Management Information Systems
Overview
MIS Inputs
MIS - Outputs
Competitive Advantage
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MIS in Perspective
Without these reports, we’d
be as dumb as we look.
We are the bad guys
from Bad Guy’s Auto.
Primary Purpose of an MIS:
• To provide managers with information
(reports) for effective decision making and
feedback on daily operations.
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MIS Outputs (Reports)
We use these reports:
•scheduled reports,
•key-indicator reports,
•demand reports,
•exception reports, and
•drill-down reports.
I get turned on by
demand reports.
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MIS Scheduled Reports
Just what is a
scheduled report
for us at Bad Guy’s
Auto?
For us, a scheduled
report might show
how many cars were
return last week
because of serious
defects.
Scheduled Report:
• Reports which are produced on a schedule:
• Daily, weekly, monthly, quarterly,
semiannually, and annually.
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MIS Scheduled Report
Scheduled Report
Weekly Defect Report
Week Ending November 22, 2020
Sold
216
Condition
Returns Minor Serious
Status
129
19
110 Normal( >50%)
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MIS Key-indicator Report
What is a keyindicator report
for us at Bad Guy’s
Auto?
For us, a key-indicator
report would be the
number of defective cars
we sold at our daily
auction.
Key-indicator Report:
• A special type of scheduled report.
• Daily reports which summarize the previous
day’s critical activities.
• Usually linked to critical success factors.
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MIS Key-indicator Report
Key-indicator Report
Daily Auction Report
Week Ending November 22, 2020
Qty
24
Amount As Is
$34,023 23
Status
Normal
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MIS Demand Reports
Tell us how we
use demand reports.
Last week I demanded
a report showing the
revenues for salvaged
cars over the last 10
years.
Demand Report:
• A non-scheduled report needed at the
moment by management.
• A report produced on demand.
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MIS Demand Reports
Demand Report
Salvage Revenues (10 yrs.) Report
Week Ending November 22, 2020
Cars Lost to Salvage
Quanty Amount
24,524 $341,023
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MIS Exception Reports
If we have fewer than
50 percent returns
because of defects,
an exception report
is generated.
Tell us how we
use exception
reports.
Exception Report:
• A report automatically generated when
an unusual event takes place, which
usually requires management action.
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MIS Exception Reports
Yes Sir, I saw the exception
report. Could it be that we
are paying too much for our
cars?
Exception Defect Report
Week Ending November 27, 2020
Sold
126
Condition
Returns Minor Serious
Status
5
4
1
Abnormal
( <50%)
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MIS Drill-Down Reports
Let’s use drill down
reports and find out
why earnings are up
so much.
I can’t understand it. Our
earnings are up 25% for
the quarter.
Drill Down Reports:
• These reports provide increasingly
detailed information about a situation.
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MIS Drill-Down Reports
Earnings by Quarter (Millions)
1st Level
2nd Qtr.
2020
Actual
$12.5
1st Qtr.
2020
$10.8
2nd Level
Forecast
$10.0
$10.7
Variance
25.0%
0.9%
Sales and Expenses (Millions)
2nd. Qtr.
Gross Sales
Actual
$112.5
Forecast
$100.0
Variance
12.5%
Expenses
$100.0
$90.0
11.1%
$12.5
$10.0
25.0%
Profit
3rd Level
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MIS Drill-Down Reports
3rd Level
Sales by Salesperson (Millions)
Adams, Tom
Actual
5.5
Forecast
$5.2
Variance
5.7%
Jones, Paul
$6.2
$6.0
3.3%
Kim, Jim
$2.3
$2.5
-6.7%
Robbins, Julia
$15.0
$1.5
900.0%
Etc.
…….
…..
……..%
Julia Robbins
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MIS Drill-Down Reports
Boys, as you can see.
I’ve got what it takes.
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MIS Inputs
Our inputs are internal data
and external data.
Inputs to an MIS:
What are the inputs
to our MIS.
• Internal Data(Always used)
• TPS - Transaction Processing System
• External Data (Could be used)
• Customers, suppliers, competitors, marketplace,
etc.
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The End of the Bad Guy’s
Sir, five people from the State’s
Attorney’s Office are here with
warrants for your arrests. They’re
accusing you guys of consumer
fraud.
Bye, bye bad guy’s.
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Characteristics of an MIS
1st Characteristic
Basic Reports
Drill Down Reports
Exception Reports
Demand Reports
Scheduled Reports
Standardized and
Fixed Report
Formats
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Characteristics of an MIS
2nd Characteristic
Use Internal Data Stored in the Computer System
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Characteristics of an MIS
3rd Characteristic
MIS systems are developed & implemented by
IS personnel, not users. Users help in the
design.
Systems Analyst
Programmer
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Characteristics of an MIS
4th Characteristic
MIS systems require formal requests from users.
Oh please accept
this written request.
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MIS for a Competitive Advantage
American’s Sabre System
Sabre
American
Flights
Sabre System:
•American’s flights came
up first.
•Gave American too much
advantage.
Travel Agent
•Legal problems.
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MIS for a Competitive Advantage
American Hospital Supply’s System
Welcome
American
Hospital
Supply
Hospital
purchasing
agent
American Hospital Supply
System (AHS):
•Online order entry
system.
•AHS now dominates
hospital supply market.
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Functional Organization of MIS
Non-integrated MIS Sub-systems
MIS
Business
transactions
R&D
MIS
Transaction
Data
TPS
HR
MIS
Marketing
MIS
Financial
MIS
External
Data
Basic Reports
Drill Down Reports
Exception Reports
Demand Reports
Scheduled Reports
Key-indicator
Reports
Manufacturing
MIS
Other ...
MIS
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Functional Organization of MIS
Shared reports
Strategic reports
Tactical reports
Operational
reports
Shared reports
Strategic reports
Tactical reports
Operational
reports
Shared reports
Strategic reports
Tactical reports
Operational
reports
Integration by Common Database
Manufacturing
MIS systems
and databases
Database
Marketing MIS
systems and
databases
Other MIS
systems and
databases
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Manufacturing MIS (Inputs)
Inputs to the Manufacturing MIS:
(1) Strategic Plan:
• Quality goals
• Production goals
• Customer Service goals
• Constraints
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Manufacturing MIS (Inputs)
Inputs to the Manufacturing MIS:
(2) The TPS: Receiving and Inspecting Data
• Receiving Department.
• Inspects, accepts, and delivers to depts.
• Quantity, quality, and arrival of raw materials.
• Reports used to monitor suppliers.
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Manufacturing MIS (Inputs)
Inputs to the Manufacturing MIS:
(3) The TPS: Inventory data.
• Quantity on hand, use of raw materials, work
in process, and finished goods.
• Reports used to reorder, identify shortages,
surpluses, poor quality, and for tracking.
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Manufacturing MIS (Inputs)
Inputs to the Manufacturing MIS:
(4) The TPS: Personnel data.
• Labor data using salaries, time cards and
industrial data collection (time study info)
devices.
• Reports used to estimate labor costs and
develop time schedules.
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Manufacturing MIS (Inputs)
Inputs to the Manufacturing MIS:
(5) The TPS: Order Processing.
• Placing, canceling, and making adjustments
to orders..
• Reports used for production scheduling,
labor and raw material requirements.
• Could be hooked to EDI.
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Manufacturing MIS (Inputs)
Inputs to the Manufacturing MIS:
(6) External sources:
• New manufacturing and design techniques
collected from outside companies, journals,
seminars.
• Prediction of labor and material costs from
labor supply and inflation data.
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Manufacturing MIS (Subsystems)
Manufacturing MIS subsystems:
(1) Design and Engineering
• CAD - Computer-Assisted Design
• Aids in the design of new products.
• Aids in updating existing products.
• Used to analyze problems with existing
products.
CAD
AutoCAD
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Manufacturing MIS (Subsystems)
Manufacturing MIS subsystems:
(2) CAM (Computer Assisted
Manufacturing).
• Computers that directly control
production equipment:
• Robots.
• Drilling Machines.
• Welding Machines.
• Assembly Lines.
• Have self-diagnostic routines.
• Usually easy to program.
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Manufacturing MIS (Subsystems)
Manufacturing MIS subsystems:
(3) Master Production Scheduling
• Provides a detailed plan for every item to be
manufactured.
• Indicates the quantity to be produce by time
period, such as, the disks below.
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Manufacturing MIS (Subsystems)
Manufacturing MIS subsystems:
(4) Inventory control
• Automatic reordering, forecasting,
shop reports and documents.
• EOQ- Economic Order Quantity.
• ROP- ReOrder Point.
• MRP- Material Requirements and
Planning.
More
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Manufacturing MIS (Subsystems)
Manufacturing MIS subsystems:
(4) Inventory control
• MRPII - Manufacturing Resource
Planning, which focuses on three
questions for finished products:
• What does the customer need?
• Demand forecasting.
• What do we have in inventory?
• Inventory control.
• What should we make?
• Production planning.
More
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Manufacturing MIS (Subsystems)
Manufacturing MIS subsystems:
(4) Inventory control
• MRPII - Manufacturing Resource
Planning, which focuses on three
questions for unfinished products:
• What materials are needed?
• Bill of materials.
• What do we have in inventory?
• Inventory control.
• What do we have to get?
• Supply planning.
More
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Lucent Technology’s Inventory
Control system
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Manufacturing MIS (Subsystems)
Manufacturing MIS subsystems:
(4) Inventory control
• JIT - Just-In-Time
• Materials and supplies are
delivered JUST in time for
use.
• Auto industry approaches
zero inventory.
• Has been very successful.
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Manufacturing MIS (Subsystems)
Manufacturing MIS subsystems:
(5) CIM (Computer Integrated Manufacturing).
• CIM’s goal is to tie all aspects of
production together.
CIM
Harley
Design
Manufacturing
Shipping
Order Processing
Inspection
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Manufacturing MIS (Subsystems)
Manufacturing MIS subsystems:
(5) CIM (Computer Integrated Manufacturing).
• CIM’s goal is to tie all aspects of
production together.
Play Nucor Steel video-1. (11 minutes)
Play Nucor Steel video-2. (5 minutes)
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