MULUNGUSHI UNIVERSITY

Pursing the frontiers of knowledge

CENTRE FOR ICT EDUCATION

ICT171 FUNDAMENTALS OF INFORMATION SYSTEMS

Test 1 Sample Solution
Section A
Answer all questions in this section. Tick the correct answer (2 marks for each correct answer)

A communication processor that makes connections between telecommunications circuits in a

1.
network so a message can reach its intended destination is called a:

switch

router

hub

gateway

A database is a collection of information stored in an organized form in a computer and is

2.
composed of one or more files/tables. Which of the following is NOT an advantage of a database:

controlling redundancy

enforcing data integrity

efficient query processing

printing database reports

A network that links two or more computers within the same town is known as:
3.

local area network (LAN)

metropolitan area network (MAN)

wide area network (WAN)

mess enabled network (MEN)

A firm can survive if it successfully develops strategies to address competitive forces that operate in
4.
the firm's relevant environment. How can a firm best use information technology to provide
competitive advantage?

forming alliances and joint ventures

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 advertising on Internet

locking in customers and suppliers

reducing switching costs

This business function mixes the "4Ps" of product, price, place, and promotion.
5.

accounting

manufacturing

marketing

human resources

The type of manufacturing system that helps managers determine the human, machine, and
6.
material resources needed to manufacture a product is:

material requirements planning (MRP)

manufacturing resource planning (MRP II)

enterprise resource planning (ERP)

SAP™

Which of the following is NOT considered a functional information system?

7.

manufacturing

information systems

finance

service

Which type of information systems generate an organization's income statement and balance
8.
sheets?

general ledger systems

payroll systems

order-entry systems

inventory control systems

Which is NOT an example of a marketing information system?

9.

databases to improve customer service

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 point of sale systems

segmentation systems

accounts receivable systems

A system that links people, systems, and business units located around the world through the use
10.
of telecommunications is a(n):

global information systems

personal information systems

enterprise-wide systems

work-group information systems

Section B
Answer THREE questions from this section. Write in the space provided (extra paper has also been
provided in case you need it)

Question 1. (20 marks)

China Mulungushi Textile (CMT) based in Kabwe has just been sold to new investor and the new investor
intends to continue making the famous Mulungushi chitenge textile material and will start making suits for
the Southern African Community. The new investor would like to implement an information system for
decision making and invest in EDI technology.

a) Give examples of sources of data that might be used by the CMT (6 marks)

Sources of data may be customers, suppliers, other business units, departments, competitors,
government.

b) Outline the stages by which this data might become information useful in decision making for CMT
Management (6 marks).

Stages are collection, classification, sorting, summarisation, storage, retrieval, dissemination.

c) Explain the concept of ‘EDI’. Describe how EDI might enable CMT to cut costs in the context of
ordering supplies (8 marks)

Electronic Data Interchange (EDI) involves the electronic transmission of business transaction data over
telecommunications links between computers of trading partners. CMT can be connected to suppliers
through extranet and when they need supplies the system can send re-orders to the supplier and supplier
can supply just in time for manufacturing and thus save cost in terms of stocks.

Question 2. (20 marks)

The University of Zambia would like to improve their cash flow and be up to date in terms of production of
financial statements and therefore decided to invest in an Enterprise Resource Planning (ERP) called
ORACLE financials. The ERP will initially be applied in transaction processing of finance and accounting

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records. It is planned that later it will be used for payroll, human resource management and student
records.

a) Define the following types of information systems and discuss how they will assist the University
Management:
i) Transaction Processing systems (TPS).
ii) Enterprise Resource Planning (ERP).
iii) Human Resource and Payroll Processing.
( 6 marks)

A Transaction Processing System (TPS) is an information system that supports transaction

processing or information systems that process data resulting from the occurrence of business
transactions.

ERP - Create cross-functional information systems by re-engineering or combining and

integrating two or more TPS to support an organisation’s operational business processes

b) Give at least THREE reasons why TPS can be described as the ‘data lifeline’ of a company. ( 6
marks)

Failure to capture transaction results in customer dissatisfaction, lost profits, penalties,

lawsuits.
TP data is the source info for for other higher order systems, DSS, MIS etc and so supports
important decision making at those levels.
TP data also provides info on customers/clients etc and so is a source of marketing and
other externally oriented information

c) List the SIX steps required to process a transaction. Distinguish between Online Transaction
Processing (OLTP) and Online Analytical Processing (OLAP) and indicate by example the
circumstances under which one might be used. ( 8 marks)

Steps data entry, transaction processing, database maintenance, document and report
generation, inquiry and query processing

Holds current data Holds historical data

Stores detailed data Stores detailed and summarized data
Data is dynamic Data is largely static
Repetitive processing Adhoc, unstructured and heuristic processing
High level of transaction throughput Medium to low level of transaction throughput

Predictable pattern of usage Unpredictable pattern of usage

Transaction driven Analysis driven
Application-oriented Subject-oriented
Supports day-to-day decisions Supports strategic decisions
Serves large number of operational Serves low number of managerial users
users

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Question 3. (20 marks)

Shonga Steel a manufacturing company based in Lusaka specializes in manufacturing door frames and
window frames as well as office partition using aluminium and glass. As part of its expansion and in order
to remain competitive during the economic crunch, Shonga Steel has embarked on investment into new
and more efficient production line for door frames and in CAD/ CAM technology.

a) Define CAD, CAE, and CAM and describe how these are related. ( 7 marks)

CAD –to include design, store and update of industrial drawings on-screen. Modelling 3-D
images: resizing, reorienting, etc, use of colour, rotation movement. Use of design database to
use previous designs, enhance, update, etc. (2 marks)

CAE –to analyse designs and add engineering data, eg product specs for actual manufacture +
info on design of tools, moulds etc and control of robots, for example. (2 marks)

CAM –computer-aided techniques for planning, operation and control of production, including
work standards, capacity planning, etc. (2 marks)

CAD is the input stage to CAE, CAD/CAE then support the use of CAM. (1 mark)
7 marks

b) Outline the way in which information systems can support the manufacturing and production
function of a business, giving illustrations of systems at THREE organizational levels. ( 6 marks)

IS support logistics and material management, eg use EDI to place an order, scanners for data input,
robots for distribution of materials

IS can support manufacturing and design through CAD/CAE/CAM/CIM

Systems at three organizational levels

ORGANIZATIONAL
SYSTEM DESCRIPTION LEVEL

MACHINE CONTROL CONTROL ACTIONS OF EQUIPMENT OPERATIONAL

COMPUTER-AIDED-
DESIGN DESIGN NEW PRODUCTS KNOWLEDGE
DECIDE NUMBER, SCHEDULE OF
PRODUCTION PLANNING PRODUCTS MANAGEMENT
FACILITIES LOCATION DECIDE WHERE TO LOCATE FACILITIES STRATEGIC

c) Manufacturing of door frames produces stock while sales depletes stock. Outline the way in
which Point-of-Sale (POS) systems can drive the manufacturing process of door frames. ( 7
marks)

POS terminals are specialized input devices used mainly by retailers and are equipped with a
scanner that reads the bar-coded sales tag. POS can be used by the firm to determine the re-

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 order level at all Shoonga Steel retail outlets and thus inform the number of door frames needed
to be manufactured. POS increase the speed of data entry and reduce the errors

Question 4. (20 marks)

A new company called “Bill Promoters Plc” has just been launched in Zambia with branches in all the 9
provincial centres including Kabwe. The company specializes in using bill boards to assist organizations
and companies to advertise their commodities. The company now wants to invest in ICT and use
information system to support marketing management activities.

a) Describe with examples FIVE various ways in which information system can support different
aspects of the marketing management function. (7 marks)

1. Pricing of products and services. Use online analytical processing to set prices as they
respond to customers and competitors
2. Salesperson productivity increased by sales-force automation where a sales person
moves with laptop to access the enterprise information while in the field and thus close
deals
3. Product-customer profitability analysis (contribution of products, services and customers)
4. Sales analysis and trends, if sales figure increase or reduce management can take
advantage or redress the situation
5. New product planning

b) Bill Promoters Plc has over 100 corporate clients to whom they provide services. Outline how
information system can be used improve customer service to these corporate clients. (6 marks)

c) Define ‘telemarketing’ and how it is supported by IT, and describe its capabilities and limitations.
(7 marks)
Telemarketing is a process that uses telecommunication and information systems to execute a
marketing program for customers who wants to shop from their homes. It can be done through
the telephone calls, TV adverts. Major activities: advertising, order processing, customer service,
sales support and account management. All these are supported by IT.

Benefits include:
• Generating sales leads and personalized contact with customers
• Gathering and providing information about sales, customers buy at their convenience
• Improving cash flows, reduce operating costs, number of sales personnel, travel costs
• Enhancing customer service
• Message on hold used to advertise products and services