The document discusses the key components of a production/manufacturing information system. It explains that production/manufacturing is an important function for industrial/manufacturing enterprises. The system requires data from sources like production, inventory, suppliers, workforce and the environment to make manufacturing decisions around areas such as product design, quality control, and production planning and control.

2. PRODUCTION/MANUFACTURING INFORMATION SYSTEM
Production/Manufacturing is an important function in all the
industrial 0r manufacturing enterprises. Most of the other
activities in these enterprises revolve around this function. It is
noted an activity of every enterprise selling goods.
Some of these enterprises are only in the business of trading(i.e,
buying goods from one concern and selling it to customers, thus
performing the function of a retailer / wholesaler.)such
enterprises are also known as merchandising concerns.

3. The concept of production is also extended to the service
concerns. In these concerns, production is understood as a
discharge of some function having some utility.
Eg: Repair of an automobile, legal service to a client etc.
Main decisions to be taken in the production system are:
Product Design
Plant Location and Layout
Production planning and Control
Quality Control

4. Information required for manufacturing decisions is
processed from data which are gathered from the following
sources:
Production Data – production orders, assemble orders,
finished items, scrap etc.
Inventory Data – consist data on inventories of raw
materials, in process and finished goods
Supplier Data – give information about the source of raw
materials
Work force Data – compare data about the labour market ,
performance of workers etc. Such data are required for
production scheduling and plant utilisation.
Environment Data – Data on technology trends, raw
material prices, labour force ,economics and dynamics.

5.  Transaction Processing – Transactions to be processed
are production orders, sales orders, assembly orders,etc.
 Operational Control – Requires detailed reports for
comparing actual performance with the production
schedule.
 Management Control – Requires detailed reports
comparing overall planned or standard performance to
actual performance.
 Strategic Planning – Alternative manufacturing
approaches and alternative approaches to automation.

7. Marketing INFORMATIONSYSTEM
This subsystem of MIS provides information about various
functions of the marketing system of an organisation.
It is the managerial process by which products are
manufactured in accordance with the needs of the consumers
and after production their ownership is passed on to the final
consumer for whom it is produced. Thus the work of marketer
starts long before the firms work of production starts and
continues long after their sales are consummated.

8. The important functions of the marketing process :
1) The Market Identification Function
where the buyers are located
when do they buy
how frequently do they buy
in what quantity do they buy
2) The Purchase Motivation Function
3) The Purchase Adjustment Function
4) The Physical Distribution Function
5) The Communication Function
6) The Transaction Function
7) The Post Transaction Function

9. Information required for marketing decisions is processed
from data which are gathered from the following sources:
Transaction Data – reports on orders, sales price,
inventory levels,receivables,etc.
obtained from internal records.
Marketing research Data – need when the marketing
managers need some focussed studies of specific
problems and opportunities.
Gathered through Market Survey, product preference test.
Marketing Intelligence Data – Related to some important
developments in the marketing environment.
collected through reading newspapers,books, talking to
customers,suppliers,distributors,etc.

10.  Transaction Processing – Transactions to be processed
are promotion orders, sales orders,etc.
 Operational Control – Hiring and training of the sales
force, day to day scheduling of sales and promotion
efforts and periodic analyses of sales volume by region,
product,customer,etc.
 Management Control – Comparison of overall
performance against a marketing plan.
 Strategic Planning – Consideration of new markets &
new marketing strategies.

12. FINANCIAL INFORMATION SYSTEM
Financial information system is a sub system of
organisational MIS.It supports the decision making process
of financial functions of an organisation.
Finance is considered to be the life blood of any business.
It is defined as the provision of money at the time it is
needed.

13. Basic financial decisions are :
1. Investment Decision
2. Financing Decision
3. Dividend Decision
In order to perform the aforesaid fuctions, the finance
manager is required to obtain:
 Transaction Data – credit applications,billing,
vouchers,stock transfers,cheques,etc.
 Financial Intelligence Data – Data collected from banks,
govt., stock markets etc.
 Organisational Plan – Objectives are revealed.
Many software packages which provide complete
financial accounting information are Tally ,Peach
Tree,etc.

14.  Transaction Processing – Uses Transaction Data
 Operational Control – Records of processing delays,
reports on unprocessed transactions.
 Management Control – Utilizes information on budgeted
versus actual cost of financial resources,cost of
processing accounting data and error rates
 Strategic Planning – Long range tax accounting policy
to minimize the impact of taxes and planning of systems
for cost accounting and budgeting.

16. Personnel INFORMATION SYSTEM
The Personnel Information System supports the functions of
personnel Management of an organisation.Personnel/HRM
is a science and an art for controlling man power.
Functions :
 Man Power Planning
 Staffing
 Training & Development
 Performance Evaluation
 Separation Activities

17. In order to perform the aforesaid functions, the HR
manager is required to obtain:
 Transaction Data – Employee
Number,Name,Qualification,experience,joining date ,
etc.
 Environment Data – Availability of personnel trends in
labour force,competition,market offerings to the
employees, govt. and labour laws.
 Organisational Plan – On the basis of org. Plan ,future
planning for recruitement, job assignment,etc is
made.

18.  Transaction Processing – The transactions result in
documents describing employment requisitions, job
descriptions,hours worked,benefits and termination
notices.
 Operational Control – Decision procedures for action
such as hiring,training,termination.changing pay rates &
issuing benefits.
 Management Control – Utilizes information on budgeted
versus actual performance.
 Strategic Planning – Evaluating alternative strategies for
recruiting ,salary,training,benefits.

20. LOGISTICSSUB SYSTEM
Logistics is the management of the flow of goods between the
point of origin and the point of consumption in order to meet
some requirements, of customers or corporations. The
resources managed in logistics can include physical items,
such as food, materials, animals, equipment and liquids,etc.

21.  Transaction Processing – The transactions to be
processed include purchase requisitions, purchase orders,
manufacturing orders, receiving reports, shipping orders,
Bill of lading etc.
 Operational Control – Uses information contained in
reports such as out of stock items,over stocked items,
inventory turnover reports.
 Management Control – overall comparson between
planned and actual inventory levels, inventory turnover
etc.
 Strategic Planning – Analyses new distribution
strategies, new poicies with regard to vendors and “Make
verses Buy” strategies. Information on new technology ,
distribution alternatives etc.

23. INFORMATION PROCESSING SUB SYSTEM
The information processing function is responsible for
ensuring that the other functions are provided the
necessary information processing services and resources.

24.  Transaction Processing – Typical transactions for
information processing are requests for processing, requests
for corrections or change in data and programs, reports of
hardware and program performance and project proposals.
 Operational Control – It requires information on the
daily schedule of jobs, error rates and equipment failures.
 Management Control – overall comparison between
data on planned verses actual utilization , equipment cost,
overall programmer performance .
 Strategic Planning – It involves the organization of the
function (such as centralized or decentralized ),the overall
information system plan, selection of strategic use of
information and the general structure of the hardware and
software environment.

26. TOP MANAGEMENT SUB SYSTEM
Top management function ( Chief Executive Officer plus staff )
operates separately from the functional areas, but also includes
the functional vice presidents acting in a top management
capacity such as in management committees.
o Transaction Processing – The transactions processed by top
management are primarily enquiries and making decisions.
o Operational Control – Conducting meetings and ensuring
the implementation of plans.
o Management Control – By analysing the plans and actual
performance
o Strategic Planning - Relate to matters such as direction of
the company (which business it should be in ) and plans for
ensuring necessary resources.