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    ASSIGNMENT - III

    MANAGEMENT INFORMATION SYSTEMS

    Topic: MIS Application in Manufacturing & Service industry

    Submitted on: 05-11-2012

    Submitted to, Submitted by,

    Ms. Bitha.S.Mani MAHIMA ANIL

    Faculty 1105525

    IMK Varkala MBA III Semester

    IMK Varkala

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    CONTENTS

    Contents Page No.

    Introduction

    Application of MIS in Manufacturing Industry

    Personnel Management Marketing Management Finance Management Production Management Materials Management

    Application of MIS in Service Industry

    Airlines Hotels Hospitals Banking insurance Utilities & Finance

    Conclusion

    References

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    INTRODUCTION

    Management Information Systems is defined as a system which helps the management

    to achieve the organizational goals. MIS can be grouped into business function categories;

    however, in the real world information systems are typically integrated combinations of

    functional information systems. Functional business systems are composed of a variety of

    types of information systems (transaction processing, management information, decision

    support, etc.) that support the business functions of:

    Accounting

    Finance

    Marketing

    Productions/Operations Management Human Resource Management.

    There is a strong emphasis in many organizations to develop such composite or cross-

    functional information systems that cross the boundaries of traditional business functions in

    order to reengineer and improve vital business processes. These organizations view cross-

    functional information systems as a strategic way to share information resources and improve

    the efficiency and effectiveness of a business, thus helping it attain its strategic objectives.

    Business firms are turning to Internet technologies to integrate the flow of information among

    their internal business functions and their customers and suppliers. Companies are using the

    World Wide Web and their intranets and extranets as the technology platform for their cross-

    functional and inter-organizational information systems.

    Application of MIS in manufacturing sector is a process of developing an MIS model

    application which helps the manufacturing sector for achieving its objectives and goals.

    MIS in service industry consists of all the basic applications such as personal, payroll,

    inventory etc., plus the important application called mission critical application. This helps

    to offer the distinctive service to the customers.

    APPLICATION OF MIS IN MANUFACTURING INDUSTRY

    In a manufacturing concern various functions are to be performed and according to

    the functions various departments are formed. MIS fulfills the need of these departments. The

    departments are personnel, marketing, accounting and finance, production, materials. Each

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    department has its own management functions. As per these management functions, MIS

    modules are developed to help the managers.

    When these systems are integrated a cross functional information system is formed.

    The cross functional system gives the effect of decision in one area of business on the other.

    The integrated system provides the necessarydata and information for tactical planning for

    middle level management and strategic planning for top level management.

    Application of MIS in a manufacturing sector is studied for the following functional areas.

    1. Personnel management

    2. Marketing management

    3. Finance management4. Production management

    5. Materials management

    1. MIS for Personnel Management:

    Personnel management has the primary objective of providing suitable manpower in

    number and with certain ability, skills and knowledge, as the business organization demands

    from time to time. Its goal is to control personnel cost through continuous increase in

    manpower productivity resorting to the following techniques:

    a) Motivation through Leadership and Job Enrichment

    b) Grievance Handling

    c) Structuring the Organization

    d) Promotion and Rewards through Performance Appraisal

    e) HRM through Training and Upgrading the Skills

    The information and scope of personnel function have resulted in greater complexity in field.

    There is need to cope with incredible volume of information and maintaining it. There is need

    to classify, reclassify and cross this information. This can be achieved by computerized

    personnel system which enables personnel management to manage more efficiently and

    effectively and to provide more positive services to the organization.

    Input for Personnel Development: The following documents serve as the input in personnel

    information system:

    o Productivity Data on the Job

    o Industry Data on Manpower, Skills, Qualificationo Bio-Data of Self and Family

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    o Personnel Application Form

    o Attendance and Leave Record

    o Appraisal Form

    o Appointment Letter

    o Wage/ Agreement

    o Record Sources of Manpower, University, Institutes, and Companies

    Components of Personnel Information:

    A computer based personnel information system is designed to support the operational,

    managerial and decision making functions of the personnel division in an organization.

    Following are the components of the personnel management information system:

    i) Establishment Records: Establishment relates to the setting up of budgets for appropriate

    staff levels and grades throughout the organization. The system should encompass these

    budgeted posts and report on variations between actual staff numbers and the budget

    numbers.

    ii) Recruitment Records: Details of all vacancies and applicants should be held by the

    system. These should show the status of each vacancy and of each applicant and should

    perform as much as possible of the administrative process. This will generally mean that the

    system should interface with a word processing system.

    iii) Personnel Records: These relate to identification data, current and historical salary and

    allowances data and various employees attributes such as grades and key dates.

    iv) Pensions Records: The system maintains all details of service entitlements of employees,

    contribution by both the employee and the organization to pension scheme, details of

    dependents, spouse and children, data required for actuarial purpose to verify the availability

    of the scheme and details and entitlements of employees who have become pensioners.

    v) Training Records: These include data relating to each employees qualification, skills and

    experience. The system would also hold details of internal and external training courses and

    its relevant details.

    vi) Absence records : The system should allow for the recording of various absence types

    like sick leave, special leave etc. Input of this sub-system should be automatically reflected in

    the establishment sub-system.

    vii) Industrial relations records : The system should hold data to assist management in

    negotiations and planning for alternative strategies. Much of this would be held for normal

    administrative purpose. It is the facility to extract the data in meaningful terms, to able to

    project forward and to test the impact of applying various rules and scenarios.

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    2. MIS for Marketing Management:

    In order to pursue market opportunities as well as anticipate marketing problem,

    manager need to collect comprehensive and reliable information. Managers cannot carry out

    marketing analysis, planning, implementation and control without monitoring and

    researching customers, competitors, dealers and their sales and cost data. Every firm has

    many information flows of interest to marketing management. Many companies are studying

    their executives information needs and design information system for marketing to meet

    these needs. Instead of plethora of unrelated data, an MIS combines various inputs and

    present integrated reports.

    Definition: Marketing Information System is a continuing and interacting structure of people,

    equipments and procedures to gather, sort, analyze, evaluate, and distribute pertinent, timely

    and accurate information for use by marketing decision makers to improve their marketing

    planning, implementation and control activities.

    Components of Marketing Information System: As shown in figure below, the box on the

    left shows components of the marketing environment that manager must monitor. Trends in

    the marketing environment are picked up and analyzed through four subsystems making up

    the marketing information system- Internal Accounting System, Marketing Intelligence

    System, Marketing Research System and Analytical Marketing System.

    Internal Accounting System is the most basic information system used by marketing

    executives. It is the system that reports orders, sales inventory levels, receivable, and payable.

    By analyzing the information, marketing managers can spot important opportunities and

    problems.

    The Order Shipping Cycle: Sales representatives, dealers and customers dispatchorders to the firm. The order department prepares multi-copy invoice and sends them

    to various departments. Out of stock items are back ordered.

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    Shipped items are accompanied and sent to various departments. The company wants

    to carry out these steps quickly and accurately. The computer is harnessed to expedite

    the order shipping billing cycle.

    Improving the Timeliness or Sales Reports: Marketing executives receive salesreports some times, after the sales have taken place. Many companies complain that

    sales are not reported fast enough in their company. Marketing information system

    can improve these things rapidly.

    Designing a User Oriented Report System: In designing an advanced salesinformation system, the company should avoid certain pitfalls.

    The marketing information system should represent a cross between what managers think

    they need, what managers really need and what is economically feasible. Management

    information system should provide the reports for all marketing departments.

    Information system can delete the unwanted system from the survey and from other

    departments and prepare reports which are required by different persons of marketing

    department.

    3. MIS for Financial Management :

    Financial management function has a primary objective of meeting the financial needs of the

    business. The second objective of FM is to meet the statutory compliance by way of declaring

    the auditing financial result, submitting reports and returns to the govt. and Tax authorities

    and fulfil the obligations to the shareholders. FM uses variety of tools and techniques like

    Break Even Analysis, ABC Analysis, Ratio Analysis, Management Accounting and Cost

    Analysis.

    Input Documents :

    o Receipts from customers, authorities, employees, shareholders, financial institution and

    others.o Payment to suppliers, authorities, share holders, financial institutions and others.

    o Data from stock exchange on the shares prices consolidated financial results of the other

    companies etc.

    Transactions are payments and receipts and they are documented through journal vouchers,

    bills, debit notes, credit notes, receipts and transfer documents.

    Application of Financial Management Information System : The major application of

    financial management information system includes financial accounting system, which

    accounts for the financial transactions of the company and produces financial results for the

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    company. It produces balance sheet for the company where the performance of the company

    is published in standard format prescribed by the govt. The system is made so comprehensive

    that it not only collects financial data but also collects data on different matters such as job,

    department, and division and so on. It forms a basis for certain reports which are required by

    the top level management. The users of the financial data base are finance managers, cost

    controller, auditors, material managers, marketing managers, company secretaries and the top

    management.

    4. MIS for Production Management :

    The objective of production management function is to provide manufacturing

    services to the organization. This involves the manufacturing of products of a certain

    specified quality and within certain costs in a stipulated time, fulfilling the promises given to

    the customer.

    The production management function is supported by other functions like production,

    planning and control, industrial engineering, maintenance and quality control. It has a very

    strong interface with materials management function. The organization of production

    management differs according to the types of production i.e. job shop or continuous. It also

    varies with the production policy of the organization, like whether the production is initiated

    against a customer order or for stock.

    The system methodology differs with respect to the manufacturing technology the

    organization has adopted. The goals of the production management are fuller utilization of

    the manufacturing capacity, minimal rejection, maximum uptime of plans and equipments

    meeting the delivery promises. The function is of key importance when business strength is

    in technology and manufacturing, and the market for product and services exist. The function

    is pegged with the responsibility of managing high investment in plant, equipment and

    machinery. It also has to control the large labour force at its disposal.

    Inputs of Production Management Information System : The production management is

    conducted through innumerable transaction. They relate to planning, issuing and controlling

    the various task involved in the course of production.

    i) Process Planning Sheet

    ii) Quality Assurance Rating Form

    iii) Production Schedule

    iv) Process Planning Sheet

    v) Job Cards

    vi) Finished Goods Advice

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    vii) Material Requisition

    viii) Customer Order

    ix) Breakdown Advice

    x) Material requirement

    xi) Production Programme

    The production management also uses standards and norms extensively developed

    over a period of time as input in the system. These are generally known as production rate

    available capacity, labour components, material usage standards, rejection norms etc.

    Documents mentioned above are indicative and may be more or less different,

    depending upon the type of production and nature of production of industry. The input data in

    each transaction would also vary from industry to industry as would the production

    methodology adopted by the organization. The system and procedures used by the

    organization in performing the production function also vary respectively.

    Components of Production Management Information System :

    The components of production management information system include:

    a) Sales department to find out what the customer wants and to compare this with what the

    firm can provide.

    b) Design department to design new requirements and make modifications in established

    items either to bring them up to date or to make them meet a specific requirement of the

    customer.

    c) Purchasing department buys the material required at the best possible price and on the

    most reliable delivery to make the various items either on one off basis for individual job or

    replenish material held in the stores on maximum and minimum levels

    d) Manufacturing process sees that the parts are produced as economically as possible for

    delivery at the time required by the customer and to meet the standards set by the design

    department.

    5. MIS for Materials Management :

    Objectives:

    To provide material for production, maintenance and service at economicalprices in an appropriate quantity and quality

    Material procurement, stocking and inventory management Searching new substitutes to reduce the cost of materials Reduction of inventory Issue of materials Inspection & quality control.

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    These subsystems are used to fulfill the functional needs of accounting & query, analysis,

    decision making and control

    (1) Accounting:

    Material management account for several entities as

    a. Purchase quantity

    b. Issue quantity

    c. Present stock

    d. Rejections

    e. Consumption

    f. Cost of purchase.

    From above entities valuable data for preparing different reports may be collected hence

    accounting is one of the important functions of materials management system.

    (ii) Query:

    In materials management queries concerns with supplier, pricing, stock level, payments and

    purchase prices.

    (iii)Decision Analysis:

    Decision analysis mainly concerns with the price of an item. The price of the same item may

    vary from supplier to supplier. Price is influenced by reliability & quality of material. Hence

    various aspects are to be considered while deciding the price.

    Stocking of item is the other major issue for decision. Stocking decision means whether it is

    necessary to stock the material, what should be the inventory level, reordering quantity, etc.

    The third major decision of materials management is controlling of item. The systems of

    control are:

    -Fixed Order Quantity (FOQ)

    -Reorder Level (ROL)-Varying Order Quantity.

    Different methods of analyzing inventory are available to decide inventory control

    policy.

    (iv) Control:

    The control function in materials management is exercised on:

    - Capital blocked in the inventory.

    - Stock affecting the production activity.

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    - Reliability and dependability of suppliers.

    - Cost of purchase.

    The capital blocked in the inventory is compared with budgeted amount- The delivery

    promise and material quality is rated to arrive at performance index at supplier and compared

    with the norm.

    Analyzing above results helps in finding substitute item or other dealer. Also instead of

    importing, indigenous supply is economical. Thus control application is useful in making

    these decisions.

    (v) Reports:

    In materials management systems most reports are based on accounting applications and

    decision analysis systems. Reports can also be displayed on screen also are developed to

    answer adhoc queries on price stock, specifications supplier etc. Reports are produced on

    regular intervals.

    APPLICATION OF MIS IN SERVICE INDUSTRY

    Service Sector is dealing with different types of services to the customer, like

    manufacturing sector it does not have physical goods to manufacture. The main objective of

    service sector is to provide most satisfying service to the customer.

    In service sector certain services must be carefully managed to provide efficient and

    effective service to the customer. Unique services can make organization to create an

    identity, growth and remains ahead of competition. Hence a sensitive market research is

    necessary to identify the customer market segment to be served.

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    The service industry consists of some of the major applications which need to be

    controlled in a very good way for getting the best stuff out of them. By these applications, the

    service organization becomes efficient in the nature and then is able to provide with the best

    type of the services to the customer. In the todays world, there occurs a tremendous

    competition between the companies in order to achieve the maximum profit and this

    competition also exists a lot in the marketing world, one company directly or indirectly

    always tries to show the other company inferior to it. So in this competitive scenario, one of

    the major needs of the industry is to get a service distinction, in order to create a position and

    a particular identity and growth to remain ahead of the various other industries.

    In the service sector, the identification of the segment to be served can be obtained by

    the sensitive market and also with the help of the consumer research. The service demands

    are very dynamic in the nature and as a result of all this, for the upgradation of the service

    facilities, it is very much necessary to conduct a research on the requirements, expectations

    and the perceptions.

    Principle of Distinct Service

    1. Listen, understand and respond to the customers.

    2. Establish service strategy.

    3. Set standards and measure performance select, train the employees to work.

    4. Recognize and reward the accomplishments.

    MIS Applications in Service Industry

    Nowadays MIS is useful in almost all service industries. Every service industry wants to

    provide distinctive services to the customer. Typical service industries where MIS is used are

    1. Airlines2. Hotels

    3. Hospitals

    4. Banking insurance

    5. Utilities & Finance

    1. Airlines

    The objective of airlines is to move people and goods from one location to other safely on

    time. Good services in airlines are:

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    Convenience time. Reasonable Rates. Travel Comfort Meal Quality Customer Treatment Staff Services Facilities at airport.

    Distinctive Services can be:- Assistance in Travel Managements

    - Hotel Accommodation

    - Surface Transport Facility

    - Solving Passengers Problems without hassle

    For managing services to the customers / passengers. Following information isnecessary for managerial decisions:

    1. Passenger Information

    2. Information on the aviation industry.

    1. Passenger Information

    Passengers Personal information is collected to enable the management to provide

    personalized services. Personal information includes:

    (i)Purpose at travel (tourist / non tourist).

    (ii) Socio-economic class.

    (iii) Duration & destination.

    (iv) Eating Habits.

    (v) LanguageCommunication.

    (vi) Expectations from Service.

    The information collected is the input to the MIS, this helps to offer suitablepackages to the customer for maximum satisfaction, e.g. passengers can be tourist,

    non-tourists, domestic, international traveler, family or single. Each category of

    customer has different expectations of services form airline industry. Therefore it is

    necessary to provide suitable service package as per the need.

    Depending on the type and class of passenger different fare category can be offered

    which passenger can be offered. Also different fares can be offered for off season,

    family, tourists etc. The package may include pre-travel and post-travel services.

    2.Information on Aviation Industry

    Even though best service package is designed it is of no use if is not implemented properly.

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    Also when safety, security and availability of lanes is doubtful the best package is failed.

    Therefore MIS is designed by considering following factors:

    - Infrastructure Facilities.

    - Conditions of Planes

    - Critical Spares

    - Skilled Staff.

    MIS helps in planning and control management strategy. MIS is also important in strategy

    formulation and implementation of distinct services.

    2. Hotel Management

    Hotel is aplace of convenience where people can stay. Now a day the concept of hotelhas

    been changed, people look for distinctive services as different people are using hotel. Hotels

    are designed for individuals, business executive, families, tourist groups etc. To fulfill the

    needs of different customer segments star hotels have emerged to service as per their budgets.

    Hotel Management likes to provide better services to all the customers. Hotel management

    always look for high hotel occupancy with satisfied customer.

    The role of MIS in hotel management is to provide information support to assess the

    customer expectations, their perceptions and to satisfy them. The use of MIS for hotel

    management is as under:

    1. Keep track of customer profile

    2. Monitoring occupancy status.

    3. Projecting Future needs.

    4. Monitoring expectations.

    5. Monitoring communication needs.

    6. Customer Database.

    1. Keep track of Customer Profile:

    Customer profile is prepared to anticipate the expectations. It also helps in anticipating

    customer perceptions about their services and process of offering the services. Hotel

    management can use this data for decisions on infrastructure amenities investments like

    shopping mall, swimming pool, casino, different restaurants, recreation centre, transport, etc.

    2. Monitoring Occupancy Status:

    Higher occupancy is desirable; MIS provide the present occupancy status. It also provides the

    reason why the occupancy is less. This helps management to revise tariff, oiler different

    tariffs according to seasons, discounts, personalized services. All these factors may improve

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    the occupancy level and hence the revenue.

    3. Projecting Future Needs:

    MIS is used for projecting future needs of the customers. Considering the future needs hotel

    management makes suitable changes to attract customers e.g. now hotels can be used as place

    for business meetings, conferences exhibitions, marriage, receptions and other entertainment

    purposes. Hotel management modifies infrastructure suitably to cater the needs of customers.

    4.Monitoring Expectations:

    Customerexpectations on service differ from each other, Customer expectations may be on

    following criteria:

    a. Fast and slow service.

    b. Manner of offering service.

    c. Process of offering service.

    d. Effective service.

    Efficient and effective service results from training, understanding and knowledge of

    manpower. Speed of process resulting from strength and competence ofmanpower. MIS

    monitors the expectations and manpower needs.

    5. Monitoring Communication Needs:

    For interacting with customer communication is required, hence all hotel staffs must

    upgrade the knowledge and skill of communication. Hotel staff must learn to greet different

    customers in different way, give necessary information about facilities or amenities.

    MIS monitors such communication needs. MIS identifies need of training to employees to

    provide quality services to customers.

    6. Customer Database:

    Hotel management maintains a database ofcustomers which keeps record of personal

    information i.e. name, address, room choice, food choice special interests and contact

    numbers. The record is used by hotel management to build strong personal relationship so

    that a sense ofcare and concern may be developed.

    MIS manages front and back office systems. Front end system is used for customer

    handling and back end system is used how commercial use such as billing, accounting,

    correspondence, etc.

    3. Hospitals Management

    Hospitals have changed their views towards customers, instead of medical and clinical

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    assistance now hospitals provide total healthcare with a concern for the people who need it.

    Hospitals are like business organization with a mission ci best health care for people. The

    scope and service offered by hospitals include & health care guidance, preventive care, posts

    clinical attention, advice etc.

    MIS plays a vital role in managing hospital resources like operation theatre, xr ay,

    pathological labs, medical diagnostic equipments, hospital beds, medicines, blood banks,

    surgeon, anesthetist, and physician and nursing staff. Resources planning also include

    emergency requirements of patients which cannot be predicted. The MIS applications in

    hospital management can be divided into two categories.

    I. Front End Applications:

    (I) Patient database.

    (ii) Medical Server Database.

    (iii) Resource Planning and Control.

    (iv) Medical Case history database.

    2. Back Office Applications:

    (i) Core Application

    (ii) Critical Control Applications

    Front End Applications

    Front end applications include primary information about the patients. Front end

    applications are mainly supported by

    (i) Patient Database

    Patient database is used to handle the queries on existing patients. The queries may be from

    a doctor or any staff member of hospital.

    (ii)Medical Server Database

    Medical Server database contains name and address of important service centers fromwhere services can be obtained in case of emergency. The database includes list of clinical

    laboratories, blood banks and diagnostic centers.

    Medical Server database also includes details of medical support staff e.g. doctor, nurses,

    pathologists, radiologists, and anesthetist and Lab technicians. The details of each staff like

    time, address, emergency Contact number, working hours, holidays etc.

    (iii) Resource Planning and control:

    Resource planning and control Is used for deploying the resources efficiently and

    effectively. The resource capabilities are identified and they can be put in proper use.

    Resource planning and control also involves answering queries on availabilities of

    resources, scheduling and rescheduling of resources.

    (iv) Medical History Database:

    Medical history database is used for

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    - guidance and research

    - diagnosis purpose

    - deciding health care strategy

    - Judgment of side effects.

    - Determining patients response.Back Office Applications

    Back Office applications include care applications and critical control applications.

    (1) CareApplications:

    Care applications at MIS is helpful for

    Manpowerplanning

    - Hospital billing and its recovery

    Planning and control function.

    - Financial accounting

    - Capital budgeting

    - Maintenance of resources.

    (ii) Critical Control Applications:

    Critical Control applications provide the basic standards for control. The exception reports

    obtained can beused by management in planning and control. It keeps track of in planning

    and control. It keeps track of:

    Patients waiting time.

    Patient service time.

    Non use of critical resources.

    Expiry date ofcritical drugs,

    - Statistical data about patient visiting.

    Periodical review of revenue generation. Analysis of delay in serving patient.

    Details of patients cannot be serviced due to i.1r.itructurr or

    Thus MIS supports almost all functions of hospital management. Fig. summarizes

    applications of MIS in hospital management.

    4. Banking & Insurance

    Banking is a place where the financial services are offered, viz. checking, saving and

    providing credit to customers. Customer choose the banks on-

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    The ease of doing business The quality of personnel and service The range of the financial services.

    Information systems are important to design MIS for banking systems

    -Customer Database

    -Service

    -To the customer

    -For business promotions

    MIS for Insurance MIS handles three major areas of insurance company:

    The development of new policies.

    The settlement of claims.

    Administrations and Management of policies.

    Information for New Policy Development- Finding out the risk incidence cost of risk management, identifying the conditions for giving

    the insurance offer

    - Assessment of insurance premium.

    - It is focused on the trend in the business and industry.

    - They must identify the risk possibilities and covering then by appropriate insurance policy

    The Settlement of Claims This is very critical application in the MIS and it needs effective design, so that managers

    can take easy decisions. Reports generated by MIS should bring out exception reports on the claim pending, their

    disputes, not settled and rejected claims due to certain reasons.

    Administrations and Management of Policies Many a times you forgot to pay the premium in time. This results in laps of policy.

    You need to renew a policy in that case if you want yourself to be benefited from the policy.

    This is a critical application in the insurance business, which manages the existing policies

    of the policy holders.

    Management of policy includes, renewal of the policy and revision of the policy.

    MIS must help in generating automatic reminder service and generating letters to that

    respect.

    5. Utilities & Finance

    MIS is used for various business utilities e.g. electricity board, telephone, gas, licensing,

    water supply, credit cards etc. All such applications have large number of inputs as large

    number of beneficiaries of the services.

    Input to such systems are name, addresses, code of measuring unit i.e. meter number

    telephone number, policy number, license number and quantity of supply i.e. meter units,

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    telephone calls, quantity consumed and period for which data is recorded. The output is a bill,

    notice or claim.

    Because of MIS, utilities billing process has become now fast and the cost of service is

    reduced as overheads are reduced. Also the paper work has reduced considerably.

    Fund Raising Application

    For any business operation funds are to be raised from various sources: The source is

    selected based on eligibility, cost and profitability of the source. Major available sources are

    shares, fixed deposits and bonds Some parameters are to be monitored as governed the laws,

    rules and regulations. Parameterized software application is developed to monitor these

    regulations.

    Details From fund raising applications are to be recorded e.g. applicants name, address,

    name of bank, branch, cheques details,brokers name, amount, Signature etc. All the details

    are input data for the system Then the administration and execution of public issue is done by

    the broker & banker. A fund raising application has three stepsapplication processing,

    scheme accounting, warrant reminders printing as shown in fig.

    MIS: Service Industry

    MIS in service business is supported by three factors i.e. people, process and technology. In

    other words it can be said that there are three dimensions of MIS in service industry as shown

    in fig.

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    MIS should be focus on the service needs of the people. The needs should be continuously

    monitored and evaluated in order to revise the service strategy.

    Once the strategy is fixed, the second factor is service process. The MIS should evaluate the

    process efficiency and effectiveness for the decided operating standards.

    The third important factor is service technology. Service technology decides the efficiency

    and effectiveness of process. The service technology involves data communication,

    information search, real time decision. When all these parameters are handled effectively,

    system efficiency improves significantly. The management in service industry may rely if

    appropriate technology is chosen.

    There is significant difference in service quality when an appropriate technology is chosen.

    The three important factors of service industry and MIS focus is summarized.

    1. People Understand the need of people.

    2. Process Evaluate & control process output.

    3. Technology Technology Decisions.

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    CONCLUSION

    Application of MIS in manufacturing sector is a process of developing an MIS model

    application which helps the manufacturing sector for achieving its objectives and goals. The

    basic needs for this development are1. Transaction processing system concept2. Database management system concept (DBMS)

    In the manufacturing sector, physical goods are to be manufactured for the customer,

    but this is not the case in the service sector. Unlike the manufacturing sector, the service

    sector does not involve any manufacturing of the physical goods for the customer. So

    now it can be said that the Management Information Systems that are generally used in

    the manufacturing and the selling organization cannot be used in the service sector.

    Payroll, accounting, inventory etc form a very important part of the data processing

    applications and are used in the service sector only sometimes but an important point to

    be kept in mind here is that these applications are not that much critical for the service

    sector. The main mission in this service sector is to provide service to the customer that

    ultimately satisfies him but this is not the case in the manufacturing sector as here this

    concept varies from industry to industry and from organization to organization.

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    REFERENCES

    1. Jawedakar.S.Waman, (2007), Management Information Systems: Text and Cases,Tata McGraw Hill Companies, Inc.

    2. Barbara.C. McNurlin; Ralph.H.Sprague,Jr., (2007), Information SystemsManagement, Pearson Education Inc.

    3. Singh.S.R, (2007), Information Systems Management, A P H PublishingCorporation

    4. Davis.B.Gordon; Olson.H.Margrethe, (2008), Management Information Systems:Coneptual Foundations, Structure and Development, Tata McGraw Hill Companies,

    Inc.