FACULTY OF OUM BUSINESS SCHOOL

10th SEMESTER

CBMS-4303

MANAGEMENT INFORMATION SYSTEM

May - 2016

NAME : MD. Shariful Islam

MATRIKULATION NO : UGS00020291

IDENTITY CARD NO : 16020105

E-MAIL : Md.Sharifulislam01686966209000@gmail.com

TUTOR’S NAME : Mrs: IRINE SULTANA

LEARNING CENTER : WEST COAST INSTITUTE OF MANAGEMENT &

TECHNOLOGY DHAKA, BANGLADESH

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Introduction:

A management information system (MIS) is a computerized database of financial information

organized and programmed in such a way that it produces regular reports on operations for
every level of management in a company. It is usually also possible to obtain special reports
from the system easily. The main purpose of the MIS is to give managers feedback about
their own performance; top management can monitor the company as a whole. Information
displayed by the MIS typically shows "actual" data over against "planned" results and results
from a year before; thus it measures progress against goals. The MIS receives data from
company units and functions. Some of the data are collected automatically from computer-
linked check-out counters; others are keyed in at periodic intervals.

The purpose of this assignment is to propose the use Information Systems (IS) in improving
service quality in two areas at Thumbkin Hose Resturant (THR) namely: 1. To tract food
items stock level so that there will never be “out of stock problems and 2. To adopt online
ordering to reach more customers to THR. The assignment requires discussion on how IS
could be used to improve service quality of the restaurant

Background of Thumbkin House Restaurant (THR)

Background of Thumbkin House Restaurant (THR )THR is located in Kuala Lumpur. This
restaurant serves a variety of eastern and western cuisines and drinks. THR is already using
Information System (IS) in handling data for processing food orders on daily operation. It has
provided faster response to customers. But management want IS functions to be expanded to
track food items stock level so that there will never be "out-of- stock" problems. THR also
wants to adopt online ordering to reach more customers via food delivery service. In order to
implement these goals, appropriate IS Strategic Planning has to be carried out.

Overview of the assignment content INFORMATION SYSTEMS

An information system is a computer system that provides management and other personnel
within THR with up-to-date information regarding the organization's performance that
involves only food orders. THR need to upgrade the system so that THR would be able to
include current inventory and sales.. It is and need to be designed to capture, transmit, store,
retrieve, manipulate, and or display information used in one or more business processes.

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Restaurant Manager Work

There are several categories of personnel in the restaurant business: manager, cooks, servers,
busboys, dishwashers, hosts and bartenders. When your restaurant is still new, some
employees' duties may cross over from one category to another. For example, your manager
may double as the host, and servers may also bus tables. Be sure to hire people who are
willing to be flexible in their duties. Your payroll costs, including your own salary and that of
your managers, should be about 24 to 35 percent of your total gross sales.

 Manager. The most important employee in most restaurants is the manager. Your
best candidate will have already managed a restaurant or restaurants in your area and
will be familiar with local buying sources, suppliers and methods. You'll also want a
manager with leadership skills and the ability to supervise personnel while reflecting
the style and character of your restaurant.

To get the quality of manager you want, you'll have to pay well. Depending on your location,
expect to pay a seasoned manager $35,000 to $55,000 a year, plus a percentage of sales. An
entry-level manager will earn $28,000 to $32,000 but won't have the skills of a more
experienced candidate. If you can't offer a high salary, work out a profit-sharing arrangement-
it's an excellent way to hire good people and motivate them to build a successful restaurant.
Hire your manager at least a month before you open so he or she can help you set up your
restaurant

These systems output information would be useable at all levels of the organization:

Strategic, tactical, and operational. Organizations use different types of MIS for different
needs and scenarios. At a given point of time an organization might be using several types in
isolation and in combination. THR need to use transaction processing system (TPS) to
tabulate all its recurring transactions like inventory and customer orders. The operations
information system, (OIS), is used by managers to plan out their production and schedule
activities. The decision support systems (DSS) are used by the top management to find
feasible solutions and options to different scenarios.

The uses of MIS in THR Management would help in:

1. Transaction processing such as answering the questions, status of a particular record and
variety of documents.

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2. It gives operational data for planning, scheduling and control.
3. It helps in decision making and to correct an out of control situation.
4. It helps middle management in short term planning, target setting and control the business
functions.
5. It helps top management in goal setting, planning business planes and its implementations.
6. It helps in generating information, communicating of the generated information, problem
identification and helps in the process of decision making.
How IS can be used to track food items stock level
1. The inputs involved
a) What arrears need to be changed? Changes would involve new computers , software
to accommodate the new requirement of stock inventory .
b) Who would be involved in the changes? The IT personnel would be the foremost
person to be involved, the serving staff, the teller machine staff, the chef, the store
person. These are people who are directly involved in the use of the new system.
c) How much would it cost? Costing involve new purchase of internet facilities,
computers, teller machines, training of staff if necessary to man the system
2. The process involved in carrying out the above function through IS requires the
following steps:

Steps 1; Start from scratch. Perform this initial count of inventory.

Steps 2; Set up a software-based inventory control system that has automatic calculation
feature, and with software that can be pre-set orders to be triggered at certain inventory
levels.

Steps 3; Establish company policies for inventory control. Make sure that accurate inventory
records are kept and that at least one party is specifically responsible for inventory
management on a daily or even near-real-time basis.

Step 4; Set up your inventory control procedure to involve two people if possible. Not only
do two sets of eyes make it less likely that anything will be missed during the inventory
count, it is also a good general safety and anti-loss measure.

Step 5; Confirm expected usage and investigate significant variances. Restaurants can track
the exact numbers of each item on the menu sold each day, and have good idea of what
ingredients are used and how that should be reflected in inventory.

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THR need to keep in mind that Inventory variances are part of the restaurant business.
Sometimes an employee accidentally ruins a large batch of food, or spoilage occurs due to a
banquet cancellation or another expected demand that does not materialize, or sometimes
employees simply have to "comp" a lot of dishes in a given week because of a new cook
learning the ropes. Significant variances from expected usage could, however, represent theft,
and should be investigated.

Output

The use of Information Technology (IT) helps restaurant in making their services much better
and makes work easier. The application of IT could be in the form of using the internet to
advertise a firm’s services, managing data with technology, online ordering and
communicating with customers through the internet among other services. Applying IT to
restaurants could also improve their service quality. Use of IT to manage its data has the
potential to improve service quality as well as its decision making processes. THt which
maintains a database of all orders that its customers make, are better informed about the
meals that customers order most. By addin a new software in the system it would help the
restaurant’s management to keep track of its supplies and inventory, and know what extra
items management needs to buy and would be able to achieve the “ no stock” . The Point of
Sale (POS) System for managing sales would be easy to collect information on sales and
orders made.
THR could use the following strategies:

Chase strategy where stock produce are only to meet or the demand for goods, that is to
produces meals only when a customer orders therefore matching the actual production with
customer demand. The chase strategy keeps inventories low, which frees up cash that can be
used to buy raw materials or components, and reduces inventory carrying costs that are
associated with holding inventory in stock. Cost of capital, warehousing, reduction,
insurance, taxes, obsolescence and shrinkage are all inventory carrying costs.
The second strategy is Make-to-stock whera goods are produced before customers place
orders. The make-to-stock strategy typically allows manufacturers to produce goods in long
production runs, taking advantage of production efficiencies.

Because the make-to-stock environment produces goods on a consistent basis, a master

production schedule determines the exact number of units to produce for each production run.

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Thus this strategy allows the “no stock” available. The third approach is Make-to-order
strategy where THR produce goods after receiving an order from the customer. Most often a
company that uses the make-to-order strategy produces one-of-a-kind goods. This is not a
good strategy for THR since they serve both western and easten cusine and drinks. Unless
they keep track of popular dishes and drinks and have fix menu.

. 1aii) Illustration of relevant IS input-transformation-output flow diagram for function

1ai.

1bi) Discussion of how the IS can be used to support online ordering for food delivery
service, by focusing on the following details:

On line Restaurant Marketing Strategies:

On Line food ordering services are websites that feature interactive menus allowing
customers to place order to THR. Customer would choose from available items, choose
delivery or pick up. Payment can be by credit card or cash. On line marketing strategy opens
to virtual ways of promotions by attracting new customers with functional website
establishing communication with customers, promoting the restaurant, give information about
daily deals, menu changes, and any events in the restaurant. The website must be regularly
supplemented with new content and optimized for internet browsers. High quality POS
software offer the ability to update menus offers and changes in the price.

Advantages for online ordering:

. Customer can order at will when they have time to. They can customised their order the way
they want to without errors in communication. The restaurant can take more orders with less
staff. There would be disadvantage too. Customer may not pick up the order and there would
be waste of food an loss of profit.
 The inputs involved
 The process/ methods (step 1, step 2, etc.) involved in carrying out the above function
through IS The output produced

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IS Strategic Planning to achieve the two new objectives of THR

1. Suitability of IS With THR

To be able to achieve the two objectives of THR, strategic planning to suit the goals needs to
be carried out by THR. To come up with two changes, THR has to strategically plan on
changes involving resources used to attain these deals, and on the policies that are to govern
the acquisition, use and disposition of these resources. Thus strategic planning is a process
involving acquisition and disposition of facilities, divisions, or subsidiaries, the markets to be
served and distribution channels for serving them; the organization-structure ; research and
development of new product lines

Strategic Planning decisions affect the physical, financial, and organizational framework
within which operations are carried on. There are several steps in strategic planning process
that THR need to follow the following steps namely:
1. The first step is to establish objectives, the results expected, what is to be done and
where the primary emphasis is to be placed.
2. . The second step is to establish planning premises, i.e. assumptions about the
anticipated internal and external environment that involve additional technology, and
social and ethical condition, qualitative and quantitative and controllable, non
controllable. the product market; and the factor market, (location of factory, labor, and
materials etc). Internal premises include capital investment, sales forecast and
organization structure. Some premises can be quantified while others may be
qualitative. Some premises are controllable, such as expansion into a new market,
adoption of a research program or a new site for the headquarters. Non-controllable
premises include population growth, price levels, tax rates, business cycles etc. The
semi controllable premises are the firm’s assumptions about its share of the market,
labor turnover, labor efficiency, and the company’s pricing policy
3. Third step in planning is to identify alternative courses of action.
4. The fourth step is to evaluate them by weighing the various factors in the light of
premises and goals.
5. The fifth step is adopting the plan.
6. The final step is to give meaning to plans by preparing budgets.

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The information technology architecture needed for THR

Information technology architecture is the process of development of methodical information

technology specifications, models and guidelines, using a variety of Information Technology
notations, within a coherent Information Technology architecture framework, following
formal and informal Information The IT Architecture is guided by the following objectives,
which help make decisions for establishing standards that serves: the Department's mission,
and heterogeneous environments. IT architecture should identify areas of stability without
impeding essential innovation, should describe the tangible results of conformance and non-
conformance with the architecture. Should provide sufficient documentation to assess the
compliance of a specific implementation.

What is the purpose of the IT Architecture?

The purpose of the IT Architecture is to guide the process of planning, acquiring, building,
modifying, interfacing and deploying IT resources throughout the restaurant. IT Architecture
should offer a means of stable evolution by identifying technologies that work together to
satisfy the needs of the Department users. The proposal put forth by IT architecture for THR
two new objectives have taken inti account of the above mention requirement.

To be able to succeed in the plan, THR need to understand the approaches that would
involve

1. Rational planning: involves identifying and understanding gaps between previously

established goals and past performance, identifying the resources needed to close these gaps,
distributing those resources and monitoring their use in moving the organization closer
towards its goals. This approach assumes the environment is predictable and the organization
can be effectively controlled. Since this is a straight forward business serving western and
easterd cusine, THR have chosen the correct approach.

2. Instrumentalism: means moving from one strategy to the next, depending on the
unfolding of events beyond the control of managers. Instrumentalism assumes that managers
cannot forecast or enforce the developments essential to developing a pre-ordained strategy
and therefore must continually adjust. Future developments are likely to be random so that
there is little scope to learn from past experiences. Thus, in contrast to rational planning
which emphasizes intended strategies, instrumentalism is based on emergent strategies.

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3. Organizational learning also emphasizes the need for making continuous adjustments.
However, these adjustments need not be random. Rather, managers must keep making
incremental adjustments to rational plans as they attempt to move the organization toward its
goals. Though they may be unable to foresee the future, managers must not allow their
organization to drift aimlessly. The role of top management is to encourage all employees to
continuously challenge the status quo, generate ideas for improving the status quo, conduct
experiments to see which of these ideas are most fruitful and then try to disseminate
knowledge gained from these experiments throughout the organization.

Time and budget needed and functionality

Starting a restaurant is an ambitious undertaking in term of time and money. But since THR
has already started using IS for food orders budgeting would take into consideration of
existing facilities. The following budget needed to be taken into account are:

1. New equipment and technology cost and prioritizing the most important list, do research
price for example wifi price option

2. Sales and marketing So as not to over budget and over spend the following need to be take
nintoaction, Leverage the Internet. Signup for social media sites. Place low-cost Face book
and Twitter ads; consider advertising on other social media sites. Start a conversation using
your website’ blog and social media Hand out flyersatlocal businesses. –

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CONCLUSION

TH Restaurant, need to apply MIS tool such as a Point of Sale system or a Post Order
System to their internal operations. This will help them have a system to calculate both their
orders and record inventory. The system will also help management keep track of and
monitor their stock. With this system it will be difficult for stealing to take place and delays
in providing what the customer wants. The system to monitor its inventory will help the
restaurant know exactly which items need to be bought ahead of time and avoid telling
customers to order another meal instead of their preferred choice. Inventory system helps
them record their inventory instead of doing it manually. The chaser would be able to transfer
order data from waiter to the computer. The inventory section stores information about the
item name, quantity available and the price at which it was bought.

The data on orders and inventory goes into a MySQL database which can be viewed by the
administrator. The administrator can also keep track of any data that has been entered and
receipts can also be issued. Other users can be created so that the staff in the kitchen can view
the orders made by customers. The inventory section helps the storekeeper record new items
in inventory and track inventory in order to alert management of the new items that need to
be bought. Casual dining restaurants that use MIS are able to improve upon their internal
processes and therefore able to do more with their external processes. Service quality is
indeed important and must not be ignored in a restaurant’s operations. Thus, in order to gain a
competitive advantage in the food industry, it would be best for a restaurant to apply
information technology very well to its operations to achieve good service quality.

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Reference

1. Restaurant Industry - SMERGERS Industry Watch". SMERGERS. Retrieved August

27, 2019
2. Recount/NPD Group and CRFA's Foodservice Facts
3. "Business economy – size class analysis – Statistics explained".
Epp.eurostat.ec.europa.eu. Retrieved May 2, 2013.
4. www.inc.com/encyclopedia/management-information-systems-mis.html

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