MIS Definition

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MIS Definition

• A computer-based system that makes information
  available to users with similar needs.

2
Organizational Information Systems
Executive Information System (EIS)
Marketing information system
Manufacturing information system
Financial information system
Human resource information system
3
MIS is an Organizational Resource

• Information
• Past, present, future
• Periodic reports, special reports, simulations
• Similar needs
• Functional area
• Management level
• Managers and nonmanagers

4
Report Writing Software

• Periodic and special reports may look the same,
  the difference is in what triggers the report
• periodic report - produced on a schedule
• special report - produced when something out of
  the ordinary occurs

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An Overtime Earnings Report
OVERTIME EARNINGS REPORT FOR WEEK ENDING AUGUST 19

OVERTIME
EARNINGS Department No. Department Name
Current Month Year-to-Date
16-10 Receiving 2,305.00
5,319.20 16-11 Inspection
1,025.60
4,386.12 16-12 Materials Handling
3,392.50 12,629.00 16-13
Tooling 78.00
1,049.00 16-14
Assembly 0.00
792.80 16-15 Plating
3,504.90
12,635.20 16-16 Shipping
5,219.16
18,294.16
TOTALS 15,525.16
55,105.48
6
SALES BY PRODUCT FOR THE MONTH OF JUNE PRODUCT
PRODUCT CURRENT MONTH
YEAR-TO-DATE NUMBER NAME
SALES SALES 129875 GASKET CENTER
CASE 5,090.23 31,764.00 087235
MAINSHAFT 4,760.01
29,329.45 118320 1ST MOTION SHAFT
1,789.45 28,243.59 250067 OIL SEAL REAR
11,560.24 23,450.07 228203
LAYGEAR 8,369.34
14,709.03 576000 HUB 5TH
.00 13,623.68 516012 SHIFT FORK 1-2
450.95 12,634.44 090407
SYNCHRO RING 2ND 2,243.27
9,963.58 282130 BUSH SHIFT LEVER
.00 490.00 576301 OIL SLINGER
.00 11.50

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GROUPED/MULTIPLE LINE CHART
GROUPED BAR CHART

Sales Revenue
Sales Revenue


Years (c)





Years (a)
8
Putting the MIS in Perspective

• The first attempt to make information available
  to management
• Enjoyed its greatest prominence in the 1960s when
  it first originated

9
The MIS and Problem Solving

• Contributes because MIS is an organization-wide
  resource
• Contributes because it keeps a continuous supply
  of information to the manager for problem
  identification and understanding

10
Information Reporting Systems (IRS)

• Information is data that has been processed and
  is useful in decision making. it helps decision
  makers by increasing knowledge and decreasing
  uncertainty.
• IRS Provide the following
• Correct and timely information to appropriate
  managers
• Information on medium and long range operations
• summarised information

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Levels of Management

• Top Level Management Strategic Decision making
• Middle Level Management Tactical Decision Making
• Lower Level Management Operational Decision Making

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Top Level Management

• Future Orientated and involves a great deal of
  uncertainty
• Involves establishing goals and objectives for
  the organisation
• May include the following
• Introducing new products, new markets, acquiring
  facilities,
• raising capital, capital expenditure proposals etc

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Middle Managment

• Concerned with tactical decision making
• Implementing strategy.
• activities include
• planning working capital, scheduling working
  capital, formulating budgets,
• managing personnel, etc

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Lower Level Management

• First line supervisors
• Operating decisions to ensure specific jobs are
  done.
• examples
• stock control, selling, distribution, assigning
  jobs to staff

15
Differences across the Decision Making levels
16
Types of Reports

• Scheduled listings
• Exception Reports
• Predictive reports
• Demand Reports

17
Scheduled listings

• Produced at regular intervals and provide routine
  information to a wide variety of users.
• Suffer from information overload and problems of
  relevance
• Control and tracking oriented
• Examples
• Stock Listings
• Standard costs
• Customer Balances
• Debtors listings
• Monthly Sales reports

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Exception Reports

• Action Oriented
• Monitors the performance of the business and any
  deviation from expected results triggers the
  generation of a report.
• Examples
• Stock Out Reports
• Bad debts Report
• Customer complaints

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Predictive Reports

• Used for planning what if models,
• Examples
• MRP
• Budgeting

20
Demand Reports

• Solicited by managers
• Normally produced on line and from a database
• Examples
• Correlation reports
• Capital expenditure Evaluations

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Internal versus External Information

• Interest rates
• Exchange Rates
• Competitor Actions
• Industry News
• Socio Economic Information
• Pricing
• Strategic Initiatives by Competitors
• Regulations

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Non Financial Performance Measurement
23
Performance Measurement

• Much of the data currently reported by Executive
  Information Systems is based on Financial
  Performance Measures. These have several
  shortcomings including
• There are based on the general accounting model
• They tend to be lagging as indicators of future
  performance
• They are often not used by mangers when their
  making decisions
• They can be manipulated or gamed both internally
  and externally.
• They tell an incomplete story.

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Non Financial Performance Measures

• The objective of many of these measures is to
  achieve a balanced score card form of reporting
  for management with financial, customer, quality
  and innovation information reported in tandem.
• Order Cycle Times
• Percent of Orders delivered on time
• Inventory Turnover
• Warranty Claim Rates
• Service Outages
• Order fulfilment accuracy
• Friendliness of customer service staff

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Non Financial Performance Measures

• Response time to customers calls
• Shareholder Value Analysis
• Design to market Time
• Employee Turnover
• Process Cycle Times
• Time to market
• Capacity utilisation
• Set up Times
• Order management Time
• Right First time

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• Manufacturing Information Systems

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Manufacturing Information System
Manufacturing Inventory Control
Master Production Scheduling
Design Engineering
Standard Costing
Materials Requirements Planning
Bill of Materials
Job Costing
Capacity Requirements Planning
Shop Floor Control
Labour Performance
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Manufacturing Information System

• Definition (same components as marketing)
• A computer-based system that works in conjunction
  with other functional information systems to
  support the firm's management in solving problems
  that relate to manufacturing the firm's products

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A Model of a Manufacturing System
Output subsystems
Input subsystems
Data Information
Accounting information system
D A T A B A S E
Internal sources
Industrial engineering system
Users
Environmental sources
Manufacturing intelligence subsystem
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An MRP II System
Other functional information systems
Order entry
Purchasing
Material requirements planning
Receiving
Billing
Accounts payable
Accounts receivable
General ledger
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An MRP System
Purchasing system
3. Capacity requirements planning
Customer order file
Order release report
Sales forecast file
4.Order release system
1.Production scheduling system
2. Material requirements planning system
Finished- goods inventory file
Order release report
Planning reports
Produc- tion capacity file
Performance reports
Exception reports
Shop floor control system
Changes to planned orders
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Computers in the Physical System

• CAD (a.k.a. computer-aided engineering)
• Design database
• CAM
• Robotics

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ACCOUNTING APPLICATIONS SOFTWARE
34
Introduction

• The term accounting applications software refers
  to packages which computerise the firms ledger
  accounting system and related functions such as
  payroll.
• The emphasis is on transaction processing hence,
  such software carries out a data processing
  function rather than an MIS or DSS function.
• The accounting applications software can often be
  used to provide summary reports which may be
  useful for managerial decision-making.

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The structure of accounting applications software

• Accounting applications software is generally
  modular in design. This means that the software
  can be purchased and operated in individual
  sections or modules (for example, a small
  business might decide to computerise only its
  sales ledger) but that where several modules are
  used simultaneously data is efficiently shared
  and transferred between them.
• For example, when data is entered to the sales
  ledger, it is posted automatically by the system
  to the nominal ledger if that module also exists.

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Accounting Information Systems
Word Processing
Order Processing and entry
Accounts Receivable
Fixed Assets and Depreciation
General Ledger
Payroll
Purchase Order Receiving
Inventory Management
Accounts Payable
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A Model of an Accounting Information System
Environment
Information
Management
Data processing software
Data
Database
Accounting Information System
Output physical resources
Transform
Environment
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Characteristics of the AIS

• Performs necessary tasks
• Standard procedures
• Detailed data
• Historical focus
• Provides minimal problem-solving information

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The AIS is the first information-oriented CBIS
subsystem to implement

• MIS Depends on a good AIS
• DSS Depends on a good AIS
• ES Depends on a good AIS

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The Financial Information System

• A computer-based information system that works in
  conjunction with other functional information
  systems to support the firms management in
  solving problems that relate to financial
  operations and status
• It provides information to persons both inside
  and outside of the firm

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A Model of a Financial Information System
Output subsystems
Input subsystems
Data Information
Accounting information system
Internal sources
Funds management subsystem
Internal audit subsystem
Users
Database
Environmental sources
Financial intelligence subsystem
43
More Prewritten Software Exists for the Financial
Area than Any Other

• Most is accounting in nature
• Both general business and personal productivity
  software

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Forecasting model
1.
The Budgeting Process
Sales forecast
Top management
2.
Approved sales forecast
Resource planning model
3.
Manufacturing requirements
Marketing requirements
Human resource requirements
Finance requirements
Information services requirements
Human resource manager
Information services manager
4.
Finance manager
Marketing manager
Manufacturing manager
Requested information services budget
Requested human resources budget
Requested manufacturing budget
Requested finance budget
Requested marketing budget
Top management
5.
Final organizational budget
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BUDGET REPORT AS OF JANUARY 31
MIDWEST REGION

CURRENT MONTH YEAR-TO-DATE
ITEM BUDGET
ACTUAL DOLLARS
BUDGET ACTUAL
DOLLARS SALARIES 23,500
22,000 1,500-
59,000 54,250
4,750- TRAVEL
8,250 9,000
750 23,500
28,100 4,600
ENTERTAINMENT 1,400
1,635 235
4,200 5,100
900 TELEPHONE
200 85
115 600
225 375 RENT
535
535 0
1,605 1,605
0 FURNITURE
0 0
0
420 505
85 SUPPLIES 625
410
215- 1,875
1,320 555- MISC.
400
620 220
1,200 1,963
765 TOTAL
34,910 34,285
625- 92,400
93,070 670
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INFORMATION REPORTING SYSTEMS IN MARKETING
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Marketing Information Systems
Customer Service Analysis
Sales Force Management
Logistics and Distriubution
Sales Performance Analysis
Promotion
Market Research
Budgeting
Product Analysis
49
Functional Information Systems Represent
Functional Physical Systems
Functional information systems
Human resource information system
Information resource information system
Marketing information system
Manufacturing information system
Finance information system
Human resources function
Information Services function
Marketing function
Manufacturing function
Finance function
Physical system of the firm
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Kotlers Information Flows
Marketing intelligence
Environ- ment
Internal marketing information
Firm
Marketing communications
51
Marketing Information System Model
Data
Information
Input subsystems
Output subsystems
Product subsystem
D A T A B A S E
Accounting informationsystem
Place subsystem
Internal sources
Marketing research subsystem
Promotion subsystem
Users
Price subsystem
Environmental sources
Marketing intelligence subsystem
Integrated-mix subsystem
52
The Product Life Cycle and Related Decisions
STAGES
Introduction
Growth
Maturity
Decline
Sales Volume
Should the product be introduced
Should the product be deleted
Should the product strategy be changed
53
Model Use Is Becoming More Balanced
Strategic planning level .17
Strategic planning level .30
Management control level .70
Management control level .54
Operational control level .16
Operational control level .13
1980
1990
Note The percentages are based on the number of
respondents ranking the particular management
levels first.
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Overall Support from the Marketing Information
System Is Becoming More Balanced
Strategic planning level .28
Strategic planning level .25
Management control level .57
Management control level .40
Operational Control level .31
Operational control level .17
1980
1990
Note The percentages are based on the number of
respondents ranking the particular management
levels first.
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• Human Resource
• Information Systems

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The HR manager is often a director who is not a
member of the executive committee.
The importance of the human resource function and
the human resources information system has grown
over the last ten years
57
Primary HR Activities
Education Training
Terminat- ion
Benefit Administration
Hiring
Recruiting
The Firm
Potential Employees
Employees
Retired Employees
Data Management
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Output subsystems
HRIS Model
Input subsystems
Work force planning subsystem
Data Information
Accounting information system
Recruiting subsystem
Internal sources
Human resources research system
Work force management subsystem
Users
HRIS Database
Environmental sources
Compensation Subsystem
Manufacturing intelligence subsystem
Benefits subsystem
Environmental reporting subsystem