Part 4.0: QUANTITATIVE TECHNIQUES: SOFTWAREGENERATED INFORMATION 4.

1 MIS and Information Processing Tools

Outcome 4.0: Use software-generated information to make decisions at operational, tactical and strategic levels in an organization. Criteria 4.1: Review management information systems and suggest appropriate information processing tools for operational, tactical and strategic levels of the organization

Management Information System

Definition: A computer-based system that provide flexible and speedy access to accurate data. Plays a vital role in the management of organization and decision making. MIS in every organization is either manual or combination of man and machine underlying the management functions of planning, organizing, directing and controlling.

Management Information System

MIS provide the managers with the accurate and timely information that are relevant to decisionmaking needs in regard to the established of objectives, policies and strategies of the organization.

Organizational and Information System Structure

MIS provide the managers with the accurate and timely information that are relevant to decisionmaking needs in regard to the established of objectives, policies and strategies of the organization.

Major Types Of Systems In Organizations

KIND OF INFO SYSTEM Strategic level Management level Knowledge level GROUP SERVED

Operational level
FUNCTIONAL Sales & Marketing AREA
Manufacturing

. . . .
Finance

Senior manager

Tactical level

Middle manager

Knowledge and data workers

Operational managers
Accounting Human Resources

Typical Management Information System

Classification of organization can be based on the functional discipline of management - Marketing, finance, psychology, mathematics etc.

Typical Management Information Systems Decision Production Finance Personnel Marketing Level Strategic New plant Alternative Welfare Competitor location financing policy survey Tactical Production Variance Performance Advertising bottleneck analysis appraisal Operational Daily Payroll Leave records Sales scheduling analysis

Typical Management Information System

Typical Management Information Systems Decision Production Finance Personnel Marketing Level Operational Daily Payroll Leave records Sales scheduling analysis Daily schedule detailed assignment of jobs to machines or machines to operation in a production environment. E.g: duty roster Payroll major consideration in the design of such systems: must execute accurately, data pertaining to a large number of staff in a timely manner, month after month, cost based efficiency and speed

Typical Management Information System

Typical Management Information Systems Decision Production Finance Personnel Marketing Level Operational Daily Payroll Leave records Sales scheduling analysis Leave records record that must be maintained for every employee, throughout the years of serves in the organization. Detailed sales analysis data collection, data processing for every salesman, range of product over a long time span details of the region, market segment etc. quality of tactical and strategic decision may be based form this summary information.

Typical Management Information System

Typical Management Information Systems Decision Production Finance Personnel Marketing Level Tactical Production Variance Performance Advertising bottleneck analysis appraisal Production bottleneck analysis in manufacturing environment called for senior involvement. Result have medium range impact provide summary info. Variance analysis system that point out deficiencies, cost overruns, budget excesses, etc. accuracy, clear recognition and highlighting of pattern that can help the decision maker to initiate action and bring systems under control are important.

Typical Management Information System

Typical Management Information Systems Decision Production Finance Personnel Marketing Level Tactical Production Variance Performance Advertising bottleneck analysis appraisal Performance appraisal individual employees leave records . The details may not be important, but the patterns are, whenever they are clearly visible. Advertising information system use much of the info generated by detailed sales analysis (an operational MIS). Able to decide level of advertisement, mix of advertisement, budget of advertisement etc.

Typical Management Information System

Typical Management Information Systems Decision Production Finance Personnel Marketing Level Strategic New plant Alternative Welfare Competitor location financing policy survey New plant location requires much of the internal info. generated by the tactical system, but long-term decision is likely to be influenced far more by environment info. Such as changing market, changing tech., changing fiscal and government policy. Alternate financing uses summary info about internal finance (payroll, budget, overruns, variance analysis) governed by long-term policy, business environment etc. important to the survival and growth of the organization

Typical Management Information System

Typical Management Information Systems Decision Production Finance Personnel Marketing Level Strategic New plant Alternative Welfare Competitor location financing policy survey

Welfare policy influence by internal info about the size and quality of staff, the compensation package, etc. strategic decision will be governed by vision for the future of organization as well as labor market conditions of environment. Competition resulting strategy of gaining a major market share depends on present and future competitors strategies.

Information Processing Tools

Information processing tools used is depends on the decision required at each level of organization (operational, tactical and strategic) Example of information processing tools: i. Computers ii. Internet iii. Spreadsheet iv. Maps v. Models vi. databases

Information Processing Tools

Functional area: Marketing
Example of decision at operational level of organization Decision : The estimated sales for the next six months Information processing tools : Record on monthly sales, Database, - Use the recorded data to make an analysis of sales performance/demand.

Example of decision at tactical level of organization Decision : What kind of advertising techniques to used? Information processing tools : Model produce from the sales analysis > decide level of advertisement, budget, advertising mix appropriate.

Information Processing Tools

Functional area: Marketing
Example of decision at strategic level of organization Decision : How to make competition with competitor Information processing tools : Internet, Website - study the competitors performance study the trend > make new policy on profit margin which could affect the price of the product.

Bottleneck Analysis
Bottleneck analysis is a critical element in understanding any operation. Bottlenecks are the constraints that limit the ability of a process to produce at a higher level. There are many reasons why bottlenecks could occur in operations. Bottlenecks could be due to: Improper scheduling, Insufficient capacities, Improper line balancing, Breakdowns or repair requirements, Sub-optimal use of the bottleneck resource, etc.

Bottleneck Analysis
All operations - manufacturing, assembly, logistics, banking, hospitality, medical services, etc. -- have bottleneck problems. Simulation help companies find bottlenecks in their processes and test ideas for resolving them.
Simulation helps identify the root cause of bottlenecks in an operation. This information often validates the thinking of operations managers and others who know the process. This will help make sure the proposed changes are effective in addressing the problem at hand.

Bottleneck Analysis
Bottlenecks can be overcome by investigating the operating scenario - by balancing the line, by changing routings, by increasing capacity, by decreasing the number of operators etc. ProModel tools can simulate all these scenarios and will help in highlighting the variations in bottleneck levels, through detailed statistics.