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    MODULE 5MODULE 5

    Manufacturing andManufacturing and

    Service SystemsService Systems

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    SYSTEMS FROM A FUNCTIONALSYSTEMS FROM A FUNCTIONAL

    PERSPECTIVEPERSPECTIVE

    Introduction;

    IT in business, as there are business activities to bePerformed, business problems to be solved, & businessopportunities to be pursued.

    ISs are used to support each of the functions of thebusiness that must be Accomplished.

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    FUNCTIONAL

    BUSINESSSYSTEMS

    MARKETINGIS

    HRMIS

    FINANCE

    ISACCOUNTINGIS

    PRODUCTION/Mfg IS

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    Accounting ISAccounting IS

    A/C ISs are the oldest & mostly widely used IS in business

    Computer based A/C systems produce records & reports,

    the flow of funds through an org & produce important financial

    statements such as balance sheet & income statements

    Operational A/C systems emphasize legal & historical record

    keeping & the production of accurate financial

    Typically, these systems includes TPS such as order processin

    inventory control, accounts receivable, A/C payable, payroll &general ledger systems

    Mgt A/C systems focus on the planning & control of business

    operations, & analytical reports comparing forecasted to

    actual performance

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    Accounting Information System (AIS)Accounting Information System (AIS)

    AIS function is responsible for maintaining..AIS function is responsible for maintaining..

    1.1. Financial Records & ReceiptsFinancial Records & Receipts

    2.2. DepreciationDepreciation

    3.3. PayrollPayroll

    It is based onIt is based on Double EntryDouble Entry book keepingbook keeping

    concept.concept.

    Helps in generatingHelps in generating Balance SheetsBalance Sheets &&Income StatementsIncome Statements..

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    InIn Brief Summary of Six widely usedBrief Summary of Six widely used

    AISAIS

    i.i. Order Processing:Order Processing: Captures & processesCaptures & processescustomer orders & produce data for inventorycustomer orders & produce data for inventorycontrol.control.

    ii.ii. Inventory Control:Inventory Control: Process data reflectingProcess data reflectingchanges in inventory.changes in inventory.

    iii.iii. Accounts Receivable:Accounts Receivable: Records amount owed byRecords amount owed bycustomers & produces invoices.customers & produces invoices.

    iv.iv.

    Accounts Payable:Accounts Payable: Records purchases fromRecords purchases fromamounts owed to & payments for suppliers &amounts owed to & payments for suppliers &produces cash management reportsproduces cash management reports

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    ContndContnd....

    V.V. Payroll:Payroll: Records employee work &Records employee work &compensation data & produces paycompensation data & produces paychecks & other payroll documents &checks & other payroll documents &

    reports.reports.Vi.Vi. General Ledger:General Ledger: Consolidates data fromConsolidates data from

    other accounting systems & producesother accounting systems & producesperiodic financial statements & reportsperiodic financial statements & reports

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    Financial ISFinancial IS

    Computer based financial IS supports business

    managers & Professionals in decisions.

    1. The financing of a business

    2. The allocation & control of financial resources

    Cash

    Mgt

    Investment

    Mgt

    Capital

    budgeting

    Financial

    planning

    Financial

    IS

    Reports

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    Marketing & Sales ISMarketing & Sales IS

    Marketing is concerned with the planning, promotion, & sale of

    existing products in existing market.Business firms have increasingly tuned to IT to help them to

    perform vital marketing functions in the face of the rapid changesof todays environment.

    Marketing IS

    Interactive

    marketing

    Sales forceAutomation

    CRMSales

    Management

    MarketingResearch &forecasting

    Advertisement&

    Promotion

    ProductManagement

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    Input Transaction Documents Customer order Order acceptance

    Delivery note Invoice, credit note, debit note

    Accounting1. Product sale2. Sales value3. Sales Tax4. Dealer & distribution5. Zone & customer6. Excise duty &export market, etc

    Reports Information update Decision analysis Action update Operation update (customer complaints, order book, despatch rep

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    Manufacturing ISManufacturing IS

    IS used for operations of mgt & transaction processingSupport of all firms that must plan, monitor, & controlinventories, purchases & flow of goods & services.

    IS helping them toplan & control their operations.

    Mfg IS help companies to simplify, automate, &integrate the many activities which are needed to produceProducts.

    Examples;CAD & CAE, CAM

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    Production

    forecastingProduction

    scheduling

    Material

    Requirement

    planning

    Capacity

    planning

    Pro. Cost

    control

    Quality

    control

    Shop floor

    scheduling

    Shop floor

    control

    Machine

    control

    Robotics

    control

    Process

    control

    CAD

    CAE

    Com. Aided

    Process

    planning

    Product

    simulation &

    prototyping

    Mfg resource planning Mfg execution Engineering

    Systems system system

    ER

    P

    Computer Integrated Mfg

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    Input Transaction Documents Production programme Production schedule

    Process planning sheet Quality assurance rating form Finished goods list Material requirement Customer order

    Accounting1. Quantity of production with respect to a time period2. Material requirement & its usage3. Use of power, fuel & consumables

    Reports Information update

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    HRM ISHRM IS

    Systems maintain Employees records, Track Employeesskills, job performance, training, Employees compensation &

    Carrier development information by support planning.

    HR Systems Mgt Report

    Online queries

    Employees

    Master

    file

    Employees data (from various Dept) To pay roll

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    Input Transaction DocumentsInput Transaction Documents

    Personnel application formPersonnel application form

    Appointment letterAppointment letter

    Appraisal formAppraisal form Wage/salary agreementWage/salary agreement

    Record of complaints, grievances,Record of complaints, grievances,

    accidentsaccidents BiodataBiodata,, self & familyself & family

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    Accounting Attendance Manpower Leave Loans & deductions Skills Production data

    Control1.Probable absence versus workload2.Projection of personnel cost against manpower

    increase, etc

    Reports Information update

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    IS in BankingIS in BankingBanking is generally understood as a place where the financial

    services are offered, checking, savings, & providing credit tothe customers.

    The customers choose the bank mainly on the following 3 factors;1. The ease of doing business2. The quality of personnel & service

    3. The range of the financial service

    The MIS in banking industry revolves around this aspect. Thecustomer of the bank would like to know the status of the A/Cvery fast to make decision on withdrawals or payments.

    Hence the MIS is to be designed to identify, decide &design a service strategy for offering a distinctive service to thewide range of customers seeking a variety of service demand.the following points should be taken care of whiledesigning an MIS for a bank

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    Customer DBCustomer DB

    1. Customer1. Customer

    2. Operator2. Operator

    3. Range of Service3. Range of Service

    4. Class of customers4. Class of customers

    5. Working Hours5. Working Hours

    Service to the A/C holdersService to the A/C holders

    Service for business promotionsService for business promotions

    The index monitoring systemThe index monitoring system

    Human resource upgradeHuman resource upgrade

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    IS in HospitalIS in Hospital

    It is a missionary organisationIt is a missionary organisationestablished to provide health careestablished to provide health careservices to the needy with the mottoservices to the needy with the motto

    The hospitals may handle a personThe hospitals may handle a personwho is not a patient and hence wewho is not a patient and hence we

    call a person visiting a hospital acall a person visiting a hospital acustomercustomerand not a and not a Patient.Patient.

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    Hence, the customer profile wouldHence, the customer profile wouldincludes besides a patient, an associate ofincludes besides a patient, an associate of

    a patient, a consultant, a medicinea patient, a consultant, a medicinesupplier and so on.supplier and so on.

    The customer can easily discriminateThe customer can easily discriminate

    between the quality of care and quality ofbetween the quality of care and quality ofcaring, betweencaring, between treated medicallytreated medically andandbeingbeing treated personallytreated personally, between being, between beingserved at least cost and served withserved at least cost and served withefficiency an effectiveness.efficiency an effectiveness.

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    Todays hospitals use a lot of medical hardwareTodays hospitals use a lot of medical hardwareand software in health care activity.and software in health care activity.

    Health care based on diagnostic aids andHealth care based on diagnostic aids andassistance through an Xassistance through an X ray, scanning,ray, scanning,pathological tests, and knowledge base of casepathological tests, and knowledge base of casehistory etc.history etc.

    The role played by these aids is so vital andThe role played by these aids is so vital andimportant that is calledimportant that is called Medical EngineeringMedical Engineering

    The medical engineering has helped the medicalThe medical engineering has helped the medicalprofessionals to improve health care andprofessionals to improve health care and

    concentrate on diagnosis, prescriptions andconcentrate on diagnosis, prescriptions andtreatment.treatment.

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    Front end applicationsFront end applications

    Patient databasePatient database To handle theTo handle thequeries on the existing patients andqueries on the existing patients andthe patients treated and discharged.the patients treated and discharged.

    Medical server databaseMedical server database Name,Name,addresses, telephones , etc. of alladdresses, telephones , etc. of allmedical staff including doctors,medical staff including doctors,

    nurses, technicians. Holidays, worknurses, technicians. Holidays, worktimes, and locations on weekdays fortimes, and locations on weekdays forcontact.contact.

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    Resource planning and controlResource planning and control AnAnonline query facility to answer theonline query facility to answer thenumber of queries on the availability,number of queries on the availability,scheduling and rescheduling of thescheduling and rescheduling of theresources and the facilities.resources and the facilities.

    For judging the usage of the facilitiesFor judging the usage of the facilities

    and to put them in proper use.and to put them in proper use.

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    Medical case history databaseMedical case history database knowledge on the case history forknowledge on the case history for

    the guidance and research.the guidance and research.

    Monitoring the effect of theMonitoring the effect of thedrugs to judge the efficiency in termsdrugs to judge the efficiency in terms

    of the patients response.of the patients response.Analyse the health careAnalyse the health care

    demand and make planning for thedemand and make planning for the

    health service.health service.

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    BACK OFFICE APPLICATIONBACK OFFICE APPLICATION

    Core applicationCore application

    Man power and personnel planningMan power and personnel planning

    Hospital billing and recoveryHospital billing and recovery Inventory contol, planning and expiryInventory contol, planning and expiry

    date managementdate management

    Resource utilisation and analysisResource utilisation and analysis

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    MIS IN SERVICE SECTORMIS IN SERVICE SECTOR

    The mission in a service industry is ofThe mission in a service industry is ofproviding the most satisfying service toproviding the most satisfying service tothe customerthe customer

    IS IN HOTELINDUSTRYIS IN HOTELINDUSTRY Traditionally hotels are meant as place forTraditionally hotels are meant as place for

    convenience.convenience.

    Transition has taken place fromTransition has taken place from

    convenience to comfort, to enjoyment toconvenience to comfort, to enjoyment tototal service.total service.

    The hotel management always faces theThe hotel management always faces theproblem of providing the best distinctiveproblem of providing the best distinctive

    service to the customers.service to the customers.

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    The MIS for the hotel managementThe MIS for the hotel managementaddresses the issues of assessing theaddresses the issues of assessing thecustomer expectations and theircustomer expectations and their

    perceptions and fulfilling them in the bestperceptions and fulfilling them in the bestpossible manner.possible manner.

    The MIS, therefore, has the following theThe MIS, therefore, has the following theresponsibilities to provide the bestresponsibilities to provide the best

    information support.information support.1.Keep track of customers profile.1.Keep track of customers profile.

    2.Monitoring occupancy level.2.Monitoring occupancy level.

    3.Project future needs.3.Project future needs.

    4.Monitor the level of expectations.4.Monitor the level of expectations.

    5.Monitor the communication needs.5.Monitor the communication needs.

    6.Customer data base.6.Customer data base.

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    Module 5 EndsModule 5 Ends

    Thank You!Thank You!