[Exploring the Information Systems in an Organization]

PROTON HOLDINGS BERHAD

Group Three Project Three Content

1. Task requirement 2. Objective 3. Corporate profile 4. Company organization history 5. Problems that the IS tries to solve 6. Whole IS in the organization 7. Integration with other IS system in the organization 8. Specific IS system exploration 9. Benefit the IS had bring to the organization 10. Reflection

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Group 3 Project 3 - Management Information Technology (MTD1013)

[Exploring the Information Systems in an Organization]

PROTON HOLDINGS BERHAD

1. Task requirement Group Project 3: Exploring the Information Systems in an Organization

Description: The MIT is better studied in the actual environment. From here, students are able to relate and integrate the knowledge that you have learn so far and see the MIT in first hand encounter. There are many concept and term that you have came across in our class. Now, in order to better understand it, you are required to explore those organization that you choose from and study in details the IS function in it.

Task: You are required to study the IS in any organization, government or private, and come up with a details report on it. In your report, you need to describe the overall IS that runs in that particular organization. Then, specifically, focus down to only one IS i.e. ERP, or CRM, AIS etc, and describe in details of its:

Objective Problems that the IS tries to solve Functions Integration with other IS system in the organization Benefit the IS had bring to the organization (i.e. ROI - Return On Investment, productivity etc) Acquisition process Implementation

Lastly, relate back what you have learn from your case study to the overall objective of your MIT subject. Your report need to be not more than 20 pages long, including appendix and references. Presentation: Prepare a presentation on what you have discovered and present it to the classroom using the format above. Your presentation should take between 30-40 minutes.

Group 3 Project 3 - Management Information Technology (MTD1013)

[Exploring the Information Systems in an Organization]

PROTON HOLDINGS BERHAD

2. Objective Based on the task requirement, the MIT subject requires the students to do some research on the Information System (IS) that have been used in the real life organization. Students have to explore the overall IS system which have been implemented by the organization that have been chosen by the students. Since organization implemented a bunch of IS systems to operate their daily routine, the students have to study on one of the specific system used by the organization so that they can have a full understanding towards the organization operation throughout the production process. So this task is mainly focusing on achieving the result based on the categories below: A. Management Allowing the students to be able to
1. Deal and experience the corporate bureaucracy during the process of getting

through the organization 2. Co-operate on the delegation of the task 3. Completing the task with time consuming B. Knowledge Allowing the students to be able to 1. 2.
3.

Relate and experience the theories that have been learned in the class with Compare and contrast the real need of the IS system in the real world Experience the actual IS fields in the organization and see the potential in

the actual process and procedure that happen in the real life organization

upcoming opportunity and job

Group 3 Project 3 - Management Information Technology (MTD1013)

[Exploring the Information Systems in an Organization] 3. Corporate profile and location

PROTON HOLDINGS BERHAD

Based on the task, this project have chose that Proton Holdings Berhad as the organization which will be studied and explore. It has been the largest automotive brand in Southeast Asia. For decades, Proton has strived to distinguish PROTON from others by reflecting the quality and persevering in perfecting the brand and product design, in order to become a global automotive player. Below is the well-known Proton Holdings Berhad assorted logo.

However since the evolvement of the Proton Holdings Berhad, they have change their logo throughout the years. Below are the transformation of Proton logo.

Group 3 Project 3 - Management Information Technology (MTD1013)

[Exploring the Information Systems in an Organization]

PROTON HOLDINGS BERHAD

Protons factory is situated in Industrial Area HICOM , Batu Tiga, Shah Alam which had opened on 9 Julai 1985 and launched by the Prime Minister YAB Tun. Dr. Mahathir bin Mohamad. After 20 years of operation, Proton has launched another factory at Tanjung Malim, Perak which has been launched by Dato Seri Abdullah Ahmad Badawi. On 2 Ogos 2008, Proton has celebrated a 3 million cars production.

Group 3 Project 3 - Management Information Technology (MTD1013)

[Exploring the Information Systems in an Organization]

PROTON HOLDINGS BERHAD

4. Company organization history Perusahan Otomobil Nasional Berhad (PROTON) was incorporated in May 7, 1983 to manufacture, assemble and sell motor vehicles and related products, including accessories, spare parts and other components. PROTON produced Malaysia's first car, the Proton Saga, commercially launched on July 9, 1985 by then Malaysian Prime Minister, Dato' Seri Mahathir Mohamed, who had originally conceived the idea of a Malaysian car.

Proton Saga Launching on 9 Julai 1985

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Its model line-up includes the Waja, Satria GTi, Wira, Iswara, Arena, Perdana V6 and Juara. The range of 1.3, 1.5, 1.6, 1.8 and 2.0 litre engines satisfies a wide spectrum of customers both locally and abroad. PROTON's main plant in Shah Alam, with an area of 923 900 sq metres, was originally designed for a capacity of 80 000 units per year. In 1997, capacity increased to 230 000 units per year with the construction of the Medium Volume Factory, which is next to the Main Plant. Today, the Shah Alam factory is capable of producing 240 000 vehicles per year. Besides being shareholders, Mitsubishi Corporation and Mitsubishi Motors Corporation are also PROTON's technical assistance partner and component supplier. PROTON has a total of 11 subsidiaries and 11 associate companies, which are involved in manufacturing, research and development, sales and service activities. December 30, 1996, marked the launch of the Proton Putra, a two-door coupe, as well the production of our millionth car from the Shah Alam plant. PROTON made a major step in upgrading its engineering capabilities with the acquisition of Lotus Group International Limited, a British automotive engineering company and manufacturer of luxury sports cars in October 1996. Together, PROTON and Lotus offer large scale manufacturing capabilities with world-class engineering expertise. PROTON cars are making their mark internationally as competitive and innovative automobiles. They are now being exported to 50 countries including the highly competitive United Kingdom and continental European markets. With concerted and unswerving commitment from customers, business associates, shareholders, government agencies, and employees, PROTON is realising its goal of being an internationally successful Malaysian automotive manufacturer. It is achieving this by being customer oriented and by producing competitively priced and innovative products. Thus, it is contributing to Malaysia's attainment of Vision 2020.

Group 3 Project 3 - Management Information Technology (MTD1013)

[Exploring the Information Systems in an Organization]

PROTON HOLDINGS BERHAD

With solid base built up over the last 10 years, Malaysia's car manufacturing industry is progressing vigorously.

5. Problems that the IS tries to solve In order to gain information about the systems that Proton used, a meeting with Senior Information Manager of Proton Holding Berhad, Mr. Azahari Othman has been held on 1st of April 2011 at Proton Casting Plant situated in Glenmarie, Shah Alam. Before we go further, Proton have 3 branches to operate the productivity. One is situated in Hicom, Shah Alam which is the biggest Proton factory and act as the main head of all operation involve in Proton Holdings Berhad. The second one, is located at Glenmarie, Shah Alam which is focusing more on casting plant and have a main Business IT division that operate for the whole Proton corporation. The last one is situated in Tanjung Malim which is called Proton City because it in house major production process of Proton productivity. So, according to Mr Azahari, Proton Holding Berhad used SAP system or System Application Programming to connect and operate any operation involve in the company. Proton used this system because it acts as one of the business suite solution that compromise and integrate with all other system either in management or production area. Overall about SAP system will be explained further on part 6. Since SAP is the main system used in Proton, it helps the company in four major ways. The four major ways is a below: 1. Financial 2. Human Capital Management 3. Operation 4. Corporate Services

Group 3 Project 3 - Management Information Technology (MTD1013)

[Exploring the Information Systems in an Organization]

PROTON HOLDINGS BERHAD

6. Whole IS in the organization Since Proton Holdings Berhad is the most establish company in Malaysia, they have used and own also the most establish IS systems to be operate successfully throughout the evolvement of the company within this 25 years. Proton has been used SAP IS systems in whole developing and production process. Before we look closer to SAP system, Proton has its own policy towards the system used. Based on the interviewee, in order to have the system to operate, the program must be in MySQL language. Even though Proton is a big production company, they still choose to use MySQL language because it is an open source program and it is cheaper compared to Oracle which is licensed and expensive. Another things about Proton is that previously most of the Proton system involve UNIX operation system but now they are moving forward in using the Microsoft operation system. Since Proton is a large corporation, they also have three data center to support the capacity of the data and each act as backup data center for the other. This data center is situated in Shah Alam, Tanjung Malim and OUE. This data center has 1 high-end server that integrates with 7 servers. Previously, Proton only has 3 servers to operate but due to high demand in the production process they bought another 4 server. Through all this 25 years of evolvement, Proton has used 3 systems which are INTRA, .net and SAP. SAP in a new implemented system in Proton which have been currently operate for 3 to 4 years. This system is used in order to replace the INTRA and .net systems that have been used for about 5 to 6 years and not sufficient enough to meet the latest technology. Besides this big operational system, Proton allows each division in the company to have their own system but still they have to integrate it with the SAP system. This is due to the needs and requirements involve in each division. Any new created project will have their own division to run. However, Proton still provide or allow some system to be created internally by the IS division. In order to do this, the proposal has to be submitted to the Procurement Council so

Group 3 Project 3 - Management Information Technology (MTD1013)

[Exploring the Information Systems in an Organization]

PROTON HOLDINGS BERHAD

that they have their budget either to outsourcing it or made internally. Members of the council are include the board of directors and senior IT management. Now let us look at the SAP system used by Proton Holdings Berhad. SAP or System Application Programming is a German global software corporation that provides enterprise software applications and support to businesses of all sizes globally. Headquartered in Walldorf, Germany, with regional offices around the world, SAP is the largest enterprise software company in the world (as of 2009). It is the world-leading provider of business solutions & operates in Kuala Lumpur since 1992. It is also the largest software company in Europe and the fourth largest globally. The company's best known products are its SAP Enterprise Resource Planning (SAP ERP) and SAP Business Objects software. Besides Proton, Petronas Company also use this system to manage their productivity and this German company has over 500 clients that use SAP system in Malaysia. As for this project we are focusing in SAP Enterprise Resource Planning (SAP ERP) only. Proton uses this SAP ERP because it manages 4 major components such as: Money Material Manufacturing Machines

Despite these components, Proton chooses SAP ERP that function towards below criteria: Finance Material Quality Maintainence and HR Production

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So based on Proton Holdings Berhad demands above, they have been used several SAP system such as below: 1. Customer Relationship Management (CRM) 2. Enterprise Resource Planning (ERP) 3. Product Lifecycle Management (PLM) 4. Supply Chain Management (SCM) 5. Supplier Relationship Management (SRM)

7. Integration with other IS system in the organization

Based on the picture above, we can see the integration within the IS system owned by Proton. Since Proton mainly used the SAP system. From here, we can see that the main SAP system which is situated in Shah Alam has to be integrate the result or data wih the SAP from Casting
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[Exploring the Information Systems in an Organization]

PROTON HOLDINGS BERHAD

Plant department which situated at Glenmarie, Shah Alam and also combine with the SAP system at Tanjung Malim. This structure shows to us how the integration happens in the company using SAP PI. The yellow boxes are the systems that operate to produce the specific focus.

8. Specific IS system exploration Now based on the project, we are going to focus on SAP PI which means that we are focusing on SAP Process Integration system. SAP using PI, allow the system to Enabling Application-to-Application Processes Enabling Business-to-Business Processes Business Process Management Enabling Enterprise Services

According to Proton, They used this SAP PI to integrate throughout the process and the system in all Proton devision. (See the diagram below)

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Purpose With the usage type PI, Proton can integrate applications from one or multiple systems. SAP differentiates between the following areas: Cross-system application integration, which does not focus on individual end-user actions. Applications can be company-internal, cross-company, SAP or non-SAP applications. The SAP NetWeaver usage type PI incorporates all functions that were previously a part of SAP Exchange Infrastructure (SAP XI). The modeling, administration, and automation of user-driven processes within SAP systems. From a technical viewpoint, a core function of the runtime is that you can save the state of a previously-modeled process and call it up at a later stage, if the process is to be continued as a result of a particular action or event. Since the execution of processes can be useful when integrating applications across system boundaries (without user actions), relevant
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PROTON HOLDINGS BERHAD

functions within SAP NetWeaver are reused for this purpose. Together, the functions referred to here are known as Business Process Management.

However, the diagram below, will show how Proton have the integration within the SAP PI system. So based on this diagram, Proton can make sure the flow of data and the production that happen in the whole system.

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[Exploring the Information Systems in an Organization]

PROTON HOLDINGS BERHAD

9. Benefit the IS had bring to the organization According to Mr. Azahari, the Senior Manager IT in Proton Holdings Berhad, SAP is a proven process and has been used internally or world-wide. Besides that it has a shorter time of development for either a ready-made system and customizes system because some of the system is ready made by the German company. He also said that SAP system have never been corrupted in the entire runtime process compare to other supporting system that used to be corrupted due to the lack of maintaining. SAP system is also used because of its high effectiveness in reporting tools. Previously Proton used Crystal Report Tools to generate the report but this tool only generates report but dont have any input data area process. Meanwhile, the SAP system provides the input data area and at the same time generates the report. It is also have the best support system and provide the support and backup all the time for the Proton. Besides the main SAP system , Proton also use SAP ERP. The advantage that Proton choose SAP ERP is because:

SAP is a powerful tool that integrate multiple business processes and functions into SAP reduces lack of integration across business line which will raise the risk of SAP provides different approach than their competitors in market. Each piece

one comprehensive system

duplication, mistakes and inconsistency data

(module like FI, MM, SD) can operate independently from all other software. And the key benefit of using this approach is that companies can implement individual module that fits the company needs, and have the flexibility to add other module later when their business grows.

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PROTON HOLDINGS BERHAD

10. Reflection After completing the task on the Proton Holdings Berhad, we have learned and obtained such valuable experienced in managing the Information Technology. As far as we know, we are able to face have the difficulties in facing the bureaucracy when trying to deal the meeting and the appointment with the Senior Manager IT in the company. The hardness is to get through the right person and have his permission to do the task. Another things is that we have to wait for about one hour before the interview session started. Another thing that we learned through this task is that we are able to see the real information technology management involve in each company. We are also now realized how important this division in developing the company. In Proton, we are very surprised to see that the whole floor of Casting Plant Factory in Glenmarie is focusing and working on Enterprise Resource Planning process. So by the look of the size of the building and the numbers of staff that some are having discussion (meeting in small room) and others are busy focusing on the computer in front of them, we come to realized that this division is more important as we ever thought. This experienced gives us inspiration to move on to this ongoing field.

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11. Appendixes Our visit to Proton Casting Plant at Glenmarie Shah Alam

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The Slides Presentation

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