Structure of MIS

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


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


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


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


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


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

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Pro

duc

tion Lo

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ics

Fin

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cc

Synthesis Structure of MIS

Common programs

Thank you

Structure of MIS

Documents

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