Bachelor of Business Administration-BBA Semester II

BB0007 – Management Information Systems – 2 Credits

(Book ID: B0048)

Assignment Set- 1 (30 Marks)

Note: Each question carries 10 Marks. Answer all the questions.

Q.1 Explain the impact of MIS on HRIS with a neat diagram [10 Marks]

Answer: Human resource information system (HRIS) is a system that supports planning, control, coordination, administration and management of human resources of organisations. HRIS also includes a large number of subsystems that address the information needs of various human resource functions. They provide managers with information, policies, and procedures concerning recruiting, layoffs, employee evaluation, promotion, termination, transfer, salary equity monitoring, job descriptions and responsibilities, training etc. Since HRIS also facilitate vital information on matters such as payroll, central and state taxes, health benefits, child care, grievance procedures, and other personal information that affects the employees personal and professional lives, it is imperative that these systems be highly responsive to employee needs. The HRIS is derived from the strategic business plan, the strategic human resources plan, and the strategic information plan as shown below

Impact of MIS

Since MIS plays a very important role in the organisation, it creates an impact on the organisations functions, performance and productivity. The impact of MIS on the functions is in its management. With a good MIS support, the management of marketing, finance, production and personnel becomes more sufficient. The tracking and monitoring of the functional targets become easy. The functional managers are informed about the progress, achievements and shortfalls in the activity & targets. The manager is kept alert by providing certain information indicating the probable trends in the various aspects of business. This helps in forecasting and long term perspective planning. The manager’s attention is brought to a situation which is exceptional in nature, inducing him to take action or a decision in the matter. A disciplined information reporting system creates a structured database and a knowledge base for all the people in the organisation. The information is available in such a form that it can be used straight away or by blending and analysis, saving the manager, some valuable time. MIS creates another impact in the organisation, which relates to the understanding of the business itself. MIS begins with the definition of a data entity and its attributes. It uses a dictionary of data, entity and attributes respectively, designed for information generation in the organisation. Since all information systems use the dictionary, there is common understanding of terms and terminology in the organisation bringing clarity in communication and also a similar understanding of an event in the organisation. MIS calls for systemization of the business operations for an effective system design. This leads to streamlining of the operations, which complicate the system design. It improves the administration of the business by bringing a discipline in its operations, as everybody is required to follow and use systems and procedures. This process brings a high degree of professionalism in the business objectives. Since the goals and objectives of MIS are the products of business goals and objectives, it helps indirectly to pull the entire organisation in one direction towards the corporate goals and objectives by providing the relevant information to the people in the organisation.

A well designed system with a focus on the manager makes an impact on the managerial efficiency. The fund of information motivates an enlightened manager to use a variety of the tools of management. It helps him to resort to exercises such as experimentation and modeling. The use of computers enables him to use the tools and techniques, which are impossible to use manually. The ready-made packages make this task simpler. The impact is on the managerial ability to perform. It improves the decision making ability considerably.

Q.2 a. Explain the basic steps of the control process with a neat diagram [5 Marks]

b. Consider an example of your own business and explain the characteristics of MIS with respect to your example. [5 Marks]

Answer: 2a.

Planning, organizing, directing and controlling are the various steps in the management process. All steps prior to a control are necessary but are not necessarily self-assuring the results unless it is followed by a strong control mechanism. Management experts have viewed these steps as management control system. A definition of control is the process through which managers assure that actual activities conform to the planned activities, leading to the achievement of the stated common goals. The control process measures a progress towards those goals, and enables the manager to detect the deviations from the original plan in time to take corrective actions before it is too late. The basic steps of the control process are shown in figure below:

The management is a systematic effort to set the performance standards in line with the performance objectives, to design the information feedback systems, to compare the actual performance with these predetermined standards, to identify the deviations from the standards, to measure its significance and to take corrective actions in case of significant deviations. This systematic effort is undertaken through the management control system. A reliable and effective control system has the following features:

(a)Early warning mechanism: This is a mechanism of predicting the possibility of achieving the goals and standards before it is too late and allowing the manager to take corrective actions.

(b)Performance standard: The performance standard must be measurable and acceptable to all the organisations. The system should have meaningful standards relating to the work areas, responsibility, and managerial functions and so on.

(c)Strategic controls: In every business, there are strategic areas of control known as the critical success factors. The system should recognise them and have controls instituted on them.

(d)Feedback: The control system would be effective, if it continuously monitors the performance and sends the information to the control center for action. It should not only highlight the progress but also the deviations.

(e)Accurately and timely: The feedback should be accurate in terms of results and should be communicated on time for corrective action.

(f)Realistic: The system should be realistic so that the cost of control is far less than the benefits. The standards are realistic and are believed as achievable. Sufficient incentive and rewards are to be provided to motivate the people.

(g)Information flow: The system should have the information flow aligned with the organisation structure and the decision makers should ensure that the right people get the right information for action and decision making.

(h)Exception principle: The system should selectively approve some significant deviations from the performance standards on the principle of management by exception.

Answer: 2b.

The Basic characteristics of an effective Management Information System are as follows:

I. Management-oriented: The basic objective of MIS is to provide information support to the management in the organization for decision making. So an effective MIS should start its journey from appraisal of management needs, mission and goal of the business organization. It may be individual or collective goals of an organization. The MIS is such that it serves all the levels of management in an organization i.e. top, middle and lower level.

II. Management directed: When MIS is management-oriented, it should be directed by the management because it is the management who tells their needs and requirements more effectively than anybody else. Manager should guide the MIS professionals not only at the stage of planning but also on development, review and implementation stages so that effective system should be the end product of the whole exercise in making an effective MIS.

III. Integrated: It means a comprehensive or complete view of all the sub systems in the organization of a company. Development of information must be integrated so that all the operational and functional information sub systems should be worked together as a single entity. This integration is necessary because it leads to retrieval of more meaningful and useful information.

I V. Common data flows: The integration of different sub systems will lead to a common data flow which will further help in avoiding duplicity and redundancy in data collection, storage and

processing. For example, the customer orders are the basis for many activities in an organization viz. billing, sales for cashing, etc. Data is collected by a system analyst from its original source only one time. Then he utilizes the data with minimum number of processing procedures and uses the information for production output documents and reports in small numbers and eliminates the undesirable data. This will lead to elimination of duplication that simplify the operations and produce an efficient information system.

V. Heavy planning-element: The preparation of MIS is not a one or two day exercise. It usually takes 3 to 5 years and sometimes a much longer period. So the system expert has to keep 2 things in mind – one is that he has to keep future objectives as well as the firm’s information well in advance and also he has to keep in mind that his MIS will not be obsolete before it gets into action.

VI. Sub System concept: When a problem is seen in 2 sub parts, then the better solution to the problem is possible. Although MIS is viewed as a single entity but for its effective use, it should be broken down in small parts or subsystems so that more attention and insight is paid to each sub system. Priorities will be set and phase of implementation will be made easy. While making or breaking down the whole MIS into subsystems, it should be kept in mind that the subsystems should be easily manageable.

VII. Common database: This is the basic feature of MIS to achieve the objective of using MIS in business organizations. It avoids duplication of files and storage which leads to reduction in costs. Common database means a “Super file or Master file” which consolidates and integrates data records formerly stored in many separate data files. The organization of the database allows it to be accessed by each subsystem and thus, eliminates the necessity of duplication in data storage, updating, deletion and protection.

VIII. Computerized: MIS can be used without a computer. But the use of computers increases the effectiveness and the efficiency of the system. The queries can be handled more quickly and efficiently with the computerized MIS. The other benefits are accuracy, storage capacity and timely information.

IX. User friendly/Flexibility: An MIS should be flexible i.e. there should be room for further modification because the MIS takes much time in preparation and our environment is dynamic in nature. MIS should be such that it should be used independently by the end user so that they do not depend on the experts.

X. Information as a resource: Information is the major ingredient of any MIS. So, an MIS should be treated as a resource and managed properly

Q.3 a. Explain the conversion process of data with a diagram. [3 Marks]

b. Explain the different components of IRM [4 Marks]

c. Explain how you would make the best utilization of the 6 steps of processing a transaction in your company. [3 Marks]

Answer: a.

The conversion process of data into decision is shown in the figure below.

From the above figure, it is clear that information consists of data that has been retrieved, processed or otherwise used, for informative purposes. Information contains an element of surprise, reduces uncertainty and triggers off action. For planning, information requirements of decision makers can be classified into three types:

(1)Environmental Information: Environmental information requirement can be further classified and described as follows:

(a) Government policies: Information about Government policies or financial and tax affairs, political stability, etc. is required and may have a significant effect on future planning decisions.

(b) Economic trends: It includes information about

(i) Economic indicators like employment, productivity, capital investment;

(ii) Prices and wage levels which affect all regardless of product or services;

(iii) GNP level, trend and consumer disposable income.

(c) Technological environment: The information on technological changes or advancements is necessary for forecasting such changes in the firm and their probable effects on the same. It is also desirable to assess the effect of technical changes on new products and processes.

(d) Factors of production: These include information about the source, cost, occasion, availability, accessibility and productivity of the major factors of production such as

(i) Labor

(ii) Materials and spare parts

(iii) Capital.

(2)Competitive Information: Competitive information requirement can be classified and described as follows:

(a) Industry demand: This refers to the demand forecast of the industry for the product manufactured or about the area in which the firm is operating.

(b) Firm Demand: This implies assessment of the firm’s capabilities, activities and potentialities to meet demand relative to the capabilities and actions of the competing firms.

(c) Competition: This includes information about competing firms for forecasting own product demand and making decision and making decisions and plans to achieve the forecast. Such information falls into three categories:

(i) Past Performance: It encompasses information concerning profitability, return on investment, market share etc. which help to provide a yardstick for setting performance objectives for future.

(ii) Present Activity: Under this heading comes information concerning competitor’s price strategies, advertising campaigns, product mix, changes in distribution channels, etc. which help to evaluate one’s own weakness or strengths.

(iii) Future plans: Information concerning new products, R&D efforts, availability of raw materials, etc. which helps to decide future plan comes under this head.

(3)Internal Information: It is the by-product of the normal operations of a business. Generally, it is historical or static in nature; internal information is aimed at identification of the firm's strengths and weaknesses. It includes the following:

(a) Sales forecast: Since all other internal plans of the firm are guided by the sales plan, it is considered as the dominant planning premise internal to the firm.

(b) Financial plan: Information on financial or budget plan is important because it represents a quantitative and time bound commitment about the allocation of total resources like employees, plant, materials, overheads, administrative expenses of the firm. It provides information about a number of sub-plans of the firm and it acts as an important link between all activities of the firm.

(c) Supply factors: Information concerning availability and limitations of certain supply factors such as labor, capital, plant and equipment is important as these factors play a vital role in developing the financial and subsidiary plans for achieving firm's objectives.

(d) Policies: Long-term basic policies on product range, marketing, finance and about personnel do not permit flexibility in developing alternative courses of action in the short-run.

Answer: b.

There are 3 general components of an IRM and are as shown below:

(a)Data Processing: In the traditional system environment, information resources are synonymous with data processing. In organisations where Information has a broader charter, data processing systems continues to play a significant role. Development of major applications, ongoing operations of production systems, operation of the corporate database and cost control over major system expenditures are part of data processing.

(b)Telecommunications: Traditionally, data communications have been the responsibility of the data processing operations while the voice communications were assigned elsewhere. The advances in communications technology support corporate wide communications capabilities that integrate voice and data communications. Data communications are also integral component of both data processing and office automation applications.

(c)Office automation: This component typically began as the word processing function under the responsibility of office administrators. Intelligent workstations integrate word processing with data processing and frequently involve access to the corporate database. Local area networks and wide area communications are key components for integrating office automation functions and providing access to data processing facilities.

Answer: c.

Transaction processing systems were among the earliest computerized systems. Their primary purpose is to record, process, validate, and store transactions that take place in the various

functional areas of a business for future retrieval and use. A transaction processing system (TPS) is an information system that records company transactions (a transaction is defined as an exchange between two or more business entities).Transaction processing systems (TPS) are cross-functional information systems that process data resulting from the occurrence of business transactions. Transactions are events that occur as part of doing business, such as sales, purchases, deposits, withdrawals, refunds, and payments. Transaction processing activities are needed to capture and process data, or the operations of a business would grind to a halt.

Process of Transaction Processing System

The six steps in processing a transaction are:

a. Data entry

b. Data Capture

c. Data validation.

d. Processing and revalidation.

e. Storage

f. Output generation

g. Query support

a. Data Entry: To be processed, transaction data must first be entered into the system. There are a number of input devices for entering data, including the keyboard and the mouse. Documents generated at the point where a transaction occurs are called source documents and become input data for the system. For example, when a customer returns an item at a store, the sales receipt becomes the source document for the transaction "return item for refund". The use of automated methods of data entry is known as source data automation.

Methods for Data Entry:

• Keyboard/video display terminals

• Optical character recognition (OCR) devices, such as optical scanning wands and grocery check-out scanners.

• Magnetic ink character recognition (MICR) devices, such as MICR reader/sorters used in banking for check

• Other technologies, including electronic mice, light pens, magnetic stripe cards, voice input, and tactile. Input also be used as input device depending upon the application requirement

b. Data Capture: We could capture transaction data as close as possible to the source that generates the data. Salespersons capture data that rarely changes by prerecording it on machine-readable media, or by storing it on the computer system.

Tips for Data Capturing

• Captures data directly without the use of data media by optical scanning of bar codes printed on product packaging. It ensures the accuracy and reliability of data by comparing

c. Data Validation: There are two steps in validation: error detection and error correction.

Error detection is performed by one set of control mechanism, and error correction is done by another. Some commonly used error detection procedures are checking the data for appropriate font (text, numbers, etc.), checking for aberrations (abnormalities) (values that are too low or too high), and checking for missing data, invalid data, and inconsistent data. Missing data refers to fields that are missing a mandated data value. For example, if the number of hours worked by a part-time employee is missing on a payroll form; that is a missing-data error.

Invalid data is data that is outside the range. For example, if the number of hours worked by a part-time employee is 72hours per week instead of the 1120 hours, then we have invalid data

Inconsistent data means that the same data item assumes different values indifferent places without a valid reason. For example, if payroll records show that an employee worked 25 hours per day.

d. Processing and Revalidation: Once the accuracy and reliability of the data are validated, the data are ready for processing. There are two ways to process the transactions: online and batch mode. Following methods are available for Data Processing:

•Online transaction processing (OLTP) is the almost instantaneous processing of data. The term online means that the input device is directly linked to the TPS and therefore the data are processed as soon as it is entered into the system. Input device may be at a remote location and be linked to the system by networks or by telecommunications systems. Some examples of online transaction processing are ATM transactions, student registration for classes, flight reservations.

•Batch Processing: Transactions are accumulated over time and processed identically. Batch processing may be done on a daily, weekly, or monthly basis or any other time period appropriate to the application. For example, a company may process the travel expenses of its employees on a monthly basis, whereas batch processing usually involves gathering source documents originated by business transactions, such as sales orders and invoices, into groups called batches. A transaction file contains information about a group of transactions that occurred in a given period of time. It is processed using techniques such assorting, merging, and so on. Once the transaction file has been processed, the next step is to update the master file, which is permanent record of all transactions that have occurred. Each time the master file is updated with information from the transaction file, a new master file, including most current transaction data, is generated.

e. Data Storage: Processed data must be carefully and properly stored for future use. Data storage is a critical consideration-for many organizations because the value and usefulness of data diminish if data are not properly stored. The next step in the processing of a transaction is to output the results of the transaction to the decision maker.

f. Output Generation: Once data has been input, validated, processed, revalidated and stored, the output can be communicated to decision makers in two ways:• Documents and reports• Forms: screens or panels. Documents are a popular output method. They can be processed further, either to generate additional information or to present the same information in a different format. Some examples of documents are invoices, paychecks, purchase, invoices, sales receipts, and job orders.

A document is usually a record of one transaction, whereas a report is a summary of two or more transactions. For example, the manager of a retail store may receive an invoice (i.e., a document) from a supplier indicating the quantity and type of each item ordered and the total cost of the order. A report, on the other hand, may summarize all the invoices from a given supplier. Computer output need not always be presented in hard-copy form (such as reports, documents, and printouts), but can also appear on computer screens and panels. Such soft-copy presentations are known as forms

g. Query Support: The last step in processing a transaction is querying the system. Query facilities allow users to process data and information that may otherwise not be readily available. For example, a sales manager may query the system for the number of damaged items in a given store. Many transaction-processing systems allow you to use the Internet, intranets, extranets, and web browsers or database management query languages to make inquiries and receive responses concerning the results of transaction processing activity. Typically, responses are displayed in a variety of pre-specified formats or screens. Examples of queries include:

• Checking on the status of a sales order

• Checking on the balance in an account

• Checking on the amount of stock in inventory Transaction processing systems are responsible for capturing, storing, and providing access to the basic data of the organization. The goal is to capture the transaction data as soon as possible. Common collection methods include

•Point-of sale services

•Process control

•Electronic data interchange

•Electronic commerce websites.

Bachelor of Business Administration-BBA Semester II

BB0007 – Management Information Systems – 2 Credits

(Book ID: B0048)

Assignment Set- 2 (30 Marks)

Note: Each question carries 10 Marks. Answer all the questions.

Q.1 a. What are the limitations of MIS? Explain the different types of decisions [10 Marks]

Answer 1 a.

Management Information system is defined as an integrated system (Systematic and Structured) which provide information for effective decision making in an organisation.

According to Henry C. Lucas´ MIS is a set of organised procedures which when executed provide information to support decision making.

A Management information system is a valuable tool company management uses to judge the effectiveness of their business operations. The MIS provide detailed insight to certain operations of a company and also assist management with making critical decision.

Once information is provided through the MIS, decision can be made regarding the effectiveness of business operations. Limitation do exist with an MIS, such as the expenses to create and implement on MIS, training time for employee, lack of flexibility and capturing wrong or incomplete information.

The main limitation of MIS is as follows

1) MIS expenses: MIS implementation can be very expensive for companies looking to manage their operations more effectively. The cost of this followed by the installation costs can be extremely expensive for large companies.

2) Employees Training: Properly trained employees are a critical part of an MIS. Employees are at front lines of business operations and create or manage the daily activities of the company. If an MIS finds a system flow or management decides to change a process based on the MIS information, re-training employees will usually be required.

3) MIS Flexibility: Once an MIS is created and installed in a company, it may prove to be an inflexibility system. Making changes quickly to reflect fluctuating business operations may not be possible depending on the MIS style and functionality. Major business changes will require major changes to the MIS leading to increased costs and downtime of information reporting.

4) Information Flow:-The biggest flow an MIS can have is pulling incorrect information for management. This problems results in wasted time and money for the company, leading to another review of MIS to correct the information flows.

5) The MIS is conceived as a data processing and not as an information processing system.

6) The MIS does not provide the information which is indeed by the managers but it trends to provide the information generally the function calls for . In that case, it becomes an impersonal system.

7) Inadequate attention to the quality control aspects of the inputs, process and the output leads to insufficient checks and controls in the MIS.

8) The MIS is developed without streamlining the transaction processing system in the organization.

9) As the users of information and the generators of data are different, lack of training would make MIS ineffective.

10) The MIS does not give perfect information to all the users in the organisation because every user has a human ingenuity, bias and certain assumptions which are not known to the designer. MIS takes into account only quantitative factors.

11) MIS cannot provide tailor-made information packages which are suitable for every type of decision made by executives.

12) Effectiveness of MIS decreases due to frequent changes in the top management, organisational structure and the operational team.

13) Incomplete update of the data base affects the reliability for all users.

14) Obtaining the acceptance and support of those who will interface with the system is at times a problem.

15) Due to redefined periodicity of MIS reports, it might be possible that information reaches the managers quite late and at times too late.

Different types of Decisions

The decision making systems can be classified in a number of ways. There are two types of systems based on the manager's knowledge about the environment. If the manager operates in a known environment then it is a closed decision making system. The conditions of the closed decision making system are:

(a) The manager has a known set of decision alternatives and knows their outcomes fully in terms of value, if implemented.

(b) The manager has a model, a method or a rule whereby the decision alternatives can be generated, tested, and ranked for selection.

(c) The manager can choose one of them, based on some goal or objective criterion.

Few examples are a product mix problem, an examination system to declare pass or fail, or an acceptance of the fixed deposits.

If the manager operates in an environment not known to him, then the decision making system is termed as an open decision making system. The conditions of this system in contrast closed decision making system are:

(a) The manager does not know all the decision alternatives.

(b) The outcome of the decision is also not known fully. The knowledge of the outcome may be a probabilistic one.

(c) No method, rule or model is available to study and finalise one decision among the set of decision alternatives.

(d) It is difficult to decide an objective or a goal and, therefore, the manager resorts to that decision, where his aspirations or desires are met best.

Deciding on the possible product diversification lines, the pricing of a new product, and the plant location, are some decision making situations which fall in the category of the open decision making systems.

The MIS tries to convert every open system to a closed decision making system by providing information support for the best decision. The MIS gives the information support, whereby the manager knows more and more about environment and the outcomes, he is able to generate the decision alternatives, test them and select one of them. A good MIS achieves this.

The types of decisions are based on the degree of knowledge about the outcomes or the events yet to take place. If the manager has full and precise knowledge of the event or outcome which is to occur, then the decision making is not a problem. If the manager has full knowledge, then it is a situation of certainty. If he has partial knowledge or a probabilistic knowledge, then it is decision making under risk. If the manager does not have any knowledge whatsoever, then it is decision making under uncertainty.

A good MIS tries to convert a decision making situation under uncertainty to the situation under risk and further to certainty. Decision making in the Operations Management is a situation of certainty. This is mainly because the manager in this field has fairly good knowledge about the events which are to take place, has full knowledge of environment, and has predetermined decision alternatives for choice or for selection.

Decision making at the middle management level is of the risk type. This is because of the difficulty in forecasting an event with hundred per cent accuracy and the limited scope of generating the decision alternatives.

At the top management level, it is a situation of total uncertainty on account of insufficient knowledge of the external environment and the difficulty in forecasting business growth on a long term basis. A good MIS design gives adequate support to all the three levels of management.

Q.2 When you are given to develop a computer based information system for banking, how do you write the SDLC diagram? Explain the five phases with respect to banking. [10 Marks]

This software will be provided as a tool to the HSBC BANK. The BANK has been working for Accounts information, Withdrawal (through Cash/Cheque). Deposit amount. In this Software you can keep record for daily Banking transactions.

THE OBJECTIVE is to prepare a software or application, which could maintain data & provide a user friendly interface for retrieving customer related details just in few seconds, with 100% accuracy. Software is completely computerized, so it is not time consuming process. No paper work required & can be implemented further.

The application should also facilitate the addition of new Customer A/c, deletion of A/c& modification of existing customer A/C. To Search for every individual accounts for a particular customer, show all transaction & any account should be opened with minimum Rest. 500 etc.

The structured sequence of operation required imaging developing and Making operational a new information system it’s a cycle because the System will need replacement and Development, cycle will begin.

Phases of SDLC

System Analysis, System Design, Coding, System Testing, System Implementation, System Maintenance.

System Development Life Cycle System development life cycle is a process of developing software on the basis of the requirement of the end user to develop efficient and good quality software. It is necessary to follow a particular procedure. The sequence of phases that must be followed to develop good quality software is known as SDLC.

The software is said to have a life cycle composed of several phases. Each of these phases results in the development of either a part of the system or something associated with the system, such as a test plan or a user manual. In the life cycle model, called the “spiral model,” each phase has well-defined starting and ending points, with clearly identifiable deliverables to the next phase. In practice, it is rarely so simple.

As with most undertakings, planning is an important factor in determining the success or failure of any software project. Essentially, good project planning will eliminate many of the mistakes that would otherwise be made, and reduce the overall time required to complete the project. As a rule of thumb, the more complex the problem is, and the more thorough the planning process must be. Most professional software developers plan a software project using a series of steps generally referred to as the software development life cycle. A number of models exist that differ in the number of stages defined, and in the specific activities that take place within each stage. The following example is a generic model that should give you some idea of the steps involved in a typical software project.

Analysis of user requirements: During this stage, the problem is defined so that a clear understanding can be gained of what the system should do, i.e. what the inputs to the system

are, what the output should be, and the operational parameters within which the system is expected to work. If the new system is to replace an existing system, the problem may be defined in terms of the additional or enhanced functionality that is required.

Program design: In this stage, a solution to the problem is designed by defining a logical sequence of steps that will achieve each of the stated system objectives. Such a sequence of steps is often referred to as an algorithm. Some of the methods used to define program Algorithms are described later in this section, and include flowcharts and pseudo code. These tools allow the program designer to break a given problem down into a series of small tasks which the computer can perform to solve the problem. The user interface will also be designed during this stage, and will determine how input is obtained, how output is displayed, and what controls are available to the user.

Program coding: This stage, sometimes known as the implementation stage, is where the algorithms are translated into a programming language, and tends to be the longest phase of the development life-cycle. In this case, we are using Visual Basic to write the program.

Documentation and testing: The documentation of the program fulfils two main objectives. The first is to provide a technical reference to facilitate ongoing maintenance and development of the software itself. The second is to provide user documentation, i.e. a set of instructions that inform the user about the features of the software and how to use them. The aim of software testing is to find any errors ("bugs") in the program, to eliminate those errors (a process known as "debugging"), and as far as is reasonably practicable should be sufficiently rigorous to ensure that the software will function as expected under all foreseeable circumstances.

Operating and maintaining the system: Once the software has been "rolled out" and any necessary user training has been completed, it will be necessary to monitor the performance of the system over time to ensure that it is behaving as expected. The system will need to be maintained, and parts of it will need to be upgraded from time to time to handle evolving user needs or to cope with new problems. Eventually, as the system ages, it may no longer be able to adequately cope with the demands of a growing number of users, take advantage of advances in hardware technology, or adapt to a constantly changing environment. When this time comes, the system will need to be decommissioned and replaced by a new system. Hence, the software development life cycle will begin again.

Q.3 a. Company database consists of

Several departments and each department have a manager.

Several employees work for a department.

A department may have several locations.

Each department may have several locations.

Each department controls several projects.

We store each employee’s name, SSN, address. An employee is assigned to one department but may work on several departments. We keep track of the number of hours per week that an employee works on each project.

We need to keep track of employee department information for the purpose of insurance etc.

Construct a relational model for the above company database. [5 Marks]

The Relational Model is a clean and simple model that uses the concept of a relation using a table rather then a graph or shapes. The information is put into a grid like structure that consists of columns running up and down and rows that run from left to right, this is where information can be categorized and sorted.

The columns contain information related to name, age, and so on. The rows contain all the data of a single instance of the table such as a person named Yogesh.

In the Relational Model, every row must have a unique identification or key used to allocate the data that will follow it. Often, keys are used to join data from two or more relations based on matching identification.

Here is a small example of the grid like Relational Model:

Employee_Name SSN Emp_ID Emp_Address

Sukhbindar Singh 835439 212514 Barrackpore Court,Santasree Pally, Kol-120Santanu Banerjee 883213 213229 24 Rabindra Palli, naskar Hat, Kol-39

Ashim Modak 886543 520939 Netaji pally , Palta , kol 72Dipika Datta 886025 522049 403/1C, Haridevpur, Vivekananda Sporting Club, MG Road Kol-82Surajit Das 885662 577297 55, Nayapally, Belgharia. Kol-700056Joy Saha 835057 576683 Rath tala Belghoria kol-56

Debarati Acharya 885714 577785 4/1/C/2/1 Shitala Mata Lane Baranagar kol-90Sudipta Paul 885721 577892 2DSouth sithi road,kol-50

Anjel Chatterjee 885724 577788 Bipinpal Road, ShyamaPrashsd Nagar,Nimta Kol-49Abhishek Dasgupta 883204 561937 N.A-27,Arjunpur(N),Kol-59 Near Nager Bazar, Dum Dum

Manager Department Department_Location Project1_Assigned

Abhishek Mukherjee Bengal_Prepaid Kolkata KSUKHBINDAR0503

Abhishek Mukherjee Bengal_Prepaid Siliguri WSANTANU2304

Umesh Kumar Mallah Kolkata_Escalation Asansol WASHIM2611

Ratul Sikdar Bengal_Prepaid BBSR WDIPIKA1612Ratan Pal Kolkata_Prepaid BBSR WSURAJIT0607Ratan Pal Bengal_Quality Kolkata WJOY0607

Kartick Deb Bengal_Prepaid Kolkata WDEBARATI1403Partha Samaddar Bengal_Prepaid Siliguri WSUDIPTA0607

Ashik Hossain Bengal_CRT Siliguri WANJEL0607Abhishek Roy Bengal_Pospaid Kolkata WABHISHEK1108

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{Please note that this table is a signle table, due to spcae constraint this has been broken down, in MS access or Oracle this will be placed in a siggle table format}

The Relational Model can often also include concepts known commonly as foreign keys, foreign keys are primary keys in one relation that are kept in another relation to allow for the joining of data.

An example of foreign keys is storing your mother's and father's social security number in the row that represents you. Your parents' social security numbers are keys for the rows that represent them and are also foreign keys in the row that represents you. Now we can begin to understand how the Relational Model works.

Like most other things the Relational Model was born due to someone’s need. In 1969 Dr. Edgar F. Codd published the first use of the relational model though it was meant to be no more then a report for IBM, if swept across and through data analysis unlike any before it.

Codd's paper was primarily concerned with what later came to be called the structural part of the relational model; that is, it discusses relations per se (and briefly mentions keys), but it does not get into the relational operations at all (what later came to be called the manipulative part of the model).

Codd’s discovery, his creation was a breath of fresh air for those digging through data banks, trying to categorize and define data. When he invented this model he truly may have not foreseen what an incredible impact it would have on the world of data.

Some believe there is a great deal of room for improvement where the Relational Model is concerned. It may be a surprise to find not everyone supported relational model. There have been claims that the rectangular tables do not allow for large amounts of data to be recorded.

With the example of apples and oranges, both are fruits and therefore related in that way but apples have different attributes then oranges, At times a user may only want to see one or the other, then again the may want to view both. Handling this type of data with the relational model can be very tricky.

b. What are the areas in your company where you wish to use MIS? Explain why. [5 Marks]

MIS has a wide application in various fields of business. Almost all these fields will have some data to be managed. With the growing complexity of the business more robust MIS system is required to maintain these data so that information can be pulled out at any point of time. The areas of business where MIS has a wide application are mentioned below:

1 Accounting Information Systems: Accounting is the most important service activity in business. Accounting is mainly concerned with the collecting, recording and evaluation of financial data and then, communicating this information to the management and other people.

It is viewed as an information system since it has inputs (financial data), processes (evaluation of data) and outputs (financial statements). All organisations need systematic maintenance of their records that help in the preparation of the financial statements such as Profit & Loss account and Balance sheet.

Many types of account books and financial statements can be generated by a financial accounting system. In manual system of accounting, maintaining of account books in a prescribed manner is called Book Keeping, while preparation of financial statements based on the account books is called financial accounting. However, in computerised system of

accounting, no such distinction is found and a financial accounting system generates both account books and financial statements.

The major objectives for implementing a computerised financial accounting system for an organisation are

· Maintaining account books

· Preparation of a general ledger

· Generating accounts receivables & accounts payable statements

· Generating Profit & Loss account and Balance sheet

· Generating updated financial data for other systems

2 Geographical Information Systems: A geographical information system (GIS) is a computer based system that stores and manipulates data that are viewed from a geographical point of reference. This system has four main capabilities:

· Data input

· Data storage and retrieval

· Data manipulation and analysis

· Data output

Although there are many manual GIS, only computer based systems are considered here. A GIS is one of the powerful and versatile tools as it can create information by integrating different data, sometimes from different sources, and then displays the data in different ways to the end user. Geography plays an important role in many business decisions, since 85% of corporate data involve a number of business decisions, such as store locations, sales territories, sales promotions and regulatory compliance, rely heavily on geographical data.

Awareness of this has led many software vendors to embed mapping technology in their products so that users can produce maps easily. The number of business applications of GIS has grown significantly in the last few years.

For example, a GIS allows a bank to compare deposits with loan approvals in a given area and show that loan approvals meet regulatory standards in areas with deposits. In essence, GIS is an excellent decision making tool that integrates geographical data with other business data. For organisations with a customer focus, a GIS provides clear profiles of customers and their needs; hence these tools can be integrated with any of the functional areas of the business already

discussed. The ability to integrate different data, analyse their impact on the customer, and integrate the findings in organisational decision making is one of the key factors of GIS.

3 Human Resource Information Systems: Human resource information system is a system that supports planning, control, coordination, administration and management of human resources of organisations. HRIS also includes a large number of subsystems that address the information needs of various human resource functions. They provide managers with information, policies, and procedures concerning recruiting, layoffs, employee evaluation, promotion, termination, transfer, salary equity monitoring, job descriptions and responsibilities, training etc.

Since HRIS also facilitate vital information on matters such as payroll, central and state taxes, health benefits, child care, grievance procedures, and other personal information that affects the employee’s personal and professional lives, it is imperative that these systems be highly responsive to employee needs. The HRIS is derived from the strategic business plan, the strategic human resources plan, and the strategic information plan

4 Inventory Information Systems: Inventory refers to the stock of raw materials and finished goods available in the firm for production and sale. All organisations need an efficient system to maintain and control the optimum level of investment in all types of inventories. An inventory control system ensures that proper stock levels of each item are maintained. The improper stock levels (low or high) cause the following problems:

· Low inventory of raw materials leads to idle time in a production process and hence, causes wastage of resources like labor, power, and equipment etc., needed for production. It may also lead to decrease in sales due to out-of-stock especially during periods of peak demands.

· Low inventory of finished goods leads to backorder, lost sale and loss in goodwill of the company due to out-of-stock positions.

The major objectives for implementing a computerised inventory control in an organisation are:

· Maintaining an optimum level of raw materials and finished goods inventory

· Preparation of purchase orders and inventory status reports accurately and on time

· Preparation of various analysis reports

· Generation of MIS reports that help management for making effective and timely decisions

· High inventory of raw materials and finished goods leads to unnecessary investments and hence, causes a financial burden on the firm.

5 Manufacturing Information Systems: Manufacturing information system is a system that supports the manufacturing functions of purchasing, receiving, quality control, inventory management, material requirements planning, capacity planning, production scheduling, and plant design. It applies to both manufacturing and service environments. Hence, the term manufacturing should be considered in terms of delivering both goods and services.

Production systems, a subset of manufacturing information systems, are directly associated with the production of goods and services. It specifically addresses information needs relating to raw materials, equipment, manpower and other issues directly related to production of goods and services. Generally, the primary decisions made in the manufacturing include product design, production, facility design and quality control.

6 Marketing Information Systems: Marketing strategies consist of a mixture of ingredients that has been named the marketing mix: product, promotion, place and price.

Collectively they are known as the four P’s. Product is what the customer buys to satisfy a perceived want or need. Promotion is concerned with all the means of encouraging the sale of the product, including advertising and personal selling. Place deals with the means of physically distributing the product to the customer through a channel of distribution. Price consists of all the elements relating to what the customer pays for the product.

Philip Kotler has identified three types of marketing information: Marketing intelligence: information that flows into the firm from the environment

· Internal marketing information: information collected within the firm

· Marketing communications: information that flows from the firm outward to the environment.

A marketing information system can be defined as a computer-based system that works in conjunction with other functional information systems to support the firm’s management in solving problems that relate to marketing the firm’s products. Two elements in the definition make key points. First, all of the functional information systems must work together, and second, the problem-solving support is not limited to marketing managers. Thus, a marketing information system is a system that meets the information needs of an organisation in sales, distribution, advertising, market analysis, market intelligence, product research, service management, customer profile, and other marketing functions.

Since marketing information systems are primarily customer-oriented information systems, the systems work toward realising the strategic sales plan and the marketing plan of an organisation.

7 Quality Information Systems: Quality information systems are standalone systems or embedded systems that help an organisation to achieve its quality goals. The quality plan is derived from the strategic information plan.

The role of IS may vary from one organisation to the next, or even from one program to the next, but there are four major areas where IS plays an important role in the certification process. They are: partial systems overhaul, full systems overhaul, training, and oversight. In a partial systems overhaul, existing systems are partially revamped in order to update them and make them more responsive to the changing needs of decision makers. Partial systems overhaul may include providing users with better interfaces, better end-user support, or better integration of existing systems.

In a full systems overhaul, the old system is replaced with a new system. This may sometimes be necessitated by outdated equipment or systems that can no longer be updated or maintained.

Training is another area where IS can play an important role in quality certification. Users must be well trained in systems that are partially or fully overhauled, because this has a direct impact both on quality and on productivity. More important, good data come from well-trained users and good data form the basis of good decisions. Overall, the information systems should oversee the entire quality certification process; this is often a time consuming task. It requires coordination and cooperation among departments; IS can play a facilitating role by ensuring the free flow of information between decision makers. Often, organisational data and information have to be sent to external agencies and IS plays a critical role in getting the right data to the right people at the right time.

8 R&D Information Systems: Advances in information technology have spawned specialised information systems in many other business areas. The significant area receiving considerable attention is R&D. R&D has long been recognised as an information-intensive activity that is usually, responsible for evolving a stream of new products and production process innovations for the organisation. R&D is responsible for creating and developing new products or services in order to capitalise on recognised opportunities.

R&D may also be responsible for overcoming recognised weaknesses in current organisational production and operation processes in order to make them more efficient, cost-effective, and competitive. Because of this mandate and the potential of R&D to provide the organisation with competitive advantage, many researchers suggest that R&D information systems should be considered to be strategic information systems. Like many other organisational systems, R&D is an open system that has important information and communications exchanges with the external environment and other organisational subunits.