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Functional Management Information System (MIS)

• By Ashwin Dedhia

Management information systems provide decision-makers


information and feedback on daily operations. Additionally,
management information systems can be used strategically,
often incorporating Web technology.

Marketing MIS: Marketing Management Information System


(MIS) supports managerial activities in product development,
distribution, pricing decisions, promotional effectiveness and
sales forecasting.

Overview of Marketing Management Information System


(MIS)

Inputs to Marketing MIS

• Strategic plan and corporate policies


• The TPS
• External sources:
o The competition
o The market

Marketing MIS Subsystems and Outputs

• Marketing research
o Web based market research
• Product development
• Promotion and advertising
• Product pricing

Human Resources MIS: Human Resource Management


Information System (MIS) is concerned with all of the
activities related to employees and potential employees of
the organization.

Overview of Human Resource MIS

Inputs to the Human Resource MIS

• Strategic plan or corporate policies


• The TPS:
o Payroll data
o Order processing data
o 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 MISs

• Accounting MISs
o Provides aggregated information on accounts
payable, accounts receivable, payroll, and other
applications.
• Geographic information systems (GISs)
o Enables managers to pair pre-drawn maps or map
outlines with tabular data to describe aspects of a
particular geographic region

Manufacturing Management Information System (MIS)

• By Ashwin Dedhia

Inventory control programs are one component of a


manufacturing MIS that relies on the production schedule.
Inventory control programs can forecast future production,
automatically reorder items when a certain threshold is met,
determine manufacturing costs, and develop resource
requirements plans from the production schedule.

Manufacturing Requirements Planning (MRP) programs help


coordinate thousands of inventory items when demand for
one item depends on demand for another. MRP systems
determine when finished products are needed, then work
backward to determine deadlines and resources needed to
complete the final product on schedule.

When high inventory levels are kept, a company’s money is


tied up in unused inventory. This means higher costs for the
company. A Just-in-time (JIT) inventory approach ensures
inventory and materials are delivered only when they are
needed. This maintains inventories at their lowest possible
level, but insures materials are on-hand in time for
production. Although JIT is beneficial, it also makes a
business vulnerable to supply chain disruptions – whether
internal or external. For example, if a machine breaks down
that makes a component another unit needs to assemble the
product, assembly may need to stop due to lack on
components.

Technologies have been developed to control and


streamline the manufacturing process. Computers can
directly control manufacturing equipment using computer-
assisted manufacturing software. Computer-integrated
manufacturing software connects all aspects of production
together, including order processing, product design,
manufacturing, quality control, and shipping. For example,
after an engineer designs a product using CAD software,
MRP systems can use information from the design as input
to plan and order materials. Production scheduling systems
can use the design specifications as an input into the
scheduling process. And computer-aided manufacturing
systems can use the design specifications as input for setup.
This greatly improves manufacturing efficiency.

A flexible manufacturing system allows a facility to quickly


and efficiently change from making one product to making
another, often using robotics and other automation.
Generally the changeover is computer-controlled.

Finally, quality control has become paramount for


manufacturing firms. Control charts or sample testing is used
to monitor product quality.

The manufacturing MIS subsystems and outputs monitor


and control the flow of materials, products, and services
through the organization.

Inputs to the Manufacturing MIS

• Strategic plan or corporate policies.


• The TPS:
o Order processing
o Inventory data
o Receiving and inspecting data
o Personnel data
o 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-assisted manufacturing (CAM)
• Computer-integrated manufacturing (CIM)
• Flexible manufacturing system
• Quality control and testing

Manufacturing MIS

• Material requirements planning (MRP)


o Determine when finished products are needed
o Determine deadlines accordingly
• Manufacturing resource planning (MRPII)
o Network scheduling
o Improve customer service and productivity
• Just in time (JIT) inventory system
o Inventory and materials delivered right before
usage

Financial Management Information System (MIS)


• By Ashwin Dedhia

Financial MIS Provides financial information to all financial managers within an


organization. It integrates financial & operational information from multiple sources.
Financial MIS eases analysis by providing fast financial data. It enables financial analysis
from different aspects; time, product, customer. With Financial MIS, one can analyze
historical and current data. Also one can monitor use of funds. Few examples or functions
of Financial MIS are Costing, P&L reporting, Auditing, Funds management, etc.
Overview of a Financial MIS

Inputs to the Financial Information System

• Strategic plan or corporate policies


o Contains major financial objectives and often projects financial needs.
• Transaction processing system (TPS)
o Important financial information collected from almost every TPS - payroll,
inventory control, order processing, accounts payable, accounts
receivable, general ledger.
o External sources
o Annual reports and financial statements of competitors and general news
items.

Financial MIS Subsystems and Outputs

• Financial subsystems
o Profit/loss and cost systems
o Auditing
o Internal auditing
o External auditing
o Uses and management of funds

Types of Systems

Management information systems can be used as a support to managers to provide a


competitive advantage. The system must support the goals of the organization. Most
organizations are structured along functional lines, and the typical systems are identified
as follows:

Accounting management information systems: All accounting reports are shared by all
levels of accounting managers.

Financial management information systems: The financial management information


system provides financial information to all financial managers within an organization
including the chief financial officer. The chief financial officer analyzes historical and
current financial activity, projects future financial needs, and monitors and controls the
use of funds over time using the information developed by the MIS department.

Manufacturing management information systems: More than any functional area,


operations have been impacted by great advances in technology. As a result,
manufacturing operations have changed. For instance, inventories are provided just in
time so that great amounts of money are not spent for warehousing huge inventories. In
some instances, raw materials are even processed on railroad cars waiting to be sent
directly to the factory. Thus there is no need for warehousing.

Marketing management information systems: A marketing management information


system supports managerial activity in the area of product development, distribution,
pricing decisions, promotional effectiveness, and sales forecasting. More than any other
functional area, marketing systems rely on external sources of data. These sources
include competition and customers, for example.

Human resources management information systems: Human resources management


information systems are concerned with activities related to workers, managers, and other
individuals employed by the organization. Because the personnel function relates to all
other areas in business, the human resources management information system plays a
valuable role in ensuring organizational success. Activities performed by the human
resources management information systems include, work-force analysis and planning,
hiring, training, and job assignments.

The above are examples of the major management information systems. There may be
other management information systems if the company is identified by different
functional areas.

Bibliography