Information Systems in Small and Medium Enterprise of Wood Products Manufacturing

Topics: Manufacturing, Decision theory, Decision support system Pages: 15 (5275 words) Published: June 7, 2013
The Role of Information Systems in Small and Medium Enterprise of Wood Products Manufacturing

A Report Submitted in Partial Fulfillment of the Requirements for the Degree of Bachelor of Science in Wood Products Processing In
The Faculty of Forestry

Abstract

In a modern economy, the key influence to the competitiveness of small and medium sized enterprises (SME) is their ability to utilize information systems (IS). The characteristic of SMEs vary, but in Canada, SMEs are organizations that have less than 250 employees and with annual revenues under 5 million (Canadian Industry Statistics, 2011). However, in recent years, the growth of SMEs in Canada has decreased and a large percentage of companies are reporting lost profits. The following paper aims to introduce the integration of IS into SME of the wood products manufacturing industry sector. It will further elaborate on the benefits of IS and the drivers and barriers for the adoption of IS implementation. Although some SME’s try to adopt IS to support their business many lack the financial resource to make a drastic investment. Therefore, this paper will introduce a method of developing an IS system that fully supports business operations with low investment cost. There are many benefits when IS are developed internally, but the value from this resource requires planning and management. These benefits include low initial investment capital and an information system that is specifically tailored to support SMEs business activities. Hence, this thesis will provide a guideline based on existing literature.

Table of Contents
Abstracti
Acknowledgementii
Table of Figures1
Introduction1
SME in the Wood Products Manufacturing Sector1
Types of Information Systems4
Adoption of Information Systems within SMEs5
Drivers and Barriers to Information Systems6
Owners and Managers7
Employees7
Finance7
Suppliers and Customers7
Competitors8
External Development of IS8
Internal Development of IS9
Access Database from Microsoft9
Excel Based Bill of Materials Program10
Capabilities of the Customize Bill of Materials Program12
Limitation to the Bill of Materials Programs12
Cost Comparison of External and Internal Source Information System12
Recommendation13
Conclusion14
Works Cited16

Table of Figures

Figure 1: SME Contribution of GDP From The Wood Product Manufacturing Sector2
Figure 2: Types Information System5
Figure 3: Example of Access Data Base10
Figure 4: Bill of Materials Program Process Flow11
Figure 5: Cost Comparison of Operation Information Systems13

Introduction
Small and medium sized enterprises play an integral role towards economic growth and development of a country. Moreover, it is recognized globally that SMEs are the engines to revitalization and development of national economy for many developed or developing countries. However, in focus of the Wood Products Manufacturing sector in Canada, SMEs show relative slow economic growth in the past years. What SMEs in the Wood Products Manufacturing sector is lacking is an effective Information System to allow SME’s to become an organized entity, achieve their full performance and growth potentials, and make strategic decisions based on information collected from information systems. Information is not simply data collection. Information is knowledge for taking and making effective action. Through this paper, a method of developing IS internally is described—the use of Microsoft Access and Excel based VBA. Although there are a number of advantages of developing IS internally, there are also limitations as well. This paper critically examines the importance of information systems and highlights the inherent problems in various software systems. It argues principally that the antecedents of SME Information System have not been considered. More importantly, this paper will provide key notes of what is an effective...

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