Application of MIS

Application of MIS
M.Viswanathan Systems Manager Kerala Agricultural University viswanm@yahoo.com Mob: 9447614792

Unconditional Love is the divine bliss
Applications of MIS
INFORMATION SYSTEM MODEL

The MIS model of an application, considers transaction processing as a basis. The primary objective of the system designer is the identification of inputs which are processed by online transaction processing (OLTP) system for each application. The system designer develops the applications with the objective of accounting the transaction based results and providing the reports on the same. The second objective is to provide a Query system for assessment of the status on record, result or document. The system provides on the spot screen display showing a status, such as stock of an item, balance of an account, position of purchase order and so on.
Third objective is to provide a system of analysis of processed data revealing certain business trends or results. It provides certain guidelines and norms for strategic and tactical planning. The analytical information provides support for decision making in the Decision Support System (DSS). The analysis system provides information at all level for planning and execution of business operations. The fourth objective is to provide control information to ensure that the business runs as per the plan, progresses in a preset direction and achieves the goals.
OLTP SYSTEM
RDBMS
Model of Information Processing System
DATABASE
APPLICATION DEVELOPMENT SYSTEM
ACCOUNTING APPLICATIONS
QUERY APPLICATIONS
ANALYSIS APPLICATIONS
CONTROL APPLICATIONS
PRINT REPORTS
SCREEN DISPLAY
STATUTORY COMPLIANCE
KNOWLEDGE UPDATE
OPERATION UPDATE
DECISION ANALYSIS
ACTION UPDATE
The control information is generated by using the standards, norms, targets and budgets. The actual results are compared with these entities and exceptions are highlighted. Whenever possible, the information is provided on the basis of feed forward control, i.e., providing early signal of probable adverse conditions or results. The designer of business application focuses the development on the aspect of accounting, querying, analysis and control. The report generation is decided on the basis of certain business information needs. The reports are designed for screen display or for print. The contents of the reports are decided as per users of the information. The frequency, duration and coverage of the report is decided as per the user requirements. A typical information system begins with OLTP System, uses RDBMS for creation of Database, 4 GL for application development and SQL for querying and report generation. It uses program for complex data processing and report generation. The information system is designed on the principle of open system design, providing flexibility and friendliness to the users of the system. 6
A typical information system primarily serves the needs at function levels such as Personnel, Finance, Production, Materials, Marketing and Corporate Business Management. These systems when integrated provide data and information for business planning at the middle management level and for strategic planning at the top management level.
Application of MIS in Personnel Management

Personnel management function has the primary objective of providing suitable manpower with certain ability, skills, and knowledge, as the business organisation demands from time to time. Its goal is to control personnel cost through continuous increase in manpower productivity by resorting to the following techniques. 1. Human Resource Development through training and upgrading the skills. 2. Motivation through leadership and job enrichment. 3. Promotion and rewards through performance appraisal. 4. Grievance handling 5. Structuring the organisation
Input Transaction Documents

The various forms or documents which serve as inputs for the personnel department are listed as follows: 1. Personnel application form 2. Appointment letter 3. Attendance and leave record 4. Biodata, self and family 5. Appraisal form 6. Production/Productivity data on the jobs 7. Wage/Salary agreement 8. Record of complaints, grievances, accidents 9. Industry data on wage/salary structure 10. Industry data on manpower, Skills, Qualifications. 11. Record of sources of manpower- University, Institution, Companies 12. Record on manpower application trend in view of mechanization, 13. automation, and computerisation
Applications The viewers of the database are personnel managers, heads of the human resource development department and top management. Accounting Following entities are accounted in the personnel management system. 1. Attendance 6. Accidents 2. Manpower 7. Production data 3. Leave 8. Skills 4. Salary/wages, statutory deductions 9. Bio Data 5. Loans and deductions 10. Family data
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Query
Personnel management has queries as the following: 1. Who is who? 2. Strength of section, department, division. 3. Number of persons with a particular skill. 4. Attendance, leave and absenteeism record of all employees. 5. Salary/Wage of employees. 6. Designations and number of persons holding these designations 7. Personal records of the employees.
The queries are processed with employee number, skill code, department/division code as keys
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Analysis
1. Analysis of attendance by a class of employees. 2. Leave analysis by a group of employees. 3. Trend in the leave record. 4. Analysis of accidents and types thereof. 5. Analysis of salary/wages structure. 6. Analysis of overtime.
Control
1. Probable absence versus workload. 2. Projection of personnel cost against manpower increase. 3. Assessment of accident records against safety measures taken. 4. Personnel cost versus Industry cost and its projection 5. Projection of manpower needs and evolving recruitment and training programmes.
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Reports
The reports of the system will be used mainly by the Personnel Department and the Top Management. Following is the list of reports of different categories. Statutory reports
There are some statutory reports which are to be prepared by the personnel department of almost all the organisation. These are as follows: I. Attendance record (Muster). 2. Strength of the employees by category-permanent, trainees, and apprentices. 3. Provident Fund, ESI Reports, Ledgers and Returns. 4. Accident Reports 5. Income Tax Form 16, 24A 6. Strength of employees to Director General of Technical Development (DGTD) These reports are submitted to the Provident Fund Authorities, ESI Authorities, Income Tax Department, Directorate of Industrial Safety and Health, and Labour Department.
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Information updates
1. Daily attendance report. 2. Employee strength. 3. Joining and transfers of the employees. 4. Personnel cost by department, job, product. 5. Periodical statements showing personnel cost by salary/wages, overtime.
Operation update
1. Daily attendance to plan the workload 2. Overtime versus work completed. 3. Projected absenteeism and distribution of workload. 4. Cost of personnel by jobs or work completed.
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Decision analysis
1.Analysis of attendance for season, festival and by skills, scheduling of the jobs accordingly. 2.Overtime analysis by department, employees and job to decide the strength of personnel. 3.Analysis of accidents and deciding on safety measures and training. 4.Cost analysis by personnel versus jobs vs skills and planning for new recruitment.
Action reports
1. Recruitment and additional manpower or subcontracting of jobs. 2. Acceptance of orders on the basis of workload. 3. Reduction, transfer and reorganization of employees to control costs. 4. Preparation of training and development programmes with specific needs. Most of these reports are used by people in operations management. The information needs at the top management emerge when issues of controlling the wage bill, entering into new agreement etc.
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Personnel and HRMS Model
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Application of MIS in Financial Management

Financial management function has a primary objective of meeting the financial needs of the business, from time to time, by way of providing working capital and long-term capital to run the business with the goal of containing the cost of capital at the minimum. The second objective of financial management is to meet the statutory compliance by way of declaring the audited financial results, submit all reports and returns to the Government and Tax Authorities and fulfill the obligations to the shareholders. In meeting these objectives Financial Management uses variety of tools and techniques as under: 1. Break Even Analysis 2. Cost Analysis
3. Cash Flow Projections 4. Ratio Analysis 5. Capital Budgeting and ROI Analysis 6. Financial Modeling
7. Management Accounting
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8. Expense Analysis, Auditing and Control
Input Transaction Documents

1. Payments : To suppliers, authorities, employees, shareholders, financial institutions and others. 2. Receipts: From customers, authorities, employees, financial institutions and others. 3. Data from Stock Exchange of the share prices, consolidated financial results of the other companies, etc. Transactions are payments and receipts and they are documented through journal vouchers, bills, debit notes, credit notes, receipts and transfer document. The payment and receipts are for a variety of purposes and they are documented in typical formats suiting the respective business enterprise.
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Applications In financial management major application is the Financial Accounting System, which accounts for the financial transactions of the company and produces financial results for the company. It produces balance sheet for the company where the performance of the company is published in standard format prescribed by the government. There are companies where fixed deposits and share accounting are also part of financial functions. The system is made so comprehensive that it not only collects data but also collects data on different matters such as job, department, division and so on. Due to versatility of the financial management system, it becomes a repository of financial data which can be used in the other systems of the enterprise. It forms a basis for certain reports which are required by the top management. The viewers of the financial database are, finance managers,jcost controllers, auditors, materials managers, marketing managers, company secretaries and the top management.
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Accounting The system accounts for all money transactions which have taken place, directly or indirectly, and which affect the company. The financial management system accounts typically for the following: 1.Sales 9. Income Tax 2.Purchase 10. Sales Tax 3. Salary/Wages 11. Excise Duty 4. Inventory 12. Customs Duty 5. Expenses 13. Octroi and other Local Taxes 6. Capital Purchase 14. Consumption 7. Fixed Deposits 15. Budgets 8. Shareholder's Funds 16. Fixed Assets Financial management accounting system provides a lot of data and information which forms a valid database for other applications in the business.
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Query
The query system throws light on the debit or credit balance of an account. It shows the details or transactions which have resulted into that balance. The query is processed for the following with the respective codes as keys. 1. Main account 2. Subsidiary account 3. Location (Factory, Branch etc.) 4. Document (BiiIs, Credit note, Debit note, Receipt, etc.) The query processes the transactions and shows the current status of the reference such as Account, Document, etc..
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Analysis
Financial management calls for a number of decisions, based on the analysis of the financial status of the company. The decisions fall in all areas of financial management. The decisions are, borrowing of short-term working capital, sources of finance, analysis of debtors and creditors, and revision of credit terms, capital budgeting and selection of investment alternatives, etc. The applications which support the above decisions are: 1. Cash flow analysis 2. Sources and uses of funds 3. Debtors analysis and aging 4. Creditors analysis and aging 5. Budget analysis 6. Ratio analysis and management norms 7. Capital budgeting and ranking of investment alternatives 8. Cost analysis of various production inputs and alternatives
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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. The control is exercised, based on the exceptions found in the business operations. Some exceptions are mentioned as follows:
Accounts receivables, outstanding beyond the acceptable norms. Advances to creditors and non realisation of obligations. Valuation of non-moving inventory for disposal. Analysis of non-moving accounts and legal actions. 5. Shortage of funds in excess of planned and rescheduling of activities, priorities. 6. Cost overruns beyond the norms and action on alternatives. 7. Performance analysis of lines of business showing adverse performance leading to the decision-whether to continue or discontinue the line of business. Most of the control applications are based on the principle of feed forward control where failure is sensed earlier and action is desired immediately.
1. 2. 3. 4. 5.
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Reports
A major portion of a financial management system is devoted to the statutory reports and operations update. The top management heavily relies on the reports source from the financial management system.
Statutory reports 1. 2. 3. 4. 5. Tax Returns. Registers: Sale Tax, Excise, Tax deducted at source. Declaration of certain results to the financial institutions. Declaration of financial results to the public every six months. Declaration of annual results to the Board, Shareholders and Public within a stipulated time.
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Information updates
1. 2. 3. 4. 5. 6. 7. 8. 9. Monthly Trial Balance, Balance Sheet and Profit and Loss Account. Stock Valuation. Accounts receivables and aging. Accounts payables and aging. Expenses on major accounts. Cash position. Payments and receipts which are statutory obligations. Sales, Purchase of assets by certain classification. Overall business achievements in major lines of business.
Operations updates
1. 2.
3. 4. 5. 6.
Filing of statutory returns and reports. Statutory payments such as Advance Tax, Sales Tax, Octroi, Excise Duty, etc. Transactions executed and accounted in the system. Report on finished goods, dispatches and invoicing. Reports on material receipts and payments to the suppliers. Obligatory payments such as rents, insurance premium, membership fees, interest, and dividend. If operations updates are satisfactory, the management can infer that business transactions are taking place in order.
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Decision analysis
1. 2. 3. Break Even Analysis for cost and price decision. Return on Investment Analysis for choice of investment. Trend Analysis on price of selected commodities which playa crucial role in business performance leading to decisions of alternative material, supplier, change in product design, etc. Cash now, sources and uses of funds, leading to control on expenses and selection of alternative source of financing. Analysis of current and fixed assets in terms of use and decision on alternate use or disposal. Analysis of current liabilities and decision on liquidation on priority basis. Analysis of overdue receivables and decision on the revision of terms or commercial and legal actions.
4.
5.
6. 7.
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Action Reports
Though decision analysis indicates the areas of decisions, action is taken in exceptional cases. Exception reports on implementation of the decision and its impact on the business are listed as follows: 1. Overdue receivables a. Legal action. b. Termination of business association 2. Non supply of goods and services but advance paid. a. Legal action b. Revision of terms c. Termination of business association 3. Payments to creditors, where penalties are involved. 4. Poor usage of fixed assets and disposal. 5. Non-moving inventory of, say, more than two years and its disposal. 6. Evolving new systems and procedures to control expenses and implementation.
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Finance Accounts System Model
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Application of MIS

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Application of MIS

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Application of MIS

M.Viswanathan Systems Manager Kerala Agricultural University viswanm@yahoo.com Mob: 9447614792

Unconditional Love is the divine bliss

INFORMATION SYSTEM MODEL

Unconditional Love is the divine bliss

Unconditional Love is the divine bliss

Model of Information Processing System

APPLICATION DEVELOPMENT SYSTEM

Unconditional Love is the divine bliss

Unconditional Love is the divine bliss

Unconditional Love is the divine bliss