MIS Lab File

PRACTICAL FILE

OF

MANAGEMENT INFORMATION

SYSTEM

SUBMITTED TO : -SUBMITTED TO : - SUBMITTED BY:-SUBMITTED BY:-

ER. CHANDAN KUMAR GUPTAER. CHANDAN KUMAR GUPTA DUSHMANTA NATH 81301113016 IT(6th sem)

Department of Information TechnologyIITT College of Engineering

Pojewal, Punjab

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INDEX

S.NO. NAME OF THE EXPERIMENT

DATE

REMARKS

1. Introduction to Management Information System.

2. Introduction to information system IS and its types.

   

3. Study of information parameters.    

4. MIS and its functional subsystems.    

5. Study of conceptual and physical structure of MIS.

   

6. Study of GDSS, user and its characteristics.    

7. Study of ERP and its applications.    

8. Study of ERP marketing and implementation.    

Experiment No. 1

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AIM: Introduction to Management Information System.

Definition: MIS is also preferred Information Processing System, Information and Decision System, organizational Information System or simply Information System which is integrated, user machine system or providing information to operations, management and decision making functions in an organization. The system utilizes computer hardware, software, manual procedures, and models for analysis, planning control and decision making and a database. The fact that it is an integrated system doesn’t mean that it is a single but it means that all parts fit into an overall design.

MIS for strategic policy planning& decision making

MIS for tactical planning andDecision making

MIS for operational planningDecision making & control

Transaction ProcessingInquiry response

Pyramid structure of MIS

MIS has been described as a pyramid structure in which bottom layer consist of information for transaction processing, status inquiries etc.The next level consists of information resources in day to day operation and control. The third level consists of information resources to ate in tactical planning and decision making for management control.

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The top level consists of information resources to support strategic planning and policy making by higher levels of management.Each level of information processing may make use of data provided for lower level but new data may also be introduced.E.g. some of information to support management and decision making is provided by data obtained for transaction process while some may be new data about activities external to the organization.

Computer based user machine system.

A MIS can exist without computers but it is a capability of computer which makes MIS feasible. The question is not whether computer should be used in MIS but the extent to which computers should be used in MIS and how much information should be computerized. The concept of user machine system means some functions are best performed by users while others are best performed by machines. The user of MIS is any person responsible for entering input data, instruction given to system or utilizing the information output of the system. For many problems the user and computer forma combined system with results obtained from a set of interactions between computer and user.

Computer based means that designer of MIS must have a knowledge of computer and of their use in information processing. The user machine means that the system designer should also understand capabilities of human as system components and behavior of users of information system.Information system application should not require user to be computer experts. However users need to be able to specify their information requirement. Some understanding of computer, the nature of information and its use in various management function aids users in this task.

Significance of MIS

MIS have become a vital component of successful business firms and other organizations. They contribute an essential field of study in business administration and management. That’s why business managers must take a subject in information systems. Since you intend to be a manager or business professional it is very important to have a basic understanding of information systems as it is to understand any other functional area in business. The following are the reasons why Information systems are important.

Information system Resources and technologies

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An information system is an organized combination of people, hardware, software communication network and data resources that collects, transfer the information in organization. End users work by using many types of information system. They might include simple manual hardware devices and informal communication channels.

An end user perspective Anyone who uses information system or information it produces is an end user. This usually related to all persons in an organization are distinguished from the smaller number of persons who are information system analysts or professional computer programmers. A manager end user is a manager or professional who personally uses information systems so most managers are managerial end users.An enterprise perspective Information system plays a vital role in business success of an enterprise. Information technology can provide the information. A business needs for efficient operations, effective management and competitive advantage. However if information system don’t properly related to the strategic objectives, business operations or management needs of an enterprise they can seriously damage its success so the proper management of information system is a major challenge for managers. Thus information system functions include following pointsIt consists of a major functional area of business.A major part of resource of an enterprise and its cost of doing business makes a major resource management challenge.It includes any important factor effecting operational efficiency, productivity and customer service and satisfaction.It helps as a major source of information and a support needed to help effective decision making by manager.It acts as vital, dynamic and challenging opportunity for users. A global society perspectiveWe are living in a global info society, with a global economy that is increasingly dependent on the creation, management and distribution of information dependent on creation. So information is the basic resource in today’s society.People in many nations no longer stay with agriculture societies composed of farmers or even industrial societies where a majority of work force consists of factory workers. Instead the work force in many nations consist of farmers in service occupations or knowledge workers that is the persons who spend most of their day in creating, using, and distributing information.

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Knowledge workers include executive, managers and supervisors, professional such as accountants, engineers etc. Most of them are end users who make their efficiency in using information system to create, distribute, manage and use information resources. Thus information system helps them to manage financial, material, energy and other resources involved in their work responsibilities. Information or information system are valuable resource or knowledge workers, their organization and society. A major challenge for global information society is to manage its information resources to benefit all members of society while meeting the strategic goals of organization and nation. This means using information system to find more efficient and responsible base of using information system to find more efficient and responsible base of using the limited supply of material energy and other resources. Since the information systems of so many organizations are interconnected by local, global, telecommunication networks, knowledge workers who can know access and distribute information and manage resources all over the world. For these reasons information system play an increasingly vital role in our global economy.

Experiment No. 2

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Aim: Study of Information system and its types.

Information system:

An information system (IS) can be any organized combination of people, hardware, software, communication networks and data sources that stores and retrieves, transforms and disseminates information in an organization.

An information system or 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 solving business problems such as costing a product, service or a business-wide strategy.

Frame work of Information System:

The useful concept frame work that organize the knowledge presented in this text and outlines what you need to know about IS in figure. It emphasize that you should concentrate your efforts in following five areas of IS knowledge.

(This frame work outlines the major areas of IS)

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1. Foundation Concept:Fundamental behavioral, technical, business, and managerial

concepts about the components and roles of information system.

2. Information Technologies: Major concepts, developments, and management issue in

information technology i.e. hardware, software, networks, data management.

3. Business Application:The major uses of the IS for operations, management and

competitive advantage of a business.

4. Development Processes: Now business professional and information specialist, plan develop

and implement IS to meet business opportunities.

5. Management Challenge:The challenges of effectively and ethically managing information

technology at the end user, enterprise, and global levels of a business.

Types of Information System:Conceptually the applications of IS that are implemented in today’s

business. IS’s can be classified on operations and management support system.

a. Operation Support Systems:IS’s always have been needed to process data generated by and

used in business operation. Such operating support systems produce a variety of information products for internal and external use.

Transaction Processing Systems:

Transaction processing systems (TPS) automate the handling of data about business activities or transactions, which can be thought of as simple, discrete events in the life of an organization. Data about each transaction are captured, transactions are verified and accepted or rejected and validated transactions are stored for later aggregation. Reports may be produced immediately to provide standard summarizations of transactions and transactions may be moved from process to process in order to handle all aspects of the business activity.

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Process Control Systems:

Monitor and control industrial processes.e.g. petroleum refining, power generation etc.

Enterprise collaboration system:

Support team, workgroup, and enterprise communications and collaborations.

e.g. e-mail, chat, and video conferencing groupware systems.

b. Management Support System:

When IS applications focus on providing information and support for effective decision making by managers, they are called management support system.

Management information system

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 solving 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. e.g. Decision Support Systems, Expert systems, and Executive information systems

Decision Support System:

Decision Support Systems (DSS) are a specific class of computerized information systems that supports business and organizational decision-making activities. A properly-designed DSS is an interactive software-based system intended to help decision makers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions.

Executive Information System:

Provide critical information from MIS, DSS, and other resources tailored to the information needs of executives.e.g. systems for easy access to analyses of business performance, action of competitors etc.

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Expert system:

An expert system is software that attempts to reproduce the performance of one or more human experts, most commonly in a specific problem domain, and is a traditional application and/or subfield of artificial intelligence.

Business intelligence:

Business intelligence (BI) refers to skills, technologies, applications and practices used to help a business acquire a better understanding of its commercial context. Business intelligence may also refer to the collected information itself.

BI applications provide historical, current, and predictive views of business operations. Common functions of business intelligence applications are reporting, OLAP, analytics, data mining, business performance management, benchmarks, text mining, and predictive analytics.

Business intelligence often aims to support better business decision-making. Thus a BI system can be called a decision support system (DSS).

Experiment No. 3

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Aim: Study of information parameters (age, quality, and value).

Information: Information is a data that has been processed into a form that is

meaningful to the recipient and is of real or perceived value in current or prospective actions or decisions.

Parameters of Information:The parameters of information are:

1. Quality2. Value3. Age

1. Quality: Quality of information refers to its fitness for use, or its

reliability. Some of the attributes of information, which influence the quality of information, are:

1. Timeliness: means that information must reach the recipients within the prescribed time-frame. For effective decision making, information must reach the decision-maker at the right time.

2. Accuracy: means information is free from mistakes and errors, is clear and accurately reflects the meaning of data on which it is based.

3. Relevance: Information is said to be relevant if it answers specifically for the recipient what, why, where, when, who, and why?

4. Adequacy: means information must be sufficient in quantity, i.e. MIS must provide reports containing information which is required in the deciding processes of decision-making.

5. Completeness: means that the information which is provided to a manager must be complete and should meet all his needs.Incomplete information may result in wrong decisions and thus may prove costly to the organization.

2. Value: The value of information may be theoretically determined by

the value of a change in decision making behavior.Value of information can be determined by two types:

a. Value of information in decision making.b. Value of information other than in decision making.

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a. Value of information in decision making:In decision making theory, the value of information is the value of the change in decision behavior caused by the information less the cost of obtaining the information. New information causes a different decision to be made; the value of new information is the difference in value between the outcome of the old decisions and that of the new decision, less the cost of obtaining the new information.

b. Value of information other than in decision making: Some other reasons for value of information are:

1. Motivation2. Model Building3. Back Grand Building.

Thus, value of information is important for an organization. There is no use of information that has no value.

3. Age of information:Age of information with respect to information contained in

periodic report such as monthly operating report and the statement of financial position at the end of period can be classified as:

1. Age of conditional information.2. Age of operating information

1. Age of conditional information:Condition information is that which pertains to a point in

time such as December 31. For condition information, the minimum age is the processing delay.

e.g. if the processing delay is 5 days, the inventory figure for September 15 will be attempt five days old before it is received on September 20. If inventory reports are issued weekly (i=7), the age of information on hand just prior to receiving a new report is 7+5=12days.

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2. Age of operating information:

Operating information is accumulated over a period of time. The average age of operating information accumulated during an interval is therefore only half the interval. Since it will be d days, after the end of the period until the information is available, the minimum age is d+1/2i.

Here, d= processing time and delays i=information interval

(Age pattern of operating data)

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Experiment No. 4

Aim: MIS and its functional subsystem.

Theory: 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 solving business problems such as costing a product, service or a business-wide strategy.

Definition

An 'MIS' is a planned system of the collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management. According to Philip Kotler "A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision maker.

(Human Resources MIS)

MIS functional subsystems:MIS can be viewed as a federation of a information system one for

each major organizational function here may be a common support system used by more than one subsystems, but each functional system

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may be unique in its procedures, programs, models etc .typical major functional subsystems are:

Major functional Some typical uses Subsystems

1. Marketing sales forecasting ,sales planning, customer and sales analysis

2. Manufacturing production planning and scheduling, cost control analysis

3. Logistic planning and control of purchasing, distribution

4. Finance and Accounting financial analysis, cost analysis ,capital requirements planning income measurement

5. Information processing information system planning cost effectiveness analysis

6. Top management strategic planning, resource allocation.

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Experiment No. 5

Aim: Study of conceptual and physical structure of MIS.

Procedure:

Structure of MIS is a difficult concept to understand because there is no standard or universally accepted framework for describing MIS. Thus it is not simple to answer a question like what does a MIS look like? How can one describe its conceptual and physical structure?

For example, a car may be perceived in a number of different ways; by describing its physical characteristics, i.e. its shape, color, seating capacity, doors, etc. in terms of the component systems such as chassis, engine, ignition system etc. Each of these approaches would provide an understanding to the person about the car.

MIS Structure based on physical components:

Structure of MIS may be understood by looking at the physical components of the information system in an organization. The physical components of an organizational information system may be hardware, software, database, manual procedures and operating persons.

1. Hardware: Hardware refers to the physical data processing

equipment and peripheral devices. For example, CPU, monitor, keyboard, printer, tapes, communication devices etc.

2. Software: Software is a broad term given to the instructions or programs that direct the operation of the hardware. Software could be of two types i.e. system and application software.

3. Database: The database consists of all data utilized by application software. Data is stored in files.

4. Procedures: Formal operating procedures, which are required to operate a system, such as manuals, are also regarded as physical elements.

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5. Operating Personnel: Personnel like computer operators, computer programmers, system analysts, system managers etc., are the operating people of the information systems.

6. Input and Output: Various physical inputs and outputs from the information system, existing in the forms like printout, reports etc.

Structure of MIS based on information system processing functions:

Information system structure can also be understood in terms of its processing functions. The functions of an MIS explain what the system does.

1. To Process Transactions: Information systems process transactions where transaction may be defined as an activity taking place in an organization. For example, making a purchase or a sale or manufacturing a product. It may be within the organization or may be external in nature.

2. To Maintain Master Files: Information systems create and maintain master files in an organization. A master files stores relatively permanent or historical data about organizational entities. For example, data processing to prepare an employee’s salary requires data items for the employee’s basic pay, allowances, deductions, etc.

3. To Produce Reports: Reports are significant products of an information system. Many reports are produced on regular bases which are called scheduled reports.

4. To Process Enquiries: An information system is used to process enquiries. For processing such queries, the information system uses its databases. These may be regular enquiries with a pre-defined format or adhoc enquiries.

5. To Process Interactive Support Applications: The information system contains applications designed to support systems for planning, analysis, and decision-making. Various types of models are used for processing such applications. The

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mode of operation, as the name suggests, is interactive, in which the user responds to questions and requests for data and receives result so as to make change in the input until an optimum solution is found.

(Information System Processing Functions)

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Experiment No. 6

Aim: Study of Group Decision Support System (GDSS), its users and characteristics.Introduction:

Group Decision Support System (GDSS) is an interactive, computer-based system that helps a team of decision-makers solve problems and make choices. GDSS are targeted to supporting groups in analyzing problem situations and in performing group decision-making tasks. A GDSS is a hybrid system that uses an elaborate communications infrastructure and heuristic and quantitative models to support decision-making. A GDSS uses a set of decision makers working together as a group.

Characteristics of GDSS:GDSS has following characteristics;

1. Decision Room:A Decision Room refers to the physical arrangement for

using a Group DSS. In a single room, workstations are made available to participants. The objective in using a Decision Room is to enhance and improve the group's decision-making process.

Characteristics of a Decision Room include:

1) Each participant has a computer workstation.2) A leader (facilitator) coordinates the meeting.3) The room has a display screen that all participants can view.4) Computers are networked and client/server architecture is used.5) Specialized software is available to all participants.

2. Decision Network:Group members are sitting in their respective location and

use their desktops and LAN to interact with others members. In this case GDSS is not transparent.

3. Teleconferencing:The group members are in different cities and they come

together through teleconferencing for the GDSS operation.

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4. Telecommunication:The group members are to different countries means their

name at remote location and they come together through long distance telecommunication network.

GDSS Users:

The ultimate uses of GDSS are decision maker. However they can’t run the system. They have different usage pattern.

1. Subscription Mode:

The decision maker receives reports that are generated automatically that all generally or a regular basis. This is typically mode of usage for management reporting system.

2. Terminal Mode:

Decision maker is the direct uses of system through online access.

3. Check Mode:

The decision maker uses the system directly but offline preparing input in coding form. The primary difference between check mode and terminal mode is technology employed.

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Experiment No. 7

Aim: Study of Enterprise Resource Planning (ERP) and its applications.

Introduction:

ERP stands for Enterprise Resource Planning . ERP is a way to integrate the data and processes of an organization into one single system. Usually ERP systems will have many components including hardware and software, in order to achieve integration, most ERP systems use a unified database to store data for various functions found throughout the organization.

The term ERP originally referred to how a large organization planned to use organizational wide resources. In the past, ERP systems were used in larger more industrial types of companies. However, the use of ERP has changed and is extremely comprehensive, today the term can refer to any type of company, no matter what industry it falls in. In fact, ERP systems are used in almost any type of organization - large or small.

Integration is Key to ERP:

Integration is an extremely important part to ERP's. ERP's main goal is to integrate data and processes from all areas of an organization and unify it for easy access and work flow. ERP's usually accomplish integration by creating one single database that employs multiple software modules providing different areas of an organization with various business functions.

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Although the ideal configuration would be one ERP system for an entire organization, many larger organizations usually create and ERP system and then build upon the system and external interface for other stand alone systems which might be more powerful and perform better in fulfilling an organizations needs. Usually this type of configuration can be time consuming and does require lots of labor hours.

Applications:

There are various areas normally covered under the concept of ERP are:

1. Financials: Financial accounting, management enterprise control and asset management.

2. Logistics: Production planning, materials management, plant maintenance, quality management, roles and distribution.

3. Human Resources: Personnel management, training and development, skill inventory.

4. Work Flow: It integrates the entire organization with flexible assignment of tasks and responsibilities to locations, positions, jobs, groups or individuals. It integrates every employee in the value chain by providing a versatile inbox at number’s workplace, which can be configured individually.

Advantages of ERP Systems:

There are many advantages of implementing an EPR system; here are a few of them:

A totally integrated system. The ability to streamline different processes and workflows. The ability to easily share data across various departments in an

organization. Improved efficiency and productivity levels. Better tracking and forecasting. Lower costs.

Disadvantages of ERP Systems:

Customization in many situations is limited. The need to reengineer business processes. ERP systems can be cost prohibitive to install and run. Technical support can be shoddy. ERP's may be too rigid for specific organizations that are either

new or want to move in a new direction in the near future.

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Experiment No. 8

Aim: Study of ERP Marketing and implementation.

Procedure:

Early only global organization, MNC, and large corporation with multicounty operations considered that ERP solutions were necessary for them. But even a small company if it is looking at the global market, has to implement ERP solution.

The cost of implementation of ERP is gradually coming down and now even medium and small companies go for it. The experiences in the other countries show that the productivity levels have gone up three fold with implementation of ERP solutions.

Implementation of an ERP System:

Implementing an ERP system is not an easy task to achieve, in fact it takes lots of planning, consulting and in most cases 3 months to 1 year +. ERP systems are extraordinary wide in scope and for many larger organizations can be extremely complex. Implementing an ERP system will ultimately require significant changes on staff and work practices. While it may seem reasonable for an in house IT staff to head the project, it is widely advised that ERP implementation consultants be used, due to the fact that consultants are usually more cost effective and are specifically trained in implementing these types of systems.

One of the most important traits that an organization should have when implementing an ERP system is ownership of the project. Because so many changes take place and its broad effect on almost every individual in the organization, it is important to make sure that everyone is on board and will help make the project and using the new ERP system a success.

Usually organizations use ERP vendors or consulting companies to implement their customized ERP system. There are three types of professional services that are provided when implementing an ERP system, they are Consulting, Customization and Support.

Consulting Services- usually consulting services are responsible for the initial stages of ERP implementation, they help an organization go live with their new system, with product training, workflow, improve ERP's use in the specific organization, etc.

Customization Services- Customization services work by extending the use of the new ERP system or changing its use by creating customized interfaces and/or underlying application code. While ERP systems are

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made for many core routines, there are still some needs that need to be built or customized for an organization.

Support Services- Support services include both support and maintenance of ERP systems. For instance, trouble shooting and assistance with ERP issues.

1. Formation of implementation team.

2. Preparation of implementation plan.

3. Mapping of business process on to the package.

4. Gap analysis.

5. Uses training.