Management information system

ABSTRACT

This project is made with the objective of studying the MIS of CDL

FOODS .The project is depicting the importance of MIS by studying

their department like Accounts/Finance, HRM, Milk Procurement

Department, IS Department, Production Department, Purchase

Department, etc. The managers of all the Departments prepare reports

and ultimately send to top level of management for timely and efficient

decision making. Also it shows the way of communicating information

(CBIS or Non CBIS) from formal or informal source. The project also

critically shows the MIS of CDL FOODS and recommendations for

further improvement.

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Management information system

ACKNOWLEDGEMENT

We bow our heads before “ALMIGHTY ALLAH” in gratitude, which

blessed us with sound health, talented teachers, sympathetic Friends
and sufficient opportunity to complete our esteemed Project on
MANAGEMENT INFORMATION SYSTEM.

It is our privilege and honor to express our deep gratitude and in

calculating thanks to PROF. DR. LIAQAT ALI Who gave us an
opportunity to benefit from their immense knowledge and experience
without which the work described in this project would not have been
possible.

We feel pleasure in acknowledging with profound sense of

indebtedness, the cooperation and general help of our class fellows
during preparation of this project. We submit our earnest thanks to
our affectionate parents for their moral boosting, financial and spiritual
support during our studies.

MUHAMMAD WAJID KHAN.

MUHAMMAD FAHIM NIAZ.
ABDUL WAHID.

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Management information system

Contents
S.No. Particulars Page
No.
1. Abstract 1
2. Acknowledgement 2
3. Dedication 3
4. Introduction Of Report 6
5. Reason For Selection 7
6. CDL Foods 7
7. History of the CDL 10
8. Products Of CDL Foods 11
9. Purpose Of Company 12
10. Structure Of Organization 13
11. Organization Chart Of Information System Department 14
12. Flow Chart Of MIS In Finance Department Way Of 15
Communication Information
13. Current MIS Of CDL Foods 16
14. Flow Of Information In Various Department 17
15. Application Of Management Information System In Accounts And 18
Finance Department
16. Human Resource Department And MIS 18
17. Purchase And Sales Department And MIS 19
18. Production Department And MIS 19
19. Milk And Procurement Department And MIS 19
20. Information System Department And MIS 20
21. Information Used In CDL Foods 21
22. Decision Taken By The Management On The Information Received 21
Through Formal Source Of Information
23. Flow Chart of Formal Source Information 22
24. Decision Taken By The Management On The Information Received 23
Through Informal Source Of Information
25. Flow Chart Of Informal Source Information 24
26. Critical Appraisal Of Current MIS and CDL Foods 25
27 The Decision May Support Current MIS Of Organization 25
28 Deficiencies 26
29 Recommendations 26
30 Conclusions 27
31 Reference 28

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Management information system

INTRODUCTION TO THE REPORT

This report presents the investigated M.I.S of CDL Foods. In the
modern age of competition, information and information resources
must be managed efficiently and effectively. The rapid change in
information technology and Internet
demonstrates that information systems and information technologies
are essential ingredients for the success of today’s sophisticate
business enterprise. Information is a valuable powerful asset; infect
“life blood of a business”.

Now every enterprise is emphasizing on its efforts to improve

1-Managerial Decision Making
2-Gain competitive Edge

Through Management Information System, information is gathered

through internal sources as well as from external sources. On the basis
of above valuable information, reports are prepared and display to
management on
1-Demand
2-Periodically, according to the set schedule
3-At the time of emergency

With the globalization of markets, and the increased quantity

and diversity of competition that occur as a consequence, the
traditional view of computer systems as a “ back room ’’supporting

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function is no longer viable in companies wishing to survive and

prosper.

M.I.S provides managerial end users with information products that

support much of their day-to-day decision making needs. M.I.S
provides a variety of reports and displays to management.

The content of there information product are specified in

advance by managers so that they contain information that managers
need. M.I.S retrieves information about internal operations from
databases that have been updated by transaction processing systems.
They also obtain data about the business environment from external
sources.
This report displays the MIS of CDL FOODS that facilitates its
production operations and decision-making. MIS of CDL FOODS
includes both computer based and non computer based aspects and
providing assistance in areas like Accounting, Finance, HRM,
Marketing, Procurement Department MIS of CDL FOODS. Also it
removes the geographical constraint by using highly sophisticated
technology that links plant with head office.

Therefore, the scope of MIS cannot be overlooked by CDL

FOODS. And it is disseminating information to concerned authority for
decision making after filtering it.

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Reason for Selection

Following are the reasons for selection this organization.

♥ The management is so much cooperative in providing

the information about the project
♥ The organization has a comprehensive MIS for getting
the valuable information
♥ Easily accessible
♥ Because of reference we select this organization
♥ Fast growing organization in foods sector
♥ Whole system of the CDL Foods based on CBIS

CDL FOODS
CDL Foods Limited (formerly Chaudhry Dairies Limited) is a fast
growing food products company. Having doubled its turnover in the
last four years, the company has a turnover of more than Rs.4 billion
presently. The company also operates as a franchise of Candia Cedilac
of France. CDL has a state of the art milk processing facility situated at
62-KM Multan road, Near Bhai Pheru, and has a team of 400
exceptional individuals to support its operations. The head office of
CDL is located in the evergreen city of Lahore at 135-Ferozepur Road.
CDL is producing a number of food products both for consumers and
industrial users.

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The main brands of CDL are as following:

CDL is the first food company and so far the only dairy company in
Pakistan to get ISO 9002 Certification - a Quality Management
System. While adhering to this Quality Management System, the
company is committed to strict quality standards in all its operations -
from the collection of milk to the provision of hygienically processed
nutritious products to its customers. The company follows the
philosophy of "delighting the customers". The company treats them as
partners and keep channel of communication open with them. The
company has succeeded in this by continuously improving the quality
of its products and by satisfying the needs of its customers. The
company believes in creating and sustaining an environment, which
encourages learning and empowerment and these in turn help
strengthen the quality culture across the business. Company's Mission:

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· providing nutritious and hygienically processed food product to our

customers. · Enhancing our reputation for quality in all our operations.

· Promoting mutual trust with customers, suppliers, employees and

Shareholders. · providing a healthy and safe environment to our
community.

CDL Foods a trained pharmacist began experimenting with various

combinations of cow's milk, wheat flour and sugar in an attempt to
develop an alternative source of infant nutrition for mothers who were
unable to breast feed. His ultimate goal was to help combat the
problem of infant mortality due to malnutrition. CDL’s first customer
was a premature infant who could tolerate neither his mother's milk
nor any of the conventional substitutes, and had been given up for lost
by local physicians. People quickly recognized the value of the new
product, after CDL new formula saved the child's life and within a few
years.

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Management information system

History of the organization

CDL was established in 1987. It is situated on the 135, Ferozepur

Road Lahore. CDL Foods is one of the fastest growing packaged foods
companies in Pakistan with an annual turnover of Rs. 5 Billion. When
the Mill was established the management information system of
organization was completely non-computer based. Due to changes in
the technology & to achieve the efficiency and effectiveness in the
work, the company introduces the computer-based management
information system in some departments of the organization. Due to
consistently superior performance, it has achieved undisputed
leadership in the liquid packaged milk category with a market share of
over 56%. It has a very strong brand portfolio consisting of leading
national/international brands; Haleeb, Candia, dairy Queen, N’rish,
Skimz and Tropico.

It has a highly professional management team with a progressive

operating style. It can lay claim to be one of the very few Pakistani
organizations, which are truly following the model adopted by globally
successfully corporations, with clearly defined roles for shareholders
and the management team.

CDL is well known for its “first mover” initiatives in product and
packaging innovations. It also has one of the largest nation-wide
distribution networks delivering high quality products, even in the

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remote areas of Pakistan. It has tapped opportunities in export

marke5s including Korea, Hong Kong, Afghanistan and Bangladesh.

In order to provide best quality products to its consumes, CDL has a

well developed supply chain infra structure. It has heavily invested in
a vast network of company operated milk collection centers

Products of CDL Foods

 Candia Milk
 Haleeb Milk
 Dairy Queen Standardized Milk
 Tropico Juices
 Haleeb Lassi Drink
 Asli Desi Ghee
 Haleeb Skimmed Milk Powder
 Candia Skimz
 Skimz-Skimmed Milk Powder
 Haleeb Yogurt

Purpose of the company

Since its foundation it has

• Built consumers' trust through the quality of its products;

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• Providing nutrition’s and hygienically processed food products to

customers.

• Respected the social, political and cultural tradition.

• Taken a long-term approach to strategic decision-making, which

recognizes the interests of our shareholders, consumers,

• Employees, business partners as well as those of all the national

economies in which we operate.

• Believe in people, rather than systems

• Committed to creating value for our shareholders, but we will
not favor short-term profits at the expense of long-term
business development
• As decentralized as our basic policy and strategy decisions will
allow
• Committed to continuous improvement rather than dramatic,
one-off changes
• Above all, we are pragmatic and not dogmatic

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Chairman

Structure of Organization
Board of Directors

Managing Director

General Manager

HRM

Accounting/
Finance Milk
Procurement
Deptt.

Marketing
Deptt.

Purchase Deptt.

MIS Deptt.

Sales Deptt.

Production Deptt.
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Quality
Analysis
Management information system

ORGANIZATIONAL CHART of
INFORMATION SYSTEM
DEPARTMENT

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GENERAL MANAGER

DEPUTY MANAGER

ASSISTANT MANAGER

OFFICERS

SUPERVISORS

PROGRAMER /ANALYST

SYSTEM SUPPORT MANAGER

FLOW CHART OF MIS IN FINANCE

DEPARTMENT

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 Management information system

Information
Systems In
Finance

Cash Investment Capital Financial

Management Management Budgeting Planning

Manage Evaluate Forecast

Forecast And Financial
Short Term Risk/Return
Manage Cash Performance
And Other Of Capital
Position And Financing
Securities Expenditures
Needs

Ways Of Communicating Information

 Reports prepared by different departments

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Management information system

 Meeting organized daily, monthly, as well as when

needed by chairman and Managing Director.
 E-mail, websites (internet sources), data storage
tools
 Telephone, Fax, intra net used by the organization
 Wide area network (WAN) is used as a
communication between different departments and is
possible through client server system

CURRENT MIS OF CDL FOODS

The present scenario of this competitive world shows that to
survive, one must be well versed in every aspect of life. The same
phenomenon is applied to the business world.
To survive in the modern age, the business world must adopt
such kind of practices, which fulfill the modern requirement of the age
and MIS is providing a great service in this respect. CDL FOODS is the
well-reputed organization of Pakistan and also in the world, realizes
the Importance of MIS.
CDL FOODS has a well-managed MIS department. Company is
using following soft wares (Microsoft, Netscape, Oracle, SAP, mIRC,
ICQ) and Hardware (Intel, AMD, Philips, Sony, Panasonic) and
Downloads like Download.com, Shareware.com and Tucows and News
like (ZD Net, Byte Magazine, Win Mag) to make its MIS effective and
more efficient.

Flow Of Information In Various Departments

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Decision Making

Chairman

Board of Directors Reports:

Analysis Report
Exceptional Report
Plan of Action Report

Managing Director

Gen. Manager of Departments

Managers

Assistant Managers

 Flow of information is from low level to top level of the

management
 At each level every manager has given some power to
make decision up to some extent
Specifically by having MIS department they are now achieving a
competitive edge by having Information from all the departments. MIS
is prevailing in all the departments of CDL FOODS. Which helps to
communicate information from one department to another?

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Management information system

Application Of Management Information

System In Accounts And Finance
Department
In CDL Foods the accounting department is totally computer
based termed as Accounting Information System. The accounting
information system is based on the double entry bookkeeping concept,
which is hundreds of years old, and other, more recent accounting
concepts such as responsibility accounting and activity based costing.
Computer based accounting systems record and reports the flow of
funds in CDL Foods organization is on a historical basis and produces
important financial statements such as balance sheets and projected
financial statements and financial budgets. Financial performance of
CDL Foods is measured against such forecasts by other analytical
accounting reports.
The major function of this department is to handle all accounts
activities such as the daily transactions, checking of Accounts
preparing ledger & balance sheets through Transaction Processing
System (TPS). All these functions show a true & fair picture of the
financial position of the organization for the Finance Department to
make the forecast of future conditions such as financial budget. Apart
from the above the Finance Manager of the same department will see
cash flow statement prepared by Accounts manager amount of
expenditures and budget require to achieve the organization goals &
projects. All the above Information is analyzed. In the form of Daily,
or Monthly Report, Half yearly and Yearly by General Manager of the
concerned department who if needed will submit the report to the

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Managing Director for effective decision-making. In this department

all the activities are done by CBIS.

Human Resource Department and MIS

Financial
Human resource is concerned as a valuable asset of the reporting

organization. CDL FOODS is giving a great consideration on this

department. They are providing a very healthy environment for their
employees. By using MIS in this department they have provided online
General Ledger
facility to their employees as well as database management through
processing and
which they have great and speedy access to the data related toreporting
the system
employees. The data includes the history, qualification, incentives,
payroll, system; Advances etc. With the help of MIS, CDL FOODS is
able to recruit and retain the employees which is the basic of HRM.CDL
Payroll
FOODS recently introduced a SYSTEM REVIEW TEAM (SRT) containing transaction
processing
three to four members. Their basic function is to receive information in
system
the form of request, recommendations of the employees. This team
will then review, analyze, check the situation and then form the report
for the GM, which if needed will submit it to the higher authority for
effective decision making. Higher authorities for effective decision
making to raise the morale of employees consider legal and social
issues.

Purchase And Sales Department & Mis

Daily, Weekly Report of Purchase Department prepared by the

concerned manager is a clear reflection of the performance. They have
fully automated system. They have direct link with the Sales
Department.

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Management information system

Report is prepared on the basis of purchase requisition, purchase

order, issue note, goods received note, Bin cards. Above requisites will
provide them a clear picture of availability of inventory and the
average price, costing and payment. These reports are submitted to

manager for analysis, which at last takes necessary decisions. IS

department of CDL FOODS has developed a program for future
effective working of department. Company maintains and records of
changes in inventory level in the computers for quick access of
information available to them for decision-making.

Production Department & Mis

Information gathered for effective decision-making can be seen
by the manufacturing department of company with the help of
Production Report prepared by the manager of Production
Department. Which is prepared on daily, weekly, monthly, half yearly
and yearly basis this report includes all the activities relating with the
planning and control of production process? A computer is integrating
all the activities and supports all the process. These reports will also
show the deviation from the set standard, in quality and quantity.
Production Schedule on daily basis provides a vivid picture of the
performance of Production Department. This situation will be analyzed;
check and action plan will be made (in the form of report) for
necessary decision to create flexible, agile, manufacturing process that
effectively produces products of high quality. CDL FOODS also organize
a SALES AND PRODUCTION PLANNING MEETING in which sales and
production reports are submitted by the managers of the departments
to top management for effective decision making and planning.

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Milk & Procurement Department (MPD) and

MIS

This is perhaps the most critical department of the CDL FOODS

Foods Ltd and requires great attention for its operation. This
department focuses on the procurement of milk as a core raw

material, which is used in different products. This department maintain

standard of milk, which they get by checking the percentage of fats,
and applying, SNF (solid non fat) approach in this way, this
department contributes to CDL FOODS to achieve quality product.
By using MIS, this department is able to make payment to their
suppliers in proper time
Because before that their was no data base system for the
suppliers, distributors, and the percentage given to them was recorded
in register which took a lot of time for timely decision making.

Marketing Department (Research) and MIS

Marketing Department of CDL FOODS Ltd is playing an important
role by performing research for them. They have internal as well as
external sources for marketing. Basically, they depend upon the
information from the external sources and FAST information and
technology institute is rendering reliable services for them. the
representatives of FAST checks the demand of the customer,
consumers and give CDL FOODS a reliable picture of their market
share against their competitors so that they can take proper actions.
This information is transmitted to the marketing manager which is

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then ultimately in the form of Research Report is submitted to the

top level for effective decision-making. Apart from that management
can prepare Sales Promotion Strategies.

Information System Department And Mis

CDL FOODS has an energetic IS department and providing

assistance to integrate the rest of departments. This department has
developed software’s for the organization such as;

 Data base
 Visual basic
 Fox pro
 Linux
 Unix

Database is being separately used for plant and head office and
is updated for time to time. On the needs and requirements of every
department, they develop software. Apart form above they have GFFS
(Grand father, father’s son) software, which is serving as storage tool.
It includes tapes in which data relating to important issues is stored as
back up and is submitted on Daily basis to General Manager
Information System
Who on the basis of these can make effective decision-making? Apart
from above they have developed

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 Client Server system

 A comprehensive website

Also they have forecasted the future needs and are working on
enterprise resources planning software and make the required changes
with the passage of time and also upgraded their website.

Information Used In CDL Foods

MIS of CDL FOODS incorporate the following features.

• Formal source of information

• Informal source of information

Decision Taken By The Management On The

Information Received Through Formal
Source Of Information

CDL FOODS is collecting information from formal as well as from

informal source. That information facilitating the management for
effective decision-making.
The GM of HR department observes that when the employees at
the plant on Bhai Pharu. The cost increases in the shape of high bill of
telephone because it results in trunk call of Lahore.GM analyzed all
this, and prepare a report for information system manager to prepare
a system which can reduce the high cost due to trunk calls.
Information System Manager analyzed it, and makes decision that

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they should have a Fax Server System, which will eliminate the call of
Lahore.

Human Resource Department

Flow Chart of Formal Source Information

Seek Information

High Communication Cost High Telephone bill

GM Analyze The Situation

Check Information

Prepare Report

Deliver to MD

Review the Report

Decision-Making
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Fax Server System

Management information system

Decision Taken By The Management On The

Information Received Through Informal
Source Of Information

CDL FOODS is also taking the benefit by using the

information from informal source i.e. from the source which is not the
part of the system of organization.
Through media, the organization comes to know that the
prices of raw material will be increased due to imposition of Govt.
taxes. It will enhance the cost of finished products. . This is the
information that is generated through informal ways. On the basis of
this information, management has to decide to make changes in their
price policy so management has taken the decision on the basis of
informal source of information.

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Management information system

FLOW CHART

Govt. Tax Policies Results

Increase in Taxes

High Production Costs

Published Sources

Newspaper Periodicals Electronic Media

Television Radio

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Management information system

Information
(Received by)

Concerned Authority

Decision-Making

Readjustment of Price Policy

Critical Appraisal Of Current MIS Of

CDL Foods

CDL FOODS is a worldwide, well-known and well reputed

organization. The organization has adopted computer based
information system (CBIS) is old. The organization has achieved
competitive edge due to adopting CBIS. By using the current MIS they
have remove many hindrances just like they have very big hindrances
that they don’t have a immediate contact with the plants and head
office, they face some hindrances about the employees matter they
were unable to understand the employees matter, requirements, but
since they have adopted the MIS they are using to remove the
hindrances with the help of data base information system. Now they
have a big network in Pakistan. They are using various type of soft
wares and networks i.e. LAN, Intranet, WAN and Internet.
Though their MIS has resulted in the connectivity of head office
and plants. IS also resulted in increasing revenues both in domestic
and foreign markets. The organization is adopting the rapid changes in

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the field of technology. They have not to face any resistance from
employees because they adopt new soft wares after giving train to
employees. It means the organization has friendly software user
environment for introduction of new software. The organization has
highly trained expertise for development of new soft wares.
The major drawbacks of MIS of CDL Foods are that they are not
providing online shopping facilities to consumers and retailers.

The Decision May Support Current

MIS of Organization

The HR manager says that the data which provides by IS is in

raw form and we have to finalized it. I think that if this should be
provided in final form then we make better and in time decisions.

Deficiencies in current MIS of CDL

FOODS
The head office of CDL FOODS is in Lahore while plant is at Bhai
Pheru. So to interact effectively, the organizations have no facility of
videoconferencing. The mean of transfer of information among head
office and plants is tele fax and telephone.
To enhance the performance they should have an integrated
system like they say that they have to see the resistance due to this
software as well as to launch as effective training programs.

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Management information system

Geographical constraint results in the additional cost in the shape of

fax bill.
Though in the plant, they have an open system, but they don’t
encourage interaction with in the premises of the head office.
In some departments the reports are manually prepared; they
are not entirely computer based. It is not beneficial for the effective
decision making because it is time-consuming process.
The organization is not providing online facilities to the
customers, which is the great requirement of the day.

Recommendations For The

Improvement In MIS
Winston Churchill says:

“To prosper change is necessary but to be perfect, continuous change

is necessary.” therefore following recommendations are to be
considered by CDL FOODS for their effective working.
The organization should such easy accessible software to get
more competitive advantages over other organizations in Pakistan
(just like Toyota got a competitive edge by the following this
technique).
Reduce wastage of time but also provide a clear feedback of the
whole organization.
The organization must introduce online terminals for the
customers to receive their purchasing orders and complaints about the
products.

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They should lessen the geographical constraint but adopting fax

server system, which will eliminate the cost of trunk call of employees
contacting from plants.
The organization should introduced video conferencing facilities
among plants and head offices situated in different cities for effective
decision-making.

Conclusions
After studying the MIS of the CDL FOODS we conclude that CDL
Foods has an effective management information system that provides
a framework for the control and efficient utilization of organization
resources to achieve business objectives. Due to this effective MIS the
organization has competitive edge over other organizations in
Pakistan.
We also conclude that there are some deficiencies in the management
information system of the Enterprise and we had given some
recommendations to improve the quality and to save the time. If the
company adopts the recommendations, which are given up, the
organization can increase the efficiency and effectiveness of the work.
It can also increase its profits due to decreases in the cost and time
spent on the delivery and reception of the information.

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References:

Mr. Muhammad Wasif

General Manager HR Department

Mr. Muhammad Umar Janjoa

Assistant Manager HR Department

Mr. Muhammad Assad

Asst. Manager MIS Department

Management Information System

By Robert schultheis & Mary Sumner

Web site of the company www.cdl.com.pk

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