Download - week 12 MIS
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Outcome 4.0:Use software-generated information to make decisions
at operational, tactical and strategic levels in an
organization.
Criteria 4.1:
Reviewmanagement information systems and suggest
appropriate information processing tools for operational,
tactical and strategic levels of the organization
Part 4.0:
QUANTITATIVE TECHNIQUES: SOFTWARE-
GENERATED INFORMATION
4.1 MIS and Information Processing Tools
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Management Information System
Definition:
A computer-based system that provide flexible and
speedy access to accurate data.
Plays a vital role in the management of organization
and decision making.
MIS in every organization is either
manual or combination of man
and machine underlying themanagement functions of
planning, organizing, directing and
controlling.
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Management Information System
MIS provide the managers with the accurate andtimely information that are relevant to decision-
making needs in regard to the established of
objectives, policies and strategies of the organization.
Organizational and Information System
Structure
MIS provide the managers with the accurate and
timely information that are relevant to decision-
making needs in regard to the established of
objectives, policies and strategies of the organization.
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Major Types Of Systems In Organizations
KIND OF INFO SYSTEM
Strategic
level
Management
level
Knowledge
level
Operational
level
Senior manager
Middle manager
Knowledge and
data workers
Operational
managers
Sales &
Marketing
Manufacturing Finance Accounting Human
Resources
Tacticalleve
l
GROUP SERVED
FUNCTIONAL
AREA
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Typical Management Information System
Classification of organization can be based on the functional
discipline of management
- Marketing, finance, psychology, mathematics etc.
Typical Management Information Systems
DecisionLevel
Production Finance Personnel Marketing
Strategic New plant
location
Alternative
financing
Welfare
policy
Competitor
survey
Tactical Production
bottleneck
Variance
analysis
Performance
appraisal
Advertising
Operational Daily
scheduling
Payroll Leave records Sales
analysis
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Typical Management Information System
Daily schedule detailed assignment of jobs to machines or
machines to operation in a production environment. E.g: duty
roster
Payroll major consideration in the design of such systems:
must execute accurately, data pertaining to a large number of
staff in a timely manner, month after month, cost based
efficiency and speed
Typical Management Information Systems
Decision
Level
Production Finance Personnel Marketing
Operational Daily
scheduling
Payroll Leave records Sales
analysis
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Typical Management Information System
Leave records record that must be maintained for every
employee, throughout the years of serves in the organization.
Detailed sales analysis
data collection, data processing forevery salesman, range of product over a long time span
details of the region, market segment etc. quality of tactical
and strategic decision may be based form this summary
information.
Typical Management Information Systems
Decision
Level
Production Finance Personnel Marketing
Operational Daily
scheduling
Payroll Leave records Sales
analysis
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Typical Management Information System
Typical Management Information Systems
Decision
Level
Production Finance Personnel Marketing
Tactical Production
bottleneck
Variance
analysis
Performance
appraisal
Advertising
Production bottleneck analysis in manufacturing
environment called for senior involvement. Result have
medium range impact provide summary info.
Variance analysis system that point out deficiencies, cost
overruns, budget excesses, etc. accuracy, clear recognition
and highlighting of pattern that can help the decision maker to
initiate action and bring systems under control are important.
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Typical Management Information System
Typical Management Information Systems
Decision
Level
Production Finance Personnel Marketing
Tactical Production
bottleneck
Variance
analysis
Performance
appraisal
Advertising
Performance appraisal individual employees leave records .
The details may not be important, but the patterns are,
whenever they are clearly visible.
Advertising information system use much of the info
generated by detailed sales analysis (an operational MIS). Able
to decide level of advertisement, mix of advertisement, budget
of advertisement etc.
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Typical Management Information System
New plant location requires much of the internal info.
generated by the tactical system, but long-term decision is
likely to be influenced far more by environment info. Such as
changing market, changing tech., changing fiscal andgovernment policy.
Alternate financing uses summary info about internal
finance (payroll, budget, overruns, variance analysis) governed
by long-term policy, business environment etc. important to
the survival and growth of the organization
Typical Management Information Systems
Decision
Level
Production Finance Personnel Marketing
Strategic New plant
location
Alternative
financing
Welfare
policy
Competitor
survey
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Typical Management Information System
Welfare policy influence by internal info about the size and
quality of staff, the compensation package, etc. strategic
decision will be governed by vision for the future of
organization as well as labor market conditions ofenvironment.
Competition resulting strategy of gaining a major market
share depends on present and future competitors strategies.
Typical Management Information Systems
Decision
Level
Production Finance Personnel Marketing
Strategic New plant
location
Alternative
financing
Welfare
policy
Competitor
survey
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Information Processing Tools
Information processing tools used is depends on the decision
required at each level of organization (operational, tactical and
strategic)
Example of information processing tools:
i. Computersii. Internet
iii. Spreadsheet
iv. Maps
v. Models
vi. databases
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Information Processing Tools
Functional area: Marketing
Information processing tools : Record on monthly sales, Database,
- Use the recorded data to make an analysis of sales
performance/demand.
Decision : The estimated sales for the next six months
Example of decision atoperational levelof organization
Information processing tools : Model produce from the sales
analysis > decide level of advertisement, budget, advertising mix
appropriate.
Decision : What kind of advertising techniques to used?
Example of decision attactical levelof organization
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Information Processing Tools
Functional area: Marketing
Information processing tools : Internet, Website - study the
competitors performance study the trend > make new policy on
profit margin which could affect the price of the product.
Decision : How to make competition with competitor
Example of decision atstrategic levelof organization
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Bottleneck Analysis
Bottleneck analysis is a critical element in understandingany operation. Bottlenecks are the constraints that limit
the ability of a process to produce at a higher level.
There are many reasons why bottlenecks could occur in
operations.
Bottlenecks could be due to:
Improper scheduling,
Insufficient capacities, Improper line balancing,
Breakdowns or repair requirements,
Sub-optimal use of the bottleneck resource, etc.
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Bottleneck Analysis
All operations - manufacturing, assembly, logistics,banking, hospitality, medical services, etc. -- have
bottleneck problems. Simulation help companies find
bottlenecks in their processes and test ideas for resolving
them.
Simulation helps identify the root cause of bottlenecks in
an operation. This information often validates thethinking of operations managers and others who know
the process. This will help make sure the proposed
changes are effective in addressing the problem at hand.
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Bottleneck Analysis
Bottlenecks can be overcome by investigating the
operating scenario - by balancing the line, by changing
routings, by increasing capacity, by decreasing the
number of operators etc. ProModel tools can simulate allthese scenarios and will help in highlighting the
variations in bottleneck levels, through detailed statistics.