Application in manufacturing sector


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Application in manufacturing sector

  2. 2. Page  2 Applications of management functions of the industry Model of information processing system Integration of manufacturing applicationsLEARNING OBJECTIVES
  3. 3. Page  3Introduction Mis model of application in manufacturing sector is devided into numberof different processes which are as under given- OLTP- RDBMS- DATABASE- INPUT- PROCESS- OUTPUT- UPDATION
  5. 5. Page  5Model of Information Processing System The online transaction processing system helps to process input intodatabase The system designer develops an application with the objective ofaccounting, transaction based results and providing the reports on thesame. The second objective is to provide query system for assessment of thestatus of record, result or document. Threw analysis and control application development and maintainedprocess take place. After this input process next is report generation and screen display havebeen done. At last the updating process take place.
  6. 6. Page  6Different management effected on mis There are various kinds of management and its application which are asgiven beloved.- Personal management- Financial management- Production management- Raw material management- Marketing management- Corporate overview.
  7. 7. Page  7Personal management Pm functions has the primary objectives is providing suitable manpower innumber with certain ability, skills and knowledge as organizationsdemands from time to time. Main goal is increase in manpower productivity by resorting followingtechniques.1)HR development threw training and upgrade skills2)Motivation threw leadership and job enrichment3)Promotion and rewards threw performance appraisal4)Grievance handling5)Structuring the organization
  8. 8. Page  8Personal 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
  9. 9. Page  9Personal management Applications: Accounting- Attendance- Manpower- Leave- Salary/wages- Loans and deductions- Accidents- Production data- Skills- Bio data- Family data
  10. 10. Page  10Personal 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
  11. 11. Page  11Personal 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 trainingprogrammers.
  12. 12. Page  12Personal 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
  13. 13. Page  13Personal 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 newrecruitment
  14. 14. Page  14Personal 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 specificneeds* Most of this reports is useful with top level management
  15. 15. Page  15Financial management Main objective is fulfill financial needs of business from time to time byproviding working capital and organization to achieve goal. Other objectives are help organizations with audited financial reports timeto time. Financial management uses variety of tools and techniques which are asunder:- Break even analysis- Cost analysis- Cash flow projections- Ratio analysis- Roi analysis- Management accounting- Expense analysis, Auditing and control
  16. 16. Page  16Financial management Input transaction documents:- payments: to suppliers,authorities,employees,shareholders,financialinstitutions etc- Receipts : from customers,authorities,employees,financial institutions andothers.- Data from stock exchange of the share prices,consolideted financialresults of the other companies etc.
  17. 17. Page  17Financial management Applications: Accounting:- Sales- Purchase- salary/wages- Inventory- Expenses- Capital purchase- Fixed deposits- Shareholder’s funds- Income tax, sales tax,exise duty, customs duty- Budgets
  18. 18. Page  18Financial 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
  19. 19. Page  19Financial 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
  20. 20. Page  20Financial 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
  21. 21. Page  21Financial 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
  22. 22. Page  22Production Management Main objective is to provide manufacturing services to the organizations The other functions like planning,control,industial engineering,maintainceand quality control. The organizations of the production management is differ from type ofproduction The functions goals of the production management are fuller utilization ofthe 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
  23. 23. Page  23Production 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
  24. 24. Page  24Production 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 deliverydate.
  25. 25. Page  25Production Management Statutory compliance- PM should be significant towards legal documents which are related withother managements- The production hours, general workloads are effected as statutory side inpm,.• 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
  26. 26. Page  26Production 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 implementationscenario of decisions- Measurement of decisions count in this report- Help to decision maker with providing a proper infrastructure which ishelpful in future,
  27. 27. Page  27Raw Material Management(RMM) The objective of RMM is to provide material for production,maintainanceand services at economical prices, in an appropriate quantity and qualitywith 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 takeplace to ensure the procurement of material is done at an economic price.
  28. 28. Page  28Raw 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
  29. 29. Page  29Raw 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 ofpurchase, returns and payments- Query may be on item purchased, purchased price, supplier and otherpurchase related detail.
  30. 30. Page  30Raw 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 takedecisions- Material management performs supporting role to productionmanagement in decision analysis.• Control :- Performance is evaluated with 4 accounts viz,capital blocksed ininventory, number of stock outs affecting production activity, reliability ofsuppliers, cost and purchase.- Periodic evaluation required with stocks,rawmaretials etc.- The evaluation of non moving and non selling inventory is necessarywhile control process take place in raw material management.
  31. 31. Page  31Raw 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
  32. 32. Page  32Raw Material Management(RMM) Information Update:- There are various information which required regular updating in registerwhich 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
  33. 33. Page  33Raw 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
  34. 34. Page  34Raw Material Management(RMM) Action Update: Action update take place on decision wise that whether a decision isimplemented or not. Review of action take place and impact can be measures Actions is related with vendors,purchase,quality measurement etc.
  35. 35. Page  35Marketing Management It is deal with satisfying the consumer Scope is identify need of consumer,envolving product concept, designingthe product The activities involves are market research, consumersurveys,advertising,sales,promotions,campaign,stocking of products,developing ,etc Control take place at sales department wise It is directly interacted with sales management.
  36. 36. Page  36Marketing 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 ofmarketing management.• The main accounting activity is sales everything is focused on sales• The other accounting activities are as given
  37. 37. Page  37Marketing Management Accounting:- Product sale- Product family- Sales value- Sales tax- Dealer- Distributor- Customer- Excise duty- Inventory- Area- Market segments- Returns- Receivables
  38. 38. Page  38Marketing Management Query- The queries in the MM are on customer,product,price,stock,sales.- It mainly focused on orders, transaction process after order has beenreceived- It has also on assessment of sales performance and comparison withvarious competitors also.• Decision analysis:- Decision is focusing on prices,orders,discounts,commisions,decidingsales 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 rightdecisions
  39. 39. Page  39Marketing Management Control:- Control is focused on business goals- Control comes with comparisons of sales vs budget, marketing cost vsbudget 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 ofMM.
  40. 40. Page  40Marketing Management Reports Statutory reports:- taxes and duties- Excise duties- Sales tax- Audit record and review• Information update:- product sales ledger- Sales summary- Account receivables- Sales analysis- Market analysis- Competition analysis- Contribution analysis
  41. 41. Page  41Marketing 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
  42. 42. Page  42Corporate overview It is combination of all management The top management is informed by each manager threw reports andperformance evaluation take place according to this reports The reports contains note, inner-office memos etc documents The basic communication is necessary between various departmentbefore submitting report to top management Periodic evolution is necessary The main example of corporate overview according to management wiseis like this
  43. 43. Page  43Corporate overviewMarketing Production Finance ExpensesOrders PlannedproductionsCurrent assets Revenue expensesSales Actual production Current liabilities CapitalexpenditureCost of goods sold Cost of production Current ratio Payment toemployeesFinished goodsinventoryRaw materialinventoryAccount receivableto turn overMarketing expenseReceivables Payables Inventory turnover Other expenses
  44. 44. Page  44Corporate overview: Business System IntegrationMM PMFMProductionMGMTRMMBusinessAccountingMGMTAccountingplanningBusinessaccounting