WHAT IS MIS (MANAGEMENT INFORMATION SYSTEM)

Management information system, or MIS, broadly refers to a computer-

based system that provides managers with the tools to organize
evaluate and efficiently manage departments within an organization. In
order to provide past, present and prediction information, a
management information system can include software that helps in
decision making, data resources such as databases,
the hardware resources of a system, decision support systems, people
management and project management applications, and any
computerized processes that enable the department to run efficiently.

The MIS plays a very important role in the organization. The system
ensures that an appropriate data is collected from the various sources,
processed, and sent further to all the needed destinations.
The system is expected to fulfill the information needs of an individual,
a group of individuals, the management functionaries: the managers
and the top management. The MIS satisfies the diverse needs through a
variety of systems such as Query Systems, Analysis Systems, Modeling
Systems and Decision Support Systems.

MIS helps in Strategic Planning, Management Control, Operational

Control and transaction Processing. The MIS helps the clerical person el
in the transaction processing and answers their queries on the data
pertaining to the transaction, the status of a particular record and
references on a variety of documents. The MIS helps the junior
management personnel by providing the operational data for planning,
scheduling and control, and helps them further in decision making at
the operations level to correct an out of control situation.

The MIS helps the mid le management in short them planning, target
setting and controlling the business functions. It is supported by the use
of the management tools of planning and control. The MIS helps the
top management in goal setting, strategic planning and evolving the
business plans and their implementation. The MIS plays the role of
information generation, communication, problem identification and
helps in the process of decision making. The MIS, therefore, plays a vital
role in the management, administration and operations of an
organization.
 MANAGEMENT INFORMATION SYSTEM:

SERVICE INDUSTRY

INTRODUCTION -
Mid- and upper-level managers rely
on a variety of information systems
to support decision-making activities,
including management information
systems, decision support systems.

Management information systems

involve three primary resources:

Technology, information, and people, and the most important resource

are people, as people are the customers and no business would mean
anything without its customers.

Management Information System is considered as one of the most

important aspects of organizations and companies in the world, due to
the different impact of different aspects such as globalization, improving
communication technologies as well as the variability of the demands of
the customers. MCDONALD is the worlds most vast and diverse service
industry.it utilizes the management information system for its proper
functioning. This project will focus on the different issues and aspects of
McDonalds regarding IT and Management Information System.
Applications of Information Technology in McDonalds:-
McDonalds is considered as one of the most successful as well as famous
brands in the whole world. Improving the application of IT and Information
System on the menu of corporate goals of the company is considered as one
of the priorities of the company.

The transaction processing and recording and financial management is one

of the most important aspects of the company where in IT is being applied.
In addition, it can also help to improve the customer relationship
management, sales and marketing activities by having a real-time
transmittal of their restaurant inventory, point-of-sale or POS as well as
financial data.

POS System in McDonald’s:-

It's a very useful way to finish the order quickly with less error. Also it helps
the worker in front of the screen not to forget asking customer about
everything for example the size, number of sandwiches and if making the
order take away or not. Furthermore, it's all done by a system that can save
everything for the manager to check about the profits, loses or amount of
order per day at the end of each month or at the end of the year.

Transaction Processing Systems(TPS):-

Most of an organization’s daily activities are recorded and processed by its
transaction processing system (TPS), which receives input data and converts
them into output information intended for various users. Input data are
called transactions events that affect a business.

 I think that McDonald’s are using the right information systems for their
companies for example by using the TPS it let the employees have more
 time for their customers and it also help them by saving time with
applying this system , its faster and more accurate to enter any data.

 Transaction processing system also helps McDonalds in keeping track of

their suppliers as it record relevant information about suppliers such as
supplier name, address, the quality of the items purchased and finally
the invoice amount. This helps in reducing the possible complexity that
the employees may face in physically keeping contacts with all the
suppliers and so eases process of ordering when in need.

 A financial transaction is an economic event, it affects the firm’s assets,

is reflected in its accounting statements, and is measured in monetary
terms. Sales of goods to customers, purchases of inventory from
suppliers, and salaries paid to employees are all financial transactions.
Everything else is a nonfinancial transaction. The marketing
department, for example, might add some demographic data to its
customer database. The information would be processed by the firm’s
TPS, but it wouldn’t be a financial transaction.

 Figure “Transaction Processing System” illustrates a TPS in which the

transaction is a customer’s electronic payment of a bill. As you can see,
TPS output can consist not only of documents sent to outside parties (in
this case, notification of payment received), but also of information
circulated internally (in the form of reports), as well as of information
entered into the database for updating.

IT is being applied in order to process the order and payment of their

customers in efficient and fast manners, then the data that had been
gathered in their POS can be used in order to know the flow or the trends
Decision Support System(DSS):-
By using the DSS it helps the company choose or make the right decisions
based on the quality of the data McDonald’s has used WiFi in their
restaurants to gather information about customer practice and lengths of
stay and sales, i think they were really brilliant with this idea with using this
system they can easily know how much the customers are staying and the
more they stay which means they are satisfied. And i think by using the MIS
the managers of McDonald’s can easily look for future oriented .

Payment System:

McDonald's is always looking for new and innovative ways to use technology
to improve customer service (www.qsrweb.com)." "McDonald is expanding
its use of an electronic system that lets customers pay for their orders using
a cash-free key tag system originally developed for Mobil gas station
(www.ecommercetimes.com). The Speed pass is a transporter that can be
kept on a customer’s key chain." When a purchase is made, the gadget
automatically sends a signal to the credit card account, so that the purchase
can be included on the customer's next monthly bill. This process will allow
McDonald's to move rapidly when dealing with orders and purchases.
In addition to that, the financial data that had been gathered from the POS
will be helpful in knowing the performance of individual store as well as the
overall performance of the company in the world that will be important in
order to show the financial condition of the company to their stakeholders.

Policies, Procedures and Systems:-

The entire management information system or MIS of the company focuses
on the three different purposes of information such as the strategic that
mainly focus on the key ratios, strategic plans and marketing analysis that
can help to analyze the current situation of the company that will help for
establishments of strategies. The technical information focuses on the
variance analysis and exception reports that help to compare the
development of the company, based on past data. Above all, the operational
information pertains on the current information such as the invoice,
customer orders, stock records and sales.

Benefits of Information System:-

McDonalds used information systems to increase the productivity and
provide its customer the food with a very good quality that improved their
kitchen with an advanced technology so that the meal arrive fresher, tastier
and hotter each time they order it. Also, McDonalds used the information
system to reduce the effort, cost and time they need to do their processes.
Furthermore, by using this information system, McDonalds have the ability
to maintain its customer and attract more customers. In this report I will
write about systems that help McDonalds to be one of the best restaurants
in the world which are:
1- Made for you system:-

In this system” the meal prepared after the person orders the meal not
before” which mean that while you are make the order the worker in front
of the screen click on the what you order and the order goes immediately to
the kitchen where the chef made the meal just on the time he saw the order
not before so that the meal be more tastier and fresher arrives to the
customer in a few minutes.

2- Hyperactive Bob system:-

This system “based on the computer vision and artificial intelligence systems
employed by robots, to manage the kitchens at so-called quick-service
restaurants” .In this system they use a cameras on the roof of the building
that monitor the entrance of the McDonald’s restaurants and the parking
lots to see the number of people are coming to the restaurant when the
workers are busy to know how fast they need to be to make the meal and
what amount of meats, chickens, fries and other things they use needed and
to make an expectation of meals that must be ready at a period of time if
there is lots of people to have their satisfaction.
3- POS (point of sale) system:-

Its computer software used in a touch screen that Macdonald’s restaurants

use or handheld devices. This system helps McDonalds to track the real time
transaction and used to speed the business process to ensure fast and
accurate order for example sending the order to kitchen screen and
processing the credit card payment and other process that must be
accurate. Also, the cashier immediately knows what payment is due and the
kitchen knows the coming up orders and for how long a customer waited.

 3 systems for McDonalds to manage records:

1. Store management system (SMS)

2. Restaurant training tracking system (RTTS)
3. People management information system (PMIS)

RTTS:-

For management team or above:

Stored information: management team’s training record and system
E.g. self-study, training course in Hamburger U
 Can check the level status of manager i.e. which course is suitable for this
level, on-line test

PMIS:-

Stored info: whole shop’s employment database

1. Payroll,
2. Training
3. Scheduling
Transfer: crew allocation

Assistance shop manager shop manager

Change info Approve info

Final Information

 They have different login level

 Auto analyze statistic of crew records e.g. pay leave, annual leave

In addition there are different departments that are responsible in

generating the reports regarding the MIS such as the financial department,
purchasing department, Human Resource department and sales and
marketing department. The financial department focuses on the different
reports regarding accounts, debits and payroll; the purchasing focuses on
the orders and stock selection; the HR department focuses on the reporting
regarding the levels of staffing, absenteeism, skills as well as shortage; and
the sales and marketing produce the reports regarding the turnover, sales
ration and market intelligence. All of the said reports can help to analyze the
overall performance of the company that can help the decision-making
process.

Other interesting issues about Information System at McDonald’s:-

1. First issue is to know who has access to the information system

because it is important to protect this system from potential
competitors so it is better to implement a more secure information
system in the future that is more difficult to hack into it, as there is a
lot of company’s would want access to the information’s of
McDonald’s.
2. Second issue is to know where the data is coming from; if it is
collected from the customer, then the customer better be informed of
this and they should agree to give this information about themselves
so it will mean more accurate computations of this data

3. Third issue is measurement errors, so in future it is better to

implement superior ways of presenting the information which the
system provides and better ways of applying this information to make
more money, for example it would be better to have the system give
me information which I could.

4. Fourth issue is to teach or train the employees who have access to

McDonald's information system, how to use that information system
in a way to benefit.

5. Fifth issue is how to make sure that the same information system is
being used the same way in every McDonald's branch all over the
world.

Other Facts about McDonald’s:

 Using ADSL broadband connections to authorize transactions,

McDonald's has been able to reduce the time to process card
payments from thirty seconds to just four.

 But it's not just in the restaurants that new IT is expected to help the
company's business.

 McDonald's is using wireless technology to make savings in its IT

infrastructure and increase productivity.

 But McDonald's has no plans to introduce radio frequency

identification (RFID) tagging into its supply chain management system.
 MANAGEMENT INFORMATION SYSTEM
MANUFACTURING INDUSTRY

Toyota has established new areas for

development through innovations
made in their management
information systems assigned for
shipment. The company is functioning
all over the world with clients and
global leaders to enhance the process
of shipment.

Not only do the MIS systems of Toyota enable the gathering of huge
amounts of business information, but they also offer a significant time
saving advantage to the employees. Where in the past business data of
Toyota had to be manually analyzed for documentation and analysis it can
now be keyed in immediately and comfortably onto a computer by a data
processor, enabling quicker decision making and more immediate reflexes
for the company in its entirety.

If an organization does a terrible job of managing and maintaining client

accounts and information, it can lead to issues for both the organization and
the client. This assignment will concentrate on Toyota, and the way the
company enhanced its customer service and minimized expenses by
enhancing its management information system (MIS).
 Toyota Comprehensive Warehouse Management
System (Toyota WMS)
These management information systems offer effective management for
warehouses of the whole procedure from the period products are obtained,
to storage and location control, to shipment. Individuals, products, and data
are addressed, wastes are removed, and everyday enhancements are
advocated. The Toyota WMS are tasked to offer an important function in
generating comprehensive reports out of huge volumes of warehouse
information that would otherwise be primarily considered as junk to
decision makers. By analyzing these outputs warehouse management
officers of Toyota can determine patterns and trends that would have
stayed invisible if the raw information were consulted in manual terms.

JIDOKA
If any issue emerges at any point of the manufacturing process, Toyota's
error identification system, or JIDOKA, determines the problem and allows
line workers to make the important measures to resolve it immediately even
if that implies stopping the manufacturing process. By determining the
equipment where the problem initially happened, this management
information system makes it more comfortable to determine the cause of
the issue and stops defects from developing to the succeeding phases of
production.

ANDONS
Toyota utilizes management information systems that employ visual
controls to immediately convey the status of production. On the production
area, for instance, management information systems help inform a worker
with a single glance whether the station is operating properly; whether
there is something wrong being checked or whether the production has
been halted. Management information systems also give critical data like
which machine did not operate, the operator and the real time situations
when it malfunctioned.
POKAYOKE
Toyota utilizes a variety of these affordable, highly dependable management
information systems throughout its production process to stop defects.
While computers of Toyota cannot establish business plans by themselves,
they surely have helped the management in knowing the impacts of their
plans, and aid in the process of effective decision-making. The POKAYOKE
are tasked to convert information into data helpful for decision making.

APPLICATION OF MIS ACROSS DEPARTMENTS

OPERATIONS
The Toyota Comprehensive Warehouse Management System offers
remedies for the organization concerning car and process structuring and
planning for the smooth flow of operations. The Toyota Comprehensive
Warehouse Management System aids the organization with regard to the
enhancement of the operational procedures
The smooth flow of operations is accomplished within Toyota through the
Toyota Comprehensive Warehouse Management System, where the
structuring of each car model and warehousing processes from the
prototyping level to the production phase is attained in one structure. This
limits unnecessary repetition of processes and the need for interfaces as
data is secured in a centralized system. Excellent coordination with suppliers
offers great opportunities for more efficient product development with
suppliers via the Internet.

SAP gathers specialized production orders from Toyota's planning system.

The orders include the car parts essential to assemble each car; some
Toyota cars, for example, have plenty of components detailed in the list. SAP
generates the shipment schedules for each part to match Toyota's
assembly-line procedures.
Toyota delivers these detailed information and precise shipment schedules
to its suppliers. The significant suppliers obtain the information through
electronic data interchange. Other providers log on to the Toyota online
portal, where the company details the provisions to provide the updates on
its shipment activities. By going to the website of Toyota, suppliers can
monitor this information in real time, including release schedules, receipts,
and other important information.
When they deliver car parts, the suppliers send Toyota shipment details to
give them with the latest information in this matter. Car parts going inside
the Toyota storage facilities are then obtained and delivered quickly to the
line. There, Toyota uses its JIDOKA to monitor the assembly process in real
time. JIDOKA tracks the production verification and consumption
information consistently. Parts utilized in the production are removed from
the stock list, and costs are presented to detail the value of work in process.
Customer desires for various Toyota cars warranted a solution that would
properly improve and help organize production. These MIS help the
organization to reduce order-to shipment period, enhances its supply chain
activities with regard to demand analysis and tracking of deliveries, and
improves inventory activities all over its establishments– enabling Toyota to
significantly reduce time to customer for its excellent vehicles.

FINANCE
In 2003, Toyota started to implement SAP software system which also
provides financial information to the finance department of the company
and its concerned personnel. The people of the finance department of
Toyota analyzes previous and current financial figures, anticipates future
financial outputs, and checks and handles the utilization of capital over time
by making use of the information generated by SAP.
The SAP provides options that enable sales and pricing of cars through
configuration and monitoring of available parts. Vehicle customization and
pricing via the Internet enhanced car sales of Toyota by offering customers
with the choice of designing their vehicles. Once the vehicle is designed, the
SAP will determine the worth of the vehicles based on the design. Vehicle
search enables Toyota to locate vehicles that address the specific designs,
accomplishing faster delivery to customers.
MARKETING
The SAP helps the marketing operations of the organization with regard to
product development, pricing activities, marketing, and sales forecasts. Just
like other important company operations, Toyota relies on external sources
of data. These sources entail the opinion or feedback of customers.

DECISION MAKING AT THE THREE TIERS OF

MANAGEMENT

Operational Level Systems

To transform the operational level decision making within Toyota very
fundamental and productive, the MIS of Toyota aids in providing and
sending reliable information to all executors. The Toyota Comprehensive
Warehouse Management System is established to enhance the reporting of
information that will be important in the proper decision making within the
operational level of Toyota. Furthermore, the SAP is able to effectively
collect and process data, process results, and able to adjust, cope and
address inaccuracies right away.

Management Level Systems

The Toyota Comprehensive Warehouse Management System has effective
internal controls that aid in the management level decision making tasks in
Toyota. Information is collected through efficient processing and inner
control tracking. An effective internal and outer audit process is utilized
within Toyota through the MIS.

Strategic Level Systems

To have a productive and efficient strategic level decision making, important
data within Toyota is processed and handled properly through its Material
Handling System. Differences in the way information is collected and
documented can change information and trend studies. Also, because data
collection and documentation activities will eventually change through time,
 Toyota management has established flexible methods to allow systems
developments through the MIS. These procedures are always well
structured, properly informed to employees and has a tracking system that
helps in the strategic level decision making of Toyota.

CONCLUSION
 The role of the MIS in an organization can be compared to the role of
heart in the body. The information is the blood and MIS is the heart. In
the body the heart plays the role of supplying pure blood to all the
elements of the body including the brain.

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

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

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

 The MIS plays the role of information generation, communication,

problem identification and helps in the process of decision making.
The MIS, therefore, plays a vital role in the management,
administration and operations of an organization.