Chapter 9

Management Information Systems

Management Information Systems (MIS)

Management information system (MIS)
An MIS provides managers with information and support for

effective decision making, and provides feedback on daily operations 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

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Information and Organizations

Sources of Management Information

Schematic
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Employees Corporate databases of internal data Databases of external data Corporate intranet Decision support systems Executive support systems

Business transactions

Transaction processing systems

Databases of valid transactions

Management information systems

Application databases

Drill-down reports Exception reports Demand reports

Expert systems

Operational databases

Key-indicator reports

Input and error list

Scheduled reports

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Information and Organizations

Outputs of a Management Information System

Scheduled reports
Produced periodically, or on a schedule (daily, weekly,

monthly)

Key-indicator report
Summarizes the previous days critical activities Typically available at the beginning of each day

Demand report
Gives certain information at a managers request

Exception report
Automatically produced when a situation is unusual or

requires management action

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Scheduled Report Example

Daily Sales Detail Report Prepared: 08/10/xx Order # P12453 P12453 P12453 P12455 P12456 Customer ID C89321 C89321 C03214 C52313 C34123 Sales Rep ID CAR CAR GWA SAK JMW Ship Date 08/12/96 08/12/96 08/13/96 08/12/96 08J/13/96

Quantity
144 288 12 24 144

Item #
P1234 P3214 P4902 P4012 P3214

Amount
$3,214 $5,660 $1,224 $2,448 $720

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Key Indicator Report Example

Daily Sales Key Indicator Report This Month Total Orders Month to Date Forecasted Sales for the Month $1,808 $2,406 Last Month $1,694 $2,224 Last Year $1,014 $2,608

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Demand Report Example

Daily Sales by Sales Rep Summary Report Prepared: 08/10/xx Sales Rep ID Amount

CAR
GWA SAK JWN

$42,345
$38,950 $22,100 $12,350

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Exception Report Example

Daily Sales Exception Report ORDERS OVER $10,000 Prepared: 08/10/xx Order # P12453 P12453 P12453 Customer ID C89321 C89321 C03214 Sales Rep ID CAR CAR GWA Ship Date 08/12/96 08/12/96 08/13/96

Quantity
144 288 12

Item #
P1234 P3214 P4902

Amount
$13,214 $15,660 $11,224

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Outputs of a Management Information System

Earnings by Quarter (Millions) Actual Forecast $11.8 $10.7 $14.5 $13.3 Variance 6.8% 0.9% -1.4% -3.0%

Drill Down Reports Provide detailed data about a situation.

2ND Qtr 1999 1st Qtr 1999 4th Qtr 1998 3rd Qtr 1998

$12.6 $10.8 $14.3 $12.8

Etc. See Figure 9.2

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Characteristics of a Management Information System

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

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Manufacturing MIS

Schematic
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Information and Organizations

Databases of internal data

Databases of external data

Manufacturing DSS

Business transactions Transaction processing systems

Databases of valid transactions for each TPS

Manufacturing MIS

Manufacturing applications databases

Business transactions Operational databases

Quality control reports Process control reports

Internet or Extranet

JIT reports MRP reports Production schedule CAD output

Manufacturing ES

Business transactions

Customers, Suppliers

Figure 9.6

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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

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End of Chapter 9
Chapter 10
ITEC 1010

Information and Organizations