MANAGEMENT

INFORMATION
SYSTEM (MIS)
• Definition: MIS can be defined as "A system
of obtaining, abstracting, storing and
analysing data to produce effective
information for use in planning, controlling
and decision making process". The man
machine combination helps to solve complex
business and industrial problems and that
too quickly
 Need of MIS:
• 1. Internal factors: (i) Resources. (ii) Planning
and control information. (iii) Operational
information. (iv) Production function. (v)
Marketing function.
• 2. External Information factors: (i) Political
and Government. (ii) Economic condition. (iii)
Technology
Implementation of MIS:
1. Input data. 2. Information stored and
retrieval.

3. Analysis. 4. Output.
5. Decision making. 6. Action
 PRODUCTIVITY:
• Definition: Productivity is a measure of
how much input required producing a
given output i.e. the ratio between
output and input is called productivity.
• FACTORS AFFECTING PRODUCTIVITY:
• 1. Technology. 2. Human resources.
• 3. Government policy. 4. Machinery and
Equipment.
• 5. Skill of the workers. 6. Capital.
• 7. Research and Development. 8. Trade unions.
• 9. Materials. 10. Plant, equipment.
• 11. Land and Buildings. 12. The size of the plant
 Role of Productivity:
• a) For management:
• 1. To get high profit; 2. To improve the resources;
3. To increase the sales.
• b) For workers:
• 1. Job satisfaction and Job security; 2. Promotion;
3. Higher salary;
• 4. Better working conditions.
• c) For customers:
• 1. To get quality product; 2. Reduced prices; 3.
Easily available
PRODUCT ANALYSIS
• Operation Research: Operation research is a
product of World War II.
• Definition: "Operation research is an
experimental and applied science developed
for observing understanding the purposeful
man-machine systems and operations
research workers are actively engaged in
applying this knowledge to practical
problems in business government and
society". Operation Research society of
America
Necessity of Operation Research:
• (i) Uncertainty.
• (ii) Responsibility and authority.
• (iii) OR Models.
• (iv) Complex Organizations.
• (v) Optimization of resources.
• (vi) Minimizing time. Example: PERT,
Transportation method, Queuing theory
• (vii) Maximizing profit. Example: PERT method,
Queuing, Decision-tree etc.
• (viii) Minimizing cost. Linear Programming, EOQ
concept.
 INVENTORY CONTROL (or) PURCHASING
CONTROL:
• Inventory is the quantity of goods and other
stocks held for a specific time period in an
unproductive state, awaiting use or sales.
• Effective Inventory Control System:
• It should provide a proper check against
losses.
• Inventories should be classified clearly. Each
item should be given a separate code for quick
identification.
• Separate storerooms must be equipped with
all facilities.
• Experienced and qualified persons should be
appointed in the purchase and other related
departments.
ECONOMIC ORDER QUANTITY:
• It is a basic fixed order quantity model such
that the total inventory cost (Inventory
carrying cost + ordering cost) is low. This
quantity is known as Economic Order quantity.
• Determination of Economic Order Quantity
(EOQ):
• EOQ= root of (2DS/C)

D - Demand per year; S - Ordering cost;

C - Annual carrying cost of one unit.
• JUST IN TIME INVENTORY (JIT) SYSTEM:
• In this method, the suppliers deliver the
materials to the production spot just in time
to be assembled.
• This method reduces the cost of inventory
 JIT
• Essential requirements for the success:
• 1. Required trained and skilled workers.
• 2. To reduce batch size.
• 3. Smooth relationship with suppliers.
• 4. Suppliers should be located near the'
company.
• 5. Effective maintenance of machineries