Management Information System(MIS222)

FINAL PROJECT REPORT

GROUP MAMBERS

M.HASHAAM WAQAR (13106)

MUHAMMAD AWAIS (12109)

SHAHEER SHAHID (12133)

NABEEL JAVED (11576)

Nadeem Arshad (11328)

Dated: 27 th DEC,2012

SUBMITTED TO: SIR Dr. Zeeshan Bhatti

Table of Contents

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ACKNOWLEDGEMENT---------------------------------------------------------------------3

EXECUTIVE SUMMARY--------------------------------------------------------------------4

HISTORY----------------------------------------------------------------------------------------5

McDonald’s Pakistan History-----------------------------------------------------------------5

Mission Statement------------------------------------------------------------------------------6

Vision Statement--------------------------------------------------------------------------------6

Product Line-------------------------------------------------------------------------------------6

Management Information System------------------------------------------------------------7

Applications of Information System---------------------------------------------------------7

Transaction processing system----------------------------------------------------------------7

Decision Support System----------------------------------------------------------------------9

Payment system---------------------------------------------------------------------------------9

Policies, Procedures and Systems-------------------------------------------------------------9

Benefits of Information System--------------------------------------------------------------10

Made for you system---------------------------------------------------------------------------10

Hyperactive Bob system-----------------------------------------------------------------------10

POS (point of sale) system--------------------------------------------------------------------11

RTTS---------------------------------------------------------------------------------------------11

PMIS----------------------------------------------------------------------------------------------11

Other interesting issues about Information System at McDonald’s----------------------12

Suggestions and Recommendation--------------------------------------------------------------------------------13

Refferences--------------------------------------------------------------------------------------14

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ACKNOWLEDGEMENT

First of all we are thankful to Almighty Allah who gave us strength for the completion of this

project.

Next, we are heartedly thankful to our most respected and honored course instructor of

Management Information System, Sir Dr.Zeeshan Bhatti who gave us an opportunity to do this

project and whose guidance and efficient teaching efforts have made this project possible.

Our study group greatly acknowledges the cooperation and assistance of all those employees of

McDonald’s, whose favors have helped us to precede our project, for that we are very grateful.

EXECUTIVE SUMMARY:-

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This project scrutinizes the management information system of a multi-national company

according to the IT principles. In this regard, the company has been analyzed from different IT

management perspectives. This project has been divided into four parts. In first part, the history

of McDonald has been given. In second part, the introduction of McDonald Group has been

given. In third part, the introduction of McDonald along with its different perspectives has been

given and in forth part, conclusion has been given

HISTORY:-

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McDonald’s is the leading global foodservice retailer with more than 30,000 local restaurants serving nearly 47 million people in more than 121 countries each day. Aiming to be the world’s best quick service restaurant experience, McDonald’s started its operation in Pakistan in 1998 and is a leading fast food service retailer for its valued customers. With the strong believe in the phrase “when it’s green it’s growing.

McDonald’s Pakistan History:-

McDonald’s first restaurant opened its door to the people of Pakistan in September 1998 in Lahore. This launch was met with unprecedented enthusiasm from the citizens of Lahore, who are known for their liveliness, vigor and penchant for quality food.

Mission statement

Vision statement

Management Information System of McDonald’s

Mission Statement:-

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To have the best employee stuff and deliver an excellent service

Vision Statement:-

"McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile."

Product Line:-

Fast-food:-

hamburgers  

chicken

 french-fries

 soft drinks 

coffee

 milkshakes 

 salads 

desserts

breakfast

Management Information Systems:-

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Introduction:

Mid- and upper-level managers rely on a variety of information systems to support decision-making activities, including management information systems, decision support systems.

Management information systems involve three primary resources: technology, information, and people, and the most important resource are people, as people are the customers and no business would mean anything without its customers.

Management Information System is considered as one of the most important aspects of organizations and companies in the world, due to the different impact of different aspects such as globalization, improving communication technologies as well as the variability of the demands of the customers.This project will focus on the different issues and aspects of McDonalds regarding IT and Management Information System.

Applications of Information Technology in McDonalds:-

McDonalds is considered as one of the most successful as well as famous brands in the whole world. Improving the application of IT and Information System on the menu of corporate goals of the company is considered as one of the priorities of the company.

The transaction processing and recording and financial management is one of the most important aspects of the company where in IT is being applied. In addition, it can also help to improve the customer relationship management, sales and marketing activities by having a real-time transmittal of their restaurant inventory, point-of-sale or POS as well as financial data.

POS System in McDonald’s:-

It's a very useful way to finish the order quickly with less error. Also it helps the worker in front of the screen not to forget asking customer about everything for example the size, number of sandwiches and if making the order take away or not. Furthermore, it's all done by a system that can save everything for the manager to check about the profits, loses or amount of order per day at the end of each month or at the end of the year.

Transaction Processing Systems(TPS):-

Most of an organization’s daily activities are recorded and processed by its transaction processing system (TPS), which receives input data and converts them into output information intended for various users. Input data are called transactions events that affect a business.

I think that McDonald’s are using the right information systems for their companies for example by using the TPS it let the employees have more time for their customers

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and it also help them by saving time with applying this system , its faster and more accurate to enter any data.

Transaction processing system also helps McDonalds in keeping track of their suppliers as it record relevant information about suppliers such as supplier name, address, the quality of the items purchased and finally the invoice amount. This helps in reducing the possible complexity that the employees may face in physically keeping contacts with all the suppliers and so eases process of ordering when in need.

A financial transaction is an economic event, it affects the firm’s assets, is reflected in its accounting statements, and is measured in monetary terms. Sales of goods to customers, purchases of inventory from suppliers, and salaries paid to employees are all financial transactions. Everything else is a nonfinancial transaction. The marketing department, for example, might add some demographic data to its customer database. The information would be processed by the firm’s TPS, but it wouldn’t be a financial transaction.

Figure “Transaction Processing System” illustrates a TPS in which the transaction is a customer’s electronic payment of a bill. As you can see, TPS output can consist not only of documents sent to outside parties (in this case, notification of payment received), but also of information circulated internally (in the form of reports), as well as of information entered into the database for updating.

IT is being applied in order to process the order and payment of their customers in efficient and fast manners, then the data that had been gathered in their POS can be used in order to know the

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flow or the trends of the customers buying behavior that can help the company to deal and meet the demands and wants of their customers.

Decision Support System(DSS):-

By using the DSS it helps the company choose or make the right decisions based on the quality of the data McDonald’s has used WiFi in their restaurants to gather information about customer practice and lengths of stay and sales, i think they were really brilliant with this idea with using this system they can easily know how much the customers are staying and the more they stay which means they are satisfied. And i think by using the MIS the managers of McDonald’s can easily look for future oriented .

Payment System:

McDonald's is always looking for new and innovative ways to use technology to improve customer service (www.qsrweb.com)." "McDonald is expanding its use of an electronic system that lets customers pay for their orders using a cash-free keytag system originally developed for Mobil gas station (www.ecommercetimes.com). The Speedpass is a transporter that can be kept on a customers key chain." When a purchase is made, the gadget automatically sends a signal to the credit card account,so that the purchase can be included on the customer's next monthly bill. This process will allow McDonald's to move rapidly when dealing with orders and purchases.

In addition to that, the financial data that had been gathered from the POS will be helpful in knowing the performance of individual store as well as the overall performance of the company in the world that will be important in order to show the financial condition of the company to their stakeholders.

Policies, Procedures and Systems:-

The entire management information system or MIS of the company focuses on the three different purposes of information such as the strategic that mainly focus on the key ratios, strategic plans and marketing analysis that can help to analyze the current situation of the company that will help for establishments of strategies. The technical information focuses on the variance analysis and exception reports that help to compare the development of the company, based on past data. Above all, the operational information pertains on the current information such as the invoice, customer orders, stock records and sales.

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Benefits of Information System:-

McDonalds used information systems to increase the productivity and provide its customer the food with a very good quality that improved their kitchen with an advanced technology so that the meal arrive fresher, tastier and hotter each time they order it. Also, McDonalds used the information system to reduce the effort, cost and time they need to do their processes. Furthermore, by using this information system, McDonalds have the ability to maintain its customer and attract more customers. In this report I will write about systems that help McDonalds to be one of the best restaurants in the world which are:

1- Made for you system:-

In this system” the meal prepared after the person orders the meal not before” [1] which mean that while you are make the order the worker in front of the screen click on the what you order and the order goes immediately to the kitchen where the chef made the meal just on the time he saw the order not before so that the meal be more tastier and fresher arrives to the customer in a few minutes.

2- Hyperactive Bob system:-

This system “based on the computer vision and artificial intelligence systems employed by robots, to manage the kitchens at so-called quick-service restaurants”[2].In this system they use a cameras on the roof of the building that monitor the entrance of the McDonald’s restaurants and the parking lots to see the number of people are coming to the restaurant when the workers are busy to know how fast they need to be to make the meal and what amount of meats, chickens, fries and other things they use needed and to make an expectation of meals that must be ready at a period of time if there is lots of people to have their satisfaction.

3- POS (point of sale) system:-

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Its computer software used in a touch screen that Macdonald’s restaurants use or handheld devices. This system helps McDonalds to track the real time transaction and used to speed the business process to ensure fast and accurate order for example sending the order to kitchen screen and processing the credit card payment and other process that must be accurate. Also, the cashier immediately knows what payment is due and the kitchen knows the coming up orders and for how long a customer waited.

3 systems for McDonalds to manage records:

1. Store management system (SMS)2. Restaurant training tracking system (RTTS)3. People management information system (PMIS)

RTTS:-

For management team or above:

Stored information: management team’s training record and system

e.g. self-study, training course in Hamburger U

Can check the level status of manager i.e. which course is suitable for this level, on-line test

PMIS:-

Stored info: whole shop’s employment database

1. Payroll,2. Training3. Scheduling

Transfer: crew allocation

Assistance shop manager shop manager

Change info Approve info

Final Information

They have different login level

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Auto analyze statistic of crew records e.g. pay leave, annual leave

In addition there are different departments that are responsible in generating the reports regarding the MIS such as the financial department, purchasing department, Human Resource department and sales and marketing department. The financial department focuses on the different reports regarding accounts, debits and payroll; the purchasing focuses on the orders and stock selection; the HR department focuses on the reporting regarding the levels of staffing, absenteeism, skills as well as shortage; and the sales and marketing produce the reports regarding the turnover, sales ration and market intelligence. All of the said reports can help to analyze the overall performance of the company that can help the decision-making process.

Other interesting issues about Information System at McDonald’s:-

1. First issue is to know who has access to the information system because it is important to protect this system from potential competitors so it is better to implement a more secure information system in the future that is more difficult to hack into it, as there is a lot of company’s would want access to the information’s of McDonald’s.

2. Second issue is to know where the data is coming from; if it is collected from the customer, then the customer better be informed of this and they should agree to give this information about themselves so it will mean more accurate computations of this data

3. Third issue is measurement errors, so in future it is better to implement superior ways of presenting the information which the system provides and better ways of applying this information to make more money, for example it would be better to have the system give me information which I could.

4. Fourth issue is to teach or train the employees who have access to McDonald's information system, how to use that information system in a way to benefit.

5. Fifth issue is how to make sure that the same information system is being used the same way in every McDonald's branch all over the world.

Other Facts about McDonald’s:

Using ADSL broadband connections to authorise transactions, McDonald's has been able to reduce the time to process card payments from thirty seconds to just four.

But it's not just in the restaurants that new IT is expected to help the company's business.

McDonald's is using wireless technology to make savings in its IT infrastructure and increase productivity.

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But McDonald's has no plans to introduce radio frequency identification (RFID) tagging into its supply chain management system.

'We've looked at RFID twice, but at the end of the day it's not worthwhile at the current time,' says Tiley.

The high cost of specially designed tags and readers for freezer environments makes RFID introduction unfeasible

Suggestions and Recommendation:-

There is no doubt that McDonalds is considered as a global leader in terms of franchise restaurants in the world. Many of the restaurants are being owned and control by owner-operator and franchisees with the access to many of the global resources of the company such as marketing, restaurant operations, real estate development, HR, training, learning and development as well as quality control. Due to the said situation, the network of the owner-operators is so huge, and the information is so intense. That is the reason why the company is having a difficulty in developing and maintaining their Intranet that will help to provide all the groups regarding their needs.

In order to solve that problem it will be important to redesign the intranet system of the company that will implement the content management system of CMS that will help to maintain in efficient and consistent manner the information across the site. Furthermore, it is also important to consider the differences between the countries such as the language, connection speed as well as personalized and customized information system.

Furthermore, it will also be important to improve the security and privacy issues of the information of the company in order to ensure that no confidential information that can affect the company and its stakeholders will be taken from the system of the company. Furthermore, anti-virus and firewall must be improve and maintain in order to ensure that there will be no illegal or unauthorized entities that will access the files and data of the company. Above all, it is also important to ensure that there will be no viruses and the likes that will destroy vital information of the company.

McDonalds should revise its product prices

There is still a lot of opportunities for McDonald to increase a number of outlets.

Refferences:-

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http://www.web-books.com/eLibrary/ON/B0/B66/125MB66.html

http://mcdonald11.blogspot.com/

http://www.aboutmcdonalds.com/mcd/corporate_careers/training_and_development/hamburger_university.html

http://mcdonalds-career.blogspot.com/2008/04/why-mcdonalds-is-successful.html

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