Part 15

Applications of MIS
(Manufacturing Sector)

Third Year Information Technology

Tushar B Kute,
Sandip Institute of Technology &
Research Centre, Nashik
tbkute@gmail.com
 Personnel management
 Production management
 Financial management
 Material management
 Marketing management
 It has a primary function of providing suitable manpower
in number and certain ability, skill and knowledge, as the
business organizations demands from time to time.
 Its goal is to control personnel cost through continuous
increase in manpower productivity by resorting the
following techniques:
 HRD through training and upgrading the skills.
 Motivation through leadership and job enrichment.
 Promotion and rewards through performance appraisal.
 Structuring the organization.
 Personal application form
 Appointment letter
 Attendance and leave records
 Biodata
 Appraisal form
 Productivity data on jobs
 Wages / salary agreement
 Record of complaints, grievance, accidents
 Industry data of wage, salary structure
 Industry data on manpower, skill, qualifications
 Accounting
 Query
 Analysis
 Control
 Attendance
 Manpower
 Leave
 Salary/wages deductions
 Loans and deductions
 Accidents
 Production data
 Skills
 Biodata
 Family data
 Who is who?
 Strength of section, department, division
 Number of person with particular skills.
 Attendance, leave, absenteeism records of all employees.
 Salary/wages of employees.
 Designations and number persons holding these
designations.
 Personal records of employees..
 Analysis of attendance by class of employees.
 Leave analysis by a group of employees.
 Trend in the leave record.
 Analysis of accident and type thereof.
 Analysis of salary/wages structure.
 Analysis of overtime.
 Probable absence vs. workload.
 Projection of personnel cost against manpower increase.
 Assessment of accident records against safety measures
taken.
 Personnel cost vs. industry cost and its projection.
 Projection of manpower needs and evolving recruitment
and training programs.
 Statutory reports
 Information updates
 Operation updates
 Decision analysis
 Action reports
 Attendance record (Muster).
 Strength of employees by category- permanent,
trainees, apprentices.
 Provident funds, ESI reports, ledgers, returns.
 Accident reports.
 Income tax forms 16, 24A.
 Strength of employees to Director General of
Technical Development (DGTD)
 Daily attendance report
 Employee strength
 Joining and transfer of employees
 Personnel cost by department, job, product.
 Periodical statements showing cost by
salary/wages, overtime.
 Daily attendance to plan the workload.
 Overtime vs. work completed.
 Projected absenteeism and distribution of
workload.
 Cost of personnel job or work completed.
 Analysis of attendance for season, festival, and by skills,
scheduling of the jobs accordingly.
 Overtime analysis by department, employees and job to
decide the strength of personnel.
 Analysis of accidents and deciding on safety measures
and training.
 Cost analysis by personnel vs. jobs skills and planning
for new recruitment.
 Recruitment and additional manpower or
subcontracting of jobs.
 Acceptance of orders on the basis of workload.
 Reduction, transfer and reorganization of
employees to control costs.
 Preparation of training and development
programs with specific needs.
 Its function has a primary objective of meeting the
financial needs of the business, from time to time,
by the way of providing working capital and long-
term capital to run the business with the goal of
containing the cost of the capital at minimum.
 Declaration of audit financial results, submit all
reports and returns to the Government and Tax
authorities.
 Break-even analysis
 Cost analysis
 Cash flow projections
 Ratio analysis
 Capital budgeting and ROI analysis
 Financial modeling
 Management accounting
 Expense analysis, auditing and control
 Payments- to suppliers, authorities, employees,
shareholders, financial institutions and others.
 Receipts- from customers, authorities,
employees, shareholders, financial institutions
and others.
 Data from stock exchange of the share prices,
consolidated financial results of the other
companies.
 Accounting
 Query
 Decision analysis
 Control
 Sales  Income tax
 Purchase  Sales tax
 Salary / wages  Excise duty
 Inventory  Custom duty
 Expenses  Octroi
 Capital purchase  Consumption
 Fixed deposits  Budgets
 Shareholder’s funds  Fixed assets
 The query is processed for the following with
respective codes as keys-
 Main document
 Subsidiary account
 Location (Factory, Branch) etc.
 Document (Bills, Credit note, Delhi note, Receipt
etc.)
 Cash flow analysis
 Sources and uses of funds
 Debtors analysis and aging
 Creditors analysis and aging
 Budget analysis
 Ratio analysis and management norms
 Capital budgeting and ranking of investment alternatives.
 Cost analysis of various production inputs and alternatives.
 The control is exercised, based on the exceptions found
in the business organization-
 Accounts receivables, outstanding beyond the acceptable
norms.
 Advances to creditors and non realization of obligations.
 Valuation of non-moving inventory for disposal.
 Analysis of non-moving accounts and legal actions.
 Shortage of funds in excess of planned and rescheduling of
activities, priorities.
 Cost overruns beyond the norms and action on alternatives.
 Statutory reports
 Information updates
 Operation updates
 Decision analysis
 Action reports
 Tax returns
 Registers: sale tax, excise tax, tax deducted at source.
 Declaration of certain results to the financial institutions.
 Declaration of financial results to the public every six
months.
 Declaration of annual results to the board, shareholders,
and public within a stipulated time.
 Monthly trial balance, balance sheet and profit and loss account
 Stock valuation
 Accounts receivables and aging
 Accounts payables and aging
 Expenses on major accounts.
 Cash position
 Payments and receipts which are statutory obligations.
 Sales and purchase of assets by certain classification.
 Overall business achievements in major lines of business.
 Filling statutory returns and reports.
 Statutory payments such as advance tax, sales tax, octroi,
excise duty etc.
 Transactions executed and accounted in the system.
 Reports on finished goods, dispatches and invoicing.
 Reports on material receipts and payment to the
suppliers.
 Obligatory payments- rents, insurance premium,
membership fees, interest and dividend.
 Break even analysis for cost price detection.
 Returns of investment analysis for choice of investment.
 Trends analysis on price of selected commodities.
 Cash flow, sources and uses of funds.
 Analysis of current and fixed assets in terms of use and
decision on alternate use or disposal.
 Analysis of current liabilities and decision on liquidation
on priorities basis.
 Overdue receivables
 Legal action
 Termination of business association.
 Non supply of goods and services but advance paid.
 Legal action
 Revision of terms
 Termination of business association
 Payments to creditors, where penalties are involved.
 Poor usage of fixed assets and disposal.
 Non-moving inventory of more than two years and its disposal.
 Evolving new systems and procedures to control expenses and
implementation.
 The Objective of PM function is, to provide
manufacturing services to the organisation.
 This involves the manufacture of products of a
certain specified quality and within certain costs
in a stipulated time fulfilling the promises given
to the customer.
 The PM function is supported by other functions,
viz. Production Planning and Control, Industrial
Engineering, Maintenance and Quality Control.
 Production Programme
 Production Schedule
 Process Planning Sheet
 Job Card
 Job status advice
 Quality Assurance rating form
 Finished goods advice
 Breakdown advice
 Material Requirement
 Material Requisition
 Customer order
 Performed through Production Planning and
Control
 Bill of material processing
 Drawing and Process Planning
 Scheduling and Monitoring systems as support
systems
 Quantity of Production with respect to a time
period
 Material requirement and its usage
 Rejection quantity at each intermediate stage and
the final stage
 Breakdown incidence
 Labour complement with respect to a period
 Use of Power, fuel and Consumables.
 Machine and facilities utilisation
 Labour hours
 The queries in the PM relate to seeking of status of job or
information on fixed entities..
+ Status of the job or order in terms of stage and level of
completion
+ Production Programme and jobs schedules.
+ Load status on Machine, group of machines.
+ Status on availability of material.
+ Standard information on machines, tools, specifications.
+ Standard information on skills and capacities of each
worker.
+ Standard information on products and processes.
 Long term and Short term Period
 Make or buy
 Make or subcontract
 User of alternative material
 Use of alternative process
 Evolving optimum product mix/job mix
 Rescheduling and loading of jobs
 Planning and scheduling of jobs
 Selection of production facilities
 Selection of alternative maintenance policies
 The exceptions which need to be highlighted are:
 Excessive product rejection on account of material and/or

process.
 Hold up of key jobs beyond a certain limit.

 Excessive work in process inventory.

 Continued breakdown of the manufacturing facility beyond a

certain period.
 Utilisation of key facilities below a limit.

 Continuous significant deviation from standards or norms of

production rate.
 Backlog of a large number of orders and failure to meet

promised delivery date.

 Statutory Compliance
 Information Update
 Operations Updates
 Decision Analysis
 Action Update
 To provide material for production, maintenance
and services at economical prices, in an
appropriate quantity and quality with east
stockouts and with no extra cost of carrying the
inventory.
 The scope of materials management function is
procurement, stocking control of inventory.
 Purchase acquisition
 Purchase order
 Receipt of goods
 Return of goods to supplier
 Issue for production
 Return from production
 Certification of bill for payment
 Forecasting and planning
 Procurement
 Purchase ordering
 Goods receipt
 Issuing the material
 Processing of returns
 Bill passing and control
 Purchase quantity
 Issue quantity
 Stocks
 Good returns
 Rejections
 Performance
 Value of purchase
 Average or standard rate of accounting
 Query in material management largely centered around
price, supplier, stock and pending aspect of purchase,
returns and payments.
 It may be on item seeking the latest purchase price or it
may be on an item seeking price in a particular purchase
order placed on a particular supplier.
 Price of the item.
 Multidimensional analysis of the price.
 Stocking of items
 System for controlling items
 Fixed Order Quantity
 Reorder Level System
 Periodic Review System
 Inventory analysis
 A-B-C Analysis
 Production Analysis
 Capital blocked in the inventory
 Number of stock outs affecting the production
activity
 Reliability and dependability of suppliers
 Cost of purchase
 Statutory Compliance
 Information Update
 Operations Updates
 Decision Analysis
 Action Update
 Stock ledger
 Valued stock statement
 Octroi register
 MODVAT register
 Excise duty returns and registers
 Customs bond register
 Returns on tax deducted at source
 Price fluctuations and trend
 Information of alternative material with specifications and test
results
 New suppliers and sources of suppliers
 Current incidence of taxes and duties
 Value of inventory computed at standard price
 Performance of suppliers
 Stockouts
 Value of non-moving inventory
 Material required for next planning period.
 Daily goods received register
 Statement showing items in short supply or stockouts
 Reports on purchase acquisitions received but not
converted into purchase orders
 Statement on suppliers due but not yet received
 Statement on payment due to suppliers but not yet paid
 Statement of suppliers received and rejected
 Emergency procurement
 Revision of price
 Terms of supplies
 Disposal of inventory
 Cutting down the procedure of purchase
 Switching over to new supplier
 All the actions are centered around the
parameters mentioned in decision analysis.
 It deals with satisfying the consumer. The scope of function
starts from identifying the need of customer, evolving
product concept, designing the product, positioning the
product in market and selling in the appropriate price.
 Activities-
 Market research
 Consumer survey
 Advertising
 Sales promotion campaign
 Stocking of products
 Customer order
 Order acceptance
 Delivery note
 Invoice, credit note, debit note
 Accounting
 Query
 Decision analysis
 Control
 Product sale  Zone
 Product family  Area
 Sales value  Inventory
 Sales tax  Receivables
 Dealer  Market segment
 Distributor  Exports market
 Customer  Returns
 Excise duty  Complaints
 Handling customer complaints
 Pending position followed by stock exists for
allocation or not
 Whether manufacturing order is issued / status
 Single or multidimensional comparisons between
two product groups.
 Decision taken on
 Pricing
 Allocation of stocks to orders
 Discounts and commissions
 Deciding sale terms
 Decision building models
 Break even analysis model
 Risk analysis model
 Distribution model
 Network model
 Product launch model
 Correct ongoing operational performance
 Reset the direction trend in the development
towards desired goals and objectives
 Product positioning and pricing
 Choice of market segment
 Statutory reports
 Information updates
 Operation updates
 Decision analysis
 Action reports
 Sales tax register
 Returns
 Excise duty returns
 Product sales register
 Sales summaries
 Accounts receivables
 Orders received and accepted
 Sales analysis
 Aging of receivables
 Contribution analysis
 Market analysis
 Competition analysis
 Reports generated on various marketing operations, daily
transactions–
 Order book
 Dispatch report
 Inventory
 Invoice
 Customer complaints
 Complaints disposal
 Guidance for operating personnel as how they are
performing.
 It convey whether the desired/expected results are
realized or not.
 Pre and post-sales campaign
 Choice for alternative to customers
 New product launch
 Action reports
 Sales vs. budget
 Expenses vs. sales
 Sales growth vs. sales objectives
 Sales vs. market segment vs. budget
 Stock vs. budgeted stock levels
 Waman Jawadekar, "Management Information
Systems” , 4th Edition, Tata McGraw-Hill
Publishing Company Limited.

Tushar B Kute,
Sandip Institute of Technology &
Research Centre, Nashik
tbkute@gmail.com