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Structure of MIS
Lai Prabhakar
2Structure of MIS
Structure of MIS
Operating Elements Management information system support for
decision making MIS Structure based on Management Activity MIS Structure based on Organization
Function
3Structure of MIS
Operating elements of MIS
Physical Components- Hardware - Software- Database- Procedures- Operations personnel
4Structure of MIS
Operating elements of MIS
Processing functions
- Process transactions
- Maintain Master files
- Produce reports
- Process inquiries
- Process interactive support applications
5Structure of MIS
Process transaction TransactionTransaction
document
Files
Process transactions
6Structure of MIS
Update master files
Master file changes
Master
Files
Maintain Master Files
Transaction data
Updated MasterFiles
7Structure of MIS
Prepare reportFilesReport
Produce reports
8Structure of MIS
Handle inquiry
Files
Inquiry response
Process inquiries
Inquiry
Inquiry response
9Structure of MIS
Decision maker or analyst
Decision model processing
Model input and output
Process interactive support applications
Structure of MIS
Models
Data
Model
f xx
( ) exp
1
2
1
2
2
020406080
100
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Actual Forecast
Decision
Output
Strategy
Operations
Tactics
Company
Structure of MIS
Optimization
1 2 3 4 5 6 7 8 9 101
3
5
0
5
10
15
20
25
Ou
tpu
t
Input Levels
Maximum
Model: definedby the data pointsor equation
Control variables
Goal or outputvariables
File: C08Fig08.xls
Why Build Models? Understanding the
Process Optimization Prediction Simulation or "What If"
Scenarios Dangers
Structure of MIS
Prediction
0
5
10
15
20
25
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Time/quarters
Ou
tpu
t
Moving AverageTrend/Forecast
Economic/regressionForecast
File: C08Fig09.xls
Structure of MIS
Simulation
0
5
10
15
20
25
1 2 3 4 5 6 7 8 9 10
Input Levels
Ou
tpu
t
Goal or outputvariables
Results from alteringinternal rules
File: C08Fig10.xls
Structure of MIS
DSS: Decision Support Systems
sales revenueprofit prior154 204.5 45.32 35.72163 217.8 53.24 37.23161 220.4 57.17 32.78173 268.3 61.93 47.68143 195.2 32.38 41.25181 294.7 83.19 67.52
Sales and Revenue 1994
Jan Feb Mar Apr May Jun0
50
100
150
200
250
300
LegendSalesRevenueProfitPrior
Database
Model
Output
data
to a
nalyz
e
results
File: C08Fig11.xls
Structure of MIS
Central Computer
Sales ReportsPOS
Terminals/Registers
Customers
EDI
Supplier
Bank
AdditionalStores
Process Control
Transactions
Structure of MIS
Data Capture
Central Computer
Sales ReportsPOSCashRegisters
Customers
EDI
Supplier
Bank
Process Control
AdditionalStores Strategy
Tactics
Operations
Warehouse InventoryManagement
CEO Information
17Structure of MIS
Operating elements of MIS
Output for users
- Transaction documents or screens
- Preplanned reports
- Preplanned inquiry responses
- Ad hoc reports and inquiry responses
- User machine dialog results
18Structure of MIS
Transaction document type
Informational – Report or confirms that action will be or has been taken. e.g. sales order
Action – Requests or instructions for action e.g. purchase order
Investigational – Reports exceptions, error, or other conditions that may require investigation. Used for control and future reference.
19Structure of MIS
Information Types of Report, inquiry, dialog results Monitoring information – confirms that actions have
been taken, may provide a basis for problem finding and diagnosis and may lead to action.
Problem finding information – presented in a format that promotes identification of problems
Action information – presented with action specified or implied
Decision support – performing analysis and making a decision
20Structure of MIS
MIS support for decision making Structured, Programmable Decisions Unstructured, Nonprogrammable Decisions
21Structure of MIS
Decision LevelsDecision Level Description Example Type of
Information
Strategic Competitive advantage, become a market leader. Long-term outlook.
New product that will change the industry.
External events, rivals, sales, costs quality, trends.
Tactical Improving operations without restructuring the company.
New tools to cut costs or improve efficiency.
Expenses, schedules, sales, models, forecasts.
Operations Day-to-day actions to keep the company functioning.
Scheduling employees, ordering supplies.
Transactions, accounting, human resource management, inventory.
Structure of MIS
12 3
Making Decisions
Decision Process Collect Data Identify Problems & Opportunities Make Choices
23Structure of MIS
MIS structure based on management activity
Strategic planning Activities
Definition of goals, policies,
Determination of objectives
Market strategy
Product mix
Long term planning
Choice of business direction
24Structure of MIS
Mission Reason for being – it is a statement of the basic purpose or purposes for which the organization exists. e.g. “ to supply the energy to the consumer”
Goals General statement of what is to be accomplished. e.g. “reduce time to respond to service request without increasing number of service personnel”
Strategies General approaches to achieving goals. e.g. “becoming low cost producer in its industry”
25Structure of MIS
Objectives Statement of measurable results to be achieved. e.g. “specific increases in earning per share”
Tactics More specific guides to actions that would implement strategies. e.g. “increasing investment in automation”
Policy General guidelines that direct & constrain decision making within a organization. e.g. “promoting from within”
Rules & Procedures
More specific statements that direct decision making. e.g. “hiring employees, rules protecting employees jobs”
Structure of MIS
MIS structure based on management activity
Porter’s External Agents Customers Suppliers Competitors Government
Structure of MIS
Executive IS
ProductionDistribution
Sales
Central Management
Executives
DataData
SalesProduction CostsDistribution Costs
Fixed Costs
Production CostsSouthNorth
Overseas
0500
100015002000250030003500400045005000
1993 1994 1995 1996
South
North
Overseas
Production: NorthItem# 1995 1994
1234 542.1 442.32938 631.3 153.57319 753.1 623.8
Data for EIS
Data
Data
29Structure of MIS
Management control and tactical planning
ActivitiesAcquisition of resources,
Organization of resources
Structuring of work
Acquisition and training of personnel
Acquisition tactics, new products, new plants
Monitoring of budgets
MIS structure based on management activity
30Structure of MIS
Operational planning and control
Activities
Use of existing facilities and resources to carry out activities within budget constraints
Pricing
Production levels
Inventory levels
MIS structure based on management activity
31Structure of MIS
Information requirements by level of management activity
Characteristics of information
Operational control
Management control
Strategic planning
Source Largely internal External
Scope Well defined, narrow
Very wide
Level of aggregation
Detailed Aggregate
Time horizon Historical Future
Currency Highly current Quite old
Accuracy High Low
Frequency of use
Very frequent infrequent
32Structure of MIS
MIS based on Organizational Function
Marketing System Production System Logistics System Personnel System Finance and Accounting System Information Processing System
33Structure of MIS
Marketing System
Transaction Operational Management Strategic
Sales order
Promotion orders
Hiring and training of the sales force, day-to-day scheduling of sales and promotion efforts
Periodic analyses of sales volumes by region, product, customers.
Comparison of overall performance against a marketing plan
Data on customers, competitors, competitors products, sales force requirements
New markets
New marketing strategies
Customer analyses
Competitor analyses consumer survey information, income projection, technology projections
34Structure of MIS
Production System
Transaction Operational Management Strategic
Production orders
Assembly orders
Finished parts tickets
Scrap tickets
Time keeping tickets
Reports comparing actual performance to the production schedule
Highlighting areas where bottlenecks occur
Summary reports which compare overall planned or standard performance to actual performance
Alternative manufacturing approaches
Alternative approaches to automation
35Structure of MIS
Logistic System
Transaction Operational Control Management Strategic
Purchase requisitions
Purchase orders Manufacturing orders
Receiving reports Shipping orders Bills of lading
Reports such as - Past due purchase
Past due shipment to customers
Out of stock items Overstocked items
Inventory turnover reports
Vendor performance summaries
Comparison between planned and actual inventory levels
Cost of purchased items
Inventory turnover
New distribution strategies
New policies with regard to venders
Make versus buy
Distribution alternatives
36Structure of MIS
Personnel System
Transaction Operational Control Management Strategic
Employment requisition
Job description
Training specification
Personnel data
Hours worked
Paychecks
Benefits
Termination notice
Requires decision procedures for action such as –
Hiring, training, termination, changing pay rates, issuing benefits
Reports and analyses showing the variances between planned and actual performance such as – cost of recruiting, number of hired employees, cost of training, salary paid
Evaluating alternative strategies for recruiting, salary, training, benefits
Structure of MIS
HRMManagement
Managers
Employees
Customers
Government
ProcessPayrollBenefitsVacation
CompileMerit
Evaluations& SalaryChanges
JobApplicants
ProduceManagement
EmployeeReports
ScreenJobs &
Applications
ProduceGovernment
Reports
Employee Data Files
EmployeeData
Evaluations
Salary
Merit &Salary
Sales Data &Commission
EmployeeData
Merit
Applicant Data
EmployeeSummaries
Job &ApplicantData
EEO Data
GovernmentReports
Management Reports
Structure of MIS
Accounting
Financial data and reports What do things really cost? The accounting cycle Inventory Checks and balances
Double-entry Separation of duties Audit trails
Structure of MIS
Accounting Software General Ledger
Sample chart of accounts Automatic posting Automatic entry of vendors Fiscal years Keep past data books open Post to prior years Allocate department expenses
Accounts Receivable Automatic early discounts Interest on late payments Multiple shipping addresses Sales tax Automatic reminder notices Automatic monthly fees Keep monthly details
Accounts payable Check reconciliation Automatic recurring entries Monitor payment discounts Select bills from screen Pay by item, not just total bill
General Features Printer support Use of preprinted forms Custom reports Custom queries Security controls Technical support costs
Structure of MIS
Accounting
Suppliers
Customers
Management
Shareholders
Banksand
Creditors
Departments& Employees
Sales &Accounts
Receivable
ProduceManagementAccounting
Reports
ProduceShareholder
Reports
Sales & Receivables
Inventory ChangesPurchases &Payables
Loans & Notes
Expenses Equity
ShareholderReports
ManagementReports
ProductInventory
Orders &Accounts Payable
InventoryManagement,& Fixed Asset& Cost Acct.
Payroll &EmployeeBenefits
CashManagement,Investments,
ForeignExchange
Supply &In-processInventory
Governments
TaxFiling &
Planning
Strategic& TacticalPlanning
Inventory Changes
Payables
Capital Acct
Sales Tax
Tax Filings
Tax data
ReceivablesInventory &Assets
Payroll
Planning Reports
PlanningData
41Structure of MIS
The Role of Accounting
Transaction Data Purchases, Sales, Loans, and Investments Inventory Control Process and Controls
Double-Entry Systems Separation of Duties Audit Trails
Structure of MIS
Traditional Management
CEO
VPFinance
VPMarketing
VPAccounting
VPHRM
VPMIS
Layers of middle managers
Customers
Commands
Analyze data
Condensed reports
Collectdata
Structure of MIS
DecentralizationManagement Team
CEO
FinanceTeam
MarketingTeam
AccountingTeam
HRMTeam
SalesTeam
Franchise
Strategy
Methodology/Rules
Customers
CorporateDatabase
&Network
VPFin
VPMrkt
VPAcct
VPHRM
VPMIS
Structure of MIS
Business Integration
Vendors Customers
Design &Engineering
Marketing
Distribution
Manufacturing
Purchasing
Administration & Management
HRM Accounting Finance MIS
Just-in-Time
Quality control & Custom orders
QuickResponse
Designs and Quality
MassCustomization
Demand-pull
Design feasibility& production costs
product planning
partnerships& jointdevelopment
partnerships& jointdevelopment
planning& monitoring
planning& monitoring
45Structure of MIS
Model base
Common Applications
DBMS
Strategic
Management
Operational control
Transaction processing
Unique files
Common data files
Database
Application software for S
ale
s
&
Ma
rke
tin
g
Pro
duc
tion Lo
gist
ics
Fin
&
A
cc
Synthesis Structure of MIS
Common programs
Thank you