applicationinmanufacturingsector-130419011912-phpapp02

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Chapter 12:

APPLICATION IN MANUFACTURING SECTOR


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Applications of management functions of the industry

Model of information processing system

Integration of manufacturing applications

LEARNING OBJECTIVES


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Introduction

Mis model of application in manufacturing sector is devided into number ofdifferent processes which are as under given

- OLTP

- RDBMS

- DATABASE

- INPUT

- PROCESS

- OUTPUT

- UPDATION


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Model of Information Processing System

OLTP RDBMS

DATABASE

APPLICATION

DEVELOPMENT

SYSTEM

ACCOUNTING QUERY ANALYSIS CONTROL

PRINT

PROCESS SCREEN

STATUTORYCOMPLIANCE KNOWLEDGEUPDATE OPERATIONUPDATE DECISIONANALYSIS ACTIONUPDATE


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Model of Information Processing System

The online transaction processing system helps to process input intodatabase

The system designer develops an application with the objective of

accounting, transaction based results and providing the reports on the

same.

The second objective is to provide query system for assessment of the

status of record, result or document.

Threw analysis and control application development and maintained

process take place.

After this input process next is report generation and screen display havebeen done.

At last the updating process take place.


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Different management effected on mis

There are various kinds of management and its application which are asgiven beloved.

- Personal management

- Financial management

- Production management

- Raw material management

- Marketing management

- Corporate overview.


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Personal management

Pm functions has the primary objectives is providing suitable manpower innumber with certain ability, skills and knowledge as organizations

demands from time to time.

Main goal is increase in manpower productivity by resorting following

techniques.

1) HR development threw training and upgrade skills

2) Motivation threw leadership and job enrichment

3) Promotion and rewards threw performance appraisal

4) Grievance handling5) Structuring the organization


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Personal management

Input transaction documents

- Personnel application form

- Appointment letter

- Attendance and leave record

- Biodata,self and family

- Production/productivity data on jobs

- Wage/salary agreements

- Record of complaints, accidents etc

- Industry data

- Records of sources of manpower


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Personal management

Applications:

Accounting

- Attendance

- Manpower

- Leave

- Salary/wages

- Loans and deductions

- Accidents

- Production data

- Skills

- Bio data

- Family data


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Personal management

Query:

- Who is who?

- Strength of section,department,division

- Number of persons with a particular skills

- Attendance, leave record of employees

- Salary/wages of employees

- Designation and number of personnel detail in organizations

- Personnel records of employees

Analysis:

- Analysis of attendance by a class of employees

- Leave analysis by a group of employees

- Trend in leave record

- Analysis of attendance

- Analysis of salary- Anal sis of overtime


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Personal management

Control:

- Probable absence versus workload

- Projection of personnel cost against manpower increase

- Assessment of accident records

- Personnel cost versus industry cost

- Projection of manpower needs and evolving recruitment and training

programmers.


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Personal management

Reports:

Statutory reports:

- Attendance records

- Strength of employees by category-permrent,trainee and apprentices

- PF,Ledgers and returns

- IT form

Information updates:

- Daily attendence reports

- Employee strenth

- Joining and transfer of employees

- Personnel cost of department,job,product.

- Periodic statement


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Personal management

Operation update:

- Daily attendance report

- Overtime versus work completed

- Projected absenteeism and distribution of workload

- Cost of personnel by work completed

Decision analysis:

- Analysis of attendance for season, festival and by skills.

- Overtime analysis by department, employees and jobs

- Analysis of accidents and deciding on safety measures and training

- Cost analysis by personnel versus jobs vs skills and planning for new

recruitment


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Personal management

Action reports:

- Recruitment and additional manpower or subcontracting of jobs

- Acceptance of orders on the basis of workload.

- Reduction, transfer of employees

- Preparations of training and development programmers with specific

needs

* Most of this reports is useful with top level management


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Financial management

Main objective is fulfill financial needs of business from time to time byproviding working capital and organization to achieve goal.

Other objectives are help organizations with audited financial reports time

to time.

Financial management uses variety of tools and techniques which are asunder:

- Break even analysis

- Cost analysis

- Cash flow projections

- Ratio analysis

- Roi analysis

- Management accounting

- Expense analysis, Auditing and control


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Input transaction documents:

- payments: to suppliers,authorities,employees,shareholders,financial

institutions etc

- Receipts : from customers,authorities,employees,financial institutions and

others.- Data from stock exchange of the share prices,consolideted financial

results of the other companies etc.


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Applications:

Accounting:

- Sales

- Purchase

- salary/wages

- Inventory

- Expenses

- Capital purchase

- Fixed deposits

-Shareholders funds

- Income tax, sales tax,exise duty, customs duty

- Budgets- Fixed assets


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Query :

- The query is processed for the following with respective codes as keys:

- Main account

- Subsidiary account

- Locations(factory,branch etc)

- Documents

Decision analysis:

- Cash flow analysis

- Source and users funds

- Debtors analysis- Creditors analysis

- Budgeted analysis

- Ratio analysis

- Cost analysis


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Controls:

- Account receivable, outstanding beyond acceptance norms

- Advances to creditors

- Valuation of non moving inventories

- Analysis of nonmoving accounts and legal actions

- Cost overruns beyond norms and action on alternatives- Performance analysis

Reports:

Statutory compliance:

- Tax returns

- Registers

- Declarations of creations results to the financial institutions

- Declarations of financial results

- Declarations of annual results


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Information updates:

- Monthly trial balance, balance sheet and profit and loss account

- Stock valuation

- Account receivable

- Account payable

- Expanses

- Cash positions

- Sales, purchase of assets by certain classifications

- Overall business achievements

Operations updates:

- Statutory returns and reports

- Tax details

- Reports on finished goods, dispatches and invoicing

- Reports on materials receipts and paynments


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Decision analysis:

- Break even analysis

- Roi for choice of investment

- Trend analysis

- Cash flow analysis

- Analysis current, fixed and nonmoving assets

Action update:

- Overdue receivables

- Non supply of goods and services but advance paid

- Payments to creditors, where penalties are involved

- Poor usage of fixed assets and disposals

Production Management


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Main objective is to provide manufacturing services to the organizations

The other functions like planning,control,industial engineering,maintaince

and quality control.

The organizations of the production management is differ from type of

production

The functions goals of the production management are fuller utilization of

the manufacturing,capicity etc.

Input transaction documents.

- Production program

- Production schedule

- Process planning sheet

- Job cart

- Job status advice

- Quality assurance rating form

- Finished goods advice

- Material re uirement


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Production Management Applications

Accounting

- Quantity of production with respect to a time period

- Material requirement

- Rejection quantity

- Breakdown incidence

- Labor detail- Machine and facility utilization

- Labor hours

Query:

- Status of job

- Production program and job schedules

- Status or availability of material

- Standard information on machines

- Standard on skills


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Decision analysis:

- Make or buy

- make or subcontract

- Use of alternate material

- Rescheduling and loading of jobs

- Planning and scheduling of jobs

- Selection of production facilities

control:

The exceptions which need to highlighted are:

- Hold up a key jobs beyond certain limits

- Utilization of key facilities

- Standards

- Backlog of large number of order and failure to meet promised delivery

date.


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Statutory compliance

- PM should be significant towards legal documents which are related with

other managements

- The production hours, general workloads are effected as statutory side in

pm,.

Information update:

- Follow standard

- Information should kept up to date

- Data of job hours, production hours etc. Operation updates:

- The reports highlightedplanned verses actual

- Job hours, job schedule etc


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The decision analysis

- Focuses on specific functions which is helpful in decision making

- Focused on information,knoledge and bi

- Analysis take place with help[ of DSS

Action update:

- These reports provide information update on the post implementation

scenario of decisions

- Measurement of decisions count in this report

- Help to decision maker with providing a proper infrastructure which ishelpful in future,


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Raw Material Management(RMM)

The objective of RMM is to provide material for production,maintainanceand services at economical prices, in an appropriate quantity and quality

with extra inventory.

Mainly focused on cost of material

Deals with supplies of goods

Managerial task focused on cost of production, the price with the quantity,

performance of production department etc.

It is controlled by corporate management and regular checking ,audit take

place to ensure the procurement of material is done at an economic price.


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- Purchase requisition

- Purchase order

- Receipt of goods

- Return of goods to supplier

- Issue for production

- Return from production

- Certification of bill for payment

Application:

- Forecasting and planning

- Purchase ordering

- Goods receipt

- Inspection

- Issuing the material

- Bill assin and control

R M i l M (RMM)


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Raw Material Management(RMM) Accounting:

- Purchase quantity

- Issue quantity- Stocks

- Goods returns

- Rejections

- Performance

- Value of purchase

Query:

- Query is centre around price,supplier,stock and pending aspects of

purchase, returns and payments

- Query may be on item purchased, purchased price, supplier and other

purchase related detail.

R M t i l M t(RMM)


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Decision analysis:

- Decision is based on cost, material quality and quantity of raw material

- The first major decision is related with price of an item- A DSS is major aspects which proves as helpful to decision maker to take

decisions

- Material management performs supporting role to production

management in decision analysis.

Control :

- Performance is evaluated with 4 accounts viz,capital blocksed in

inventory, number of stock outs affecting production activity, reliability of

suppliers, cost and purchase.

- Periodic evaluation required with stocks,rawmaretials etc.

- The evaluation of non moving and non selling inventory is necessary while

control process take place in raw material management.

R M t i l M t(RMM)


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Reports and Displays:

Statutory Compliance:

- Stock ledger

- Value stock statement

- Octroi register

- Excise duty returns and registers

- Custom bonds register

- Returns on tax

R M t i l M t(RMM)


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Information Update:

- There are various information which required regular updating in register

which are:

- Price and trend

- Information about material- New supplies and sources of supplies

- Tax duties

- Value of inventory

- Value of non moving inventory

- Material information for future usage

R M t i l M t(RMM)


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Raw Material Management(RMM) Operations update:

- Daily goods received register

- Statements of stocks- Reports on purchase

- Statements of supplies

- Statements of payments

- Statements of supplies received and rejected

Decision analysis:

- Stock outs

- Cost of purchase and overview

- Value of inventory and analysis

- Reliability of suppliers

- Vendor performance

- Material performance

R M t i l M t(RMM)


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Action Update:

Action update take place on decision wise that whether a decision is

implemented or not.

Review of action take place and impact can be measures

Actions is related with vendors,purchase,quality measurement etc.

M k ti M t


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Marketing Management

It is deal with satisfying the consumer

Scope is identify need of consumer,envolving product concept, designing

the product

The activities involves are market research, consumer

surveys,advertising,sales,promotions,campaign,stocking of products,

developing ,etc

Control take place at sales department wise

It is directly interacted with sales management.



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- customer order

- Order acceptance

- Delivery note

- invoice note, credit note, debit note

Applications:

There are several highly process oriented accounting applications of

marketing management.

The main accounting activity is sales everything is focused on sales

The other accounting activities are as given



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Accounting:

- Product sale

- Product family

- Sales value

- Sales tax

- Dealer

- Distributor

- Customer

- Excise duty

- Inventory

- Area

- Market segments

- Returns

- Receivables



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Query

- The queries in the MM are on customer,product,price,stock,sales.

- It mainly focused on orders, transaction process after order has been

received

- It has also on assessment of sales performance and comparison withvarious competitors also.

Decision analysis:

- Decision is focusing on prices,orders,discounts,commisions,deciding

sales terms etc

- The complexity comes in price decisions

- Dss is helpful to MM to decide a perfect decision on critical issues on MM

- There are various application developed to support MM to take right

decisions



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Control:- Control is focused on business goals

- Control comes with comparisons of sales vs budget, marketing cost vs

budget cost, product sale vs target fixed

- Control applies on distributor,dealer,branch and marketing persons,planned sales, competitors review etc.

- The control applications designed with focusing on decision and action of

MM.



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Marketing Management Reports

Statutory reports:

- taxes and duties- Excise duties

- Sales tax

- Audit record and review

Information update:

- product sales ledger

- Sales summary

- Account receivables

- Sales analysis

- Market analysis

- Competition analysis

- Contribution analysis



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Operation update:

- Order book

- Dispatch reports

- Inventory

- Invoice

- Customer complaints

- Complaints disposed

Action update:

- Sales vs. budget

- Expenses vs. sales

- Sales growth vs. sales objectives

- Stock vs. budget growth

- Complaint vs. number of complaint solved

Corporate overview


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Corporate overview

It is combination of all management

The top management is informed by each manager threw reports and

performance evaluation take place according to this reports

The reports contains note, inner-office memos etc documents

The basic communication is necessary between various departmentbefore submitting report to top management

Periodic evolution is necessary

The main example of corporate overview according to management wise

is like this

Corporate overview


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Corporate overview

Marketing Production Finance Expenses

Orders Planned

productions

Current assets Revenue

expenses

Sales Actual production Current liabilities Capital

expenditure

Cost of goods sold Cost of production Current ratio Payment toemployees

Finished goods

inventory

Raw material

inventory

Account receivable

to turn over

Marketing expense

Receivables Payables Inventory turnover Other expenses


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