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NCP 28
NCP 28
Assignment no. 3
Management information system
Registration no.
ASSIGNMENT
1. Name -
2. Reg. No. -
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Management information system
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/MIS/ is
0 a planned system of collecting"
0 processing"
0 storing and
0 disseminating data
in t'e form of information needed to carry out t'e functions of management.
S*o+e o$ ,or)
A true management concentrates on managing t'e people w'o are entrusted wit'
t'e jo, of attaining t'e pre-determined o,jectives. 1ut it s'ould not ,e lost sig't of
t'at t'e management of materials also calls for skill and judgement. #'ile
directing t'e people at work" we never lose sig't of materials.
&'e materials are very muc' t'ere in t'e minds of t'ose w'o are responsi,le for
managing t'e affairs of a ,usiness and2or manufacturing unit. 1ot' re*!"% a#
#re*!"% " t'e management keeps a close watc' over t'e materials wit' t'e 'elp
of w'ic' people w'o are at work" accomplis' t'eir assigned jo, and t'us 'elp in
attaining t'e stated goals of t'e enterprise.
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• tools and materials w'ic' are truly effective instruments in serving t'e
enterprise.
&ruly speaking" 4t'e control5 of systems" etc." goes along way in 'elping t'e
workers in t'eir effort to ac'ieve t'e o,jectives of t'e enterprise.
Management till today 'as not ,een a,le to draw a dividing line ,etween t'e
procurement of material t'ings re(uired for a successful operation and t'eir
utiliation ,y t'e people w'o are at work. 6or does t'e management strive for
suc' a dividing line. Material t'ings cannot ,e isolated. &'ey are closely related
to t'e management.
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as*)
&'e work involves four main works i.e. Main !am" #eir" $lectric Power %tation
and &unnel. &'e a,ove work involves %upply" &ransportation" 7nloading"
8a,rication" $rection" &esting and ommissioning of ,alance ventilation ducts
and e(uipments as per tec'nical specifications.
$nergy 'as ,ecome a sym,ol of growt' and instrument for development. $lectric
power particularly t'e 'ydro power is a renewa,le" economically attractive"
environment friendly" non-polluting and environmentally ,enign source of energy.
Moreover" t'e Hydro Power is su,mergence free and 'as s'ort gestation period.
&'ese ,enefits of HP 'ave now ,een sufficiently recognied. &'e need of t'e
project comes from t'e ,enefits of HP and utiliation of resources.
Management information system provides predefined types of information to t'e
management for relatively structured type of decisions.
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&'e su,station part 'as to ,e made in t'e open area and t'e wiring of t'e
towers is taken care ,y t'e R... &renc'es made under t'e floor.
8rom t'e reservoirs t'e water is ,roug't t'roug' a tunnel for t'e generation
of t'e electricity. i.e. in itself a very tec'nical and specific re(uirement for
t'e construction of t'e project.
As far as t'e scope of t'e 'ydel projects is concerned it is not as limited ,ecause of
t'e fact t'at our country is facing s'ortage of electricity. n future we s'all need
more of 'ydel projects to meet t'e re(uisite demands of t'e power sector and of
course to facilitate t'e people staying in t'e remotest areas of t'e country. &'is is
t'e reason in t'e recent years even #orld 1ank 'as offered to finance t'e 'ydel
projects in states like Himac'al Prades'" 7ttaranc'al" Assam 9 :ammu 9
;as'mir.
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&'e organiation" t'us" takes a due note of 'uman faculties. n t'is way t'e
organiation encourages initiative and develops a sense of duty in t'e personnel
working for t'e organiation.
&'e organiation s'apes and influences t'e ,e'aviour and interaction of people at
work. t determines t'e e*tent to w'ic' people at work would co-operate and
would strive for ac'ieving t'e stated goals. &'is is s'y t'e organiation is
assuming a greater importance in modern management and day-,y-day it is
growing in structure. t renders valua,le services to t'e w'ole undertaking. t is
an important tool in t'e 'ands of management. t welds toget'er a frame work of
positions for t'e most effective pursuit of t'e goals of t'e undertaking.
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rrespective of t'e sie" t'e nature and t'e purpose of an undertaking" t'e ,asic
approac' and principles of organiation remain t'e same. 8or t'e attainment of an
effective management" an attempt is usually made ,y every undertaking to stick to
t'e following fundamental principles of organiation
0 !etermination of t'e ,asic o,jectives
0 !etermination of t'e areas of activity
0 !etermination of an ideal structure to accomplis' t'e desired activities
0 !etermination of aut'ority and responsi,ility
0 !etermination of t'e span of control
0 !etermination and assigning of jo,s according to personal a,ility.
0 7nity of command
0 Preparation and circulation of rules and regulations
0 nstallation of and effective two-way communication
0 8le*i,ility and
0 =ine and staff activity.
t is indeed a fact t'at leaders'ip in any organiation plays a distinct role in setting
t'e trends of operation and ac'ievements. Howsoever lauda,le a principle of an
organiation may ,e unless it is supported ,y ent'usiastic" imaginative and
sensi,le leaders'ip not'ing tangi,le could ,e ac'ieved. t is t'e structural ,alance
in t'e organiation w'ic' is generally rewarding. An a good leaders'ip com,ined
wit' a well-conceived and judiciously developed organiation on t'e principles
enumerated a,ove" pays dividend. ertainly it is not t'e principles and a series of
rules and regulations w'ic' work for t'emselves ,ut t'ey are t'e guiding factors
w'ic' 'elp an organiation to ac'ieve w'at it wants to ac'ieve.
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&'e modern concept of Materials Management integrates t'e entire range of
functions w'ic' effect t'e flow" conservation and utiliation of all materials and
,rings toget'er t'e activities suc' as materials planning and ,udgeting"
purc'asing" inventory control" clearing and forwarding" receiving and
storekeeping" materials 'andling" salvaging" scrap and surplus disposal" value
analysis and materials standardiation. &'e significance of t'is concept lies in t'e
fact t'at efficiency of any organiation is depend upon 'aving t'e
“Right Material of the Right Quality at the Right Price in the Right Quantity at
the Right Time and Place “
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t'e targets.
&'e materials re(uired for t'e 'ydel projects s'all ,e managed according to t'e
levels mentioned a,ove.
0ere I !ae !'e e5am+"e o$ a '%e" +ro6e*! o$ &M7 *a+a*!%. Reureme#! $or
!'e +ro6e*! s as $o""o,s)
<ffice %paces
#ater Reservoir
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S!age 1
S!age 2
Up to lintel level
ement F@@@@ ,ags
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S!age 3
On laying of slabs
ement 3D@@@ ,ags
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&'e term /inventory/ implies t'e cost of materials in stock at a given time. &'is
stock of materials is 'eld to act as a cus'ion ,etween t'e supply and demand. &'e
monetary value of inventory indicates t'e e*tent of investment re(uired to
maintain minimum stock of materials for t'e smoot' running of t'e project.
nventory control refers to It'e process w'ere,y t'e investment in materials and
parts carried in stock is regulated wit'in predetermined limits set in accordance
wit' inventory policy esta,lis'ed ,y t'e managementJ. &'e activities of inventory
control" t'us" include t'e following
>. !etermination of limits of inventories to ,e 'eld
E. !etermination of inventory policies.
3. %etting out of investment pattern and its regulation as per individual and
collective re(uirements.
?. 8ollow-up to e*amine t'e working of t'e inventory policy and effecting
c'anges as and w'en needed.
&'e aim of t'e materials management is to make availa,le t'e rig't type of
material in rig't (uantity" at t'e rig't price" at t'e rig't time and at t'e rig't place.
&'e o,jective is suc' t'at t'e construction work s'ould not ,e'eld up for t'e want
of material ,ut t'e total investment on t'e materials minimum. f we e*amine t'e
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aims and o,jectives very carefully t'e concept of nventory control in t'e material
management is o,vious. &'is can ,e considered as a very important function of
materials management. t is mainly concerned wit' laying t'e policies regarding
'ow muc' (uantity of a material s'ould ,e 'eld in stock so t'at t'e aim of t'e
material management of ensuring continuity of t'e project wit' t'e minimum
investment in materials is fulfilled.
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eac' ,in. #'en t'e first ,in is empty" user personnel or clerical staff transfers t'e
la,el to a ,oard mounted on t'e wall" and supplies are used from t'e second ,in.
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$conomic <rder Luantity is referred to as t'e sie of t'e order t'at gives
ma*imum economy in purc'asing t'e materials. t is known as <ptimum or
%tandard <rder Luantity. n fact t'e $conomic <rder Luantity or $<L offers
solution to inventory pro,lems.
$conomic order (uantity )also known as t'e 7"so# EO= Moe" or simply t'e
EO= Moe"+ is a model t'at defines t'e optimal (uantity to order t'at minimies
total varia,le costs re(uired to order and 'old inventory.
>+ &'e demand over t'e period of cycle )normally a year+ is constant and is
known in advance.
E+ onsumption of t'e material occurs at t'e uniform rate.
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i+ Re(uisitioning
<rdering cost is referred to as t'e cost of placing an order and securing t'e
supplies. &'e ordering cost largely depends upon t'e num,er of orders placed
during a given period and t'e num,er of items ordered at a particular time. t
varies from time to time and also from industry to industry.
1+ arrying ost
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nventory carrying cost refers to t'e cost of keeping t'e materials in t'e store'ouse
w'ic' includes capital cost" cost of storage and 'andling" cost of deterioration and
o,solescence and ot'er kinds of e*penses and losses during storage.
nade(uate inventory cost includes t'e cost of e*pediting t'e purc'ases" t'e cost of
securing rus' deliveries" cost of follow-up action" cost of keeping track of previous
orders" cost of keeping t'e inventory at its minimum irrespective of its larger
re(uirements" loss of sales" customers and good will etc. due to non fulfillment of
orders and all t'ose losses and costs t'at arise out of non-availa,ility of materials
to production department w'en it needs and also t'e cost of stoppage or disruption
of t'e operation of t'e organiation.
&'e a,ove t'ree costs w'ic' influence t'e economic order (uantity may ,roadly
,e classified into two categories from 4cost management5 point of view. &'e tow
categories are
Rig't purc'ase (uantity s'ould ensure t'at overall cost of ac(uisition and
possession is minimum" w'ile 'olding t'e optimum (uantity of an item in
inventory. I! ,"" 'a;e !o <e a++re*a!e !'a! a +o#! o$ m#mum *os! s
rea*'e a! ,'*' !'e orer#g *os! ,"" <e 6us! eua" !o !'e *arr%#g *os! su*'
!'a! #e!'er e5*ess ma!era" s orere #or !oo ma#% orers are $reue#!"%
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+"a*e $or !'e same ma!era" ur#g a !me +ero> $or ,'*' ema# +a!!er#
s more or "ess #o,#. t must ,e remem,ered" 'owever" t'at w'ile t'e former
varies wit' t'e num,er of orders placed" t'e latter is linearly and directly related to
t'e (uantity carried into t'e inventory.
FORM?@AE
EO= MODE@
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RO@)
&'is is t'e (uantity of stock )level+ fi*ed ,etween t'e ma*imum and minimum
levels of stock. #'en t'is level is reac'ed" it ,ecomes t'e duty of t'e stores in-
c'arge to initiate purc'ase so as to replenis' t'e stock wit'in reasona,le time.
&'is level is usually a little 'ig'er t'an t'e minimum in order to ,e prepared for
suc' emergencies as a,normal usage of materials" une*pected delays in delivery of
new supplies" etc. #'ile fi*ing t'is level we ordinarily take t'e following points
into consideration
>. &ime re(uired for o,taining fres' supplies
E. Luantity re(uired to ,e ensured of a certain level of production at a given
time
3. Possi,le une*pected re(uirement w'ic' cannot ,e avoided
?. Possi,le une*pected delays in getting t'e fres' supplies ,ecause of rains"
political situation" war" la,our trou,le" transport inade(uacy" etc.
D. &'e o,jective of fi*ing up t'e order level is to re-stock t'e materials at t'e
lowest cost ensuring at t'e same time t'e uninterrupted operation of t'e
manufacturing unit2,usiness organiation.
. t may" 'owever" ,e pointed out t'at t'e order (uantity is determined ,y
taking into account" t'e supplier5s discount" rate of consumption" price of
t'e material" storage cost" danger of deterioration and o,solescence ,esides
t'e availa,ility of funds" space availa,le for storage and preservation
facilities. &'e loss due to inaAterruption of operation will also 'ave to ,e
e*amined. &'ese factors taken toget'er will determine t'e order (uantity"
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w'ic' in its turn affects t'e point at w'ic' t'e order level 'as to ,e fi*ed. t
is necessary to ,e definite a,out t'e order (uantity ,ecause t'e supplier 'as
also to ,e given sufficient time for making arrangements of t'e supply. &'e
larger t'e consignment" t'e greater will ,e t'e time taken ,y t'e supplier.
&'us t'e order (uantity 'as its own say in fi*ing t'e points of order )or re-
order+ level.
&'e two factors t'at determine t'e appropriate order point are t'e procurement or
delivery time stock w'ic' is t'e nventory needed during t'e lead time )i.e." t'e
difference ,etween t'e order date and t'e receipt of t'e inventory ordered+ and t'e
safety stock w'ic' is t'e minimum level of inventory t'at is 'eld as a protection
against s'ortages.
%everal factors determine 'ow muc' delivery time stock and safety stock s'ould
,e 'eld. n summary" t'e efficiency of a replenis'ment system affects 'ow muc'
delivery time is needed. %ince t'e delivery time stock is t'e e*pected inventory
usage ,etween ordering and receiving inventory" efficient replenis'ment of
inventory would reduce t'e need for delivery time stock. And t'e determination of
level of safety stock involves a ,asic trade-off ,etween t'e risk of stock-out"
resulting in possi,le customer dissatisfaction and lost sales" and t'e increased costs
associated wit' carrying additional inventory
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Reorder point % * = N 8 ) % * R* =+
#'ere
% 7sage in units
= =ead time in days
R Average num,er of units per order
8 %tock out acceptance factor
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Re+or!#g)
S*'eu"e Re+or!s) would make t'e sc'eduled reports w'ic' would ,e issued
fortnig'tly. &'e reports would ,e containing t'e details of production" mont'ly
cas' flow etc. for furt'er use in planning and control processes.
Error Re+or!s) would make t'ese reports to correct t'e invalid customer names"
incorrect totals and missing data during transaction.
O<6e*!;e )
&o provide t'e community wit' a common set of ,usiness processes and tools to
capture" integrate" manage and present timely nformation
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e%+o#!s )
&'e ntegrated Program Planning" %c'eduling and Reporting %ystem is a suite of
processes and tools to collect" integrate" analye and report t'e life cycle status of
& products to ,e deployed and sustained in t'e onstruction ndustry.
&'e !eployment %c'eduling ntegrated Product &eam &'e R% oversig't role
includes identification2resolution of conflicts" coordination of interdependencies
and resource s'aring opportunities.
a*grou# )
199( - MH% nformation Management Proponent ommittee directed t'e use of a
program tracking system to provide integrated deployment sc'edules and reports"
t'ere,y improving t'e management of MH% nformation
Management2nformation &ec'nology programs and associated & products.
199 - PP%R% ntegrated Product &eam )P&+ esta,lis'ed to facilitate t'e
development of project and program sc'eduling procedures" data standardiation"
,usiness processes and to promote effective program management skills and
practices t'roug'out t'e enterprise.
1999 - PP%R% we, application retooled to meet user re(uirements.
ompre'ensive sort parameters were added to allow users to (uery data ,y
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1asically an integrated reporting is t'e system in w'ic' can get information from
all t'e reports at lower level. %pecific to t'is project reports from la,our class to
%.$.5s etc. would ,e ,ase for integrated reporting for t'e ne*t level.
Com+u!er a++"*a!o#s)
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are ot'er applications too for mat'ematical calculations too. &oday we are 'aving
almost all applications w'ic' can provided us wit' every information retrieval or
storage.
Da!a *ommu#*a!o#s)
!ata communication is a integral part of today5s connected world. !ata can ,e
stored at any point of time and place ,ut retrieving it again w'en re(uired is again
a ,iggest (uestion.O 8or t'e same we 'ave developed many applications as well as
'ardware. &oday almost all t'e transactions are done t'roug' computers and
computer aided 'ardware or software. 8or e*ample today we can purc'ase" find
almost every t'ing on ### )#orld #ide #e,+ and it is just ,ecause of efficient
data communications we are a,le to do so.
8or small offices we 'ave H71 to connect P5% and server on network. Hu, is a
'ardware w'ere we put t'e data ca,les w'ic' are taken from a P )$t'ernet ard+
and so on. 1Y t'is 'ardware we are a,le to form a network of computers and
wit'in t'e <perating system we are 'aving a facility to identify eac' computer as
7ni(ue computer ,y giving logical names w'ic' in turn 'elps u to locate t'em.
8or ,igger offices w'ic' 'ave offices at different locations we use BP6 )Birtual
Private 6etwork+ w'ere all t'e offices are connected virtually and t'ey can use t'e
data w'ic' is kept at different locations like it is wit' t'em in t'e same computer.
6ote &oday we are 'aving wireless connectivity also w'ic' is ,een widely used.
Da!a. &'e raw material used to process information for decision making. !ata
represents specific individual facts from w'ic' a conclusion can ,e drawn. &'e
project planning data includes activities" resources" costs" documents" o,servations
and estimations.
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Da!a Coes. &'ere are a,,reviated data codes developed primarily to serve a
four-fold purpose
>. &o identify eac' work package2activity.
E. &o aid in t'e organiation of data in levels from t'e very detailed to ,road
levels.
3. &o ena,le t'e processing" sorting" e*traction and organiation of information
re(uired at various levels of management and functional units.
?. &o computerie t'e data processing system.
D. Da!a Da!e DD. &'e data recorded on date of monitoring performance. &'e
data recorded on data date separates actual )'istorical+ data from future
)sc'eduled+ data.
. De*so# Ne!,ors. t is a grap'ical met'od of analysing an outcome of a
series of interdependent possi,le courses of actions generated ,y t'e
decision making process. &'e field of applications of t'e decision network
in project management includes strategy" development" production planning"
manpower planning" ,udgeting" inventory planning" plan procurement and
its replacement decision.
C. De*so# Tree. t is a special case of decision network" w'ere t'e se(uential
decisions are drawn in t'e form of ,ranc'es of a tree" stemming from an
initial decision point and e*tending it to t'e final outcome.
Desg#)
Having assessed t'e feasi,ility of t'e computeried information system" we now
come to t'e design of t'e information K ,ase. &'e latter needs to ,e defined
according to
0 %ources
0 'aracteristics
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0 Purposes.
%ources can ,e single" dual or multiple and need careful identification ,y t'e
analyst in t'e design process. $mployees services system in an organiation may
'ave single data source as t'e accounts department" w'ile inventory management
system in t'e same organiation may 'ave dual source as stores department and
purc'ase department. &'e seismic processing system for oil e*ploration running
on 1M"BA and &P<% computers at de'ra dun depended for its input from
multiple sources of on- land e*ploration parties parities and t'e offs'ore sources
of %.%.Anves'ak. some valid (uestions a,out accuracy and relia,ility of data
inputs can ,e
• #'et'er t'e data are of real interest and importance to t'e sources
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computer program. urrent files can t'an ,e manipulated to update t'e master files
at infre(uent intervals" to produce output reports ,ased on permanent rate K
structure or valuation tec'ni(ue.
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#'ile data files are a ,ody of information organied for a particular application
)e.g." pay K roll file+" data K ,ase are a compre'ensive ,ody of unorganied
information )in t'e form of directory+" w'ic' may ,e selectively organied and
accessed to meet a ,road range of needs. &'e data-,ase management assumes t'e
information ,ase to contain all of t'e availa,le ,usiness information and provides
limitless options ,y specifying w'ic' portion is re(uired and in w'ic' order for
selecting" com,ing and accessing of t'e variety of information wit'out c'anging
t'e unordered nature of t'e data K ,ase itself. it assumes
ndependence of data-elements and reduce t'eir redundancy" ,ut is costlier to
maintain t'an t'e data files.
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8or designing a efficient system it is necessary for t'e user to design t'e system"
t'e flow of system. 8or t'e same t'ere are various aspect w'ic' we 'ave to take in
consideration w'en designing a system. &'ey are as follows -
The M!S specifications "ere designed "ith #$% hard disc, '()M* RAM, P# &
MS+ffice as soft"are-
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of materials. 'ave designed t'e specifications for t'e contractors and ot'er
outside agencies as well e.g. t'e time sc'edule of t'e work t'ey will 'andle and
t'e penalty clauses" if applica,le.
'ave designed my specifications of t'e materials stage wise. &'is will avoid any
type of pilferage during t'e construction tenure of t'e project. &o t'e ma*imum
'ave tried in my design not to 'ave e*cess storage of t'e materials as t'is leads to
t'e wastage of materials like cement ),ecause of its setting action+" steel )rusting
of steel+ after t'e 'anding over of t'e project. n totality conclude t'at my M%
design for t'e project is completely successful.
S%s!em e;e"o+me#!) 8or t'e system development of t'e 'ydel project we s'all
,e following t'e following steps
<wn staff
%taff of outside
agencies
#ork done ,y
own staff
Se+ara!e $"es $or
1illing for
$$ere#! a++"*a!o#s various activities
#ork done ,y
outside staff
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are as follows
• <ne to one
• <ne to many
• Many to many
n t'e management system of 'ydel project we s'all create files s'owing one
specific activity is to ,e done ,y one agency e.g. t'e completion of
superstructure s'all ,e done ,y a construction agency. &'is construction
agency s'all ,e assigned more t'an one jo,. Here I<ne to manyJ type of
relations'ip ,etween different entities s'all ,e 'elpful.
S%s!em a#a"%ss)
After t'e full and final c'anges and w'en t'e system is made to run" t'e system
'as to ,e installed at lients place and 'as to ,e tested wit' t'em. &'e client uses
t'e software and also let us knows t'e c'anges to ,e done. 8or t'e same work a
%ystem Analyst is t'ere w'o in turn analyses t'e w'ole system made and also
verifies and rec'ecks t'e w'ile code. He c'ecks for t'e routines and su,-routines
of eac' module. %ystem analyst c'ecks for t'e w'ole flow t'e system and t'en
accordingly" after reviewing it suggests or makes t'e c'anges to t'e design of t'e
w'ole system. &'e ,asic criteria of system analyses are to see t'at t'e w'ole
system runs smoot'ly and is error free. After successful completion and c'anges to
t'e system as suggested ,y t'e analyst t'e system is t'en deployed at t'e client
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Assignment no. 3
Management information system
Registration no.
end. %ystem analysis comes at t'e end of w'ole process w'ere t'e system is fine K
tuned for ,etter performance and usage.
Da!a +ro*ess#g)
F"o, *'ar!#g)
8low c'arts of t'e various jo,s2activities s'all ,e made on t'e weekly ,asis"
c'ecking t'e commitment ,y t'e agency for t'at specific jo,. f any activity is not
completed in t'e specified time it will 'ave to ,e overlapped in t'e second week
assuming it to ,e t'e responsi,ility of t'e concerned agency. After t'e t' week if
t'e same situation prevails for t'e delayed activity penalty clause will ,e
applica,le as per t'e agreement. &'e employer and t'e outside agency s'all sign
t'is agreement. &'is flowc'art s'all ,e made using t'e P.. software MRP
%ystem)Material Resource Planning+ and s'all make it very easy to maintain t'e
records of agencies 'ired and t'e jo,s done ,y t'em.
Page 3& of 3(
Assignment no. 3
Management information system
Registration no.
A2
A3
I@OGRAP0 )-
1. Practical M% )ndian $*periences and case studies+- 1anerjee and 7tpal
2. Materials Management K Qopalswamy.
3. Principles of M%- %cott Q.M.
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