Role Of Accounting Information System

1065 Words3 Pages

1) The Roles of Accounting Information System for value chains. An Accounting Information System (AIS) can be defined as software that helps accountants to collect data and process it to create information ((Bagranoff, Simkin and Norman 2010) Therefore, AIS has several roles. A main role is to integrate all information system for effective management within a company, connecting different departments with relevant information. Another role is to assist the organisation to make decisions by preparing different reports and evaluating information. It also provides a company with a control and safeguard internal information ((Kim and Solomon 2006). AIS can greatly contribute to managing Value Chain of any manufacturing company and resulting in …show more content…

AIS covers many parts of the value chain and implying both to Supply chain management system, Customer relationship management system and Enterprise Resource planning system (www.youtube.com/watch?v=7wL6x1BSlw8, 2016) The Supply chain management system manages raw material, manage suppliers, schedule human resources while Customer relationship management system is in support to identify customer needs and wants, customer facing system etc. Enterprise Resource system is part of AIS integrating human resources and support services in a company. (Chen, I. J. 2001) At the same time a balance score card intergraded with Accounting Information System allows the companies to collect rightfull information, analyse the data and make evidence based decisions. (Marr, 2010). By adopting the value chain into a manufacturing company, it will gain efficiency, effectiveness, reduce the product cost and improve continuously. For example, Toyota has implemented Toyota Product System (TPS) integrated information system with the business process which allowed the company to be more efficiency, effectiveness and reduce inventory cost. (Toyota …show more content…

Toyota has implemented many different systems such as performance monitoring software, the Just in time (JIT) inventory system, electronic quality control system, communication system and information system thought out their value chain which enable to make correct decision during the manufacturing process. They have identified that having large inventories of spares cost them extensive capital and they have implemented the Just in time (JIT) inventory system which advices the suppliers the exact spares that the product line required and provides a time frame. Toyota adopted continuous learning and embraces change allowing their staff to research and innovation (Toyota

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