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Manufacturing Sector
Application in Manufacturing
Sector
A typical information system primarily serves the
needs of Functional levels such as
Personnel, Finance, Production, Materials,
Marketing and Corporate Business
Management.
Integrated systems provides data and information
for:
Business Planning: at the Middle Management
Level
Strategic Planning: at the Top Management
Level
Personnel
Managemen
t
Corporate
Business
Managem
ent
Financial
Managem
ent
Manufacturin
g sector
Marketing
Manageme
nt
Production
Managemen
t
Material
Managem
ent
Personnel Management
Objective: Providing suitable manpower in number and with certain ability,
skills and knowledge as per the demand of the business.
Its goal is to control personnel cost through continuous increase in manpower
productivity (use techniques, training, motivation, promotion, rewards).
Viewers of the Database:
1Personnel Managers
2.Heads of HRD Departments
3.Top Management
Application of MIS in Personnel Database
1. Analysis of attendance by a class ofemployees
2. Leave mgmt:by agroup ofemployees
3. Trend in the leave records
4. Analysis of accidents
5. Analysis of Salary \Wage structure
6. Analysis of Overtime
7. Analysis of manpower needs and evolving recruitment and training program.
FinancialManagement
Objective:
Meeting the financial needs of the business from time to time, by way of
providingWorking capitaland Long term loans to run the business with the goal of
containing the cost of capital at minimum.
Viewers of the Database:
1.Financialmanagers
2.CostControllers
3.Auditors
4.Material Managers
5.CompanySecretary
6.TopManagement
Application of MIS in Financial Database
1.CashFlow Analysis
2.Sourcesand Uses of Funds
3.Debtors analysis and Aging pattern
4.Creditorsanalysis and Aging pattern
5.Budget Analysis
6.Ratio Analysis
7.CapitalBudgeting
8.CostAnalysis
Production Management
Objective: To provide manufacturing service to the
organisation which includes Production planning and
control, Industrial Engineering, Maintenance and Quality
Control.
Maximum utilization of the manufacturing capacity with
minimum rejections
Meeting delivery promises
Application of MIS in Production Database
1. Make or buymaterialdecisions
2. Usesofalternative materialdecisions
3. Rescheduling andloading ofjobs
4. Planning and Scheduling of jobs
5. Selection of production facilities
6. Selection of alternative maintenance facilities
Materials Management
Objective: To provide material for production, maintenance
and service at economical prices in an appropriate quantity
and quality with no extra cost of carrying the inventory.
Its scope is Material procurement, stocking and inventory
management
Searching new substitutes to reduce the cost ofmaterials,
Reduction of inventory.
Application of MIS in Material Database
1. Forecasting and planningdecisions
2. Price decisions
3. Stocking of the items
4. Controlling the item
5. Production /Inventory holding
6. Inspection and supervising
Marketing Management
Objective: Identifying the needs of the consumers
Evolving in product concept
Designing of the product
Satisfying the consumer
Positioning of the product
Selling at appropriate price
Developing dealer distribution network
Application of MIS in Marketing Database
1. Pricing decisions
2. Acceptance of orders
3. Allocation of stock to orders
4. Discount and commission
5. Deciding the sales terms
6. Introduction of new product
7. Product positioning
Application in service
sector
Introduction to service
sector:
Service sector is an organization
which provides services to
. Difference between
Manufacturing
industry
Service industry
manufacturing
industry
and
The goals changes with
Goal is not changing. It is to give
service
industry:
industry
to industry.
services to customers
Product demands are not so
dynamic
1.
2.
3.
4.
5.
.
.
The hospital are required to run as business institution with the mission of
the best health care for the people.
Patients database :
To handle the queries onexisting patients and their treatment.
Planning and control :
At any time hospital staff needs to find out availability of certain facility and
resourcesin the hospital. It is needed to have a online query system tofind out such
information.
Hospital staff database :All medical staff of the hospital including Doctors, Nurses,
andTechnicians, Visiting doctors requires togive their personal and professional
experience details to hospital management. There work times and shits, important
telephone numbers. Information about other emergency and important service
center like laboratories, blood banks andspecial clinical and facility centers
History database :Guidance and research doctors and students needs patients
history database to maintain. How patient is responding to a particular drug can be
monitored. To make planning for health service this serves is a important information.
Payroll and financial accounting
Critical control Management of the hospital need reports for forward planning and
control. Most ofthe management efforts are related to manpowerand human
resource planning.
DSS
DSS:
MIS
3
4
DSS
Focus is mainly on the semi / un-structured
tasks, which demand the managerial
judgment.
Current data can be used in the Decision
Support System.
The main emphasis is on the data
manipulation.
Manager possesses the knowledge about the
nature of the decision and the decision
making environment.
Waiting is not at all required.
Info and modeling to analyze problems
Interactive Inquiries
10
Types of DSS
1. Status Inquiry System:It helps in taking operational,
management level, or middle level management decisions. It does
not require any computation, analysis, choice for decision. If the
status is known, the decision is automatic.
2. Data Analysis System:It needs comparative analysis and makes
use of formula or an algorithm, for example cash flow analysis,
inventory analysis etc.
3. Information Analysis System:In this system data is analyzed
and the information report is generated. For example, sales
analysis, accounts receivable systems, market analysis etc.
4. Accounting System:It keeps track of accounting and finance
related information, for example, final account, accounts
receivables, accounts payables, etc. that keep track of the major
aspects of the business.
5. Model Based System:Simulation models or optimization models
used for decision-making are used one time and infrequently and
creates general guidelines for operation or management.
Types of tools/models
DSS
Behavioura
l model
Management
science model
OR model
1. Behavioural model:
It includes
mathematical model and linear programming model and
inventory control model.
Enterprise management
system
ERP
Scope of ERP
Finance:Financial accounting, Managerial accounting,
treasury management, asset management, budget
control, costing, and enterprise control.
Logistics:Production planning, material management,
plant maintenance, project management, events
management, etc.
Human resource:Personnel management, training
and development, etc.
Supply Chain:Inventory control, purchase and order
control, supplier scheduling, planning, etc.
Work flow:Integrate the entire organization with the
flexible assignment of tasks and responsibility to
locations, position, jobs, etc.
Components of ERP
FRM: This component is the core of the
ERP system.
This gathers financial data from various
functional departments and generates
valuable financial reports such as balance
sheet, general ledger; trial balance and
quarterly financial statements.
MRP: This component provides the
information needed for the manufacturing
process to take place.
It contains number of manufacturing
methods, so that the organization can
choose the best which fits for them.
HRM: This component maintains a employee database containing
information about employees contact information, salary details, attendance,
performance evaluation and promotion details.
This component helps the management to make use of the employees best
talent.
SCM: SCM as the "design, planning, execution, control, and monitoring of
supply chain activities with the objective of creating net value, building a
competitive infrastructure, leveraging worldwide logistics, synchronizing
supply with demand and measuring performance globally.
CRM: managing a companys interactions with customers and sales
prospects.