There are various types of management information systems. Mason and Swanson (1981) describe four categories of management information systems:
1. Databank Information System-The responsibility of this information system is to observe, classify, and store any item of data which might be potentially useful to the decision maker.
2.Predictive Information System-This system moves beyond pure data collection and the determination of trends over time. Predictive information systems provide for the drawing of inferences and predictions that are relevant to decision making. If data from the above examples were to be used in this way, it is possible to obtain information useful for making predictions or for drawing inferences.
3.Decision-Making Information System-This system goes one step further in the process of decision making and incorporates the value system of the organization or its criteria for choosing among alternatives. An extension organization's values are many and varied. They include concerns for resolving farmer problems, increasing and providing for stability of farmer incomes, and improving the quality of farm life. But they also including and providing for stability of farmer incomes, and improving the quality of farm life. But they also include an intent to provide well for staff members and to aid in the process of bringing about rural economic development.
4.Decision-Taking Information System-This is a decision system in which the information system and the decision maker are one and the same. Management is so confident in the assumptions incorporated in the system that it basically relegates its power to initiate action to the system itself. Airplanes carry automatic pilot systems, which are an example of a decision-taking system. Once activated, the system itself keeps the plane on course and at the proper speed and altitude (according to parameters determined by the pilot). Another example of decision-taking information systems is found in modem factory production. In automobile production, continuous inventories of parts are maintained by computer as cars move down an assembly line. Orders are placed automatically by the computer when additional parts are needed. This is done without the intervention of a manager.
http://www.fao.org/docrep/w5830E/w5830e0k.htm
Sunday, February 28, 2010
Thursday, February 25, 2010
Components of Management Information System
A Typical Management Information System is based on four major components:
• Data Gathering
The process of collecting required data from external and internal sources
• Data Entry
The collected data is imputed and stored in the database. Database is the core component used in information processing.
• Data Transformation
The data stored in the database is transformed into useful information through the application of computer programs and judgments made by the technical support staff and the end users.
• Data Utilization
The data that has been transformed into useful information is retrieved as needed by the management of the firm for managing operations and decision making.
• Data Gathering
The process of collecting required data from external and internal sources
• Data Entry
The collected data is imputed and stored in the database. Database is the core component used in information processing.
• Data Transformation
The data stored in the database is transformed into useful information through the application of computer programs and judgments made by the technical support staff and the end users.
• Data Utilization
The data that has been transformed into useful information is retrieved as needed by the management of the firm for managing operations and decision making.
Types of Management Information Systems
Management information systems can be used as a support to managers to provide a competitive advantage. The system must support the goals of the organization. Most organizations are structured along functional lines, and the typical systems are identified as follows:
Marketing management information systems: A marketing management information system supports managerial activity in the area of distribution, product development, pricing decisions, promotional effectiveness, and sales forecasting. More than any other functional area, marketing systems rely on external sources of data.
Human resources management information systems: Human resources management information systems are concerned with activities related to workers, managers, and other individuals employed by the organization. Because the personnel function relates to all other areas in business, the human resources management information system plays a valuable role in ensuring organizational success. Activities performed by the human resources management information systems include, work-force analysis and planning, hiring, training, and job assignments.
Financial management information systems: The financial management information system provides financial information to all financial managers within an organization including the chief financial officer. The chief financial officer analyzes historical and current financial activity, projects future financial needs, and monitors and controls the use of funds over time using the information developed by the MIS department.
Accounting management information systems: All accounting reports are shared by all levels of accounting managers.
The above are examples of the major management information systems. There may be other management information systems if the company is identified by different functional areas.
Wednesday, February 24, 2010
Condition Assessment
Some questions and answers on condition assessment.
- Condition assessment is the act to quantify the physical state at a given point of time
- To have a clear knowledge of the asset condition and how they are performing
- Prioritisation of maintenance programs especially budgeting purposes
- Formulation of predictive failure mode or analytical mechanism
- formulation of maintenance strategies
3.0 What is the main ingredients of a condition assessment?
There are basically 3 main ingredients of condition assessment that is:
- planning
- investigation
- analysis
4.0 What is the details for para 3.0?
1. criticality
2. type of asset
3. age of the asset
4. rate of deterioration
5. economic value of the asset
ii. Evaluate the cost benefit analysis of condition assessment
iii. Implement periodic reassessment of condition assessment plan\
- The condition assessment plan must be resources loaded
- and fulfill SMART
v. Establish tools such as:
1. Manual
2. Standard Operating Procedures
2. Investigation
i. assessment techniques
1. Industrial or governing standards
2. Manufacturer’s manual
3. In-house manuals
ii. Type of investigation
1. Desktop review
2. Visual
3. Test (either in-situ or laboratory testing)
iii. Time frame
- Periodic or non periodic
iv. Cost of the assessment
1. Cost of assessment will be governed by:
a. Depth of investigation,b. Extent of coverage (units involved, locations etc)
c. Extent of data
d. Use of manpower – internal or external, equipments, machineries,
e. Availability of data (from public domain etc)
2. Budget
v. Data collection
1. In-situ or calculated
2. Automation or manual
3. Analysis
- Future economic benefits
- Failure analysis
- Grouping of assets according to condition rating or grading system
- Customised analysis based on current needs and assessment
5.0 What is the outcome of condition assessment?
- Facility condition index
- Residual life or future economic benefits
- Acquisition of new assets or replacement of assets
- Maintenance and operations plans and strategies
- Maintenance prioritisation
- Budgeting
Wednesday, February 17, 2010
Benefits of MIS
Benefits of MIS
MIS can deliver great benefits to enterprises in every industry.
Better Planning and Control
MIS is designed and managed in such way that it aggregates information, monitors the company's activities and operations and enhances communication and collaboration among employees. This ensures better planning for all activities and better ways to measure performance, manage resources and facilitate compliance with industry and government regulations. Control helps in forecasting, preparing accurate budgets and providing the tools and vital information to employees, top management and business partners.
MIS can generate synthesized and processed information from computerized/automated and certain manual systems. Information distribution to all levels of corporate managers, professionals and key executives becomes quite seamless with streamlined MIS. Managers are able to make quick, timely and informed decisions. Top management and board members can take strategic decisions, plan future growth and business expansion activities based on the data and information generated by MIS.
MIS systems provide the tools necessary to gain a better understanding of the market as well as a better understanding of the enterprise itself. Every market leading enterprise will have at least one core competency – that is,
“a function they perform better than their competition”.
Enhance Supply Chain Management
Improved reporting of business processes leads inevitably to a more streamlined production process. With better information on the production process comes the ability to improve the management of the supply chain, including everything from the sourcing of materials to the manufacturing and distribution of the finished product.
Quick Reflexes
As a corollary to improved supply chain management comes an improved ability to react to changes in the market. Better MIS systems enable an enterprise to react more quickly to their environment, enabling them to push out ahead of the competition and produce a better service and a larger piece of the pie.
What is MIS?
Definition by “
Management Information System (MIS) is the term given to the discipline focused on the integration of computer systems with the aims and objectives on an organisation.
The development and management of information technology tools assists executives and the general workforce in performing any tasks related to the processing of information. MIS and business systems are especially useful in the collation of business data and the production of reports to be used as tools for decision making.
Management Information System (According to Wikipedia)
A management information system (MIS) is a subset of the overall internal controls of a business covering the application of people, documents, technologies, and procedures by management accountants to solve business problems such as costing a product, service or a business-wide strategy. Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization. Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. Decision Support Systems, Expert systems, and Executive information systems.
It has been described as, "MIS 'lives' in the space that intersects technology and business. MIS combines tech with business to get people the information they need to do their jobs better/faster/smarter. Information is the lifeblood of all organizations - now more than ever. MIS professionals work as systems analysts, project managers, systems administrators, etc., communicating directly with staff and management across the organization."
Monday, February 8, 2010
Index on Asset Management
(Please click on the links to read the articles)
New articles
- Essential initial documents in asset management - new topic updated 08 Feb 2010
Asset Management System/Tools/Enablers
- Economic Evaluation
- Information System
- Perfomance Management
- System Thinking in Asset Management
- Risk Management
- Whole Life Cycle Costing
Definition
Asset Management Fundamentals:
- Asset registry
- Roles and responsibility
- Asset objectives
- Service criteria
- Asset condition and performance
- Asset life cycle
- User expectations
- Asset stakeholders
- Asset management objectives
- Asset planning
General Interest
Essential Initial Documents for Asset Management
When an organization embarks on an exercise to procure an asset (s), the procurement documentation would be as perfect as the asset itself. But when the asset is procured and put into service, that’s where all problems start.
Firstly, the original procurement documentation is no where to be found,
Firstly, the original procurement documentation is no where to be found,
Secondly, the person who holds the original procurement documentation is either retired or has moved out from the organization,
Thirdly, the asset does not have the proper documentation describing its physical capabilities or even life span or the type of maintenance needed.
So, what documentations that we need for assets?
The documentations are quite simple to obtain at the time the asset is procured but hard to retain when the asset is in service. The documentations are as follows:
a. The procurement documentation
b. The as-built drawings or the installation drawings (if applicable)
So, what documentations that we need for assets?
The documentations are quite simple to obtain at the time the asset is procured but hard to retain when the asset is in service. The documentations are as follows:
a. The procurement documentation
b. The as-built drawings or the installation drawings (if applicable)
c. Quality assurance records (if applicable)
d. Manual (or operating manual)
The organization must keep these documents for as long as the asset’s service life or even design life. Whenever the organization move to a new complex or even a new office building, these documents are invaluable as the current office’s files.
To test our organization, just answer these simple questions:
a. For a start, do we have the office’s computer manual?
b. What’s the office’s computer service life?
c. How much is the cost of the original purchase?
d. Where are the licenses for the software?
If the answers are all “no” or “do not know”, then the organization need to start to obtain and retain the necessary documentations for the assets procured. Without these documentations, then the organization would find hard to maintain the asset or even to ensure the asset operate as it should be during its design and service life.
Just imagine, a cable stayed bridge or an aircraft does not have an operating manual. Would you feel safe to travel on it?
d. Manual (or operating manual)
The organization must keep these documents for as long as the asset’s service life or even design life. Whenever the organization move to a new complex or even a new office building, these documents are invaluable as the current office’s files.
To test our organization, just answer these simple questions:
a. For a start, do we have the office’s computer manual?
b. What’s the office’s computer service life?
c. How much is the cost of the original purchase?
d. Where are the licenses for the software?
If the answers are all “no” or “do not know”, then the organization need to start to obtain and retain the necessary documentations for the assets procured. Without these documentations, then the organization would find hard to maintain the asset or even to ensure the asset operate as it should be during its design and service life.
Just imagine, a cable stayed bridge or an aircraft does not have an operating manual. Would you feel safe to travel on it?
Wednesday, February 3, 2010
The Need For System Analysis
It is necessary to analyze the system from different angles. While satisfying such need, the analysis of the system is the basic necessity for an efficient system design. The need for analysis stems from the following point of view.
System Objective: It is necessary to define the system objective(s). Many a times, it is observed that the systems are historically in operation and have lost their main purpose of achievement of the objectives. The users of the system and the personnel involved are not in a position to define the objective(s). Since you are going to develop a computer based system, it is necessary to redefine or reset the objective(s) as a reference point in the context of the current business requirement.
System Boundaries: It is necessary to establish the system boundaries which would define the scope and the coverage of the system. This helps to sort out and understand the functional boundaries of the system, the department boundaries in the system, and the people involved in the system. It also helps to identify the inputs and the outputs of the various sub-systems covering the entire system.
System Importance: It is necessary to understand the importance of the system in the organization. This would throw more light on its utility and would help the designer to decide the design features of the system. It would be possible then to position the system in relation to the other systems for deciding the design strategy and development.
Nature of The System: The analysis of the system will help the system designer to conclude whether the system is the closed type or open, and a deterministic or probabilistic. Such an understanding of the system is necessary, prior to design the process to ensure the necessary design architecture.
Role of the System as an Interface: The system, many a times, acts as an interface to the other systems. Hence through such an interface, it activates or promotes some changes in the other systems. It is necessary to understand the existing role of the system, as an interface, to safeguard the interests of the other systems. Any modifications or changes made should not affect the functioning or the objective of the other systems.
Participation of Users: The strategic purpose of the analysis of the system is to seek the acceptance of the people to a new development. System analysis process provides a sense of participation to the people. This helps in breaking the resistance to the new development and it also ensure the commitment to the new system.
Understanding of Resource Needs: The analysis of the system helps in defining the resource requirements in terms of hardware and software. Hence, if any additional resources are required, this would mean an investment. The management likes to evaluate the investment form the point of view of return on such investment. If the return on the investment is not attractive, the management may drop the project.
Assessment of Feasibility: The analysis of the system helps to establish the feasibility from different angles. The system should satisfy the technical, economic and operational feasibility.
Assessment of Feasibility: The analysis of the system helps to establish the feasibility from different angles. The system should satisfy the technical, economic and operational feasibility.
Mangement Information System [MIS NOTES]
Question Bank
1. Identify nature of impact of MIS on people, organisation and the management style? Illustrate the positive as well as negative impact.
2. Discuss the external and internal constraint of implementing MIS in an organisation?
3. Manager has leadership role to play in an organisation. MIS provides support to manager in his functional responsibilities. Explain with example?
4. Explain the role of performance standard and “feedback” on it in effective management of business. How can feedback help in management control system?
5. Show the relationship of organisation effectiveness and management effectiveness to MIS?
6. What do you understand by goal displacement? What are the possible situations when displacement occurs?
7. Why does the organisation structure and MIS differ from company to company even though they are in same business and industry?
8. What do you understand by rational decision making? Explain different types of rational decision with examples
9. Why is more time spent in program analysis and problem definition as compared to the time spent on decision analysis?
10. Explain the role of a model in problem solving. Explain process of abstraction used for constructing the model?
11. List out different criteria to be used in decision-making?
12. Explain the support role of MIS in implementing Herbert Simon model. Identify various systems in MIS which contribute in the three phases of the model.
13. Explain with example how MIS helps to change decision making scenario from uncertainty to risk to certainty?
14. Identify systems in MIS that contribute to organisation learning?
15. Explain the following terms:
a. Rational Decision
b. Payoff Analysis
c. ‘What If’ Analysis
d. Sensitivity Analysis
e. Organisational Learning
f. Perfect rationality
16. Can quality of decision making be improved? Explain how it can be improved?
17. What are the different type of Information Systems available ?
18. What are the major information systems and subsystems applicable to a bank?
19. Differentiate between following:
a. Programmed and Non-programmed Decision
b. Structured and Unstructured Information
c. Information and Data
20. Can value of information be improved? Can information have a value which is person independent?
21. Explain the difference between data processing and information processing?
22. Consider a car manufacturing firm. Identify information in the following classes of organisation:
a. Organisational
b. Strategic
c. Planning
d. Control
23. Identify key information and knowledge in following cases:
a. Hospital out patient department(OPD)
b. 5 star hotel
c. Machine shop
24. Explain how knowledge gives competitive advantage to the organisation.
25. What are the different components of a system? Explain.
26. What are the different information system and subsystem in a bank?
27. What are the major classifications of a Decision Maker? Is the procedure of
taking decision similar in all these classes?
28. Discuss Simon’s problem solving model in detail?
29. Discuss the use of Influence Diagram and Decision Tree in detail. Illustrate with examples.
30. Describe the active based typology of Decisions giving example of each class? Discuss the hierarchy of Organizational decision level and discuss the complexity of decision that is to be taken at each level.
31. What is the role of Heuristic in modelling? Discuss the various kind of
biasness which influence a decision.
32. Why is input design important? Can it always be linked to output design?
33. Models are classified as Strategic, tactical or operational. What is the
purpose of such a qualification? Give an example for each.
34. What are the five components of a DBMS ?
35. Discuss objectives of a DBMS?
36. Discuss the three best known approaches to define a DBMS?
37. What are major sources of design information?
38. Identify 10 specific factors that should be considered in forms design?
39. Give three reasons for severe problems n the area of MIS maintenance?
40. Consider any MIS prepare a test specification for the same?
41. Identify some planning problems which can impact working a MIS?
42. Identify different types of System and explain them in detail?
43. What is the difference between Open and Closed decision making systems?
44. Draw logical model and data flow diagram for following systems:
a. Fixed Deposit System
b. Credit card bill processing ..
45. Suggest input validation in following cases:
a. Fixed Deposit System.
b. Credit card bill processing.
c. Order configured by the customer.
46. Why is the purpose of system flow chart? How is it different from DFD?
47. What is data mapping and how it is done?
48. Explain following terms:
a. Data Design
b. Process Design
c. Output Design
49. What are the components of a system? How is the system model improves from simple ‘Input-process-Output’ model to complex control model?
50. Discuss the various kinds of Decision Models in detail giving examples of
each.
1. Identify nature of impact of MIS on people, organisation and the management style? Illustrate the positive as well as negative impact.
2. Discuss the external and internal constraint of implementing MIS in an organisation?
3. Manager has leadership role to play in an organisation. MIS provides support to manager in his functional responsibilities. Explain with example?
4. Explain the role of performance standard and “feedback” on it in effective management of business. How can feedback help in management control system?
5. Show the relationship of organisation effectiveness and management effectiveness to MIS?
6. What do you understand by goal displacement? What are the possible situations when displacement occurs?
7. Why does the organisation structure and MIS differ from company to company even though they are in same business and industry?
8. What do you understand by rational decision making? Explain different types of rational decision with examples
9. Why is more time spent in program analysis and problem definition as compared to the time spent on decision analysis?
10. Explain the role of a model in problem solving. Explain process of abstraction used for constructing the model?
11. List out different criteria to be used in decision-making?
12. Explain the support role of MIS in implementing Herbert Simon model. Identify various systems in MIS which contribute in the three phases of the model.
13. Explain with example how MIS helps to change decision making scenario from uncertainty to risk to certainty?
14. Identify systems in MIS that contribute to organisation learning?
15. Explain the following terms:
a. Rational Decision
b. Payoff Analysis
c. ‘What If’ Analysis
d. Sensitivity Analysis
e. Organisational Learning
f. Perfect rationality
16. Can quality of decision making be improved? Explain how it can be improved?
17. What are the different type of Information Systems available ?
18. What are the major information systems and subsystems applicable to a bank?
19. Differentiate between following:
a. Programmed and Non-programmed Decision
b. Structured and Unstructured Information
c. Information and Data
20. Can value of information be improved? Can information have a value which is person independent?
21. Explain the difference between data processing and information processing?
22. Consider a car manufacturing firm. Identify information in the following classes of organisation:
a. Organisational
b. Strategic
c. Planning
d. Control
23. Identify key information and knowledge in following cases:
a. Hospital out patient department(OPD)
b. 5 star hotel
c. Machine shop
24. Explain how knowledge gives competitive advantage to the organisation.
25. What are the different components of a system? Explain.
26. What are the different information system and subsystem in a bank?
27. What are the major classifications of a Decision Maker? Is the procedure of
taking decision similar in all these classes?
28. Discuss Simon’s problem solving model in detail?
29. Discuss the use of Influence Diagram and Decision Tree in detail. Illustrate with examples.
30. Describe the active based typology of Decisions giving example of each class? Discuss the hierarchy of Organizational decision level and discuss the complexity of decision that is to be taken at each level.
31. What is the role of Heuristic in modelling? Discuss the various kind of
biasness which influence a decision.
32. Why is input design important? Can it always be linked to output design?
33. Models are classified as Strategic, tactical or operational. What is the
purpose of such a qualification? Give an example for each.
34. What are the five components of a DBMS ?
35. Discuss objectives of a DBMS?
36. Discuss the three best known approaches to define a DBMS?
37. What are major sources of design information?
38. Identify 10 specific factors that should be considered in forms design?
39. Give three reasons for severe problems n the area of MIS maintenance?
40. Consider any MIS prepare a test specification for the same?
41. Identify some planning problems which can impact working a MIS?
42. Identify different types of System and explain them in detail?
43. What is the difference between Open and Closed decision making systems?
44. Draw logical model and data flow diagram for following systems:
a. Fixed Deposit System
b. Credit card bill processing ..
45. Suggest input validation in following cases:
a. Fixed Deposit System.
b. Credit card bill processing.
c. Order configured by the customer.
46. Why is the purpose of system flow chart? How is it different from DFD?
47. What is data mapping and how it is done?
48. Explain following terms:
a. Data Design
b. Process Design
c. Output Design
49. What are the components of a system? How is the system model improves from simple ‘Input-process-Output’ model to complex control model?
50. Discuss the various kinds of Decision Models in detail giving examples of
each.
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