Chapter 10 - Repository UNIKOM

  MIS Definition MIS Definition

   A computer-based system that makes

  A computer-based system that makes

information available to users with similar

information available to users with similar

needs. needs.

• – Users are typically comprise a formal

  Users are typically comprise a formal

  organizational entity

  organizational entity

• – Describes what has happened in the past

  Describes what has happened in the past

  

Early MIS Efforts

Early MIS Efforts

   Popular in business by the mid 1960s

  Popular in business by the mid 1960s 

  Punched card and keydriven machines were Punched card and keydriven machines were used only for data processing used only for data processing

  

The first computers were applied the same way

  

The first computers were applied the same way



  

Only a few computer literate people in the firms

Only a few computer literate people in the firms

   Managers became aware of computer’s

  Managers became aware of computer’s processes and power processes and power

  Resource Resource

  

MIS is an Organizational

MIS is an Organizational

   Information

  Information

• – Past, present, future

  Past, present, future

• –

  Periodic reports, special reports, simulations

  Periodic reports, special reports, simulations

   Similar needs

  Similar needs

• – Functional area

  Functional area

• – Management level

  Management level

• – Managers and nonmanagers

  Managers and nonmanagers

  

An MIS Model

An MIS Model

   Database

  Database

• – AIS data and information

  AIS data and information

• – Environmental data and information

  Environmental data and information 

  Interorganizational information systems Interorganizational information systems

  (IOS) (IOS)

• – Firms band together with other organizations

  Firms band together with other organizations such as suppliers such as suppliers

  Environment Environment _{Organizational Organizational problem problem} solvers solvers Report writing Report writing _{software software Mathematical Mathematical models models}

  Management Management Information Information System System An MIS Model

  An MIS Model Data Data Information Information

  Database Database

  Executive Information System (EIS)

  Organizational Information Systems Organizational Information Systems

  Marketing information Manufacturing information Financial information Human resource information

  

MIS tailored to meet users’ needs for information

  Functional Information Systems

Functional Information Systems

  

MIS tailored to meet users’ needs for information

concerning functional areas concerning functional areas

• – Manufacturing

  Manufacturing

• – HRIS

  HRIS

• – Others

  Others 

  Executive information systems (EIS) Executive information systems (EIS)

   Enterprise information system

  Enterprise information system

• – Pulls functional ISs together

  Pulls functional ISs together

• – Enterprise resource planning (ERP)

  Enterprise resource planning (ERP)

  Report Writing Software Report Writing Software

   Periodic and special reports may look the

  

Periodic and special reports may look the

same same

   Difference is in what

  Difference is in what triggers triggers the report the report

• – Periodic report

  Periodic report

  » Produced on a schedule

  Produced on a schedule

• – Special report

  Special report

  » Produced when something out of the ordinary

  Produced when something out of the ordinary occurs occurs

  

Incorporating Management

Incorporating Management

by Exception

by Exception

   Prepare the report only when exceptions

  Prepare the report only when exceptions occur occur

   Use the report sequence to highlight

  Use the report sequence to highlight exceptions exceptions

   Group exceptions together

  Group exceptions together 

  Show the variance from the norm Show the variance from the norm

  An Overtime Earnings Report An Overtime Earnings Report

  OVERTIME EARNINGS Department No. Department Name Current Month Year-to-Date 16-10 Receiving $ 2,305.00 $ 5,319.20

16-11 Inspection $ 1,025.60 $ 4,386.12

16-12 Materials Handling $ 3,392.50 $12,629.00

16-13 Tooling $ 78.00 $ 1,049.00

16-14 Assembly $ 0.00 $ 792.80

16-15 Plating $ 3,504.90 $12,635.20 16-16 Shipping $ 5,219.16 $18,294.16 TOTALS $15,525.16 $55,105.48

  _{PRODUCT PRODUCT CURRENT MONTH YEAR-TO-DATE} FOR THE MONTH OF JUNE _{129875 GASKET CENTER CASE $ 5,090.23 $ 31,764.00} NUMBER NAME SALES SALES _{250067 OIL SEAL REAR 11,560.24 23,450.07 118320 1ST MOTION SHAFT 1,789.45 28,243.59} 087235 MAINSHAFT 4,760.01 29,329.45 _{516012 SHIFT FORK 1-2 450.95 12,634.44 576000 HUB 5TH .00 13,623.68} 228203 LAYGEAR 8,369.34 14,709.03 090407 SYNCHRO RING 2ND 2,243.27 9,963.58

_{576301 OIL SLINGER .00 11.50}

282130 BUSH SHIFT LEVER .00 490.00

  AGED ACCOUNTS RECEIVABLE REPORT

• _{-----------------------------------------------------------------} AS OF MAY 31 _{----------------------------------------------------------------- NUMBER NAME AMOUNT DAYS DAYS DAYS AMOUNT} ----CUSTOMER-------- CURRENT 30-60 60-90 OVER 90 TOTAL _{52472 KENYON MACHINERY 443.10 443.10 51221 KENNEDY ELECTRIC 181.34 181.34} 51212 KELLY & MARLEY INC 1,003.10 20.26 1023.26 _{54574 KEYMAN ASSOCIATES 432.71 431.71 54233 KERITE CO 367.94 101.74 469.68} 53204 KEPNER DANA CO 153.26 114.14 11.12 278.52 _{55430 KIRSCH CO 26.30 26.30} 55081 KIMBULIANS 24.12 122.81 146.93

  60245 LEBEN DRILLING 1.10 476.93 174.96 652.39

  SALES BY SALESPERSON REPORT _{SALESPERSON CURRENT-MONTH YEAR-TO-DATE} FOR THE MONTH ENDING MARCH 31 _{NO. NAME QUOTA ACTUAL VARIANCE QUOTA ACTUAL VARIANCE} ----------- ---------------------- ---------------------- _{19261 DARVIN UPSHAW 800 1090 +290 2400 2510 +110}

_{10469 LYNN SHERRY 1000 1162 +162 3000 3320 +320}

0120 JOHN NELSON 1200 1083 -117 3600 3505 -95 _{62083 CATHY HAGER 1000 990 -10 3000 2319 -681 61604 TRAVIS BURKE 2000 2333 +333 6000 6712 +712} 20234 JANIE EVANS 1500 1305 -195 4500 4110 -390 _{64040 SAM MOSELY 1050 985 -65 3150 3020 -130} 63049 STEVE JENNER 1100 1250 +150 3300 2416 -884 TOTALS 9650 10198 548 28950 27912 -1028

  Modeling Modeling

   Models are abstractions

  Models are abstractions 

  Models may be: Models may be:

• – Physical

  Physical

• – Narrative

  Narrative

• – Graphic

  Graphic

• – Mathematical

  Mathematical

  Mathematical Modeling Mathematical Modeling

   Most important to MIS users

  Most important to MIS users 

  Three dimensions Three dimensions

• – Influence of time

  Influence of time

• – Degree of uncertainty

  Degree of uncertainty

• – Ability to optimize

  Ability to optimize Mathematical Model Types Mathematical Model Types

   Static

  Static

• – Does not include time

  Does not include time

• – Like a snapshot

  Like a snapshot 

  Dynamic Dynamic

• – Includes time

  Includes time

• – Like a motion picture

  Like a motion picture

  

Mathematical Model Types

Mathematical Model Types

  (cont.)

(cont.)

   Probabilistic

  Probabilistic

• – Includes probabilities of events occuring

  Includes probabilities of events occuring

• – 0.00 to 1.00

  0.00 to 1.00 

  Deterministic Deterministic

• – Events are certain

  Events are certain

• – Not random

  Not random

  

Mathematical Model Types

Mathematical Model Types

  

(cont.)

(cont.)

   Optimizing

  Optimizing

• – Selects best solution

  Selects best solution

• – Requires structured problems

  Requires structured problems

   Suboptimizing

  Suboptimizing

• – Also called satisficing

  Also called satisficing

• – Model identifies outcomes for manager to

  Model identifies outcomes for manager to

  select among

  select among

  

Simulation

Simulation

   Use of a model is called simulation

  Use of a model is called simulation 

  Scenario Scenario

• – Conditions that influence the simulation

  Conditions that influence the simulation

• – Scenario data elements

  Scenario data elements

   Decision variables

  Decision variables

• – Input values

  Input values

   Output format varies

  Output format varies

   Simulation Technique

  Simulation (cont.) Simulation (cont.)

  Simulation Technique

• – Single scenario for optimizing model

  Single scenario for optimizing model

• – What-if game for suboptimizing models

  What-if game for suboptimizing models

• –

  Change only single decision variable per run

  

Change only single decision variable per run

• –

  Systematically discover answers to problems

  

Systematically discover answers to problems



  Output format Output format

• – Include both decision variables and outcomes on

  Include both decision variables and outcomes on same report same report

  

Modeling Example

Modeling Example

   Use model to simulate the effect of:

  Use model to simulate the effect of:

• – Price of product

  Price of product

• – Amount of plant investment necessary to provide

  Amount of plant investment necessary to provide sufficient capacity sufficient capacity

• – Amount to invest in marketing activity

  Amount to invest in marketing activity

• – Amount to invest in R & D

  Amount to invest in R & D 

  Enter model input Enter model input

   Review model outputs

  Review model outputs

  

More on Modeling

More on Modeling

   Advantages

  Advantages

• – Can be a learning experience

  Can be a learning experience

• – Speed allows consideration of more options

  Speed allows consideration of more options

• – Provides predictive power

  Provides predictive power

• – Less expensive than trial-and-error method

  Less expensive than trial-and-error method 

  Disadvantages Disadvantages

• – Difficult to model a business system

  Difficult to model a business system

• – High degree of mathematical skills required

  High degree of mathematical skills required

  

INVENTORY PLANNING MODEL

_SCENARIO:

OCTOBER 11

_{DAILY SALES UNITS: 20} BEGINNING BALANCE: 200 _{0RDER QUANTITY: 100} DECISIONS: _{LEAD TIME: 3} REORDER POINT: 175 _{DAY BALANCE RECEIPTS SALES BALANCE QUANTITY DUE DATE BEGINNING ENDING ORDER RECEIPT} RESULTS: _{2 180 50 20 160} 1 200 20 180 25 5

  Graphic Output Graphic Output

   Use graphics to

  Use graphics to

• – present a quick summary

  present a quick summary

• – detect trends over time

  detect trends over time

• – forecast activities

  forecast activities

• – seek relatively simple impressions from a large

  seek relatively simple impressions from a large

  volume of data

  volume of data

  

Graphical Output

Graphical Output

   Reports and model outputs can be produced

  Reports and model outputs can be produced in tabular or graphical form in tabular or graphical form

   Spreadsheets have encouraged the use of

  Spreadsheets have encouraged the use of graphics graphics

   Can improve decision making capability

  Can improve decision making capability

  Which Graphs to Use Which Graphs to Use

   Compare variables using horizontal, not vertical,

  points

  Use single line or bar charts to compare data

   Use single line or bar charts to compare data

  bars

  bars

  Compare variables using horizontal, not vertical,

  parts of a whole

   Line or bar charts are best to summarize data

  parts of a whole

  Grouped bar charts are better for representing

  

Grouped bar charts are better for representing

  Grouped line or bar charts show trends over time

   Grouped line or bar charts show trends over time

  Line or bar charts are best to summarize data

  points

  1980 1981 1982 1983 1984

  20

  

Oranges

Peanuts

Years (c)

  90 1980 1981 1982 1983 1984 Apples

  80

  70

  60

  50

  40

  30

  10

  10

  90 1980 1981 1982 1983 1984 Apples Oranges Peanuts

  80

  70

  60

  50

  40

  30

  20

  Sales Revenue Sales Revenue Segmented Line Chart Segmented Line Chart

  50 100 150 200

  1980 1981 1982 1983 1984 Years (b) Legend:

  Apples D ol la rs in M il li on s Segmented/Divided Bar Chart Segmented/Divided Bar Chart

  Sales Revenue 200 s on 150 li il M 100 in rs

  50 la ol D 1980 1981 1982 1983 1984 Legend: Apples

  Years Oranges

   (d) Human Factors Consideration Human Factors Consideration

   Behavioral influences can affect employees

  

Behavioral influences can affect employees

in their computer-related tasks in their computer-related tasks

   Fear

  Fear

• – Replacement of people by computers

  Replacement of people by computers

• – Computer systems tailored to organizations, not

  Computer systems tailored to organizations, not

  individuals

  individuals

• – Managers and line workers are affected

  Managers and line workers are affected

  

Minimizing Fear

Minimizing Fear

  

Use computer as a means of achieving job

  

Use computer as a means of achieving job

enhancement enhancement

   Use formal communications to keep

  Use formal communications to keep employees aware of firm’s intentions employees aware of firm’s intentions

  

Build a relationship of trust with employees

  

Build a relationship of trust with employees



  Align employees’ needs with firm’s Align employees’ needs with firm’s objectives objectives

  Putting the MIS in Perspective Putting the MIS in Perspective

   The first attempt to make information

  The first attempt to make information available to available to management management

   Enjoyed its greatest prominence in the

  Enjoyed its greatest prominence in the 1960s when it first originated

  1960s when it first originated 

  Now integrated throughout the firm Now integrated throughout the firm

  

MIS and Problem Solving

MIS and Problem Solving

   Organizationwide information resources

  Organizationwide information resources

• – Provides problems solving information

  Provides problems solving information

• – Sets stage for accomplishment in other areas such as

  

Sets stage for accomplishment in other areas such as

DSS, the virtual office, and knowledge-based

  DSS, the virtual office, and knowledge-based 

  Problem identification and understanding Problem identification and understanding

• – Main idea is to keep information flowing to the manager

  Main idea is to keep information flowing to the manager

• – Manager uses MIS to signal impending problems

  Manager uses MIS to signal impending problems 

  

Main weakness is that it is not aimed at individual

Main weakness is that it is not aimed at individual

problem solvers problem solvers

  

Summary

Summary

   MIS is an organizational reason providing

  MIS is an organizational reason providing information to managers with similar needs information to managers with similar needs

   Functional MISs began to emerge

  Functional MISs began to emerge 

  MIS subsystems MIS subsystems

• – Report-writing software

  Report-writing software

• – Mathematical models

  Mathematical models 

  Management by exception can be incorporated

Management by exception can be incorporated

  

Summary [cont.]

Summary [cont.]

   Mathematical modeling

  Mathematical modeling

• – Only an approximation

  Only an approximation

   Computer graphics

  Computer graphics 

  Behavioral influences Behavioral influences

   Quality of IS

  Quality of IS