The Application of Mis in Honda

7/29/2019 The Application of Mis in Honda

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The Application Of Mis In Honda

Introduction

Management Information system is a kind of system which helps in providing information to theorganization so that they can run efficiently. MIS can be regarded as a subset of the whole

internal control processes in an organization which consists of the documents, applications ofpeople, technologies and processes that are used by management accountants which they use for

solving business problems like pricing or costing the service or product (Bidgoli, 2010).

Management Information System is different from the other kinds of information systems

because they are applied in analyzing the operational activities of the organization. Rationally,MIS is used for referring the group of information management techniques applied together for

the support of decision making process in a business which is Expert Systems, Executive

Information Systems and Decision Support systems (Lucey, 2005).

Honda

A manufacturing organization

Honda is the world largest producer of the motorcycles and internal combustion engines that aremeasurable by volume mainly producing more than fourteen million internal combustion engines

each year.

With the progress of Honda in the manufacturing sector, it has also generated astounding amount

of data. Even though IT departments have an advantage over the improvement in the hardware

components for storing large amount of data, but still the fact gap exists in the Honda to met

the needs of useful data at aright time to make effective and efficient decisions.

For Honda, getting right kind of information is important in todays environment which it wasnot required before, therefore reducing costs, enhanced productivity and maximization of profits.

Managers of Honda have to administer the intricacy of the supply chain, internal control and

manufacturing as well as meeting the customer and distribution demands. In todays businessenvironment manufacturers are forced to make effective decisions on a regular basis with the

limited information system. Honda has to face mounting globalization, increased competitionthan before and customers whose needs are reflected in their own facts and opportunities of a

global market.

Besides maintaining proficient business, Honda has grown its emphasis on the informationtechnology. With the rising needs for partnership, connectivity and speed in the modern

economy, Honda has started looking for ways to give authority to their employees so that they

can work smartly to compete with their competitors in the current market scenario. Any businesswithout the information technology is failed to deliver competitive edge and is just wasting the

potential of their human resource. Honda observes this change and adopts useful hardware and

software in their company.


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MISinformation across various departments

With the advent of time, internet and the global economy has got so well with each other suchthat there is requirement of proactive plans to be implemented in the organization, thereby,

constant connection of employees to the web and with each other.

Most of the IT departments are spending their time on budgeting personal computer equipments,

but making choice for the Hondas network hardware infrastructure seems to be a criticaldecision. When planning for the network infrastructure for Honda, it is vital to consider the

issues like how employees will share access to the information, which of the data is important

and how to maintain it, what is the actual demand; is it for wireless computers? And what are

your plans for integrating peripherals. Hondas hardware pattern is the basic element for driving

employees connectivity and collaboration. (Bocji, 2005)

Performance and price are the key determinants which are there to dictate from where to beginthe search. The present scenario for the hardware system consists of wide variety of providers or

manufactures like Juniper, Foundry, Cisco and many more. The MIS systems from the topmanufacturers are useful in providing implausible security and performance but it could be

expensive for the company. Honda maintains the balance between the price and performance forsmartening up their hardware equipments. Many companies are there who specialize in

providing price efficient businesses through brand name network hardware equipment. For the

purchase of new hardware equipment, Honda needs to look its eyes open for the alternatives thatbest suits to their company profile. Even, proper search should be made regarding potential

services and additional support with the hardware equipments purchase. It should be certain that

the hardware manufacturer should have a brand name while keeping in mind the organizations

decisions and interests.

The tools of the management information system help the organization and its workforce inperforming the jobs which are related to the processing of information. The collaboration of

business systems and MIS is useful in decision making as it collates the production reports and

business data.

Application of MIS in Honda

Helps in decision making

With the presence of computer everywhere, it is hard for any business to escape from the use of

IT systems. Some of the fields or departments are there in HONDA where MIS is priceless.

While computers are not able to create strategies of their own but still they can help mangers of

the organization in efficient decision making process and make them understand the usefulnessof strategies. MIS is capable of converting data into useful information which can be employed

in decision making. Even, MIS assists Honda in providing performance reports and financial

statements which is functional for planning, supervising and implementation of plans.


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MIS also aids Honda in collating valuable information and transform it into rational reports

which otherwise be useless as it is impossible to manage volumes of data manually. With thehelp of these reports, Honda can recognize trends and patterns which would be impossible if all

the work is done physically. MIS systems make use of the raw data to run replication and answer

a variety of theoretical questions such as what if concerning modification in strategies. For

instance, MIS can tell Honda about the effect of alterations in price on the sales of their cars. Dueto the Decision Support Systems, Honda can be enabled to make more of the informed decisions

within the organizations which otherwise would be impossible without MIS.

Data collection

Even though MIS helps in collating numerable amounts of business information, but they are

also useful for providing saving time benefit to the employees. In contrast with the past where

files are to b handled manually, now MIS quickly examines the data after entering it into the

computer through data processor. Thus, enhancing faster decision making in the organizationwhich is reflect in the efficient working.

Information system

Everyday business require some or the other kind of information system in the organization.With the computerized system recording and business process management is vital to run the

company at a profit as well as responding to the fluctuations in the market. Managementinformation system, however, are perfect for gathering and reporting information related to the

companys business process. MIS enables Honda to review the data and make use of theinformation for achieving the companys objectives. (Clarke, 2007)

Management methods

The information provided by the MIS help the managers to look at the areas or departmentswhere there is need for the improvement (Pearlson, nd). What will be the techniques and

approaches for correcting the business activities will lie on the part of mangers abilities and style

of management that is practiced in the organization. By making use of de-centralizedmanagement approach, line mangers are able to make corrections quickly as it requires a great

amount of autonomy in the management process. With the centralized management approach,

the power and authority lies with the top management only so that they can take decisions

(Stone, 2002).

Resource management

MIS system allows Honda to look at the utilization of resources and see if they are making use of

the resources in a proper and efficient manner. Equipments, raw materials, assets, labor and some

other are the examples of management resources that must be supervised and monitoredregularly by the organization. With an inefficient use of resources company may be pulled back

in the competitive environment and may loose competitive edge over the competitors. This also

leads to the losses for the company by reducing profit margins and lessening sales.


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Decision process

Many of the companies make use of some sort of decision processes when they gathered

information from the MIS system. Every single unit of data is reviewed and is used to make

decisions regarding operational activities, market trends, profit margins etc. the process of

decision making consists of all the levels of management, tends to generate most well-informeddecisions (Wright, 2009).

Communication

Appropriate communication allows managers to take decisions for the organizations based on the

information provided by the MIS. Communication system permits top-level managers to discuss

the data from the front-line managers and department level managers, thus, creating downward

flow of the communication for making decisions. Upward flow of communication is alsoimportant for the decision making process which allows front-line managers to have an

opportunity to discuss the information from MIS with the top level management. Open

communication flow allows Honda to obtain input or information from all the levels of themanagement to make informed decisions obtained from the MIS system.

Environmental management

With the establishment of the business in the global environment, Honda is planning to introduce

environmental management system for continually improving the practices to be done for theprotection of environment. With the MIS system, Honda is getting proactive to acquire

environmental management ISO 14001 certification for the production processes and other

services. (Garson, 2003)

Kinds of MIS

Financial MISthis MIS states the past and present records of the Honda and its activities. Thefinancial MIS shows the profits and losses of Honda, its financial records to represent how well

company is going, decisions regarding control of the cost and spending of funds.

Manufacturing MISthis MIS monitors the flow of goods and services, raw materials and

components of Honda. Raw goods which are processed on Honda get monitored by this

manufacturing MIS. In this way, Honda with the aid of manufacturing MIS can reduce andcontrol the cost of goods and services.

Marketing MISthis MIS is created for handling all the aspects of marketing like prices, sales,advertisements, product innovations, future decision making etc. Marketing MIS aids decisions

regarding product appearance of the Honda. It helps the company in enhancing customer

contacts by preparing questionnaires for the feedback by customers about the services of Hondaand tracks out the spending habits of the customer.

Human Resource MISHR MIS helps Honda in recruiting and selection of candidates. HumanResource views the requirements of the workers, hiring procedures, workforce rules, and training


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and performance assignments. The task for the Hondas Human Resource MIS is to look at MIS

also deals with the external and internal information or data. The information regarding the

internal working of the Honda can be easily available from the companys network, for e.g.,sales for each car. The information of the external environment can be collated from:

MIS is however, different from information system and data processing system (Lauden, 2007).Operational information systems just read the collated data and perform the tasks like producing

lists of stuff that are required for re-ordering. Data processing systems helps in recording dailytransactions like sales of Honda cars in a particular month. Whereas MIS assist the managers in

analysing and evaluating the data related to the sales to show the pattern and trends of diverse

product lines, enabling them to make efficient decisions regarding the product and its promotionor whether the promotion should be discontinued. It even collects the external data:

Data on the population shiftswith the increase in age of the people, they are less likely to be

interested in customizing cars.

Intelligence about competitors activities this information can be gathered from thenewspapers, articles or from market intelligence.

Government Legislationif there is increase in minimum wages, then financial condition wouldchange.

Economic and Social Factorssales for the cars would fall in a particular area where theemployer had closed its plant.

MIS even collates the data regarding formal and informal flow of the information

Formal Flow of information is the one in which a process is accepted, e.g. downloading the salesfigures across the several branches. External information can be gathered through data collectionagencies like Bradstreet and Dun which provides economic data for the commercial and

academic organizations. Formal flows of information can also be collected from the people who

are working on the similar document at different locations, by making use of company intranetsand e-mails.

Informal flows of information are provided through reading newspapers or articles, chancemeetings, or by watching news. The medical care and payroll of the employees.

Facilitation Decision Making at Three Tiers of Management

Management Information System even provides Honda the information on the regular basis. The

term MIS implies three main functions Arrangement, Purpose and Order. The information

system is useful for various purposes and at various levels. Its main uses are:

It helps in strategic planning and its implementation.

It lessens or reduces the service cycles


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Enhances the productivity of the employees resulting in efficient working

Better understanding of consumer needs and demands

Lessening the product development and marketing life cycles

Smoothening the progress of Honda business and re-engineering process.

The use of MIS can be applied across the administration for

Carrying the procedures of policy making

Carrying the research and development

Recognizing the kinds of risk and ways for managing it

Meeting the necessary legislative and regulatory requirements

Assessing performance, achievements and quality

Enabling the efficient and effective use of resources

Supporting reliable and quick decision making

Providing facts for business transactions

The process of decision making is fundamental at various levels in Honda. These are made

within the Honda at Strategic, Programs, Operational and Activity level. MIS at Different Levelsof Management in Honda:

Senior Managementit directs the senior management for planning strategic business plan,provides information for the positioning of the Honda business, implementing policies and plans,

analysis of competitors and evaluation of performance of the employees and the external factors

which have an influence over the direction of strategic plans.

Middle level of Managementat the middle level, MIS assists managers in performing

operational and organizational functions by providing:

Assessment of resource usage

Data for operational planning

Data for delivery procedures

Information for synchronization of work units


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Ways for controlling budget and problem solving

It also allows middle level management for program administration by

Providing data for implementing procedures

Managing resource usage

Scheduling of project and plans

Providing information for administrating programs

Line Managementit allows line managers to manage activities of Honda by providing

Information for problem solving

Data for making consistent decision making

And information for routine service delivery

MIS plays an important role for providing information to the mangers to perform the above

functions so as they can make informed decisions (Oz, 2009). The main purpose of the

Management Information System is the transformation of data from external and internal sourcesinto useful and valuable information which can be used for making effective decisions.

A manger can take two kinds of decision which can be either structured or unstructuredstructured decisions are repetitive decisions and are taken routinely regarding the replacement of

a supplier or stock. Whereas unstructured decisions need proper insight into the problem,knowledge and evaluation for carrying the business processes.

Mangers have to go through different stages while considering the related decisions

Identify the problemthe MIS provides information regarding the performance of the

departments and where the actual problem is arising

Mull over the solutionproper use of spreadsheet to know the issue like what if Scenario

The solution so chosen is based on the information provided by the MIS and mangers

experience.

The solution is then implemented and reviewed. At this level, MIS again provides the data

according to which solution can be evaluated.

MISAn Efficient Mean to Manage Business Process


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Business process management can be termed or defined as the series of activities that are

implemented in business organizations ranging from planning, leading, organizing, monitoringand controlling (Jeston, 2008). The five major functions of managers of Honda are

Planningthe directive functions for the company like where it is going to operate, diversifying

etc

Organisingit deals with the organising of the resources like space, people, services andequipment.

Coordinatingit requires the coordination of the activities of different departments of Honda

Decision Makingwhat decisions should be taken for the growth of Honda, its products andservices, employees and its IT department

Controllingsupervising and monitoring the activities of various departments of Honda

As a leading company in this global environment, Honda has to face several challenges for

managing thousands of its existing parts and at the same time qualifying, sourcing and approvingnew products. With the increase in competitive pressure, Honda has chosen management

information system for managing their business process in association with qualifying and

sourcing new raw materials so as to meet the critical requirements for scheduling (Magal, 2009).

Problems

New parts are being sourced constantly causing duplication in the organization.

Existing parts are required to be updated with the altering specification.

For the substitute parts, time consuming search has to be done

Solution

With the employment of management information system, the duplication of parts is easily

recognized, thus reducing surplus inventories or stocks.

With the automation of vendors and raw materials and parts, the business process of Honda has

shown efficiency

Search is now become simpler as qualified vendors are supplying parts

Benefits

It provides vision to the managers to see backlogs and buyer workloads

Now time required for sourcing the parts have been reduced due to MIS


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The suppliers and vendors are continually managed while assuring accuracy and reduction in

cost at the same time.

The schedules for the new products are met on time and is exceeded by reshuffling the business

process

With the enhancement of Business processes in Honda, there is need for more efficient

production processes. With the improved and better information and data on the businessprocesses, there is a closer approach to enhance the supply chain management which includes all

the processes ranging from the sourcing of the raw materials to the production and allocation of

the finished products. As a result of the improvement in management of supply chain, Honda isable to response efficiently to the changes in the market. With the efficient implementation of

MIS, Honda is able to react rapidly to the external environment as well as MIS enable the

organisation to render better and efficient service and products to be able to move ahead of their

competitors and enjoying larger share of the market.

While MIS is extremely helpful to generate data analysis and statistical reports, it is also usefulfor creating Management by Objectives tool. MBO is an administrative procedure through which

managers and their subordinates and co-workers concur on the sequences of objectives to be

achieved within a set time frame for the employees. Objectives are set with the SMART

approach, that is, the goals should be specific, measurable, agreed, realistic and time-specific.

The main purpose of SMART objectives is to give basic indicators through which an

organization can judge or evaluate the performance of their employees. To make MBO a success,it is necessary to track the progress rate consistently. For this purpose, MIS system is best to

make use of. As all the SMART objectives are measurable as mentioned in its name, the progress

can be tracked with the help of management reports which are to be analyzed by the policy

makers.

Conclusions

Every organization consists of one or more than one core competency, that is, to have a

competitive edge over their competitors. With the application of proficient management

information system, Honda has better chances to be ahead of their competitors. MIS providesnecessary tools to Honda to better understand the enterprise and the external environment or the

market.

Management information system is an approach set out of internal control that helps Honda

management in operating business day after day. It is just not a tool used for collating theinformation but allows the managers of Honda in the process of decision making that are used bythe management.

With the employment of MIS in the organization, Honda has found many benefits of it in thesystem. MIS assist Honda in describing its objectives and its resources. It even permits the

managers of Honda for creating reports about the activities of the company regarding products

and services, business partners, people, employees and inventories. It helps in keeping the


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resources of Honda in an organized manner. MIS track the records of resources and maintain the

in an organized way.

References

Bidgoli, H (2010), MIS (2010), United States: Sage Publications Inc

Bocji, P. & Chaffey, D., (2005) Business Information Systems: Technology, Development andManagement in the E-business: Prentice Hall

Clarke Steve (2007): 'Information Systems Strategic Management: an integrated approach',Routledge Printing, USA & Canada

Garson, G. (2003), Public Information Technology, London: Idea Group Publishing

Jeston, J & Nelis, J (2008), Business Process Management (2nd ed.): Britis Cataloging- in

Publication Data

Laudon & Laudon, (2007), Management Information Systems (10th ed.): Prentice

Hall

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The Application of Mis in Honda

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