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Outcome 4.0:Use software-generated information to make decisions

at operational, tactical and strategic levels in an

organization.

Criteria 4.1:

Reviewmanagement information systems and suggest

appropriate information processing tools for operational,

tactical and strategic levels of the organization

Part 4.0:

QUANTITATIVE TECHNIQUES: SOFTWARE-

GENERATED INFORMATION

4.1 MIS and Information Processing Tools

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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 themanagement functions of

planning, organizing, directing and

controlling.

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Management Information System

MIS provide the managers with the accurate andtimely information that are relevant to decision-

making 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 decision-

making needs in regard to the established of

objectives, policies and strategies of the organization.

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.

.

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Major Types Of Systems In Organizations

KIND OF INFO SYSTEM

Strategic

level

Management

level

Knowledge

level

Operational

level

Senior manager

Middle manager

Knowledge and

data workers

Operational

managers

Sales &

Marketing

Manufacturing Finance Accounting Human

Resources

Tacticalleve

l

GROUP SERVED

FUNCTIONAL

AREA

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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

DecisionLevel

Production Finance Personnel Marketing

Strategic New plant

location

Alternative

financing

Welfare

policy

Competitor

survey

Tactical Production

bottleneck

Variance

analysis

Performance

appraisal

Advertising

Operational Daily

scheduling

Payroll Leave records Sales

analysis

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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


Decision

Level


Operational Daily

scheduling


analysis

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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 forevery 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.


Decision

Level


Operational Daily

scheduling


analysis

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Decision

Level


Tactical Production

bottleneck

Variance

analysis

Performance

appraisal

Advertising

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.

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Decision

Level


Tactical Production

bottleneck

Variance

analysis

Performance

appraisal

Advertising

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.

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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 andgovernment 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


Decision

Level


Strategic New plant

location

Alternative

financing

Welfare

policy

Competitor

survey

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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 ofenvironment.

Competition resulting strategy of gaining a major market

share depends on present and future competitors strategies.


Decision

Level


Strategic New plant

location

Alternative

financing

Welfare

policy

Competitor

survey

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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. Computersii. Internet

iii. Spreadsheet

iv. Maps

v. Models

vi. databases

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Functional area: Marketing

Information processing tools : Record on monthly sales, Database,

- Use the recorded data to make an analysis of sales

performance/demand.

Decision : The estimated sales for the next six months

Example of decision atoperational levelof organization

Information processing tools : Model produce from the sales

analysis > decide level of advertisement, budget, advertising mix

appropriate.

Decision : What kind of advertising techniques to used?

Example of decision attactical levelof organization

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Functional area: Marketing

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.

Decision : How to make competition with competitor

Example of decision atstrategic levelof organization

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Bottleneck Analysis

Bottleneck analysis is a critical element in understandingany 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.

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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 thethinking 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.

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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 allthese scenarios and will help in highlighting the

variations in bottleneck levels, through detailed statistics.

week 12 MIS

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