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Model Based Management Systems (Mbms)-Updated

Model Based Management Systems (Mbms)-Updated

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Published by: Anugragha Sundar on Sep 28, 2013
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MODEL BASED MANAGEMENT SYSTEMS (MBMS

)

Dr.Srinivasa Rao Gangadharan

Some Questions? • What is Model Base Management system? • Why do we need Model Based Managed System? • What is a spreadsheet? • What are its major components? • What are the main tools/techniques in managerial decision support? • What are the major spreadsheet? business applications of .

• An abstraction of reality. .What is MBMS? • An Activity of managing & making decision regarding the future direction of a business. • Represent current state of the business and the environment in which it operates.

• Establishing relationship between Variables with some assumptions for the future forecast. • Ex. . • Widespread in budgeting and financial planning and not in decision making of other aspects of business..Price X Qty = Revenue • Excel is a tool used to establish the relationship.What is MBMS? – contd.

. • Reflect different viewpoints of the same situation. • Anticipate outcomes of proposed changes to a business. • Help identify bottlenecks or issues with a business process that would otherwise go unnoticed.Significant benefits of MBMS • Mitigates the risk of making decisions based an inaccurate understanding of the business.

• Increase the consistency & clarity of the communication of business change or solution. or service. system. This allows executives and manager to determine its true ROI. . by understanding the larger end-to-end process that it supports and the revenue produced by that process.• Ensure completeness of a solution to be implemented. • Provides a means of tracking the specific value of a business activity.

An hierarchy model of evaluating information KB Executive Information System (EIS) High levels of filtered information Decision Support System (DSS) Management Information System (MIS) Transaction Processing System (TPS) Robust Transaction Processing System Which the Bedrock .

Artificial intelligence. the rules are codified – Example – online credit appraisal • DSS – Human being involved . • Real Time Information system – Example – Human body – when we fall sick it is the feed back we are getting that the body is not in the condition • Corrective action must be taken instantaneously system (DMS) and DSS • DMS – No Human intervention Expert System. • TPS captures all the data and arrange it in the database • Continuously Updated and Stored MBMS • Empower managers with powerful model. • Distinction between Decision Making • If the data is not properly organised the quality of information is lost.DSS DBMS • First Component of DSS.

• Forecasting .Tasks of MBMS • Sensitivity Analysis – (What if) – Few Variables are involved • Scenario Analysis – more variables • Simulation – very large trials of many variables • Optimisation – Best Possible alternatives – Excellent Management Science – When multiple constraints are involved Optimisation is the best and most popular one in the world.

WHAT IS A SPREAD SHEET? • A HIGHLY INTERACTIVE COMPUTER PROGRAM. • IT CONSISTS OF ROWS AND COLUMNS THAT ARE DISPLAYED ON-SCREEN IN A SCROLLABLE WINDOW • CAN BE SAVED FOR LATER USE OR DISCARDED .

WHAT IS EXCEL? • A Software product that fall into the general category of spread sheet. • Currently the best selling windows spread sheet around the World . Others – Lotus 123 & QATTRO PRO. • Developed by a computer science student in a 64 X 64 – Rows and Columns to solve budget problem involving “ What if ” Conditionality.

What Excel does for the Managers? • Simplifies Manager’s task • Capability to replicate formulas Excel Basic Features Menu Functions • Arithmetical • Statistical • Financial • Special • User Defined • Sum • Copy • Cell Locking • Edit .

Some points on the Social Forestry Exercise • Edit – F2 Key • Average and Standard Deviation – Without Standard deviation Average has no meaning – Standard deviation measures the deviation from the average – STD is a measure of risk – Coefficient of Variation – Standard Deviation/ Average – Higher the CV Higher the volatility – which stock is volatile – wherever CV is higher • Maximum and Minimum – equivalent of this is Open High Low Close .

Cell is linked to the TPS – Dbase and MBMS work to gethor • If condition is the first special function.Impact & Variance Analysis • (Budget – Actual)/Budget < 0 – This happens on a real time basis. • Equivalent of this is the rate at which I bought the share compared with the current market prices to show whether I had incurred Profit or Loss. • Use of ABS – Use it whether the result shows +ve or negative values .

Selective Inventory Control – ABC Analysis • 20% of the Items account for 80%of the value – Example – Some platinum needle. • Management concept behind this example . • Define name for the look up table. .Lookup table • Heading can be Numerical & Alpha Numerical • There should not be any gap in the adjacent cell • Numerical lookup table always start with zero.

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