MIS IN MANUFACTURING INDUSTRY

ACKNOWLEDGEMENT

The one thing that matters is the effort. It continues, whereas the end to be attained is but an illusion of the climber, as he fares on and on from crest to crest; and once the goal is reached it has no meaning -Antoine de Saint-Exupry, The Wisdom of the Sands.I take this opportunity to express my gratitude to all those people who have supported me throughout this project. Without their help, this project would not have been possible. I would first like to thank Mr. Sulekh Jain Chairman and Mr. Vinod Jain Managing Director of MAGPPIE INTERNATIONAL LIMITED for providing an opportunity to do my summer internship in the eminent company. Even I would like to thank to Mr Avninder Bhushan Prasad VP Finance who supported a lot during the internship period. A heartiest thank to my guide Mr. Vinod Arora Senior Manager Finance for his invaluable guidance and learning throughout the process of this research. His guidance has helped adopting the right methodology and select appropriate variables for study. Without his sound and prompt guidance this project may not have achieved the required depth. I am equally thankful to my college, Janakidevi Bajaj Institute of management Studies for providing me the necessary platform, the tools and the support from professors without which this project would not have taken shape. I owe my deep sense of gratitude and sincere thanks to all of them. Thank you.

Every act of conscious learning requires the willingness to suffer an injury to one's self-esteem. That is why young children, before they are aware of their own self-importance, learn so easilyThomas Szasz.

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EXECUTIVE SUMMARY

Decision making is an integral part of the functioning of any organization. To facilitate Decision making in this ever-competitive world it is imperative that managers have the right information at the right time to bridge the gap between need and expectaton. To facilitate better flow of i information adequate Management Information Systems (MIS) is the need of the hour. Thus it is important to have an understanding of the MIS followed in an organization by all levels of management in order to take effective decisions. A Management Information System collects and processes data (information) and provides it to managers at all levels who use it for decision making, planning, program implementation, and control. The MIS has many roles to perform like the decision support role, the performance monitoring role and the functional support role. This project is about MIS Report of a Manufacturing Industry. An effort is made to cover every aspect of accounting required in a Manufacturing Industry. To get a realistic and holistic view of the MIS, we studied the MIS of Magppie International Limited. To get a more detailed understanding of a particular function of the company, we studied the need, uses and benefits of MIS with respect to the Accounting Department of the company. Inventory Management was the prime focus of this study. Magppie, a design led brand for premium home accessories, was launched in the year 2000. This Indian enterprise is an offshoot of a 30 year old family run business of rolling stainless steel. Significant improvements have been made in the application systems and infrastructure. The MIS has greatly facilitated and synchronized the information flow in the organization and the management feels that is has played a role in the growth and inc reased performance of the company.

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Lists of Tables and Figures

TABLES3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 Profit And Loss Account OF Magppie.....................................................................................45 Example of classification of B/S (Horizontal)......................................................................47 Example of classification of B/S (Vertical)..........................................................................47 Normal balance Increase and Decrease For B/S.................................................................48 Header of the B/S............................................................................................................52 B/S with Related Captions................................................................................................52 Balance Sheet Of Magppie...............................................................................................55 Debtors Ageing Report of Magppie...................................................................................60 Creditors Ageing Report of Magppie.................................................................................67 Details showing Raw Material Consumption......................................................................70 Change in Finished and Semi Finished Goods....................................................................72 Annual Stock Valuation Details of Magppie.......................................................................77

FIGURES1.1 1.2 2.1 2.2 3.1 3.2 3.3 4.1 4.2 4.3 4.4 6.1 Company s Organizational Chart........................................................................................15 Awards Received By the Company...................................................................................17 MIS Design.......................................................................................................................19 MIS in a Manufacturing Company.....................................................................................24 Architecture of MIS at Magppie........................................................................................34 Graph showing Optimum Level of Credit Policy.................................................................56 Example of Raw Material Used in a Cart............................................................................68 Inventory Package Diagram................................. .............................................................80 Inventory Package Issue Diagram.....................................................................................81 Inventory Purchase Diagram....................................... ......................................................82 Data Processing Diagram..................................................................................................83 Benefits of MIS in a Company....................................... ....................................................86

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Table of Contents

Acknowledgement Executive summary List of Tables and Figures

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1. Chapter 1: About Magppie International Limited .......................................81.1. Introduction...........................................................................................................8 1.2. Industry Outlook....................................................................................................91.2.1.Manufacturing Process.....................................................................................................9 1.2.2. Raw Material....................................................................................................................9 1.2.3. Power..............................................................................................................................9 1.2.4. Pollution Control & Environment Protection...................................................................9

1.3. Sales & Marketing................................................................................................101.3.1.International Brand Business..........................................................................................10 1.3.2.Domestic........................................... ..............................................................................11

1.4. Promoters............................................................................................................11 1.5. Marketing Report For Magppie........................... .................................................121.5.1.USA............................................................................................................................. ....12 1.5.2.Europe............................................................... .............................................................13 1.5.3.Magppie In India.............................................................................................................14

1.6. Organizational Chart............................................ ................................................14 1.7. Magppie Undertakings.........................................................................................16 1.8. Awards and Recognisation...................................................................................16 1.9. Testimonials........................................................................................................18

2. Chapter 2: About Management Information System.............................192.1. Definition of MIS..................................................................................................19 2.2. Overview..................................................................................................... ........20 2.3. Need for MIS........................................................................................................21 2.4. MIS for Manufacturing Industry...........................................................................212.4.1.Manufacturing Industry Requires MIS Because..............................................................22 4|Page

2.4.2.Inputs to the Manufacturing MIS...................................................................................23 2.4.3.Manufacturing M