Management Information System:

Management information system is a computerized database financial information organised and

programmed in such a way that it provides produces a regular report on operations for every level
of management in a company. It is usually also possible to obtain special reports from the system
easily.
MIS refers to broadly to a computer based system that provides managers with the tools for
organising evaluating and effectively running their department. It is the responsibility of MIS.

Characteristics of MIS:
 It is management oriented
 Management directed
 Integrated systems
 Avoid duplication in data storage
 Computerization

Definition
MIS is a plant system of collecting storing and disseminating data in the form of information
needed to carry out the function of management.

Objectives
1. Capturing data
2. Processing data
3. Information storage
4. Information retrieved
5. Information Propagation

Materials Requirement Planning:

MRP is a software based production planning and inventory control system used to manage
manufacturing process.
MRP is a computer based production planning and inventory control
MRP is concerned with both production scheduling an inventory control.
MRP is a production planning and control techniques in which the master production schedule is
used to create production and purchase orders for dependent demand items and it is internal
production process design to ensure that the materials components parts are available as and when
required.

Objectives of MRP:
1. Ensure materials are available for production and products are available for delivery
customers
 2. Maintain the lowest possible material and product levels in store
3. Plan manufacturing activities delivery schedules and purchasing activities

Total quality management

TQM is a description of the culture attitude and organisation of a company that strives to provide
customers with products and services that satisfy their needs.

Objectives
1. Decrease of mistakes in all operating plans.
2. Early mistake recognition
3. Avoidance of wastes
4. To make the whole company work towards Customers satisfaction

Nature of TQM:
TQM involves effective decision making problem solving and integration of quality planning
quality implementation and quality improvement strategies of all the departments of an
organisation committed and involved employees, lower costs higher revenue in high profits for the
organisation
TQM means quality of output of every department and by every employee cleanliness, orderliness,
punctuality, customer service, Standardization of works and continuous efforts for their
improvement. Customer satisfaction is the most important aspects of TQM

Elements of TQM
1. Customer satisfaction
2. High revenue
3. Quality of production
4. Quality implementation
5. Quality training

Six Sigma
Six Sigma is a disciplined statistical based data driven approach and continuous improvement
methodology for eliminating defects in a product process or service.
Six Sigma is a set of techniques and tools for process improvement. It was introduced by
engineer bill smith while working at Motorola in 1980. Jack Welch made it central to his business
strategy at General Electric in 1995. A Six Sigma process is one in which 99.99966 percent of all
opportunities to produce some feature of a Part are statistically expected to be free of defects.
Six Sigma is set of practices developed by Motorola to systematically improve processes by
eliminating defects.
A defect is defined as non-conformity of a product or service to its specifications. Six Sigma
focuses on quality.
Six Sigma seeks to improve the quality of the output of a process by identifying and removing
the causes of defects and minimising variability in manufacturing process methodologies also
there in Six Sigma
Methodologies used in Six Sigma:
Six Sigma follow two project methodologies inspired by Deming’s plan do check act cycle
These methodologies composed of 5 phases each
1. DMAIC
2. DMADV

DMAIC process
It is an improvement system for existing process falling below specifications and looking for
incremental improvements this basic methodology consists of the following 5 stages
D-Define M-Measure A-Analyse I-Improve C-Control

DMADV process
The goal of the design activity that are consistent with customer demands and enterprise strategy
D-Define M-Measure A-Analyse D-Design V-Verify

Capability maturity model

CMM is a way to develop and refine an organisations processes. The first CMM was for the
purpose of developing and refining software development processes. A maturity model is a
structured collection of elements that describe characteristics of effective processes
CMM has been used extensively worldwide in government offices commerce and industry and
software development organisations
The capability maturity model integration is a new version of capability maturity model.
A capability maturity model is a structure of elements that describe characteristics of effective
process.

Levels of capability maturity model

The CMM ranks software development organisations in hierarchy of five-levels. Each level is
described as a level of maturity. Those 5 levels are equipped with different number of instructions
to follow
Level 1 - Initial
Level 2 - Repeatable
Level 3 - Defined
Level 4 - Managed
Level 5 - Optimising

Supply chain management

Supply chain encompasses all activities associated with the floor and transformation of goods from
raw materials stage to end user as well as associated information flow material flows both up and
down.
Supply chain management is defined as design planning execution control and monitoring of
supply chain management activities with the objective of creating net value building a competitive
infrastructure leveraging worldwide logistics synchronising supply with demand and measuring
performance globally
Objectives of supply chain:
 To maximize the overall value generated
 To achieve maximum supply chain profitability
 To reduce supply chain costs to be minimum possible level
Need for supply chain management
 Improve operations
 Increasing levels of outsourcing
 Competitive pressures
 Increasing globalisation
 Increasing importance of e-commerce
 Manage inventories

Conclusion: Thus supply chain consists of the network of organisation that connects supplier
and end users. It provides the route through which raw materials are converted into finished goods
or services. into hands of consumers. Supply chain management inturn cover the flow of goods
some suppliers through manufacturing and distribution chains to the end users.

Enterprise resource planning

Enterprise resource planning is an integrated enterprise - wide information system. It integrates
the information system of an organisation and automates most of the business functions. Enterprise
is the group of people with a common goal with has certain resources at its disposal to achieve this
goal.
Enterprise resource planning refers to the techniques and concepts for integrated management of
business as a whole from the viewpoint of the effective use of management resources to improve
the efficiency of enterprise management.
Elements of ERP:
Ideally ERP delivers a single database that contains all data for the software modules which would
include:
Manufacturing: engineering bills of material scheduling capacity workflow management quality
control cost management manufacturing process
Benefits of ERP:
Installing an ERP system has many advantages both direct and indirect
The direct advantages include

 Improved efficiency
 Information integration for better decision making
 Faster response time to customer queries extra
The indirect advantages include
 Better corporate image
 Improved customer goodwill
 Customer satisfaction etc

Business process outsourcing

BPO is a subset of outsourcing that involves the contracting of the operations and responsibilities
of a specific business process to a third party service provider.
Originally this was associated with manufacturing firms such as coca cola that outsourced large
segments of its supply chain.
BPO means handling over the work of the company to an outside company or agency for
completion on contract basis
Categories of BPO
It is often divided into two categories
1. Back office outsourcing
2. Front office outsourcing
3. Back office outsourcing
This includes internal business functions such as billing or purchasing
Front office outsourcing
This includes customer related services such as marketing or technical support
Key terms of bpo
Offshore bpo that is contracted outside a companys own country
Onshore bpo that is contracted with the company's own country
Near shore bpo that is contracted a company's neighbouring country
Business process reengineering
According to michael hammer bpr is the fundamental rethinking and radical redesign of business
process to achieve dramatic improvements in critical contemporary measures of performance
such as cost quality service and speed
Bpr is a dramatic change initiative that contains 3 major steps
Manager should
 Re focus company values on customer needs
 Redesign core processes
 Often using information technology to enable improvements
Janson states that every reengineering effort involves 3 basic phases
1 rethink
2 redesign
3 retool
Benchmarking
Benchmarking is finding and implementing best practices that lead to superior performance of an
organisation
It is the process of comparing an organisations operations and internal processes against those of
other organisations within or outside its industry
Types of benchmarking
Benchmarking is classified on the basis of the type of partner selected for the benchmarking
based on the approaches the benchmarking is classified as
1 internal benchmarking
2 competitive benchmarking
3 functional benchmarking
4 best practice benchmarking
Benchmarking process steps
1 plan
2 search
3 observe
4 analyse
5 adopt
Just in time
When the components arrive as and when required in a manufacturing operations it is called just
in time
Over production is eliminated when just in time manufacturing is adopted
Just in time waste as out of date or expired products do not enter into this equation at all
This technique was first used by Ford motor company as described explicitly by henry ford my
life and my work (1922)
Advantages of jit:
1 reduce inventories and work in progress
2 reduce process time
3 reduce space requirement and setup time
4 increase in productivity
5 zero inventories
6 Improved products and services quality
Balanced scorecard
Balanced scorecard is a new approach to strategic management developed in 1990 by Robert
Kaplan and David Norton
It is a strategic planning and management system that is used extensively in business and
industry Government and non profit organisations worldwide to align business activities to the
vision and strategy of the organisation improve internal and external communications and
monitor organisations performance against strategic goals.
Financial
To succeed financially how should we appear to our shareholders
Internal business processes
To satisfy our shareholders and customers what business process must we Excel at
Customers
To achieve our vision how should we appear to our customers
Learning and growth
To achieve our vision how will we sustain in our ability to change and improve.