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Uses of DSS in FinancialManagement
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In the words of Steven Berger,Financial Management is
strategisingthe organisations fnancial directionsas well as the
perormance o its day-to-day fnancial operations.
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Functions
It provides online availability of fundsposition and balances.
It instantlycalculates more than a doenimportant aspects to
indicate the!nancial health of a company.
It helps in recording, classifying,
summariing, analysing and reportingon the !nancial transactions
of theorganisation.
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Day to day record "eeping is automaticallydone by the accounting
module.
For any new business opportunity, it does
the cost bene!t analysis. It forces the top management to
rationalie
the policies related to depreciation,inventory and in#ation.
It can easily compare the !nancial health ofa company with its
competitors or amongvarious divisions or lines of business.
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It can indicate the productiondepartment about the amount
ofinventory the company can holdwithout losing on li$uidity
front.
For a company investing in stoc"mar"et, it studies the #uctuant,
non%
linear and chaotic characteristics ofthe stoc" options and helps
avoidmanual errors during analysis.
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It gives managers the ability to analyse presentmar"et and
economic trends to forecast the futuretrends and ma"e informed
decisions regarding thebusiness and its operations.
It allows for careful !nancial planning and ta&planning.
It is not possible to analyse the portfolio of acompany at any
point of time. 'owever this hasbecome possible with the portfolio
managementtool in DSS.
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Uses of DSS in (roduction
(roduction Management refers toapplication of management
functionsto the production in the factory.
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)ptimally plan, implement, schedule,se$uence, and supervise all
processes ofproduction.
Identify and solve e&ceptions anddeviations in performance
in aneconomical way and in real time.
Institutionalise lean manufacturing andsi& sigma processes
and monitorproduction to drive continuousimprovement.
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Develop members of sta* e+ciency andbuild a superior class ob
atmosphere.
-apturing, management and analysis of
production related data becomes easierespecially in very large
production houses.
It trac"s and matches the purchase order,inventory receipts and
invoices generated
by the vendors. It also helps in ordertrac"ing from time of
acceptance of anorder till order ful!llment.
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It maintains the revenue cycles from invoicetill cash
receipt.
Use of data related to past trends in
production and forecasting techni$uesinstead of primarily
informed, intelligentassumptions to predict about futureproduction
needs.
In case of a company having more than oneproduct, it can decide
the optimum mi& of theproduct using linear programming
techni$ue.
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It helps in deciding the optimum order$uantity and reorder level
for each of thestoc" item using inventory control tool.
In case the production re$uirement is#uctuating from time to
time, it helps inplanning, procurement, monitoring andcontrol of
inventory.
It uses techni$ues li"e (/0 and -(M to helpa proect manager in
(lanning, Schedulingand -ontrolling the time re$uired in
!nishing
a proect.
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It complies with environmental,health and safety standards.
1eeps a record of productiondecisions ta"en for future
reference.
Six Sigma2A systematic method orimproving the operational
perormance o an organization byeliminating variability and
waste.
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Linear Programming:A mathematicaltechnique used to obtain an
optimumsolution in resource allocation problems
such as production planning. Programme Evaluation and Review
Technique: !"#$ is a method to analyse theinvolved tas%s in
completing a given pro&ect
especially the time needed to complete eachtas% and identiying
the minimum timeneeded to complete the total pro&ect.
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Critical Path Method:'t is a pro&ectmanagemnt technique
which analyseswhat activities have the least amount o
scheduling the (e)ibility *i.e. are themost mission critical+
and then predicts
pro&ect duration schedule based on theactivities that all
along the ,critical path.
Activities that lie along the critical pathcannot be delayed
without delaying thefnish time or the entire pro&ect.
