9

99C H A P T E R

Management Management Information SystemsInformation Systems

9

Management Information System (MIS)

Management Information System (MIS)An MIS provides managers with information and

support for effective decision making, and provides feedback on daily operations.

Output, or reports, are usually generated through accumulation of transaction processing data.

Each MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization.

9

Sources of Management Information (Figure 9.1)

9

Outputs of a Management Information System (Figure

9.2)Scheduled ReportsProduced periodically, or on a schedule (daily, weekly, monthly).

Key-Indicator ReportSummarizes the previous day’s critical activities and typically available at the beginning of each day.

9

Outputs of a Management Information System (Figure

9.2)Demand ReportGives certain information at a manager’s request.

Exception ReportAutomatically produced when a situation is unusual or requires management action.

9

Outputs of a Management Information System (Figure

9.2)

Drill Down ReportsProvide detailed data about a situation.

9

Guidelines for Developing MIS Reports (Table 9.1)

9

Characteristics of a Management Information

SystemProvides reports with fixed and standard

formats.Produces hard-copy and soft-copy reports.Uses internal data stored in the computer

system.End users are able to develop their own

custom reports.Requires formal requests from users.

9

Management Information Systems for Competitive

AdvantageProvides support to managers as they

work to achieve corporate goals.

Enables managers to compare results to established company goals and identify problem areas and opportunities for improvement.

9

MIS and Web Technology

Data may be made available from management information systems on a company’s intranet.

Employees can use browsers and their PC to gain access to the data.

9

Functional Aspects (Figure 9.3)

MIS is an integrated collection of functional information systems, each supporting particular functional areas.

9

Functional Area MISs Integrated Through a Common Database (Figure

9.4)

9

Financial MIS (Figure 9.5)

Provides financial information to all financial managers within an organization.

9

Inputs to the Financial MIS

Strategic plan or corporate policiesContains major financial objectives and often

projects financial needs.Transaction processing system (TPS)

Important financial information collected from almost every TPS - payroll, inventory control, order processing, accounts payable, accounts receivable, general ledger.

External sourcesAnnual reports and financial statements of

competitors and general news items.

9

Financial MIS Subsystems and Outputs

Financial SubsystemsProfit/loss and cost systemsAuditingInternal auditingExternal auditingUses and management of funds

9

Manufacturing MIS (Figure 9.6)

9

Inputs to the Manufacturing MIS

Strategic plan or corporate policies.The TPS:

Order processingInventory dataReceiving and inspecting dataPersonnel dataProduction process

External sources

9

Manufacturing MIS Subsystems and Outputs

Design and engineeringMaster production schedulingInventory controlManufacturing resource planningJust-in-time inventory and manufacturingProcess controlComputer-Integrated Manufacturing (CIM)Quality control and testing

9

Master Production Schedule for Disks and CDs

(Figure 9.7)

9

Industrial Control Chart (Figure 9.8)

Used to monitor product quality in an industrial chemical application. Product variances exceeding certain tolerances cause those products to be rejected.

9

Marketing MIS (Figure 9.9)

Supports managerial activities in product development, distribution, pricing decisions, and promotional effectiveness.

9

Inputs to Marketing MIS

Strategic plan and corporate policiesThe TPSExternal sources:

The competitionThe market

9

Marketing MIS Subsystems and Outputs

Marketing researchProduct developmentPromotion and advertisingProduct pricing

9

Typical Supply and Demand Curve for Pricing Analysis (Figure

9.10)

9

Reports Generated to Help Marketing Mangers Make Good Decisions (Figure

9.11)

9

Human Resource MIS (Figure 9.12)

Concerned with all of the activities related to employees and potential employees of the organization.

9

Inputs to the Human Resource MIS

Strategic plan or corporate policiesThe TPS:

Payroll dataOrder processing dataPersonnel data

External sources

9

Human Resource MIS Subsystems and Outputs

Human resource planningPersonnel selection and recruitingTraining and skills inventoryScheduling and job placementWage and salary administration

9

Other MISs

Accounting MISsProvides aggregated information on accounts

payable, accounts receivable, payroll, and other applications.

Geographic Information Systems (GISs)Enables managers to pair pre-drawn maps or

map outlines with tabular data to describe aspects of a particular geographic region.