MIS

INFORMATION SYSTEMS USED IN

STRATEGIC BUSINESS DEVELOPMENT IN

A RMG INDUSTRY

SUBMITTED TO: SUBMITTED BY:

Mr.T.V.S.N Murthy Geetika Gulyani,7

Why are Information Systems required?

- support business process and operations. IS helps manager to conduct their daily
activities and functions properly. e.g. in a garment industry,different activities like
costing of apparels, inventory management, etc take place. IS help mangers to
conduct such activities accurately and timely manner with the helop of softwares.
- support decison making for employees and managers. IS can simply be defined as
input -> process -> information. IS takes data as input and processes them and
generate information. Managers can use these information for the betterment of their
organizations. e.g. IS can analyze exisiting historical data about customers in bank
and generate informations like good customers, bad customers etc. Managers can
use this information while deciding to provide loan for new customers.
- support in making strategic decision for competitive advantages. IS can give
informations like which items to launch in which location by analyzing data collected
from different sources such that company can have advantage by using these
information over their competitors. IS also can help business houses in conducting
their business process differently than thier competitors.
strategic role is also helpful for the planning of the organisation because through
strategic role the future will be planned.

Role of Information Systems

⇒ Information Systems have played a crucial role in the RMG industry . by

ensuring critical decisions on forecasting of production and retail sales.
⇒ Any Garment firm’s strategic objective for using a information system are as
follows:
o Operational excellence
o Reduced costs
o Enhanced decision making
o Competitive edge

1. Operational excellence

1. Efficiency is an essential part of the apparel business. Managers in

the RMG industry continuously scout for methods and ways to
boost their efficiency in business processes.
2. Information systems are deployed in the business processes by
undertaking BPR (Business Process Re-engineering) .

2. Reduction in costs

1. Reduction in costs has been the never–dying motto of each ready

made garment company as reduced costs proportionately
enhance profits
2. Every company seeks to expand its market share by reducing
prices/cost cutting.
3.
⇒ Enhanced decision making

1. Decision making is the core to any production process, as in case of

the RMG industry, where it is primarily important in areas of
 forecasting various aspects which affect the costs indirectly or
directly.
2. Improper decisions lead to extra inventories, high transport charges
and over-production or shortages in production, misallocation of
resources and poor response, delayed production schedules .
3. Competitive edge

⇒ In a free economy, it’s a business compulsion for apparel

manufacturers to seek strategies that provide them the extra
edge over other competitors to boost sales and brand image.
⇒ Information systems have enabled and extended the reach of
firms to their customers via web for customizing orders , thus
attracting more crowd in the marketplace.
⇒ Automated functions carried out by information system give
high precision in doing various jobs at the earliest , which in
comparison to others is a distinctive advantage.

Different kinds of systems

The four main categories of information systems which serve different organization
levels are:

1. Operational-level systems
– support operational managers by keeping track of the elementary activities
& transactions of the org such as sales, receipts, cash deposits
. 2. Knowledge-level systems
– support the organization’s knowledge and data worker.
- It help the company to discover, organize and integrate new knowledge into
business and to control the flow of paperwork.
3. Management-Level system
- monitor, control, decision-making & administrative activities of middle
managers
- controlling whether everything in company is working well, whether actual
costs exceed budgets
4. Strategic-Level Systems
- help senior management tackle and address strategic issues and long-term
trends, both in the firm and the external environment.

Different kinds of system : Example

Systems Example (Sales system)

Strategic level To forecast sales trends, buying habits trends for next 5 years
Management Tracks monthly sales figures, if sales exceed or fall below expected
level figures
Knowledge level To design promotional displays for firm’s products, i.e. to design an
attractive brochure for a new collection or style of garments
Operational To record daily sales figures, i.e. at the cashier machine
level

TYPES OF INFORMATION SYSTEMS:

A.Functional perspective:
Sales and marketing systems
⇒ Sales and marketing systems are used for tracking the sale of products at
various retail outlets.
⇒ These also help in determining customer buying trends and preferences .
Manufacturing and production systems
⇒ Manufacturing and production systems deal mainly with the production of
goods.
⇒ These help in planning and establishing production goals, acquisition of
materials, storage, scheduling of labour and materials.
Finance and accounting systems
⇒ The finance and accounting systems help in managing the assets of the
company and streamline its investments and liabilities .
⇒ It is also responsible for the capitalization of the firm
Human resource systems
⇒ Human resource systems are responsible for the record-keeping of data
pertaining to the employees of the firm.
⇒ It helps in identifying potentially skilled employees.
⇒ In the RMG industry, its vital to identify multi skilled personnel at the
operational management level so as to effectively utilize their potential.

Each type of system serves different levels and functions.

B.Constituency prespective:
6 Major Types of Systems:

• Executive Support Systems (ESS)

• Decision Support Systems (DSS)
• Management Information Systems (MIS)
• Knowledge Work Systems (KWS)
• Office Automation Systems (OAS)
• Transaction Processing Systems (TPS)

Transaction Processing Systems (TPS):

• Basic business systems that serve the operational level
• A computerized system that performs and records the daily routine
transactions necessary to the conduct of the business
• For example, sales order entry, employee record keeping and shipping etc.
• The Systems provide operational details, summery reports,
and exception reports to help supervise and control routine
operation. TPS Systems for rmg industry are: Dyes
Procedures/Recipe Optimization, Universal Control for Monitoring
and control of finishing machines, for man m/c interface, for lot
tracking, and for bar code reading…etc.
Knowledge Work Systems (KWS):
• Aid knowledge to workers in the creation and integration of new knowledge in
the org.
• Eg: design workstations to promote the creation of new knowledge
 • Office System-computer system, such as WP, E-mail systems and scheduling
systems to increase the productivity of data workers by supporting the
coordinating and communicating activities in an office

Management information system:

 The role is that to serve the function of planning, controlling and decision
making by providing routine summary and exception reports
 Eg: Sales Management , Inventory Control

APPLICATION OF MIS IN A FASHION GARMENT INDUSTRY

A. ERP(ENERPRISE RESOURCE PLANNING):

• ERP is principally an integration of business management practices and
modern technology.
• ERP is an amalgamation of three most important components:
1. Business Management Practices,
2. Information Technology
3. Specific Business Objectives.
• ERP is a massive software architecture that supports the streaming and
distribution of geographically scattered enterprise wide information across all
the functional units of a business house
It helps in managing data like:

• Material Requisition - From

Production Plan, Stores and User
Department
• Purchase Order & Ordering System
-Monitoring PO's, Amendments,
Cancellation of PO's etc
• Goods Inward/Inward Register
• Issues/Issue Register - Raw Material,
Packing Material, Stores, Maint. Spares
Machine wise etc.
• Stock Ledger - Location
wise/Consolidated
• Stock Valuation - Any Preferred
Methods - FIFO, Weighted Average, LIFO,
Fixed Cost Method
• Slow/Non moving Stocks
• Department wise Consumption
• ABC/ XYZ Analysis
• Supplier History & performance
evaluation
• Minimum/Maximum/Reordering Level
Analysis
B.VMI(VENDOR MANAGED INVENTORY):
• Vendor Managed Inventory is a continuous replenishment program that uses
the exchange of information between the retailer and the supplier to allow the
 supplier to manage and replenish merchandise at the store or warehouse
level.
• In this program, the retailer supplies the vendor with the information
necessary to maintain just enough merchandise to meet customer demand.

C.BI(BUSSINESS INTELLIGENCE):
Business Intelligence (BI) refers to skills, processes, technologies,
applications and practices used to support decision making.
BI uses technologies, processes, and applications to analyze mostly internal,
structured data and business processes while competitive intelligence, is
done by gathering, analyzing and disseminating information with or without
support from technology and applications .
D.RFI(RADIO FREQUENCY IDENTIFICATION):
Includes wireless data capture and transaction processing.
This technology provides additional functionality& benefits for product
authentication.
RFID applications include:
. Inventory management (raw materials, work in progress,
and finished goods)
. Improved efficiencies in the shipping and receiving of goods
. Reduction in 'shrinkage' (loss of goods or assets)
. Reducing 'out of stock' situations
. Asset and resource tracking proving quality control
. Improving quality control

D.SUPPLY CHAIN MANAGEMENT:

Decision Support System (DSS):
• DSS helps managers to make decisions that are unique, rapidly changing and
not easily specified in advance
• DSS uses internal info (TPS & MIS) as well as external sources such as
current stock prices, product prices of competitors
• DSS has more analytical power than other sys
• Eg: Production scheduling, Cost Analysis, Pricing Analysis, Budgeting

Executive Support System

• Executive Support System (ESS) is a reporting tool (software) that allows

you to turn your organization's data into useful summarized reports.
• These reports are generally used by executive level managers for quick
access to reports coming from all company levels and departments such
as billing, cost accounting , staffing, scheduling, and more.
• ESS address non-routine decisions requiring judgment, evaluation since
no agreed-on procedure for arriving at a solution
• ESS provide a generalized computing and communications capacity that
can be applied to a changing array of problems.
• ESS are not designed primarily to solve specific problems