Management information system

This project is made with the objective of studying the MIS of CDL FOODS .The project is depicting the importance of MIS by studying their department like Accounts/Finance, HRM, Milk Procurement Department, IS Department, Production Department, Purchase

Department, etc. The managers of all the Departments prepare reports and ultimately send to top level of management for timely and efficient decision making. Also it shows the way of communicating information (CBIS or Non CBIS) from formal or informal source. The project also critically shows the MIS of CDL FOODS and recommendations for further improvement.


Management information system


We bow our heads before “ALMIGHTY ALLAH” in gratitude, which blessed us with sound health, talented teachers, sympathetic Friends and sufficient opportunity to complete our esteemed Project on MANAGEMENT INFORMATION SYSTEM. It is our privilege and honor to express our deep gratitude and in calculating thanks to PROF. DR. LIAQAT ALI Who gave us an opportunity to benefit from their immense knowledge and experience without which the work described in this project would not have been possible. We feel pleasure in acknowledging with profound sense of

indebtedness, the cooperation and general help of our class fellows during preparation of this project. We submit our earnest thanks to our affectionate parents for their moral boosting, financial and spiritual support during our studies.



Management information system

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Abstract Acknowledgement Dedication Introduction Of Report Reason For Selection CDL Foods History of the CDL Products Of CDL Foods Purpose Of Company Structure Of Organization Organization Chart Of Information System Department Flow Chart Of MIS In Finance Department Way Of Communication Information Current MIS Of CDL Foods Flow Of Information In Various Department Application Of Management Information System In Accounts And Finance Department Human Resource Department And MIS Purchase And Sales Department And MIS Production Department And MIS Milk And Procurement Department And MIS Information System Department And MIS Information Used In CDL Foods Decision Taken By The Management On The Information Received Through Formal Source Of Information Flow Chart of Formal Source Information Decision Taken By The Management On The Information Received Through Informal Source Of Information Flow Chart Of Informal Source Information Critical Appraisal Of Current MIS and CDL Foods The Decision May Support Current MIS Of Organization Deficiencies Recommendations Conclusions Reference

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Management information system


Management information system

This report presents the investigated M.I.S of CDL Foods. In the modern age of competition, information and information resources must be managed efficiently and effectively. The rapid change in information technology and Internet demonstrates that information systems and information technologies are essential ingredients for the success of today’s sophisticate business enterprise. Information is a valuable powerful asset; infect “life blood of a business”. Now every enterprise is emphasizing on its efforts to improve 1-Managerial Decision Making 2-Gain competitive Edge Through Management Information System, information is gathered through internal sources as well as from external sources. On the basis of above valuable information, reports are prepared and display to management on 1-Demand 2-Periodically, according to the set schedule 3-At the time of emergency With the globalization of markets, and the increased quantity and diversity of competition that occur as a consequence, the traditional view of computer systems as a “ back room ’’supporting


Management information system function is no longer viable in companies wishing to survive and prosper.

M.I.S provides managerial end users with information products that support much of their day-to-day decision making needs. M.I.S provides a variety of reports and displays to management. The content of there information product are specified in advance by managers so that they contain information that managers need. M.I.S retrieves information about internal operations from databases that have been updated by transaction processing systems. They also obtain data about the business environment from external sources. This report displays the MIS of CDL FOODS that facilitates its production operations and decision-making. MIS of CDL FOODS includes both computer based and non computer based aspects and providing assistance in areas like Accounting, Finance, HRM, Marketing, Procurement Department MIS of CDL FOODS. Also it removes the geographical constraint by using highly sophisticated technology that links plant with head office. Therefore, the scope of MIS cannot be overlooked by CDL FOODS. And it is disseminating information to concerned authority for decision making after filtering it.


Management information system

Reason for Selection
Following are the reasons for selection this organization. ♥ The management is so much cooperative in providing the information about the project ♥ The organization has a comprehensive MIS for getting the valuable information ♥ Easily accessible ♥ Because of reference we select this organization ♥ Fast growing organization in foods sector ♥ Whole system of the CDL Foods based on CBIS

CDL Foods Limited (formerly Chaudhry Dairies Limited) is a fast growing food products company. Having doubled its turnover in the last four years, the company has a turnover of more than Rs.4 billion presently. The company also operates as a franchise of Candia Cedilac of France. CDL has a state of the art milk processing facility situated at 62-KM Multan road, Near Bhai Pheru, and has a team of 400 exceptional individuals to support its operations. The head office of CDL is located in the evergreen city of Lahore at 135-Ferozepur Road. CDL is producing a number of food products both for consumers and industrial users. 7

Management information system

The main brands of CDL are as following:

CDL is the first food company and so far the only dairy company in Pakistan to get ISO 9002 Certification - a Quality Management System. While adhering to this Quality Management System, the company is committed to strict quality standards in all its operations from the collection of milk to the provision of hygienically processed nutritious products to its customers. The company follows the philosophy of "delighting the customers". The company treats them as partners and keep channel of communication open with them. The company has succeeded in this by continuously improving the quality of its products and by satisfying the needs of its customers. The company believes in creating and sustaining an environment, which encourages learning and empowerment and these in turn help strengthen the quality culture across the business. Company's Mission: 8

Management information system · providing nutritious and hygienically processed food product to our customers. · Enhancing our reputation for quality in all our operations.

· Promoting mutual trust with customers, suppliers, employees and Shareholders. · providing a healthy and safe environment to our community. CDL Foods a trained pharmacist began experimenting with various combinations of cow's milk, wheat flour and sugar in an attempt to develop an alternative source of infant nutrition for mothers who were unable to breast feed. His ultimate goal was to help combat the problem of infant mortality due to malnutrition. CDL’s first customer was a premature infant who could tolerate neither his mother's milk nor any of the conventional substitutes, and had been given up for lost by local physicians. People quickly recognized the value of the new product, after CDL new formula saved the child's life and within a few years.


Management information system

History of the organization
CDL was established in 1987. It is situated on the 135, Ferozepur

Road Lahore. CDL Foods is one of the fastest growing packaged foods companies in Pakistan with an annual turnover of Rs. 5 Billion. When the Mill was established the management information system of organization was completely non-computer based. Due to changes in the technology & to achieve the efficiency and effectiveness in the work, the company introduces the computer-based management information system in some departments of the organization. Due to consistently superior performance, it has achieved undisputed leadership in the liquid packaged milk category with a market share of over 56%. It has a very strong brand portfolio consisting of leading national/international brands; Haleeb, Candia, dairy Queen, N’rish, Skimz and Tropico. It has a highly professional management team with a progressive operating style. It can lay claim to be one of the very few Pakistani organizations, which are truly following the model adopted by globally successfully corporations, with clearly defined roles for shareholders and the management team. CDL is well known for its “first mover” initiatives in product and packaging innovations. It also has one of the largest nation-wide distribution networks delivering high quality products, even in the


Management information system remote areas of Pakistan. It has tapped opportunities in export

marke5s including Korea, Hong Kong, Afghanistan and Bangladesh.

In order to provide best quality products to its consumes, CDL has a well developed supply chain infra structure. It has heavily invested in a vast network of company operated milk collection centers

Products of CDL Foods
 Candia Milk  Haleeb Milk  Dairy Queen Standardized Milk  Tropico Juices  Haleeb Lassi Drink  Asli Desi Ghee  Haleeb Skimmed Milk Powder  Candia Skimz  Skimz-Skimmed Milk Powder  Haleeb Yogurt

Purpose of the company
Since its foundation it has

Built consumers' trust through the quality of its products;


Management information system

Providing nutrition’s and hygienically processed food products to customers.

• •

Respected the social, political and cultural tradition. Taken a long-term approach to strategic decision-making, which recognizes the interests of our shareholders, consumers,

Employees, business partners as well as those of all the national economies in which we operate.

• •

Believe in people, rather than systems Committed to creating value for our shareholders, but we will not favor short-term profits at the expense of long-term business development As decentralized as our basic policy and strategy decisions will allow Committed to continuous improvement rather than dramatic, one-off changes Above all, we are pragmatic and not dogmatic

• •


Management information system


Board of Directors Structure of Organization Managing Director General Manager

HRM Accounting/ Finance Milk Procurement Deptt. Marketing Deptt. Purchase Deptt. MIS Deptt. Sales Deptt.

Production Deptt. 13
Quality Analysis

Management information system



Management information system









Management information system

Information Systems In Finance

Cash Management

Investment Management

Capital Budgeting

Financial Planning

Forecast And Manage Cash Position

Manage Short Term And Other Securities

Evaluate Risk/Return Of Capital Expenditures

Forecast Financial Performance And Financing Needs

Ways Of Communicating Information
 Reports prepared by different departments


Management information system  Meeting organized daily, monthly, as well as when Director. E-mail, websites (internet sources), data storage Telephone, Fax, intra net used by the organization Wide area network (WAN) is used as a

needed by chairman and Managing  tools  

communication between different departments and is possible through client server system

The present scenario of this competitive world shows that to survive, one must be well versed in every aspect of life. The same phenomenon is applied to the business world. To survive in the modern age, the business world must adopt such kind of practices, which fulfill the modern requirement of the age and MIS is providing a great service in this respect. CDL FOODS is the well-reputed organization of Pakistan and also in the world, realizes the Importance of MIS. CDL FOODS has a well-managed MIS department. Company is using following soft wares (Microsoft, Netscape, Oracle, SAP, mIRC, ICQ) and Hardware (Intel, AMD, Philips, Sony, Panasonic) and Downloads like, and Tucows and News like (ZD Net, Byte Magazine, Win Mag) to make its MIS effective and more efficient.

Flow Of Information In Various Departments


Management information system

Decision Making Chairman

Board of Directors

Reports: Analysis Report Exceptional Report Plan of Action Report

Managing Director

Gen. Manager of Departments


Assistant Managers  Flow of information is from low level to top level of the management  At each level every manager has given some power to make decision up to some extent Specifically by having MIS department they are now achieving a competitive edge by having Information from all the departments. MIS is prevailing in all the departments of CDL FOODS. Which helps to communicate information from one department to another?


Management information system

Application Of System In Department

Management Information Accounts And Finance

In CDL Foods the accounting department is totally computer based termed as Accounting Information System. The accounting

information system is based on the double entry bookkeeping concept, which is hundreds of years old, and other, more recent accounting concepts such as responsibility accounting and activity based costing. Computer based accounting systems record and reports the flow of funds in CDL Foods organization is on a historical basis and produces important financial statements such as balance sheets and projected financial statements and financial budgets. Financial performance of CDL Foods is measured against such forecasts by other analytical accounting reports. The major function of this department is to handle all accounts activities such as the daily transactions, checking of Accounts preparing ledger & balance sheets through Transaction Processing System (TPS). All these functions show a true & fair picture of the financial position of the organization for the Finance Department to make the forecast of future conditions such as financial budget. Apart from the above the Finance Manager of the same department will see cash flow statement prepared by Accounts manager amount of expenditures and budget require to achieve the organization goals & projects. All the above Information is analyzed. In the form of Daily, or Monthly Report, Half yearly and Yearly by General Manager of the concerned department who if needed will submit the report to the


Management information system Managing Director for effective decision-making. all the activities are done by CBIS. In this department

Human Resource Department and MIS
Human resource is concerned as a valuable asset of the organization. CDL FOODS is giving a great consideration on this department. They are providing a very healthy environment for their employees. By using MIS in this department they have provided online General Ledger facility to their employees as well as database management through processing and reporting which they have great and speedy access to the data related to the system employees. The data includes the history, qualification, incentives, payroll, system; Advances etc. With the help of MIS, CDL FOODS is able to recruit and retain the employees which is the basic of HRM.CDL Payroll FOODS recently introduced a SYSTEM REVIEW TEAM (SRT) containing transaction processing three to four members. Their basic function is to receive information in system the form of request, recommendations of the employees. This team will then review, analyze, check the situation and then form the report for the GM, which if needed will submit it to the higher authority for effective decision making. Higher authorities for effective decision making to raise the morale of employees consider legal and social issues. Financial reporting

Purchase And Sales Department & Mis
Daily, Weekly Report of Purchase Department prepared by the concerned manager is a clear reflection of the performance. They have fully automated system. They have direct link with the Sales Department.


Management information system Report is prepared on the basis of purchase requisition, purchase order, issue note, goods received note, Bin cards. Above requisites will provide them a clear picture of availability of inventory and the average price, costing and payment. These reports are submitted to manager for analysis, which at last takes necessary decisions. IS department of CDL FOODS has developed a program for future effective working of department. Company maintains and records of changes in inventory level in the computers for quick access of information available to them for decision-making.

Production Department & Mis
Information gathered for effective decision-making can be seen by the manufacturing department of company with the help of Production Report prepared by the manager of Production Department. Which is prepared on daily, weekly, monthly, half yearly and yearly basis this report includes all the activities relating with the planning and control of production process? A computer is integrating all the activities and supports all the process. These reports will also show the deviation from the set standard, in quality and quantity. Production Schedule on daily basis provides a vivid picture of the performance of Production Department. This situation will be analyzed; check and action plan will be made (in the form of report) for necessary decision to create flexible, agile, manufacturing process that effectively produces products of high quality. CDL FOODS also organize a SALES AND PRODUCTION PLANNING MEETING in which sales and production reports are submitted by the managers of the departments to top management for effective decision making and planning.


Management information system

Milk & Procurement Department (MPD) and MIS
This is perhaps the most critical department of the CDL FOODS Foods Ltd and requires great attention for its operation. This department focuses on the procurement of milk as a core raw material, which is used in different products. This department maintain standard of milk, which they get by checking the percentage of fats, and applying, SNF (solid non fat) approach in this way, this department contributes to CDL FOODS to achieve quality product. By using MIS, this department is able to make payment to their suppliers in proper time Because before that their was no data base system for the suppliers, distributors, and the percentage given to them was recorded in register which took a lot of time for timely decision making.

Marketing Department (Research) and MIS
Marketing Department of CDL FOODS Ltd is playing an important role by performing research for them. They have internal as well as external sources for marketing. Basically, they depend upon the information from the external sources and FAST information and technology institute is rendering reliable services for them. the representatives of FAST checks the demand of the customer, consumers and give CDL FOODS a reliable picture of their market share against their competitors so that they can take proper actions. This information is transmitted to the marketing manager which is 22

Management information system then ultimately in the form of Research can prepare Sales Promotion Strategies. Report is submitted to the

top level for effective decision-making. Apart from that management

Information System Department And Mis
CDL FOODS has an energetic IS department and providing assistance to integrate the rest of departments. This department has developed software’s for the organization such as;  Data base  Visual basic  Fox pro  Linux  Unix Database is being separately used for plant and head office and is updated for time to time. On the needs and requirements of every department, they develop software. Apart form above they have GFFS (Grand father, father’s son) software, which is serving as storage tool. It includes tapes in which data relating to important issues is stored as back up and is submitted on Daily basis to General Manager Information System Who on the basis of these can make effective decision-making? Apart from above they have developed 23

Management information system

 Client Server system  A comprehensive website Also they have forecasted the future needs and are working on enterprise resources planning software and make the required changes with the passage of time and also upgraded their website.

Information Used In CDL Foods
MIS of CDL FOODS incorporate the following features. • • Formal source of information Informal source of information

Decision Taken By The Management On The Information Received Through Formal Source Of Information
CDL FOODS is collecting information from formal as well as from informal source. That information facilitating the management for effective decision-making. The GM of HR department observes that when the employees at the plant on Bhai Pharu. The cost increases in the shape of high bill of telephone because it results in trunk call of Lahore.GM analyzed all this, and prepare a report for information system manager to prepare a system which can reduce the high cost due to trunk calls. Information System Manager analyzed it, and makes decision that


Management information system they should have a Fax Server System, which will eliminate the call of Lahore.

Human Resource Department

Flow Chart of Formal Source Information
Seek Information

High Communication Cost

High Telephone bill

GM Analyze The Situation

Check Information

Prepare Report

Deliver to MD

Review the Report

Decision-Making 25 Fax Server System

Management information system

Decision Taken By The Management On The Information Received Through Informal Source Of Information
CDL FOODS is also taking the benefit by using the information from informal source i.e. from the source which is not the part of the system of organization. Through media, the organization comes to know that the prices of raw material will be increased due to imposition of Govt. taxes. It will enhance the cost of finished products. . This is the information that is generated through informal ways. On the basis of this information, management has to decide to make changes in their price policy so management has taken the decision on the basis of informal source of information.


Management information system

Govt. Tax Policies Results Increase in Taxes

High Production Costs

Published Sources



Electronic Media




Management information system Information (Received by)

Concerned Authority


Readjustment of Price Policy

Critical Appraisal Of Current MIS Of CDL Foods
CDL FOODS is a worldwide, well-known and well reputed organization. The organization has adopted computer based information system (CBIS) is old. The organization has achieved competitive edge due to adopting CBIS. By using the current MIS they have remove many hindrances just like they have very big hindrances that they don’t have a immediate contact with the plants and head office, they face some hindrances about the employees matter they were unable to understand the employees matter, requirements, but since they have adopted the MIS they are using to remove the hindrances with the help of data base information system. Now they have a big network in Pakistan. They are using various type of soft wares and networks i.e. LAN, Intranet, WAN and Internet. Though their MIS has resulted in the connectivity of head office and plants. IS also resulted in increasing revenues both in domestic and foreign markets. The organization is adopting the rapid changes in 28

Management information system the field of technology. They have not to face any resistance from employees because they adopt new soft wares after giving train to employees. It means the organization has friendly software user environment for introduction of new software. The organization has highly trained expertise for development of new soft wares. The major drawbacks of MIS of CDL Foods are that they are not providing online shopping facilities to consumers and retailers.

The Decision May Support Current MIS of Organization
The HR manager says that the data which provides by IS is in raw form and we have to finalized it. I think that if this should be provided in final form then we make better and in time decisions.

Deficiencies in current MIS of CDL FOODS
The head office of CDL FOODS is in Lahore while plant is at Bhai Pheru. So to interact effectively, the organizations have no facility of videoconferencing. The mean of transfer of information among head office and plants is tele fax and telephone. To enhance the performance they should have an integrated system like they say that they have to see the resistance due to this software as well as to launch as effective training programs.


Management information system Geographical constraint results in the additional cost in the shape of fax bill. Though in the plant, they have an open system, but they don’t encourage interaction with in the premises of the head office. In some departments the reports are manually prepared; they are not entirely computer based. It is not beneficial for the effective decision making because it is time-consuming process. The organization is not providing online facilities to the customers, which is the great requirement of the day.

Recommendations For The Improvement In MIS
Winston Churchill says: “To prosper change is necessary but to be perfect, continuous change is necessary.” therefore following recommendations are to be considered by CDL FOODS for their effective working. The organization should such easy accessible software to get more competitive advantages over other organizations in Pakistan (just like Toyota got a competitive edge by the following this technique). Reduce wastage of time but also provide a clear feedback of the whole organization. The products. organization must introduce online terminals for the customers to receive their purchasing orders and complaints about the


Management information system They should lessen the geographical constraint but adopting fax server system, which will eliminate the cost of trunk call of employees contacting from plants. The organization should introduced video conferencing facilities among plants and head offices situated in different cities for effective decision-making.

After studying the MIS of the CDL FOODS we conclude that CDL Foods has an effective management information system that provides a framework for the control and efficient utilization of organization resources to achieve business objectives. Due to this effective MIS the organization Pakistan. We also conclude that there are some deficiencies in the management information system of the Enterprise and we had given some recommendations to improve the quality and to save the time. If the company adopts the recommendations, which are given up, the organization can increase the efficiency and effectiveness of the work. It can also increase its profits due to decreases in the cost and time spent on the delivery and reception of the information. has competitive edge over other organizations in


Management information system

Mr. Muhammad Wasif General Manager HR Department Mr. Muhammad Umar Janjoa Assistant Manager HR Department Mr. Muhammad Assad Asst. Manager MIS Department Management Information System By Robert schultheis & Mary Sumner Web site of the company


Management information system


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