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MIS Definition

MIS Definition . A computer-based system that makes information available to users with similar needs. Organizational Information Systems. Executive Information System (EIS). Manufacturing information system. Financial information system. Human resource information system.

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MIS Definition

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

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

  5. 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

  7. GROUPED BAR CHART GROUPED/MULTIPLE LINE 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

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

  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

  27. 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

  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

  29. Production subsystem Inventory subsystem Quality subsystem Cost subsystem 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

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

  31. Bill of material file Planned order schedule Master produc- tion schedule Raw materials inventory file 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

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

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

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

  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

  40. 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

  41. Forecasting subsystem Control subsystem 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

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

  43. Forecasting model 1. The Budgeting Process Sales forecast Top management 2. Approved sales forecast Resource planning model 3. Manufacturing requirements Marketing requirements Finance requirements Human resource 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

  44. 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+

  45. INFORMATION REPORTING SYSTEMS IN MARKETING

  46. Marketing Information Systems Customer Service Analysis Sales Force Management Logistics and Distriubution Sales Performance Analysis Promotion Market Research Budgeting Product Analysis

  47. 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

  48. Kotler’s Information Flows Marketing intelligence Internal marketing information Environ- ment Firm Marketing communications

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