Application of MIS in HONDA

1. 12/15/2014
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Application of MIS
in HONDA
[Document subtitle]
Presented by – Pragnya Sahoo
Course Name – BB7579 - Strategic Information
Systems Management
Student ID – K1359395
Word count -2924
Date of Submission -15th December 2014

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Table of Contents

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Management Information Systems
Executive Summary
This report evaluates the information system in Honda along with its various business
processes. Honda being among the top companies in Automobile industries uses information
technology to drive its business from internal and also external aspects. It has been using IT
for various business processes .From innovation to research and developemet, It as played a
vital role in the company. Even though IT systems have an impact on the improvement in the
various hardware components for storing data, still the “fact gap” lies in the Honda to fetch the
right information at the right time with the right cost for effective and efficient business process.
This report then explains the application of Management Information System(MIS) in various
departments of Honda like manufacturing , production, information management , resources
management and data collection. It discusses the different types of MIS that can be installed
and which leads the company to achieve its prime objectives.
A ground research on Honda Motor Cycle and Scooter plant was carried out to understand
the business process involved and also the over functioning of the company. Further
information was added by the assistant manager (AM) of Honda plant, Manesar, Gurgaon,
India who helped me understand the functioning of the various departments and the
stakeholders. The Head of the departmemt, Mr sudhanshu Maharana provided me with the
information about the IT department of the company . It also explained the various IS and IT
systems that are currently operating in the company.
The paper discusses various frameworks to implement the idea of MIS .It reflects the benefits
of using the technology with the present IT systems in the company .Its highlights the various
types of information at various management level that are useful for smooth functionaing of
the business process. An example of MIS implementation in the organization is also explained
with the required diagrams.
It further analyses employees, vendors, shareholders and customers as the stakeholders of the
company and details out its tangible and intangible benefits.
Finally the report delivers the potential recommendation for implementing MIS in Honda and
summarizes its importance in the conclusion.

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Introduction
Information Technology (IT ) has become the backbone of every business plan. From huge
multinational corporations to small business units, IT has made its presence everywhere. The
increasing growth of Information technology has tremendous impact in automobile industries
which has taken it to another level of innovation , automation and creativity. It has been more
than a decade that the IT systems have been reflecting the cutting edge technology of products
and services offered by automobile industries.According to D&M IS Success Model,’’ The
semantic level is the success of the information in conveying the intended meaning. The
effectiveness level is the effect of the information on the receiver. In the D&M IS Success
Model, “systems quality” measures technical success; “information quality” measures
semantic success; and “use, user satisfaction, individual impacts,” and “organizational
impacts” measure effectiveness success.’’
Management Information System or MIS, is broadly defined as a computer-based information
system that helps the management to plan, forecast and organize operations in an organization.
It is also defined as an integrated system which provides information support for operations
and efficient decision making. Accoridng to Bidgoli(2010),’’It acts as a subset of the entire
internal control processes which consists of the documents, applications, technologies and
processes that are used by management for collecting and analysing data’’ . ‘’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).’’ The figure 1.1 displays a
brief understanding of MIS.
Figure1.1 Definition of MIS

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The characteristics of MIS are considered as essential factors for the efficient implementation
of MIS which is to report with fixed and standard information; to have reports developed and
implemented using information system. In addition, external data are used by the MIS while it
is not captured by the organisation (Asemi, Safari & Zavareh, 2011)..
Honda - Joy of manufacturing:
Honda motor co.ltd is a Japanese public multinational corporation which belongs to the top
listed companies in the automobile industry. Primarily known as a manufacturer of
motorcycles, automobiles and power equipment. It is the largest manufacturers of motorcycles
and produces more than 14 million internal combustion engine every year.
With its expansion in business, Honda also generated huge amount of data which had to be
stored and processed. This data was very essential and informative which was used among
various internal departments in the organization. For Honda, getting the right information at
the right time is the need of the hour which helps in wise and quick decision making thereby
enhancing the productivity, reducing cost and maximizing profits. Honda has an information
system which enables the employees at various level to access the information. Honda’s
hardware pattern is the basic element for driving employee’s connectivity and collaboration.
(Bocji, 2005)
According to Tom Smith, co-founder of data research firm oxford consultants for Social
Institution, ‘‘Part of the power of data lies in combining multiple sources-open data, internal
data and data held by the customers, partner organizations and vendors to help target services.’’
A model of information management system is shown in figure 1.2.
Figure 1.2 Model of Information System in Honda
MIS provides Honda with the right kind of information system to achieve its objectives and
maintain proficient business. It will help the Honda management to administer the complexity
and elaborateness of the supply chain, internal control and manufacturing along with meeting

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the market’s demands. MIS provides information in effective decision making which is a prime
need of the hour for Honda.
Earl’s Multiple Methodology
According to Michael Earl (1989), IT provides many new business opportunities by improving
the productivity and performance of the services and products, and developing new business
and offering a competitive advantage to the companies; Management Information System has
the capability of enhancing the information flow between various departments in an
organization thereby delivering better business processes to achieve its objectives. Figure 1.3
illustrates the three approaches that the company needs to apply to this methodology to the
Management Information System (MIS).
Figure 1.3 Earl’s methodology

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MIS ApplicationinHONDA
The MIS application is across various processes and departments which generates better
productivity and profit. The figure 1.4 shows an overall application of MIS in Honda.
Figure1.4 MIS Application
The following are the MIS application in Honda:
 DATA COLLECTION: Honda follows a traditional methods of storing and managing data
in hardcopies and files which are not only consumes space but also it’s a troublesome
to manage them. MIS provides a data processor which not only stores data but also
processes them into useful information which can be further used effectively.
 INFORMATION MANAGEMENT: Every organization needs some kind of information on a
regular day to day basis. MIS not only helps in gathering the required information related to
business processesbutalso enables Honda to review the data and use it effectively for achieving
the company’s objectives. The MIS will be very useful during the annual auditing of the
company and generating reports. The following is a sample report of MIS.Management
information system, however,are perfect for gathering and reporting information related to the
company’s business process. MIS enables Honda to review the data and make use of the
information for achieving the company’s objectives. (Clarke, 2007)

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 PRODUCTION MANAGEMENT: One of the major application of MIS is production
management. It is carried out in various processes such as production planning , comtrolling ,
billing of raw materials , stoage of inventory etc. The following figure 1.5 demonstrates an
overall application of MIS in production management.
Figure 1.5 Application of MIS Production Managment
 Strategic Information:
 this is a type of information needed by the top level of management.
 A strategic decision by the production mangamenet is starting up a new
plant.
 Strategic information is essential to the marketing department to
understand the market and gain competitive advantage.
 Tatical Information:
 This type of information is needed by the middle level management
which helps them in taking magerial level decisions
 This information is used to recognise the bottleneck analysis in the
production environment.
 Opearational Information:
 This types of information is needed by the lower level of organization
which helps them to take operational related decisions.

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 The information is essential in quality assurance and delivering
products with minimum errors.
 EFFICIENT COMMUNICATION: Proper communication between the departments
enables the higher management to take decisions based on the data and information
provided by MIS. It creates a upward and download flow of communication between
the higher managers and front –line mangers for efficient decision making. ‘According
to Sudhanshu Maharana , Head of the IT department , Honda Motorcycle and scooter
plant, India ,‘Open communication flow allows Honda to obtain input or information
from all the levels of the management to make informed decisions obtained from the
MIS system.’
 RESOURCE MANAGEMENT: MIS system enables Honda to make proper and efficient
use of their resources. The assets and inventory of the organizations such as raw
materials and labour are the management resources that needs supervision on a regular
basis. The inefficient utilization of resources may lead to low productivity thereby may
lose competitive edge. This also may affect the profit margins and lessening sales.
 EFFICIENT DECISION MAKING PROCESS: Many of the companies use the information
generated by MIS for making efficient decision making.’ 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-informed decisions (Wright, 2009).’
Benefit Level Matrix:
The Benefit level matrix (silk,1988) is developed to map the principle planned for the
benefits of the systems. The Figure1.6 shows the matrix in a simple grid which explains the
efficiency, effectiveness and the technology edge of the system .
Figure 1.6 Benefit level matrix

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The Various types of MIS:
There are various kinds of Management information system in an organization. MIS connects
technology ,management and organization .Figure 1.7 shows different kinds of MIS.
Figure1.7 The different kinds of MIS
 Financial Management Information System(FMIS)- The MIS generated
reports on the past and present financial records of Honda.It details out the profit and
losses of the company which helps in decisions regarding cost and funds.
 Marketing Management Information System(MMIS)-To handle the various
aspects of marketing such as advertisements, price, sales, innovation etc, MMIS is
created. MMIS enables the oragnaztion to recognise the market trend and customer
demands.It creates the look of the products of Honda.
 Manufacturing Management Information System-This MIS enables the
organization to monitor the various manufacturing processes such as flow of goods ,
raw materials and components. The following figure 1.8 shows MIS implementation
in manufacturing process.

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Figure1. 8 MIS Implementaion in Manufacturing Process
 Human resources Mangament Information System- This MIS helps in
recruiting procedures and also allows tracking the performance of the employees.It
views the requirements of the employees ,training processes and rules and policies of
the organization.
 DecisionSupport System- This MIS is used for various types of problem solving
and decision making by gathering information from different sources. This information
is complied by using computer programs.
 Executive Information Systems(EIS)- This is a reporting tool which provides
quick assess to the reports from all the levels of the company and departments.
Benefits Dependency Network:
A benefit dependency network is crafted out of the analysis done. The various parameters and
componets used in the network diagrams is mapped with the relation between information
systems , proposals and business benefits.Figure 1.9 shows the benefit dependency network
diagram

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Figure 1.9 Benefits Dependency Network
Stakeholders andBenefits
It is very essential to recognise the stakeholder’s benefits from MIS technology. MIS
implementation will have a major impact on the employees at various levels, the vendors and
the shareholders, which in return will indirectly benefits the customers. The following
discusses the different stakeholders and their tangible and intangible benefits.
 Employees: The technology will have a huge impact on the employees at various
level. MIS not only connects but also delivers efficient communication between the
departments.
 Tangible Benefits:
 MIS enables the employees to fetch the right information at the right
time which helps is quick decision making.
 Easily accessibility to data and information
 Increase the productivity of the employees resulting in efficient working
 Enables effective and efficient use of resources which help in managing
cost and labour
 Intangible Benefits:

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 Efficient communication between various departments helps in
establishing good communication and understanding among employees
at various level.
 Creates hassle free working environment as the various data and
information is available easily.
 Knowledge sharing becomes easier there by delivering a win-win
situation among the employees.
 Vendors: Vendors are the essential segment of any manufacturing company which
helps in timely completion of the production. Honda works with the local vendors
which provide the company with necessary parts at a wholesale rate. These parts are
then assembled together at various departments in Honda.
 Tangible Benefits:
 Enables to track the order and timely delivery of the components
 Helps in analysing the order pattern and forecast future orders.
 Track the defected components and replaces quickly.
 Internet helps in minimizing time and cost
 Intangible Benefits:
 Better understanding with the client
 Improves service depending upon the feedback client
 On time delivery builds trust.
 Shareholders: MIS in Honda will have a massive impact on the shareholders. The
technology will provide a transparent communication between the company and its
shareholders which not only enhances the relationship but also helps in forecasting the
business.
 Tangible Benefits:
 Reduces the expenses involved in risk and frauds there by delivering the
objectives
 Increases profit
 Helps in expanding market share
 MIS generates reports which help in understanding the market trend and
customers.
 Intangible Benefits:
 Data Transparency helps in building trusts and better relationship
 Enhances reputation.
 Helps in creating better business portfolio.
The above stated benefits of the employees and stakeholders will help in delivering
better product and services. The technology will help the business to reach different

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types of customers and understand their requirements and taste. Therefore the
technology also has an indirect impact on the customers.
 Tangible Benefits:
 Track the order online
 Allows the customer to get the propoer product specifications and price
 Enables to provide feedback to the organization.
 Enable to view the future products
 Intangible Benefits:
 Better customer services and satiafcation.
 Customer loyalty towards the brand.
Recommendations:
For Honda to achieve its prime objectives, it needs to understand and implement the MIS in
its organization. The following are the few recommendations that Honda must implement :
 Honda must implement MIS in various departments like finance, human
reasources, manufacturing, production, etc.
 There are various manuufacturers in the market who provide MIS. Honda
must recognise the best manufacturer to get the system installed. Parameters
like security , maintenance and price should be kept in mind while deciding
the manufacturer.
 The employees of any organization play a vital role in making a process and
system effective. Honda will not succeed ina chiveing its objectives if the
employees are neglected with technologies.So Honda must educate and train
the employees about MIS and the new process.
 The present scenario of Honda is , it has hardware systems from Cisco,
Juniper and IBM. Before installting MIS, a compatibility check must be done
with the hardware systems.
Conclusions:
Every organization have a competitive edge over their competitors. With the implementation
of effective management information system, Honda has better opportunities to be ahead of
their competitors.MIS enbales Honda to understand the market and external environments
using the various tools and software.Management information system is an approach tahe helps
Honda to increase its day to day opeartions and activities. It is just not any tool for collating
the information but also helps the managers to of Honda in the decision making process and
problem solving techniques.With the implementation of MIS in the organization, Honda will
be benefiting from various departments both internal and external. MIS enables Honda in
achieving its objectives and managing its resources. It even helps the managers of Honda for
generating reports about the daily activities of the company regarding products and services,
business partners, people, employees and inventories. It helps in organising the resources of
Honda in an proper manner.

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References:
Asemi,A.,Safari,A.&Zavareh,A. A.(2011) The role of managementinformation system(MIS)and
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Bocji, P. & Chaffey, D., (2005) Business Information Systems: Technology, Development and
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Clarke Steve (2007):'InformationSystemsStrategicManagement:anintegrated approach',Routledge
Printing, USA & Canada.
DeLone, W. H., and McLean, E. R. (2003) The DeLone and McLean Model of Information Systems
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