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DATA PROCESSING IN
INDUSTRIAL SYSTEMS
 Associate Prof.Dr. Ufuk Cebeci
MANAGEMENT
INFORMATION SYSTEMS
•Introduction
•What is MIS?
•Objectives, Decisions and
Information
•Levels of Decision Maki...
 Managers see computers as tools for
providing information on which to base
their decisions.
 People who are successful ...
 What they need most is conceptual
knowledge about the information
requirements of management and the
methods for convert...
What is a MIS?
 A management information system is a
formalized computer information
system that can integrate data from
...
What is a MIS
 The data-processing system supports
management information systems. Much of
the information that the MIS u...
What is a MIS
 The data-processing system performs
transaction processing. It is very much
involved with processing order...
What is a MIS
Management Information Systems
Characteristics
•Oriented toward decision making
•Summary information
•Medium...
Levels of Decision Making
 Decisions can be classified as;
 Strategic
 Tactical
 Operational
 These levels of decisio...
Levels of Decision Making
 Strategic decisions are future oriented
and involve a great deal of uncertainty.
Strategic dec...
Levels of Decision Making
 Tactical decision making is concerned
with the implementation of the decisions
made at the str...
Levels of Decision Making
 Operational decisions involve the
execution of specific tasks to assure
that they are carried ...
Levels of Decision Making
 Managers and supervisors at this level are
expected to make decisions that keep the
operation ...
Levels of Decision Making
 Programmable decisions are those
decisions for which policy standards or
guidelines are alread...
Levels of Decision Making
 Note that programmable decisions are made
by lower-level managers or supervisors.
 Non-progra...
Levels of Decision Making
Strategic
Level
Decisions
Data Processing
(Transaction Processing)
Operarional-Level Decisions
T...
Levels of Decision Making
 In our discussion of levels of decision
making, we touched on some of the
characteristics of t...
Levels of Decision Making
Characteristics of the Three Levels of Decision Making
Levels of Decision Making
Characteristic ...
Levels of Decision Making
 However, we should look closely at some of
them such as the use of realtime information.
Opera...
Levels of Decision Making
 On the other hand, strategic decision
making depends much less realtime
information. For insta...
Levels of Decision Making
 Strategic-level decision making also tends to
rely heavily on financial information. Decision
...
Characteristics of Information Required at Each Level of Decision Making
Levels of Decision Making
Information Characteris...
Qualitative Characteristics
of Information
 Relevance
 Information has relevance when it is
useful in decision making. I...
Qualitative Characteristics
of Information
 Timeliness
 In the context of most management
information systems, as inform...
Qualitative Characteristics
of Information
 Accuracy
 Accuracy refers to information being free of
error. The amount of ...
Qualitative Characteristics
of Information
 Verifiability
 Verifiability means that the accuracy of
information can be c...
Qualitative Characteristics
of Information
 Traceability
Qualitative Characteristics
of Information
 Integrity
Qualitative Characteristics
of Information
 The term audit trail is often used to describe
the means by which summarized ...
Data or Information
Processing
 Data are collected facts that generally
are not useful for decision making
without furthe...
TYPES OF REPORTS in MIS
Report: A printing or display of items.
 Scheduled (Regular) Reports
 Demand (Query) Reports
 E...
Scheduled Reports
 Scheduled Reports are produced on a
regularly scheduled basis such as daily,
weekly, or monthly.
 The...
Exception Reports
 One of the most efficient approaches to management is
the management by exception approach. Management...
Exception Reports (continue..)
 Listings that identify all customers with
account balances that are overdue are
examples ...
Demand Reports
 Demand reports are generated on request. These
reports fill irregular needs for information.
 In the ear...
Predictive Reports
 They are useful in planning decisions. They often
make use of statistical and modeling techniques suc...
Scheduled
(Regular)
Reports
Demand
(Query)
Reports
Exception
Reports
Predictive
Reports
- Produced on a regularly schedule...
MIS REPORTS FOR SALES
DEPT.
R: WEEKLY SALES REPORT
E: WEEKLY COMPLAINTS ABOUT
SALES
Q: WHAT IS THE SITUATION OF
CUSTOMER A...
Weekly Deliveries Report Report Date:4.1.17 Time: 11:02 Page:
1/6 Week No:5
 Customer Name Prod.Code Quantity Price Unit ...
The MIS and Business Functions
 A MIS is a federation of functional information
system.
 Specialists within each of the ...
 Database management systems greatly enhance the ability of these functional systems to share the same
data. The importan...
The MIS and Data-Base Management
Systems
 Data are the central resource of MIS.
 A data-base management system is a prog...
MIS
Marketing
Applications
Finance
Applications
Accounting
Applications
Production
Applications
Engineering
Applications
P...
Decision-Support Systems and the MIS
 A decision-support system provides a set of
integrated computer tools that allow a ...
Decision-Support Systems and the MIS
 A decision-support system is an extension of a
MIS. It provides user-friendly langu...
The Impact of Management Information
Systems on Business
 All businesses, whether large or small must perform
data proces...
 A business simply could not service its customers or
make higher level decisions without information to
support customer...
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Data processing sunum-lesson 4-mis-dss

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Data processing sunum-lesson 4-mis-dss

  1. 1. DATA PROCESSING IN INDUSTRIAL SYSTEMS  Associate Prof.Dr. Ufuk Cebeci
  2. 2. MANAGEMENT INFORMATION SYSTEMS •Introduction •What is MIS? •Objectives, Decisions and Information •Levels of Decision Making •Strategic Decisions •Tactical Decisions •Operational Decisions •Management Uses of Information •Planning •Control •Qualitative Characteristics of Information •Relevance •Timeliness •Accuracy •Verifiability •Data or Information Processing •Scheduled Reports •Demand Reports •Exception Reports •Predictive Reports •The MIS and Business •The MIS and Data-Base Management Systems •Decision support Systems •The Impact of Management Information Systems on Business •Easier Business growth •Fewer Clerical Workers •Reduced Information- Processing Costs •Automation of Some Decisions •More and Better Information Chapter Outline
  3. 3.  Managers see computers as tools for providing information on which to base their decisions.  People who are successful with computers know that when developing computer applications they should first focus on their information needs rather than on hardware technology.
  4. 4.  What they need most is conceptual knowledge about the information requirements of management and the methods for converting these often complex requirements into operational computer software.
  5. 5. What is a MIS?  A management information system is a formalized computer information system that can integrate data from various sources to provide the information necessary for management decision making.
  6. 6. What is a MIS  The data-processing system supports management information systems. Much of the information that the MIS uses is initially captured and stored by the data-processing system.  Data processing is oriented toward the capture, processing and storage of data whereas MIS is oriented toward using the data to produce management information.
  7. 7. What is a MIS  The data-processing system performs transaction processing. It is very much involved with processing orders, sales, payments on account, and so on. In the course of processing these transactions, the data-processing system collects and stores a large amount of detailed information. This information is the data base for the management information system.
  8. 8. What is a MIS Management Information Systems Characteristics •Oriented toward decision making •Summary information •Medium and long range •Periodic •Prediction and control oriented Data Processing Characteristics -Performs Transaction Processing -Detail Data -Short Range -Realtime -Daily Operations Oriented •The Relationship between Data Processing and Management Information Systems
  9. 9. Levels of Decision Making  Decisions can be classified as;  Strategic  Tactical  Operational  These levels of decision making also correspond to management levels. Strategic decisions are made by top management; tactical decisions by middle management; and operational decisions by lower-level management.
  10. 10. Levels of Decision Making  Strategic decisions are future oriented and involve a great deal of uncertainty. Strategic decision making involves the establishment of objectives for the organization and the long range plans for attaining these objectives. Decisions regarding the location of plants, and decisions about capital sources about which products to produce, are examples of strategic decisions.
  11. 11. Levels of Decision Making  Tactical decision making is concerned with the implementation of the decisions made at the strategic level. This includes the allocation of resources to the pursuit of organizational objectives. Examples of tactical decision making include plant layout, personnel concerns, budget allocation, and production planning.
  12. 12. Levels of Decision Making  Operational decisions involve the execution of specific tasks to assure that they are carried out effectively and efficiently. These decisions are made primarily by lower-level supervisors. Standards are usually preset for operational decisions..
  13. 13. Levels of Decision Making  Managers and supervisors at this level are expected to make decisions that keep the operation in line with predetermined standards. Examples of operational decision making include acceptance or rejection of credit in a personal banking or an employee, determination of inventory reorder times and quantities, and assignment of jobs to individual workers.
  14. 14. Levels of Decision Making  Programmable decisions are those decisions for which policy standards or guidelines are already established. For this reason they are often called structured decisions. These decisions are routine in nature and can be made reference to previously established policy.  An example of a programmable decision is the credit-granting decision based on income, years employed, et cetera of the individual applying for credit.
  15. 15. Levels of Decision Making  Note that programmable decisions are made by lower-level managers or supervisors.  Non-programmable decisions deal with ill- defined and unstructured problems. These decisions are future oriented and contain many variables whose impact on the outcome cannot be quantified. These unstructured decisions are those regarding plant expansion, new products and mergers.
  16. 16. Levels of Decision Making Strategic Level Decisions Data Processing (Transaction Processing) Operarional-Level Decisions Tactical-Level Decisions Levels of Decision Making
  17. 17. Levels of Decision Making  In our discussion of levels of decision making, we touched on some of the characteristics of the information required at each level of decision making. Next table summarizes these characteristics. Most of the entries in this table are self-explanatory.
  18. 18. Levels of Decision Making Characteristics of the Three Levels of Decision Making Levels of Decision Making Characteristic Operational Tactical Strategic Problem Variety Low Moderate High Degree of Structure High Moderate Low Degree of Uncertainty Low Moderate High Degree of Judgement Low Moderate High Time Horizon Days Months Years Programmable Decisions Most Some None Planning Decisions Few About half Most Control Decisions Most About half Few
  19. 19. Levels of Decision Making  However, we should look closely at some of them such as the use of realtime information. Operational decision making depends heavily on realtime information.  For example, our school uses a realtime system for course registration. The operational decision allow you to sign up for a particular class depends on the realtime information whether the class is full or not.
  20. 20. Levels of Decision Making  On the other hand, strategic decision making depends much less realtime information. For instance, one important type of information used at the strategic level is income statements. These statements are usually generated at the end of each month. Therefore, they are not realtime.
  21. 21. Levels of Decision Making  Strategic-level decision making also tends to rely heavily on financial information. Decision makers at this level deal with capital requirements and profitability in dollars.  On the other hand, a frontline supervisor is more concerned about the hours worked on a job, the number of orders shipped, the number of defective units produced.
  22. 22. Characteristics of Information Required at Each Level of Decision Making Levels of Decision Making Information Characteristic Operational Tactical Strategic Dependence On Computer Information Systems High Moderate High Dependence On Internal Information Very High High Moderate Dependence on External Information Low Moderate Very High Degree of Information Summarization Very Low Moderate High Need For Online Information Very High High Moderate Need For Computer Graphics Low Moderate High Use Of Real time Information Very High High Moderate Use Of Predictive Information Low High Very High Use Of Historical Information High Moderate Low Use Of What-If Information Low High Very High Use Of Information Stated In Dollars Low Moderate High
  23. 23. Qualitative Characteristics of Information  Relevance  Information has relevance when it is useful in decision making. In other words, if information improves the decision, it is relevant.
  24. 24. Qualitative Characteristics of Information  Timeliness  In the context of most management information systems, as information value becomes older its value decreases. Generally lower level decisions in an organization must have more current and timely information and as we move up ladder to higher-level decisions the information can be somewhat older.
  25. 25. Qualitative Characteristics of Information  Accuracy  Accuracy refers to information being free of error. The amount of error that we can tolerate is related to the other factors, especially timeliness and the dollar value of the decision to be made. If a decision maker must make a decision quickly, a greater degree of error can be tolerated than if he or she has considerable time and resources available to reduce error.
  26. 26. Qualitative Characteristics of Information  Verifiability  Verifiability means that the accuracy of information can be confirmed. Information can be verified through comparison with other information that is known to be accurate.
  27. 27. Qualitative Characteristics of Information  Traceability
  28. 28. Qualitative Characteristics of Information  Integrity
  29. 29. Qualitative Characteristics of Information  The term audit trail is often used to describe the means by which summarized information can be traced back to its original source. This audit-trail is a very important part of any information processing system. Without this trail it is usually impossible to determine the accuracy of information, therefore bringing in to question the usefulness of such information.
  30. 30. Data or Information Processing  Data are collected facts that generally are not useful for decision making without further processing. Information is directly useful in decision making. It is based on processed data therefore is the output of a data-processing system.
  31. 31. TYPES OF REPORTS in MIS Report: A printing or display of items.  Scheduled (Regular) Reports  Demand (Query) Reports  Exception Reports  Predictive Reports
  32. 32. Scheduled Reports  Scheduled Reports are produced on a regularly scheduled basis such as daily, weekly, or monthly.  These reports are widely distributed to users and often contain large amounts of information that are not used regularly.
  33. 33. Exception Reports  One of the most efficient approaches to management is the management by exception approach. Management by exception means that managers spend their time dealing with exceptions or those situations which are out of control.Activities that are proceeding as planned are in control and, therefore , do not need the manager’s attention.  Exception reports notify management when an activity or system is out of control so that corrective action can be taken.
  34. 34. Exception Reports (continue..)  Listings that identify all customers with account balances that are overdue are examples of exception reports.  Error reports are another type of exception reports. Error reports identify input or processing errors occurring during the computer’s execution of a particular application.
  35. 35. Demand Reports  Demand reports are generated on request. These reports fill irregular needs for information.  In the earlier days of computing, the contents of a demand report had to be previously anticipated or there was a delay of often weeks or months in receiving the data. Today, largely through the query languages of database management systems, we can fulfill unanticipated demands for information very quickly.This is possible because users and managers can use query languages to produce reports.
  36. 36. Predictive Reports  They are useful in planning decisions. They often make use of statistical and modeling techniques such as regression, time series analysis, and simulation.  These reports assist management in answering what- if questions. For example: What if Ad increased by 10% ?  The statistical and modeling techniques that produce predictive reports depend largely on historical data. Such data must be accessible by the MIS in a form that can be used by the models; otherwise, these models will be little use to management.
  37. 37. Scheduled (Regular) Reports Demand (Query) Reports Exception Reports Predictive Reports - Produced on a regularly scheduled basis. - Daily, weekly, monthly - Widely distributed to users - Generated upon request. - Easily produced with query languages. - Fill irregular needs for information. -Notifies management of out-of control situations. - Periodical - Error listings - Edit listings. - Assist management in answering what-if questions - Produced by statistical and modeling programs - Useful in planning
  38. 38. MIS REPORTS FOR SALES DEPT. R: WEEKLY SALES REPORT E: WEEKLY COMPLAINTS ABOUT SALES Q: WHAT IS THE SITUATION OF CUSTOMER A? P: NEXT YEAR’S SALES
  39. 39. Weekly Deliveries Report Report Date:4.1.17 Time: 11:02 Page: 1/6 Week No:5  Customer Name Prod.Code Quantity Price Unit Amount Delivery Date  XYZ 315 29 10 KG 290 2.1.17  XYZ 433 10 15 KG 150 3.1.17  .  .  .  ----------------------------------------------------------------------------------- COUNT : 2 AVERAGE 19.5 12.5 TOTAL 440
  40. 40. The MIS and Business Functions  A MIS is a federation of functional information system.  Specialists within each of the functional areas such as finance, production, accounting, or engineering are much more familiar with the information requirements of that function than anyone else in the firm. These specialists can design systems to produce the information required to manage their function.
  41. 41.  Database management systems greatly enhance the ability of these functional systems to share the same data. The important point to remember is that these integrated functional information systems are the MIS. The MIS as a Federation ofFunctionalInformation Systems Marketing Information System Finance Information System Accounts Receivable Accounts Payable Data Editand Balance MasterFile Update Payroll-Check Generator LaborDistribution ReportGenerator Payroll Fixed AssetAccounting GeneralLedger CostAccounting Accounting Information System Production Information System Engineering Information System PersonnelInforma MIS ctional rmation stems ccounting pplication Systems Payroll Programs
  42. 42. The MIS and Data-Base Management Systems  Data are the central resource of MIS.  A data-base management system is a program that serves as an interface between applications programs and a set of coordinated and integrated files called a data base.  There are many opportunities for functional information systems to share the same data. For instance, the payroll application within the accounting information system could share data with the personnel information system. Examples of data that could be shared are employee names, addresses and pay rates.
  43. 43. MIS Marketing Applications Finance Applications Accounting Applications Production Applications Engineering Applications Personnel Applications DBMS Data Base  Data-base management systems are an interface between the functional applications and the data base. The DBMS allows the various functional systems to access the same data.  The DBMS is perhaps the most important tool in making MIS possible.
  44. 44. Decision-Support Systems and the MIS  A decision-support system provides a set of integrated computer tools that allow a decision maker to interact directly with computers in order to retrieve information useful for semi structured and unstructured decisions. Such decisions might involve plant expansion, mergers, acquisitions, or new products, for example.
  45. 45. Decision-Support Systems and the MIS  A decision-support system is an extension of a MIS. It provides user-friendly languages, data retrieval, data processing, and modeling capabilities for the decision maker’s direct use.  Integrated form of electronic spreadsheets, database management, and graphics allows user’ s to react quickly to the changing information needs that usually go along with unstructured decisions. Asprova, Icron Prod.pln.
  46. 46. The Impact of Management Information Systems on Business  All businesses, whether large or small must perform data processing.  Since a small- business manager is very familiar with all the aspects of the business, there is less need for a formal data-processing system.  As a business grows larger, managers depend much more on data-processing systems for their information.
  47. 47.  A business simply could not service its customers or make higher level decisions without information to support customer service and decision making.  The use of computers in information processing has had several impacts on business:  easier business growth  fewer clerical workers  reduced data- processing costs  automation of some decisions  availability of different types and greater quantities of information. The Impact of Management Information Systems on Business

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