Mis in manufacturing

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MIS INMANUFACTURING

2011

M M S Sem IIY.T.S.B.M

3/22/2011


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Represented By:

1. Yadav Sushilkumar N.

2. Gaikwad Tushar

3. Parmar Nayan

4. Kale vishal

5. Patil Jitendra

6. Zore Sanket

7. Parab Jivraj

8. Surve Ajay

9. Meher Atul

10. Gaikwad Rajendra

11. Dhekale Rahul

12. Shinde Sachin


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INDEX

Particular Page no.

I ntroduction . . 4

C orporate Business management .. 8

Personal management ........ 18

F inancial management ........ 19

Production Management ........ 22

Material management .. 25

Marketing management ........ 27

Bibliography ........ 32


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I ntroduction

The automation in manufacturing companies has significantly improved in all areas of processing, but at the same time it has also created a staggering amount of data.

Though IT departments have taken advantage of hardware improvements to economically storethe increased data, there never seems to be enough time or resources to meet the needs of factorymanagers who face the fact gap that exists between the data and the usable informationrequired to make real business decisions.

For manufacturing/operations companies, getting the right information to the right people in atimely manner has never been more important than it is today to reduce hidden costs, toincrease production, and to maximize profits.

Manufacturers have to manage the complexity of their supply chain, internal manufacturing, andoperations along with meeting their distribution and customer requirements. Manufacturers today

are faced with making extremely complicated decisions in real-time, on a daily basis, withlimited information. Manufacturers face increasing globalization, more competition than ever,and customers whose demands reflect their own knowledge and expectations of a global market.

Every manufacturing company is different like different processes, differenttracking systems and different challenges. All of these variations add up tothe fact that you need a management information system (MIS) that caters tothe specific needs as well. While looking for a MIS solution you may defineyour needs and formulate a list of requirements that simplify the adoption of

information technology for improving performance.

In the manufacturing industry, information quality issues exist throughout the supply chain. Onereason for this is that manufacturers depend on data from suppliers, contract manufacturers,distributors, retailers, and consumers in order to effectively and efficiently source raw materials,forecast demand, make and market their products. Very seldom will manufacturers have controlover the quality and format of this external data. Through incremental improvements in dataquality throughout the supply chain, however, manufacturers can realize significant performanceimprovements, including improved speed and efficiency of product manufacture, improvedability to perform demand analysis, improved channel partner effectiveness through timely andaccurate product and pricing information, and improved customer satisfaction through timely andaccurate customer information. Measurement and verification are needed to ensure theinformation quality program is reaching its objective.

The single biggest obstacle to deploying a MIS in manufacturing is data: availability, quality,and access. Several factors make it difficult to ensure optimal performance in manufacturing.Data and events come from many disparate sources, including those of your suppliers, contractmanufacturers, and other business partners. Data types and formats vary from one source to thenext. Business partners in the collaborative supply chain may use different data schemas andsystems to track their manufacturing process. Large volumes of data must be processed fromeach interface and subsystem used in the manufacturing process.


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A MIS tool should also easily integrate with operational applications and legacy systems thatalready exist in a typical manufacturing environment. Real-time manufacturing data need to beput into many different contexts for other roles in the organization that are contributing to theoptimal performance of the real-time enterprise.

Manufacturing companies today have extensive inventories to track andmove, a greater number of products to generate, numerous suppliers tonegotiate with and quality standards to maintain. They also have an ever-increasing need to acquire, satisfy and retain additional customers to remainprofitable. Because of these complex pressures, it is imperative that all thelinks in the supply chain be managed successfully.

Inventory control programs are one component of a manufacturing MIS that relies on theproduction schedule. Inventory control programs can forecast future production, automatically

reorder items when a certain threshold is met, determine manufacturing costs, and developresource requirements plans from the production schedule.

Manufacturing Requirements Planning (MRP) programs help coordinate thousands of inventoryitems when demand for one item depends on demand for another. MRP systems determine whenfinished products are needed, then work backward to determine deadlines and resources neededto complete the final product on schedule.

When high inventory levels are kept, a companys money is tied up in unused inventory. Thismeans higher costs for the company. A Just-in-time (JIT) inventory approach ensures inventoryand materials are delivered only when they are needed. This maintains inventories at their lowest

possible level, but insures materials are on-hand in time for production. Although JIT isbeneficial, it also makes a business vulnerable to supply chain disruptions whether internal or external. For example, if a machine breaks down that makes a component another unit needs toassemble the product, assembly may need to stop due to lack on components.

Technologies have been developed to control and streamline the manufacturing process.Computers can directly control manufacturing equipment using computer-assisted manufacturingsoftware. Computer-integrated manufacturing software connects all aspects of productiontogether, including order processing, product design, manufacturing, quality control, andshipping. For example, after an engineer designs a product using CAD software, MRP systemscan use information from the design as input to plan and order materials. Production scheduling

systems can use the design specifications as an input into the scheduling process. And computer-aided manufacturing systems can use the design specifications as input for setup. This greatlyimproves manufacturing efficiency.

A flexible manufacturing system allows a facility to quickly and efficiently change from makingone product to making another, often using robotics and other automation. Generally thechangeover is computer-controlled.


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Manufacturing MIS Subsystems and Outputs

y Design and engineeringy Master production schedulingy Inventory controly

Manufacturing resource planningy Just-in-time inventory and manufacturingy Process controly Computer-assisted manufacturing (CAM)y Computer-integrated manufacturing (CIM)y Flexible manufacturing systemy Quality control and testing

Manufacturing MIS

y Material requirements planning (MRP)o

Determine when finished products are neededo Determine deadlines accordinglyy Manufacturing resource planning (MRPII)

o Network schedulingo Improve customer service and productivity

y Just in time (JIT) inventory systemo Inventory and materials delivered right before usage


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C orporate Business

Meaning & Definition of Corporate Business

Meaning:-

The term finance means provisions of money at time it is wanted. Literally speaking, businessfinance means money required for the conduct of business activities.

Definition:-

B.O. Wheeler defines business finance is that business activity which is concerned with theacquisition and conservation of capital funds in meeting the financial needs and overallobjectives of business enterprise.

C orporate overview:

The top management, in all organizations, is kept informed of the ongoing throughvarious MIS reports, in each functions and informal channels such as Notes, Inter-office Memos,Minutes of the Meetings and so on. However, this reporting on business performance is notthrowing light on the inter-functional implications. The management does not get a clear pictureof the totality.

For example, sales versus raw material inventory, production versus finished goodsinventory, invoicing versus receivables and its aging, purchases liability versus payable and itsaging, uses of funds and its recourses, sales versus market segments versus products, productfamily, machine shop loading versus utilization of the capacity, etc.

The management does not receive information which helps to make comparative analysesbetween the current and the past. It also does not receive information on the projection in totality.The top management always likes to have an overview of the business at equal time intervals tobring visibility in the business operation.

Such reporting is normally done monthly, on a fixed date, on a fixed date, on key

parameters of the business. Uses budget, norms, ratios, targets as a reference for comparison, itprovides same information for the corresponding period in the previous year. It also provides theinformation on the next planned period in each case of reporting parameters.

In addition to such reports, there is a practice in a number of companies to collectregularly the information from external sources, which are critical to the business of theorganization. This includes competitions, policy, projections and forecasts, developments, whichmay affect business such as new product, process, and technology. Such information is used to


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develop business models for strategic growth, planning and control. The decisions on newproduct, diversifications or starting strategic business unit (SBU) are taken after mixing externalinformation with internal information from within the company.

Importance of corporate business:

Corporate image, or reputation, describes the manner in which a company, its activities,and its products or services are perceived by outsiders. In a competitive business climate, manybusinesses actively work to create and communicate a positive image to their customers,shareholders, the financial community, and the general public. A company that mismanages or ignores its image is likely to encounter a variety of problems. "Reputation problems grow likeweeds in a garden," Davis Young wrote in his book Building Your Company's Good Name."Direct and indirect costs escalate geometrically."

Some of the warning signs that a business might have an image problem include highemployee turnover, the disappearance of major customers, a drop in stock value, and poor relationships with vendors or government officials. If an image problem is left unaddressed, acompany might find many of its costs of doing business rising dramatically, including the costsof product development, sales support, employee wages, and shareholder dividends. In addition,since the majority of consumers base their purchase decisions at least partly on trust, current andfuture sales levels are likely to suffer as well.

In businesses of all sizes, it is vital that managers recognize the importance of creatingand maintaining a strong image, and that they also make employees aware of it. Corporate imagebegins within the offices of a company's managers. It should be based on the development of

good company policies, rather than on controlling the damage caused by bad company policies.Young recommends that business owners and managers take the following steps towardimproving their companies' image: focus on the firm's long-term reputation; base actions onsubstantive policies; insist on candor in all business dealings; and uphold the stakeholders' rightto know. After all, he notes, a good corporate image can take years to build and only moments todestroy

Provide comprehensive reporting.(e.g. of an auto mobile industry) Provide basic information. Show financial health of company. Future direction. To help review report easily & conveniently


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ROLE OF THE MANAGEMENT INFORMATION SYSTEM

The role of the MIS in an organization can be compared to the role of heart inthe body. The information is the blood and MIS is the heart. In the body the heart plays the role

of supplying pure blood to all the elements of the body including the brain.The heart works faster and supplies more blood when needed. It regulates and

controls the incoming impure blood, processes it and sends it to the destination in the quantityneeded. It fulfills the needs of blood supply to human body in normal course and also in crisis.

The MIS plays exactly the same role in the organization. The system ensures thatan appropriate data is collected from the various sources, processed, and sent further to all theneedy destinations. The system is expected to fulfill the information needs of an individual, agroup of individuals, the management functionaries: the managers and the top management.

The MIS satisfies the diverse needs through a variety of systems such as QuerySystems, Analysis Systems, Modeling Systems and Decision Support Systems the MIS helps inStrategic Planning, Management Control, Operational Control and Transaction Processing.

The MIS helps the clerical personnel in the transaction processing and answers their queries on the data pertaining to the transaction, the status of a particular record and referenceson a variety of documents.

The MIS helps the junior management personnel by providing the operational datafor planning, scheduling and control, and helps them further in decision making at the operationslevel to correct an out of control situation.

The MIS helps the middle management in short them planning, target setting andcontrolling the business functions. It is supported by the use of the management tools of planningand control.

The MIS helps the top management in goal setting, strategic planning and evolvingthe business plans and their implementation.

The MIS plays the role of information generation, communication, problemidentification and helps in the process of decision making. The MIS, therefore, plays a vital rolein the management, administration and operations of an organization.

Features of corporate financial management information system

In terms of terminology, an FMIS usually refers to computerization of public expendituremanagement processes including budget formulation, budget execution, and accounting withthe help of a fully integrated system for financial management of the line ministries (LMs)


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and other spending agencies. The full system should also secure integration andcommunication with other relevant information systems. Because of the integrationrequirement, the FMIS is commonly characterized as an integrated financial managementinformation system (IFMIS). Unfortunately, using the term integrated financial management- 4 -

information system can sometimes be erroneously interpreted as describing a system thatcan capture all the functional processes, and the relevant financial flows, within publicexpenditure management. However, the complexity of information systems within thegovernment sector is, to a large extent, due to the multiplicity of functions and policy areas.In many functional areas specialized information systems are in place and will still berequired even with the implementation of an FMIS. It should be noted that in this paper theterm FMIS has been used generically to include an IFMIS.As the name implies, there are, and should be, three guiding characteristics for awell-designed FMIS:

It is a management tool

When developing an FMIS it is important that it cater to management needsnot just thoseof the central agencies, but also line agencies. Moreover, as a management tool it shouldsupport the management of change. It must be viewed as an integral part of budget systemreformhence not be designed just to meet present requirements, but also to support thoseneeds that are likely to arise as parallel budget reforms are implemented.

It should provide a wide range of nonfinancial and financial informationAs a tool of management it should provide the information required for decision making. For this purpose it is anchored in the government accounting system, and should be designed toperform all necessary accounting functions as well as generate custom reports for internaland external use. However, this does not mean that it should exclusively concentrate onfinancial information. Managers will require other nonfinancial information. For example,personnel information such as numbers of employees, their grade within the organizationalstructure and rates of remuneration. For performance-based budgets, performanceinformation will be important to managers, such as the identification of programs, theobjectives or outcomes of programs, the types of goods and services produced, as well asindicators by which to judge the efficiency and effectiveness of programs.

It is a systemIts role is to connect, accumulate, process, and then provide information to all parties in thebudget system on a continuous basis. All participants in the system, therefore, need to be ableto access the system, and to derive the specific information they require to carry out their different functions. The converse is also true, if the FMIS does not provide the requiredinformationthat is, has not the right functionalityit will not be used, and will cease tofulfill its central function as a system. Further, by automating procedures and internalcontrols, it strengthens financial controls and promotes accountability. Box 1. broadlydescribes the attributes of an FMIS.


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Role of MIS in corporate business

Decision Support,

Business managers often need to make decisions that can affect the business' fortunes one way or other. For example, a company with sales outlets or distributors spread over a wide geographicarea might want to optimize the logistical operations of delivering merchandise to the outlets.The best solution might be affected by numerous factors such as demand patterns, availability of merchandise, distances involved and the option of using external carriers (who can find two wayloads and might prove a lesser cost option over long distances) instead of own vehicles.

While it might be possible to use complex mathematical formulas by hand to compute the bestsolution, computers transform the whole process into a routine task of feeding certaininformation as input and obtaining suggestions for best solutions as output. The task can

typically be done in a few minutes (instead of hours or even days) and it becomes possible toexamine several alternatives before deciding upon one that seems most realistic.

Problem Analysis and Overall C ontrol

Identifying problems and analyzing the factors that cause them also has been transformed bymodern computer information systems. In a typical MIS environment, standard reports aregenerated in a routine manner comparing actual performance against original estimates. Thesoftware that generates the report can be instructed to highlight exceptions, i.e. significant

variations between original estimates and actual performance. Managers will thus become awareof problem areas in the daily course of their work simply by looking at the reports they receive,without having to do detailed data collection and computations themselves.

Identifying the factors responsible for the problem can also be reutilized to some extent by usingsuch tools as variance analysis. Variance analysis is an element of standard costing system thatsplits deviations from estimates (or standards) into causative factors such as increase in price of materials used, excessive usage of materials, unexpected machine downtimes, etc. With such adetailed report, managers can delve deeper into the problem factor, such as why there wasexcessive usage of materials.

Control is also exercised through variance analysis. Budgets are prepared for all businessoperations by concerned managers working in a coordinated fashion. For example, estimatedsales volumes will determine the levels of production; production levels will determine rawmaterial purchases; and so on. With good information system management, it then becomespossible to generate timely reports comparing actual sales, production, raw material deliveries,etc against estimated levels.


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The reports will help managers to keep a watch on things and take corrective action quickly. For example, the production manager will become aware of falling sales (or rising sales) of particular products and can prepare to make adjustments in production schedules, and purchasing andinventory managers will become quickly aware of any mounting inventories of unused materials.MIS thus enhances the quality of communication all around and can significantly improve the

effectiveness of operations control.

Effective MIS Involves Humans and C omputers Working together

The major aspect to note is that MIS provides only the information; it is the responsibility of concerned managers to act on the information. It is the synergy between efficient, accurate andspeedy equipment and humans with commonsense, intelligence and judgment that really givespower to MIS.

Preparing Project

We all know that accurate, timely, and relevant information is essential to the decision-makingprocess of a project and that relying on an inadequate information system puts a project at risk.We all know that information is a valuable resource for project managers. Despite the fact thatwe all know these things, project managers often fail to deliver the types of information neededto ensure project success. Implementing a project management information system (PMIS) is oneway to address critical project information needs.

One of my major clients, an international engineering firm, decided to break the cycle of miscommunication and derailed projects by ordering the development and implementation of aPMIS that is able to provide upper management with adequate information about all the projectsin the organizations portfolio. Traditionally, engineers and project managers do not

communicate project status adequately with upper management and functional departments.They believe that projects are their responsibility and they have the authority to deliver them.Furthermore, functional departments are often reluctant or do not have time to provideinformation to project engineers. These circumstances often lead to late, over budget, and lowquality projects.

C omprehensive report of an automanufacturing industry :

Auto manufacturing industry appeared in the end of the 19th century in the United States,

Great Britain, Germany and France. Its significance at present time and future trends depend onthe place motor transport takes in transport-energetic infrastructure, and its role in the nationaleconomy.

The countries-leaders in automobile industry take the first places in the world economy. Thisindustry has a direct impact on technological progress and better than any statistics says aboutpeoples paying capacity and thus about standard of life.


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On the one hand auto manufacturing industry is a big consumer of material, financial and labor resources; on another hand it is one of the main producers of industrial output and plays a greatrole in social production development and countrys economy as a whole.

By combination of construction and technological complexity of every manufactured article withthe mass production scales automobile industry has no analogues among other industries of modern machine-building. High level of capital concentration in auto manufacturing as well asrapid reduction of firms independent producers is concerned with this feature. Developedcountries in many respects depend on automobile industry because auto multinationalcorporations play a significant role in their economies.

At present a process of regional structure changing is taking place in automobile industry. Thisprocess includes shares redistribution between the leading producing centers as well as

increasing part of economically developing countries, where the intensive development of automanufacturing is taking place under the influence of world automobile companies.

Three companies - auto-giants - form The Big Three in the United States and control the mostpart of American auto market, and are the biggest multinational companies in the world. Theyare Ford, Daimler Chrysler and General Motors. However some other firms are also controlledby these producers. Thus Daimler Benz and Chrysler united into one corporation. And now suchbrands as Mercedes, Chrysler, Jeep and Dodge are produced under the direction of Daimler Chrysler.

General Motors is the biggest of three auto-giants. Its annual output is more than 6 millionautomobiles. Both American companies (Chevrolet, Pontiac, Buick, Saturn and Cadillac) andEuropean ones (Opel, Vauxhall and Saab) belong to General Motors. Besides this thecorporation owns 20 per cent of Subaru company shares and 49 per cent of Isuzu, and in this wayit can influence the Eastern market. Isuzu has been providing engines for Opel and Saab vehiclesfor 10 years already. However General Motors influence on Subaru is still insignificant becauseof small share of capital in it.

The second by size auto-concern is Ford. It includes such companies as Aston Martin, Jaguar,Lincoln, Mercury, Volvo and Mazda. Total annual output is about 4.6 million vehicles. The mostpart of the output is formed by such brands as Ford (more than 2 million vehicles) and Mazda(almost 1 million).

Daimler Chrysler is the third biggest auto manufacturing company in the USA. However it takesonly the 6th place in the world scale, letting Volkswagen and Toyota go ahead. Its annual outputis about 3.55 million automobiles. Of The Big Three Chrysler remained a pure American


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company longer than others. In 2001 Daimler Chrysler united with Mercedes and got anopportunity to produce prestigious cars which were inaccessible to the company before. Thisunion has a positive impact on both companies from technical and tactical points of views.

The Big Three controls 62.7 per cent of American auto market, 36 per cent of Brazilianmarket, 28 per cent of European market and 10 per cent of Asian market. Besides this thesecompanies form 4.4 per cent of United States Gross National Product. It also provides a lot of working places for the population: about 731 thousand people are working at the automanufacturing enterprises disposed in the United States. And their annual income is about 29billion US dollars. Moreover about 900 thousand people supply production to The Big Three.

In order to succeed, the automobile manufacturers have to establish and control large supplychains, span different geographic regions, be competitive in the national and world markets andfulfill all state regulations.

Today there are a lot of reasons for the state to be interested in the auto manufacturing industry.They include such important points as passengers safety, conservation of the environment, anddevelopment of more efficient engines, which will reduce dependence on foreign petroleum.

The history of automobile industry regulations dates back up to 1946 when President HarryTruman called National Traffic Safety Council. This Council declared that the automobilesshould have a progressive design and operate safer in order to protect passengers from injuries intraffic accidents. But as it was a postwar period the plants were unable to shift to producingsafety cars immediately, as not so long ago they had been producing bombs and tanks.

In 1952 Cornwell University suggested to introduce seat bells into motor vehicles, as itsresearches showed that they would reduce number of injuries in accidents. But people wanted toenjoy life but not invest money in set bells. So about 10 year had passed till they becamepopular, as from 1950 to 1966 the number of fatal accidents on the roads increased from 34,763to 53,041. And in 1964 the first safety standards were established by the Congress. Primarilythey concerned the cars that were bought by the General Services Administration.

In 1966 the National Highway Traffic Safety Administration was established. It created 17standards, which required auto companies place padded dashes with recessed control knobs,padded visors, seat belts, standard bumper heights, safety door latches and collapsible steeringcolumns into vehicles. 3 years later a regulation for air bags was set up. General Motors was thefirst to invest $80 million to equip 300,000 autos with them. But although airbags were beingsold much below cost (for $300), many customers refused to install them.

A lot of environmental regulations were set up later. In 1970 Senator Edmund Muskie was the


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first to revise the Clean Air Act. The exhaust had to be cut by 90 per cent. In 1975 the Congressadopted the Energy Policy and Conservation Act, creating Corporate Average Fuel Economypolicy. All these regulations brought Chrysler almost to bankruptcy. And only due to itschairman Lee Iacocca, who switched from Ford to Chrysler at this period, the company couldreach a high level again.

There were a lot of other environmental restrictions which made companies bear great costs tointroduce new technologies. And anti-trust laws prohibited auto manufacturers co-operation.However later these restrictions were reduced and The Three Big began to work together insuch areas as safety, electronics and battery technology. Besides they cooperate to create carsthat get more miles per gallon. This allows lessening countrys dependence on imported mineraloils.

In 1970 the Center of Auto Safety was created by Ralph Nader and Consumer Union. Due to its

efforts Lemon Laws were adopted. They provided indemnity to the customers for autos thatdid not meet some quality standards or performance.

It is necessary to mention here the Free Trade Agreement between Canada and the US thatremoved barriers of auto and auto parts trade between two countries.

New regulations for high-powered long-range trucks are expected soon. Shorter stoppingdistances will be set, and trucks brakes will be redesigned in order to diminish the probability of emergency conditions on the roads.

Nowadays there are a lot of debates about regulations role in auto manufacturing industry asfrom one hand they speed up creating safe vehicles, but from another lead to great expenses.


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C orporate overview report:

Marketing Production Finance Expenses

Orders Planned production C urrent assets Revenue expenses

Sales Actual production C urrent liabilities C apital expenditure

C ost of goods sold C ost of production C urrent ratio Payment to employees

Finished goods Raw materialinventory

Account receivablesto turnover

Marketing expenses

Inventory Travelling exp

Receivables

-Due

-Overdue

Payables

-Due

-Overdue

Inventory turnover

-Net sales

-Net sales to totalassets

Miscellaneous exp.

.


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Personnel management

Objective-Providing suitable manpower in number and with certain ability, skills and knowledge

as per the demand of business.

Viewers of database:

y Personnel managersy Head of HRD departmentsy Top management

Application of the prersonnel database

y Analysis of attendance by a class of employeesy Leave management by a group of employeesy Trend in the leave recordy Analysis pf accidentsy Analysis of salary /wage structurey Analysis of overtimey Analysis of manpower needs and evolving recruitment and training program


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F inancial management

The manufacturing enterprise benefits from comprehensive, real-time financial tracking, analysisand reporting of accounts receivable, customer credit management, receipts and other activities.It's a strong disadvantage if the organization uses stand-alone spreadsheet systems to track purchasing, receiving, shipping, accounts payable, collections and other areas. With stand-aloneand manually intensive systems, the challenges include tedious tracking and maintenance of physical documents like invoices; lack of visibility into financial record-keeping such as trackingpayables and receivables; a high likelihood of introducing error via duplicate data-entry; andother issues.

Financial management means planning of events (transactions)

Financial management may refer to:

Managerial finance , the branch of finance that concerns itself with the managerialsignificance of finance techniques

Corporate finance , an area of dealing with the corporate financial decisions

Managerial finance is the branch of the finance that concerns itself with the managerialsignificance of finance techniques. It is focused on assessment rather than technique.

The difference between a managerial and a technical approach can be seen in the questions onemight ask of annual reports. One concerned with technique would be primarily interested inmeasurement. They would ask: are moneys being assigned to the right categories? Weregenerally accepted accounting principles GAAP followed?

One concerned with management though would want to know what the figures mean.

They might compare the returns to other businesses in their industry and ask: are weperforming better or worse than our peers? If so, what is the source of the problem? Do wehave the same profit margins? If not why? Do we have the same expenses? Are we payingmore for something than our peers?

They may look at changes in asset balances looking for red flags that indicate problems withbill collection or bad debt.


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They will analyze working capital to anticipate future cash flow problems.

Managerial finance is an interdisciplinary approach that borrows from both managerialaccounting and corporate finance .

Sound financial management creates value and organizational agility through the allocation of scarce resources amongst competing business opportunities. It is an aid to the implementationand monitoring of business strategies and helps achieve business objectives.

Corporate finance is the field of finance dealing with financial decisions that businessenterprises make and the tools and analysis used to make these decisions. The primary goal of corporate finance is to maximize corporate value while managing the firm's financial risks .Although it is in principle different from managerial finance which studies the financial

decisions of all firms, rather than corporations alone, the main concepts in the study of corporatefinance are applicable to the financial problems of all kinds of firms.

The discipline can be divided into long-term and short-term decisions and techniques. Capitalinvestment decisions are long-term choices about which projects receive investment, whether tofinance that investment with equity or debt , and when or whether topay dividends to shareholders . On the other hand, short term decisions deal with the short-termbalance of current assets and current liabilities ; the focus here is on managing cash, inventories ,and short-term borrowing and lending (such as the terms on credit extended to customers).

The terms corporate finance and corporate financier are also associated with investment banking .The typical role of an investment bank is to evaluate the company's financial needs and raise theappropriate type of capital that best fits those needs. Thus, the terms corporate finance andcorporate financier may be associated with transactions in which capital is raised in order tocreate, develop, grow or acquire businesses.


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Overview of a Financial MIS

Inputs to the Financial Information System

y Strategic plan or corporate policies

o Contains major financial objectives and often projects financial needs.y Transaction processing system (TPS)

o Important financial information collected from almost every TPS payroll, inventory

control, order processing, accounts payable, accounts receivable, general ledger.

o External sources

o Annual reports and financial statements of competitors and general news items.

Financial MIS Subsystems and Outputs

y Financial subsystems

o Profit/loss and cost systems

o Auditing

o Internal auditing

o External auditing

o Uses and management of funds


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Production Management

Production management, alternatively referred to as manufacturing management, is

required for transforming raw materials and partly, fabricated materials into finished products.Production management does not imply management of productive process alone, but it coversall there activities which go into the making of production. To make production a concretereality, one ,must pay heed to the factors of production like land, labour, capital andorganization, or to speak in the language of business, materials, men, money, machines andmethods. Production management thus calls for the work of planning and control pertaining toeach of these factors of production.

Planning, implementation, and control of industrial production processes to ensure

smooth and efficient operation. Production management techniques are used in bothmanufacturing and service industries. Production management responsibilities include thetraditional five M's: men and women, machines, methods, materials, and money. Managers areexpected to maintain an efficient production process with a workforce that can readily adapt tonew equipment and schedules. They may use industrial engineering methods, such as time-and-motion studies, to design efficient work methods. They are responsible for managing bothphysical (raw) materials and information materials (paperwork or electronic documentationObjective of production management

1 . To provide manufacturing services to organization including planning, engineering

maintenance, quality control

Product management often serves an inter-disciplinary role, bridging gaps within the companybetween teams of different expertise, most notably between engineering-oriented teams andbusiness-oriented teams. For example product managers often translate business objectives setfor a product by Marketing or Sales into engineering requirements. Conversely they may work toexplain the capabilities and limitations of the finished product back to Marketing and Sales.Product Managers may also have one or more direct reports such as a Product Executive who canmanage operational tasks or a Change Manager who can oversee new initiatives. In addition to

management and financial skills, a production manager must have detailed knowledge of allproduction disciplines including a thorough understanding of the interaction of these disciplinesduring the production process. This may involve dealing with matters ranging from theprocurement of staff, materials and services, to freight , customscoordination , telecommunications , labor relations, logistics , information technology , government


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liaison , venue booking, scheduling , operations management, mending delay problems andworkplace safety .

2 . Maximum utilization of the manufacturing capacity with minimum rejection Product management (inbound focused) and product marketing (outbound focused) are differentyet complementary efforts with the objective of maximizing sales revenues, market share, andprofit margins. The role of product management spans many activities from strategic to tacticaland varies based on the organizational structure of the company. Product management can be afunction separate on its own and a member of marketing or engineering.

3. meeting delivery promises

The purpose of production order is to provide information about various operations involved in aproduction process. Once a production order is formulated, there arises the necessity todetermine that when and where each operation is to be done. The reasons in that the operationsdescribed in a production order may be executed in several ways to get the final product and onemay like to use a production strategy which makes most effective use of an, machine andmaterial in the system. The best strategy is planned through the methods of Routing andScheduling.

Inventory control programs are one component of a manufacturing MIS that relies on theproduction schedule. Inventory control programs can forecast future production, automaticallyreorder items when a certain threshold is met, determine manufacturing costs, and developresource requirements plans from the production schedule.

Manufacturing Requirements Planning (MRP) programs help coordinate thousands of inventoryitems when demand for one item depends on demand for another. MRP systems determine whenfinished products are needed, then work backward to determine deadlines and resources neededto complete the final product on schedule.

When high inventory levels are kept, a companys money is tied up in unused inventory. Thismeans higher costs for the company. A Just-in-time (JIT) inventory approach ensures inventoryand materials are delivered only when they are needed. This maintains inventories attheir lowest possible level, but insures materials are on-hand in time


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for production. Although JIT is beneficial, it also makes a business vulnerable to supply chaindisruptions whether internal or external. For example, if a machine breaks down that makes acomponent another unit needs to assemble the product, assembly may need to stop due tolack on components.

Technologies have been developed to control and streamline the manufacturing process.Computers can directly control manufacturing equipment using computer-assisted manufacturingsoftware. Computer-integrated manufacturing software connects all aspects of productiontogether, including order processing, product design, manufacturing, quality control, andshipping. For example, after an engineer designs a product using CAD software, MRP systemscan use information from the design as input to plan and order materials. Production schedulingsystems can use the design specifications as an input into the scheduling process. And computer-aided manufacturing systems can use the design specifications as input for setup. This

greatly improves manufacturing efficiency.

A flexible manufacturing system allows a facility to quickly and efficiently change from makingone product to making another, often using robotics and other automation. Generally thechangeover is computer-controlled.

Finally, quality control has become paramount for manufacturing firms.Control charts or sampletesting is used to monitor product quality.

The manufacturing MIS subsystems and outputs monitor and control the flow of materials,products, and services through the organization.


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Material Management

Materials management is the branch of logistics that deals with the tangible components of a supply chain . Specifically, this covers the acquisition of spare parts and replacements, qualitycontrol of purchasing and ordering such parts, and the standards involved in ordering, shipping,and warehousing the said parts.

The goal of materials management is to provide an unbroken chain of components for productionto manufacture goods on time for the customer base. The materials department is charged withreleasing materials to a supply base, ensuring that the materials are delivered on time to thecompany using the correct carrier. Materials is generally measured by accomplishing on timedelivery to the customer, on time delivery from the supply base, attaining a freight budget,

inventory shrink management, and inventory accuracy. The materials department is also chargedwith the responsibility of managing new launches.

In some companies materials management is also charged with the procurement of materials byestablishing and managing a supply base. In other companies the procurement and managementof the supply base is the responsibility of a separate purchasing department. The purchasingdepartment is then responsible for the purchased price variances from the supply base.

In large companies with multitudes of customer changes to the final product over the course of ayear, there may be a separate logistics department that is responsible for all new acquisitionlaunches and customer changes. This logistics department ensures that the launch materials areprocured for production and then transfers the responsibility to the plant materials management

Q uality Assurance

A large component of materials management is ensuring that parts and materials used in

the supply chain meet minimum requirements by performing quality assurance (QA). Whilemost of the writing and discussion about materials management is on acquisition and standards,much of the day to day work conducted in materials management deals with QA issues. Partsand material are tested, both before purchase orders are placed and during use, to ensure there areno short or long term issues that would disrupt the supply chain. [1] This aspect of materialmanagement is most important in heavily automated industries, since failure rates due to faultyparts can slow or even stop production lines, throwing off timetables for production goals.


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Materials mangers are rarely responsible for the direct management of quality issues concerningthe supply chain or the customer. A sperate quality function generally deals with all issuesconcening the correctness of the parts to the finished product and the final product.

Standards

There are no standards for materials management that are practiced from company to

company. Most companies use ERP systems such as SAP, Oracle, BPCS, MAPICS, and other systems to manage materials control. Small concerns that do not have or cannot afford ERPsystems use a form of spreadsheet application to manage materials.

Materials management is not a science and depending upon the relevance and importance thatcompany officials place upon controlling material flow, the level of expertise changes. Some

companies place materials management on a level whereby there is a logistics director, other companies see the importance level as managing at the plant level by hiring an inventorymanager or materials manager, and still other companies employ the concept that the supervisorsin the plant are responsible accompanied by a planners.

Because there are no standards there is only best practices for any particular business sector thatare widely used. For example, the generateion of releases to the supply base come in many formsfrom the lowest level that requires sending facsimilies and PDF files, the EDI informationexchange, to the ultimate practice of a supplier web base site.


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Marketing Management

Marketing Management is a business discipline which is focused on the practical applicationof marketing techniques and the management of a firm's marketing resources and activities.Rapidly emerging forces of globalization have compelled firms to market beyond the borders of their home country making International marketing highly significant and an integral part of afirm's marketing strategy. [1] Marketing managers are often responsible for influencing the level,timing, and composition of customer demand accepted definition of the term. In part, this isbecause the role of a marketing manager can vary significantly based on a business'size, corporate culture , and industry context. For example, in a large consumer productscompany, the marketing manager may act as the overall general manager of his or her assignedproduct [2] To create an effective, cost-efficient Marketing management strategy , firms must

possess a detailed, objective understanding of their own business and the market in which theyoperate. [3] In analyzing these issues, the discipline of marketing management often overlaps withthe related discipline of strategic.

Marketing strategy

If the company has obtained an adequate understanding of the customer base and its own

competitive position in the industry, marketing managers are able to make their own keystrategic decisions and develop a marketing strategy designed to maximize

the revenues and profits of the firm. The selected strategy may aim for any of a variety of specific objectives, including optimizing short-term unit margins, revenue growth, market share ,long-term profitability, or other goals.

To achieve the desired objectives, marketers typically identify one or more targetcustomer segments which they intend to pursue. Customer segments are often selected as targetsbecause they score highly on two dimensions: 1) The segment is attractive to serve because it islarge, growing, makes frequent purchases, is not price sensitive (i.e. is willing to pay highprices), or other factors; and 2) The company has the resources and capabilities to compete for

the segment's business, can meet their needs better than the competition, and can do soprofitably. In fact, a commonly cited definition of marketing is simply "meeting needsprofitably."

The implication of selecting target segments is that the business will subsequentlyallocate more resources to acquire and retain customers in the target segment(s) than it will for other, non-targeted customers. In some cases, the firm may go so far as to turn away customers


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who are not in its target segment.The doorman at a swanky nightclub, for example, may denyentry to unfashionably dressed individuals because the business has made a strategic decision totarget the "high fashion" segment of nightclub patrons.

In conjunction with targeting decisions, marketing managers will identify thedesired positioning they want the company, product, or brand to occupy in the target customer'smind. This positioning is often an encapsulation of a key benefit the company's product or service offers that is differentiated and superior to the benefits offered by competitiveproducts.For example, Volvo has traditionally positioned its products in the automobile marketin North America in order to be perceived as the leader in "safety", whereas BMW hastraditionally positioned its brand to be perceived as the leader in "performance."

Ideally, a firm's positioning can be maintained over a long period of time because thecompany possesses, or can develop, some form of sustainable competitive advantage .[8] Thepositioning should also be sufficiently relevant to the target segment such that it will drive thepurchasing behavior of target customers.

Implementation planning

The Marketing Metrics Continuum provides a framework for how tocategorize metrics from the tactical to strategic. After the firm's strategic objectives have beenidentified, the target market selected, and the desired positioning for the company, product or brand has been determined, marketing managers focus on how to best implement the chosen

strategy. Traditionally, this has involved implementation planning across the "4Ps" of marketing: Product management , Pricing (at what price slot do you position your product, for e-glow, medium or high price), Place (the place/area where you are going to be selling your products, it could be local, regional, country wide or International) (i.e. salesand distribution channels), and People . Now a new P has been added making it a total of 5P's.The 5th P is Politics which affects marketing in a significant way.

Taken together, the company's implementation choices across the 4(5)Ps are oftendescribed as the marketing mix , meaning the mix of elements the business will employ to " go tomarket " and execute the marketing strategy. The overall goal for the marketing mix is toconsistently deliver a compelling value proposition that reinforces the firm's chosen positioning,builds customer loyalty and brand equity among target customers, and achieves the firm'smarketing and financial objectives. In many cases, marketing management will developa marketing plan to specify how the company will execute the chosen strategy and achieve thebusiness' objectives. The content of marketing plans varies from firm to firm, but commonlyincludes:


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An executive summary

Situation analysis to summarize facts and insights gained from market research andmarketing analysis

The company's mission statement or long-term strategic vision

A statement of the company's key objectives, often subdivided into marketing objectives andfinancial objectives

The marketing strategy the business has chosen, specifying the target segments to be pursuedand the competitive positioning to be achieved

Implementation choices for each element of the marketing mix (the 4(5)Ps)Project, process, and vendor management.

Once the key implementation initiatives have been identified, marketing managers work to oversee the execution of the marketing plan. Marketing executives may therefore manage anynumber of specific projects, such as sales force management initiatives, product developmentefforts, channel marketing programs and the execution of public relations and advertisingcampaigns. Marketers use a variety of project management techniques to ensure projects achievetheir objectives while keeping to established schedules and budgets.

More broadly, marketing managers work to design and improve the effectiveness of coremarketing processes , such as new product development , brand management , marketingcommunications , and pricing. Marketers may employ the tools of business processreengineering to ensure these processes are properly designed, and use a variety of processmanagement techniques to keep them operating smoothly.

Effective execution may require management of both internal resources and a variety of external vendors and service providers, such as the firm's advertising agency . Marketers maytherefore coordinate with the company's Purchasing department on the procurement of theseservices.

Organizational management and leadership

Marketing management may spend a fair amount of time building or maintaining

a marketing orientation for the business. Achieving a market orientation, also known as"customer focus" or the "marketing concept", requires building consensus at the senior management level and then driving customer focus down into the organization. Cultural barriersmay exist in a given business unit or functional area that the marketing manager must address in


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order to achieve this goal. Additionally, marketing executives often act as a "brand champion"and work to enforce corporate identity standards across the enterprise.

In larger organizations, especially those with multiple business units, top marketingmanagers may need to coordinate across several marketing departments and also resources fromfinance, research and development, engineering, operations, manufacturing, or other functionalareas to implement the marketing plan. In order to effectively manage these resources, marketingexecutives may need to spend much of their time focused on political issues and inte-departmental negotiations.

The effectiveness of a marketing manager may therefore depend on his or her ability tomake the internal "sale" of various marketing programs equally as much as the externalcustomer's reaction to such programs.

Reporting, measurement, feedback and control systems

Marketing management employs a variety of metrics to measure progress against

objectives. It is the responsibility of marketing managers in the marketing department or elsewhere to ensure that the execution of marketing programs achieves the desired objectivesand does so in a cost-efficient manner.

Marketing management therefore often makes use of various organizational controlsystems, such as sales forecasts, sales force and reseller incentive programs, sales force

management systems , and customer relationship management tools (CRM). Recently, somesoftware vendors have begun using the term " marketing operations management " or " marketingresource management " to describe systems that facilitate an integrated approach for controllingmarketing resources. In some cases, these efforts may be linked to various supply chainmanagement systems, such as enterprise resource planning (ERP), material requirementsplanning (MRP), efficient consumer response (ECR), and inventory management systems.

Measuring the return on investment (ROI) of and marketing effectiveness various marketinginitiatives is a significant problem for marketing management. Various market research,

accounting and financial tools are used to help estimate the ROI of marketing investments. Brandvaluation , for example, attempts to identify the percentage of a company's market value that isgenerated by the company's brands, and thereby estimate the financial value of specificinvestments in brand equity. Another technique, integrated marketing communications (IMC), isa CRM database-driven approach that attempts to estimate the value of marketing mixexecutions based on the changes in customer behavior these executions generate.


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The importance of MIS in marketing:

1. Order Processing System: Computerized order processing system Captures sales orders from

customers and processes the orders for further action. It checks the inventory availability,pending orders, production details etc., before accepting the customer order. Computerized salesorder processing generates control report daily on orders processed, details of back orders, etc.

2. Sales Management System: Computerized sales management System uses the data from salesorder processing system to generate various sales related reports. This system supports accountsmanagement, direct marketing, sales forecasting and sales Presentations.

3. Logistics Management: The physical distribution is a major activity of marketing function. Ituses computer based OR models to find optimum location of warehouses, shipment routes,quantity to be transported and stocked etc.

4. Consumer Research: Computerized transaction processing systems capture huge quantity of data about customers and their buying patterns etc. It is used to generate vital information aboutconsumer behaviour.

5. Sales Forecasting: Computer based mathematical and operations research models are used toforecast sales and marketing expenses.

Sources of marketing information

1. Transaction data: The transaction data includes data about marketing activities such as sales

data and sales expense data.

2. Marketing research data: This includes data about consumers, product promotion, prices,and packaging distribution agents.

3. Corporate strategy and corporate plans: Corporate strategy and corporate plans based ondetailed analysis of the companys capabilities are useful sources of marketing information.

4. Marketing research agencies: Marketing research agencies regularly collect data aboutmarkets and make such database available to companies at a fee.

C onclusion:

The marketing function identifies consumer needs and develops products based on such marketneeds. It matches the product offering with the consumer needs and ensures ready buyers for theproducts of company. Marketing is a crucial activity for business firms and this function is amajor user of information system facilities. To understand the proper role of information systemsone must examine what managers do and what information they need for decision making.


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Bibliography :

y B.S Poddar, T. Goenkar, Marketing Strategiesy P.Mohan, Management information systemy en.wikipedia.orgy Reviews of Management and Information Systems Books

Mis in manufacturing

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