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MIS Definition A computer-based system that makes information available to users with similar needs. 2.

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Presentation on theme: "MIS Definition A computer-based system that makes information available to users with similar needs. 2."— Presentation transcript:

1 MIS Definition A computer-based system that makes information available to users with similar needs. 2

2 Organizational Information Systems
Executive Information System (EIS) Marketing information system Manufacturing information system Financial information system Human resource information system 7

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

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

5 OVERTIME EARNINGS REPORT
An Overtime Earnings Report OVERTIME EARNINGS REPORT FOR WEEK ENDING AUGUST 19 OVERTIME EARNINGS Department No. Department Name Current Month Year-to-Date Receiving $ 2, $ 5,319.20 Inspection $ 1, $ 4,386.12 Materials Handling $ 3, $12,629.00 Tooling $ $ 1,049.00 Assembly $ $ Plating $ 3, $12,635.20 Shipping $ 5, $18,294.16 TOTALS $15, $55,105.48

6 SALES BY PRODUCT FOR THE MONTH OF JUNE
PRODUCT PRODUCT CURRENT MONTH YEAR-TO-DATE NUMBER NAME SALES SALES GASKET CENTER CASE $ 5, $ 31,764.00 MAINSHAFT , ,329.45 ST MOTION SHAFT , ,243.59 OIL SEAL REAR , ,450.07 LAYGEAR , ,709.03 HUB 5TH ,623.68 SHIFT FORK ,634.44 SYNCHRO RING 2ND , ,963.58 BUSH SHIFT LEVER OIL SLINGER

7 GROUPED BAR CHART Sales Revenue (c) GROUPED/MULTIPLE LINE CHART Years

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

11 Levels of Management Top Level Management Strategic Decision making
Middle Level Management Tactical Decision Making Lower Level Management Operational Decision Making

12 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

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

14 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
Information Attribute Scope Orientation Detail Source Accuracy Timescale Strategic Wide Future Low External Medium to long term Operational Narrow Historic High Internal Day to Day

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

18 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

19 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

21 Internal versus External Information
Interest rates Exchange Rates Competitor Actions Industry News Socio Economic Information Pricing Strategic Initiatives by Competitors Regulations

22 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.

24 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

25 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

26 Manufacturing Information Systems
1

27 Manufacturing Information System
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

28 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 14

29 A Model of a Manufacturing System
Output subsystems Input subsystems Data Information Production subsystem Accounting information system D A T B S E Internal sources Inventory subsystem Industrial engineering system Users Quality subsystem Environmental sources Manufacturing intelligence subsystem Cost subsystem 15

30 An MRP II System Order entry Purchasing Billing Receiving Accounts
Other functional information systems Executive information system Order entry Purchasing Material requirements planning Billing Receiving Accounts receivable Accounts payable General ledger 10

31 An MRP System Purchasing system 3. Capacity Bill of Customer
material file 3. Capacity requirements planning Customer order file Order release report Sales forecast file Planned order schedule Master produc- tion schedule 1.Production scheduling system 2. Material requirements planning system 4.Order release system Finished- goods inventory file Order release report Produc- tion capacity file Raw materials inventory file Planning reports Performance reports Exception reports Changes to planned orders Shop floor control system 8

32 Computers in the Physical System
CAD (a.k.a. computer-aided engineering) Design database CAM Robotics 2

33 ACCOUNTING APPLICATIONS SOFTWARE

34 Introduction The term accounting applications software refers to packages which computerise the firm’s 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.

35 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.

36 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

37 A Model of an Accounting Information System
Environment Information Management Data processing software Data Database Accounting Information System Input physical resources Output physical resources Transform Environment 3

38 Characteristics of the AIS
Performs necessary tasks Standard procedures Detailed data Historical focus Provides minimal problem-solving information 9

39 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 28

40

41 The Financial Information System
A computer-based information system that works in conjunction with other functional information systems to support the firm’s management in solving problems that relate to financial operations and status It provides information to persons both inside and outside of the firm 3

42 A Model of a Financial Information System
Output subsystems Input subsystems Data Information Forecasting subsystem Accounting information system Internal sources Internal audit subsystem Funds management subsystem Users Database Environmental sources Financial intelligence subsystem Control subsystem 4

43 More Prewritten Software Exists for the Financial Area than Any Other
Most is accounting in nature Both general business and personal productivity software 5

44

45 The Budgeting Process 1. 2. 3. 4. 5. Forecasting model Sales forecast
Top management 2. Approved sales forecast Resource planning model 3. Finance requirements Human resource requirements Information services requirements Manufacturing requirements Marketing requirements 4. Human resource manager Information services manager Finance manager Manufacturing manager Marketing manager Requested human resources budget Requested information services budget Requested finance budget Requested manufacturing budget Requested marketing budget Top management 5. Final organizational budget 29

46 AS OF JANUARY 31 MIDWEST REGION
BUDGET REPORT AS OF JANUARY MIDWEST REGION CURRENT MONTH YEAR-TO-DATE ITEM BUDGET ACTUAL DOLLARS BUDGET ACTUAL DOLLARS SALARIES $23, $22, $1, $59, $54, $4,750- TRAVEL , , , , ,600+ ENTERTAINMENT , , , , TELEPHONE RENT , , FURNITURE SUPPLIES , , MISC , , TOTAL $34, $34, $92, $93, 31

47 INFORMATION REPORTING SYSTEMS IN MARKETING

48 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 Physical system of the firm
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 3

50 Kotler’s Information Flows
Marketing intelligence Internal marketing information Environ- ment Firm Marketing communications 6

51 Marketing Information System Model
Data Information Input subsystems Output subsystems Product subsystem D A T B 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 Should the product strategy
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 Strategic planning level Management control level .70 Management control level .54 Operational control level Operational control level 1980 1990 Note: The percentages are based on the number of respondents ranking the particular management levels first. 32

54 Overall Support from the Marketing Information System Is Becoming More Balanced
Strategic planning level .25 Strategic planning level .28 Management control level .57 Management control level .40 Operational Control level Operational control level 1980 1990 Note: The percentages are based on the number of respondents ranking the particular management levels first. 33

55 Human Resource Information Systems
1

56 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 2

57 Primary HR Activities Employees Data Management The Firm Education
& Training Hiring Terminat- ion Benefit Administration Recruiting The Firm Potential Employees Employees Retired Employees Data Management 3

58 HRIS Model Recruiting subsystem HRIS Database Compensation Subsystem
Output subsystems 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 9


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