1. UNIVERSITY OF SCIENCE AND TECHNOLOGY
CHITTAGONG (USTC)
USE OF MIS IN ISPAHANI GROUP IN
CONTEXT OF VEHICLE MANAGEMENT
SUBMITTED TO
MOHAMMAD IMRAN
ASSISTANT PROFESSOR
FBA, USTC
SUBMITTED BY
MD. REZA TANVIR SHAHREAR
Roll No.: 486, Reg. No.: 461, MIS Group,
Batch-15, MBA (Exe.) for Engineers
August, 2016

2. LETTER OF SUBMISSION
August 20, 2016
Mohammad Imran
Assistant Professor
Faculty of Business Administration (FBA)
University of Science & Technology Chittagong (USTC)
Subject: Submission of Report on Research Project on “Use of MIS in Ispahani Group
in context of Vehicle Management”.
Dear Sir,
I am writing this report regarding the topic “Use of MIS in Ispahani Group in context
of Vehicle Management”. I started my research project on June 16, 2016 and completed
on August 18, 2016 and I feel great pleasure in submitting this report. I think the research
project program is very useful, informative and realistic method to gather practical
experience about a company’s activities. I have tried my level best to include all the
relevant information.
I, therefore, pray and hope that you would be kind enough to accept my report and oblige
thereby.
Sincerely yours,
_________________________________
(Md. Reza Tanvir Shahrear)
Roll No.: 486, Reg. No.: 461
MIS Major, Batch-15
MBA (Executive) for Engineers
USTC
I

3. ACKNOWLEDGEMENT
First of all, I am immensely grateful to Almighty Allah to help me successfully complete
my thesis paper. I would like to thank my parents, my wife and my boss for moral
support in everything. In addition I want to take this opportunity to thank all faculty
members classmates and friends in this master’s program.
Especially I would like to express my appreciation to my supervisor Mohammad Imran
for his support and kind cooperation. It would have been impossible for me to complete
the study successfully without his relentless guidance, instructions and advice.
I also express my gratitude to the officials of M.M Ispahani Limited, Chittagong,
Bangladesh for their kind cooperation.
_________________________________
(Md. Reza Tanvir Shahrear)
Roll No.: 486, Reg. No.: 461
MIS Major, Batch-15
MBA (Executive) for Engineers
USTC
II

4. TABLE OF CONTENTS
Abstract
Page No.
1
CHAPTER-1 Introduction
1.1 Overview of the Research Project 2
1.2 Background of the Research Project 2
1.3 Objectives of the Research Project 3
1.4 Methodology of the Research Project 3
1.4.1 Data Analysis 4
1.5 Limitations of the Research 4
CHAPTER-2 An Overview Ispahani Group
2.1 History 5
2.2 Existing Business Units of Ispahani Group 6
2.2.1 Tea Garden in Bangladesh 6
2.2.2 Tea Trade in Bangladesh 7
2.2.3 Cotton & Textiles 8
2.2.4 ICT 9
2.2.5 Packaging 10
2.2.6 Foods 10
2.2.7 Hospitality & Leisure 11
2.2.8 Real-estate 11
2.2.9 Trading 12
2.2.10 Agro 12
III

5. CHAPTER-3 Literature Review
3.1 Vehicle Management Information System (VMIS) 13
3.2 Approach for building a Vehicle Management Information System 13
3.3 Information System 13
3.4 Value of Information 14
3.5 Functions of Information System 15
3.6 Business Process 16
3.6.1 Business Process Management 17
3.7 Enterprise Application 19
3.7.1 Enterprise System 20
3.7.2 Supply Chain Management System 21
3.7.3 Customer Relationship Management Systems 21
3.7.4 Knowledge Management Systems 21
3.8 The MIS and Decision Support System 22
3.9 Expected Benefits VMIS 22
CHAPTER-4 Analysis & Findings
4.1 Introduction of VMIS in Ispahani group 24
4.2 Requirement Analysis 24
4.3 Specific VMIS Inputs 25
4.3.1 Vehicle Identification Information 25
4.3.2 Yearly Documentation &Taxation data 26
4.3.3 Fuel intake & expanse data 26
4.3.4 Maintenance expanse data 27
4.3.5 Vehicle deployment and usage data 28
4.3.6 Vehicle related HR data 28
4.4 Specific VMIS Outputs 28
4.5 Oracle & SQL based system 29
IV

6. 4.6 The System Architecture 30
4.7 Enabling Connectivity towards the User 31
4.8 Findings 31
4.8.1 Fuel Efficiency & reduction of operating cost 32
4.8.2 Improvement in fleet maintenance costs 32
4.8.3 Frequency of Vehicle Breakdowns 32
4.8.4 Order to Payment Cycle 32
CHAPTER-5 Recommendation and Conclusion
5.1 Recommendation 33
5.2 Conclusion 34
References 35
Appendix 36
List of Figures
Figure 1 Functions of Information System 15
Figure 2 Typical business processes for each of the functional areas of business 17
Figure 3 The Order Fulfillment Process 18
Figure 4 Architecture of Enterprise Application 19
Figure 5 How Enterprise System Works 20
Figure 6 Screen shot of Vehicle Information entry interface 25
Figure 7 Yearly documentation info entry interface 26
Figure 8 Fuel consumption info entry interface 26
Figure 9 Maintenance expanse info entry interface 27
Figure 10 The System Architecture of VMIS at Ispahani 30
List of Table
Table 1 Auditor’s Observation & Recommendation 2
Table 2 Detail of Interviewees 4
V

7. ABSTRACT
Transport and logistics are both key components of a successful economy. Governments
worldwide seek to increase their competitiveness through new or replacement of
infrastructure. The transport and logistics sector plays a major role in the world economy and
is a significant contributor at both the national and local level in any country. This sector
underpins the economy, enabling the efficient movement of goods, services and people. The
increase in the concomitant management requirements of vehicle fleet operations has
The traditional approach of vehicle management in an FMCG company which owns large
number of different types of vehicle is basically file of ledger book based record keeping and
manipulating that various types of data regarding vehicle usage, fuel consumption expenses,
maintenance expenses & yearly government fees, taxes etc. This file based system is rather
inefficient & the whole procedure highly depends on human effort & information exchange
among all the stakeholders is very difficult and slow.
To address the above issues an information system may be developed for these kind of
business organization using Oracle & SQL. At Ispahani group, we developed an integrated
Vehicle Information Management System (VIMS) to keep up all kind of vehicle related
usage and expanses which gives us overall control and reduction of operating costs.
The main purpose of this dissertation was therefore to establish that the use of information
technology is feasible in transport industries, explain possible obstacles and also any major
advantages of its implementation.
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8. INTRODUCTION
1.1 Overview of the Research Project
Research Project is very important in any academic and professional course. It plays a vital
role in the successful practical application of our gathered knowledge from during the
executive MBA course in this Institution. Proper practical application will help to achieve
its objectives of learning any things. Practice of knowledge is seemed to vary from
organization to organization. It is widely believed that unplanned practices are mainly
responsible for failure of most of achieving the objectives. Hence, this “Research Project”
will be effective to unearth the invaluable points required to be addressed while operating a
large number of mixed vehicle fleet in an FMCG company like ISPAHANI. The title of my
Research Project is “Use of MIS in Ispahani group in Context of Vehicle Management”.
1.2 Background of the Research Project
In 2012 and internal audit team of Ispahani group found some anomalies in vehicle usage &
expenses related issues while they are searching the cause of increased cost of selling and
distribution of finished goods of the company & they have provided and action plan as
follows:
General Observations: Recommendations:
• There is no Comprehensive
database of vehicles in Ispahani
group.
• Current Log Books have very
limited use.
• At present there is no deployment
status report of Pool/Distribution
vehicles.
• There are no comparative
analyses of repair works.
• Implement a Comprehensive vehicle register
to obtain a clear view.
• Using the Log Book in more effective way for
obtaining detailed usage information of the
vehicles.
• Preparation of Pool/Distribution Vehicle's
deployment status report to manage vehicles
in a better and cost effective way.
• A comparative analysis of repair and
maintenance works should be undertaken,
which will be helpful to control unnecessary
repairs.
Table 1: Auditors Observation & Recommendations
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9. To comply the above findings & recommendation Ispahani management decided to develop
an integrated Vehicle Information Management System which means to use MIS in context
of Vehicle Management.
1.3 Objectives of the Research Project
The name of the research project is “Use of MIS in Ispahani group in Context of Vehicle
Management”. The objective of this study is to examine the necessity Information System
based arrangement to use and cost effectively manage a large number of mixed vehicle fleet
of any FMCG company and to establish the fact that information system can help any
management to operate it’s vehicle fleet effectively and economically to achieve the
organizational goals.
1.4 Methodology of the Research Project
In this research, a qualitative technique was conducted in order to collect information. In
terms of the data source, these data can be collected either form primary of secondary
sources. Generally the primary data can be collected from the people of organization where
it generates and never processed or published. The current research has been conducted
primarily on theoretical approach and secondarily on practical analysis. Research topic was
finalized by the research supervisor. Data was collected from the following sources:
Primary Sources:
• Vouchers of different (fuel, maintenance, fees, taxes, insurances etc.) expanses
• Log books for vehicle usage
• Relevant Official’s Interview (Vehicle User, Driver, Internal Auditor)
3

10. Interviews:
The general method to get qualitative data is interviews with participants or respondents and
the main reason of interview is to gain full and detailed information of the experience.
Interviews are the most broadly used source ad a method of collecting data for evidence.
No Name Roles Organization Contact Information
1
Dr. Engr. Golam
Mostafa P. Eng
General
Manager
VMD, Ispahani
Group
Phone: 01937-900032
e-mail: tbpf@ispahanibd.coom
2
Uttam Kumar
Barua
Assistant
Manager
VMD, Ispahani
Group
Phone: 01815-114137
e-mail:vmd_office@ispahanibd.com
3
Shibu Prasad
Mitra
Assistant
Manager
IT, Ispahani
Group
Phone: 01819-393353
e-mail: shiba.mitra@ispahanibd.com
Table 2: Detail of the Interviewees
1.4.1 Data Analysis
The analysis of data is the process where on is trying to gather and present the data in such a
way so it has a good structure and becomes easy to understand (Repstad, 1999). In addition,
data analysis is a process of bringing order, structure and meaning ot the mass of collected
data (Ghauri, 2005). The goal with the analysis is to able to come up with trustworthy
conclusions which are based on the empirical data. The empirical finding and the theoretical
framework will be compared by analyzing data which has been collected in relation to
existing theories. Data was analyzed after all data was gathered together. My analysis will be
how to use information system to manage a large number of mixed vehicle fleet of an
FMCG company like Ispahani.
Finally collected data are classified, analyzed and presented in the form of report.
1.5 Limitations of the Research Project
In spite of my best effort, there is some lacking prevailing in this report. These are caused by
some limitations that are enumerated below:
1. The rate of success of my research may be limited as I might have failed to collect proper
information due to lack of proper communication.
2. Some data could not be collected for confidentiality and official secrecy.
3. For this study no fund has been allocated from my organization as well as from USTC.
4. As it is an extensive study it needs more time than allocated one. So due to time
constraint all information may not be collected and accuracy may be less.
I, therefore, hope that the study will be evaluated with an approach subject to the recognition
of the above mentioned shortcomings.
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11. OVERVIEW OF ISPAHANI GROUP
2.1 History
The Ispahanis have been involved in business in South Asia since 1820. Mirza Mohammed
Ispahani established the Calcutta office of M.M. Ispahani & Sons in 1900. Mirza
Mohammed Ispahani’s eldest son, Mirza Ahmed Ispahani, joined the partnership in 1918
and, with his younger brothers, Mirza Abol Hassan Ispahani and Mirza Mahmood Ispahani,
established the private limited company, M.M. Ispahani Limited, in 1934. In 1947 the
corporate Head Office was moved to Chittagong, where it stands today. With corporate
offices in Chittagong, Dhaka and Khulna and, through its tea, textile, jute, property, poultry
and shipping divisions, the Group employs approximately 10,000 people.
The Ispahani Group is a pioneer in many fields and remains one of the most successful and
respected business houses in Bangladesh. It is the largest tea trading company in the country
and dominates the domestic tea market, capturing approximately 50% of the national
branded tea market and 80% of the branded tea-bag market. Ispahani Tea is renowned all
over Bangladesh and its best selling brands such as Mirzapore Best Leaf and Mirzapore
Double Chamber Tea Bags are household names. The company has an unrivalled
distribution network of over 517 sales centers under 24 Divisional offices in Chittagong,
Dhaka, Dhaka North, Dhaka West, Pabna, Habiganj, Bogra, Barisal, Comilla, Khulna,
Kushtia, Mymensingh, Rangpur, Dinajpur, Sylhet, Dhaka South, Dhaka East,
Kishorganj,Tangail, Chittagong South, Chittagong North, Jessor, Rajshahi and Faridpur. It
also owns four of the finest tea gardens in Bangladesh: Ghazipore, Mirzapore, Zareen and
Neptune, all of which are equipped with state-of-the-art tea manufacturing machinery.
Corporate and Social responsibility form a large part of the Ispahani philosophy. Throughout
our history we have endeavoured to support and advance worthwhile causes. We have
established schools and colleges in Bangladesh as well as the renowned Islamia Eye
Hospital. The latter is a centre of excellence for providing modern, efficient and cost-
effective eye care. With a specialist line up of up to 40 doctors, 35 surgeons, trained nurses,
paramedics and other staff, Islamia Eye Hospital has been looking after the eye care needs of
thousands of Bangladeshis since its inception in 1960.
5

12. Furthermore, the Group sponsors various cricket, football, golf and tennis tournaments as
well as the National Cricket League.
Today, after decades of business in South Asia, the Ispahani Group is still dedicated to
providing high quality goods and services as well as having a positive impact on the
community at large.
2.2 Existing Business Units of Ispahani Group
Currently Ispahani operates their business in various sectors mainly on Tea, Foods, Agro,
Textile etc.
2.2.1 Tea Garden in Bangladesh
M.M. Ispahani Ltd. (MMI) owns four tea gardens: Mirzapore, Ghazipore and Zareen (all of
which are based in Moulvi Bazar, Sylhet) and Neptune (based in Chittagong). These gardens
produce approximately 3 million kilos of tea per annum, which is slightly over 5% of the
total tea production of Bangladesh. The average yield per hectare is over 1800 kilos; one of
the highest yields achieved nationally.
Each of the tea gardens has factories equipped with modern tea manufacturing facilities. The
tea produced is of high quality and sells at a premium at the Chittagong Tea Auction. There
are 167 tea gardens in Bangladesh, and Ghazipore, Mirzapore, Zareen and Neptune are
consistently in the list of top ten tea gardens for the highest auction price achieved.
Rubber Products:
Both the Neptune and Mirzapore Tea Gardens have Rubber plantation alongside Tea plants.
These two Rubber plantations produce about 1,20,000 Kgs of Raw Rubber Sheet (RSS) per
annum, out of which 75% are exported earning valuable foreign currency.
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13. 2.2.2 Tea Trade in Bangladesh
ISPAHANI is the single largest tea company in Bangladesh.
Acknowledged as a pioneer in the marketing of tea, we introduced to the Bangladesh tea
market the laminated pouch, the double chamber tea bag, the “stand up” pouch, the food
grade jar, the three layer pouch, the 10 gms easy pack and the “bag-in-bag” packet.
Our Tea Department selects, blends and packs the finest tea for both the local and
international markets. It prides itself on quality and achieves a very high degree of customer
satisfaction. Best selling brands such as Mirzapore Best Leaf, Mirzapore Double Chamber
Tea Bags, Blender’s Choice and Zareen are market leaders and household names in
Bangladesh.
For export, Ispahani offers tea of Bangladesh origin
• To all destinations in loose and packet form
• In original or in blended form
In packet, we have an unrivaled distribution network of sales centers and divisional offices
spread all over the country.
At the Tea Blending & Packeting Factory (TBPF), we use a hygienic state-of-the-art
blending system, where tea is cleaned and blended automatically. Most modern packing
machines are used to pack tea with weight checking and rejection system so as to ensure the
desired quantity with minimum tolerance in each packet. All European origin machines are
used to make best quality ‘tea-bags’ in our country.
Ispahani achieved ISO 9001:2008 certification for its quality management system.
7

14. 2.2.3 Cotton & Textiles
Pahartali Textile & Hosiery Mills (PTHM), a unit of M.M. Ispahani Ltd. is one of the
pioneer spinning mills in the country. It was set up and started its commercial production in
the year 1954. In the period of growing demand for quality yarn in the country’s largest
export sector, it is committed to meet the challenges of the time. At present the mill offers
one stop solution for variety of yarn requirements of the leading export oriented knit
garments in Bangladesh.
Manufacturing Business: PTHM mainly offers Cotton, Mélange, Slub and Polyester yarns
within the range from NE 10/1 to NE 40/1. The main yarns that it processes are:
• 100% cotton yarn (Card, Comb and Slub)
• Organic cotton yarn with the certification of GOTS (Global Organic Textile
Standards)
• Organic cotton yarn with the certification of Organic Content Standard (OCS 100 &
OCS Blended)
• Slub yarn (with the certification of GOTS & OCS)
• Mélange, Mélange (OCS Blended) yarn
• PC, CVC and Modal yarn.
• TFO yarn of 2 ply or 3 ply
Target Market: Export Oriented Knit Garments Industries of the country.
Spindle & Production Capacity:
Total installed spindles capacity: 71,760
• Mill-1: 22176 Spindles
• Mill-2: 23280 Spindles
• Blended Yarn Unit-1: 11616 Spindles
• Blended Yarn Unit-2: 14,688 Spindles
Total production per day: 37,000 kgs.
• Combed yarn/day: 13,000 kgs.
• Slub yarn/day: 5,000 kgs.
• Mélange yarn/day: 5,500 kgs.
• PC/CVC yarn: 9,000 kgs.
8

15. 2.2.4 ICT
Broad Band Telecom Services Limited (BBTS)is one of the Leading ICT Solution Service
Providers in Bangladesh Market that has been operating since the Year 2002 with a view to
provide Broad Band Internet and Allied Services in ICT.
BBTS has covered all 7 Divisions along with Redundant Links from where currently 48
Districts out of 64 are connected. 8 Export Processing Zones including the Private Korean
EPZ in Chittagong, The Chittagong Hill Tracts Zone i.e. Rangamati, Khagracgari,
Bandarban are also under BBTS Service Coverage which enable us to meet the growing
customers need with Quality.
Regional Offices of BBTS at Cox’s Bazar, Chittagong, Comilla, Dhaka, Sylhet, Bogra,
Rajshahi, Rangpur, Khulna, Barishal are set to play a vital role to serve our clients on a
timely fashion to address their ICT requirements as their local partner at all 64 Districts from
. These offices have been significantly contributing to meet growing customers need and
ensuring services & support from nearest points to cater their urgent needs with BBTS
owned resources.
BBTS provides solution for Broadband Internet, Long Haul and Inter City/ Inter District
connectivity through Fiber Optic & Wireless Technology around Bangladesh. It’s Customer
base includes top ranked corporate companies in Manufacturing Industry, Shipping Industry,
Financial institutions (CSE / DSE), Group of Companies, EPZ companies, Foreign Missions,
NGO’s, Hospitals, Banks and many other companies who has been consistently patronizing
us as a business partner of BBTS. BBTS is the Official Service & Solution Provider for
Chittagong Stock Exchange.
Over the years, we have become the most innovative ICT Solution Service Provider in
Bangladesh, introducing state-of-the-art technology unparalleled in most of Asia. Harnessing
the power of Next Generation Networking (NGN) for the benefit of our clients, we
introduced NGNet as the NGN solution for Metro-Ethernet access. Using the NGN Open
Access Network (OAN) technologies, our vast array of services include Triple Play,
Dedicated Data Access, Transparent LAN Services (TLS), Private Line Services (PLS), all
of which are available to both corporate and residential clients. Engineering leading edge
solutions based on the needs and budgets of our clients, we never compromise on quality.
9

16. 2.2.5 Packaging
Ispahani Marshall Limited is a leading manufacturer of poly packaging which encompasses
a 100% export orientated unit which supplies packaging to the textiles and garments
industries as well as a unit for local customers which include consumer food manufacturers,
flour mills, seafood exporters and tea gardens, and many more.
Our factory is state-of-the-art and offers HDPE/LDPE/PP/BOPP poly bags with up to 8
colour Rotogravure and Flexographic printing and with our commitment to protect the
environment, we are pleased to also offer Bio-degradable poly bags.
Ispahani Marshall Ltd is recognized for its commitment to quality and customer service and
our client list includes some of the most renowned local and multinational companies in
Bangladesh.
2.2.6 Foods
Ispahani Foods Limited (IFL), established in 1999, covers a wide and varied range of
agricultural and food-related businesses. IFL is a subsidiary of M.M. Ispahani Ltd., based at
Ispahani Foods Complex, Konabari, Gazipur, Dhaka.
Equipped with the most modern machinery, our food products are hygienically weighed,
packed and sealed in a fully automated process which is supervised by a team of experts.
Under it’s popular brands Ispahani and Ispahani Delicious, IFL manufactures
flavored potato snacks, chanachur, fried dal, fried green peas and shemai. IFL also
manufactures biscuits under it’s Ispahani G and Ispahani Energy, Cookie
Man and Bakery Fresh brands.
Since its inception, Ispahani Foods Ltd has come a long way in becoming one of the leading
manufacturers of snack foods, biscuits, and other items for it’s loyal and ever growing
consumer base.
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17. 2.2.7 Hospitality & Leisure
Located at Ispahani Moor, at the intersection of S.S. Khaled Road and CDA Avenue, in
close proximity to the scenic Batali Hills, The Avenue Hotel and Suites is home to the most
spacious and luxurious accommodation for visitors coming to Chittagong on business or
holiday.
Comprising gorgeous Suites, lavish Super Deluxe Rooms and magnificent Deluxe Rooms, it
offers every possible comfort and convenience that discerning travellers can wish for upon
arrival at this bustling Port City.
Catering to business needs is the purpose-built Conference Room, designed for Board
meetings and other corporate events. Situated close to the Reception and Lounge, it is ideally
suited for such occasions.
For larger occasions and gatherings, there is the huge seminar/banquet hall on the ground
floor, an immensely popular place and first-choice option for formal as well as informal
functions.
And to rewind after a hard day’s work, we have on the top floor a fully-equipped Fitness
Centre, with modern equipment to help our guests relax and get away from stress and strain.
Spread over five floors, the premises also house our well-known Pitstop Restaurant, Pitstop
Bakery and Sweets, and the Pitstop Store. The restaurant provides delightful breakfast, lunch
and dinner, as well as room service for the hotel guests, while the bakery and store are there
to cater to your other daily needs.
2.2.8 Real Estate
M.M. Ispahani Ltd. has been at the forefront of the real estate market for many years.
Free School Street Property Limited and Nasirabad Properties Limited have helped design
and develop high-quality apartments, offices, shopping complexes and residential plots.
Sikomi Properties Limited provides warehousing for the tea produced by the group’s four tea
estates.
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18. 2.2.9 Trading
South East Trading Limited (A trading wing of Ispahani Group) and was incorporated in
1979..
We have promoted a large numbers of turnkey projects for our foreign principals /
contractors in Roads & Highways Dept. (RHD), Power, Railway, Gas, Water & Sewerage
Dept. and Ports & Shipping sectors in Bangladesh.
We have rich experience in promoting the turnkey contracts with the appropriate tendering
authorities in Bangladesh in all areas mentioned above specially for Roads, Bridge and
Flyover projects.
2.2.10 Agro
M.M Ispahani Limited is an ISO 9001 Certified Company which was established in 1820.
The Company has its corporate offices in Chittagong, Dhaka and Khulna. Through its Tea,
Foods, Textile, Jute, Match, Real Estate, Poultry and Shipping Units; the group employs
approximately 5,000 people. Today after 192 years of business in the Sub- Continent, the
house of Ispahani is still dedicated to the cause of excellence in providing high quality goods
and services. Ispahani Agro Limited (IAL), a sister concern of M. M. Ispahani Ltd. has
been operating its agro business with three wings “Ispahani Seeds”, “Ispahani Biotech” and
“Ispahani Agro Processing” since 2007.
IAL is an integrated approach of supplying agro input to ensure Safe Food Security. In this
backdrop IAL has started its venture with quality seeds with the motto of “Farmer’s progress
for country’s prosperity”. Being a sister concern of a renowned business conglomerate, IAL
feels to develop a complete agro business unit which will contribute not only to the farmers’
progress but also to the harmony of nature and wellbeing of human being. And consequently
IAL set the goal as “Safe food for better life”
Targeting safe food security IAL has designed “One Stop Agriculture” conceiving the
following business wings:
1. Ispahani Seeds
2. Ispahani Biotech
3. Ispahani Agro Processing
4. Ispahani Agro produce supply chain (consumer)
Vision: Safe food for better life
Mission:
Under the umbrella of “One stop agriculture” Ispahani Agro Limited will provide
environment friendly agro inputs to the farmers for safe food production, infrastructural
support for agro processing and sustainable supply chain development to ensure safe food to
reach the consumer.
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19. LITERATURE REVIEW
3.1 Vehicle Management Information System (VMIS)
A vehicle management information system is the arrangement where all kind of vehicle
usage, maintenance & other relevant expanses are recorded, stored and processed for cost
effective operation & utilization to achieve the goals of organization. Analyzing this large
amount of stored data, the organization can take decision for different types of policy
making like vehicle replacement by comparing its maintenance & fuel consumption data.
Now a day’s vehicle operation acts as a business process to provide cost-effective logistic
support to any business organization to be competitive over it’s competitors. So VMIS
should be included in the enterprise application known as ERP.
3.2 Approach for building a Vehicle Management Information System
A generalized approach for building a fleet management system was derived from the
explorative analysis described above. The derived key elements include:
• Identify relevant information to be handled
• Identify the scope of central and distributed planning
• Communication between vehicles and management units
• Integration of global/local perspectives
• Analysis and tools for decision support
3.3 Information System
There is a growing interdependence between a firm’s ability to use information technology
and its ability to implement corporate strategies and achieve corporate goals. What a
business would like to do in five years often depend on what its systems will be able to do.
Increasing market share, becoming the high-quality or low-cost producer, developing new
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20. products, and increasing employee productivity depend more and more on the kinds and
quality of information systems in the organization.
Specifically, business firms invest heavily in information systems to achieve six strategic
business objectives: operational excellence; new products, services, and business models;
customer and supplier intimacy; improved decision making; competitive advantage; and
survival.
In contemporary systems there is a growing interdependence between a firm’s information
systems and its business capabilities. Changes in strategy, rules, and business processes
increasingly require changes in hardware, software, databases, and telecommunications.
Often, what the organization would like to do depends on what its systems will permit it to
do.
3.4 Value of Information
One of the most important analyses prior to building a fleet management system (or any
management system) is the value of information, In general, the value of information is the
value of the change in decision behavior caused by the information, less the cost of the
information (Sørensen, 1999). This statement implies that information is normally not a free
good. Furthermore, if it does not change decisions to the better, it may have no value. Many
assume that investing in a “better” management information system is a sound economic
decision. Since it is possible that the better system may not change decisions or the cost of
implementing the better system is high to the actual realized benefits, it could be a bad
investment. Also, since before the investment is made, it is hard to predict the benefits and
costs of the better system, the investment should be viewed as one with risk associated with
it.
In connection with the implementation of IT-systems, methods within decision theory allow
for identification of whether an given information has an added value in relation to the
decision process at hand. In other terms, this means whether the possession of the
information will increase the utility of the final decision. The increased utility must exceed
the costs of collecting and processing the information. However, the approach is complicated
and demands comprehensive modeling (Hardaker et al., 1997). Instead, a number of
indicators will often be used to illustrate the expected benefits from using the proposed IT-
system. Such indicators might include:
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21. • An automated data infrastructure, whereby the number of manual and labor intensive
registration tasks is minimized
• Increased digitalization of the work processes giving way for a more transparent
production process increasing over view, production understanding, and information
level of the employees
Despite of the difficulties in precisely evaluating the value of information prior to investing
in a new IT technology it will be imperative to reflect on which information to include in the
system.
3.5 Functions of Information System
Three activities in an information system produce the information that organizations need to
make decisions, control operations, analyze problems, and create new products or services.
These activities are input, processing, and output.
Figure 1: An information system contains information about an organization and its
surrounding environment. Three basic activities—input, processing, and output—produce
the information organizations need.
Feedback is output returned to appropriate people or activities in the organization to evaluate
and refine the input. Environmental actors, such as customers, suppliers, competitors,
stockholders, and regulatory agencies, interact with the organization and its information
systems.
Input captures or collects raw data from within the organization or from its external
environment. Processing converts this raw input into a meaningful form. Output transfers
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22. the processed information to the people who will use it or to the activities for which it will
be used.
Information systems also require feedback, which is output that is returned to appropriate
members of the organization to help them evaluate or correct the input stage.
3.6 Business Process
A business process is a collection of linked tasks which find their end in the delivery of a
service or product to a client. A business process has also been defined as a set of activities
and tasks that, once completed, will accomplish an organizational goal. In order to operate,
businesses must deal with many different pieces of information about suppliers, customers,
employees, invoices and payments, and of course their products and services. They must
organize work activities that use this information to operate efficiently and enhance the
overall performance of the firm. Information systems make it possible for firms to manage
all their information, make better decisions, and improve the execution of their business
processes. Business processes are the collection of activities required to produce a product or
service. These activities are supported by flows of material, information and knowledge
among the participants in business processes. Many business process are tied to a specific
functional area. For example, the sales are marketing function is responsible for identifying
customers and the human resources function is responsible for hiring employees.
Business process also refer to the unique ways in which organizations coordinate work,
information and knowledge and the ways in which management choose to coordinate work
(Kenneth C.Laudon & J.ane P.Laudon, 2012).
Every business can be seen as a collection of business processes, some of which are part of
larger encompassing processes. For instance, designing a new sailboat model, manufacturing
components, assembling the finished boat, and revising the design and construction are all
part of the overall production process.
A simple business is fulfilling an order, turns out to be a very complicated series of business
processes that require the close coordination of major functional groups in a firm. Moreover,
to efficiently perform all these steps in the order fulfillment process requires a great deal of
information. The required information must flow rapidly both within the firm from one
16

23. decision maker to another; with business partners, such as delivery firms, and with the
customer. Computer-based information systems make this possible.
3.6.1 Business Process Management
Business process management (BPM) is a systematic approach to making an organization's
workflow more effective, more efficient and more capable of adapting to an ever-changing
environment. The goal of BPM is to reduce human error and miscommunication and focus
stakeholders on the requirements of their roles. BPM is a subset of infrastructure
management, an administrative area concerned with maintaining and optimizing an
organization's equipment and core operations.
Figure 2: Typical business processes for each of the functional areas of business
17

24. Information systems automate many steps in business processes that were formerly
performed manually, such as checking a client’s credit, or generating an invoice and
shipping order. But today, information technology can do much more. New technology can
actually change the flow of information, making it possible for many more people to access
and share information, replacing sequential steps fulfilling a customer order involves a
complex set of steps that requires the close coordination of the sales, accounting, and
manufacturing functions.
Figure 3: The Order Fulfillment Process
By analyzing business processes, organization can achieve a very clear understanding of
how a business actually works. Moreover, by conducting a business process analysis,
organization will also begin to understand how to change the business by improving its
processes to make it more efficient or effective.
18

25. 3.7 Enterprise Application
Enterprise applications, which are systems that span functional areas, focus on executing
business processes across the business firm, and include all levels of management.
Enterprise applications help businesses become more flexible and productive by
coordinating their business processes more closely and integrating groups of processes so
they focus on efficient management of resources and customer service. There are four major
enterprise applications:
• Enterprise systems
• Supply chain management systems
• Customer relationship management systems and
• Knowledge management systems.
Each of these enterprise applications integrates a related set of functions and business
processes to enhance the performance of the organization as a whole.
Figure 4: Shows that the architecture for these enterprise application encompasses spanning
the entire organization and in some cases, extending beyond the organization to customers,
suppliers, and other key business partners.
19

26. 3.7.1 Enterprise System
Enterprise System also known as enterprise resource planning (ERP) systems, to integrate
business processes in manufacturing and production, finance and accounting, sales and
marketing, and human resources into a single software system. Information that was
previously fragmented in many different systems is stored in a single comprehensive data
repository where it can be used by many different parts of the business.
Figure 5: How Enterprise System Works
For example, when a customer places an order, the order data flow automatically to other
parts of the company that are affected by them. The order transaction triggers the warehouse
to pick the ordered products and schedule shipment. The warehouse informs the factory to
replenish whatever has been depleted. The accounting department is notified to send the
customer an invoice. Customer service representatives track the progress of the order
through every step to inform customers about the status of their orders. Managers are able to
use firm-wide information to make more precise and timely decisions about daily operations
and longer-term planning.
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27. 3.7.2 Supply Chain Management System
Firms use Supply Chain Management (SCM) systems to help manage relationships with
their suppliers. These systems help suppliers, purchasing firms, distributors and logistics
companies share information about orders, production, inventory levels, and delivery of
products and services so that source, procure and deliver goods and services efficiently. The
ultimate objective is to get right amount of their products from their sources to their point of
consumption in the least possible time and at the lowest cost maintaining optimum level of
inventory. These system increase firms profitability by lowering the cost of moving carrying
and making product and by enabling managers to make better decisions about how to
organize and schedule sourcing, production and distribution. In context of vehicle
management, supply chain plays a very crucial role by providing the proper spare parts in
cost effective way while it is necessary to repair the vehicle. The cost of maintenance and
downtime can be reduced and vehicle usage can be increase if supply chain management
system is robust and well equipped.
3.7.3 Customer Relationship Management Systems
Firms use Customer Relationship Management (CRM) systems to help manage their
relationships with their customers. CRM systems provide information to coordinate all of the
business processes that deal with customers in sales, marketing, and service to optimize
revenue, customer satisfaction, and customer retention. This information helps firms
identify, attract, and retain the most profitable customers; provide better service to existing
customers; and increase sales.
3.7.4 Knowledge Management Systems
Some firms perform better than others because they have better knowledge about how to
create, produce, and deliver products and services. This firm knowledge is difficult to
imitate, unique, and can be leveraged into long-term strategic benefits. Knowledge
management systems (KMS) enable organizations to better manage processes for capturing
and applying knowledge and expertise. These systems collect all relevant knowledge and
experience in the firm, and make it available wherever and whenever it is needed to improve
business processes and management decisions. They also link the firm to external sources of
knowledge.
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28. 3.8 The MIS and Decision Support System (DSS)
The term management information systems (MIS) also designates a specific category of
information systems serving middle management. MIS provide middle managers with
reports on the organization’s current performance. This information is used to monitor and
control the business and predict future performance.
MIS summarize and report on the company’s basic operations using data supplied by
transaction processing systems (TPS).
In contrast, decision-support systems (DSS) support more non-routine decision making.
They focus on problems that are unique and rapidly changing, for which the procedure for
arriving at a solution may not be fully predefined in advance.
3.9 Expected Benefits of VMIS
Improved planning tools combined with ICT systems for monitoring and documentation may
increase the capacity utilization and subsequently improve the timeliness of the field
operations. Studies have shown that the capacity utilization can be increased significantly
and thereby reduce the unit costs by e.g. 20-30% by following a goal-directed planning and
monitoring (Sørensen, 2003a; Sørensen, 2003b). In terms of distance travelled, significant
savings are reported as a result of optimized vehicle routing (e.g. Palmer et al., 2003; Toth
and Vigo, 2002).
Fully integrated fleet management systems with technical assets management in non-
agricultural businesses (companies with operating vehicles or service-oriented companies
with fleet objects) have experienced significant benefits (SAP, 2005). For example, customer
interviews reveal that up to 30% less administrative costs for fleet operations may be
achieved together with up to 80% improvement in detecting of malfunctions or poor
operational performance because of close monitoring. In the same connection, up to 60%
minimized risk of malfunction by preventive maintenance is experienced. Also, in terms
of streamlined stock management and integrated procurement 20% reduced costs were
gained.
22

29. A number of expected benefits are as follows:
• Increased vehicle usage hence productivity
• Improved fuel economy
• Reduced maintenance cost
• Improved service and interaction towards user
• Reduced response time
• Increased job flow processes
• Continuous operational control
• Offers real-time data sharing
• Remote access via internet
• Accelerates management decision process
• Presumably increases profitability
• Reduce administrative cost & save time
• Reduced vehicle downtime
• Eliminate costly errors due to poor communication
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30. ANALYSIS AND FINDINGS
4.1 Introduction of VMIS in Ispahani group
In Ispahani group, large number of different type vehicles are required to support widely
varied tasks and contend with differing places and operational requirements all around the
country, but the data needed to manage and report on any fleet operation are remarkably
uniform. The management needs detailed data on each vehicle, as well as summary and
exception reports, in order to make informed decisions about usage, maintenance, repair, and
replacement, and to respond to drivers and users. Management also requires the aggregated
data that can spot trends in cost and utilization and assist in directing scarce resources to the
particular fleet or program most in need. A Vehicle Management Information System
(VMIS) should be capable of serving all these requirements to manage all vehicles of an
FMCG company like Ispahani.
4.2 Requirement Analysis
Before developing the VMIS a requirement analysis was done thoroughly to understand all
the relevant data or inputs. A well-designed VMIS will collect and store the required data
and be capable of producing regular and on-demand reports, in hard-copy and electronic
form as needed. This system should be based at the department or central headquarters level
and include all motor vehicles within the department or business unit/regional headquarters.
The system will include reporting and accountability structures to accommodate subordinate
regional and field offices that has the authority to control the vehicles. It will be integrated
into company’s financial and property management systems so as to reduce duplication of
data-entry and unnecessary duplication of databases. It will be capable of producing data to
satisfy internal and external reporting requirements in an automated fashion. The followings
are the main inputs of this information system;
• Vehicle Identification data
• Yearly Documentation data
• Fuel intake & expanse data
• Maintenance expanse data
• Vehicle usage data
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31. 4.3 Specific VMIS Inputs
For all kind of the system there must have some inputs so that the system can process or
manipulate that inputs to produce some output or result which will support the decision
making process of any organization. In that prospect the VMIS is to be feed by it’s desired
records or information called inputs. The inputs are described as follows;
4.3.1 Vehicle Identification Information
A vehicle must have unique identity. The vehicle identity data, such as vehicle registration
number, year, make, model, brand, origin, color, engine number, chassis number, engine
capacity, gear type, vehicle type, fuel type, tyre size, battery size, user, driver, supplier
particulars registration date, purchase date etc.
Figure-6: Screen shot of Vehicle Information entry interface
25

32. 4.3.2 Yearly Documentation & Taxation data
Any vehicle is as asset, so it has some yearly taxation issue which must be renewed each and
every year. By capturing these data of government tax, fitness, route permit, registration,
insurance etc. the system can provide auto remainder to the management.
Figure-7: Yearly documentation info entry interface
4.3.3 Fuel intake & expanse data
Capturing the data of fuel consumption by the vehicle individually with all the particulars
Figure-8: Fuel consumption info entry interface
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33. For example fuel type (octane, diesel, CNG etc), mileage at which it was consumed, date,
quantity of fuel consumed etc. data are recorded. These data can be manipulate to produce
different kinds of report which provides management insight for the overall fuel
consumption.
4.3.4 Maintenance expanse data
Captures all the data related to maintenance like spare parts, supplier, price, quantity, etc.
• Provide for an automated vehicle repair history
• Provide ability to review vehicle repair files prior to authorizing repairs and the
ability to update these files once repairs are approved
• Capture different aspects of repair, including unscheduled repairs, preventive
maintenance, and accident repairs
• Provide the capability to schedule and notify vehicle users of preventive maintenance
services
Figure-9: Maintenance expanse info entry interface
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34. 4.3.5 Vehicle deployment and usage data
Captures the data related to vehicle usage like trips, route, destinations etc.
• Capture current vehicle assignments, including the vehicle point of contact and
assigned address.
• Have the ability to store and access assignment history.
• Capture periods where the vehicle is not assigned to a particular vehicle user, i.e.,
awaiting initial assignment and disposal and awaiting maintenance.
• Capture dispatch pool use.
4.3.6 Vehicle related HR data
Captures the data related to driver, user, technicians, workshop etc. These data need to be
recorded to analyze the usage pattern related to any user or department or to evaluate the
performance of the driver or the maintenance personnel that is the trend of their driving
attitude and maintenance performance.
4.4 Specific VMIS Outputs
There are several types of report like trend analysis, exception report etc. can be generated as
per management requirements.
• Exception report
• Reports about Vehicle Information
• Reports about Repair & Maintenance (General, Periodical & Accidental)
• Reports about Fuel Consumption
• Reports about Spare-Parts consumption trends
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35. • Major contributor of fixed of variable costs
• Reports about Frequency of Accident and Breakdown
4.5 Oracle & SQL based system
The VMIS can be developed using Oracle & SQL for database design & report generation
respectively. An Oracle database is a collection of data treated as a unit. The purpose of a
database is to store and retrieve related information. A database server is the key to solving
the problems of information management. In general, a server reliably manages a large
amount of data in a multiuser environment so that many users can concurrently access the
same data. All this is accomplished while delivering high performance. A database server
also prevents unauthorized access and provides efficient solutions for failure recovery.
On the other hand SQL (pronounced "ess-que-el") stands for Structured Query Language.
SQL is used to communicate with a database. According to ANSI (American National
Standards Institute), it is the standard language for relational database management systems.
SQL statements are used to perform tasks such as update data on a database, or retrieve data
from a database. Some common relational database management systems that use SQL are:
Oracle, Sybase, Microsoft SQL Server, Access, Ingres, etc. Although most database systems
use SQL, most of them also have their own additional proprietary extensions that are usually
only used on their system. However, the standard SQL commands such as "Select", "Insert",
"Update", "Delete", "Create", and "Drop" can be used to accomplish almost everything that
one needs to do with a database. This tutorial will provide you with the instruction on the
basics of each of these commands as well as allow you to put them to practice using the SQL
Interpreter.
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36. 4.6 The System Architecture
Figure-10: The System Architecture of VMIS at Ispahani
30

37. 4.7 Enabling Connectivity towards the User
The Local Area Network (LAN) and Virtual Private Network (VPN) can enable the VMIS
throughout the country even worldwide within cost-effective way.
A local area network (LAN) is a group of computers and associated devices that share a
common communications line or wireless link to a server. Typically, a LAN encompasses
computers and peripherals connected to a server within a distinct geographic area such as an
office or a commercial establishment. Computers and other mobile devices use a LAN
connection to share resources such as a printer or network storage.
To operate the VMIS from around the country wide different locations and to be connected
live, the system must be joined and connected in an efficient and cost-effective way.
Otherwise the objective of the whole system will jeopardize. Virtual Private Network
(VPN) is really a cost-effective and secured mean to connect all the stakeholders.
A virtual private network (VPN) is a secure, encrypted, private network that has been
configured within a public network to take advantage of the economies of scale and
management facilities of large networks, such as the Internet.
4.8 Findings
Implementation of Vehicle MIS shows significant improvement in context of vehicle
management in a group like Ispahani. It allows the management to take effective control
over it’s large number of mixed vehicle fleet. It provides a clear view of different types of
costing related to vehicle management (like fixed cost- cost of procuring vehicle, insurance,
tax, fitness etc. and variable cost- fuel cost, maintenance cost and others) and help to decide
to budgeting and control. It is a very useful tool to share information and exchange it to
update the current position of the vehicle which helps the management in terms of usage,
share, exchange disposal or replacement of vehicles.
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38. 4.8.1 Fuel Efficiency & reduction of operating cost
If fuel usage efficiency increases then the overall fuel cost is decreased. If a vehicle is
monitored closely by keeping the fuel consumption data to observe the consumption trend in
terms of mileage (travelling distance per unit of fuel) which gives the management control
over fuel consumption and overall cost of fuel expanses by monitoring the person driving
and effective maintenance of the vehicle if it shows different consumption trend than normal.
4.8.2 Improvement in fleet maintenance costs
Maintenance cost can be traced and trend can be analyzed which gives the insight to
preventive /preventive maintenance which leads to reduction of overall maintenance cost.
Proper maintenance makes all the fleet ready to run in the road and increased usability.
4.8.3 Frequency of Vehicle Breakdowns
By focusing on safe and defensive driving habits, incidences of accident related breakdowns
and premature engine failure have been drastically reduced leading to fewer vehicles being
referred to the workshop for repairs. This has consequently increased the fleet availability
and more efficient utilization of fleet.
4.8.4 Order to Payment Cycle
It is the part of the information system which can keep all the data about organizational
transactions regarding vehicle management ranging from indent to payment. It is a part of
supply chain management system. This provides us the insight about spare-parts, suppliers,
pricing, time required to acquire the parts etc. By analyzing the trend of all these data we can
manage the level of inventory and make financial budgetary planning.
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39. RECOMMENDATIONS & CONCLUSION
5.1 Recommendation
It is to be recommended that Vehicle Management should be Information System based in
our country according to the basis of needs of different organizations like FMCG company,
Logistic Company, Government Organizations, Humanitarian Organizations, Travelling
industry etc. but the system should maintain some predetermined instructions and
regulations so that information can be exchanged form one organization to another. For
example the Database of our Voter ID can be used and shared for a wide range of usage like
Mobile phone operators to register the mobile number, Banking organizations, Passport
issuing, Vehicle Registration and counting. This may reduce the cost of developing the
information system and gives us competitive advantage over developing individually by
different organizational standard. The maintenance of the whole system would be
inexpensive; the hardware requirements would be homogeneous, the integration of the whole
system would be easy, information sharing would be fast and cost-effective, data anomalies
and repetition of same data would be reduced. So we should take a unified effort to develop
this kind of information system for the whole industry of Vehicle Management.
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40. 5.2 Conclusion
The conclusions made are drawn from the finding on the effects and the related
consequences of these effects and may be generalized that there are considerable advantages
to be gained from implementing Information System to vehicle management, including
reduced operational costs, reduced accident rates, increased fleet availability, and improved
data management system for better management decision making process. The findings of
this study are supported by Stroh (2001:101), who maintains that the transport logistics
department was among the last to join the personal computer trend. The main reason for this
is that, in general, the logistics department had the tendency to be pushed to the corporate
back seat, and therefore, it was thought that it had no need for such high-priced perks.
However, as times have changed and the corporate powers began to realize that the
distribution department could save a sizable sum of money by utilizing the power of the
computer & Information System.
It is expected therefore that this study will greatly benefit Ispahani group in deepening the
impact of the Vehicle Management Information System (VMIS) implemented in its
operations and also provide a practical framework document for reference by companies in
Bangladesh who wish to initiate the implementation of VMIS in their respective fleets. This
research study recognizes the emerging IT solutions as an indispensable tool for any
organization in building effectiveness and efficiency in its business processes. The research
evidence from the survey results epitomizes how the successful implementation of modern
management systems in today’s transport and logistics service providers may lead to a
greatly improved logistical performance, cost efficiency and customer satisfaction. Firms
need to integrate several logistics activities by including distribution, warehousing and fleet
management in order to guarantee effectiveness and efficiency in their transportation
processes.
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41. REFERENCES
[1]. International Journal fo Physical Distribution & Logistics Management, 26.6, 4-15.
Goulielmos, A. and Tzannatos, E. (1997). Management Information for the
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[2]. Kenneth C. Laudon & Jane P. Laudon (2012). Management Information System: 12th
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[3]. Mele, J. 2005. Fleet Management Systems: The future is here. Fleet Owner, August
1, 2005.
[4]. Miller K; Waller H G 2003. Scenarios, real options and integrated risk management.
Long Range Planning.
[5]. Palmer, R.J.; Wild, D.; Runtz, K. 2003. Improving the Efficiency of Field
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[7]. SAP 2005. SAP AG. Providing collaborative business solutions for all types of
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[10]. http://www.businessdictionary.com
[11]. www.appian.com/about-bpm/definition-of-a-business-process
[12]. http://www.wikipedia.com
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[14]. http://dlca.logcluster.org/display/LOG/Fleet+Management
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42. APPENDIX
Abbreviation used in this Report
BBTS = Broad Band Telecom Services Limited
BOPP = Biaxially Oriented Polypropylene Films
BPM = Business process management
CDA = Chittagong Development Authority
CNG = Compressed Natural Gas
CRM = Customer Relationship Management
CSE = Chittagong Stock Exchange
DSE = Dhaka Stock Exchange
DSS = Decision Support System
EPZ = Export Processing Zone
ERP = Enterprise Resource Planning
FMCG = Fast Moving Consumer Goods
HDPE = High Density Polyethylene
HR = Human Resource
ICT = Information & Communication Technology
ID = Identification
IFL = Ispahani Foods Limited
IAL = Ispahani Agro Limited
IS = Information System
ISO = International Organization for Standard
IT = Information Technology
KMS = Knowledge Management System
LAN = Local Area Network
LDPE = Low Density Polyethylene
MBA = Master of Business Administration
MIS = Management Information System
MMI = M.M. Ispahani Limited
NGN = Next Generation Network
PTHM = Pahartali Textile & Hosiery Mills
PP = Poly Propylene
RHD = Roads and Highways Department
SAP = Systems Applications and Products
SQL = Structured Query Language
SCM = Supply Chain Management
TPS = Transaction Processing System
USTC = University of Science and Technology Chittagong
VMIS = Vehicle Management Information System
VMD = Vehicle Management Department
VPN = Virtual Private Network
WMS = Workshop Management System
36