Lecture 1

Introduction to Management
Information system and Levels of
Management
 MANAGEMENT
INFORMATION SYSTEM
Data Process

Information - Product of analysis of Data

Evolution of
Information - Should help
Concept Decision making & action taking

Information -
Need based

Information -
Need based exception reporting

Prof. Vijaya Desai

Activity Data: activities, duration, schedule, resources, cost, Progress: actual
start/finish, cost, resources etc. Labors, equipments, type, rate, days worked etc.
Raw Data

Material stock to date, Daily Progress report, Daily labor / equipment work
Data Processing
summary, Delay report, reasons for delays, Profit/loss for a project

Variances: SV, CV, Implications: Projected values – project cost, Data Analysis for
time; Increased or decreased business/profit/demand in business Information

Select the best alternative – strategic business

support for decision making
(Use of Scientific tools - Information)
70 % of customers prefer 2BHK
30 % prefer 3BHK Information – Need based

Selecting the right alternative for making Information –

decision of launching a project
Need based exception reporting

Database Management Information System

Prof. Vijaya Desai
 MIS Definition
• System that provides information support for
decision making
• Integrated system of man and machine that
provides support for operations, management
and decision making
• System based on database of the organisation
evolved for the purpose of providing information
to people
• Computer based information system

Prof. Vijaya Desai

 Today’s MIS Concept
• End user using multiple data: Store person must know
activity schedule for procuring material, planning person
must know the availability of stock/labor to schedule
them on activities, Finance person must know the
expenses cash flow in a project to organize the funds.
• Today’s Concept is system which handles the databases
for end user and provide the end user information
required for decision making
• MIS depend on users ability to analyse data and use
information: Project Manager must analyse the project
performance at every stage of progress and take correct
decisions to avoid further losses/delays.

Prof. Vijaya Desai

 Today’s MIS Concept
• Foundation of MIS is principle of Management and its
practices: Information used by different levels of
management for different proposes. Top level management
uses information for making strategic business plans (A real
estate deciding to expand business in infrastructure); Middle
level management use information to analyses the data for
giving different alternative, for analyzing the business
performance of past project, profit earned etc.; Lower level
Management may use data for transaction processes like,
total sale, payments, receipts, salary payment etc.
• MIS can lead to achieving an objective with proper planning
of MIS; Objective is to enter into new business area.
• MIS is a product of multi-disciplinary approach to the
business management: use of scientific tools, use of
technology etc.
Prof. Vijaya Desai
 Application of MIS Definition
Information support Integrated system of
for decision making man and machine

Software Application for

Construction Business
MSP, P6, ERP(SAP, MSDYAX), BIM, CANDY

Computer based
System based
information system
on database
Prof. Vijaya Desai
 Role of Management Information System
• To ensure that an appropriate data is collected from the various
sources, processed, and sent further to all needy destination or
persons
• To satisfy diverse needs through a variety of systems such as
– Query systems: Project Manager asking for a specific schedule
for a Item instead of for the entire project; Quality person would
like to know the delivery schedule of materials so as to plan his
quality schedule.
– Analysis Systems: Analysis of current project progress to project
the likely finish and cost of project.
– Modeling systems: Developing the model by analyzing past
performance data – researching a association that local labors
are more cost effective in Bihar that in Karnataka – Using this
model the labor estimation may be prepared.
– Decision support systems: Selection of a best bid, Deciding to
use local or outsource the manpower requirement. Etc.

Prof. Vijaya Desai

 Role of Management Information System
• It helps in,
– Strategic planning: Planning for future ventures in
new business area
– Management Control: Integration of all the
participants, persons, departments, and functions,
which brings in a uniform control
– Operational Control: Standardizes the operational
activities with the implementation of methods and
tools
– Transaction Processing: Data is processed,
validated, updated on time, further delays avoided
due to non-availability of information.
Prof. Vijaya Desai
 Classification of Information
• Action versus no-action information:
information which includes action is called
action information
Example: ‘No stock’ report calls for a purchase
action. Stock ledger only shows the balance
stock in store
• Recurring versus non-recurring information:
information generated at regular intervals.
Example: Daily progress report, stock statement
etc. are recurring information. Demand analysis
for real state is non-recurring information
Prof. Vijaya Desai
 Classification of Information
• Internal versus external information: information generated
through internal sources of the organization is internal information
and information generated through the industry surveys, market
surveys, government reports is external information

Summary of
Eternal Business performance
Low
Top
Mgmt.
Structured Structured
Sources of
Information reports
Information
Middle
Mgmt.
Internal Operational Mgmt. High Processed data,
transaction
Organization and information
Prof. Vijaya Desai
 Classification of Information
• Planning information: Standards, norms, and specifications
used in the planning of activity.
Example: design standards, material specifications
mentioned in contracts, norms used to estimate
manpower/equipment requirement for a project, vendor
details, material rate and discount details etc.
• Control information: reporting the status of an activity
through a feedback mechanism
Example: Daily progress report showing status of activity
progress on a status date, behind schedule or ahead
schedule, over budget etc. leading to a decision or an action
to control.

Prof. Vijaya Desai

 Classification of Information
• Knowledge information: collection of
information through the library reports and the
research studies to build up knowledge base as
information source for decision making
Example: knowledge of various construction
technology and methods, latest equipment
available, ISO standards etc.

Prof. Vijaya Desai

 Organization Pyramid & Information Concept
Use of MIS Value of information

Goals setting, Policy Very high,

making, Strategic Meeting high risk Unst
Top Planning
CEO & & uncertainty ructu
Board Futuristic red
Decision making, Precise, High Unformatted,
Middle problem solving, analytical,
Meeting risky bur regular,
Mgmt.-PM, monitoring, planning, decision modified
Dept head scheduling oriented, past situation prints
and current
Supervisory problem Low
Processed, Fixed
level Mgmt solving, Meeting
Summarized near interval
- Supervisors, meeting
targets Current certainty reports
Jr. managers
Status, lowes Large
Operational facts Detailed relating to
level Mgmt. current period t volume
- assistants, Clerks print

Level of Mgmt. Nature of Reporting media & structure

informatio
 Case study
MIS Implementation at Construction
Project