CHAPTER-1 : INFORMATION MANAGEMENT

1) Basic Terminology

I. Data – Data is row material.II. Information – Information is processed data which is used to trigger

certain actions.III. Management – Management is a process of dealing with or controlling

things or people.IV. System – A system can be defined as a set of element joined together for

a common objective.V. Management Information System (MIS) – MIS is a computerized

business processing system generating information for the people in the organization to meet the information needs for decision making to achieve the organizational goals & objectives.

2) Types of Information

I. Strategic InformationII. Tactical Information

III. Operational InformationIV. Statutory Information

3)Why do we need a Computer-based Information System

a) A Department LAN

Client Client Client

ComputerServer

Print Server Web Server Database Server

b) Internet of an Organization

To Internet

a) Extranet

Internet of Organization Firewall Router

Internet of Organization

Router

Web Server

Switch

LAN LAN LAN

4)Management Structure

* Chief Executive

I. Marketing ManagerII. Material Manager

III. Finance ManagerIV. Human Resource Manager

5)Management & Information Requirement

I. Human Resource Management Goal,Strategic,Tectical,Operational Info.

II. Production ManagementGoal,Strategic,Tectical,Operational Info.

III. Material ManagementGoal,Strategic,Tectical,Operational Info.

IV. Finance ManagementGoal,Strategic,Tectical,Operational Info.

V. Marketing ManagementGoal,Strategic,Tectical,Operational Info.

VI. Research,Design & DevelopmentGoal,Strategic,Tectical,Operational Info.

6) Quality of Information

I. AccurateII. Complete

III. Trust WorthyIV. Timelly

V. Up to DateVI. Relevent

VII. SummarizedVIII. Significance Understandable

7) Various Functions in Organization

I. Function in various department of a UNIVERSITY

VICE CHANCELLER

Acadamic Department Central Department Central Facilitie

- Teaching - Acount Section -Library- Research - Student Section -Computer Centre

-Purchases -Canteen-Store -Bank-Medical Store -Playground- Maintence Dept. -ATM-Miscellaneous

II. Function in various departments of a Manufacturing Organization

A) ProductionB) MarketingC) FinanceD) Human ResourceE) Material StoreF) MaintenceG) Research & Development

III. Function of Information System

8) Main Operation Performed in Stores Information Processing

I. Create Stock LedgerII. Issues/Reorder

III. ReceiptIV. Enquiry

9) Varieties of Information System

I. TPS – Transaction Processing System* Characteristics:

A) PerformanceB) ReliabilityC) Consistency

* MethodsA)Batch Processing SystemB)OLTP

II. MIS – Management Information System Methods

A) Data ArchivesB) Data Mining

III. DSS – Decision Support System Method

A) Business Intelligence

CHAPTER:-5

INFORMATION TECHNOLOGY: IMPACT ON SOCIETY

I. Introduction

The industrial revolution in the 19th century caused many change in the society.

It affected individuals in terms of jobs and skills. Jobs became simple and repetitive through mechanisation. Transportation helped in moving goods from one location to other in a

faster way. Revolution in computing and networking giving rise to new

technology known as IT. The computing made processing of data faster, and networking made

the processed data and information sharable to all in network. IT revolution changed a slow, bureaucratic and command control

organization to fast information driven organization. Then came ‘Internet’, with that business functions and operations

became feasible for all time, twenty-four hours by seven days.

II. Summary of IT revolution and Impact on Society

Social Aspect Nature Of Impact Target and Nature Of Impact

1. Privacy Risk of loosing privacy.Loss of confidentiality of personal or organization’s key information.

Exposure of personal data, Financial data, Health data, Travel data, Knowledge and information about behaviour.

2. Work Culture Stressful, unlimited in time (24*7). Demands continuous

Health of individuals affected.Social interaction

improvement in skills and competencies.

reduced.Cost of education and learning is reduced.

3. Job opportunities

Reduced Job opportunities.Demands technology enabled skills and competencies.Dehumanization of processes due to process automation.

Standard of living very high for some while others are not affected. Time spent on learning and unlearning requirement increased.

4. Market Consumer more knowledgeable.Raises and changes customer requirements and expectations.Creates pressure for continuous innovation

Consumer behaviour more dynamic and unpredictable.

5. Business and organization

Strategic and competitive.Demands innovation and creativity in every aspect of business.Risk exposure has increased.

Organizations become lean and flat. Employees become knowledge worker. Customers and vendors become business partners.

Protecting privacy is your responsibility and with some precautionary measures, actions are to be taken by an individual as under;

Check why personal data is required? Get commitment on what use it would be put to?

Declare your choice where data should not be used without your permission. Do not give credit card number, PAN number that identifies you uniquely. Sign a privacy agreement/Contract with the organization or obtain a standard

privacy agreement signed by the party.

IT industry advocates certain standard ethical practices to safeguard the privacy of information.

No secret record should be maintained about individuals after its use. NO use can be made other than that of specified original purpose. If other use is required, consent of the individual is to be obtained. Allow individual a right of inspection and correction. Organization and processing system is responsible for the integrity of secret

data.

III. Ethics

Ethics is a study of principles and practices, which guides to decide whether the action taken is morally right or wrong.

Respecting ethical values means making a beginning to protect generally accepted individual human rights.

The Rights Are:-

The right to healthy life and work safety. The right to privacy. The right to intellectual property(information and knowledge) The right to descent. The right to fair treatment and no discrimination. The right to be treated by just due process.

Privacy protection is best achieved by strict adherence to Association of Computing Manufacturers (ACM) code of ethics and providing adequate technical security measures and controls that limit the access to databases and other information.

1. ACM code of Ethics and Professional Conduct General Moral Imperatives More specific personal responsibilities Organisational leadership imperatives

IV. Technical Solution for Privacy Protection

Protecting the privacy of individual or organization assumed critical importance on emergence of Internet and Web technology.

Before understanding these technology solutions let us know how Internet and web enabled IT solutions affect the privacy of individual.

The communication system capabilities can identify and analyse the following:

Identification of a person or location from where an action has started through registration record.

Which files, websites and web pages visited Which transaction have been attempted and completed, namely

buying, selling, displaying downloading and others. Technical solutions

Cookies – tiny files deposited on computer hard disk. Web bugs – To monitor the behaviour of the visitor. To contain these practices, website owner gives option to

visitor to ‘Opt-Out’ or ‘Opt - In’. Opt-Out – Permission to collect information. Opt – In – Not given consent to collect and use info.

Publications such as Legal notice, disclaimer, privacy policy.

V. Impact of IT on the Workplace

IT products have raised number of ethical, moral and legal issues and they are being resolved with acts and laws.

Positive impact – They are largely in management area improving financial performance of the business.

Negative impact –o No personal interaction between human beings as most of the

processes dealing with transaction, conversion, communication is automated. So analytical and decision making skills are getting rusted and work and work place is boring.

o Health hazards due to continuous working on systems and applications under stressful conditions.

o IT when used to monitor the work, workplace and the worker. No resentment if technology is used in following manner:

o Monitor, watch and measure only those personal factors which contribute for the achievement of business objectives.

o Before implanting such programme involve nerved persons, seek their acceptance through training and explaining the purpose behind such monitoring programme.

o Allow persons to access the record built and the programmes used to build to win their confidence.

o Use recorded data to improve the efficiency of the person, and do not use it to punish or to find fault or to discriminate.

VI. Intellectual Property, Copyright and Patent

Information or information product such as business rules, business model, patent, layout, diagram or specific compilation in certain format used for business advantage can be classified as intellectual property.

They can be viewed, copied and distributed on network.

Trade secrets, copyright and patent provides protection provision for intellectual property.

1) Trade secrete

In the trade secret act ‘idea’ behind uniqueness is a trade secret and prevents its copying by law.

This includes its presentation, implementation and storage as well.

2) Copyright

Copyright act protects intellectual property for pretty long time from copying by others.

The protection is applicable against copying part or full in any manner.

The weakness of the copyright act is that it does not protect the idea behind product and its use.

The professionals in IT industry and experts from law firms are questioning the basic premises whether information/information product/software is a ‘property’ at all.

3) Patents

‘Patent’ grants the owner of the product exclusive monopoly on the ideas behind the product for number of years, sufficiently protecting the interests of the owner/inventor of the product.

VII. Challenges to intellectual property Rights

Internet is used to transmit information in any form freely around the world.

It does not distinguish copyright information and other information. With web technology,copying,altering,and configuring different

information objects and Creation of altogether new information object is easily possible.

VIII. Technology, Impact and Solution

Technology Impact SolutionUse of smart ID badge. You can be traced Technology does not

anywhere. The result is loss of your privacy

offer any meaningful tangible solution to all these problems.Access anywhere

through network management programmes.

Loss of personal information loss of privacy.

Uninterrupted use of PC/ work station.

Eye strain backache, numbness in fingers, wristpain, repetitive stress injury, techno stress causing objectionable behaviour impatience.

The difficulties aremanyfold to resolve this issue in the event of incidence of breach, following problems arise:

Pinpointing the location and users. Isolating cause, affect and damage and pinning it on one agency. Assigning clearly the cause of damage to hardware, system software,

application software, user,owner of the information and so on. Difficulties in envisioning the probable causes and creating contingent

protective mechanisms.

IX. Information System Quality and Impact

Poor Input Data Quality

Invalid Source. Incomplete verification and validation Inadequate data entry-level control Incorrect application

Software Bugs and Errors

Poor testing ,test case design Heavy reliance on automated testing tools Non-use of walk through, reviews and mapping of RDD vs SRS

vs. design and architecture.

Hardware and software failure

Poor maintenance of hardware and software Power failure , and associated system stoppage problem Faulty software not able to support promised capabilities and

features Hardware and software failure caused due to nature or other

causes and not support by sufficient back-up provision.

The developer has professional and social obligation to create awareness and appreciation in the minds of users and customers

A system with zero error and no bugs is a myth. Data errors by and large are human errors. System are designed on the basis of Requirement, Definition and

Description (RDD) and SRS finalized at a point of time and in the event of change, the system results would be at variance with the expectation stated in RDD.

The biggest problem is the input data quality affecting information system quality.

X. Impact on quality of life

Following are main areas affected by impact of IT

People are empowered with information and knowledge. It has changed the decision making hierarchy structure in the organization. Operational decisions are passed on to lower level in the organization.

Business dynamics and competition is changing so fast that response time to a change has to be much less than before. IT is capable of giving strength to respond quickly, smartly and on time.

The concept of houses, family and office life is slowly getting vanished because technology exposes you to work anytime anywhere in single mode or in virtual mode.

IT has given birth to new crime, called as cyber crime or internet crime such as

o Spamming: sending unsolicited mailo Hacking: Obtain illegal accesso Jamming: Disabling the siteo Sending viruses: Insert and send viruso Sniffing: Intercepting and collecting personal info using s/w in

n/w

CHAPTER - 6 DECISION MAKING (030)

1) Characteristic I. Sequential in nature

The decision are no isolated events. Each of them has a relation to some other decision or situation.

II. Exceedingly complex due to risks & trade offs. The complexity is the result of many factors, such as the

inter-relationship among experts or decision makers,a question feasibility ans a probable impact on business.

III. Influenced by personal values A decision being very sound on the business principle and

economic rationality may be rejected on the basis of the personal values.

IV. Made in Institutional settings & business environment

2) Rational Decision Making

A rational decision making is the one which, effectively and efficiently ,ensures the achievement of the goal for which the decision is made.

I. Types of Rationalitya. Objectively

If it maximizes the value of the objective.b. Subjectively

If it maximizes the attainment of value within limitation of the knowledge and awareness of the subject.

c. Consciously

To the extent the process of the decision-making is deliberate ans a conscious one.

d. Organizationally To the degree of the orientation towards the organisation.

e. Personally rational To the extent of the individual’s personal goals

II. Problems in making Rational Decisiona. Ascertaining the problem

The most common source of mistakes in management decisions is the emphasis on finding the right answers rather than the right questions. The main risk is to define right problem in clear terms.

b. Insufficient knowledge For perfect rationality, total information leading to complete

knowledge is necessary.

c. Not enough time to be rational The decision maker is under the pressure to make decisions.

If time is limited , he may make a hasty decision which may not satisfy the rest of rationality of the decision.

d. The environment may not cooperate The timing of the decision is such that one is forced to make

a decision but the environment is not conductive for it.

e. Other limitations These are needed for the compromise among the different

positions , misjudging the motives and values of people , poor commiunications , misappraisal of uncertainities and risks and human behaviour.

3) Decision Making Process

Intelligence Raw data collected , processed and examined. Identifying a problem calling for a decision.

Design Inventing , developing and analysing the different decision

alternatives and testing the feasibility of implementation. Choice

Select one alternative as a decision , based on the selection criteria.

I. Decision making system typesa. Closed decision making system

If the manager operates in a known environment then it is called closed decision making system.

conditions The manager has a known set of decision alternatives and

known their outcomes fully in terms of value The manager has a model, a method or a rule. The manager can choose one of them, based on some

goal or objective criterian.

b. Open decision making system If the manager operates in an environment which is not

known to him then it is called open decision making system.

Conditions

The manager does not know all the decision alternatives.

The outcome of the decision is also not known fully.

No method , rule or model is available to study ans finalize one decision among the set of decision alternatives.

It is difficult to decide an object or a goal.

II. Types of decision

a. Situation of certainty If the manager has full knowledge ,then it is a situation of

certainty.b. Decision-making under risk

If he has partial knowledge or a probabilistic knowledge , then it is decision-making under risk.

c. Decision-making under certainty If the manager does not have any knowledge

whatsoever ,then it is decision-making under uncertainty.

III. Nature of decision

a. Programmed If the decision can be based on a rule , method or

even guidelines , it is called the ptogrammed decision.

b. N on –programmed A decision which can not be made by using a rule or

a model is the non-programmed decision.

4) Methods for deciding decision alternatives

I. Optimization Techniques Linear programming, Integer Programming, Queuing

Models, Inventory Models , Capital Budgeting Models and so on are examples of optimization techniques.

This method are used in case where decision-making situation is closed,deterministic and requires to optimize the use of resources under conditions of constraints.

II. Payoff Analysis When all the alternatives ans their outcomes are not known

with certainty , the decision is made with the help of payoff analysis.

III. Decision Tree Analysis When a decision maker must make a sequence of decisions,

the decision tree analysis is useful in selecting the set of decision.

5) Decision Analysis by Analytical Modelling

I. What if analysis In reality , the considered value of variables or relationship in

the model may not hold good and therefore solution need to be tested for an outcome, if the considered values of variables or relationship change.

This method of analysis is called “what if analysis “. II. Sensitivity analysis

In sensitivity analysis , a special case of what if analysis , only one variable is changes and the rest are kept unchanged.

III. Goal Achieving analysis In a goal achieving analysis, goal is fixed and you go down to

analyse the variables and values , which would help to seek that goal.

IV. Goal seeking analysis In goal seeking analysis, you do not fix the goal but you try

to achieve a goal of an optimum value arrived at after satisfying all the constraints operating in the problem.

CHAPTER -8 SOFTWARE ENGINEERING:ANALYSIS & DESINE (043)

_________________________________________________________

1) System Concept

System is defined as a set of elements arranged in an orderly manner to accomplish an objective.

EXAMPLE.

System Element ObjectiveComputer Input , process, and output devices.

Operating system , compilers , packages.

Process the data and provide information.

Accounting Financial transaction , accounting principles and rules , transaction processing methods of accounting.

Process the transaction and produce monthly books of accounts and the information for financial management.

Business organisation

People , plant and machinery , product and services , communications , transport, material.

Produce goods and services to achieve the business objectives of service , turnover and profits.

2) System control

Sensor The device that measure the output is called sensor.

Comparison unit The process of comparison of a measured output with the

standard is done by a unit called as a comparison unit.

Feedback mechanism The mechanism , which provides a signal to the system ,

about the quality of performance , favourable or adverse, is called feedback mechanism.

Corrective unit It is necessary to provide an in-built mechanism which will

decide , based on the feedback to stop , regulate or continue the system operation. Such a mechanism is called corrective unit.

MIS and Support to Business

3) Types of System

I. Subsystem When many smaller system together make a larger

system , the smaller system are called subsystem of the larger system.

II. Serial system processing In the serial system processing ,the entire output of

one subsystem is input of the next subsystem and so on.

III. Matrix system processing In the matrix system processing the different

outputs of the one system goes to different subsystem. A subsystem receive more than one input from other subsystem.

IV. Black box system If the process of input transformation is not visible

and understandable then we say that the system is a black box and the process is not transparent.

V. Deterministic

When the inputs, process and outputs are known with certainty it is called deterministic system.

VI. Probabilistic When the output can only be predicted in a

probabilistic terms it is called probabilistic system.VII. Open system

If the system is functioning in isolation environment , then the system does not have any exchange with the environment nor it is influenced by the environmental changes , such a system is called open system.

VIII. Close system If the system has a exchange with the environment

and is influenced by the environment then it is called an open system.

Fig- Subsystem in serial order

Fig - Subsystem Operating in Matrix Order

Fig- Black Box System

[ Fig- Hierarchical Structure of the System ]

4) Handling system complexity

Factorization The subsystem are put in the hierarchical order to provide a

structural view showing the development path to designer. The process is called factorization of the system into subsystem.

Simplification When we cluster the subsystem together is calles

simplification.

I. Material Management System

The above system can be subdivided into the following subsystem for the purpose of handling the complexity as shown in step-1 below:

a. Procurement systemb. Purchase order follow upc. Receipts accounting system

d. Material requirement planning systeme. Material issue requisition systemf. Bill passing and payment systemg. Inventory control system

Material management system is divided into 7 subsystem from A to G and their interconnection are identified as specified in step-2.

20

[ Fig- Step-2 subsystem with interconnection ]

The subsystem can be clustered in a number of ways as in step-3 below :

[ Fig- Step-3 formation on cluster on the basis on managerial function]

The decoupling is in step-4 as below :

[ Fig- Step-4 Decoupling of subsystem’s cluster by stock information interface ]

II. System efficiency and effectiveness The efficiency indicates the manner in which the inputs are used

by system. The effectiveness is the measure for deciding whether the

system provides the desired output or not.III. Post implementation problem in a system

5) Classes of system I. Data Processing System (DPS)

It is designed to capture , collect or enter the data to process in a certain specified manner to achieve following:

o Data is complete correct and valid from all acpects.

II. Transcation Processing System (TPS) It is designed to handle a transaction between parties. Parties could be two or more and have a designed role in TPS.

III. Application Processing System (APS) It uses a filter created by DPS and TPS and applies application-

processing rules to execute the application.

IV. Business Function Processing System (BPS) It use with business functions. BPS aids in business function processing and helps management in

decision-making required within the scope of a business function.

V. Integrated Information Processing System (IPS) This system sits on the top of the rest of the system like

DPS,TPS,APS,BPS. It draws its input from these systems , and applies

information processing rules to bring out an output.

CHAPTER-9 : DEVELPOMENT PROCESS OF MIS (080)__________________________________________________________

1. MIS Goal:

I. provide online Information.II. Query process not exceed more than 3 second.

III. user friendly.IV. Manage marketting.

2. Business Plan v/s MIS Plan:

Business Plan MIS Plan

=> Business goals and Objectives. =>MIS,Objectives consists to the Business Goals and objectives.

=>Business Plan and Stategy. =>Information Strategy for the business plan implementation playing a supportive role.

=>Strategy plan and Decesion. =>Architecture of MIS to support decision.=>Management Plan for Execution and Control.

=>System development schedule,matching the plan execution.

=>Operation Plan for the execution. =>Hardware and software plan for the procurement and the implementation.

3. Strategy for the Plan Achievement:

I. Development Strategy.=>An online a batch ,a real time.technology platform.

II. System Development Strategy.=>Any approch to the system development

=>Operational v/s functional.=>Accountiong v/s Analysis.=>Database v/s Conventional approch.=>Distributed v/s Decentralize processing.

III. Resource for System Development. =>In house v/s external.

=>customize development v/s the use of packages.IV. Manpower composition.

=>Analyst,programmer skill and know-how.

4. The Architecture of MIS:

I. The Architecture of MIS plan provide a system structure and their input output and linkages.

II. It also provide a way to handle the system or subsystems by way of simplification,coupling and decoupling of subsystems.

5. Ascertaining the class of information:

=>Ascertaining the informaion needs of the management for the business execution is complex task.

=>Complexity is handled if the informaion is classified on the vasis of its application and the user.

I. Organisation Information.=>One can define the organization information required by a number of personnel.=>It can be observed from table that the information entity is one ,but its usages

are different

a) Organizatinal.b) Functinal Managerial.c) Decision Support.d) Operatinal.

II. Functional Material Information.=> The functinal information id deined as a set of informaion required by the

functional head in conducting the administration and management of the function.

III. Work Design. =>for eg.

for the customer order scrutiny the available stock,the price,the terms of payement and the probable delivery is an information set evolved

out of the work design of ustomer order processing.

IV. Responsibility.=> the manager in the functionalareas of management are responsible for

achieving the targets and accomplishing the goals and objectives.

V. Functional objective,knowledge,DSI,operational information.=> Each function has its own objectives which is derived out of the corporate

goals.=> for eg. The overall business plan objectives gives rise to the objectives for each

business function. =>the total sales per month is Rs million. => the finished goods inventory,not to exceed Rs million. =>The outstanding more than six months not to exceed Rs million. =>The capacity utilization should be minimum 85 per cent. =>The eployee attendance per month should be 99 per cent.

6. Determining the information Requirement:

=>The sole purpose of the MIS is to produce such information which will reduce uncertainity risk in a given situation.

factor given below:=>the capability constraint of the human being as an information processor, a problem

solver and decision maker.

=>the nature and the variety of the informaion in precied terms.

=>Reluctance of decision makers to spell out the informaion for the political and the behavioural reasons.

=>The ability of the decision maker to specify the information.

Methods of Handling Uncetanity.

a) Low (Near Certainity) =>Level of management is Operational management.

b) precise probabilistic knowledge.(a risk situation)=>Middle management

c) Not able to determine in probablistic terms precisely(very risky)=> Middle and top management.

d) High(total uncertainity)=> Top management.

I. Asking of interviewing.=> In this method a designer of the MIS puts questions or converses with the user of the information and determines the informations.=>The experts or experianced users are asked to give their best answers-this approch is called the delphi method.

II. Determining from existing system.=>In a number of cases the existing system,which has been evolved after a number of years and has been designed out of experiance gives straightaway the requirement of informaion.

III. Analysing the critical success factors.=> Every business organization performs successfully on efficent managementof certain success factors.

IV. Experimention and modeling.

=>The experimentation whould decide the methodology for handling the complex situation.

7. Devlepment and implementation of the MIS:

I. Prototype Approch

=>When the system is complex,the development strategy is prototyping of the system.

=>Prototyping is a process of progressively asertaining the information needs,developing methodology.

=>The designer's task become difficult ,when there are multiple users the same system and the inputs they users are used by some other users as well.

II. Life Cycle Approch.=> There are many systems or subsystems in the MIS which hava a life cycle,i.e they have a birth and death.=>Thier emergence may be a sudden or may be a part of the busuness need, and

they are very much structured and rule based.=>They have hundred per cent clarity of inputs and thier sources,a definite set of

outputs in terms of the contents and formats.

I. Prototype Approch

mission goal

identifyinformatation need

define System boundaries & scope

Define System Objectives.

Define System Objectives. Devlop initial

prototype specification

initial prototype

Devlop and Test

Refine the

need

modify prototype specification

Develop Reviced prototype

is user

satisfied

Develop Application with final specification

Documentation

Training

Implement in parallel

Review

iI. Life Cycle Approch.

8. Lewin's model of implementation process:I. Unfreezing

=>Organisation to make the people more receptive and interested in the change.II. choosing

=>The process begins and reaches the desired level of stability.III. refreezing

=>Change is consolidated and equilibrium is reinforced.

9.Management of information Quality in the MIS:I. Quality Parameter of information

a) Complete data of all the transactions valid transaction and input data.b) Accuracy and precision of result.c) Relavance to the user/Decision maker/stake holder.d) Timely Information.

System Application

Conceptual Design

information req.Analysis

Access feasibility

System Application

System specification

process specification

Devlop in System

System Application

Conduct Awarebess and training

opreate the system

preview and audit

e) Meaningful and complete Information.

10. Organization Of Development of MIS:

I. Approcha) Centralize Organization.b) De-centralize Organization.

CHAPTER-12 : APPLICATIONS IN MANUFACTURING FACTORS (112)

Introduction: MIS can be determined in two way:

Computerized System Traditional System

First Objective of application is accounting the transaction based results and providing reports on the same.

Second Objective is to provide a Query System for assessment of the status on record,result of document.

Third Objective is to provide a System of analysis of processed data revealing certain business trends or results.MIS Application

1)Personnel Management:

Personnel management function has the primary objective of providing suitable manpower in number and with certain ability, skills and knowledge as the business organization demands from time to time.

Input Transaction Documents : – Personnel application form– Appointment letter– Attendance and leave record

Applications

-The viewers of the database are personnel managers, head of the human resource development department and top management.

Accounting : – Attendance– Manpower– Leave

Query: – Attendance, leave and absenteeism record of all employees– Salary / Wage of employees

Analysis: – Analysis of attendance by a class of employees– Analysis of accidents and types thereof.

Control : – Personnel cost versus industry cost and its projection– Projection of manpower needs and evolving recruitment and training programmes.

Reports : -Employee Management Report

Statutory Reports: – Accident reports– Income tax form 16, 24 A

Information updates: – Daily attendance report

– Joining and transfers of the employees – Personnel cost by department, job, product

Operation update: – Daily attendance to plan the workload– Overtime versus work completed

Decision analysis: – Analysis of attendance for season, festival and by skills, scheduling of the jobs accordingly.

– Overtime analysis by department, employees and job to decide the strength of personnel.

Action reports: – Recruitment and additional manpower or subcontracting of jobs– Acceptance of orders on the basis of workload

2)Financial Management:

• FM function has a primary objective of meeting the financial needs ofthe business, from time to time, by way of providing working capitaland long-term capital to run the business with the goal of containingthe cost of capital at the minimum.

• Second objective of FM is to meet the statutory compliance.

Input Transactions Documents:

– Payments: To suppliers, authorities, employees, shareholders– Receipts: From customers, authorities, employees, financial institution.

Applications :

• Accounting: The system accounts for all money transactions which have taken place, directly or indirectly and which affect the company.

The FMS accounts for the following: 1) Sales 2) Purchase 3) Salary / Wages 4) Inventory 5) Expenses 6) Capital purchase 7) Fixed Deposits 8) Shareholder’s fund 9) Income tax 10) Sales Tax 11) Excise Duty 12) Customs Duty 13) Octroi 14) Consumption 15) Budgets / Fixed Assets

Query: -The query system throws light on the debit or credit balance of

an account. • For eg. the query could be on sales with respect to the customer.

Decision Analysis :

• The applications which support the above decision are:

– Cash flow analysis– Sources and uses of funds– Debtors analysis and aging

Control :

- The cost of running a business increases, when the business does not progress on a planned basis. -The lags and leads in activities,delays in completion of tasks and non-performance of certain business functions give rise to additional costs eating away the margin in the business.

Reports: - A major portion of a financial management system is devotedto the statutory compliance and operations update.

Statutory compliance – Tax returns– Registers: Sale Tax, Excise, Tax deducted at source

Information updates : – Accounts receivables and aging– Accounts payable and aging– Expenses on major accounts

Operations Update : – Transactions executed and accounted in the system– Report on finished goods, dispatches and invoicing– Reports on material receipts and payments to the suppliers

Decision analysis: – ROI analysis for choice of investment– Trend analysis on price of selected commodities– Cash flow, sources and uses of funds– Analysis of current and fixed assets

Action Update : – Overdue receivables– Non supply of goods and services but advance paid– Poor usage of fixed assets and disposal– Non-moving inventory of, say, more than two years and its disposal

3)Production Management(PM):

The objective of Production Management (PM) function is to provide manufacturing services to the organization.

Input Transaction Documents : – Production programme– Production schedule– Job card– Finished goods advice– Material requirement– Material requisition– Customer order

Applications: -The PM is performed through production planning and

control, bill of material processing system. Accounting:

– Material requirement and its usage– Rejection quantity at each intermediate stage and the final stage– Machine and facilities utilisation– Labour hours

Query: – Status on availability of material– Standard information on machines, tools, specifications– Standard information on skills and capacities of each worker

Decision analysis : – User of alternative material– Use of alternative process– Evolving optimum product mix/job mix– Planning and scheduling of jobs

Control: – Excessive product rejection on account of material and or process– Hold up of key jobs beyond a certain limit– Utilisation of key facilities below a limit

Statutory Compliance : -The industries which are classified underDirector General of Technical Development (DGTD) are required to information certain data on production and production hours to DGTD.

Information update : – A typical reason for rejection– Output of various job versus machines.

Operations update : - Production per day- The rejections by process or job- The jobs completed and handed over for inspection

Decision Analysis : - The DSS are extensively used to enable the management to take decisions.

Action update : - It provides an early opportunity to the management to correct its own decision of the expected results fail to come through.• For eg. a new process is evolved and implemented.

4)Raw Material Management (RMM):

• The objective of Materials Management (RM) is to provide material forproduction, maintenance and services at economical prices, in aappropriate quantity and quality and with no extra cost of carrying theinventory.

Input Transaction Document: – Purchase requisition– Purchase order– Receipt of goods– Issue for production

Applications: – Forecasting and planning– Procurement– Purchase ordering

Accounting: – Purchase quantity– Issue quantity– Stocks– Goods returns

Query: -Queries are largely centre around price, supplier, stock and

pending aspect of purchase, returns and payments.-How many stocks are there?-stock reports.

Decision analysis: - The first major decision in the function is ‘price’ of an item.

-The second decision to take is in stocking of items - The third is to controlling the item

Control:

- Excessive product rejection on account of material and or process– Hold up of key jobs beyond a certain limit– Utilisation of key facilities below a limit

Reports and Display: -They are produced at regular intervals,say monthly or quartly.

Statutory Compliance : -Essential reports are:1)Stock ledger2)Values Stock statement3)octroi register4)MODVAT register.

Information update : – price fluctuation and trend– Perfoemance of Suppliers.

Operations update : - Daily Goods Received Register.- Statement showing items in short supply or stockouts.

Action update : -It comes through a control System which indicated whether decisions is implemented or not.

5)Marketing Management(MM):

• The Marketing Management function deals with satisfying the customer.

Input Transaction Document: – Customer order– Order Acceptance– Delivery note– Invoice,credit,note,debit note.

Applications: – Forecasting and planning– Procurement– Purchase ordering

Accounting: -Product sale

– Sales value– Sales Tax–Dealer,Distributor,etc.

Query: - Queries related to customer,product,price,stock,sale and certain cumulative statistics pertaining to sales.

Decision analysis: -applications are developed to support these decision building models such as ,Break even model,Risk Analysis Model,distribution mode,network model,product launch model etc.

Control: -Factors which need to be controlled for achiving goals.

-Sales vs.Budget-Marketing Cost vs. Budgeted Cost-Product sale vs. targeted fixed market

Reports : Statutory Compliance :

-It is mainly related to taxes and duties and fillings to return to appropriate Government Authorities.

Information update : – Product sales ledger–Sales Summeries-Contribution Analysis-Sales Analysis

Operations update : - Order book- Despatch report- Inventory- Invoice - Customer Complaints- Complaints disposed

Decision Analysis:

–This reports tie up to the specific decision to its results.-A report analysis pre and post sales of the campaingn will indicate a good advertisement.

Action update : -Action Update reports are,

Sales vs.BudgetExpenses vs. SalesStock vs.Budgeted Stock levels

CHAPTER 13 : APPLICATION IN SERVICE SECTOR (140)

(1) Introduction to service sector

Mission: Service Industry Providing most satisfying service of the customer, while in a

manufacturing facturing industry, it could differ from industry to industry and from organization to organization.

Tom peters in ‘The service Edge’ states five principles of a distinctive service.

(i)Listen, understand, and Respond to the customers. (ii) Define a superior service and establish a service strategy. (iii) Set standards and measure and performance. (iv) Select, train and empower the employees to work for the customers.

(v) Recognize and reward the accomplishments.

(2) Creating a Distinctive Service

(i) Service VS product

SERVICE PRODUCTService is not tangible. Product is tangible(real or definite).Services are offered on demand. Product can be offered on payment.The quality control of a service is difficult due to its reference to the customer’s expectations which are difficult to judge and control.

The quality control of the product is possible with reference to the determined standards.

Service cannot be demonstrated. Product can be demonstrated before the actual sale.

(3)Service Concept

Service is an identifiable, intangible activity or a process designed to fulfill certain expectations of the customer/consumer.

Kotler defines it as ‘service is an activity or a benefit that one part can offer to another which is essentially intangible and does not result in the ownership of anything.

r

Characteristics or attributes

Intangibility Inseparability of Receiver & Provider

Inconsistency

Service Quality Parameters

Reliability

Assurance of Delievery

Degree of tangibleness

Empathy

Level of Responsiveness

Quality of service dimensions

Quality of resources used

Functional quality of the process

Components

Basic core

Its features

Storage

Service quality model

(4)Service Process Cycle and Analysis

(5)Customer Service Design

Stages in Cycle

Initiation of Service

Transition to Service

Pre-service Post-serviceService

Factors influences the customer service design

Promotion Product Price Post-servicePlace Processes

(6)Service Management System (SMS)

(i)Initiation for service(front End) Scope: answer queries, standard and non-standard. Record the query details and seek for agreement to avail the service. Objective: win the customer for availing the service.

(ii) Transition to service(front End) Scope: check, asses, validate the service requirement.Objective: establish technical, commercial feasibility and obtain customer acceptance.

(iii) Pre-service(back End) Scope: inspect all submissions from all points of view. objective: enlist the service offer with identity.

(iv) Service(back End) Scope: conducting the customer and/or the goods for service after execution. Execute all

after execution. Execute all necessary transactions, which are part of service process. Collect part of service process. Collect transaction results and update the records for reporting. Produce and/or display documents.

Objective: complete the service execution process efficiently and effectively to the satisfaction of the customer.

(v) Post-Service(front End) Scope: collect feedback on service experience, suggestions if any.

Objective: collect data and information about service for decision-making and improvement.

(7)MIS Application in service Industry

(i) Airlines (A) Passenger information (B) Information on the Aviation industry

(ii) Hotels(A)Keep track of the customer profile (B) Monitoring occupancy Level (C) Project future needs (D) Monitor the level of expectations (E) Monitor the communication needs (F) Customer database

(III)Hospital (Front end applications)

(A) Patient database (B) Medical server database (C)Resource planning and control (D)Medical case history database

Hospital (Back office applications) (A) Core applications (B) Critical control applications

(iv) Banking(A)Customer database (B) Service to the account holders (C) Service for business promotions (D) The index monitoring system (E) Human resource upgrade

(V) Insurance (A) Information for new products (B) The settlement of claims (C) Management of the policies

(vi) MIS application in service industry (A) Utilities (B) Finance

(8) MIS focus on the key factors (i)MIS focus on key Factors:

(A)People (B)Process (C) technology