'. Before the interview I would like to make some preparations for the interview.

    Preparation for interview:

    • Choosing a setting with some less distraction, avoiding lights or noises, making sure of, that the interviewee is feeling comfortable, and helping to make them feel comfortable like home or their own place.
    • Giving them the proper explanation of the purpose of the interview.
    • Addressing them that who and how their answer will be analyzed, any comments to be used as quotes will be done with their written permission.
    • Indicating the approximate time the interview can be held for.
    • Telling them if there is any further information they want to ask, where they do it.
    • Before getting into the interview ask them if they have any questions to ask.
    • Taking permission from the interviewee if I can take any note's of their answer.

    Types of Interviews:

    Since this is an interview for the position for MIS officer, there will be some informal, conversational interview , general interviewing approach which provides more focus collecting more information about the general areas which allows the freedom and adaptability in getting information from the interviewee. To compare and analyzing the faster interview open-ended interview can be facilitate.

    During the interview I must follow the sequence of questions such as, getting the response involving in the interview as soon as possible. Asking some facts which could be used as approach of warming up for controversial matters, such as some present circumstance, past or future. At last allowing them to response if they want to add something else to their impression interview.

    Conducting An Interview:

    • A tape recorder can be used during the interview.
    • Asking question on at a time.
    • Remaining neutral as possible.
    • Encouraging responses with nodding head.
    • To be careful while taking the notes.
    • Providing the transition between major topics.
    • Not losing the control of the interviewing.

    Interview Day:

    Interview day was held on the Friday 2nd of October 2009, at 11.00 am venue at Starbucks Coffee Shop, Farringdon, (Opposite of the Farringdon Station, at right hand side).Post Code -EC1M-6BX.

    At 10.54am candidate was present with the formal dress code, we did the formal introduction and after some informal conversation and a coffee we were ready for interview. Before starting the interview I explained the candidature about the purpose of the interview, approx mate time for conducting the interview time.


    Name: Dan Wilson.

    Employer: Soft net.

    Employer Address: Downing Street. Hammer Street.

    Work Phone Number: 020-733-434-92.

    Job Title: Trainee MIS Officer.

    Number of years on current job: 13 months.

    Computer Experience: 11 years.

    After reviewing the resume, we formally started to conduct final interview procedure.

    Concluding the interview:

    After 35 minutes of interviewing the candidate, I thanked him for attending the interview, spending time, and sharing information with me.

    A firm handshake and handing over my business card to the candidature, letting him know that I will get in touch with him if anymore information is needed or knowing him the result. Showing him the door and good luck wish concluded my interview.