Page 2 Applications of management functions of the industry Model of information processing system Integration of manufacturing applications LEARNING OBJECTIVES Page 3 Introduction Mis model of application in manufacturing sector is devided into number of different processes which are as under given - OLTP - RDBMS - DATABASE - INPUT - PROCESS - OUTPUT - UPDATION Page 4 Model of Information Processing System
OLTP RDBMS DATABASE APPLICATION DEVELOPMENT SYSTEM ACCOUNTING QUERY ANALYSIS CONTROL PRINT PROCESS SCREEN STATUTORY COMPLIANCE KNOWLEDGE UPDATE OPERATION UPDATE DECISION ANALYSIS ACTION UPDATE Page 5 Model of Information Processing System The online transaction processing system helps to process input into database The system designer develops an application with the objective of accounting, transaction based results and providing the reports on the same. The second objective is to provide query system for assessment of the status of record, result or document. Threw analysis and control application development and maintained process take place. After this input process next is report generation and screen display have been done. At last the updating process take place. Page 6 Different management effected on mis There are various kinds of management and its application which are as given beloved. - Personal management - Financial management - Production management - Raw material management - Marketing management - Corporate overview.
Page 7 Personal management
Pm functions has the primary objectives is providing suitable manpower in number with certain ability, skills and knowledge as organizations demands from time to time. Main goal is increase in manpower productivity by resorting following techniques. 1) HR development threw training and upgrade skills 2) Motivation threw leadership and job enrichment 3) Promotion and rewards threw performance appraisal 4) Grievance handling 5) Structuring the organization
Page 8 Personal management Input transaction documents - Personnel application form - Appointment letter - Attendance and leave record - Biodata,self and family - Production/productivity data on jobs - Wage/salary agreements - Record of complaints, accidents etc - Industry data - Records of sources of manpower Page 9 Personal management Applications: Accounting - Attendance - Manpower - Leave - Salary/wages - Loans and deductions - Accidents - Production data - Skills - Bio data - Family data
Page 10 Personal management Query: - Who is who? - Strength of section,department,division - Number of persons with a particular skills - Attendance, leave record of employees - Salary/wages of employees - Designation and number of personnel detail in organizations - Personnel records of employees Analysis: - Analysis of attendance by a class of employees - Leave analysis by a group of employees - Trend in leave record - Analysis of attendance - Analysis of salary - Analysis of overtime -
Page 11 Personal management Control: - Probable absence versus workload - Projection of personnel cost against manpower increase - Assessment of accident records - Personnel cost versus industry cost - Projection of manpower needs and evolving recruitment and training programmers. Page 12 Personal management Reports: Statutory reports: - Attendance records - Strength of employees by category-permrent,trainee and apprentices - PF,Ledgers and returns - IT form Information updates: - Daily attendence reports - Employee strenth - Joining and transfer of employees - Personnel cost of department,job,product. - Periodic statement Page 13 Personal management Operation update: - Daily attendance report - Overtime versus work completed - Projected absenteeism and distribution of workload - Cost of personnel by work completed Decision analysis: - Analysis of attendance for season, festival and by skills. - Overtime analysis by department, employees and jobs - Analysis of accidents and deciding on safety measures and training - Cost analysis by personnel versus jobs vs skills and planning for new recruitment Page 14 Personal management Action reports: - Recruitment and additional manpower or subcontracting of jobs - Acceptance of orders on the basis of workload. - Reduction, transfer of employees - Preparations of training and development programmers with specific needs * Most of this reports is useful with top level management Page 15 Financial management Main objective is fulfill financial needs of business from time to time by providing working capital and organization to achieve goal. Other objectives are help organizations with audited financial reports time to time. Financial management uses variety of tools and techniques which are as under: - Break even analysis - Cost analysis - Cash flow projections - Ratio analysis - Roi analysis - Management accounting - Expense analysis, Auditing and control Page 16 Financial management Input transaction documents: - payments: to suppliers,authorities,employees,shareholders,financial institutions etc - Receipts : from customers,authorities,employees,financial institutions and others. - Data from stock exchange of the share prices,consolideted financial results of the other companies etc.
Page 18 Financial management Query : - The query is processed for the following with respective codes as keys: - Main account - Subsidiary account - Locations(factory,branch etc) - Documents Decision analysis: - Cash flow analysis - Source and users funds - Debtors analysis - Creditors analysis - Budgeted analysis - Ratio analysis - Cost analysis Page 19 Financial management Controls: - Account receivable, outstanding beyond acceptance norms - Advances to creditors - Valuation of non moving inventories - Analysis of nonmoving accounts and legal actions - Cost overruns beyond norms and action on alternatives - Performance analysis Reports: Statutory compliance: - Tax returns - Registers - Declarations of creations results to the financial institutions - Declarations of financial results - Declarations of annual results
Page 20 Financial management Information updates: - Monthly trial balance, balance sheet and profit and loss account - Stock valuation - Account receivable - Account payable - Expanses - Cash positions - Sales, purchase of assets by certain classifications - Overall business achievements Operations updates: - Statutory returns and reports - Tax details - Reports on finished goods, dispatches and invoicing - Reports on materials receipts and paynments
Page 21 Financial management Decision analysis: - Break even analysis - Roi for choice of investment - Trend analysis - Cash flow analysis - Analysis current, fixed and nonmoving assets Action update: - Overdue receivables - Non supply of goods and services but advance paid - Payments to creditors, where penalties are involved - Poor usage of fixed assets and disposals Page 22 Production Management Main objective is to provide manufacturing services to the organizations The other functions like planning,control,industial engineering,maintaince and quality control. The organizations of the production management is differ from type of production The functions goals of the production management are fuller utilization of the manufacturing,capicity etc. Input transaction documents. - Production program - Production schedule - Process planning sheet - Job cart - Job status advice - Quality assurance rating form - Finished goods advice - Material requirement
Page 23 Production Management Applications Accounting - Quantity of production with respect to a time period - Material requirement - Rejection quantity - Breakdown incidence - Labor detail - Machine and facility utilization - Labor hours Query: - Status of job - Production program and job schedules - Status or availability of material - Standard information on machines - Standard on skills
Page 24 Production Management Decision analysis: - Make or buy - make or subcontract - Use of alternate material - Rescheduling and loading of jobs - Planning and scheduling of jobs - Selection of production facilities control: The exceptions which need to highlighted are: - Hold up a key jobs beyond certain limits - Utilization of key facilities - Standards - Backlog of large number of order and failure to meet promised delivery date.
Page 25 Production Management Statutory compliance - PM should be significant towards legal documents which are related with other managements - The production hours, general workloads are effected as statutory side in pm,. Information update: - Follow standard - Information should kept up to date - Data of job hours, production hours etc. Operation updates: - The reports highlighted planned verses actual - Job hours, job schedule etc Page 26 Production Management The decision analysis - Focuses on specific functions which is helpful in decision making - Focused on information,knoledge and bi - Analysis take place with help[ of DSS Action update: - These reports provide information update on the post implementation scenario of decisions - Measurement of decisions count in this report - Help to decision maker with providing a proper infrastructure which is helpful in future,
Page 27 Raw Material Management(RMM) The objective of RMM is to provide material for production,maintainance and services at economical prices, in an appropriate quantity and quality with extra inventory. Mainly focused on cost of material Deals with supplies of goods Managerial task focused on cost of production, the price with the quantity, performance of production department etc. It is controlled by corporate management and regular checking ,audit take place to ensure the procurement of material is done at an economic price.
Page 28 Raw Material Management(RMM) Input transaction documents: - Purchase requisition - Purchase order - Receipt of goods - Return of goods to supplier - Issue for production - Return from production - Certification of bill for payment Application: - Forecasting and planning - Purchase ordering - Goods receipt - Inspection - Issuing the material - Bill passing and control Page 29 Raw Material Management(RMM) Accounting: - Purchase quantity - Issue quantity - Stocks - Goods returns - Rejections - Performance - Value of purchase Query: - Query is centre around price,supplier,stock and pending aspects of purchase, returns and payments - Query may be on item purchased, purchased price, supplier and other purchase related detail.
Page 30 Raw Material Management(RMM) Decision analysis: - Decision is based on cost, material quality and quantity of raw material - The first major decision is related with price of an item - A DSS is major aspects which proves as helpful to decision maker to take decisions - Material management performs supporting role to production management in decision analysis. Control : - Performance is evaluated with 4 accounts viz,capital blocksed in inventory, number of stock outs affecting production activity, reliability of suppliers, cost and purchase. - Periodic evaluation required with stocks,rawmaretials etc. - The evaluation of non moving and non selling inventory is necessary while control process take place in raw material management.
Page 31 Raw Material Management(RMM) Reports and Displays: Statutory Compliance: - Stock ledger - Value stock statement - Octroi register - Excise duty returns and registers - Custom bonds register - Returns on tax
Page 32 Raw Material Management(RMM) Information Update: - There are various information which required regular updating in register which are: - Price and trend - Information about material - New supplies and sources of supplies - Tax duties - Value of inventory - Value of non moving inventory - Material information for future usage Page 33 Raw Material Management(RMM) Operations update: - Daily goods received register - Statements of stocks - Reports on purchase - Statements of supplies - Statements of payments - Statements of supplies received and rejected Decision analysis: - Stock outs - Cost of purchase and overview - Value of inventory and analysis - Reliability of suppliers - Vendor performance - Material performance
Page 34 Raw Material Management(RMM) Action Update:
Action update take place on decision wise that whether a decision is implemented or not. Review of action take place and impact can be measures Actions is related with vendors,purchase,quality measurement etc. Page 35 Marketing Management It is deal with satisfying the consumer Scope is identify need of consumer,envolving product concept, designing the product The activities involves are market research, consumer surveys,advertising,sales,promotions,campaign,stocking of products, developing ,etc Control take place at sales department wise It is directly interacted with sales management.
Page 36 Marketing Management Input transaction documents: - customer order - Order acceptance - Delivery note - invoice note, credit note, debit note Applications: There are several highly process oriented accounting applications of marketing management. The main accounting activity is sales everything is focused on sales The other accounting activities are as given Page 37 Marketing Management Accounting: - Product sale - Product family - Sales value - Sales tax - Dealer - Distributor - Customer - Excise duty - Inventory - Area - Market segments - Returns - Receivables
Page 38 Marketing Management Query - The queries in the MM are on customer,product,price,stock,sales. - It mainly focused on orders, transaction process after order has been received - It has also on assessment of sales performance and comparison with various competitors also. Decision analysis: - Decision is focusing on prices,orders,discounts,commisions,deciding sales terms etc - The complexity comes in price decisions - Dss is helpful to MM to decide a perfect decision on critical issues on MM - There are various application developed to support MM to take right decisions
Page 39 Marketing Management Control: - Control is focused on business goals - Control comes with comparisons of sales vs budget, marketing cost vs budget cost, product sale vs target fixed - Control applies on distributor,dealer,branch and marketing persons, planned sales, competitors review etc. - The control applications designed with focusing on decision and action of MM.
Page 41 Marketing Management Operation update: - Order book - Dispatch reports - Inventory - Invoice - Customer complaints - Complaints disposed Action update: - Sales vs. budget - Expenses vs. sales - Sales growth vs. sales objectives - Stock vs. budget growth - Complaint vs. number of complaint solved Page 42 Corporate overview It is combination of all management The top management is informed by each manager threw reports and performance evaluation take place according to this reports The reports contains note, inner-office memos etc documents The basic communication is necessary between various department before submitting report to top management Periodic evolution is necessary The main example of corporate overview according to management wise is like this
Page 43 Corporate overview Marketing Production Finance Expenses Orders Planned productions Current assets Revenue expenses Sales Actual production Current liabilities Capital expenditure Cost of goods sold Cost of production Current ratio Payment to employees Finished goods inventory Raw material inventory Account receivable to turn over Marketing expense Receivables Payables Inventory turnover Other expenses Page 44 Corporate overview: Business System Integration
MM PM FM Production MGMT RMM Business Accounting MGMT Accounting planning Business accounting