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OVER VIEW OF MIS
What is DATA
Collection of Raw facts &
figures is called data
When the DATA is processed and Analyzed
meaningfully it becomes an INFORMATION.
Information has certain characteristics.
These are : Information
• Improves representation of an entity
• Updates the level of knowledge.
• Has a surprise value.
• Reduces uncertainty.
• Aids in decision making.
What is INFORMATION
What is SYSTEM:
A set of components that interact to
accomplish some purpose
Example: a Business is also a system and
its components can be like Marketing,
Manufacturing, Sales, Research, Shipping,
Accounting, and Personnel, where all
these components work together to create
a profit
An Information system can be defined as a
set of interrelated components that collect,
process, store & distribute information to
support decision making & control an
organization
WHAT IS AN INFORMATION SYSTEM
Why Organizations Need IS
• Meeting Global Challenges
• Capturing Opportunities in the Market place
• Supporting Corporate Strategy
• Linking Departments whose Functions are
Different
• Enhancing Worker Productivity
• Increasing the Quality of Goods and Services
Process of Converting Data intoProcess of Converting Data into
InformationInformation
• Collection
• Classification
• Sorting, adding, merging and so on
• Summarizing
• Retrieval
• Dissemination
INFORMATION TECHNOLOGYINFORMATION TECHNOLOGY
and INFORMATION SYSTEMSand INFORMATION SYSTEMS
Information
Technology
Application
+
=
Information
System
Organizational
Context
This is almost a
computer-based
information system
ELEMENTS OF INFORMATION SYSTEM
Classification of Information systems
• Office Automation System (OAS)
• Transaction Processing Systems (TPS)
• Decision Support Systems (DSS)
• Executive Support Systems (ESS)
Office Automation System (OAS)
Office Automation Systems are systems that try to
improve the productivity of employees who need
to process data and information.
Best example is wide range of software systems
that exist to improve the productivity of employees
i.e., Microsoft Office XP , a number of accounting
systems like payroll, invoicing and billing systems
etc.
These systems are used to generate more
information rather than use of the information.
Transaction Processing Systems (TPS)
Transaction Processing Systems are designed to
process routine transactions efficiently and
accurately .
A transaction is said to be completed if and
only if all the associated databases that are
affected by this transaction are updated and all
the updates are completed.
Examples are ATM Money transaction, monthly
payroll and tax payments systems.
Decision Support Systems
(DSS)
Decision support systems are specifically designed to help
management make decisions in situations where there is
uncertainty about the possible outcomes of those decisions
.
DSS often involves complex spreadsheet and databases to
create “what-if “ models.
Executive Support Systems (ESS)
ESS is used directly by senior managers in an
organization.
The information needed will be largely external ,
unstructured and uncertain.
The exact scope and content of the information
needs is not likely to be known a priori to the
analyst.
The requirement is intelligent information i.e.,
market intelligence , investment intelligence and
technology intelligence.
This must often be collected and presented to
the decision maker .
“Management Information system defined as an
integrated , user-machine system for providing
information to support operations , management
and decision-making functions in an organization”
A refined orientation of available sources of
information which enables managers to tie
planning and control procedures to
operational systems of implementation.
OR
MANAGEMENT INFORMATION
SYSTEM
The MIS has more than one definition, some of which are
1.The MIS is defined as a system which provides information support for
decision making in the organization.
2. The MIS is defined as an integrated system of man and machine for
providing the information to support the operations, the management and the
decision making function in the organization.
3. The MIS is defined as a system based on the database of the organization
evolved for the purpose of providing information to the people in the
organization.
4. The MIS is defined as a Computer based Information System.
Information processing : A formal system
 Handling of a voluminous data.
 Confirmation of the validity of data and transaction.
 Complex processing of data and multidimensional analysis.
 Quick search and retrieval.
 Mass storage.
 Communication of the information system to the user on time.
 Fulfilling the changing needs of the information.
The management information system uses computers and
communication technology to deal with these points of supreme
importance.
ROLE OF THE MIS
The system ensures that an appropriate data is collected
from the various sources, processed, and sent further to all
the needy destinations.
The system is expected to fulfill the information needs of an
individual, a group of individuals, the management
functionaries: the managers and the top management.
The MIS satisfies the diverse needs through a variety of
systems such as Query Systems, Analysis Systems, Modeling
Systems and Decision Support Systems the MIS helps in
Strategic Planning, Management Control, Operational Control
and Transaction Processing.
MIS AND THE USER
Every person in the organization is a user of the MIS.
The people in the organization operate at all levels in the
hierarchy.
A typical user is a clerk, an assistant, an officer,
an executive or a manager.
Each of them has a specific task and a role to play in the
management of business. The MIS caters to the needs of
all persons.
The main task of a clerk is to search the data, make a
statement and submit it to the higher level.
contd…
A clerk can use the MIS for a quick search and reporting the
same to higher level.
An assistant has the task of collecting and organizing the data,
and conducting a rudimentary analysis of integrating the data
from different and disciplines to analyze it and make a critical
comment if anything adverse is found.
The MIS offers the methods and facilities to integrate the data
and report the same in a proper format.
An executive plays the role of a decision maker. He is in of
responsibility and accountability a position of a planner and a
decision maker. He is responsible for achieving the target and
goals of the organization.
contd…
The MIS provides facilities to analyze the data and offers the
decision support systems to perform the task of execution. The
MIS provides an action. oriented information.
The manager has a position of responsibility and accountability
for the business results. His management role expands
beyond his management function. He is a strategist and a
long-term planner. He is a person with a foresight, an
analytical ability and is expected to use these abilities in the
functions of top management.
The MIS provides information in a structured or unstructured
format for him to react.
The MIS caters to his constant changing needs of information.
The user of the MIS is expected to be a rational person and
the design of the MIS is based on this assumption.
contd…
Significance of Computerized MIS
• Assists managerial decisional process and control
• Enables access to right information timely that
results in right decisions
• Manual information systems are difficult to be
maintained, result in tedious paper work, needs
more clerical time, causes disjointedness in
information flows.
• Enables decision-making based on facts not on
subjectivity.
• Obliterates the over dependency of expertise of any
particular executive in an organization. Contd..
contd…
•Output, or reports, are usually generated through
accumulation of transaction processing data
•Each MIS is an integrated collection of subsystems, which
are typically organized along functional lines within an
organization
Outputs of a Management Information
System
• Scheduled reports : Produced periodically, or on a schedule
(daily, weekly, monthly)
• Key-indicator report: Summarizes the previous day’s critical
activities. Typically available at the beginning of each day
• Demand report :Gives certain information at a manager’s
request
• Exception report : Automatically produced when a situation
is unusual or requires management action
Characteristics of a MIS
• Provides reports with fixed and standard formats
• Hard-copy and soft-copy reports
• Uses internal data stored in the computer system
• End users can develop custom reports
• Requires formal requests from users
MIS for Competitive Advantage
• Provides support to managers as they work
to achieve corporate goals
• Enables managers to compare results to
established company goals and identify
problem areas and opportunities for
improvement
MIS and Web Technology
• Data may be made available from management
information systems on a company’s intranet
• Employees can use browsers and their PC to
gain access to the data
MIS Communication Process
Input Processor Output
Information
Information
Recorded
Stored
Retrieved
Processed
Summarized
Classified
Reports
Decisions
To
Planning,
Operating,
Controlling
Systems
To
Management
Systems
Feedback
Pillars of C-MIS 4-Cs
1. Computers
2. Content
3. Connectivity
4. Competencies
Challenges of the MIS Development Process
Quantity of information and its content - that is what the information
describes, just one of the parameters used for identifying management
information requirements. Other parameters include the following
factors:
•Nature of Analysis and Presentation: This determines the extent
to which the information is easy or difficult to understand by the
manager and
•the time needed to spend in doing so (pre-defined versus as requested
or required).
•Time of availability: There are several dimensions to this parameter
including frequency, recency, acquisition lead time, on-demand v/s
routine, periodic versus occasional, repetitive versus one time.
•Accuracy.
•Reliability.
•Security and Authentication.
Any good MIS design and development process must
address the following issues effectively –
•Problems of effective communication between users and
developers of MIS. MIS development calls for good
understanding of management, industry, and IT, all of which
are usually not available with either the MIS users or
developers.
•Problems in understanding and combining information needs
of managers from different functions and levels in a common
MIS. Considerations of economy, speed, and data integrity
favours a unified MIS covering the whole organisation.
However, because of complexity of designing and developing
a truly unified MIS, it has remained an ideal rather than reality
in practice.
• Usually a management system, of which MIS is a sub-system,
is a very complex system, comprising of a vast array of
different types of subsystems, interacting with the
environment which is even more complex. In a situation like
this it is a laborious, costly and time consuming task to
understand this management system and define its
requirements.
• Need for the organisation to keep pace with changes in
environment, increasingly demanding customer and
intensifying competition.
• Using effectively the opportunities fast developing in IT
capabilities.
• Keeping in control the capital cost and time of installing
advanced IT based systems. These can be substantial and
have a tendency to escalate easily.
• Eliminating the need for frequent and major modifications in the
MIS. This is relative difficulty and costly for advanced IT based
MIS.
• Need to manage the human aspect of the MIS user, and other
stakeholders such as employees, customers, suppliers, and
other environmental agencies.
• Managers need to decide on the types of information systems
that should be installed in the organisation to support and
facilitate their management duties and responsibilities.
• Emergence of sophisticated IT including computers,
telecommunication and automation has created new
opportunities for the improvement of operational and managerial
performance. To use these opportunities, managers and MIS
developers need to adopt appropriate methods for designing,
developing and implementing MIS.
Information technology offers many opportunities for improving
business performance through improving managerial
effectiveness and business process transformation.
The total MIS development project can be broadly divided in
two major parts –
• determining information needs for managers, and designing
and
•developing information systems that fulfill these requirements
effectively and efficiently.
We will first take up the issue of determining the management
information needs, and then discuss the methodologies for
designing and developing information systems.
Determining Management Information Needs
Three methodologies can be adopted to determine
management information needs:
• Business Systems Planning – To specify problems and
decisions. Developed by IBM
• Critical Success Factor (CSF) – Developed by John Rockart
of MIT
• End/Means (E/M) analysis – Developed by Wetherbe and
Davis at the University of Minnesota
Contd..
Major activities involved in a BSP study are:
• Top management making a commitment to the MIS
development project.
• Organise a BSP study team consisting of managers from
different functional areas.
• Hold a kick-off meeting of the BSP study team.
• Identify major business processes in the organisation that
are needed to manage the resources of the business.
• Define data classes using different matrices to establish
relationships among the organisation, its processes and data
requirements.
Contd..
• The process/ organisation matrix relates the organisational
process activities to people responsible for these activities.
• Also the classes or types of data that are used for different
processes are identified and charted on another matrix of
data class versus processes showing indicating processes
that use or create the data.
• Determine executive perspective on how effectively the
current MIS is supporting various business processes.
• Identify business problems as perceived by managers,
processes impacted, processes causing the problems, and
the impact of the problem.
Contd..
• Identify systems development projects based on data
classes and business processes, and based on this define
an information architecture.
• Determine priorities for the system development projects
based on their benefit, impact, probabilities of success and
demand based on value to users.
• Review information system management capability to
develop proposed integrated database to environment
supporting multiple applications.
• Develop recommendations and action plan to move
towards the planned integrated database environment and
develop required applications.
Critical Success Factor (CSF) Method
• CSF method identifies key business goals and
strategies that must be addressed with business
strategy.
• An effective way of spotting business problems is to
develop key indicators of the health of the business and
to focus on significant deviations from planned
performance.
• In the first step in the CSF method, the manager
identifies his or her goals.
• In the next step he looks for the critical success factors
underlying these goals – that “ what has to go right” to
achieve a business goal
Contd..
• The critical success factors applicable to a company depend
on the nature of the industry and the business strategy
adopted by the company.
• Information need of managers is derived from the critical
success factors by finding ways of measuring how well
these are being achieved.
• Each of the measure of CSF effectiveness becomes an
input for defining information system requirements. After
compiling all the different information needs, decisions can
be taken on the best ways of making these available to the
managers.
• The CSF method enables managers to identify their own
information needs clearly and correctly.
Contd..
• The MIS can then be limited to only such information,
eliminating all other reports, which are often created in
traditional MIS more because of easy availability of input
data rather than based on value of information contained.
• The main limitation of the CSF method is that it focuses
on information needs of individual managers, rather than
the organisation as a whole.
End/Means (E/M) Analysis
Its purpose is to determine effectiveness criteria for outputs
and efficiency criteria for the process generating the outputs.
• The first part of the E/M analysis process, related to the
“end” aspect, starts with identifying outputs or services
provided by the business process, and moving on to
clarifying what makes these outputs effective for the
recipient or the user.
• Finally information needed to evaluate the effectiveness of
outputs is selected.
Contd..
The other part of E/M analysis, concerned with specifying
efficiency criteria for the processes generating the outputs is
based on answers to three questions:
• What are the key means or processes used to generate or
provide the outputs?
• What constitutes efficiency in providing the outputs?
• What information is needed to evaluate that efficiency?
Contd..
Systems Development Life Cycle (SDLC)
Approach
•One widely used system development methodology is “Systems
Development Life Cycle (SDLC)” approach.
•It is a structured technique for developing systems that cover
procedures for controlling information system development
projects.
•It is a useful tool for producing reliable and maintainable
systems.
•In SDLC, each stage (subsystem) is defined in terms of
activities, responsibilities, milestones and deliverables (the
output from one subsystem to another subsystem).
Contd..
• The SDLC approach helps to control the large and
• complex systems that consume large amounts of time and
resources.
SDLC may divide the total project from four to 12 phases. One
phase is completed before beginning the next phase.
This approach emphasizes documentation and checkpoints, and
requires detailed planning and budgeting at each phase.
SDLC has the following advantages and disadvantages:
Advantages
• Lends itself to good control
• Phase deliverables well defined
• Clear checkpoints makes reviews easy
• Creates detailed documentation which is valuable for maintenance
Contd..
Disadvantages
•Time and cost estimation is difficult
•Can be very slow
•Requires that requirements are defined abstractly, without
interaction with the “system”
•Overall ownership of the process is usually on “systems”
people
The key steps of systems development life cycle (SDLC) are
listed below:
• Problem Definition
• Feasibility Study
• Systems Analysis
• Systems Design
• Detailed Systems Design
• Implementation
• Maintenance
Steps in MIS Planning & Design
1. Determination of Users’ needs
2. Identification of inputs and users
interface
3. Determination of the Scope of the system
4. Budgets
5. Scheduling
Phases of MIS Design &
Development
1. Study and Analysis Phase
2. Design Phase
3. Implementation Phase
Study and Analysis Phase
1. Study organizational goals and problems
2. Analyze available resources and
opportunities
3. Analyze technological and human
resources capabilities
4. Evaluate the MIS design project using
cost benefit analysis
Design Phase
1. Determine requirements of subsystems
2. Evaluate and define the proposed sub-
systems
3. Determine the degree of computerization
4. Create database
5. Establish input and output forms
6. Feedback from all levels of users
7. Develop applications prototype
8. Document
Implementation Phase
• Organize computer infrastructure
• Train users on basic operations
• Develop applications
• Train users on application modules
• Feedback from all levels of users
• Modify modules based on user feedback
• Debug the test application modules
Contd..
• Test the complete system
• Feedback on complete system
• Debug the complete system
• Evaluate the complete system
• Document
• Switch to new MIS system
• Evaluate periodically
• System maintenance
• Establish plans for future MIS
Contd..
MIS Plan is linked to the Business Plan
MIS goals and objectives
•It is necessary to develop the goals and objectives for the MIS
which will support the business goals.
•The MIS goals and objectives will consider management
philosophy, policy constraints, business risks, internal and
external environment of the organization and the business.
The typical statements of the goals are as under.
• Provide online information on the stocks, markets and the
accounts balances.
 The query processing should not exceed more than three
seconds.
 The focus of the system will be on the end user computing and
access facilities.
 Information support will be the first in the strategic areas of
management such as marketing or service or technology.
Business plan MIS plan
Business goals and
objectives.
Management information system,
objectives, consistent to the business
goals and objectives.
Business plan and
strategy.
Information strategy for the business
plan implementation playing a
supportive role.
Strategy planning and
decisions.
Architecture of the Management
Information System to support
decisions
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
Business Plan Versus MIS Plan
Level of uncertainty Level of
management
Method
Low (Near
certainty)
Operations
management.
Ask Questions such as, what
do you need ?
Precise
probabilistic
knowledge (A risk
situation)
Middle
management
Determine from the existing
systems and methods of
decision making and problem
solving.
Not able to
determine in
probabilistic terms
precisely
(Very risky)
Middle and top
management.
Determine through the critical
success factors, decision
parameters and decision
methodology.
High (Total
uncertainty)
Top
management.
Determine through
experimentation, modeling
and sensitivity analysis.
Methods of Handing Uncertainty
DEVELOPMENT AND IMPLEMENTATION OF
MIS
* Prototype Approach
* Life Cycle Approach
When the system is complex, the development strategy is
Prototyping of the system.
Prototyping is a process of progressively ascertaining the
information needs, developing methodology, trying it out on a
smaller scale with respect to the data and
the complexity, ensuring that it satisfies the needs of the
users, and assess the problems of development and
implementation.
MIS Model: Prototyping Approach
Life Cycle Approach
Prototyping approach Life cycle approach
Open system with a high degree of
uncertainty about
the information needs.
Closed systems with little or no
uncertainty about the information needs.
The system remains valid for a long time
with no significant change. The design
would
remain stable.
Necessary to try out the ideas,
application and efficiency of the
information as a decision support.
No need to try out the application of the
information as it is already proven.
Necessary to control the cost of the
design and development before the
scope of the system and its application is
fully determined. Experimentation is
necessary.
Scope of the design and the application
is fully
determined with clarity and
experimentation is not
necessary.
Comparison of Approaches
Contd….
User of the system wants to
tryout the system before he
commits the specification
and the information
requirements.
The user is confident and
confirms the specifications
and
the information needs.
The system and application
is highly custom oriented.
The system and application
is universal and governed by
the principles and practices.
Contd….
Implementation of MIS
Implementation of the MIS in an organization is a process where
organizational transformation takes place. This change can occur
in a number of ways.
The Lewin.s model suggests three steps in this process.
The first step is unfreezing the organization to make the people
more receptive and interested in the change.
The second step is Choosing a course of action where the
process begins and reaches the desired level, and
the third step is Refreezing, where the change is consolidated
and equilibrium is reinforced.
Contd….
Many a times, this process is implemented through an external
change agent, such as a consultant, playing the role of a
catalyst.
The significant problem in this task is the resistance to change.
The resistance can occur due to three reasons, viz.,
the factors internal to the user of information,
the factors inherent in the design of the system and
the factors arising out of the interaction between the system
and its users.
The problem of resistance can be handled through education,
persuasion, and participation. This itself can be achieved by
improving the human factors, and providing incentives to the
users, and eliminating the organizational
problems before implementing the system.
Contd….
MANAGEMENT OF QUALITY IN THE MIS
The quality of the parameters is assured if following steps are
taken.
1. All the input is processed and controlled.
2. All updating and corrections are completed before the data
processing begins.
3. Inputs (transactions, documents, fields and records) are
subjected to validity
checks.
4. The access to the data files is protected and secured through
an authorization
scheme.
5. Intermediate processing checks are introduced to ensure that
the complete data is
processed right through, i.e., run to run controls.
Contd….
6. Due attention is given to the proper file selection in terms of
data, periods and so on.
7. Back-up of the data and files are taken to safeguard
corruption or loss of data.
8. The system audit is conducted from time to time to ensure
that the computer system
specifications are not violated.
9. The system modifications are approved by following a set
procedure which begins
with authorization of a change to its implementation followed by
an audit.
10. Systems are developed with a standard specification of
design and development.
11. Computer system processing is controlled through
programme control, process control and access control.
Contd….
MIS: THE FACTORS OF SUCCESS AND
FAILURE
If a MIS is to be a success then it should have all the features listed as follows.
 The MIS is integrated into the managerial functions. It sets
clear objectives to ensure that the MIS focuses on the major
issues of the business. Also adequate development
resources are provided and the human and organizational
barriers to
progress are removed.
 An appropriate information processing technology required
to meet the data processing and analysis needs of the users
of the MIS is selected.
 The MIS is oriented, defined and designed in terms of the
users requirements and its operational viability is ensured.
Contd….
 The MIS is kept under continuous surveillance, so that its
open system design is modified according to the changing
information needs.
 MIS focuses on the results and goals, and highlights the
factors and reasons for non-achievement.
 MIS is not allowed to end up into an information generation
mill avoiding the noise in the information and the
communication system.
 The MIS recognizes that a manager is a human being and
therefore, the systems must consider all the human behavioral
factors in the process of the management.
Contd….
 The MIS recognizes that the different information
needs for different objectives must be met with. The
globalization of information in isolation from the
different objectives leads to too much information and
its non-use.
 The MIS is easy to operate and, therefore, the
design of the MIS has such features which make up a
user-friendly design.
Contd….
Many a times MIS is a failure. The common factors which are
responsible for this are listed as follows.
 The MIS is conceived as a data processing and not as an
information processing. The MIS does not provide that
information which is needed by the managers but it tends to
provide the information generally the function calls for. The
MIS then becomes an impersonal system.
 Underestimating the complexity in the business systems
and not recognizing it in the MIS design leads to problems in
the successful implementation.
Adequate attention is not given to the quality control aspects
of the inputs, the process and the outputs leading to
insufficient checks and controls in the MIS.
Factors Contributing to Failures
 The MIS is developed without streamlining the transaction
processing systems in the organization.
 Lack of training and appreciation that the users of the
information and the generators of the data are different, and
they have to play an important responsible role in the MIS.
 The MIS does not meet certain critical and key factors of its
users such as a response to the query on the database, an
inability to get the processing done in a particular manner, lack
of user-friendly system and the dependence on the system
personnel.
 A belief that the computerized MIS can solve all the
management problems of planning and control of the business.
Contd….
 Lack of administrative discipline in following the
standardized systems and procedures, wrong codings and
deviating from the system specifications result in incomplete
and incorrect information.
 The MIS does not give perfect information to all the users
in the organization.
Any attempt towards such a goal will be unsuccessful
because every user has a human ingenuity,
Bias and
certain assumption not known to the designer.
The MIS cannot up these by providing perfect information.
Contd….
Schematic
Functional Aspects
 MIS is an integrated collection of
functional information systems, each
supporting particular functional areas.
An Organization’s
MIS
Financial
MIS
Marketing
MIS
Human
Resources
MIS
Etc.
Accounting
MIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databases
of
external
data
Databases
of
valid
transactions
Transaction
processing
systems
Business
transactions
Business
transactions
ExtranetExtranet
InternetInternet
Etc.
Financial statements
Uses and management
of funds
Financial statistics
for control
Operational
databases
Databases
of valid
transactions
for each
TPS
Transaction
processing
systems
Business
transactions
Business
transactions
Internet
or
Extranet
Internet
or
Extranet
Financial
MIS
Business
transactions
Databases of
external data
Databases of
internal data
Financial
DSS
Financial
ES
Financial
applications
databases
Customers,
Suppliers
Financial MIS
• Provides financial information to all
financial managers within an organization.
Schematic
Inputs to the Financial
Information System
• Strategic plan or corporate policies
– Contains major financial objectives and often projects
financial needs.
• Transaction processing system (TPS)
– Important financial information collected from almost
every TPS - payroll, inventory control, order
processing, accounts payable, accounts receivable,
general ledger.
– External sources
– Annual reports and financial statements of
competitors and general news items.
Financial MIS Subsystems
and Outputs
• Financial subsystems
– Profit/loss and cost systems
– Auditing
– Internal auditing
– External auditing
– Uses and management of funds
Manufacturing MIS
Schematic
Quality control reports
Process control reports
JIT reports
Operational
databases
Databases
of valid
transactions
for each
TPS
Transaction
processing
systems
Business
transactions
Business
transactions
Internet
or
Extranet
Internet
or
Extranet
Manufacturing
MIS
Business
transactions
Databases of
external data
Databases of
internal data
Manufacturing
DSS
Manufacturing
ES
Manufacturing
applications
databases
Customers,
Suppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing MIS
• Strategic plan or corporate policies.
• The TPS:
– Order processing
– Inventory data
– Receiving and inspecting data
– Personnel data
– Production process
• External sources
Manufacturing MIS
Subsystems and Outputs
• Design and engineering
• Master production scheduling
• Inventory control
• Manufacturing resource planning
• Just-in-time inventory and manufacturing
• Process control
• Computer-integrated manufacturing (CIM)
• Quality control and testing
Marketing MISMarketing MIS
• Supports managerial activities in product
development, distribution, pricing
decisions, and promotional effectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperational
databases
Databases
of valid
transactions
for each
TPS
Transaction
processing
systems
Business
transactions
Marketing
MIS
Databases of
external data
Databases of
internal data
Manufacturing
DSS
Manufacturing
ES
Marketing
applications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MIS
• Strategic plan and corporate policies
• The TPS
• External sources:
– The competition
– The market
Marketing MIS Subsystems
and Outputs
• Marketing research
• Product development
• Promotion and advertising
• Product pricing
Human Resource MIS
• Concerned with all of the activities related
to employees and potential employees of
the organization
Benefit reports
Salary surveys
Scheduling reportsOperational
databases
Databases
of valid
transactions
for each
TPS
Transaction
processing
systems
Business
transactions
Human
Resource
MIS
Databases of
external data
Databases of
internal data
Manufacturing
DSS
Manufacturing
ES
Human
resource
applications
databases
Training test scores
Job applicant profiles
Needs and planning
reports
Inputs to the Human Resource
MIS
• Strategic plan or corporate policies
• The TPS:
– Payroll data
– Order processing data
– Personnel data
• External sources
Human Resource MIS
Subsystems and Outputs
• Human resource planning
• Personnel selection and recruiting
• Training and skills inventory
• Scheduling and job placement
• Wage and salary administration
Other MISsOther MISs
• Accounting MISs
– Provides aggregated information on
accounts payable, accounts receivable,
payroll, and other applications.
• Geographic information systems (GISs)
– Enables managers to pair pre-drawn maps
or map outlines with tabular data to
describe aspects of a particular geographic
region.
MGNREGA MIS – A Over View
Input Processor Output
• Admin Unit
• Receipt of
Funds
• Application for
JC/Work
• Opening of
Projects
• Allocation of
Employment
• Social Audit
Notice
• Complaint
Receipt
Application processing,
Family Registration,
Measurement, MR,
Payment, Accounting
Recorded
Stored
Retrieved
Processed
Summarized
Classified
Variance
Reports on
•Employment
provided
•Wages paid
•Expenditure
•Works
completed
•Complaints
disposed
•Social audit
completed
To
Planning,
Operating,
Controlling
Systems
To
Management
Systems
Feedback
Labour Budget Planning by DPCs and its submission in
District Panchayats (Monthly forecast areawise of
expected employment demand for the coming year)
I.E.C.
Campaign
Administrative & Technical Strengthening
Information,EducationandCommunication(IEC),RegistrationandDisposalofComplaintsa
Information(ReportingandDisclosure),Monitoring,EvaluationandReview
Office Development and Management
(Creation of office space, Procurement of
goods and services, ICT functionality )
Issue of Work
Allocation Letters
to individual
applicants for
work
Matching of Work Demand & Provision
NATIONAL RURAL
EMPLOYMENT
GUARANTEE ACT, 2005:
BOX DIAGRAM
Procurement of
materials at approved
rates from approved
suppliers
Reporting to
worksite by
Applicants
Project Planning by DPCs, POs, GPs
(Seasonwise and Areawise Selection of Sites and Works,
Cost Estimation, Technical Sanction and Administrative
Approval of Projects, Approval by Gram Sabha, GPs,
Intermediate and District Panchayats, Materials Planning,
Empanelment of Mates or Work Supervisors, etc.)
Social Audit by Gram Sabha : Production of
records and registers by GP in Gram Sabha on
completion of work, objections & their settlement
Formulation of Schemes by States
and of Rules by Central and State
Governments under NREG Act and
Establishment of Central and State
Employment Guarantee Funds
Flow of funds from Center and States
to DPCs, from DPCs to POs and from
POs to Gram Panchayats
No Matching of
Work Demand &
Provision
Staffing
(Assessment of staff requirement,
Engagement, Training, Deployment,
Appraisal and Remuneration of internal or
external personnel including outsourcing
of services)
Payment of
Unemployment
Allowance to work
applicants who are
not provided work
within 15 days as
per the Act
Expenditure Budget
(Capital Budget,
Revenue Budget)
and Scheduling
by Govts, DPCs, POs, GPs
Organization of
Vigilance and
Monitoring Committees
Demand for
Job Cards by
Rural
Households
Issue of Job
Cards to Rural
Households by
GPs / POs
Employment
Demand by
Individuals and
Groups
Issue of Dated
Acknowledgement
receipt by GPs /
POs to Applicants
Opening of Works, Assets-LIvelihood Creation
(Orientation of workers, model pit construction,
creche, shade, drinking water, and signboard with
NREGA Logo; performance and measurement of
work, payment to workers and suppliers,
integration with banks and post offices, entry in
measurement book, muster roll, job cards,
employment register, asset register, works register,
cash book, entry in MIS, inspections and quality
control, UCs, work closure)
Accounting; CAG Audit; Audit by Chartered
Accountants and submission of Audit Report to
Central Government by DPCs for release of funds
NREGS Critical Activities
PLANNING
LABOUR
BUDGET
EXPENDITURE
BUDGET
LABOUR
MANAGEMENT
REGISTRATION
WORK APPS
WORK ACKN
WORK
ALLOCATION
WORK
PERFORMANCE
WAGES PAYMENT
SOCIAL AUDIT
NOTICE
PARTICIPATION
DOCUMENTS
SCRUTINY
OBJECTIONS
SETTLEMENT
REPORT
FINANCIAL
MANAGEMENT
DEMAND FOR
FUNDS
ALLOCATION OF
FUNDS
EXPENDITURE
TRACKING
ACCOUNTING
AUDIT
COMPLAINTS
DATE
COMPLAINANT
ACTION TAKEN
PROJECT
MANAGEMENT
SHELF OF
PROJECTS
ESTIMATION
PROCUREMENT
EXECUTION
CLOSURE
MAINTENANCE
Planning
•Labour Budget
•Areawise
•Monthwise
•Forecast of labour
demand
•Forecast of wages
payable
•Forecast of mandays
to be provided
•Expenditure Budget
•Wages
•Materials
•Salary
•Travel
•Stationary
•Training
•Other office expenses
Financial Management
1. Demand for funds
2. Allocation of funds
3. Expenditure tracking
4. Collection of UCs
1. Accounting
2. Audit
3. Compliance to Audit
4. Proposal for release
of funds
Accounting
• Receipts
– Opening Balance
– Amount received
during the year
• Payments
– Unskilled Wages
– Semi-skilled and
skilled wages
– Materials
– Administrative
Expenses (forms,
stationery, travel,
electricity, telephones,
salary, AMC, etc)
Labour Management
1. Application for Registration
2. Issue of Job Cards
3. Application for works
4. Issue of Dated Acknowledgment Receipt
5. Issue of work allocation letter
6. Joining of workers on project site and their orientation,
group formation, etc.
7. Selection of Mates and Supervisors
8. Entry of work done in Muster rolls
9. Payment of wages
Project Management
1. Shelf of projects – Estimation, TS and AA
2. Selection of Mates and Supervisors
3. Materials Procurement and Payment
4. Preparation of work calendar for projects
5. Workers motivation
6. Work performance and measurement
7. Billing and Muster Roll preparation
8. Payment of wages
9. Inspection of projects
10. Maintenance of project and asset register
11. Submission of UC and work closure
12. Maintenance of Project
Job Card
Holder - Job
Applicant
Project
Muster Roll (Bill)
Preparation
Measurement in
M.B.
Attendance
on MR
Receipt of Funds and Payment
of Wages, Cost of Materials,
Administrative Overheads
(Cash Book)
Processes for
Project
Management
Job Card Register
• Job Card code
(State/District/Block/GP/Village)
• Caste Category – SC, ST, OBC, Others,
Minority
• Household Members’ Details – name, age,
sex, relation with the head of household.
• Details of Payment – Name of member,
member code, days worked, dates (From and
To), Amount paid, MR Code, Project Code,
Mode of payment (bank, PO, cash)
Employment Register
• Date of application
• Applicant’s name
• Job Card No
• Work Demand Dates (From & To)
• Work Allocation Details – Letter No, Date.
• Project Code (in which work allocated)
• No of Days worked
• Amount Paid
• Unemployment Allowance Paid.
Project Ledger
• Project code
• Project name
• Project Type
• Project Description
• Sanction Order No. and Date
• Location
• Estimate
• Expenditure
• Material
• Labour
• Supervisory Officers Details
• Measurement Details
• Muster Roll Details
• Payment Details
Asset Register
1. Asset Code
2. Name
3. Description
4. Type
5. Location
6. Date of creation
7. Historical Cost (Rs lakhs)
8. Project Code
9. Useful Life (End Date)
10.Benefits
Measurement Book
• M.B. No.
• Project Code
• Muster Roll Code
• Dates
• Measurement
• Check Measurement
• Quantity of work
• Measurement
• Check Measurement
• Name of engineers
• Measured by
• Check measured by
Muster Roll
1. Muster Roll Code
2. Project Code
3. Job Card Holders’ code
4. Distance within 5 Km – (Y/N)
5. Days worked
6. Standard Output
7. Actual Output
8. Rate – amount per unit of output
9. Amount – individual and total
10.Acknowledgement
11.Certification by Sarpanch, Engineers, VMC
members, etc.
12.Date of Verification by Social Audit
Complaints and Grievances
1. Details of Complainant
Name, address, whether worker, IA, citizen, VIP
1. Date of complaint
2. Brief Particulars
3. Action Taken
Details, Date
1. Status – Pending, Disposed
2. Remarks
Social Audit
1. Issue of public notice for Gram Sabha
2. Participation by workers, officials, members,
etc.
3. Records production by GPs
4. Scrutiny and objections by GS
5. Settlement of Objections
6. Report
thank you
For more information, please contact
K.Rajeshwar
99481 94093
rajeshwar@nird.gov.in
rajeshk.kadari@gmail.com

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Mis pgdrdm nird

  • 2. What is DATA Collection of Raw facts & figures is called data
  • 3. When the DATA is processed and Analyzed meaningfully it becomes an INFORMATION. Information has certain characteristics. These are : Information • Improves representation of an entity • Updates the level of knowledge. • Has a surprise value. • Reduces uncertainty. • Aids in decision making. What is INFORMATION
  • 4. What is SYSTEM: A set of components that interact to accomplish some purpose Example: a Business is also a system and its components can be like Marketing, Manufacturing, Sales, Research, Shipping, Accounting, and Personnel, where all these components work together to create a profit
  • 5. An Information system can be defined as a set of interrelated components that collect, process, store & distribute information to support decision making & control an organization WHAT IS AN INFORMATION SYSTEM
  • 6. Why Organizations Need IS • Meeting Global Challenges • Capturing Opportunities in the Market place • Supporting Corporate Strategy • Linking Departments whose Functions are Different • Enhancing Worker Productivity • Increasing the Quality of Goods and Services
  • 7. Process of Converting Data intoProcess of Converting Data into InformationInformation • Collection • Classification • Sorting, adding, merging and so on • Summarizing • Retrieval • Dissemination
  • 8. INFORMATION TECHNOLOGYINFORMATION TECHNOLOGY and INFORMATION SYSTEMSand INFORMATION SYSTEMS Information Technology Application + = Information System Organizational Context This is almost a computer-based information system
  • 10. Classification of Information systems • Office Automation System (OAS) • Transaction Processing Systems (TPS) • Decision Support Systems (DSS) • Executive Support Systems (ESS)
  • 11. Office Automation System (OAS) Office Automation Systems are systems that try to improve the productivity of employees who need to process data and information. Best example is wide range of software systems that exist to improve the productivity of employees i.e., Microsoft Office XP , a number of accounting systems like payroll, invoicing and billing systems etc. These systems are used to generate more information rather than use of the information.
  • 12. Transaction Processing Systems (TPS) Transaction Processing Systems are designed to process routine transactions efficiently and accurately . A transaction is said to be completed if and only if all the associated databases that are affected by this transaction are updated and all the updates are completed. Examples are ATM Money transaction, monthly payroll and tax payments systems.
  • 13. Decision Support Systems (DSS) Decision support systems are specifically designed to help management make decisions in situations where there is uncertainty about the possible outcomes of those decisions . DSS often involves complex spreadsheet and databases to create “what-if “ models.
  • 14. Executive Support Systems (ESS) ESS is used directly by senior managers in an organization. The information needed will be largely external , unstructured and uncertain. The exact scope and content of the information needs is not likely to be known a priori to the analyst. The requirement is intelligent information i.e., market intelligence , investment intelligence and technology intelligence. This must often be collected and presented to the decision maker .
  • 15. “Management Information system defined as an integrated , user-machine system for providing information to support operations , management and decision-making functions in an organization” A refined orientation of available sources of information which enables managers to tie planning and control procedures to operational systems of implementation. OR MANAGEMENT INFORMATION SYSTEM
  • 16. The MIS has more than one definition, some of which are 1.The MIS is defined as a system which provides information support for decision making in the organization. 2. The MIS is defined as an integrated system of man and machine for providing the information to support the operations, the management and the decision making function in the organization. 3. The MIS is defined as a system based on the database of the organization evolved for the purpose of providing information to the people in the organization. 4. The MIS is defined as a Computer based Information System.
  • 17. Information processing : A formal system  Handling of a voluminous data.  Confirmation of the validity of data and transaction.  Complex processing of data and multidimensional analysis.  Quick search and retrieval.  Mass storage.  Communication of the information system to the user on time.  Fulfilling the changing needs of the information. The management information system uses computers and communication technology to deal with these points of supreme importance.
  • 18. ROLE OF THE MIS The system ensures that an appropriate data is collected from the various sources, processed, and sent further to all the needy destinations. The system is expected to fulfill the information needs of an individual, a group of individuals, the management functionaries: the managers and the top management. The MIS satisfies the diverse needs through a variety of systems such as Query Systems, Analysis Systems, Modeling Systems and Decision Support Systems the MIS helps in Strategic Planning, Management Control, Operational Control and Transaction Processing.
  • 19. MIS AND THE USER Every person in the organization is a user of the MIS. The people in the organization operate at all levels in the hierarchy. A typical user is a clerk, an assistant, an officer, an executive or a manager. Each of them has a specific task and a role to play in the management of business. The MIS caters to the needs of all persons. The main task of a clerk is to search the data, make a statement and submit it to the higher level. contd…
  • 20. A clerk can use the MIS for a quick search and reporting the same to higher level. An assistant has the task of collecting and organizing the data, and conducting a rudimentary analysis of integrating the data from different and disciplines to analyze it and make a critical comment if anything adverse is found. The MIS offers the methods and facilities to integrate the data and report the same in a proper format. An executive plays the role of a decision maker. He is in of responsibility and accountability a position of a planner and a decision maker. He is responsible for achieving the target and goals of the organization. contd…
  • 21. The MIS provides facilities to analyze the data and offers the decision support systems to perform the task of execution. The MIS provides an action. oriented information. The manager has a position of responsibility and accountability for the business results. His management role expands beyond his management function. He is a strategist and a long-term planner. He is a person with a foresight, an analytical ability and is expected to use these abilities in the functions of top management. The MIS provides information in a structured or unstructured format for him to react. The MIS caters to his constant changing needs of information. The user of the MIS is expected to be a rational person and the design of the MIS is based on this assumption. contd…
  • 22. Significance of Computerized MIS • Assists managerial decisional process and control • Enables access to right information timely that results in right decisions • Manual information systems are difficult to be maintained, result in tedious paper work, needs more clerical time, causes disjointedness in information flows. • Enables decision-making based on facts not on subjectivity. • Obliterates the over dependency of expertise of any particular executive in an organization. Contd..
  • 23. contd… •Output, or reports, are usually generated through accumulation of transaction processing data •Each MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization
  • 24. Outputs of a Management Information System • Scheduled reports : Produced periodically, or on a schedule (daily, weekly, monthly) • Key-indicator report: Summarizes the previous day’s critical activities. Typically available at the beginning of each day • Demand report :Gives certain information at a manager’s request • Exception report : Automatically produced when a situation is unusual or requires management action
  • 25. Characteristics of a MIS • Provides reports with fixed and standard formats • Hard-copy and soft-copy reports • Uses internal data stored in the computer system • End users can develop custom reports • Requires formal requests from users
  • 26. MIS for Competitive Advantage • Provides support to managers as they work to achieve corporate goals • Enables managers to compare results to established company goals and identify problem areas and opportunities for improvement
  • 27. MIS and Web Technology • Data may be made available from management information systems on a company’s intranet • Employees can use browsers and their PC to gain access to the data
  • 28. MIS Communication Process Input Processor Output Information Information Recorded Stored Retrieved Processed Summarized Classified Reports Decisions To Planning, Operating, Controlling Systems To Management Systems Feedback
  • 29. Pillars of C-MIS 4-Cs 1. Computers 2. Content 3. Connectivity 4. Competencies
  • 30. Challenges of the MIS Development Process Quantity of information and its content - that is what the information describes, just one of the parameters used for identifying management information requirements. Other parameters include the following factors: •Nature of Analysis and Presentation: This determines the extent to which the information is easy or difficult to understand by the manager and •the time needed to spend in doing so (pre-defined versus as requested or required). •Time of availability: There are several dimensions to this parameter including frequency, recency, acquisition lead time, on-demand v/s routine, periodic versus occasional, repetitive versus one time. •Accuracy. •Reliability. •Security and Authentication.
  • 31. Any good MIS design and development process must address the following issues effectively – •Problems of effective communication between users and developers of MIS. MIS development calls for good understanding of management, industry, and IT, all of which are usually not available with either the MIS users or developers. •Problems in understanding and combining information needs of managers from different functions and levels in a common MIS. Considerations of economy, speed, and data integrity favours a unified MIS covering the whole organisation. However, because of complexity of designing and developing a truly unified MIS, it has remained an ideal rather than reality in practice.
  • 32. • Usually a management system, of which MIS is a sub-system, is a very complex system, comprising of a vast array of different types of subsystems, interacting with the environment which is even more complex. In a situation like this it is a laborious, costly and time consuming task to understand this management system and define its requirements. • Need for the organisation to keep pace with changes in environment, increasingly demanding customer and intensifying competition. • Using effectively the opportunities fast developing in IT capabilities. • Keeping in control the capital cost and time of installing advanced IT based systems. These can be substantial and have a tendency to escalate easily.
  • 33. • Eliminating the need for frequent and major modifications in the MIS. This is relative difficulty and costly for advanced IT based MIS. • Need to manage the human aspect of the MIS user, and other stakeholders such as employees, customers, suppliers, and other environmental agencies. • Managers need to decide on the types of information systems that should be installed in the organisation to support and facilitate their management duties and responsibilities. • Emergence of sophisticated IT including computers, telecommunication and automation has created new opportunities for the improvement of operational and managerial performance. To use these opportunities, managers and MIS developers need to adopt appropriate methods for designing, developing and implementing MIS.
  • 34. Information technology offers many opportunities for improving business performance through improving managerial effectiveness and business process transformation. The total MIS development project can be broadly divided in two major parts – • determining information needs for managers, and designing and •developing information systems that fulfill these requirements effectively and efficiently. We will first take up the issue of determining the management information needs, and then discuss the methodologies for designing and developing information systems.
  • 35. Determining Management Information Needs Three methodologies can be adopted to determine management information needs: • Business Systems Planning – To specify problems and decisions. Developed by IBM • Critical Success Factor (CSF) – Developed by John Rockart of MIT • End/Means (E/M) analysis – Developed by Wetherbe and Davis at the University of Minnesota Contd..
  • 36. Major activities involved in a BSP study are: • Top management making a commitment to the MIS development project. • Organise a BSP study team consisting of managers from different functional areas. • Hold a kick-off meeting of the BSP study team. • Identify major business processes in the organisation that are needed to manage the resources of the business. • Define data classes using different matrices to establish relationships among the organisation, its processes and data requirements. Contd..
  • 37. • The process/ organisation matrix relates the organisational process activities to people responsible for these activities. • Also the classes or types of data that are used for different processes are identified and charted on another matrix of data class versus processes showing indicating processes that use or create the data. • Determine executive perspective on how effectively the current MIS is supporting various business processes. • Identify business problems as perceived by managers, processes impacted, processes causing the problems, and the impact of the problem. Contd..
  • 38. • Identify systems development projects based on data classes and business processes, and based on this define an information architecture. • Determine priorities for the system development projects based on their benefit, impact, probabilities of success and demand based on value to users. • Review information system management capability to develop proposed integrated database to environment supporting multiple applications. • Develop recommendations and action plan to move towards the planned integrated database environment and develop required applications.
  • 39. Critical Success Factor (CSF) Method • CSF method identifies key business goals and strategies that must be addressed with business strategy. • An effective way of spotting business problems is to develop key indicators of the health of the business and to focus on significant deviations from planned performance. • In the first step in the CSF method, the manager identifies his or her goals. • In the next step he looks for the critical success factors underlying these goals – that “ what has to go right” to achieve a business goal Contd..
  • 40. • The critical success factors applicable to a company depend on the nature of the industry and the business strategy adopted by the company. • Information need of managers is derived from the critical success factors by finding ways of measuring how well these are being achieved. • Each of the measure of CSF effectiveness becomes an input for defining information system requirements. After compiling all the different information needs, decisions can be taken on the best ways of making these available to the managers. • The CSF method enables managers to identify their own information needs clearly and correctly. Contd..
  • 41. • The MIS can then be limited to only such information, eliminating all other reports, which are often created in traditional MIS more because of easy availability of input data rather than based on value of information contained. • The main limitation of the CSF method is that it focuses on information needs of individual managers, rather than the organisation as a whole.
  • 42. End/Means (E/M) Analysis Its purpose is to determine effectiveness criteria for outputs and efficiency criteria for the process generating the outputs. • The first part of the E/M analysis process, related to the “end” aspect, starts with identifying outputs or services provided by the business process, and moving on to clarifying what makes these outputs effective for the recipient or the user. • Finally information needed to evaluate the effectiveness of outputs is selected. Contd..
  • 43. The other part of E/M analysis, concerned with specifying efficiency criteria for the processes generating the outputs is based on answers to three questions: • What are the key means or processes used to generate or provide the outputs? • What constitutes efficiency in providing the outputs? • What information is needed to evaluate that efficiency? Contd..
  • 44. Systems Development Life Cycle (SDLC) Approach •One widely used system development methodology is “Systems Development Life Cycle (SDLC)” approach. •It is a structured technique for developing systems that cover procedures for controlling information system development projects. •It is a useful tool for producing reliable and maintainable systems. •In SDLC, each stage (subsystem) is defined in terms of activities, responsibilities, milestones and deliverables (the output from one subsystem to another subsystem). Contd..
  • 45. • The SDLC approach helps to control the large and • complex systems that consume large amounts of time and resources. SDLC may divide the total project from four to 12 phases. One phase is completed before beginning the next phase. This approach emphasizes documentation and checkpoints, and requires detailed planning and budgeting at each phase. SDLC has the following advantages and disadvantages: Advantages • Lends itself to good control • Phase deliverables well defined • Clear checkpoints makes reviews easy • Creates detailed documentation which is valuable for maintenance Contd..
  • 46. Disadvantages •Time and cost estimation is difficult •Can be very slow •Requires that requirements are defined abstractly, without interaction with the “system” •Overall ownership of the process is usually on “systems” people The key steps of systems development life cycle (SDLC) are listed below: • Problem Definition • Feasibility Study • Systems Analysis • Systems Design • Detailed Systems Design • Implementation • Maintenance
  • 47. Steps in MIS Planning & Design 1. Determination of Users’ needs 2. Identification of inputs and users interface 3. Determination of the Scope of the system 4. Budgets 5. Scheduling
  • 48. Phases of MIS Design & Development 1. Study and Analysis Phase 2. Design Phase 3. Implementation Phase
  • 49. Study and Analysis Phase 1. Study organizational goals and problems 2. Analyze available resources and opportunities 3. Analyze technological and human resources capabilities 4. Evaluate the MIS design project using cost benefit analysis
  • 50. Design Phase 1. Determine requirements of subsystems 2. Evaluate and define the proposed sub- systems 3. Determine the degree of computerization 4. Create database 5. Establish input and output forms 6. Feedback from all levels of users 7. Develop applications prototype 8. Document
  • 51. Implementation Phase • Organize computer infrastructure • Train users on basic operations • Develop applications • Train users on application modules • Feedback from all levels of users • Modify modules based on user feedback • Debug the test application modules Contd..
  • 52. • Test the complete system • Feedback on complete system • Debug the complete system • Evaluate the complete system • Document • Switch to new MIS system • Evaluate periodically • System maintenance • Establish plans for future MIS Contd..
  • 53. MIS Plan is linked to the Business Plan MIS goals and objectives •It is necessary to develop the goals and objectives for the MIS which will support the business goals. •The MIS goals and objectives will consider management philosophy, policy constraints, business risks, internal and external environment of the organization and the business. The typical statements of the goals are as under. • Provide online information on the stocks, markets and the accounts balances.  The query processing should not exceed more than three seconds.  The focus of the system will be on the end user computing and access facilities.  Information support will be the first in the strategic areas of management such as marketing or service or technology.
  • 54. Business plan MIS plan Business goals and objectives. Management information system, objectives, consistent to the business goals and objectives. Business plan and strategy. Information strategy for the business plan implementation playing a supportive role. Strategy planning and decisions. Architecture of the Management Information System to support decisions 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 Business Plan Versus MIS Plan
  • 55. Level of uncertainty Level of management Method Low (Near certainty) Operations management. Ask Questions such as, what do you need ? Precise probabilistic knowledge (A risk situation) Middle management Determine from the existing systems and methods of decision making and problem solving. Not able to determine in probabilistic terms precisely (Very risky) Middle and top management. Determine through the critical success factors, decision parameters and decision methodology. High (Total uncertainty) Top management. Determine through experimentation, modeling and sensitivity analysis. Methods of Handing Uncertainty
  • 56. DEVELOPMENT AND IMPLEMENTATION OF MIS * Prototype Approach * Life Cycle Approach When the system is complex, the development strategy is Prototyping of the system. Prototyping is a process of progressively ascertaining the information needs, developing methodology, trying it out on a smaller scale with respect to the data and the complexity, ensuring that it satisfies the needs of the users, and assess the problems of development and implementation.
  • 59. Prototyping approach Life cycle approach Open system with a high degree of uncertainty about the information needs. Closed systems with little or no uncertainty about the information needs. The system remains valid for a long time with no significant change. The design would remain stable. Necessary to try out the ideas, application and efficiency of the information as a decision support. No need to try out the application of the information as it is already proven. Necessary to control the cost of the design and development before the scope of the system and its application is fully determined. Experimentation is necessary. Scope of the design and the application is fully determined with clarity and experimentation is not necessary. Comparison of Approaches Contd….
  • 60. User of the system wants to tryout the system before he commits the specification and the information requirements. The user is confident and confirms the specifications and the information needs. The system and application is highly custom oriented. The system and application is universal and governed by the principles and practices. Contd….
  • 61. Implementation of MIS Implementation of the MIS in an organization is a process where organizational transformation takes place. This change can occur in a number of ways. The Lewin.s model suggests three steps in this process. The first step is unfreezing the organization to make the people more receptive and interested in the change. The second step is Choosing a course of action where the process begins and reaches the desired level, and the third step is Refreezing, where the change is consolidated and equilibrium is reinforced. Contd….
  • 62. Many a times, this process is implemented through an external change agent, such as a consultant, playing the role of a catalyst. The significant problem in this task is the resistance to change. The resistance can occur due to three reasons, viz., the factors internal to the user of information, the factors inherent in the design of the system and the factors arising out of the interaction between the system and its users. The problem of resistance can be handled through education, persuasion, and participation. This itself can be achieved by improving the human factors, and providing incentives to the users, and eliminating the organizational problems before implementing the system. Contd….
  • 63. MANAGEMENT OF QUALITY IN THE MIS The quality of the parameters is assured if following steps are taken. 1. All the input is processed and controlled. 2. All updating and corrections are completed before the data processing begins. 3. Inputs (transactions, documents, fields and records) are subjected to validity checks. 4. The access to the data files is protected and secured through an authorization scheme. 5. Intermediate processing checks are introduced to ensure that the complete data is processed right through, i.e., run to run controls. Contd….
  • 64. 6. Due attention is given to the proper file selection in terms of data, periods and so on. 7. Back-up of the data and files are taken to safeguard corruption or loss of data. 8. The system audit is conducted from time to time to ensure that the computer system specifications are not violated. 9. The system modifications are approved by following a set procedure which begins with authorization of a change to its implementation followed by an audit. 10. Systems are developed with a standard specification of design and development. 11. Computer system processing is controlled through programme control, process control and access control. Contd….
  • 65. MIS: THE FACTORS OF SUCCESS AND FAILURE If a MIS is to be a success then it should have all the features listed as follows.  The MIS is integrated into the managerial functions. It sets clear objectives to ensure that the MIS focuses on the major issues of the business. Also adequate development resources are provided and the human and organizational barriers to progress are removed.  An appropriate information processing technology required to meet the data processing and analysis needs of the users of the MIS is selected.  The MIS is oriented, defined and designed in terms of the users requirements and its operational viability is ensured. Contd….
  • 66.  The MIS is kept under continuous surveillance, so that its open system design is modified according to the changing information needs.  MIS focuses on the results and goals, and highlights the factors and reasons for non-achievement.  MIS is not allowed to end up into an information generation mill avoiding the noise in the information and the communication system.  The MIS recognizes that a manager is a human being and therefore, the systems must consider all the human behavioral factors in the process of the management. Contd….
  • 67.  The MIS recognizes that the different information needs for different objectives must be met with. The globalization of information in isolation from the different objectives leads to too much information and its non-use.  The MIS is easy to operate and, therefore, the design of the MIS has such features which make up a user-friendly design. Contd….
  • 68. Many a times MIS is a failure. The common factors which are responsible for this are listed as follows.  The MIS is conceived as a data processing and not as an information processing. The MIS does not provide that information which is needed by the managers but it tends to provide the information generally the function calls for. The MIS then becomes an impersonal system.  Underestimating the complexity in the business systems and not recognizing it in the MIS design leads to problems in the successful implementation. Adequate attention is not given to the quality control aspects of the inputs, the process and the outputs leading to insufficient checks and controls in the MIS. Factors Contributing to Failures
  • 69.  The MIS is developed without streamlining the transaction processing systems in the organization.  Lack of training and appreciation that the users of the information and the generators of the data are different, and they have to play an important responsible role in the MIS.  The MIS does not meet certain critical and key factors of its users such as a response to the query on the database, an inability to get the processing done in a particular manner, lack of user-friendly system and the dependence on the system personnel.  A belief that the computerized MIS can solve all the management problems of planning and control of the business. Contd….
  • 70.  Lack of administrative discipline in following the standardized systems and procedures, wrong codings and deviating from the system specifications result in incomplete and incorrect information.  The MIS does not give perfect information to all the users in the organization. Any attempt towards such a goal will be unsuccessful because every user has a human ingenuity, Bias and certain assumption not known to the designer. The MIS cannot up these by providing perfect information. Contd….
  • 71. Schematic Functional Aspects  MIS is an integrated collection of functional information systems, each supporting particular functional areas.
  • 72. An Organization’s MIS Financial MIS Marketing MIS Human Resources MIS Etc. Accounting MIS Drill down reports Exception reports Demand reports Key-indicator reports Scheduled reports Databases of external data Databases of valid transactions Transaction processing systems Business transactions Business transactions ExtranetExtranet InternetInternet Etc.
  • 73. Financial statements Uses and management of funds Financial statistics for control Operational databases Databases of valid transactions for each TPS Transaction processing systems Business transactions Business transactions Internet or Extranet Internet or Extranet Financial MIS Business transactions Databases of external data Databases of internal data Financial DSS Financial ES Financial applications databases Customers, Suppliers
  • 74. Financial MIS • Provides financial information to all financial managers within an organization. Schematic
  • 75. Inputs to the Financial Information System • Strategic plan or corporate policies – Contains major financial objectives and often projects financial needs. • Transaction processing system (TPS) – Important financial information collected from almost every TPS - payroll, inventory control, order processing, accounts payable, accounts receivable, general ledger. – External sources – Annual reports and financial statements of competitors and general news items.
  • 76. Financial MIS Subsystems and Outputs • Financial subsystems – Profit/loss and cost systems – Auditing – Internal auditing – External auditing – Uses and management of funds
  • 78. Quality control reports Process control reports JIT reports Operational databases Databases of valid transactions for each TPS Transaction processing systems Business transactions Business transactions Internet or Extranet Internet or Extranet Manufacturing MIS Business transactions Databases of external data Databases of internal data Manufacturing DSS Manufacturing ES Manufacturing applications databases Customers, Suppliers MRP reports Production schedule CAD output
  • 79. Inputs to the Manufacturing MIS • Strategic plan or corporate policies. • The TPS: – Order processing – Inventory data – Receiving and inspecting data – Personnel data – Production process • External sources
  • 80. Manufacturing MIS Subsystems and Outputs • Design and engineering • Master production scheduling • Inventory control • Manufacturing resource planning • Just-in-time inventory and manufacturing • Process control • Computer-integrated manufacturing (CIM) • Quality control and testing
  • 81. Marketing MISMarketing MIS • Supports managerial activities in product development, distribution, pricing decisions, and promotional effectiveness Schematic
  • 82. Sales by customer Sales by salesperson Sales by productOperational databases Databases of valid transactions for each TPS Transaction processing systems Business transactions Marketing MIS Databases of external data Databases of internal data Manufacturing DSS Manufacturing ES Marketing applications databases Pricing report Total service calls Customer satisfaction
  • 83. Inputs to Marketing MIS • Strategic plan and corporate policies • The TPS • External sources: – The competition – The market
  • 84. Marketing MIS Subsystems and Outputs • Marketing research • Product development • Promotion and advertising • Product pricing
  • 85. Human Resource MIS • Concerned with all of the activities related to employees and potential employees of the organization
  • 86. Benefit reports Salary surveys Scheduling reportsOperational databases Databases of valid transactions for each TPS Transaction processing systems Business transactions Human Resource MIS Databases of external data Databases of internal data Manufacturing DSS Manufacturing ES Human resource applications databases Training test scores Job applicant profiles Needs and planning reports
  • 87. Inputs to the Human Resource MIS • Strategic plan or corporate policies • The TPS: – Payroll data – Order processing data – Personnel data • External sources
  • 88. Human Resource MIS Subsystems and Outputs • Human resource planning • Personnel selection and recruiting • Training and skills inventory • Scheduling and job placement • Wage and salary administration
  • 89. Other MISsOther MISs • Accounting MISs – Provides aggregated information on accounts payable, accounts receivable, payroll, and other applications. • Geographic information systems (GISs) – Enables managers to pair pre-drawn maps or map outlines with tabular data to describe aspects of a particular geographic region.
  • 90. MGNREGA MIS – A Over View Input Processor Output • Admin Unit • Receipt of Funds • Application for JC/Work • Opening of Projects • Allocation of Employment • Social Audit Notice • Complaint Receipt Application processing, Family Registration, Measurement, MR, Payment, Accounting Recorded Stored Retrieved Processed Summarized Classified Variance Reports on •Employment provided •Wages paid •Expenditure •Works completed •Complaints disposed •Social audit completed To Planning, Operating, Controlling Systems To Management Systems Feedback
  • 91. Labour Budget Planning by DPCs and its submission in District Panchayats (Monthly forecast areawise of expected employment demand for the coming year) I.E.C. Campaign Administrative & Technical Strengthening Information,EducationandCommunication(IEC),RegistrationandDisposalofComplaintsa Information(ReportingandDisclosure),Monitoring,EvaluationandReview Office Development and Management (Creation of office space, Procurement of goods and services, ICT functionality ) Issue of Work Allocation Letters to individual applicants for work Matching of Work Demand & Provision NATIONAL RURAL EMPLOYMENT GUARANTEE ACT, 2005: BOX DIAGRAM Procurement of materials at approved rates from approved suppliers Reporting to worksite by Applicants Project Planning by DPCs, POs, GPs (Seasonwise and Areawise Selection of Sites and Works, Cost Estimation, Technical Sanction and Administrative Approval of Projects, Approval by Gram Sabha, GPs, Intermediate and District Panchayats, Materials Planning, Empanelment of Mates or Work Supervisors, etc.) Social Audit by Gram Sabha : Production of records and registers by GP in Gram Sabha on completion of work, objections & their settlement Formulation of Schemes by States and of Rules by Central and State Governments under NREG Act and Establishment of Central and State Employment Guarantee Funds Flow of funds from Center and States to DPCs, from DPCs to POs and from POs to Gram Panchayats No Matching of Work Demand & Provision Staffing (Assessment of staff requirement, Engagement, Training, Deployment, Appraisal and Remuneration of internal or external personnel including outsourcing of services) Payment of Unemployment Allowance to work applicants who are not provided work within 15 days as per the Act Expenditure Budget (Capital Budget, Revenue Budget) and Scheduling by Govts, DPCs, POs, GPs Organization of Vigilance and Monitoring Committees Demand for Job Cards by Rural Households Issue of Job Cards to Rural Households by GPs / POs Employment Demand by Individuals and Groups Issue of Dated Acknowledgement receipt by GPs / POs to Applicants Opening of Works, Assets-LIvelihood Creation (Orientation of workers, model pit construction, creche, shade, drinking water, and signboard with NREGA Logo; performance and measurement of work, payment to workers and suppliers, integration with banks and post offices, entry in measurement book, muster roll, job cards, employment register, asset register, works register, cash book, entry in MIS, inspections and quality control, UCs, work closure) Accounting; CAG Audit; Audit by Chartered Accountants and submission of Audit Report to Central Government by DPCs for release of funds
  • 92. NREGS Critical Activities PLANNING LABOUR BUDGET EXPENDITURE BUDGET LABOUR MANAGEMENT REGISTRATION WORK APPS WORK ACKN WORK ALLOCATION WORK PERFORMANCE WAGES PAYMENT SOCIAL AUDIT NOTICE PARTICIPATION DOCUMENTS SCRUTINY OBJECTIONS SETTLEMENT REPORT FINANCIAL MANAGEMENT DEMAND FOR FUNDS ALLOCATION OF FUNDS EXPENDITURE TRACKING ACCOUNTING AUDIT COMPLAINTS DATE COMPLAINANT ACTION TAKEN PROJECT MANAGEMENT SHELF OF PROJECTS ESTIMATION PROCUREMENT EXECUTION CLOSURE MAINTENANCE
  • 93. Planning •Labour Budget •Areawise •Monthwise •Forecast of labour demand •Forecast of wages payable •Forecast of mandays to be provided •Expenditure Budget •Wages •Materials •Salary •Travel •Stationary •Training •Other office expenses
  • 94. Financial Management 1. Demand for funds 2. Allocation of funds 3. Expenditure tracking 4. Collection of UCs 1. Accounting 2. Audit 3. Compliance to Audit 4. Proposal for release of funds
  • 95. Accounting • Receipts – Opening Balance – Amount received during the year • Payments – Unskilled Wages – Semi-skilled and skilled wages – Materials – Administrative Expenses (forms, stationery, travel, electricity, telephones, salary, AMC, etc)
  • 96. Labour Management 1. Application for Registration 2. Issue of Job Cards 3. Application for works 4. Issue of Dated Acknowledgment Receipt 5. Issue of work allocation letter 6. Joining of workers on project site and their orientation, group formation, etc. 7. Selection of Mates and Supervisors 8. Entry of work done in Muster rolls 9. Payment of wages
  • 97. Project Management 1. Shelf of projects – Estimation, TS and AA 2. Selection of Mates and Supervisors 3. Materials Procurement and Payment 4. Preparation of work calendar for projects 5. Workers motivation 6. Work performance and measurement 7. Billing and Muster Roll preparation 8. Payment of wages 9. Inspection of projects 10. Maintenance of project and asset register 11. Submission of UC and work closure 12. Maintenance of Project
  • 98. Job Card Holder - Job Applicant Project Muster Roll (Bill) Preparation Measurement in M.B. Attendance on MR Receipt of Funds and Payment of Wages, Cost of Materials, Administrative Overheads (Cash Book) Processes for Project Management
  • 99. Job Card Register • Job Card code (State/District/Block/GP/Village) • Caste Category – SC, ST, OBC, Others, Minority • Household Members’ Details – name, age, sex, relation with the head of household. • Details of Payment – Name of member, member code, days worked, dates (From and To), Amount paid, MR Code, Project Code, Mode of payment (bank, PO, cash)
  • 100. Employment Register • Date of application • Applicant’s name • Job Card No • Work Demand Dates (From & To) • Work Allocation Details – Letter No, Date. • Project Code (in which work allocated) • No of Days worked • Amount Paid • Unemployment Allowance Paid.
  • 101. Project Ledger • Project code • Project name • Project Type • Project Description • Sanction Order No. and Date • Location • Estimate • Expenditure • Material • Labour • Supervisory Officers Details • Measurement Details • Muster Roll Details • Payment Details
  • 102. Asset Register 1. Asset Code 2. Name 3. Description 4. Type 5. Location 6. Date of creation 7. Historical Cost (Rs lakhs) 8. Project Code 9. Useful Life (End Date) 10.Benefits
  • 103. Measurement Book • M.B. No. • Project Code • Muster Roll Code • Dates • Measurement • Check Measurement • Quantity of work • Measurement • Check Measurement • Name of engineers • Measured by • Check measured by
  • 104. Muster Roll 1. Muster Roll Code 2. Project Code 3. Job Card Holders’ code 4. Distance within 5 Km – (Y/N) 5. Days worked 6. Standard Output 7. Actual Output 8. Rate – amount per unit of output 9. Amount – individual and total 10.Acknowledgement 11.Certification by Sarpanch, Engineers, VMC members, etc. 12.Date of Verification by Social Audit
  • 105. Complaints and Grievances 1. Details of Complainant Name, address, whether worker, IA, citizen, VIP 1. Date of complaint 2. Brief Particulars 3. Action Taken Details, Date 1. Status – Pending, Disposed 2. Remarks
  • 106. Social Audit 1. Issue of public notice for Gram Sabha 2. Participation by workers, officials, members, etc. 3. Records production by GPs 4. Scrutiny and objections by GS 5. Settlement of Objections 6. Report
  • 107. thank you For more information, please contact K.Rajeshwar 99481 94093 rajeshwar@nird.gov.in rajeshk.kadari@gmail.com