Task 2: The Case Study Muscat Automobiles (MA) was responsible for bringing the first sedan car into the Sultanate in 1975. As time progressed Muscat Automobile became one of the most trustworthy dealers of automobiles in the sultanate having an annual sale of around 75,000 vehicles in the year 2000. Muscat Automobiles has tried to keep customers happy despite its quality problems by offering a 5 Year/50,000 Kms Warranty Program, which provides coverage until either the yearly or total mileage figure is reached, whichever occurs first. That means that Muscat Automobile must pay for repairs on all warrantied items in its vehicles for many more years than its competitors are willing to do for their products, which raises operating costs and reduces the profit margin. Muscat Automobiles needed a system to report defects, accidents, or injuries involving vehicles sold by the company. This was a major challenge because the information from which the reporting was done was stored in multiple systems of different departments. Fragmentation of this information in different systems prevented Muscat automobiles from getting a complete picture of the defects. Parts sales are the first indicator of a defect, warranty claims the second, and consumer complaints the third. Looking at parts sales alone won't provide an answer. A sudden increase in brake pad orders from Muscat Automobile dealers making repairs indicates there might be a problem with a particular pad. By examining warranty claims, Muscat Automobiles might discover that brake pads were only being ordered for four-wheel-drive models of one of its vehicles and not for two-wheel-drive models. This additional information might show that the problem was a result of excess vibration caused by the vehicle's design rather than the brake pads. So Muscat Automobiles management decided to create a defect early warning system that could identify potential problems, such as faulty brake parts, by combining warranty claims, parts orders, field reports, and consumer complaints. Muscat Automobiles acquired a new state of the art information system that examines the multiple systems for warranty claims, parts sales, vehicle identification number master storage files, and vehicle inventories and stores the essential information in a single common data repository. The system automatically breaks down and categorizes reports based on individual components, such as steering assemblies or headlights, and links to Muscat Automobiles customer relationship management system. Once the data have been stored in a single place, Muscat Automobiles could use analysis software to analyze details, such as spikes in warranty claims related to a particular vehicle model, unusual increases in parts orders, or high numbers of accidents resulting in serious injury or death, on an early warning dashboard. Managers can analyze the data by daily, weekly, or monthly reporting periods and by specific car models, model years, and components. They also can break down the data in detail to see how many complaints or warranty claims are associated with a specific item, such as a steering assembly. Information from this system is helping Muscat Automobile pinpoint the sources of defects and determine what percentage of its vehicles are likely to have problems. The company can then improve its production processes before the problems become more widespread, thus lowering costs for warranty repairs. 1. Discuss in detail the problems faced by companies like Muscat automobiles for not having a central data repository. Explain in detail the impact of the non-availability of proper information systems for business organizations like Muscat Automobiles. (25 Marks) 2. Discuss How the new reporting system assisted Muscat automobiles to pinpoint the defects and address the issues. Explain how the new reporting system was helpful for the company. (25 Marks) 3. Any business striving to grow has to instill a well organized Business Information System. Write a critical reflection on the new reporting systems Muscat Automobile had introduced. (25 Marks)