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MIS 15 Application of MIS (Manufacturing Sector)
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MIS 15 Application of MIS (Manufacturing Sector)


These presentations are created by Tushar B Kute to teach the subject 'Management Information System' subject of TEIT of University of Pune. …

These presentations are created by Tushar B Kute to teach the subject 'Management Information System' subject of TEIT of University of Pune.

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  • 1. Management information system
    Third Year Information Technology
    Part 15
    Applications of MIS
    (Manufacturing Sector)
    Tushar B Kute,
    Sandip Institute of Technology &
    Research Centre, Nashik
  • 2. Model of information processing system
  • 3. Applications in manufacturing sector
    Personnel management
    Production management
    Financial management
    Material management
    Marketing management
  • 4. Personnel management
    It has a primary function of providing suitable manpower in number and certain ability, skill and knowledge, as the business organizations demands from time to time.
    Its goal is to control personnel cost through continuous increase in manpower productivity by resorting the following techniques:
    HRD through training and upgrading the skills.
    Motivation through leadership and job enrichment.
    Promotion and rewards through performance appraisal.
    Structuring the organization.
  • 5. Input transaction documents
    Personal application form
    Appointment letter
    Attendance and leave records
    Appraisal form
    Productivity data on jobs
    Wages / salary agreement
    Record of complaints, grievance, accidents
    Industry data of wage, salary structure
    Industry data on manpower, skill, qualifications
  • 6. applications
  • 7. accounting
    Salary/wages deductions
    Loans and deductions
    Production data
    Family data
  • 8. query
    Who is who?
    Strength of section, department, division
    Number of person with particular skills.
    Attendance, leave, absenteeism records of all employees.
    Salary/wages of employees.
    Designations and number persons holding these designations.
    Personal records of employees..
  • 9. analysis
    Analysis of attendance by class of employees.
    Leave analysis by a group of employees.
    Trend in the leave record.
    Analysis of accident and type thereof.
    Analysis of salary/wages structure.
    Analysis of overtime.
  • 10. control
    Probable absence vs. workload.
    Projection of personnel cost against manpower increase.
    Assessment of accident records against safety measures taken.
    Personnel cost vs. industry cost and its projection.
    Projection of manpower needs and evolving recruitment and training programs.
  • 11. reports
    Statutory reports
    Information updates
    Operation updates
    Decision analysis
    Action reports
  • 12. Statutory reports
    Attendance record (Muster).
    Strength of employees by category- permanent, trainees, apprentices.
    Provident funds, ESI reports, ledgers, returns.
    Accident reports.
    Income tax forms 16, 24A.
    Strength of employees to Director General of Technical Development (DGTD)
  • 13. Information updates
    Daily attendance report
    Employee strength
    Joining and transfer of employees
    Personnel cost by department, job, product.
    Periodical statements showing cost by salary/wages, overtime.
  • 14. Operation updates
    Daily attendance to plan the workload.
    Overtime vs. work completed.
    Projected absenteeism and distribution of workload.
    Cost of personnel job or work completed.
  • 15. Decision analysis
    Analysis of attendance for season, festival, and by skills, scheduling of the jobs accordingly.
    Overtime analysis by department, employees and job to decide the strength of personnel.
    Analysis of accidents and deciding on safety measures and training.
    Cost analysis by personnel vs. jobs skills and planning for new recruitment.
  • 16. Action reports
    Recruitment and additional manpower or subcontracting of jobs.
    Acceptance of orders on the basis of workload.
    Reduction, transfer and reorganization of employees to control costs.
    Preparation of training and development programs with specific needs.
  • 17. Hr management system
  • 18. Financial management
    Its function has a primary objective of meeting the financial needs of the business, from time to time, by the way of providing working capital and long-term capital to run the business with the goal of containing the cost of the capital at minimum.
    Declaration of audit financial results, submit all reports and returns to the Government and Tax authorities.
  • 19. Fm tools
    Break-even analysis
    Cost analysis
    Cash flow projections
    Ratio analysis
    Capital budgeting and ROI analysis
    Financial modeling
    Management accounting
    Expense analysis, auditing and control
  • 20. Input transaction documents
    Payments- to suppliers, authorities, employees, shareholders, financial institutions and others.
    Receipts- from customers, authorities, employees, shareholders, financial institutions and others.
    Data from stock exchange of the share prices, consolidated financial results of the other companies.
  • 21. applications
    Decision analysis
  • 22. accounting
    Salary / wages
    Capital purchase
    Fixed deposits
    Shareholder’s funds
    Income tax
    Sales tax
    Excise duty
    Custom duty
    Fixed assets
  • 23. query
    The query is processed for the following with respective codes as keys-
    Main document
    Subsidiary account
    Location (Factory, Branch) etc.
    Document (Bills, Credit note, Delhi note, Receipt etc.)
  • 24. Decision analysis
    Cash flow analysis
    Sources and uses of funds
    Debtors analysis and aging
    Creditors analysis and aging
    Budget analysis
    Ratio analysis and management norms
    Capital budgeting and ranking of investment alternatives.
    Cost analysis of various production inputs and alternatives.
  • 25. control
    The control is exercised, based on the exceptions found in the business organization-
    Accounts receivables, outstanding beyond the acceptable norms.
    Advances to creditors and non realization of obligations.
    Valuation of non-moving inventory for disposal.
    Analysis of non-moving accounts and legal actions.
    Shortage of funds in excess of planned and rescheduling of activities, priorities.
    Cost overruns beyond the norms and action on alternatives.
  • 26. reports
    Statutory reports
    Information updates
    Operation updates
    Decision analysis
    Action reports
  • 27. Statutory compliance
    Tax returns
    Registers: sale tax, excise tax, tax deducted at source.
    Declaration of certain results to the financial institutions.
    Declaration of financial results to the public every six months.
    Declaration of annual results to the board, shareholders, and public within a stipulated time.
  • 28. Information updates
    Monthly trial balance, balance sheet and profit and loss account
    Stock valuation
    Accounts receivables and aging
    Accounts payables and aging
    Expenses on major accounts.
    Cash position
    Payments and receipts which are statutory obligations.
    Sales and purchase of assets by certain classification.
    Overall business achievements in major lines of business.
  • 29. Operation updates
    Filling statutory returns and reports.
    Statutory payments such as advance tax, sales tax, octroi, excise duty etc.
    Transactions executed and accounted in the system.
    Reports on finished goods, dispatches and invoicing.
    Reports on material receipts and payment to the suppliers.
    Obligatory payments- rents, insurance premium, membership fees, interest and dividend.
  • 30. Decision analysis
    Break even analysis for cost price detection.
    Returns of investment analysis for choice of investment.
    Trends analysis on price of selected commodities.
    Cash flow, sources and uses of funds.
    Analysis of current and fixed assets in terms of use and decision on alternate use or disposal.
    Analysis of current liabilities and decision on liquidation on priorities basis.
  • 31. Action update
    Overdue receivables
    Legal action
    Termination of business association.
    Non supply of goods and services but advance paid.
    Legal action
    Revision of terms
    Termination of business association
    Payments to creditors, where penalties are involved.
    Poor usage of fixed assets and disposal.
    Non-moving inventory of more than two years and its disposal.
    Evolving new systems and procedures to control expenses and implementation.
  • 32. Production management (Pm)
    The Objective of PM function is, to provide manufacturing services to the organisation.
    This involves the manufacture of products of a certain specified quality and within certain costs in a stipulated time fulfilling the promises given to the customer.
    The PM function is supported by other functions, viz. Production Planning and Control, Industrial Engineering, Maintenance and Quality Control.
  • 33. Input transaction documents
    Production Programme
    Production Schedule
    Process Planning Sheet
    Job Card
    Job status advice
    Quality Assurance rating form
    Finished goods advice
    Breakdown advice
    Material Requirement
    Material Requisition
    Customer order
  • 34. applications
    Performed through Production Planning and Control
    Bill of material processing
    Drawing and Process Planning
    Scheduling and Monitoring systems as support systems
  • 35. Accounting
    Quantity of Production with respect to a time period
    Material requirement and its usage
    Rejection quantity at each intermediate stage and the final stage
    Breakdown incidence
    Labour complement with respect to a period
    Use of Power, fuel and Consumables.
    Machine and facilities utilisation
    Labour hours
  • 36. Query
    The queries in the PM relate to seeking of status of job or information on fixed entities..
    + Status of the job or order in terms of stage and level of completion
    + Production Programme and jobs schedules.
    + Load status on Machine, group of machines.
    + Status on availability of material.
    + Standard information on machines, tools, specifications.
    + Standard information on skills and capacities of each worker.
    + Standard information on products and processes.
  • 37. Decision Analysis
    Long term and Short term Period
    Make or buy
    Make or subcontract
    User of alternative material
    Use of alternative process
    Evolving optimum product mix/job mix
    Rescheduling and loading of jobs
    Planning and scheduling of jobs
    Selection of production facilities
    Selection of alternative maintenance policies
  • 38. control
    The exceptions which need to be highlighted are:
    Excessive product rejection on account of material and/or process.
    Hold up of key jobs beyond a certain limit.
    Excessive work in process inventory.
    Continued breakdown of the manufacturing facility beyond a certain period.
    Utilisation of key facilities below a limit.
    Continuous significant deviation from standards or norms of production rate.
    Backlog of a large number of orders and failure to meet promised delivery date.
  • 39. Reports and screen display
    Statutory Compliance
    Information Update
    Operations Updates
    Decision Analysis
    Action Update
  • 40. materials management
    To provide material for production, maintenance and services at economical prices, in an appropriate quantity and quality with east stockouts and with no extra cost of carrying the inventory.
    The scope of materials management function is procurement, stocking control of inventory.
  • 41. Input transaction documents
    Purchase acquisition
    Purchase order
    Receipt of goods
    Return of goods to supplier
    Issue for production
    Return from production
    Certification of bill for payment
  • 42. applications
    Forecasting and planning
    Purchase ordering
    Goods receipt
    Issuing the material
    Processing of returns
    Bill passing and control
  • 43. accounting
    Purchase quantity
    Issue quantity
    Good returns
    Value of purchase
    Average or standard rate of accounting
  • 44. query
    Query in material management largely centered around price, supplier, stock and pending aspect of purchase, returns and payments.
    It may be on item seeking the latest purchase price or it may be on an item seeking price in a particular purchase order placed on a particular supplier.
  • 45. Decision analysis
    Price of the item.
    Multidimensional analysis of the price.
    Stocking of items
    System for controlling items
    Fixed Order Quantity
    Reorder Level System
    Periodic Review System
    Inventory analysis
    A-B-C Analysis
    Production Analysis
  • 46. control
    Capital blocked in the inventory
    Number of stock outs affecting the production activity
    Reliability and dependability of suppliers
    Cost of purchase
  • 47. Reports and display
    Statutory Compliance
    Information Update
    Operations Updates
    Decision Analysis
    Action Update
  • 48. Statutory compliance
    Stock ledger
    Valued stock statement
    Octroi register
    MODVAT register
    Excise duty returns and registers
    Customs bond register
    Returns on tax deducted at source
  • 49. Information update
    Price fluctuations and trend
    Information of alternative material with specifications and test results
    New suppliers and sources of suppliers
    Current incidence of taxes and duties
    Value of inventory computed at standard price
    Performance of suppliers
    Value of non-moving inventory
    Material required for next planning period.
  • 50. Operations update
    Daily goods received register
    Statement showing items in short supply or stockouts
    Reports on purchase acquisitions received but not converted into purchase orders
    Statement on suppliers due but not yet received
    Statement on payment due to suppliers but not yet paid
    Statement of suppliers received and rejected
  • 51. Decision analysis
    Emergency procurement
    Revision of price
    Terms of supplies
    Disposal of inventory
    Cutting down the procedure of purchase
    Switching over to new supplier
  • 52. Action updates
    All the actions are centered around the parameters mentioned in decision analysis.
  • 53. marketing management
    It deals with satisfying the consumer. The scope of function starts from identifying the need of customer, evolving product concept, designing the product, positioning the product in market and selling in the appropriate price.
    Market research
    Consumer survey
    Sales promotion campaign
    Stocking of products
  • 54. Input transaction documents
    Customer order
    Order acceptance
    Delivery note
    Invoice, credit note, debit note
  • 55. applications
    Decision analysis
  • 56. accounting
    Product sale
    Product family
    Sales value
    Sales tax
    Excise duty
    Market segment
    Exports market
  • 57. query
    Handling customer complaints
    Pending position followed by stock exists for allocation or not
    Whether manufacturing order is issued / status
    Single or multidimensional comparisons between two product groups.
  • 58. Decision analysis
    Decision taken on
    Allocation of stocks to orders
    Discounts and commissions
    Deciding sale terms
    Decision building models
    Break even analysis model
    Risk analysis model
    Distribution model
    Network model
    Product launch model
  • 59. control
    Correct ongoing operational performance
    Reset the direction trend in the development towards desired goals and objectives
    Product positioning and pricing
    Choice of market segment
  • 60. reports
    Statutory reports
    Information updates
    Operation updates
    Decision analysis
    Action reports
  • 61. Statutory compliance
    Sales tax register
    Excise duty returns
  • 62. Information update
    Product sales register
    Sales summaries
    Accounts receivables
    Orders received and accepted
    Sales analysis
    Aging of receivables
    Contribution analysis
    Market analysis
    Competition analysis
  • 63. Operation update
    Reports generated on various marketing operations, daily transactions–
    Order book
    Dispatch report
    Customer complaints
    Complaints disposal
    Guidance for operating personnel as how they are performing.
  • 64. Decision analysis
    It convey whether the desired/expected results are realized or not.
    Pre and post-sales campaign
    Choice for alternative to customers
    New product launch
  • 65. Action updates
    Action reports
    Sales vs. budget
    Expenses vs. sales
    Sales growth vs. sales objectives
    Sales vs. market segment vs. budget
    Stock vs. budgeted stock levels
  • 66. references
    WamanJawadekar, "Management Information Systems” , 4th Edition, Tata McGraw-Hill Publishing Company Limited.
    Tushar B Kute,
    Sandip Institute of Technology &
    Research Centre, Nashik