MIS Lecture

8/6/2019 MIS Lecture

1/47

MANAGEMENTINFORMATION SYSTEM

GOPAAL DHUSSA


2/47

MANAGEMENT INFORMATION SYSTEM

'MI S ' is a planned system of collecting, processing, storing and disseminating data

in the form of information needed to carry out the functions of management.

A marketing information system consists of people,

equipment, and procedures to gather, sort, analyse,evaluate, and distribute needed, timely, and accurate information to marketing decision makers.

Kotler, Phillip and Keller


3/47

You are a project manager on a construction of Hydel Power project comprising of four main works viz.M ain Dam, Weir,

Electric Power Station and Tunnel. The requirement of tenconstruction materials including cement, steel (six sizes),sand, aggregate etc. need to be monitored daily. Consumption,requirements, resources on site and in depot need to bechecked every day. Design an M .I.S. for efficient working. Assume suitable data.

YOUR - CASE STUDY


4/47

M anagement is a process, involves the responsibility of guiding, supervising and controlling a team of workers who are asked to accomplish a

given task.

SCOPE OF WORK

A true management concentrates on managing the people who areentrusted with the job of attaining the pre-determined objectives. Butit should not be lost sight of that the management of materials also

calls for skill and judgement. While directing the people at work, wenever lose sight of materials.


5/47

The materials are very much there in the minds of those who areresponsible for managing the affairs of a business and/or manufacturing unit. Bothdirectly and indirectly , the management

keeps a close watch over the materials with the help of whichpeople who are at work, accomplish their assigned job and thus

help in attaining the stated goals of the enterprise.

In fact, management synchronies with the control of : every systems, procedures, methods, techniques and tools and materials which are truly effective instruments in

serving the enterprise.


6/47

Truly speaking, the control of systems, etc., goes along way inhelping the workers in their effort to achieve the objectives of the

enterprise.

M anagement till today has not been able to draw a dividing linebetween the procurement of material things required for a successful

operation and their utilization by the people who are at work. Nor does the management strive for such a dividing line. M aterial thingscannot be isolated. They are closely related to the management.

Hence the management in relation to materials, to quote A.K. Dattaagain, is concerned with the activity of procurement and use of materials distinctly separated from the process of procurement anduse of human skills and labours.?


7/47

Areas of materials management can be described as the functionsor scope of materials management. Delimiting the areas of

materials management, the study team on public sector undertakings has identified the following areas :

M aterials Planning and Programming. Purchasing and Inventory Control. Receiving, Warehousing and storekeeping Transportation and M aterials Handling and Disposal of Scrap and Surplus, including the utilization of by

products.


8/47

MATERIALS MANAGEMENT ORGANISATION:

Organisation is a process of dividing and combining efforts of aworking group for making such joint efforts more productive,effective and fruitful.

The organisation as a body of professionals allocates duties to themanagerial staff, adds certainty and promptness to the work to bedone. It avoids gaps and overlapping functions and establishes a

neat pattern of relationships among efforts to be put in, jobs to bedone and the work to be performed. It ensures team-work. Theorganisation, thus provides a frame work for the management.


9/47

The organisation is not merely a mechanistic structure of duties,activities and relationships but it is also a human organisationconsisting of diverse social groups, representing divergent

attitudes, aspirations, likes and dislikes.

The organisation, thus, takes a due note of human faculties. Inthis way the organisation encourages initiative and develops asense of duty in the personnel working for the organisation.


10/47

The organisation shapes and influences the behaviour andinteraction of people at work. It determines the extent to which

people at work would co-operate and would strive for achieving thestated goals. This is shy the organisation is assuming a greater importance in modern management and day-by-day it is growing in

structure.It renders valuable services to the whole undertaking.

It

is an important tool in the hands of management. It welds together

a frame work of positions for the most effective pursuit of the goalsof the undertaking.


11/47

In the works of E.W. Reilley, M anagement is more than individual.It also comprises those things that weld individuals into an effective

team. One of the most important of these elements is a soundorganisation plan. Organisation planning embraces those steps acompany must take to assign and define responsibilities and

authority so that individuals can work together in large numbers asthey would alone.


12/47

Irrespective of the size, the nature and the purpose of anundertaking, the basic approach and principles of organisationremain the same. For the attainment of an effective management,

an attempt is usually made by every undertaking to stick to thefollowing fundamental principles of organisation :

Determination of the basic objectives Determination of the areas of activity Determination of an ideal structure to accomplish the desiredactivities Determination of authority and responsibility Determination of the span of control Determination and assigning of jobs according to personal

ability. Unity of command Preparation and circulation of rules and regulationsInstallation of and effective two-way communication Flexibility and Line and staff activity.


13/47

It is indeed a fact that leadership in any organisation plays a distinctrole in setting the trends of operation and achievements.

Howsoever laudable a principle of an organisation may be unless itis supported by enthusiastic, imaginative and sensible leadershipnothing tangible could be achieved. A weak organisationstructure, says A.K. Datta, with effective leaders will probablyaccomplish more than a so called strong organisation with weakleaders. It is the structural balance in the organisation which isgenerally rewarding. An a good leadership combined with a well-conceived and judiciously developed organisation on the principlesenumerated above, pays dividend. Certainly it is not the principlesand a series of rules and regulations which work for themselves butthey are the guiding factors which help an organisation to achievewhat it wants to achieve.


14/47

Materials P rocurement P lanning

It aims at developing a plan for the procurement and stocking of construction materials so as to provide materials of right quality atthe site in right quantity, at right prices, from right source, and at theright time.

It involves identifying materials required, estimating quantities,defining specifications, forecasting requirements, locating sources

for procurement, getting materials samples approved, designingmaterials inventory and developing procurement plan to ensure flowof materials till the connected construction works are completed atthe project site.


15/47

Resources P roductivity Control

It aims at ensuring efficient utilisation of the inputs of man,materials and equipment. Efficient utilisation of resources at theproject site is accomplished by identifying the causes of wastageand effecting improvements so as to minimise this wastage. Thecauses of wastage are located by analysing variances andefficiency of planned and actual on-site productivity.

Productivity performance variance = Planned productivity - Actualproductivity

Productivity performance index = Planned productivity Actual productivity


16/47

The various productivity parameters which need to be controlled inconstruction projects are labor productivity, equipment productivityand materials productivity. The methodology used for controllingeach of the productivity parameters is similar and it can be dividedinto four stages, i.e. defining the control purpose, measuring the

actual performance, computing productivity performance variancesand identifying causes for these variances for affectingimprovements


17/47

Inventory control measures

The term 'inventory' implies the cost of materials in stock at a given

time. This stock of materials is held to act as a cushion betweenthe supply and demand. The monetary value of inventory indicates

the extent of investment required to maintain minimum stock of

materials for the smooth running of the project.


18/47

INVENTORY CONTROL

Inventory control refers to the process whereby the investment

in materials and parts carried in stock is regulated withinpredetermined limits set in accordance with inventory policy

established by the management. The activities of inventory

control, thus, include the following :1. Determination of limits of inventories to be held2. Determination of inventory policies.3. Setting out of investment pattern and its regulation as per

individual and collective requirements.4. Follow-up to examine the working of the inventory policy and

effecting changes as and when needed.


19/47

TWO BIN SYSTEM

The two bin system is based on the segregation of the total into two

bins one sufficient to satisfy demand between the arrival of theorder and the placing of the next order, the second contains enough

stock to satisfy probable demands during lead time. This is the

oldest system and is still in popular use.


20/47

ECNOMIC ORDER QUANTITY (EOQ)

Economic Order Quantity is referred to as the size of the order that gives maximum economy in purchasing the materials. It isknown as Optimum or Standard Order Quantity. In fact the

Economic Order Quantity or EOQ offers solution to inventory

problems.

It helps in finding appropriate levels for holding inventories.Itfacilitates the fixation of ordering sequence and the quantities soas to minimize the total materials cost. Before taking a decisionon economic order quantity the following costs are considered andanalysed threadbare.


21/47

1. Ordering Cost : Ordering cost is referred to as the cost of placing an order and securing the supplies. The ordering costlargely depends upon the number of orders placed during agiven period and the number of items ordered at a particular time. It varies from time to time and also from industry to

industry.

2 . Inventory Carrying Cost : Inventory carrying cost refers to

the cost of keeping the materials in the storehouse whichincludes capital cost, cost of storage and handling, cost of deterioration and obsolescence and other kinds of expenses

and losses during storage.


22/47

3 . Inadequate Inventory Cost : Inadequate inventory costincludes the cost of expediting the purchases, the cost of

securing rush deliveries, cost of follow-up action, cost of keeping track of previous orders, cost of keeping the inventoryat its minimum irrespective of its larger requirements, loss of

sales, customers and good will etc. due to non fulfillment of orders and all those losses and costs that arise out of non-

availability of materials to production department when itneeds and also the cost of stoppage or disruption of theoperation of the organisation.


23/47

The above three costs which influence the economic order quantity may broadly be classified into two categories from cost

management point of view. The tow categories are :

1. Cost of Acquiring theM aterial2. Cost of Holding theM aterials

FORM ULAE :

EOQ = 2Q x CpSc

Where,EOQ represents Economic Order Quantity,Q represents Quantity or Units purchased in a given

periodCp represents Cost of placing an order, andSc represents Storage cost per unit per year.


24/47

ORDER LEVEL ROL

This is the quantity of stock (level) fixed between the maximum and

minimum levels of stock. When this level is reached, it becomes theduty of the stores in-charge to initiate purchase so as to replenishthe stock within reasonable time. This level is usually a little higher than the minimum in order to be prepared for such emergencies asabnormal usage of materials, unexpected delays in delivery of new

supplies, etc. While fixing this level we ordinarily take the followingpoints into consideration :

1. Time required for obtaining fresh supplies ;2. Quantity required to be ensured of a certain level of production at

a given time ;3. Possible unexpected requirement which cannot be avoided ;4. Possible unexpected delays in getting the fresh supplies

because of rains, political situation, war, labour trouble, transportinadequacy, etc.


25/47

The objective of fixing up the order level is to re-stock the materialsat the lowest cost ensuring at the same time the uninterruptedoperation of the manufacturing unit/business organisation.

It may, however, be pointed out that the order quantity isdetermined by taking into account, the suppliers discount, rate of consumption, price of the material, storage cost, danger of deterioration and obsolescence besides the availability of funds,space available for storage and preservation facilities. The lossdue to interruption of operation will also have to be examined.These factors taken together will determine the order quantity,which in its turn affects the point at which the order level has to befixed. It is necessary to be definite about the order quantitybecause the supplier has also to be given sufficient time for makingarrangements of the supply. The larger the consignment, thegreater will be the time taken by the supplier. Thus the order quantity has its own say in fixing the points of order (or re-order)level.


26/47

S torage and Handling

This comes under the operational cost. It is said to be the most

obvious inventory carrying cost.

It includes the whole expenditure incurred in connection withstorekeeping functions. Storage cost varies widely with the typeof materials stored, type of storage facilities available and other allied factors. Usually, the range of this cost is between 5 per cent

and 10 per cent of the value of the materials stored per year.


27/47

INTEGRATED REPORTING SYSTEM

OBJECTIV ETo provide the community with a common set of businessprocesses and tools to capture, integrate, manage and presenttimely Information M anagement/ Information Technology relatedinformation essential for informed decision-making constructionmanagers.

KEY POINTSThe Integrated Program Planning, Scheduling and ReportingSystem is a suite of processes and tools to collect, integrate,analyze and report the life cycle status of IT products to be

deployed and sustained in the Construction Industry.The Deployment Scheduling Integrated Product Team The IRSoversight role includes identification/resolution of conflicts,coordination of interdependencies and resource sharing

opportunities.


28/47

BACKGROUND

1996 - M HS Information M anagement Proponent Committee

directed the use of a program tracking system to provideintegrated deployment schedules and reports, thereby improving

the management of M HS Information M anagement/ InformationTechnology programs and associated IT products.

1997 - IPPSRS Integrated Product Team (IPT) established to

facilitate the development of project and program scheduling

procedures, data standardization, business processes and topromote effective program management skills and practicesthroughout the enterprise.


29/47

1999 - IPPSRS web application retooled to meet user requirements. Comprehensive sort parameters were added to

allow users to query data by M ilitary Service, TRICARE Region,M ajor Command, M ilitary Treatment Facility, specificIT product,and date range.

2000 - Deployment Scheduling IPT established to review,

identify, track, and resolve deployment scheduling conflictsand/or planning vulnerabilities.


30/47

Computer applications

Data . The raw material used to process information for decisionmaking. Data represents specific individual facts from which aconclusion can be drawn. The project planning data includesactivities, resources, costs, documents, observations andestimations.

Data Codes . There are abbreviated data codes developedprimarily to serve a four-fold purpose:

1. To identify each work package/activity.2. To aid in the organization of data in levels from the

very detailed to broad levels.3. To enable the processing, sorting, extraction and

organisation of information required at various levels of management and functional units.

4. To computerize the data processing system.


31/47

Data Date (DD) . The data recorded on date of monitoringperformance. The data recorded on data date separates actual(historical) data from future (scheduled) data.

Decision Networks . It is a graphical method of analysing anoutcome of a series of interdependent possible courses of actions generated by the decision making process. The field of applications of the decision network in project managementincludes strategy, development, production planning, manpower planning, budgeting, inventory planning, plan procurement andits replacement decision.

Decision Tree . It is a special case of decision network, wherethe sequential decisions are drawn in the form of branches of atree, stemming from an initial decision point and extending it tothe final outcome.


32/47

DESIGNHaving assessed the feasibility of the computerized informationsystem, we now come to the design of the information base.The latter needs to be defined according to: Sources Characteristics Purposes.Sources can be single, dual or multiple and need carefulidentification by the analyst in the design process. Employeesservices system in an organisation may have single data sourceas the accounts department, while inventory management systemin the same organisation may have dual source as storesdepartment and purchase department. The seismic processingsystem for oil exploration running onIBM ,V AX and TIPOScomputers at dehra dun depended for its input from multiplesources of on- land exploration parties parities and the offshoresources of S.S.Anveshak. some valid questions about accuracyand reliability of data inputs can be:


33/47

Whether the data are of real interest and importance to thesources; whether the intended use of information is potentially

threatening to the source; and whether the required preparationof input throws an addition burden on the people at the source.

Affirmative answer to these questions can be vital pointers

towards carelessness, sidestepping or even dishonesty in thepreparation of input.


34/47

Characteristics of information bases are determined by size,variability, volatility and activity. The size of information base has

obvious implication for selecting the media where the informationis stored, viz, magnetic tape and disc storage capacity. Nature of processing also is determined by the size, such as, avoiding softor merge operations for massive amount of information.Variableinformation is stored within the information base on current

transaction files, whereas permanent information is tucked awayin master files or can be made part of the computer program.

Current files can than be manipulated to update the master files atinfrequent intervals, to produce output reports based on

permanent rate structure or valuation technique.


35/47

Volality refers to how information is added, deleted or modifiedover a given period of time. Depending on many or few changes

in the information base, the data is termed volatile or static.M onthly meter readings may be annual or half yearly average of revenue raised may be fairly static in a billing system. Costlystorage space on disks and tapes can be released by keeping acareful tap on volatility of information. Activity refers to the

percentage of the total information base which is being utilized ata given time. In an inventory management system, rate-revisions

in regular items may not affect a large mass of slow or non moving items.


36/47

Purposes of an information base decide for which user it is meant,how will it be used and when. The methods for organising and

accessing information are built around data records which havedata elements (field) associated with some units, such as,customer, student or inventory item. There may be a master record

containing all the available information about the unit or a detailedrecord with only partial information. The design of a systemincludes preparing a record layout which places together relateddata elements in a record or the physical location (address) of therecord within the computer memory.


37/47

Data file organisation and accessing include: Sequential files Random files

Index sequential files

Unordered files.


38/47

In specific file arrangements, information is arranged according toone or more significant data elements, A sequential file of students,for instance, may arrange student records alphabeticallyexamination canter wise and district wise. Sequential files may bestored on a wide variety of media, viz., punched cards, tapes anddisks, and are characterized by high activity and low volatility. Onthe other hand, a random file permits speedy access to any given

record within it regardless of others preceding or succeeding thatrecord. Random files use only the magnetic disk media and workbest with a stable and non-volatile information base. An index sequential file maintains a desired sequential order, but also permits

random access to any particular record. The file allows speedydirect accessing and eliminates the need for extensive sorting.Finally, an unordered file is simply a series of records without anyunique key identifier and is unaffected by volatility. The file,

however, can be accessed though keys from other associated files.


39/47

While data files are a body of information organized for aparticular application (e.g., pay roll file), data base are a

comprehensive body of unorganized information (in the form of directory), which may be selectively organized and accessed tomeet a broad range of needs. The data-base management

assumes the information base to contain all of the availablebusiness information and provides limitless options by specifyingwhich portion is required and in which order for selecting, combingand accessing of the variety of information without changing theunordered nature of the data base itself. it assumesIndependence of data-elements and reduce their redundancy, butis costlier to maintain than the data files.


40/47


41/47

Computer Application

In todays high flying technological world, as the technology is

advancing day by day , we the users are also using the sameupdated technology in day to day work. Computer Applications are

made to be used for making various documents, databases andstoring information.In short we can use and get the data which isvery hard to find out on paper can be got in very less of timethrough use of computer applications. Some good examples of

computer applications are M S-Office, which is almost used day to

day in all offices for creation, storage and generating informationabout almost every aspect.


42/47


43/47

Data Communications

Data communication is a integral part of todays connected world.

Data can be stored at any point of time and place but retrieving itagain when required is again a biggest question.! For the same wehave developed many applications as well as hardware. Todayalmost all the transactions are done through computers andcomputer aided hardware or software. For example today we canpurchase, find almost every thing on WWW (World Wide Web) andit is just because of efficient data communications we are able to do

so.


44/47

For small offices we have HUB to connect PCS and server onnetwork. Hub is a hardware where we put the data cables which are

taken from a PC (Ethernet Card) and so on. BY this hardware weare able to form a network of computers and within the Operatingsystem we are having a facility to identify each computer as Unique

computer by giving logical names which in turn helps u to locatethem. For bigger offices which have offices at different locations weuse V PN (V irtual Private Network) where all the offices areconnected virtually and they can use the data which is kept atdifferent locations like it is with them in the same computer.Note : Today we are having wireless connectivity also which is

been widely used.


45/47


46/47

S ystem Analysis After the full and final changes and when the system is made torun, the system has to be installed at Clients place and has to betested with them. The client uses the software and also let usknows the changes to be done. For the same work a System Analyst is there who in turn analyses the whole system made andalso verifies and rechecks the while code. He checks for theroutines and sub-routines of each module. System analyst checksfor the whole flow the system and then accordingly, after reviewingit suggests or makes the changes to the design of the wholesystem. The basic criteria of system analyses are to see that the

whole system runs smoothly and is error free. After successfulcompletion and changes to the system as suggested by the analystthe system is then deployed at the client end. System analysiscomes at the end of whole process where the system is fine tuned

for better performance and usage.


47/47

MIS Lecture

Documents

Transcript of MIS Lecture