03Ssc06.ppt 153KB May 20 2010 09:29:42 PM

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Chapter 6

Systems Concepts

Systems Concepts

MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell


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Four Model Types Four Model Types

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1) Physical modelsPhysical models

Three dimensional representation such as a scale Three dimensional representation such as a scale

model

model

2) Narrative models 2) Narrative models

Spoken or writtenSpoken or written

3) Graphic models 3) Graphic models

– Abstraction of lines, symbols, or shapesAbstraction of lines, symbols, or shapes

4) Mathematical models 4) Mathematical models

– Equation(s)Equation(s)


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Cost

Order Quantity

0

EOQ

Total cost Mainten

ance co st

Purchasing cost

A Graphic Model of the A Graphic Model of the

Economic Order Quantity Concept Economic Order Quantity Concept


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A. A Flowchart A. A Flowchart

Sales Sales Orders Orders Sales Sales Orders Orders Report Report Sales Sales Orders Orders Sales Sales Orders Orders Edit Sales Orders Enter Sales Order Data Prepare Sales Order Report Sales Order History File

B. A Data Flow Diagram B. A Data Flow Diagram

Customers 1. 1. 2. 2. 3. 3. Sales Sales Orders Orders Sales Sales Order Order Data Data Sales Sales Order Order Report Report Enter Sales Enter Sales Orders Orders Edit Sales Edit Sales Orders Orders 1. Edit Sales Orders 2. Enter Sales Order Data 3. Prepare Sales Order Report Sales Order History File Sales Manager


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Uses of Models Uses of Models

 All four models facilitate understanding and All four models facilitate understanding and

communication.

communication.

 The mathematical model also helps predict The mathematical model also helps predict

the future.


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The General Systems The General Systems

Model Model

 Graphic diagram with an accompanying Graphic diagram with an accompanying

narrative that depicts all organizations in a

narrative that depicts all organizations in a

general way, using a systems framework

general way, using a systems framework

 The Physical SystemThe Physical System

Material flowMaterial flowPersonnel flowPersonnel flowMachine flowMachine flowMoney flowMoney flow


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Transformation Process

The Physical System of the The Physical System of the

Firm Firm

Input

Resources

Output Resources

Boundary of the Firm


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The Conceptual System The Conceptual System  Open-loop systemsOpen-loop systems

 Closed-loop systems (feedback loop)Closed-loop systems (feedback loop)

 Management controlManagement control


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Transformation Process

Control Mechanism

Input Resources

Output Resources

A Closed-Loop System A Closed-Loop System


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Management

Transformation Process Input

Resources

Output Resources

Information Information

The Physical System of the Firm The Physical System of the Firm

as a Controlled System as a Controlled System


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Information is Gathered Information is Gathered

from All of the Physical from All of the Physical

System Elements System Elements

Management

Transformation

Process ResourcesOutput

Input Resources


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Management Information Processor

Output Resources Input

Resources

Information Information

Data

Transformation Process

The Information Processor Transforms The Information Processor Transforms

Data into Information Data into Information


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Conceptual System (cont.) Conceptual System (cont.)

 Dimensions of InformationDimensions of Information

– RelevancyRelevancy – AccuracyAccuracyTimelinessTimeliness

– CompletenessCompleteness


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Conceptual System (cont.) Conceptual System (cont.)

 Standards Standards

– Measure of acceptable Measure of acceptable

performance

performance

– Usually stated in specific Usually stated in specific

terms

terms

– Used to control physical Used to control physical

system

system

– Consists of:Consists of:

» ManagementManagement

» Information processorInformation processor » StandardsStandards

 ObjectivesObjectives

Overall goal that a Overall goal that a

system is to obtain

system is to obtain – Systems have one or Systems have one or

more objectives


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Output Resources Input

Resources

Management InformationProcessor

Transformation Process Standards

Information Information

Data

Performance Standards are Made Available Performance Standards are Made Available

to Both Management and the Information to Both Management and the Information

Processor Processor


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Conceptual System (cont.) Conceptual System (cont.)

 Management by exceptionManagement by exception

– Compares standards with information output of Compares standards with information output of

system

system

Manager becomes involved when system falls Manager becomes involved when system falls

outside range of acceptable performance

outside range of acceptable performance – Capability provided by CBISCapability provided by CBIS


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Standards

Management Information

Processor

Output Resources

Transformation Process Input

Resources

Data

Information Decisions

Changes are Made in the Changes are Made in the

Physical System Through the Physical System Through the

Decision Flow Decision Flow


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Conceptual System (cont.) Conceptual System (cont.)

 Decision FlowDecision Flow

– Data is transformed into information by the Data is transformed into information by the

information processor

information processor


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The General Systems Model of the

The General Systems Model of the

Firm

Firm Standards

Management Information

Processor

Output Resources

Transformation Process Input

Resources

Data

Information Decisions

Environment

Physical

Resources Physical

Resources Information and


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Conceptual System (cont.)

Conceptual System (cont.)

 Standards Standards

– Measure of acceptable Measure of acceptable

performance

performance

– Usually stated in specific Usually stated in specific

terms

terms

– Used to control physical Used to control physical

system

system

– Consists of:Consists of:

» ManagementManagement

» Information processorInformation processor » StandardsStandards

 ObjectivesObjectives

Overall goal that a Overall goal that a

system is to obtain

system is to obtain – Systems have one or Systems have one or

more objectives


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Output Resources Input

Resources

Management InformationProcessor

Transformation Process Standards

Information Information

Data

Performance Standards are Made Available

Performance Standards are Made Available

to Both Management and the Information

to Both Management and the Information

Processor

Processor


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Conceptual System (cont.)

Conceptual System (cont.)

Management by exception

Management by exception

– Compares standards with information output of Compares standards with information output of system

system

Manager becomes involved when system falls Manager becomes involved when system falls outside range of acceptable performance

outside range of acceptable performance – Capability provided by CBISCapability provided by CBIS


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Standards

Management Information

Processor

Output Resources Transformation

Process Input

Resources

Data

Information Decisions

Changes are Made in the

Changes are Made in the

Physical System Through the

Physical System Through the

Decision Flow

Decision Flow


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Conceptual System (cont.)

Conceptual System (cont.)

Decision Flow

Decision Flow

– Data is transformed into information by the Data is transformed into information by the information processor

information processor


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The General Systems Model of the

The General Systems Model of the

Firm

Firm

Standards

Management Information

Processor

Output

Resources Transformation

Process

Input

Resources

Data

Information Decisions

Environment

Physical

Resources Physical

Resources Information and

Data