CHAPTER 1
PROJECT OVERVIEW
1.1
Introduction
The global information economy has force business to rethink the dimensions
of what it means to be available and secure and where true long-term application
systems value exists. The increasing dependence on information technology means
that business cannot adapt to change unless its IT infrastructure can also adapt, faster
and at a lower cost and most importantly without impacting availability. So,
nowadays we saw that a new dimension of problem solution with an existing a
variety of information system, decision support system and database system and also
a wide usage of internet emerge all over the world.
The usage of this system is clearly change a style of handling individual
business and organization to become more easily, arrange and effectively. As a
result, we saw a highly demand on usage of computer system nowadays. Therefore,
computer companies base on development of software application (software house)
emerge so rapidly to fulfill user demand in outsourcing. As a result, it is clear that
people will not use manual system anymore because it is hard to retrieve
informations.
FELCRA Berhad was formed in 1966 with purpose to developed rural sector
through land consolidation and rehabilitation. It was a bold and successful move by
the federal government and was corporatized since September 1997 to proof
FELCRA Berhad as a trusted custodian of government development corporate body
steering its activities throughout the country till today aligned with national
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development aspiration. Lastly, FELCRA Berhad want to be a successful
conglomerate and create a dynamic sector of rural area aligned with balance strategic
operation between profitable orientation program and social obligation program.
FELCRA Berhad's objectives are:
To maximize land utilization through intensive land development.
To ensure that those in the rural sector have a reasonable income.
To improve the social and economic conditions of the settlers.
To give high return on development projects.
To improve level of productivity through efficient and latest
management of technology.
To widen consolidation and management technology overseas
(outside Malaysia).
To increase company “Economic Value Added”.
To-date, FELCRA Berhad has successfully developed some 240,000 hectares
or 592,800 acres, comprising 183,000 hectares of oil palm, 51,000 hectares of
rubber, 6,000 hectares of paddy and the rest comprising miscellaneous crops.
FELCRA Berhad today successfully manages the second largest hectare of plantation
crops in Malaysia by achieving yields which are above the national average.
In order to achieve the objectives, rehabilitation scheme and land
consolidation scheme are among programmes that have been carried out. In early
2008 FELCRA Berhad paving a new revitalize commitment with continues effort to
modernize its operation globally and developing more knowledge worker. Therefore,
utilizing the potential of ICT (Information and Communication Technology) as a tool
for increasing access to information, improving delivery of services, reaching out to
remote sites, and achieving mission and vision are vital and essential to the growth.
These bold moves to monitor their operation for a high quality harvesting output on
daily basis will be the main agenda. This is to achieve competitive edge and estate is
being managed at its best practices following:
Good basic agronomics practices.
Operation daily close transaction to facilitate efficient and effective
reporting and accurate information analysis for decision-making.
Implementation of KPI (Key Performance Indicators).
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FELCRA Berhad CEO (Chief Executive Officer) testimonial “Excellence
Without Barrier” has mention the main key driver in excellent estate management are
monitoring of estate operation high quality harvest on daily basis and implementation
of KPI application to simplified the operation, accurate information for decision
making and gauging performance for each service sector.
Therefore, Management Information System Department also want to move
forward with FELCRA Berhad mission and vision by aligning their activities
towards increase management efficiency and company operation with upgading
computer system to web base application which more demanded now.
This department activities are more on sending, updating and receiving
automatic informations and datas from state level through MPLS network which
supplied by Jaring Communication. As a result, FELCRA Berhad has successfully
close it account according to schedule every year. Beside that, they have successfully
develop web base support system by using ASP as development tool and either MS
Access or MySQL as database.
Base on huge demand from users and the important of keeping data in secure
place for easy retrieval and as one of Management Information System Department
staff, the author have decided to develop a system which call E-Vendor Evaluation
and Selection System to cater the problem during evaluation and selection vendor
which participate in any tender at FELCRA Berhad. Hopefully, this system will ease
in terms of information management. It also can speed up the process of collection
information because well organize infrastructure will be utilized totally by using the
new and modern technology.
1.2
Background of Problem
Currently, records of vendors who participate in all tenders at FELCRA
Berhad are keep among others included Procuments Department, Management
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Information System Department and so on. Information is stored manually by using
MS Words, MS Excel and other types of media and FELCRA Berhad especially
Management Information System Department is facing the problem to keeping them.
Manual processing of those datas will cause them not to be well organized. Thus
these datas are often unavailable when requested for, missing important information,
overlapping of information needed or are illegible. Paper records cannot be relied
unless proven truth. It is very difficult to synchronized fact and figure of these datas.
All member of tender evaluation have to thoroughly check these datas to ensure
validity.
1.3
Statement of The Problem
With the rapid growth of the Information Technology (IT), FELCRA Berhad
is determined to increase their productivity and quality of work especially regarding
to managing vendors information. However, FELCRA Berhad specifically
Management Information System Department knows that they are facing problem in
managing their huge and critical informations.
The main problem that have been identified by FELCRA Berhad’s
management are as follow :
i.
Currently, each division has its own ways of handling all information
that is normally consists of their related job scope and departments by
using spreadsheet and document to keep all necessary information.
Our tender evaluation team members do the same thing because they
think that this the best way. However, we found that this procedure
create more problem rather than solve a problem. Frequently, all
separate spreadsheets must tally betweens each other before it
combines to final spreadsheet. So, this is difficult to validate the latest
information from this information on time.
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ii.
A detail study of the vendor information and its data flow starting
from the day the project is advertised, participating potential vendors
during tender briefing, and until processing of tender award need to
conduct. Furthermore, it is important to identify critical project
information that is kept isolated by tender evaluation team members
involved in the process to be extracted and kept centrally in a single
database.
iii.
Confidentiality and privacy are significant issue in managing this
vendor information which participates in any tender. Confidentiality
may cause all tender evaluation team members to be alert and
carefully kept all those things in safe place and try the best not to
expose any unnecessary information to outsiders.
iv.
Insufficient time to prepare the vendor evaluation and assessment
report that need to pass up at many stages to obtain approval from
upper management level before proceed to next stages. This resulted
in releasing the report at last minute or they tend to race against time
just to meet dateline.
v.
There has no specific system that can manage those process because
they don’t have sustainable strategy in handling unstructured
information like vendor information in digital type in order to track
records and forecast suitable and potential vendors.
1.4
Project Objective
The main objective of this project has been determined as follows :
i.
To analyze and design a web base for vendor evaluation and selection
system module that enable sharing of confidential information from a
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single source (centralize) database accessible within the organization
by authorize personnel.
ii.
To develop a pilot/prototype system of a vendor evaluation and
selection system in order to ensure there are no hanky-panky which
means that the process of evaluate and selection of potential vendors
are more transparence. This is important to determine that all vendors
have fair and square chances during this process.
iii.
To formulate a guideline and process in searching and selection the
best vendor that will be awarded for any contract.
1.5
Scope
Scope is a visualization of capabilities, skills and a specific limitations that
can be done by system which will be developed to fulfill user need whereby all
inputs, process and output are recognize. It is also an added up to objective of
system. Belows are scopes for this system :
i.
To keep the data flow of vendors information starting from the time
projects being published in mass media until its awarded to final and
successful vendor, which involves tender briefing, time to time
clarification between organization and vendors, closing tender,
evaluation, shortlist, visiting to potential/shortlist vendors and finally
selection the one and best vendors for any project.
ii.
To develop a prototype of a web based system that shows vendors
information is being updated by tender evaluation team members into a
centralized database, and this information can be viewed, amend and
delete by the team members according to their functionality and access
rights after getting collective agreement by all members.
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iii.
To improve information accessibility, availability, reliability and to
avoid distortion of data regarding of vendors information which
consists of :
iv.
Retrieve critical data that is important for evaluation purposes
Produced the same reports and information regarding to vendors
Access this information real-time and online
The potential vendors will be selected base on this system and this
shortlisted vendors will be called for interview if require and final
benchmarking will be made to choose the best among the best from
tender evaluation team point of view.
v.
This module will guide management in selecting a best vendor. By
using this module it is much easier to make decision and it also prevent
any unnecessary dispute between decision makers especially to choose
or select a vendor.
1.6
Importance of Project
This project is very importance because its can help FELCRA Berhad in terms
of data management more effective and efficient and at the same time can increase
the level of service offer by Management Information System Department. Integrity
and validity of all data can be maintained because information has been stored is
accurate, reliable, accessible and available. As a result, all data can be used for
analysis at any time.
The proposed system, E-Vendor Evaluation and Selection System proves
benefit both to Management Information System Department and FELCRA Berhad
as it clients.
Looking from the organizational context, FELCRA Berhad through
Management Information System Department initiatives is able to broaden its
client’s network as the proposed web-based system will provide the easiest, fastest
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and most efficient saving, updating and retrieving information method. Throughout
this system, management of FELCRA Berhad are able to view the vendor
information at anytime, anyplace and therefore, its probability to avoid overlapping
of information regarding about vendor is low.
Furthermore, with the system’s online vendor information form, it confirms
the availability of the particular input and thus, enhances the level of trust and ease of
communication between management of FELCRA Berhad, Management Information
System Department and the clients. In addition, with the advance system function, it
reduces the probability of unfair vendor assessment and evaluation by FELCRA
Berhad. As a result, FELCRA Berhad will be able to depend it information as all
their data are reliable and acceptable.
On the other hand, with this proposed web-based system the tender
evaluation team members will have the control power at their fingertips. In seconds,
they can have access to multiple vendor information that matches their needs and
requirements without physically go to searching manually to get additional
information on the vendor.
Furthermore, the proposed Web-based E-Vendor Evaluation and Selection
System offer recent techniques for FELCRA Berhad decision maker to choose the
best vendor with easiest, convenient and fastest method. This method is used by
FELCRA Berhad in order to overcome difficulty in making decision to select the
best vendor and possibility to avoid outside interference which sometimes is trying to
influence members of selection team. Hence, the proposed system creates value both
to FELCRA Berhad and tender evaluation team members.
1.7
Chapter Summary
This chapter briefly explained to the readers about the overview of the
proposed E-Vendor Evaluation and Selection that includes project objectives, project
scope and project importance. The proposed system is developed to resolve the
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currents circumstances of Management Information System Department, FELCRA
Berhad identified earlier by the author. It is obvious that a clear project objective,
project scope and the importance of project will act as guideline towards developing
of this system.
The proposed system is duly aimed to enhance the evaluation and selection
potential vendor at FELCRA Berhad headquarters. As an electronic supporting tool,
the system is able to facilitate FELCRA Berhad to make a decision more precise,
accurate and faster than usual.
E-Vendor Evaluation and Selection System fully utilizes the web-based
model as Internet has been widely adapted in most of today’s businesses.
Consequently, convenient access environment is created among the authorize users
as they are allowed to search for related data at anytime, anywhere.
In general, the proposed E-Vendor Evaluation and Selection System will
serve as a strategic electronic platform to assist Management Information System
Department, FELCRA Berhad in enhancing their vendor information management
means instead of using the conventional way that primarily involves papers. The
management may seek for brief information on the list of potential vendor without
physically go to Procurement Department or Management Information System
Department.