Program & Batch: PGDM 1st Year (2016 – 2018) | Section- B

Term: II

Course Name: Management Information Systems

Name of the faculty: Dr. Poonam Garg

Topic/ Title : Study of Management Information System at Thaichi Street

Original or Revised Write-up: Original

Group Number: 11

Contact No. and email of Group Contact No: 8197980656

Coordinator: Email Id: secbgroup11@imt.ac.in
Sl. Roll No. Name
Aman Malasi – 8197980656
1 160101012
ft16amanmalasi@imt.ac.in
Tishay Dutta – 9163483839
2 160103146
mkt16tishaydutta@imt.ac.in
Shreeyansh Singhal – 7838786414
3 160101104
Group Members: ft16shreeyanshsinghal@imt.ac.in
Sanket Kakkad – 9013383993
4 160103063
mkt16kakkadsanketjitesh@imt.ac.in
Vidushi Singla – 9650952298
5 160101125
ft16vidushi@imt.ac.in
Karan Syal – 9041941868
6 160102042
fn16karansyal@imt.ac.in

1
Management Information System

Study of Management Information

System at ThaiChi Street

2
 Acknowledgement

We would like to express our gratitude to Professor Poonam Garg, our project guide, for her

constant support and guidance. Her observations and suggestions have helped yield valuable

insights that would have otherwise been unlikely.

This project would not have been possible without the help of thousands of analysts who have

studied the markets and shared their results, we sincerely thank them.

3
Table of Contents
1. Introduction .................................................................................................................. 5
2. Objective ....................................................................................................................... 5
3. Research Methodology .................................................................................................. 6
4. Enterprise Resource Planning ....................................................................................... 6
4.1. Advantages of ERP .................................................................................................... 7
4.1.1. Direct Advantages ..........................................................................................................7
4.1.1.1. Business Integration .......................................................................................................... 7
4.1.1.2. Flexibility .......................................................................................................................... 8
4.1.1.3. Better Analysis and Planning Capacity ............................................................................. 8
4.1.1.4. Enforces Best Practices in the Organization ..................................................................... 8
4.1.2. Indirect Advantages .......................................................................................................8
4.1.2.1. Improved Customer Goodwill .......................................................................................... 8
4.1.2.2. Better Corporate Image ..................................................................................................... 9
5. SAP ERP Systems.......................................................................................................... 9
6. Current Scenario at Thaichi Street ............................................................................. 10
7. AS-IS Processes at Thaichi Street ................................................................................ 13
7.1. Procurement Process ............................................................................................... 13
7.2. Sales Process: ........................................................................................................... 14
8. Recommendations ....................................................................................................... 19
8.1. Finance/Accounts Module Workflow ....................................................................... 20
8.2. Inventory/Material Management ............................................................................. 20
8.3. Sales, Order & Billing .............................................................................................. 21
9. References: .................................................................................................................. 23

4
 1. Introduction

Thaichi street was started in 2015 by two young foodies- Ankur Deorani and Amit Nainwal. This

no frills casual diner has made best of streets of Thailand, China, Malaysia and Indonesia now

accessible for all in Gurgaon.

It is a 36 cover casual diner that is open all days in the week from 12 noon to 11 pm. Soon after

launch Thaichi Street went on to become one of the most popular joints in the city. It trended in

social media with a high zomato rating. A few months into the operation it was already awarded

with the people's choice award by Gurgaon Foodie for 'Best Pan Asian Restaurant' in Gurgaon.

It left behind many great names including Thai Pavilion by Taj Vivanta as runners up. It was also

one of the top 5 nominee for Indian Food Freak awards.

2. Objective

Give
recommendations
on current as well
Find gaps in the as proposed
process, if any business plan

Study the current

process of Thaichi
Street

5
 3. Research Methodology

•Restaurant visits were conducted to get the primary data about the processes
being followed at Thaichi Street
Field Visit

•Interview of the owners were conducted to gather information to know about

the plan of expansion and also to know what difficulties are they facing
•We also took interviews of the personnel of different departments involved in
Interview the process to get in-depth knowledge of the processes currently being used

•Customer interviews were also carried out to know the satisfaction level from
the service provided by the restaurant
•We related the feedback provided by the customers to problems caused by
Feedback not having or having a poor Management Information System

4. Enterprise Resource Planning

Enterprise Resource Planning is a suite of business management software that allows an

organization to use a system of integrated applications to manage software that allows an

organization to manage its operations smoothly.

The data integration happens real-time and is then shared throughout the company’s functional

areas which in turn increases the efficiency of operations which helps the managers to take better

and more informed decisions.

The integration of different functions of business that ERP facilitates ranges from finance, human

resource planning to even sales and distribution. It facilitates businesses to transform the complex,

discrete and time consuming business processes with simple, integrated and real-time business

processes.

6
 4.1. Advantages of ERP

There are many benefits of implementing ERP systems in an organization.

We can classify these benefits under the two major heads namely direct and indirect:

Benefits of
implementing
ERP

Direct Indirect

Better Better Improved

Business Enforces Best
Flexibility Analysis and Corporate Customer
Integration practices
Planning Image Goodwill

4.1.1. Direct Advantages

4.1.1.1. Business Integration

The integration of business is the most beneficial advantage of using an ERP system. In case of

the conventional method, it takes a lot of time to communicate decisions between two concerned

departments. But, in case of ERP when one department takes a decision, like finance department

sets the budget for a particular project, then every concerned department like marketing, sales,

production gets all the relevant of information and prepares itself accordingly.

7
 4.1.1.2. Flexibility

Flexibility includes operating from different geographies. ERP implementation facilitates

flexibility to work in different languages with different sets of accounting principles. It also helps

to work across the globe without getting caught up in the complexity of the diverse conditions.

4.1.1.3. Better Analysis and Planning Capacity

ERP empowers the managers to take better, real-time and informed decisions. It helps in the

analysis and planning as it supports decision making with real time data which is integrated and

easily comprehensible from across departments. This results in better operations and improved

business processes.

4.1.1.4. Enforces Best Practices in the Organization

Implementing ERP gives us a mix of best practices which are being followed in the industry; we

can benefit from the world class business processes which are cost efficient as well as effective.

Best practices offer a plethora of benefits like supporting organizations’ needs locally along with

the set of best business processes in the industry.

4.1.2. Indirect Advantages

4.1.2.1. Improved Customer Goodwill

Implementing an ERP system in leads to a better reputation of the company among in the market.

Suppose that the raw material for a specific product have run out due to which the sales process

comes to a halt. Now, the shipment will take some time to arrive and refill the inventory. During

this time, a customer orders for the same product. This can lead to two situations depending on

whether ERP system is implemented in the organization or not. In case of no ERP system, it will

take huge amount of time for the staff to update concerned departments of the exhaustion of the

8
raw material and it will be quite difficult to provide precise information of the shipment arrival.

This in turn will result in poor reputation of the organization in the eyes of the customer when it

comes to reliability and service. On the other hand, when there is ERP system in place, all the

concerned departments will have access to latest available information and the staff facing the

customer will be able to answer all the questions dealing with shipping status, service issues

etcetera without having to check again and again with the other departments.

4.1.2.2. Better Corporate Image

For an organization, it is quite essential to have a positive corporate image for its survival and is

synonymous with long-term sustenance. With an improved and satisfying customer experience,

ERP helps an organization establish a strong corporate image in the industry.

5. SAP ERP Systems

SAP also known as Systems, Applications and Products in Data Processing is a software

corporation that makes ERP software known as SAP ERP for the smooth and hassle free

management of business processes and customer relations. It was established in 1972 in Germany

by a group of ex-IBM engineers. Its Enterprise Resource Planning (ERP) software is a part of the

SAP Business Suite that includes SAP CRM, SAP ERP, SAP SCM, SAP SRM and SAP PLM.

The ERP software made by the organization is one of the most popular in the world and almost all

the major organizations in the world use it. The current version of SAP ERP is 6.0 and the company

released the most recent Enhancement Package (EHP8) for the same in 2016.

The business processes under SAP ERP provides an organization with a number of modules:

Operational Modules like Sales & Distribution, Material Management, Production Planning,

Logistics Execution and Quality Management, Financial Modules and Human Capital

9
Management (Payroll, e-Recruiting). The most important benefit to a company using the SAP ERP

is that it has all its data from all the concerned departments collected and stored on a central

database which is easily accessible by the concerned employees.

Any ERP software, with SAP being no different, takes the shape of the organization it is used in.

An organization casts the ERP software according to the needs and requirements of the

organization. Since, SAP ERP provides a number of different modules to pick from, an

organization has the freedom to choose whichever module suits its requirement. For example, a

firm might require Finance and Operations modules but might not require a Human Resources and

Material one, so it can easily select and go ahead to buy only the module that it requires and not

the one which it does not or already has.

6. Current Scenario at Thaichi Street

We have already seen a number of benefits that an ERP system offers to an organization. So far it

has been established that an ERP system makes the business processes of on organization smoother

and less time consuming by integrating the different verticals of a firm. Essentially, ERP has now

become a crucial part of any organization and almost all established companies have it in place.

But what we have to realize that at times when a new establishment is being opened they aren’t

aware of the benefits of an ERP system in place. Also, they are looking to start from the basic,

trying to minimize cost as much as possible and not get into the hassles of technology from the

very beginning. Even though the times and the mindset is changing still some organizations have

this risk-averse attitude, especially when the business has nothing much to do with technology

(Food industry like restaurants etc.). Due to its absence, they (including our target organization)

10
face a number of issues which finally pushes them to adopt ERP, SAP to be precise. Some of the

major difficulties that current processes at Thaichi Street faces -

 Large number of different software for different processes – Different departments like

sales, order & billing, accounting, storage etc. use different software to record, track and

process information and some departments carry out data entry and processing manually.

For example, sales, order & billing staff use a different software (POS) to take and bill the

orders whereas the storage department use another software (Mainly MS Excel) to maintain

the inventory, therefore the process for taking and completing customer orders (especially

take away and home delivery orders) takes more time than required. Since Thaichi Street

is planning to branch out in Gurugram, these problems might become more frequent and

prominent. What ERP system could do for them is, it could integrate all of these systems

together on to a single central database. Hence, this database could prove to be a single

source of real-time and accurate data which would result in better decision making and

processing in lesser time.

 Accounting takes longer times – In Thaichi Street, accounting is being carried out

manually right now by entering data which results in a lot of time being wasted which

could have been put into more critical tasks. Without an ERP system, financial reporting

involves consolidation of financial information across large number of spreadsheets which

at times results in redundant data. With branching out this problem will be lot more

prominent. An ERP system would help tremendously in this regard by having all of the

financial information in a single database and eliminating the time-consuming manual data

entry.

11
 Customer service and Inventory management hassle– Inventory management is not as

efficient as it could be since sales, inventory and customer data are maintained on different

systems. Currently, Inventory management is being done manually by entering data on

spreadsheet at the beginning and end of the day and customer data and sales is maintained

on a POS server separately. Confirmation of the arrival of the next lot of raw material from

the vendor takes some time as extracting information from inventory management’s

separate system (MS excel) is cumbersome. At times it also results in raw material order

being placed twice or order not being placed at all. This at times results in the cancellation

of customer orders due to unavailability of raw material which in turn results in negative

customer reviews.

12
 7. AS-IS Processes at Thaichi Street

7.1. Procurement Process

Step 1: The food and beverage department issue requisition of raw material to the

storage/inventory department as per their requirements.

Step 2: The Inventory/Storage department check the availability of the raw material and issue the

required raw materials and update it in spreadsheet.

Step 3: After checking the availability of raw material if the reorder point/level is reached for a

particular raw material the inventory/storage department issue a purchase requisition to the

purchasing department.

Step 4: The purchasing department then creates a purchase order record for the same and forward

one copy to the accounts department and one copy to the supplier/vendor.

13
Step 5: The supplier on receiving the purchase order and verifying the same supplies the raw

material with a delivery invoice.

Step 6: The raw material is received by the inventory department which checks the raw material,

store it in the warehouse, updates the spreadsheet and after complete verification forward the

delivery invoice to the accounts department.

Step 7: The accounts department, after re-verifying the delivery invoice, makes payment to the

supplier/vendor and updates the financial spreadsheet.

7.2. Sales Process:

14
There are three ways of receiving an order as follows:

Dine in: In this, the customer walks into the restaurant, places an order and eats the food at the

restaurant.

15
Steps involved:

Step 1: The customer walks into the restaurant and a table is allotted to the customer and the same

is marked as engaged in the POS software.

Step 2: Order is placed by the customer. The order goes to the Food and Beverage department

(Kitchen) and also the same is updated in the POS software against the allotted table.

Step 3: Once the order is ready it is served to the customer. If the customer wants to order again,

Step 2 is repeated.

Step 4: Once entire order has been served to the customer the bill is generated using the POS

software against the allotted table and is presented to the customer.

Step 5: After verifying the bill the customer makes the payment, which is then updated(manually)

by the accounts department. The table’s engaged status is then changed to available.

Step 6: At the end of the day, before closing the restaurant, the inventory department updates the

raw material (manually using MS Excel) used in the entire day.

Take away: In this, the customer walks into the restaurant, places an order and requests to parcel

the order that he/she will pick up from the restaurant after some time (approx. 30-45 minutes)

depending on the order placed.

16
 The customer walks into The sale is registered
When the customer
the restaurant and and the record is
arrives to pick up its
places an order at the updated in the POS
order, it is handed over
Billing counter software

The order is updated in

Once the order is ready
the POS software
it is packed and the Inventory is updated at
against the customer
customer is intimated the end of the day
name and bill is
through a text message
generated

The order placed goes

The customer then to the Food and
makes the payment Beverage department
(Kitchen)

Steps involved:

Step 1: The customer walks into the restaurant and places an order at the Billing counter. The order

is updated in the POS software against the customer name and bill is generated. The customer then

makes the payment.

Step 2: The order placed goes to the Food and Beverage department (Kitchen).

Step 3: Once the order is ready it is packed and the customer is intimated through a text message.

Step 4: When the customer arrives to pick up its order, it is handed over.

Step 5: At the end of the day, before closing the restaurant, the inventory department updates the

raw material (manually using MS Excel) used in the entire day.

17
Home Delivery: In this, the customer makes an order either through phone or online (through apps

like Zomato, Food Panda etc.). Once the order is ready it is delivered to the address provided by

the customer.

All the
New information is
Customer fed into the
If the POS software
order is
made
through Once the order Once the
The customer call Order goes to is ready, it is order reaches Inventory is
places an
Existing the Food and billed against the customer updated at
Customer Beverage the customer the customer the end of
order through and is sent out
phone or Department makes the the day
for delivery
online apps payment
like Zomato, Once the
The order
Food Panda order is
appears on
etc. accepted, the
If the the app
order is platform, and restaurant
the gives an
made restaurant estimated
online decides to delivery time
accept or and finalizes
reject it it

Step 1: The customer makes a phone call to the restaurant or uses online platforms like Zomato,

Food Panda etc. to place an order.

Step 2: If the order is made through call, it is checked whether the customer information is already

present in the system or is it a new customer. If the customer is new, then all the information is fed

into the POS software.

If the order is made online then the order appears on the app platform, it is in the hands of the

restaurant to accept or reject the order. Once the order is accepted, the restaurant gives an estimated

delivery time of the order and finalizes it.

18
The payment for the same can be prepaid (Online) or postpaid (Cash on delivery). If the payment

is prepaid the sale is recorded before dispatching the order but in case of postpaid the sale is

recorded as mentioned in step 5.

Step 3: The order placed goes to the Food and Beverage department (Kitchen).

Step 4: Once the order is ready, the order is billed against the customer (new or existing) and is

sent out for delivery.

Step 5: Once the order reaches the customer the customer makes the payment (In case of cash on

delivery). The delivery guy comes back and the sale is updated in the POS software as well as by

the accounts department.

Step 6: At the end of the day, before closing the restaurant, the inventory department updates the

raw material (manually using MS Excel) used in the entire day.

8. Recommendations

Since Thaichi Street is planning to expand its operations in Gurgaon, they could implement the

following modules of SAP ERP to improve and standardize their business processes:

SAP ERP System

Inventory/
Sales, Order &
Material Finance/Accounts
Billing
Management

19
 8.1. Finance/Accounts Module Workflow

Work of Finance/Accounts department starts when Inventory/Material department receives an

order from the Food and Beverage department. Inventory Department will update it in the Purchase

module and subsequently Finance department will get the update about the same. Then it will

prepare a purchase order document.

Based on the raw material master code in Inventory/Material Management module of SAP it will

check for material inventory and will create a purchase order for the required quantity of raw

material. On receiving the order, it will create MIRO (Material In Receipt Out).

The accounts department is also responsible for the salary of the employees and since Thaichi

Street is planning to branch out, it would be beneficial for them to implement this module so

instead of maintaining the expenses of different branches at different servers and systems, they

could keep the entire thing integrated on a central database which would help them to analyze the

costs and expenses in a better manner and also while comparing the profitability of different

branches.

As every step of this module will be integrated into different concerned departments, it will get

real time data which will get processed faster and easily.

8.2. Inventory/Material Management

Based on the purchase order, the Material Master will be created in SAP in Inventory/Material

management module of it. For creating Material Master every vendor either has a unique code or

it gets generated for the new vendors. Every product will have a Transaction (T) code; then based

on requirement of the Food and beverage department like vegetables, prawns, fishes, etc. the

material code will be generated. This material master will be used throughout the process of

20
purchase till the item is received and stocked. This material master will be like a barcode for the

raw material and it will be created for every order that Thaichi Street would place and the inventory

will get updated automatically on receiving the order. It could be used by the Food and beverage

department as well as Sales and Order & billing department to get the real time update on the data

(raw material availability) which would help to reduce customer order cancellations and result in

faster processing.

8.3. Sales, Order & Billing

Currently there is a single restaurant being operated therefore, the order and billing is carried out

through a POS software on a single system. But, since they are planning to branch out across

Gurugram, implementing ERP would help them in order and billing.

In present case when we have an unpredictable high demand for a particular order, the raw material

sometimes goes out of stock, which results in the cancellation of orders. Further, they manually

update the inventory spreadsheet at the end of the day. Now, when the branching out of the

restaurant takes place they will have different storage facilities for different branches so if a

particular raw material exhausts in branch ‘A’, the inventory would automatically get updated

(since we’ve already implemented the inventory/material management module) and the raw

material can be transferred from the storage facility of other branches, provided they have the

required stock with them, which in turn will help them to better manage the unpredictable high

demand.

Further, in case of multiple branches, we suggest it is necessary to have this module of ERP to

maintain a common collective database for the daily, weekly and monthly sales record as a whole.

This will help them analyze which branch is doing maximum business, which month of the year

21
records high sales, which day of the week is busiest (in terms of sales) which in turn will help

analyze the dining, take away and home delivery patterns to help manage costs by staffing up only

when and where you most need it.

22
 9. References:

http://go.sap.com/product/enterprise-management/erp.html

https://www.microsoft.com/en-us/dynamics/what-is-erp.aspx

http://www.netsuite.com/portal/resource/articles/erp/what-is-erp.shtml

https://www.zomato.com/ncr/thaichi-street-sector-50-gurgaon

https://www.foodpanda.in/restaurant/m2hj/thaichi-street-gurgaon

Eldon Y.Li: Perceived importance of information system success factors: A meta-

analysis of group differences, College of Business, California Polytechnic State University,

San Luis Obispo, CA 93407, USA, Information and Management 32(1997) 15-28

K. Park, Department of Business Administration, Hanyang University, Ansan,

Gyung-Gi-Do, 425-791, Korea and

A. Kusiak, Department of Mechanical and Industrial Engineering, 3131 Seamans

Centre, University of Iowa, Iowa City, IA 52242-1527, USA: Enterprise resource

planning (ERP) operations support system for maintaining process integration, International

Journal of Production Research, Vol. 43 No. 19, 1 October 2005, 3959-3982

R. Addo-Tenkorang and P. Helo: Enterprise Resource Planning (ERP): A Review

Literature Report, Proceedings of the World Congress on Engineering and Computer Science

2011 Vol II WCECS 2011, October 19-21, 2011, San Francisco, USA

23