OVERVIEW OF MIS

By

(Dr) Sanjay Kumar Vij

Director (CE, IT, MCA) SVIT, Vasad
Delivered at

MSU, MBA (Eve-Prog)

On

January 04, 2012

What Is MIS & Why MIS?

MIS = IS for M Information System for Managers Goal To Help Top Management in Management & Control Remote Management of an Organization is a Challenge

04 Jan, 2012

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MSU-MBA

MIS Framework
MIS Reports Should Include Exceptions Reporting Reconciliation Statements Analysis MIS Reports are Based on Transactions Why?

04 Jan, 2012

sanjayvij@svit-vasad

MSU-MBA

Exceptions Reporting
What is Exception? Exception is a Deviation from Some base Figure Characteristics of Exceptions Exceptions are More Important Because Exceptions are Richer in Info Content

Shanons Information Theory Information Content is Inversely Proportional to the Probability of Its Occurrence.
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Examples of Exceptions
Purchase System: Exceptions in
Items Price, Quality, & Delivery Schedule Etc. Non-moving Items Stock out Excess Stock Etc.
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Inventory System

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How to Report Exceptions

MIS Reporting is Periodical: e.g. Monthly

Example: Price Deviation (Purchase System) Total Impact During Last Month due to Price Fluctuations for All Purchases How to Compute It?
If the Figure is High, Give Further Details. What Details?
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Exception Reporting
Various Options: Range: (Max Price - Min Price), and Avg. Price Inter-Quartile Range, Percentile Weekly Fluctuation Boundaries of Deviation Discussion for Other Parameters
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Exceptions May Be Misleading

Is a Seemingly Exceptional Situation Truly Exceptional? Scenario-1: 10% Rise in Raw Material Consumption Is it an Exception? Read the Same Statement with Additional Associated Information 10% Rise in Production Is it Still An Exception?
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Exceptions May Be Misleading

Is a Seemingly Normal Situation Truly Normal? Scenario-2: No Change in Raw Material Consumption Is it a Normal Situation? Read the Same Statement with Additional Associated Information 10% Fall in Production Is it Still A Normal Situation?
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Reconciliation Is Important
Reconciliation Generates Early Alarm if Some Manipulation is Taking Place. What is Reconciliation? Reconciliation is Deriving Certain Figures of Interest Using 2 or More Different Methods & Comparing. Ex: Physical Stock Checking Ex: Salary Bill Reconciliation

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MSU-MBA

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Salary Bill Reconciliation

Current Month Salary is Computed. Can Current Months Salary be Derived from Prev. Months Salary Statement + Addl. Info? What Additional Info is Required? What is the Reliability of Such Derivation? What is the Benefit of Such Derivation? Can Such Analysis Help in Preventing Satyam kind of Scams?
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Analysis
Key Questions: What is to be Analyzed? What is the Entity of Interest for Analysis? Can CSF & CTQ Concepts Give Some Clue? What Are the Factors (Parameters) Affecting It? Do I have to Use Different Granularity Levels for these Factors? Can I Borrow the Concepts from Data Warehousing?
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Examples of Analysis
Sales Analysis Factors: Time, Location, Product, Customer Sales Increased by 10% It is a Good News. Does it Need Analysis? YES Analyze Sales for Various Quarters? Analyze Sales for Various Regions? Analyze Sales for Various Products? Is the Above Sequence OK?
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TPS, MIS, & DSS

TPS: Transaction Processing System TPS Focus:
Process New Transactions Book Keeping Reports

MIS: Management Information System DSS: Decision Support System A System which Supports in Decision Making is DSS DSS May Also Use Semi-Structured Info
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DSS Example
Purchase Bill Passing What is Involved in Bill Passing? What are the Concerns?

04 Jan, 2012

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MSU-MBA

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MSU-MBA

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