System Analysis and Design

System Analysis and Design

Syllabus

SYSTEM ANALYSIS AND DESIGN Module 1: Data and Information (3) Types of information: operational, tactical, strategic and statutory why do we need information systems management structure requirements of information at different levels of management functional allocation of management requirements of information for various functions qualities of information small case study. Module 2: Systems Analysis and Design Life Cycle (3) Requirements determination requirements specifications feasibility analysis final specifications hardware and software study system design system implementation system evaluation system modification. Role of systems analyst attributes of a systems analyst tools used in system analysis Module 3: Information gathering (3) Strategies methods case study documenting study system requirements specification from narratives of requirements to classification of requirements as strategic, tactical, operational and statutory. Example case study Module 4: Feasibility analysis (3) Deciding project goals examining alternative solutions cost benefit analysis quantifications of costs and benefits payback period system proposal preparation for managements parts and documentation of a proposal tools for prototype creation Module 5: Tools for systems analysts (3) Data flow diagrams case study for use of DFD, good conventions leveling of DFDs leveling rules logical and physical DFDs software tools to create DFDs Module 6: Structured systems analysis and design (3) Procedure specifications in structured English examples and cases decision tables for complex logical specifications specification oriented design vs procedure oriented design Module 7: Data oriented systems design (3) Entity relationship model E-R diagrams relationships cardinality and participation normalizing relations various normal forms and their need some examples of relational data base design. Module 8: Data input methods (3) Coding techniques requirements of coding schemes error detection of codes validating input data input data controls interactive data input Module 9: Designing outputs (2) Output devices designing output reports screen design graphical user interfaces interactive I/O on terminals.

V.Rajaraman/IISc, Bangalore

V1/1-6-04/1


Syllabus

Module 10: Object oriented systems modeling (4) What are objects? Why objects? Objects and their properties classes inheritance polymorphism how to identify objects in an application how to model systems using objects some cases of object oriented system modeling Module 11: Control audit and security of information systems (4) Audit and security of information systems why controls are needed objectives of control techniques used in control auditing information systems auditing around, through and with the computer testing information systems types of tests how to generate tests security of information systems disaster recovery business process continuity Module 12: Systems analysis and design in the era of electronic commerce (3) B2B, B2C and C2C e-commerce advantages and disadvantages of e-commerce. Ecommerce system architecture physical networks, logical network, World Wide Web, web-services html, XML. Module 13: Electronic data interchange (2) EDI standards virtual private networks XML and EDI. Module 14: Security of e-commerce transactions, firewalls (3) Encryption methods symmetric and asymmetric encryption digital signature certifying authorities for signatures legal status of e-commerce transactions Module 15: Payment systems in e-commerce (2) Cheque payment, credit card payments, e-cash payments. Module 16: Complete system analysis and design case studies (5) A system for journal acquisition in libraries walk through the entire life cycle


V1/1-6-04/2


Syllabus

Lecture Plan Modules 1. Data and Information Learning Units Types of information: operational, tactical, strategic and statutory Why do we need information systems, management structure, requirements of information at different levels of management Functional allocation of management, requirements of information for various functions Qualities of information small case study Systems Analysis and Design life Cycle: Requirements determination, requirements specifications Hours per topic 0.5 Total Hours

1. 2.

1 3 1

3.

2. Systems Analysis and Design Life Cycle

4. 5.

0.5 1 3 1

3. Information gathering

4. Feasibility analysis

6. Feasibility analysis, final specifications, hardware and software study, system design, system implementation, system evaluation, system modification. 7. Role of systems analyst attributes of a systems analyst tools used in system analysis 8. Information gathering, strategies, methods 9. Case study/documenting study, system requirements specification, from narratives of requirements to classification of requirements as strategic, tactical, operational and statutory. Example case study 10. How to formulate project goals and quantify them 11. Examining alternative solutions and evaluating proposed solutions a) Technical feasibility b) Operational feasibility c) Economic feasibility 12. Cost benefit analysis, Documenting feasibility report 13. Developing Data Flow Diagrams (DFD) a) What are DFDs? b) Symbols used in DFD c) Rules of data flow d) Good style in drawing DFD 14. Describing systems with DFD & Leveling DFD 15. Logical & Physical DFDs

1 1 3 2

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3 1

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5. Tools for systems analysts

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Syllabus

6. Structured systems analysis and design

16. Structured English specification 17. Decision table based specification 18. Detecting 19. Incompleteness 20. Ambiguity 21. Contradictions 22. Redundancy 23. in decision table specification 24. Eliminating redundancy in specifications 25. Decision trees for specification 26. Entity-relationship (E-R) modeling 27. of data elements of an application 28. Organization of data as relations 29. Normalization of relations 30. Creation of logical relational database 31. Objectives of database management system (DBMS) 32. Overview of DBMS 33. Data input methods, coding techniques, requirements of coding schemes 34. Error detection of codes, validating input data 35. Input data controls interactive data input 36. Designing outputs, output devices, designing output reports 37. Screen design, graphical user interfaces, Interactive I/O on terminals. 38. Object oriented systems modeling 39. What are objects? Why objects? 40. Objects and their properties, classes, inheritance, polymorphism 41. How to identify objects in an application, how to model systems using objects 42. Some cases of object oriented system modeling 43. Control, audit and security of information system 44. Why controls are needed, objectives of control, techniques used in control 45. Auditing information systems, auditing around, through and with the computer 46. Testing information systems, types of tests, how to generate tests

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1

4.5

7. Data oriented systems design

1 0.5 1 0.5 1 1 1 0.5 1 1 1 1 1 0.5 0.5 1 1 1 0.5 0.5 1 1 4 4 2 3

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8. Data input methods

9. Designing outputs

10. Object oriented systems modeling

11. Controlaudit and security of information systems


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Syllabus

47. Security of information systems, disaster recovery, business process continuity 12. Systems 48. Systems analysis and design in the era of analysis and electronic commerce design in the era 49. B2B, B2C and C2C e-commerce, advantages of electronic and disadvantages of e-commerce. commerce 50. E-commerce system architecture 51. Physical networks, logical network, world wide web, web-services html, XML 13. Electronic 52. Electronic data interchange, EDI standards data interchange 53. Virtual private networks XML and EDI. 14. Security of e- 54. Security of e-commerce transactions, firewalls, commerce encryption methods, symmetric and transactions, asymmetric encryption, firewalls 55. Digital signature, certifying authorities for signatures, legal status of e-commerce transactions 15. Payment 56. Payment systems in e-commerce, cheque systems in epayment, credit card payments, e-cash commerce payments. 16. Complete 57. Complete system analysis and design case system analysis studies, a system for journal acquisition in and design case libraries, walk through the entire life cycle studies

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V1/1-6-04/5

MODULE 1

INFORMATION FOR MANAGEMENTOBJECTIVE QUESTIONS

There are 4 alternative answers to each question. One of them is correct. Pick the correct answer. Do not guess. A key is given at the end of the module for you to verify your answer

LEARNING UNIT 1

1.1

Information is (a) Data (c) Manipulated input

(b) Processed Data (d) Computer output

1.2

Data by itself is not useful unless (a) It is massive (b) It is processed to obtain information (c) It is collected from diverse sources (d) It is properly stated For taking decisions data must be (a) Very accurate (b) Massive (c) Processed correctly (d) Collected from diverse sources Strategic information is needed for (a) Day to day operations (b) Meet government requirements (c) Long range planning (d) Short range planning

1.3

1.4

1.5 Strategic information is required by (a) Middle managers (b) Line managers (c) Top managers (d) All workers

1.6 Tactical information is needed for (a) Day to day operations (b) Meet government requirements (c) Long range planning (d) Short range planning 1.7 Tactical information is required by (a) Middle managers (b) Line managers (c) Top managers (d) All workers 1.8 Operational information is needed for (a) Day to day operations (b) Meet government requirements (c) Long range planning (d) Short range planning 1.9 Operational information is required by (a) Middle managers (b) Line managers (c) Top managers (d) All workers

1.10 Statutory information is needed for (a) Day to day operations (b) Meet government requirements (c) Long range planning (d) Short range planning 1.11 In motor car manufacturing the following type of information is strategic (a) Decision on introducing a new model (b) Scheduling production (c) Assessing competitor car (d) Computing sales tax collected 1.12 In motor car manufacturing the following type of information is tactical (a) Decision on introducing a new model (b) Scheduling production (c) Assessing competitor car (d) Computing sales tax collected

1.13 In motor car manufacturing the following type of information is operational (a) Decision on introducing a new model (b) Scheduling production (c) Assessing competitor car (d) Computing sales tax collected

1.14 In motor car manufacturing the following type of information is statutory (a) Decision on introducing a new model (b) Scheduling production (c) Assessing competitor car (d) Computing sales tax collected

1.15 In a hospital information system the following type of information is strategic (a) Opening a new childrens ward (b) Data on births and deaths (c) Preparing patients bill (d) Buying an expensive diagnostic system such as CAT scan

1.16 In a hospital information system the following type of information is tactical (a) Opening a new childrens ward (b) Data on births and deaths (c) Preparing patients bill (d) Buying an expensive diagnostic system such as CAT scan

1.17 In a hospital information system the following type of information is operational (a) Opening a new childrens ward (b) Data on births and deaths (c) Preparing patients bill (d) Buying an expensive diagnostic system such as CAT scan

1.18 In a hospital information system the following type of information is statutory (a) Opening a new childrens ward (b) Data on births and deaths (c) Preparing patients bill (d) Buying an expensive diagnostic system such as CAT scan

LEARNING UNIT 21.19 A computer based information system is needed because (i) The size of organization have become large and data is massive (ii) Timely decisions are to be taken based on available data (iii) Computers are available (iv) Difficult to get clerks to process data (a) (ii) and (iii) (c) (i) and (iv) (b) (i) and (ii) (d) (iii) and (iv)

1.20 Volume of strategic information is (a) Condensed (b) Detailed (c) Summarized (d) Irrelevant

1.21 Volume of tactical information is (a) Condensed (b) Detailed (c) Summarized (d) relevant

1.22 Volume of operational information is (a) Condensed (b) Detailed (c) Summarized (d) Irrelevant

1.23 Strategic information is (a) Haphazard (b) Well organized (c) Unstructured (d) Partly structured

1.24 Tactical information is (a) Haphazard (b) Well organized (c) Unstructured (d) Partly structured

1.25 Operational information is (a) Haphazard (b) Well organized (c) Unstructured (d) Partly structured

LEARNING UNIT 31.26 Match and find best pairing for a Human Resource Management System (i)Policies on giving bonus (iv)Strategic information (ii)Absentee reduction (v)Tactical information (iii)Skills inventory (vi)Operational Information (a) (b) (c) (d) (i) and (v) (i) and (iv) (ii) and (iv) (iii) and (v)

1.27 Match and find best pairing for a Production Management System (i) Performance appraisal of machines (iv)Strategic information to decide on replacement (ii)Introducing new production (v)Tactical information technology (iii)Preventive maintenance schedules (vi)Operational information for machines (a) (a)(i) and (vi)

(b) (ii) and (v) (c) (i) and (v) (d) (iii) and (iv) 1.28 Match and find best pairing for a Production Management System (i) Performance appraisal of machines (iv)Strategic information to decide on replacement (ii)Introducing new production (v)Tactical information technology (iii)Preventive maintenance schedules (vi)Operational information for machines (a) (iii) and (vi) (b) (i) and (iv) (c) (ii) and (v) (d) None of the above

1.29 Match and find best pairing for a Materials Management System (i) Developing vendor performance (iv) Strategic information measures (ii) Developing vendors for critical (v) Tactical information items (iii)List of items rejected from a vendor (vi)Operational information (a) (i) and (v) (b) (ii) and (v) (c) (iii) and (iv) (d) (ii) and (vi)

1.30 Match and find best pairing for a Materials Management System (i)Developing vendor performance (iv)Strategic information measures (ii)Developing vendors for critical (v)Tactical information items (iii)List of items rejected from a vendor (vi)Operational information (a) (i) and (iv) (b) (i) and (vi) (c) (ii) and (iv) (d) (iii) and (v)

1.31 Match and find best pairing for a Materials Management System (i)Developing vendor performance (iv)Strategic information measures (ii)Developing vendors for critical (v)Tactical information items (iii)List of items rejected from a vendor (vi)Operational information (a) (i) and (vi) (b) (iii) and (vi) (c) (ii) and (vi) (d) (iii) and (iv)

1.32 Match and find best pairing for a Finance Management System (i)Tax deduction at source report (iv)Strategic information (ii)Impact of taxation on pricing (v)Tactical information (iii)Tax planning (vi)Operational information (a) (i) and (v) (b) (iii) and (vi) (c) (ii) and (v) (d) (ii)) and (iv)

1.33 Match and find best pairing for a Finance Management System (i)Budget status to all managers (iv)Strategic information (ii)Method of financing (v)Tactical information (iii)Variance between budget and (vi)Operational information expenses (a) (i) and (v) (b) (iii) and (vi) (c) (ii) and (v) (d) (ii) and (iv)

1.34 Match and find best pairing for a Marketing Management System (i)Customer preferences surveys (iv)Strategic information (ii)Search for new markets (v)Tactical information (iii)Performance of sales outlets (vi)Operational information (a) (i) and (iv) (b) (ii) and (v) (c) (iii) and (vi) (d) (ii) and (v)

1.35 Match and find best pairing for a Marketing Management System (i)Customer preferences surveys (iv)Strategic information (ii)Search for new markets (v)Tactical information (iii)Performance of sales outlets (vi)Operational information (a) (iii) and (iv) (b) (i) and (vi) (c) (i) and (v) (d) (iii) and (v)

1.36 Match and find best pairing for a Research and Development Management System (i)Technical collaboration decision (iv)Strategic information (ii)Budgeted expenses Vs actuals (v)Tactical information (iii)Proportion of budget to be (vi)Operational information allocated to various projects (a) (i) and (iv) (b) (ii) and (v) (c) (iii) and (vi) (d) (iii) and (iv)

1.37 Match and find best pairing for a Research and Development Management System (i)Technical collaboration decision (iv)Strategic information (ii)Budgeted expenses Vs actuals (v)Tactical information (iii)Proportion of budget to be (vi)Operational information allocated to various projects (a) (i) and (v) (b) (iii) and (v) (c) (ii) and (v) (d) (i) and (vi)

1.38 Organizations are divided into departments because (a) it is convenient to do so (b) each department can be assigned a specific functional responsibility (c) it provides opportunities for promotion (d) it is done by every organization

1.39 Organizations have hierarchical structures because (a) it is convenient to do so (b) it is done by every organization (c) specific responsibilities can be assigned for each level (d) it provides opportunities for promotions

1.40 Which of the following functions is the most unlikely in an insurance company. (a) Training (b) giving loans (c) bill of material (d) accounting

1.41 Which of the following functions is most unlikely in a university (a) admissions (b) accounting (c) conducting examination (d) marketing

1.42 Which of the following functions is most unlikely in a purchase section of an organization. (a) Production planning (b) order processing (c) vendor selection (d) training

1.43 Which is the most unlikely function of a marketing division of an organization. (a) advertising (b) sales analysis (c) order processing (d) customer preference analysis

1.44 Which is the most unlikely function of a finance section of a company. (a) Billing (b) costing (c) budgeting (d) labor deployment

LEARNING UNIT 41.45 Match quality of information and how it is ensured using the following list QUALITY HOW ENSURED (i) Accurate (ii) Complete (iii)Timely (a) (i) and (v) (b) (ii) and (vi) (c) (iii) and (vi) (d) (i) and (iv) (iv) Include all data (v) Use correct input and processing rules (vi) Include all data up to present time

1.46 Match quality of information and how it is ensured using the following list QUALITY HOW ENSURED (i) Accurate (ii) Complete (iii) Timely (a) (ii) and (v) (b) (ii) and (vi) (c) (ii) and (iv) (d) (iii) and (iv) (iv) Include all data (v) Use correct input and processing rules (vi) Include all data up to present time

1.47 Match quality of information and how it is ensured using the following list QUALITY HOW ENSURED (i)Up-to-date (ii) Brief (iii) Significance graphical charts (a) (i) and (v) (b) (ii) and (vi) (c) (iii) and (vi) (d) (i) and (vi) (iv) Include all data to present time (v) Give at right time (vi) Use attractive format and understandable

1.48 Match quality of information and how it is ensured using the following list QUALITY HOW ENSURED (i)Up- to-date (ii)Brief (iii) Significance graphical charts (a) (i) and (iv) (b) (ii) and (v) (c) (iii) and (iv) (d) (ii) and (iv) (iv) Include all data to present time (v) Give at right time (vi) Use attractive format and understandable

1.49 Match quality of information and how it is ensured using the following list QUALITY HOW ENSURED (i)Brief (ii)Relevant (iii) Trustworthy (a) (i) and (iv) (b) (ii) and (v) (c) (iii) and (vi) (d) (i) and (v) (iv) Unpleasant information not hidden (v) Summarize relevant information (vi) Understands user needs

1.50 Match quality of information and how it is ensured using the following list QUALITY HOW ENSURED (i)Brief (iv) Unpleasant information not hidden (ii)Relevant (v) Summarize relevant information (iii)Trustworthy (vi) Understands user needs (a) (ii) and (vi) (b) (i) and (iv) (c) (iii) and (v) (d) (ii) and (iv)

1.51 The quality of information which does not hide any unpleasant information is known as (a) Complete (b) Trustworthy (c) Relevant (d) None of the above

1.52 The quality of information which is based on understanding user needs (a) Complete (b) Trustworthy (c) Relevant (d) None of the above

LEARNING UNIT 51.53 Every record stored in a Master file has a key field because (a) it is the most important field (b) it acts as a unique identification of record (c) it is the key to the database (d) it is a very concise field

1.54 The primary storage medium for storing archival data is (a) floppy disk (b) magnetic disk (c) magnetic tape

(d) CD- ROM

1.55 Master files are normally stored in (a) a hard disk (b) a tape (c) CD ROM (d) computers main memory

1.56

Master file is a file containing (a) all master records (b) all records relevant to the application (c) a collection of data items (d) historical data of relevance to the organization

1.57

Edit program is required to (a) authenticate data entered by an operator (b) format correctly input data (c) detect errors in input data (d) expedite retrieving input data

1.58 Data rejected by edit program are (a) corrected and re- entered (b) removed from processing (c) collected for later use (d) ignored during processing

1.59 Online transaction processing is used because (a) it is efficient (b) disk is used for storing files (c) it can handle random queries. (d) Transactions occur in batches

1.60 On-line transaction processing is used when i) it is required to answer random queries ii) it is required to ensure correct processing

iii) all files are available on-line iv) all files are stored using hard disk a) i ,ii b) i, iii c) ii ,iii, iv d) i , ii ,iii

1.61 Off-line data entry is preferable when i) data should be entered without error ii) the volume of data to be entered is large iii) the volume of data to be entered is small iv) data is to be processed periodically a) i, ii b) ii, iii c) ii, iv d) iii, iv

1.62 Batch processing is used when i) response time should be short ii) data processing is to be carried out at periodic intervals iii) transactions are in batches iv) transactions do not occur periodically a) i ,ii b) i ,iii,iv c) ii ,iii d) i , ii ,iii

1.63 Batch processing is preferred over on-line transaction processing when i) processing efficiency is important ii) the volume of data to be processed is large iii) only periodic processing is needed iv) a large number of queries are to be processed

a) i ,ii b) i, iii c) ii ,iii d) i , ii ,iii 1.64 A management information system is one which (a) is required by all managers of an organization (b) processes data to yield information of value in tactical management (c) provides operational information (d) allows better management of organizations

1.65 Data mining is used to aid in (a) operational management (b) analyzing past decision made by managers

(c) detecting patterns in operational data (d) retrieving archival data

1.66. Data mining requires (a) large quantities of operational data stored over a period of time (b) lots of tactical data (c) several tape drives to store archival data (d) large mainframe computers

1.67 Data mining can not be done if (a) operational data has not been archived (b) earlier management decisions are not available (c) the organization is large (d) all processing had been only batch processing

1.68. Decision support systems are used for (a) management decision making (b) providing tactical information to management (c) providing strategic information to management (d) better operation of an organization

1.69 Decision support systems are used by (a) line managers. (b) top-level managers. (c) middle level managers. (d) system users

1.70. Decision support systems are essential for (a) dayto-day operation of an organization. (b) providing statutory information. (c) top level strategic decision making. (d) ensuring that organizations are profitable.

Key To Objective Questions 1.1 1.7 1.13 1.19 1.25 1.31 1.37 1.43 1.49 1.55 1.61 1.67 a c a b a b b b b b c d 1.2 1.8 1.14 1.20 1.26 1.32 1.38 1.44 1.50 1.56 1.62 1.68 b a d a b c b d a b c c 1.3 1.9 1.15 1.21 1.27 1.33 1.39 1.45 1.51 1.57 1.63 1.69 c b d c c d c a b c d b 1.4 1.10 1.16 1.22 1.28 1.34 1.40 1.46 1.52 1.58 1.64 1.70 c b a b a c c c c a b c 1.5 1.11 1.17 1.23 1.29 1.35 1.41 1.47 1.53 1.59 1.65 c a c c a c d c b c c 1.6 1.12 1.18 1.24 1.30 1.36 1.42 1.48 1.54 1.60 1.66 d c b d c a a a c b a

System Analysis and Design / Data and Information

Motivation

Motivation Large number of jobs today for computer science and engineering graduates is in creating information systems for managing organizations we thus need methods to design complex systems. Students should know what information is and how it is different from data. Should know types of information needed to manage organizations. Should know nature of organizations and their structure to design appropriate information system. Should know management structure and needs of each level of management. Should know functional areas of management information needs for each area.

V. Rajaraman/IISc. Bangalore

//V1/July 04/1

MODULE 1

INFORMATION FOR MANAGEMENT

1.1 Data and Information, types of information : Operational, tactical, strategic, Statutory 1.2 Why do we need information systems, management structure, requirements of information at different levels of management 1.3 Functional allocation of management, requirements of information for various functions. 1.4 Qualities of information 1.5 Varieties of information system

Systems Analysis And Design

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MOTIVATIONLarge number of jobs today for computer science and engineering graduates is in creating information systems for managing organizations Students should know what is information and how it is different from data Should know types of information needed to manage organizationsSystems Analysis And Design

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MOTIVATIONShould know nature of organizations and their structure to design appropriate information system. Should know management structure and needs of each level of management Should know functional areas of management and information needs for each area

Systems Analysis And Design

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LEARNING GOALS 1. Distinction between Data and Information 2. Description of types of Information: Tactical, Operational, Strategic, Statutory. 3. Division of Management into different hierarchical levels. 4. Type of Information needed at different levels of management. 5. Division of organizations into several functional areas and their information requirements 6. Attributes of Information.Systems Analysis And Design

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DATA AND INFORMATION

DATA : Raw Material Data collection costs money Collect only necessary and sufficient data Data is generally used by machines Data is useless unless it is processed to create INFORMATION

1.1.1

System Analysis And Design

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INFORMATION : Processed data Data processed by machines giving information Information is used to run an organization efficiently Information used by managers to initiate actions

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EXAMPLE OF INFORMATION NEEDED BY A SHOPKEEPER Daily sales account List of low stock items to be re-ordered List of overstock items Long overdue payments Profit and loss account Used to streamline day to day operations called Operational information

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EXAMPLE OF INFORMATION NEEDED BY A SHOPKEEPER (CONTD)

Slow or fast moving items Reliable supplier of items Sales trends Used to improve profitability of shop called Tactical information

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Whether to stock different varieties of items Whether to diversify Whether to start a new branch in a different locality Whether to start an e-shop Information to expand business and explore new opportunities Known as Strategic Information

1.1.5


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Income tax account Sales tax account Used to provide information to the government Known as Statutory Information

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TYPES OF INFORMATION

STRATEGIC : Needed for long range planning and directions. This is less structured.

TACTICAL : Needed to take short range decisions to improve profitability and performance.

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TYPES OF INFORMATION OPERATIONAL : Needed for day to day operations of the organization. Eg: Daily Sales, Billing. STATUTORY : Needed by law to sent to government authorities. Eg: Sales tax return.

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MANAGEMENT HIERARCHY AND INFORMATION NEEDSVolume of InformationLow condensed Medium moderately processed

Type of InformationUnstructured Moderately structured Top Managers Middle Managers Line managers

StrategicLong range planning Tactical Short range improvement

Highly Large structured Detailed Reports

Operational Day to day policies

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NEED FOR INFORMATION SYSTEMS Increasing size of organizations thus data volume increases Timely processing for fast action Better competitiveness with better information . Increasing of complexity of organizations require innovative processing Distributed organizations Same data can be processed in different ways1.2.1System Analysis And Design

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MANAGEMENT STRUCTUREChief Executive (Strategical) (Tactical)Production manager Marketing manager Materials manager Finance manager Human Resource manager

(Operational) Line managers

1.2.2


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MANAGEMENT STRUCTURE (CONTD) TOP MANAGEMENT Chief Executive known as CEO Executive Directors for each functional areas such as Production, Finance, HRD etc. Take strategic decisions

1.2.3


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MANAGEMENT STRUCTURE (CONTD) MIDDLE MANAGEMENT General managers, divisional managers,Vice presidents etc Each functional area may have 2 to 3 middle level managers reporting to top management Take Tactical decisions

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MANAGEMENT STRUCTURE (CONTD) LINE MANAGERS Group managers, Assistant Group managers, Assistant managers Each functional area may have several line managers reporting to middle level managers. Take Operational decisions

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MANAGEMENT STRUCTURE (CONTD)

FUNCTIONAL AREAS PRODUCTION MARKETING MATERIALS purchase, stores FINANCE Accounts HUMAN RESOURCE DEVELOPMENT(HRD) RESEARCH AND DEVELOPMENT (R&D)

1.3.1


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MANAGEMENT STRUCTURE (CONTD)

FUNCTIONAL AREAS All organizations need not have identical functional areas However some are common such as - MARKETING - FINANCE - HUMAN RESOURCE DE VELOPMENT(HRD)

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INFORMATION FOR MANAGEMENTProduction Management Strategic Information

Yearly and monthly production quotas and alternate schedules Policies on machine replacement, augmentation, and modernization. Identifying best product mix.

1.3.3


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INFORMATION FOR MANAGEMENTProduction Management Tactical Information

Identifying and controlling areas of high cost. Identifying critical bottlenecks in production. Identifying alternate production schedules based on tools, machines etc. Performance measures of machines to decide replacement.

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INFORMATION FOR MANAGEMENTProduction Management Operational Information

Monitoring up to date production information by examining assemblies, detecting likely shortages and giving early warning. Scheduling better production dynamically. Preventive maintenance schedules. Monitoring tool, machine and personnel availability

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INFORMATION FOR MANAGEMENTMarketing Management Strategic Information

Search for new markets and marketing strategies. Analysis of competitors strategy. Technology and demographic forecasts and product changes.

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INFORMATION FOR MANAGEMENTMarketing Management Tactical Information

Advertising techniques and analysis of their impact. Customer preference surveys. Correlation of prices and sales. Sales force deployment and targets. Exploring alternate marketing channels. Timing of special sales campaigns.

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INFORMATION FOR MANAGEMENTMarketing Management Operational Information

Sales analysis by regions,customer class, sales person. Sales target versus achievement. Market share and trends. Seasonal variations. Effect of model changes. Performance of sales outlets Costs of campaigns and benefit.1.3.8System Analysis And Design

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INFORMATION FOR MANAGEMENTMaterial Management Strategic Information

Developing vendors for critical items. Determining optimal levels of inventory Determining proportion of material needed Reducing varieties of inventory.

1.3.9


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INFORMATION FOR MANAGEMENTMaterial Management Tactical Information

Developing vendor performance measures. Determining optimal reorder levels. Determining issues of items to shops versus standard needs. Controlling high value of inventory. Determining impact on material cost and procurement with design changes and new product introduction.1.3.10System Analysis And Design

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INFORMATION FOR MANAGEMENTMaterial Management Operational Information

List of excess & deficient items received. List of items rejected. Critical items received. Stores in transit and in inspection. Value of inventory in hand. Goods received, rejected and issued.

1.3.11


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INFORMATION FOR MANAGEMENTFinance Management Strategic Information

Methods of financing. Pricing policies. Tax planning.

1.3.12


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INFORMATION FOR MANAGEMENTFinance Management Tactical Information

Variations between budget and expenses. Large outstanding payments/Receipts. Credit and payment status. Cost increases and pricing. Impact of taxation on pricing

1.3.13


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INFORMATION FOR MANAGEMENTFinance Management Operational Information

Periodic financial report. Budget status to all functional managers. Tax returns. Share transfers. Profit and loss account. Payments and receipts. Payroll,provident fund accounts.

1.3.14


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INFORMATION FOR MANAGEMENTHuman Resource Management Strategic Information

Long range human resource requirements. at different levels. Policies on human resource development and training Policies on personnel welfare and facilities

1.3.15


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INFORMATION FOR MANAGEMENTHuman Resource Management Tactical Information

Performance appraisal. Demographic make-up of personnel and its impact on retirement. Production incentives. Morale of personnel. Absentee reduction. Leave and overtime policies. Personnel deployment policies.1.3.16System Analysis And Design

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INFORMATION FOR MANAGEMENTHuman Resource Management Operational Information

Routine assessment. Skills inventory. Loan/advances and recoveries. Leave record.

1.3.17


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INFORMATION FOR MANAGEMENTResearch Design & development Management Strategic Information

Which products are to be developed? What types of improvements are required? What long range research is more promising? What technical collaboration would be appropriate?

1.3.18


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INFORMATION FOR MANAGEMENTResearch Design & development Management Tactical Information

Setting intermediate goals. Checking availability of equipment & appropriate selection Determining proportions of resources to be allocated to different projects. Deployment of personnel to projects. Information on similar and related research projects undertaken by other companies1.3.19System Analysis And Design

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INFORMATION FOR MANAGEMENTResearch Design & development Management Operational Information

Progress against goals. Budgeted expenses versus actual expenses. Status of outstanding orders for equipment and components.

1.3.20


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QUALITIES OF INFORMATION

Quality

How to ensure quality

Accurate

Ensure correct input and processing rules. Include all data. Give at right time

Complete Timely

1.4.1


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QUALITIES OF INFORMATIONQuality How to ensure quality

Trustworthy

Do not hide unpleasant information. Understand user needs. Summarize relevant information.

Relevant Brief

1.4.2


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QUALITIES OF INFORMATION

Quality

How to ensure quality

Up-to-date

Include all data up to present time. Use attractive format & graphical charts.

Significance

1.4.3


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VARIETIES OF INFORMATION SYSTEMS Business Data processing Operational information Management information system Tactical information Decision support system(DSS) strategic information

1.5.1


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Business data processing system

Enter data to be processed Edit, check input data Control check to see if the data is correct and reasonable Store clean data as an organized data base in a storage

1.5.2


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Business data processingThere are 2 methods of business data processing 1. On-line transaction processing(OLTP) 2. Batch processing OLTP is used for query processing and rapid actions to requests Example: Finding balance in ones bank account Booking railway tickets Batch processing used for periodic data processing of massive data Example: Processing university exam results at the end of each semester Payroll computation each month

1.5.3


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Online transaction processing

Database (or master file) available online on disk Request in specified format accepted from requestor Check request for validity Retrieve record from database Take appropriate action

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Batch processingCollect a batch of requests Key in Validate Create request file Called transaction file Update master file using transaction file Create result file Print responses for requests

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OLTP Vs BATCHResponse time Throughput (No of transaction/unit time) Enquiry systems Periodic processing Once a day Once a month OLTP FAST BATCH HIGH ONLINE BATCH STORES ISSUES PAYROLL

1.5.6


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MANAGEMENT INFORMATION SYSTEMAnalyse outputs of routine data processing using statistical or operations research tools Eg: -Observe periodic demands by statistical analysis & use for tactical decisions -Use operations research tools to decide product mix using demand and cost data to maximize profit

1.5.7


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DECISION SUPPORT SYSTEM

Unstructured and difficult to obtain precise information Use of analytical and simulation models Aids to conceptualise through graphs ,animation etc Use of archival data to infer trends and rules Some artificial intelligence tools may be used

1.5.8


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DECISION SUPPORT SYSTEM

Data mining a useful tool What is data mining? Data collected during routine data processing archived over a long period-massive amount(Tera Bytes) Some hypothetical rules guessed by experienced managers and correlated with archival data-called data mining

1.5.9


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DECISION SUPPORT SYSTEMExample of data mining From archival data a rule guessed by managers that in some months there are long waiting lists for sleeper berths is verified-Data mining gives precise quantitative data Action Increase number of sleeper coaches or Introduce special trains Unexpected results of analysis of archival data more valuable for DSS1.5.10System Analysis And Design

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MODULE 1

INFORMATION FOR MANAGEMENTMotivation

Large number of jobs today for computer science and engineering graduates is in creating information systems for managing organizations. Students should know what is information and how it is different from data, should know nature of organizations and their structure to design appropriate information system, should know management structure and needs of each level of management & should know functional areas of management and information needs for each area

LEARNING UNIT 1

Data and Information, types of information : Operational, tactical, strategic, Statutory


DATA is a raw material with which we begin. Collecting data costs money and hence one must collect necessary and sufficient data. Data is generally used by machines and is useless unless it is processed to create INFORMATION. INFORMATION is Processed data, used by managers to initiate actions and to run the organization efficiently. The data processed by machines gives information

TYPES OF INFORMATION

STRATEGIC : Needed for long range planning and directions. This is less structured. TACTICAL : Needed to take short range decisions to improve profitability and performance. OPERATIONAL : Needed for day to day operations of the organization. Eg: Daily Sales, Billing. STATUTORY : Needed by law to sent to government authorities. Eg: Sales tax return.

MANAGEMENT HIERARCHY AND INFORMATION NEEDS

Volume of Information Low condensed Medium moderately processed Large Detailed Reports

Type of Information Unstructured StrategicLong range planning

Top Managers Middle Managers Line managers

Moderately structured Highly structured

Tactical Short range improvement Operational Day to day policies

LEARNING UNIT 2

Why do we need information systems, management structure, requirements of information at different levels of management

NEED FOR INFORMATION SYSTEMS Information systems are needed when timely processing for fast action is needed, same data has to be processed in different ways and when organizations require innovative processing. MANAGEMENT STRUCTURE

Chief Executive (Strategical)

Production manager

Marketing manager

Materials manager

Finance manager

Human Resource manager

Line managers

Functional areas of management are as follows:

PRODUCTION MARKETING MATERIALS purchase, stores FINANCE Accounts HUMAN RESOURCE DEVELOPMENT(HRD) RESEARCH AND DEVELOPMENT (R&D)

INFORMATION FOR MANAGEMENT

A Production ManagementThe following type of information is needed in production management:

Strategic Information: 1)Yearly and monthly production quotas and alternate schedules 2)Policies on machine replacement, augmentation and modernization. 3)Identifying best product mix.

Tactical Information 1)Identifying and controlling areas of high cost. 2) Identifying critical bottlenecks in production. 3) Identifying alternate production schedules based on tools, machines etc. 4) Performance measures of machines to decide replacement.

Operational Information 1)Monitoring up to date production information by examining assemblies, detecting likely shortages and giving early warning. 2) Scheduling better production dynamically. 3) Preventive maintenance schedules. 4) Monitoring tool, machine and personnel availability

B Marketing ManagementStrategic Information: 1) Search for new markets and marketing strategies. 2) Analysis of competitors strategy 3) Technology and demographic forecasts and product changes Tactical Information: 1)Advertising techniques and analysis of their impact. 2)Customer preference surveys. 3)Correlation of prices and sales. 4)Sales force deployment and targets. 5)Exploring alternate marketing channels. 6)Timing of special sales campaigns.

Operational Information: 1) Sales analysis by regions, customer class, sales person. 2) Sales target versus achievement. 3) Market share and trends. 4) Seasonal variations. 5) Effect of model changes. 6) Performance of sales outlets 7) Costs of campaigns and benefit.

C Material ManagementStrategic Information: 1) Developing vendors for critical items 2) Determining optimal levels of inventory 3) Determining proportion of material needed 4) Reducing varieties of inventory

Tactical Information: 1) Developing vendor performance measures. 2) Determining optimal reorder levels. 3) Determining issues of items to shops versus 4) standard needs. 5) Controlling high value of inventory. 6) Determining impact on material cost and 7) procurement with design changes and new 8) product introduction.

Operational Information: 1) List of excess & deficient items received. 2) List of items rejected. 3) Critical items received. 4) Stores in transit and in inspection. 5) Value of inventory in hand. 6) Goods received, rejected and issued.

D Finance Management

Strategic Information: 1) Methods of financing. 2) Pricing policies 3) Tax planning. Tactical Information: 1) Variations between budget and expenses. 2) Large outstanding payments/Receipts. 3) Credit and payment status. 4) Cost increases and pricing. 5) Impact of taxation on pricing

Operational Information: 1) Periodic financial report. 2) Budget status to all functional managers. 3) Tax returns. 4) Share transfers. 5) Profit and loss account. 6) Payments and receipts. 7) Payroll,provident fund accounts.

E Human Resource ManagementStrategic Information:

1) Long range human resource requirements at different levels. 2) Policies on human resource development and training 3) Policies on personnel welfare and facilities Tactical Information: 1) Performance appraisal. 2) Demographic make-up of personnel and its impact on retirement. 3) Production incentives. 4) Morale of personnel. 5) Absentee reduction. 6) Leave and overtime policies. 7) Personnel deployment policies.

Operational Information: 1) Routine assessment. 2) Skills inventory. 3) Loan/advances and recoveries. 4) Leave record.


Multiple Choice Questions

1.1

Information is a. Data

b. Processed Data c. Manipulated input

d. Computer output 1.2 Data by itself is not useful unless a. It is massive b. It is processed to obtain information c. It is collected from diverse sources d. It is properly stated 1.3 a b c d 1.4 a b c d 1.5 a b c d 1.6 a b c d For taking decisions data must be Very accurate Massive Processed correctly Collected from diverse sources Strategic information is needed for Day to day operations Meet government requirements Long range planning Short range planning Strategic information is required by Middle managers Line managers Top managers All workers Tactical information is needed for Day to day operations Meet government requirements Long range planning Short range planning

1.7 Tactical information is required by


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a b c d 1.8

Middle managers Line managers Top managers All workers Operational information is needed for a b c d Day to day operations Meet government requirements Long range planning Short range planning

1.9

Operational information is required by a b c d Middle managers Line managers Top managers All workers

1.10

Statutory information is needed for a b c d Day to day operations Meet government requirements Long range planning Short range planning

1.11

In motor car manufacturing the following type of information is strategic a b c d Decision on introducing a new model Scheduling production Assessing competitor car Computing sales tax collected

1.12

In motor car manufacturing the following type of information is tactical a Decision on introducing a new model b Scheduling production c Assessing competitor car d Computing sales tax collected

1.13

In motor car manufacturing the following type of information is operational


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a Decision on introducing a new model b Scheduling production c d 1.14 Assessing competitor car Computing sales tax collected

In motor car manufacturing the following type of information is statutory a Decision on introducing a new model b Scheduling production c Assessing competitor car d Computing sales tax collected

1.15

In a hospital information system the following type of information is strategic a Opening a new childrens ward b Data on births and deaths c Preparing patients bill d Buying an expensive diagnostic system such as CAT scan

1.16

In a hospital information system the following type of information is tactical a Opening a new childrens ward b Data on births and deaths

c Preparing patients bill d 1.17 Buying an expensive diagnostic system such as CAT scan

In a hospital information system the following type of information is operational a Opening a new childrens ward b Data on births and deaths c Preparing patients bill d Buying an expensive diagnostic system such as CAT scan

1.18

In a hospital information system the following type of information is statutory a Opening a new childrens ward b Data on births and deaths c Preparing patients bill d Buying an expensive diagnostic system such as CAT scan


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1.19

A computer based information system is needed because (i) The size of organization have become large and data is massive (ii) Timely decisions are to be taken based on available data (iii) Computers are available (iv) Difficult to get clerks to process data a (ii) and (iii) b (i) and (ii) c (i) and (iv) d (iii) and (iv)

1.20

Volume of strategic information is a Condensed b Detailed c Summarized d Irrelevant

1.21

Volume of tactical information is a Condensed

b Detailed c Summarized d relevant 1.22 Volume of operational information is a Condensed b Detailed c Summarized d Irrelevant 1.23 Strategic information is a Haphazard b Well organized c Unstructured d 1.24 Partly structured

Tactical information is a Haphazard


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b Well organized c Unstructured d Partly structured 1.25 Operational information is a Haphazard b Well organized c Unstructured d Partly structured 1.26 Match and find best pairing for a Human Resource Management System (i)Policies on giving bonus (ii)Absentee reduction (iii)Skills inventory a (i) and (v) b (i) and (iv) c (ii) and (iv) d (iii) and (v) 1.27 Match and find best pairing for a Production Management System (i) Performance appraisal of machines (iv)Strategic information to decide on replacement (ii)Introducing new production (iii)Preventive maintenance schedules (v)Tactical information technology (vi)Operational information for machines a (i) and (vi) b (ii) and (v) c (i) and (v) d (iii) and (iv) 1.28 Match and find best pairing for a Production Management System (i) Performance appraisal of machines (iv)Strategic information to decide on replacement (ii)Introducing new production (v)Tactical information technology (iv)Strategic information (v)Tactical information (vi)Operational Information


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(iii)Preventive maintenance schedules

(vi)Operational information for machines

a b c

(iii) and (vi) (i) and (iv) (ii) and (v)

d None of the above 1.29 Match and find best pairing for a Materials Management System (i) Developing vendor performance (iv) Strategic information measures (ii) Developing vendors for critical (iii)List of items rejected from a vendor a (i) and (v) b (ii) and (v) c (iii) and (iv) d (ii) and (vi) 1.30 Match and find best pairing for a Materials Management System (i)Developing vendor performance (ii)Developing vendors for critical (iii)List of items rejected from a vendor a (i) and (iv) b (i) and (vi) c (ii) and (iv) d (iii) and (v) 1.31 Match and find best pairing for a Materials Management System (i)Developing vendor performance (ii)Developing vendors for critical (iii)List of items rejected from a vendor a (i) and (vi) b (iii) and (vi) c (ii) and (vi) d (iii) and (iv) (iv)Strategic information measures (v)Tactical information items (vi)Operational information (iv)Strategic information measures (v)Tactical information items (vi)Operational information (v) Tactical information items (vi)Operational information


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1.32

Match and find best pairing for a Finance Management System (i)Tax deduction at source report (ii)Impact of taxation on pricing (iii)Tax planning a (i) and (v) b (iii) and (vi) c (ii) and (v) d (ii)) and (iv) (iv)Strategic information (v)Tactical information (vi)Operational information

1.33

Match and find best pairing for a Finance Management System (i)Budget status to all managers (ii)Method of financing (iv)Strategic information (v)Tactical information

(iii)Variance between budget and (vi)Operational information expenses a (i) and (v) b (iii) and (vi) c (ii) and (v) d (ii) and (iv) 1.34 Match and find best pairing for a Marketing Management System (i)Customer preferences surveys (ii)Search for new markets (iii)Performance of sales outlets a b (i) and (iv) (ii) and (v) (iv)Strategic information (v)Tactical information (vi)Operational information

c (iii) and (vi) d 1.35 (ii) and (v)

Match and find best pairing for a Marketing Management System (i)Customer preferences surveys (ii)Search for new markets (iii)Performance of sales outlets a (iii) and (iv) b (i) and (vi) c (i) and (v) (iv)Strategic information (v)Tactical information (vi)Operational information


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d (iii) and (v) 1.36 Match and find best pairing for a Research and Development Management System (i)Technical collaboration decision (ii)Budgeted expenses Vs actuals (iii)Proportion of budget to be (iv)Strategic information (v)Tactical information (vi)Operational information allocated to various projects a (i) and (iv) b (ii) and (v) c (iii) and (vi) d (iii) and (iv) 1.37 Match and find best pairing for a Research and Development Management

System (i)Technical collaboration decision (ii)Budgeted expenses Vs actuals (iii)Proportion of budget to be various projects a (i) and (v) (iv)Strategic information (v)Tactical information (vi)Operational information allocated to

b (iii) and (v) c (ii) and (v) d (i) and (vi) 1.38 Organizations are divided into departments because a it is convenient to do so b each department can be assigned a specific functional responsibility c it provides opportunities for promotion d it is done by every organization 1.39 Organizations have hierarchical structures because a it is convenient to do so b it is done by every organization c specific responsibilities can be assigned for each level d it provides opportunities for promotions


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1.40

Which of the following functions is the most unlikely in an insurance company. a Training b giving loans c bill of material d accounting

1.41

Which of the following functions is most unlikely in a university a admissions b accounting c conducting examination d marketing

1.42

Which of the following functions is most unlikely in a purchase section of an organization. a Production planning b order processing c vendor selection d training

1.43

Which is the most unlikely function of a marketing division of an organization. a advertising b sales analysis c order processing d customer preference analysis

1.44

Which is the most unlikely function of a finance section of a company. a Billing b costing c budgeting d labor deployment

1.45

Match quality of information and how it is ensured using the following list QUALITY (i) Accurate HOW ENSURED (iv) Include all data


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(ii) Complete (iii)Timely a (i) and (v) b (ii) and (vi) c (iii) and (vi) d (i) and (iv) 1.46

(v) Use correct input and processing rules (vi) Include all data up to present time

Match quality of information and how it is ensured using the following list QUALITY (i) Accurate (ii) Complete (iii) Timely a (ii) and (v) b (ii) and (vi) c (ii) and (iv) d (iii) and (iv) HOW ENSURED (iv) Include all data (v) Use correct input and processing rules (vi) Include all data up to present time

1.47

Match quality of information and how it is ensured using the following list QUALITY (i) Up-to-date (ii) Brief (iii) Significance HOW ENSURED (iv) Include all data to present time (v) Give at right time (vi) Use attractive format and understandable graphical charts a (i) and (v) b (ii) and (vi) c (iii) and (vi) d (i) and (vi)

1.48

Match quality of information and how it is ensured using the following list QUALITY (i)Up- to-date (ii)Brief HOW ENSURED (iv) Include all data to present time (v) Give at right time


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(iii) Significance

(vi) Use attractive format and understandable graphical charts

a (i) and (iv) b (ii) and (v) c (iii) and (iv) d (ii) and (iv) 1.49 Match quality of information and how it is ensured using the following list QUALITY (i)Brief (ii)Relevant (iii) Trustworthy a (i) and (iv) b (ii) and (v) c (iii) and (vi) d (i) and (v) 1.50 Match quality of information and how it is ensured using the following list QUALITY (i)Brief (ii)Relevant (iii)Trustworthy a (ii) and (vi) b (i) and (iv) c (iii) and (v) d (ii) and (iv) 1.51 The quality of information which does not hide any unpleasant information is known as a Complete b Trustworthy c Relevant d None of the above 1.52 The quality of information which is based on understanding user needs HOW ENSURED (iv) Unpleasant information not hidden (v) Summarize relevant information (vi) Understands user needs HOW ENSURED (iv) Unpleasant information not hidden (v) Summarize relevant information (vi) Understands user needs


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a Complete b Trustworthy c Relevant d None of the above 1.53 Every record stored in a Master file has a key field because a it is the most important field b it acts as a unique identification of record c it is the key to the database d it is a very concise field 1.54 The primary storage medium for storing archival data is a floppy disk b magnetic disk c magnetic tape d CD- ROM 1.55 Master files are normally stored in a a hard disk b a tape c CD ROM d computers main memory 1.56 Master file is a file containing a all master records b all records relevant to the application c a collection of data items d historical data of relevance to the organization 1.57 Edit program is required to a authenticate data entered by an operator b format correctly input data c detect errors in input data d expedite retrieving input data 1.58 Data rejected by edit program are a corrected and re- entered


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b removed from processing c collected for later use d ignored during processing 1.59 Online transaction processing is used because a it is efficient b disk is used for storing files c it can handle random queries. d Transactions occur in batches 1.60 On-line transaction processing is used when i) it is required to answer random queries ii) it is required to ensure correct processing iii) all files are available on-line iv) all files are stored using hard disk a i ,ii b i, iii c ii ,iii, iv d i , ii ,iii 1.61 Off-line data entry is preferable when i) data should be entered without error ii) the volume of data to be entered is large iii) the volume of data to be entered is small iv) data is to be processed periodically a i, ii b ii, iii c ii, iv d iii, iv 1.62 Batch processing is used when i) response time should be short ii) data processing is to be carried out at periodic intervals iii) transactions are in batches iv) transactions do not occur periodically


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a i ,ii b i ,iii,iv c ii ,iii d i , ii ,iii 1.63 Batch processing is preferred over on-line transaction processing when i) processing efficiency is important ii) the volume of data to be processed is large iii) only periodic processing is needed iv) a large number of queries are to be processed a i ,ii b i, iii c ii ,iii d i , ii ,iii 1.64 A management information system is one which a is required by all managers of an organization b processes data to yield information of value in tactical management c provides operational information d allows better management of organizations 1.65 Data mining is used to aid in a operational management b analyzing past decision made by managers c detecting patterns in operational data d retrieving archival data 1.66 Data mining requires a large quantities of operational data stored over a period of time b lots of tactical data c several tape drives to store archival data d large mainframe computers 1.67 Data mining can not be done if a operational data has not been archived b earlier management decisions are not available


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c the organization is large d all processing had been only batch processing 1.68 Decision support systems are used for a Management decision making b Providing tactical information to management c Providing strategic information to management d Better operation of an organization 1.69 Decision support systems are used by a Line managers. b Top-level managers. c Middle level managers. d System users 1.70 Decision support systems are essential for a Dayto-day operation of an organization. b Providing statutory information. c Top level strategic decision making. d Ensuring that organizations are profitable.


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Key to Objective Questions

1.1

b

1.2

b

1.3

c

1.4

c

1.5

c

1.6

d

1.7

a

1.8

a

1.9

b

1.10

b

1.11

a

1.12

c

1.13

b

1.14

d

1.15

d

1.16

a

1.17

c

1.18

b

1.19

b

1.20

a

1.21

c

1.22

b

1.23

c

1.24

d

1.25

b

1.26

b

1.27

c

1.28

a

1.29

a

1.30

c

1.31

b

1.32

c

1.33

d

1.34

c

1.35

c

1.36

a

1.37

b

1.38

b

1.39

c

1.40

c

1.41

d

1.42

a

1.43

c

1.44

d

1.45

a

1.46

c

1.47

c

1.48

a

1.49

d

1.50

a

1.51

b

1.52

c

1.53

b

1.54

c

1.55

a

1.56

b

1.57

c

1.58

a

1.59

c

1.60

b

1.61

c

1.62

c

1.63

d

1.64

b

1.65

c

1.66

a

1.67

a

1.68

c

1.69

b

1.70

c


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MODULE 1

INFORMATION FOR MANAGEMENTWORKED EXAMPLES1.1) If an information system were to be designed for a hospital, what would be the strategic and tactical information? Strategic information in hospital 1.Cost-benefit of a new expensive diagnostic instrument. (Such as CAT scanner). 2. Long-term forecasts for opening a ward for old age patients. 3.Technical developments in routine diagnostic instruments and decision to upgrade existing instruments. Tactical information in hospital 1.Optimum replacement periods and use of expensive instruments. 2.Optimum level of drugs to be stocked keeping in view expiry dates of drugs. 3.Operation theatre utilization data for improved performance

1.2)

For a hospital information system what would be the Operational information required? 1. 2. 3. 4. List of patients discharged, admitted in every department. Occupancy of beds and schedules for admission of patients. Absenteeism data of nurses and technicians. Operation theatre allotment and schedules.

1.3)

What is statutory information? What statutory information is expected from a hospital? Information and reports that are required by law to be sent to the government authority is called statutory information. Statutory Information for Hospital 1. Birth and death records. 2. Infectious diseases record. 3. Profit and loss account.

1.4)

What type of Statutory information is to be provided by a small-scale industry? Any information required by law to be sent to government authorities such as: 1. Income Tax returns 2. Sales tax returns 3. Excise duty 4. Employee state Insurance

1.5)

Is up-to-date information always timely? If not, give an example of up-todate but not timely information? No, it is not necessary that up-to-date information is always timely. For example giving the correct information about the casualties and the damage caused due to earthquake after a week. Another example is delivering a newspaper dated 16 June with information Up-to-date a week late.

Module 1: Data and Information 1.1 Distinguish between data and information. Give two examples of data and information obtained by processing data. 1.2 1.3 Give two examples of non-arithmetic data processing. What is the main difference between strategic and tactical information? If an information system is to be designed for a hospital, what would be the strategic and tactical information? 1.4 What is operational information? In what way is it different from strategic information? For hospital information system what would be the operational information required? 1.5 What is statutory information? What statutory information is expected from a hospital? 1.6 1.7 What type of statutory information is to be provided by a small scale industry? What would you think are the strategic, tactical and operational information needed by an Electric Power Generation Corporation? 1.8 What would be the strategic, tactical and operational information needs of a State Road Transport Corporation? 1.9 1.10 1.11 What do you think are the functional management areas in a large University? What do you think are the functional management areas in a large student hostel? What would be the strategic, tactical and operational management responsibility assignments in a large hostel? What type of information would be needed for managing the kitchen of the hostel? 1.12 1.13 Give an example of incomplete information. What is the difference between accuracy and trustworthiness of information?

1.14

Is uptodate information always timely? If not, give an example of uptodate but not timely information.

1.15 1.16 1.17 1.18

Does an attractive format of a report necessarily imply that it is relevant? Why are organizations divided into departments and sections? What are the primary functions of a marketing department of an organization? In what ways do different departments in an organization interact? Give an example.

1.19 1.20 1.21

Enumerate some functions which are common among many organizations. Enumerate some functions which are common between a hostel and a hospital. Explain how data will be processed to meet the functional requirements of a purchase department.

1.22

Explain how data will be processed in a bank when a cheque is presented by a customer and payment made to him (assume that the bank uses computers).

1.23 1.24

Why is editing important in data entry? What is the difference between on-line transaction processing and batch processing?

1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32

When is batch processing preferred? What is the basic difference between business data processing systems and MIS? What type of information is provided by MIS? What is the difference between MIS and DSS? What will an MIS provide in a marketing function? What will a DSS provide in a marketing function? What do you understand by archival data? How can archival data be used? What is data mining? Give an example of data mining.

System Analysis and Design/Information for Management

Case Study

INFORMATION PROCESSING FOR A STORE - AN OVERVIEW A Small Case Example In what follows we will present a broad overview of how data is processed to meet the functional requirements of a store. The presentation below will be an overview. The important functions of a store are: to keep an up to date ledger containing stock positions, cater to requisitions for issue of items from the store, initiate reorder of items whose stock is below a specified limit, update stock register when items are received, and answer enquiries regarding availability of items in stores.

In a computer based system the stock ledger is organized in a suitable form for easy updating and retrieval and recorded on a magnetic disk. Magnetic disk storage is the primary storage medium for storing large data bases. This is due to the fact that any record can be directly accessed. Magnetic tapes are used primarily as a back-up storage unit for keeping copies of data on disk. Tapes are also useful for storing old files and for interchanging files between different computers.

In order to create a stock ledger for a computer-based system it is necessary to first assign unique codes for each item in the store. The unique code assigned to each item is known as the key of the item record and identifies the record. After that it is necessary to find out what data fields are needed for each item in the stock. The fields are determined by working backwards, that is, first asking what outputs are needed and based on that

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determining the data needed. The fields are organized as a record and stored in a data base. This data base is the primary or master file for the store. (It is the computer readable version of a stock ledger used in a store). Once the record format for each item in the store is determined, one record is created for each item in the store. These records are entered manually by a data entry operator who enters the records using a keyboard of a terminal connected to the computer. This is called on-line data entry. Data may also be entered on a separate computer such as Personal Computer (PC) and stored on a floppy disk. This is called off-line data entry.

In off-line data entry the data entry machine is a low cost machine. If the volume of data to be entered is very large, then a number of machines can be used and data prepared, checked and corrected. As opposed to this, an on-line data entry method uses terminals connected to the computer. In such a case the computer should be timeshared. On-line data entry is appropriate for inserting, deleting or correcting some records in fields.

The data on floppy disk can then be transferred to the disk connected to the computer. Off-line entry is used when the data base is very large and the computer used is a server or a mainframe computer. If the data base is small, the PC itself may be used for data entry and for data processing.

Before data is stored in the disk-file it must be ensured that any errors made during data entry is detected and corrected. This is done by a program called an edit program and a

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control total checking program. Such programs are essential to ensure the validity of data in a master file.

A procedure similar to the one used to create the master file is also used to keep the data in the master file up-to-date when new items are received or new stock of items already in the ledger are received. Table 1 summarizes the operations performed for other functions. The format of a record for entering requests uses the same item codes assigned in creating the master file. Other fields are determined based on what outputs are needed. In this case a reasonable format for requests is: (item code, item name, quantity requested) Table 1 Operations Performed in Stores Information Processing 1. Create stock ledger Codify items Determine data fields needed for each item Create a record for each item Organize the records as a data base Issues/Reorder Codify items Determine data fields required in each request Determine data fields required for each issue Create record format for requests and issues Create record format for reorder Receipts Codify items Determine data fields required in each receipt Create record format for receipts Enquiry Codify items Record format for enquiry Record format for response

2.

3.

4.

The record format for a reorder request would be: item code, item name)

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( The quantity to be reordered is normally stored in the file maintained by the Purchase department) The record format for issues would be : (item code, item name, quantity requested, quantity issued) The request record is entered through a keyboard by a requester. It is checked for validity by a program. A valid request is forwarded to a retrieval program which

retrieves the data on the requested item from the Master file on disk. The item code in the request is used as the key for retrieval. If the requested number of items is available, then an issue slip is printed; otherwise a reorder request is printed. Care must, however, be taken to ensure that once a reorder is requested it is not requested again till the item reordered is taken into stock. Each request slip processed by the computer is called a

transaction. If each request is processed as and when it arrives and the terminal on which the request is entered is connected to the computer, then the processing method is called On-Line Transaction Processing (OLTP). There is another method of processing requests. A number of requests arriving during a day (for example) are collected and formed into a batch. The data in such a batch can be keyed-in off-line and a floppy disk created. This floppy disk can then be used to enter requests on the computer which has the Master file. The entire batch is processed and outputs are printed. This mode of processing is called batch processing. Batch

processing is usually more efficient. It, however, is not as timely as on-line processing. In operations such as payroll processing which is done periodically, batch processing is more appropriate.

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Enquiry system is normally an on-line transaction processing system as it is the most natural way of answering users' queries. In an enquiry system also, a user's query is first checked for validity of item code, etc. before it is processed. A variety of information systems used in practice are primarily on-line transaction processing systems. Common examples are airlines and railway ticket reservation

systems. Designing such systems require special care to ensure that response to enquiries are fast and that the system has a hot standby if there is a failure. High reliability is required as failures can be catastrophic (imagine many persons getting the same berth reserved on a train). Similarly reliability and availability is essential in on-line banking systems.

MIS and DSS for Stores The processing methods presented in the last para are for routine data processing. The information they provide is operational information. The system required to obtain tactical information require further processing. Such systems are known as Management Information Systems (MIS). In the stores processing case study, some tactical decisions would be: at what stock level should reorder be initiated? How much should be

reordered? These are determined based on data such as rate of issue of each item, time needed for delivery from date of order, transport cost, storage cost, shelf life, and loss incurred if an item is out-of-stock. These data have to be collected separately over a period of time, often as a byproduct of a routine data processing system. In the stores case daily issues of some critical items can be abstracted and the average issue can be computed. Data on delivery times, transport cost etc. can be separately collected. Well

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known methods of operations research can then be used to compute stock level for initiating reorder and the optimal quantity to be reordered. Operational data collected over a period of time is called data archives and the process of collecting it is called data archiving. With the availability of massive disks in which terabytes (1012 bytes) of data can be stored, it has become feasible to analyse the archived data. Analyzing archived data to observe patterns which assist in management decision making is called data mining. A stores manager may, based on his experience, think that in the months of October, December and April the sale of sugar is very high compared to other months. This conjecture maybe verified by data mining. In data mining a rule is formulated which may say that in October sugar sale is 1.5 times the average, in December it is 1.3 times normal and in April it is 1.4 times normal. This rule may be verified within a specified margin of error by examing the data archive. If the rule turns out to be correct, a manager will be able to decide how much sugar is to be stocked in these months. This is a simple example of the use of archival data and data mining to assist in tactical management. As another example of tactical information requirement, let us consider the question of fixing credit limits for customers. In order to arrive at this, the following inputs would be useful: Customer details such as income, occupation etc. Customer payment history Volume of purchase by customer Outstanding dues (if any) from the customer.

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Using these one may formulate some rules to arrive at the credit limits and also predict their possible effect such as: anticipated effect on sales caused by varying credit limits anticipated loss/profit due to credit limits.

By analyzing the impact of credit limits as specified above, a decision may be arrived at to fix credit limits. The primary point to note is that one has to formulate a model and sometimes simulate a system to obtain tactical information. The operational information from routine

processing becomes an input to obtain tactical information. Strategic information is obtained through what are known as Decision Support Systems (DSS). In the stores example a strategic decision would be to reduce variety in inventory by discontinuing some items in store, deciding what new items to introduce in the store, and when to open a new branch. Decisions such as these require provisions for a variety of data transformations and representations. Strategic information is often unstructured. Strategic decisions are made after trying to answer questions such as "What will be the profit if I take a decision and what will be the long range loss if I don't take it?". In a complex decision many parameters will be involved. Identifying these and predicting their impact on a decision needs judgements coupled with analysis. For example, taking a strategic decision of whether to open a new branch or not would require the following information: Projected demands in the new branch Impact on current branch Pricing in new branch

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Competition in new location Profitability of new branch

These have to be provided using analytical and simulation model known as decision support models. These models are more difficult to evolve than those needed in tactical information development. Decision support systems should also provide aids to the manager for conceptualization such as charts, graphs, etc. They should also provide facilities to ask a variety of queries on the data base. A variety of summary reports should be made available on request. The overall purpose of decision support systems is to aid in strategic, unstructured decision making. Developing such systems is much more difficult than developing operational systems. They, however, are the ones

required by the top management of organizations.

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MODULE 1 REFERENCE BOOKS 1. Most of the material in this chapter has been taken from the book Analysis and Design of Information Systems and the accompanying Self-Study guide written by V.Rajaraman and published by Prentice Hall of India, new Delhi (2002) (Permission of publisher taken). 2. The following books have a good treatment of Information Systems: (i) Systems Analysis and Design, by K.E.Kendall and J.E.Kendall, Pearson Education (Asia) India reprint 2003 Chapter 1 pp.1 to 4 and Chapter 2 pp. 29 to 45 deal with the topic of understanding organizations. The examples are more relevant to U.S.A. rather than our country. (ii) Modern System Analysis and Design, by J.A.Hoffer, George J.F. and Valacich J.S., Pearson Education (Asia) Indian Reprint 2002. pp.15-17 have a very short treatment of what we give in Module1 (iii)Information Systems Today by LiJessup and J.Valacich, Prentice Hall of India, 2003. Chapter 6, pp.168 to 198 deal with organizational structure. (iv) Management Information Systems (The Managers View), by R.Schultheis and M.Sumners, Tata McGraw Hill, 1999. Part III pp.356 to 457 have a very detailed discussion of operational, tactical and strategic management and appropriate information systems. (v) Management Information Systems, by K.E.Laudon and J.P.Laudon, Pearson Education Asia, Indian Reprint 2004. Chapter 2, pp. 36 to 71 cover the topics discussed in Module in great detail.

SUMMARY OF MODULE 1

1.

Data and information are not synonymous. Information is processed data. Data may be processed by performing arithmetic operations on them. Data may also be processed by reorganizing them by applying appropriate rules such as sorting, merging, selection, matching, filtering etc.

2.

Information requirements for managing organizations may be classified as strategic, tactical and operational.

3.

Strategic information is needed for long range planning. It is less structured and difficult to obtain by processing raw data.

4.

Tactical information is used to take short range decisions and for better control of the functioning of the organization. It requires complex and ingenious processing of data.

5.

Operational information is used for day-to-day management of organizations. It is obtained by simple processing of data, it is well structured, and more voluminous.

6. 7.

Statutory information consists of reports to be sent to government by law. Management of organizations is divided functionally. Depending on the size of the organization, each function maybe delegated to different managers.

8.

Large organizations would have a hierarchical management structure with top level managers, middle level managers and line managers.

9.

Top level managers are expected to make policies and need strategic information. Middle level mangers direct and control the functioning of organization to achieve optimal performance and need tactical information. Line managers supervise day-

to-day operations and steer operations to meet targets set by middle level managers. They need operational information. 10. The primary functional areas of many organizations are: Human Resource Development, Production, Materials, Finance, Marketing and Research, Design and Development. Organizations are divided into many departments, each with a specific set of 11. functions. 12. Even though an organization may have some specialized functions, many functions such as Accounts, Human resource development, Stores, Purchase are common among organizations. 13. Each function in an organization needs operational, tactical and strategic information. 14. The information given to managers must be accurate, complete and trustworthy. It must also be uptodate and timely. It must be relevant, brief, attractively presented and its significance understandable. 15. 16. 17. Operational data is codified and stored in a M

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System Analysis and Design