MODULE-1

INTRODUCTION TO MIS
INTRODUCTION

 A Management Information System (MIS) is a information system

used for decision making, co-ordination, control, analysis and
visualization of information in an organization.
 MIS is also called as Information system or computer based
Information system. The study of MIS examines people and
technology in an organization context.
 Earlier MIS was used a resource of management by managers to
control and plan different operations in the organization.
 But now as it is computerized, it has increased its accuracy and
speed in solving problems as well as in decision making.
 Processing transactions, online bill payments are good examples of
MIS.
DEFINITION

 Information systems refers to the practice of

integrating computer systems, hardware and software
used to meet an organizational strategic goals.
-Kenneth Hamlett.
 MIS is a planned system of collecting, processing,
storing and disseminating data in the form of
information needed to carry out the functions of
management.
-Allen S. Lee.
 Management: Management can be defined as the
procedure of planning and regulating the operations
of an organization.
 Information: Information is data that has been
processed and received in such a way so that it is
meaningful to the person who receives it.
 System: A group of elements are called System.
These elements are grouped together to serve a
common purpose.
CHARACTERISTICS OF MIS
 Integrative system: An MIS is logically integrated systems comprising of
sub- systems, where activities of each are inter-related. This integration is
possible by rotation of data among these sub-systems.
 Sub-System concept: Although a system is considered as a single entity, but a

big system is divided into sub-systems for effectiveness.

 Provides relevant information to management: MIS should provide only relevant

information to the managers and helps in reducing confusions and solving problems.
 Flexible: MIS must be the one that can be easily modified to changing circumstances. It must
be capable of expansion, accommodate, contraction, processing when required.
 Enhance productivity: MIS helps in efficient document preparation, provides
high level of service to the individuals, in early detection of warnings about
internal and external problems. It improves the manager ability to deal with
unexpected problems.
 Coordinated system: Components of MIS like data processing, office

automation, intelligence and decision support systems are developed and

managed in coordinated manner.
 Feedback Systems: MIS provides feedback about its own efficiency and effectiveness.
 Management oriented: The basic objective of MIS is to provide information support to the

management in the organization for decision making. The MIS is such that it serves all the
levels of management in an organization i.e. top, middle and lower level.
 Management directed: MIS is management-oriented, it should be directed by the management

because it is the management who tells their needs and requirements more effectively than
anybody else.
 Common database: This is the basic feature of MIS to achieve the objective of using MIS in

business organizations. It avoids duplication of files and storage which leads to reduction in
costs. Common database means a “Super file or Master file” which consolidates and integrates
data records formerly stored in many separate data files.
 Distributed data processing: Distributed data processing is in which multiple computers

across different locations share computer-processing capability.

 Computerized system: Use of computers increases the effectiveness and the efficiency of the

system. The queries can be handled more quickly and efficiently with the computerized MIS.
The other benefits are accuracy, storage capacity and timely information.
 Transforms data into Information: When a data is processed for a specific task, then it

becomes information. There are different methods available to transform data into information .
NEED OF MIS

The need of MIS is due to following reasons

 Efficiently storing and managing data of all business functional areas.

 Fast and accurate delivery of information, as and when needed.

 Processing of gathered data and developing information from it.

 Information availability for production and inventory.

 Providing information about current economic status of the company.

 Faster implementation of results available from reliable data source.

 Smooth flow of data within various levels of organization.

 Make availability of the information required for planning, organizing

and monitoring business process.

MIS and IT
 According to Information Technology Association of
America (ITAA) “ Information technology is a study, design,
development, implementation, support of computer based
information systems particularly software applications and
computer hardware”.
 IT depends on the environment includes economic conditions,
characteristics of principle resources, management philosophies,
societal customs and other factors.
 MIS deals with planning, development and management of
information systems to help decision makers in the organization.
 MIS is a border terms that focuses on managing information
resources in an organization.
ROLE OF IT IN ORGANIZATION

 New ways to design organizations and organizational structures are

provided.
 New relationships between customers and suppliers are created.
 Opportunity of electronic commerce is presented.
 Changes the basis of competition and industry structure.
 Provides mechanisms for coordinating work and cresting
knowledge of organization.
 Contributes to the productivity and flexibility of knowledge
workers.
 Provides the manager with electronic alternatives to face-to-face
communications and supervision.
 Efficiencies in production and service industries is increased.
 Provides developing countries with opportunities.
NATURE OF MIS
Nature of MIS involves the following points
 Report-Orientation: Different individuals can extract different reports from the same data
depending on their individual requirements which shows MIS is an individual-oriented
concept.
 Action-oriented: Information gathered should lead to some action, decision, investigation
or research.
 Exception-oriented: Since MIS is action oriented, there was a need for some specific
approach to action of data. MIS was then modified to cater the exceptional situations of
business.
 Database orientation: The effective tool of MIS is maintaining common database which
can be used by various groups.
 End-user orientation: MIS has evolved into a system that handles a database by
providing computing facilities to the end-user and giving them various decision- making
tools.
 Academic discipline orientation: The main element of MIS is Information analysis. This
analysis depends on many academic disciplines like theories, principles, concepts of
management, organizational behavior, computer science, psychology and human behavior.
  
Scope Of MIS
 Managerial accounting: Managerial accounting is concerned with providing
information to the managers who direct and control the operations of management.
Current organizational practice is usually to retain cost and budget analysis within the
managerial accounting functions and to have MIS function to provide data and model
support. It involves the following things
 Information on the costs of organization’s products and services.

 A budget is a quantitative expression on plan.

 It consists of variances (deviations of actual results).

 Information which assists managers in their planning and control activities.

 Operation Research: Operational Research (OR) is the systematic method oriented

study of the basic structures, characteristics, functions and relationships of an

organization. The main functions of OR are as follows
1. Goal Oriented Optimum Solution: OR tries to optimize a well-defined function to given
constraints.
2. Decision making: A major premise of OR is decision making irrespective of decision involved.
3. Quality of solution: OR cannot give respect answers to the problems. OR helps in improving the
quality of the solution but does not result into a perfect solution.
 Management and Organizational Theory: The fields of management and
organizational theory provides several important concepts which acts a key
to understand the functioning of MIS in organization. Some concepts are
 Behavioral theory of organizational and individual decision making.
 Individual motivation.
 Group processes and group decision-making.
 Leadership techniques.
 Organizational change processes
 Organizational structure and design.
 Computer science: Computer science is the study of theoretical
foundation of information and computation and of practical techniques for
their implementation and application in computer systems. Computer
science is important to management information systems because it covers
topics such as algorithms, computation, software and data structures.
FUNCTIONS OF MIS

As shown in figure, functions of MIS

are
 Collect data: The main function of

MIS is to identify the information

required in decision making and
organize into a database. Database
refers to the collection of data stored
at a convenient location with access
for information processing by various
individuals or groups.
 Store and process data: The second

main task of MIS is to store and

process the data in a convenient
manner for managerial use.
 Present information to Managers:

After data collection, storage and

processing, MIS provides the data to
the managers for managerial use.
COMPONENTS OF MIS

The information generated by MIS helps the management in business decision

making which results in achieving organizational goals. Various components of
MIS are
 Hardware: The different input and output devices are used for feeding the data
and displaying the information when required, these devices are called Hardware.
Monitor, printer, keyboard are examples.
 Software: Certain programs and applications which transform data into machine-
readable language which is referred as Software. ERP and CRM are examples of
software
 Procedures: A set of rules or guidelines that are established by the organization
for use in computer-based information system is referred as procedures.
 Personnel: Personnel refers to the people who use MIS to achieve organizational
business goals. These people includes of experts, managers, users.
  
BENEFITS OF MIS:
1. Reduced man power
2. Reduced cycle time
3. Reduced carrying cost of inventory
4. Reduced data transfer time
5. Reduced errors and increase accuracy
6. Improved decision making capability
7. Improved customer satisfaction
8. Reduced quality cost.
WHAT IS MIS :
 Right information
 To the right person
 At the right place
 At the right time
 In the right form
 At the right cost
Importance of Information for
Management decisions
 The management process is executed through a variety of decisions taken
at each step of planning, organizing, staffing, directing, coordinating and
control.
Decisions in Management
MANAGEMENT EFFECTIVENESS AND MIS
Information

 Data consists of raw facts and by itself is difficult to use for

making decisions.
Information:
 the output of an information system—consists of facts that have

been analyzed by the process component and are therefore more

useful to the MIS user.
To be useful, information must have the following qualities:
_ Timeliness
_ Integration with other data and information
_ Consistency and accuracy
_ Relevance
 An information system can be defined technically as a set of interrelated components
that collect (or retrieve), process, store, and distribute information to support decision
making and control in an organization.
 In addition to supporting decision making, coordination, and control, information

systems may also help managers and workers analyze problems, visualize complex
subjects, and create new products.
 Three activities in an information system produce the information that organizations

need to make decisions, control operations, analyze problems, and create new products
or services.
 These activities are input, processing, and output .

Input captures or collects raw data from within the organization or from its external
environment.
Processing converts this raw input into a meaningful form.
Output transfers the processed information to the people who will use it or to the
activities for which it will be used.
 Information systems also require feedback, which is output that is returned to

appropriate members of the organization to help them evaluate or correct the input stage
The Importance of Information

 Information is the second most important resource

(after the human element) in any organization.
Timely, relevant, and accurate information is a
critical tool for enhancing a company’s competitive
position in the marketplace and managing the four
M’s of resources: manpower, machinery, materials,
and money.
 To manage these resources, different types of
information systems have been developed.
 A personnel information system (PIS) or human resource information system (HRIS) is
designed to provide information that helps decision makers in personnel carry out their
tasks more effectively.
 Web technologies have played a major role in improving the efficiency and

effectiveness of HR departments.
 For example, intranets are often used to provide basic HR functions,.

 Intranets reduce personnel costs and speed up responses to common employee requests.

an intranet is a network within an organization that uses Internet protocols and

technologies for collecting, storing, and disseminating useful information that supports
business activities such as sales, customer service, human resources, and marketing.
A PIS/HRIS supports the following decisions, among others:
_ Choosing the best job candidate
_ Scheduling and assigning employees
_ Predicting the organization’s future personnel needs
_ Providing reports and statistics on employee demographics
_ Allocating human and financial resources
 A logistics information system (LIS) is designed to
reduce the cost of transporting materials while
maintaining safe and reliable delivery. The
following are a few examples of decisions
supported by an LIS:
_ Improving routing and delivery schedules
_ Selecting the best modes of transportation
_ Improving transportation budgeting
_ Improving shipment planning
 A manufacturing information system (MFIS) is used to manage
manufacturing resources so companies can reduce manufacturing
costs, increase product quality, and make better inventory decisions.
 MFISs can perform many types of analysis with a high degree of

timeliness and accuracy.

 Here are some decisions that an MFIS supports:

_ Ordering decisions
_ Product cost calculations
_ Space utilization
_ The bid evaluation process used with vendors and suppliers
_ Analysis of price changes and discounts
 The goal of a financial information system (FIS) is to provide information to financial
executives in a timely manner. Here are some decisions an FIS is used to support:
_ Improving budget allocation
_ Minimizing capital investment risks
_ Monitoring cost trends
_ Managing cash flows
_ Determining portfolio structures
 In addition, marketing information systems (MKISs) are used to improve marketing

decisions.
 An effective MKIS should provide timely, accurate, and integrated information about the

marketing mix-4Ps: price, promotion, place, and product. Here are some decisions that
an MKIS supports:
_ Analyzing market share, sales, and sales personnel
_ Sales forecasting
_ Price and cost analysis of items sold
Using Information Technologies for a Competitive
Advantage

 Michael Porter, a professor at Harvard Business School, identified three strategies

for successfully competing in the marketplace:
 Overall cost leadership
 Differentiation
 Focus
 Information systems can help organizations reduce the cost of products and services
and, if designed correctly, they can assist with differentiation and focus strategies.
 For example, Walmart has been using overall cost leadership strategies successfully
. Information technologies can help bottom-line and top-line strategies. The focus
of a bottom-line strategy is improving efficiency by reducing overall costs.
 A top-line strategy focuses on generating new revenue by offering new products
and services to customers or increasing revenue by selling existing products and
services to new customers.
DIMENSIONS OF INFORMATION SYSTEMS
THE BUSINESS INFORMATION VALUE
CHAIN
Information system serve each level in a Firm
 Senior management makes long-range strategic decisions about
products and services as well as ensures financial performance of
the firm.
 Middle management carries out the programs and plans of
senior management, and operational management is responsible
for monitoring the daily activities of the business.
 Knowledge workers, such as engineers, scientists, or architects,
design products or services and create new knowledge for the
firm, whereas data workers, such as secretaries or clerks, assist
with scheduling and communications at all levels of the firm.
 Production or service workers actually produce the product and
deliver the service.
 Specifically, business firms invest heavily in information systems to achieve
six strategic business objectives: operational excellence; new products,
services, and business models; customer and supplier intimacy; improved
decision making; and competitive advantage.
Operational Excellence
 Businesses continuously seek to improve the efficiency of their operations in

order to achieve higher profitability.

 Information systems and technologies are some of the most important tools

available to managers for achieving higher levels of efficiency and

productivity in business operations, especially when coupled with changes in
business practices and management behavior.
 Walmart, the largest retailer on earth, exemplifies the power of information

systems coupled with state of the art business practices and supportive
management to achieve world-class operational efficiency.
New Products, Services, and Business Models
 Information systems and technologies are a major enabling tool for firms to

create new products and services as well as entirely new business models. A
business model describes how a company produces, delivers, and sells a
product or service to create wealth.
Customer and Supplier Intimacy
 When a business really knows its customers and serves them well, the

customers generally respond by returning and purchasing more.

 This raises revenues and profits.

 Likewise with suppliers, the more a business engages its suppliers, the better

the suppliers can provide vital inputs.

 This lowers costs. How to really know your customers or suppliers is a

central problem for businesses with millions of offline and online customers.
Improved Decision Making
 Many business managers operate in an information

fog bank, never really having the right information

at the right time to make an informed decision.
 Instead, managers rely on forecasts, best guesses,

and luck. In the past decade, information systems

and technologies have made it possible for
managers to use real-time data from the
marketplace when making decisions.
Competitive Advantage
 When firms achieve one or more of these business objectives—

operational excellence;new products, services, and business models;

customer/supplier intimacy;and improved decision making—
chances are they have already achieved a competitive advantage.
 Doing things better than your competitors, charging less for superior

products, and responding to customers and suppliers in real time all

add up to higher sales and higher profits that your competitors
cannot match.
 Apple Inc., Walmart, and the Mandarin Group are industry leaders

because they know how to use information systems for this purpose.
FUNCTIONS OF AN INFORMATION SYSTEM
SYSTEMS APPROACH

 The system approach to a business organization implies a approach to

the study of inter-relationships of sub-systems of an organization in
view of the objectives set by the organization.
 Thus, this requires an integrated approach which could reduce the
conflict among different sub-systems and modify the objectives of
these sub-systems in order to arrive at an optimum solution to the
problems which may arise in the achievement of the main objectives
or in the working of the whole system.
 The system approach is based on the generalization that all things are
inter-related and inter-dependent with one another. A system is made
up of related and dependent elements that form a unique system. A
system is simply an assemblage of things to forming a single unit.
System approach as planning, Organizing and Controlling in MIS

System approach in planning:

 Planning is an essential feature of management.

Planning involves deciding what needs to be done,

who needs to do it, when to do it, and how to do it
in advance. Two phases are part of the preparation
process:
 Developing the strategic.
 Formulating the steps which are necessary to accomplish
the plan, timing and expense.
System Approach in Organizing:
 Organizing is important for managers because it leads to successful

group action. It also helps to keep people working together. The

following points are shows about the System Approach in
Organizing -
 The good structure of the organization as outlined in the policies and

procedure.
 Informal organizing.
 The individual as a device
 The method of organizational contact.
 The power chain.
 The functional method.
 The system for management process
System Approach in Controlling
 Controlling is necessary because the outcome of the

desire needs to be achieved. The most popular

approach consists of a two-step procedure.
 Setting a performance standard requires the quality of

performance we need. Quantitative or qualitative

maybe these parameters.
 Performance assessment against this standard is

important to assess performance against standards

once a standard has been developed.
Systems Approach features
 A system consists of elements that interact. It is a set of interrelated and

inter-dependent components organized in a way that generates a cohesive

whole.
 In their inter-relationships, rather than in isolation from each other, the

different subsystems should be examined.

 There is a boundary in an organizational structure that defines which

parts are internal and which are external.

 In a vacuum, there is no device. It receives data, materials and energy as

inputs from other systems. Inside a system, these inputs undergo a phase
of transformation and exit the system as an output to other systems.
 As it is sensitive to its environment, an organization is a dynamic

structure. In his climate, he is vulnerable to change.

Information System Architecture

 An information system architecture is a formal definition

of the business processes and rules, systems structure,
technical framework, and product technologies for a
business or organizational information system.
An information system architecture usually consists of four
layers:
 Business process architecture,

 Systems architecture,

 Technical architecture,

 Product delivery architecture.

 The architecture of an information system encompasses the hardware
and software used to deliver the solution to the final consumer of
services. 
 The architecture is a description of the design and contents of a
computerized system.
 If documented, the architecture may include information such as a
detailed inventory of current hardware, software and networking
capabilities; a description of long-range plans and priorities for future
purchases, and a plan for upgrading and/or replacing dated equipment
and software.
 The architecture should document: What data is stored?, How does the
system function?, Where are components located?, When do activities
and events occur in the system?, and Why does the system exist?
 Information system architecture is a blue print used to develop,
implement, maintain the elements in the organization.
 Business architecture is a blue print of enterprise, that provides a
common understanding of the organization and is used to align
objectives and demands.
 A System architecture is the conceptual model that defines the
structure, behavior and more views of the systems. here we set the
conventions, rules and standards employed in a system.
 A Technical architecture defines all the Technical requirements like
operational, performance, etc.
 Product delivery architecture as the information regarding
the delivery of the product, maintenance, etc.
Example for the system Architecture:
Quantitative Techniques and Management
Information Systems interfacing.

Meaning and Definition:

 Quantitative techniques may be defined as those techniques

which provide the decision makes a systematic and powerful

means of analysis, based on quantitative data.
 It is a scientific method employed for problem solving and

decision making by the management.

 With the help of quantitative techniques, the decision maker is

able to explore policies for attaining the predetermined

objectives.
 In short, quantitative techniques are inevitable in decision-

making process.
Classification of Quantitative
Techniques:

 There are different types of quantitative techniques.

We can classify them into three categories. They
are:
1. Mathematical Quantitative Techniques
2. Statistical Quantitative Techniques
3. Programming Quantitative Techniques
Mathematical Quantitative Techniques:

  A technique in which quantitative data are used along with the principles
of mathematics is known as mathematical quantitative techniques.
 Mathematical quantitative techniques involve:

 1. Permutations and Combinations:

 Permutation means arrangement of objects in a definite order. The
number of arrangements depends upon the total number of objects
and the number of objects taken at a time for arrangement.
 The number of permutations or arrangements is calculated by using

the formula.
Combination means selection or grouping objects without
considering their order.
 The number of combinations is calculated by using the formula.
2. Set Theory:-
Set theory is a modern mathematical device which solves various types of critical problems.
3. Matrix Algebra:
Matrix is an orderly arrangement of certain given numbers or symbols in rows and columns. It is
a mathematical device of finding out the results of different types of algebraic operations on the
basis of the relevant matrices.
4. Determinants:
It is a powerful device developed over the matrix algebra. This device is used for finding out
values of different variables connected with a number of simultaneous equations.
 5. Differentiation:
 It is a mathematical process of finding out changes in the dependent variable with reference to a
small change in the independent variable.
 6. Integration:
Integration is the reverse process of differentiation.
 7. Differential Equation:
It is a mathematical equation which involves the differential coefficients of the dependent
variables.
Statistical Quantitative Techniques:

     Statistical techniques are those techniques which

are used in conducting the statistical enquiry
concerning to certain Phenomenon.
 They include all the statistical methods beginning
from the collection of data till interpretation of
those collected data.
Statistical techniques involve:
1.Collection of data:
 One of the important statistical methods is collection of data. There are different methods
for collecting primary and secondary data.
2. Measures of Central tendency, dispersion, skewness and Kurtis
 Measures of Central tendency is a method used for finding he average of a series while
measures of dispersion used for finding out the variability in a series. Measures of
Skewness measures asymmetry of a distribution while measures of Kurtis measures the
flatness of peakedness in a distribution.
3. Correlation and Regression Analysis:
 Correlation is used to study the degree of relationship among two or more variables. On
the other hand, regression technique is used to estimate the value of one variable for a
given value of another.
4. Index Numbers:
Index numbers measure the fluctuations in various Phenomena like price, production etc
over a period of time, They are described as economic barometres.
5. Time series Analysis:
Analysis of time series helps us to know the effect of factors which are responsible for
changes:
6. Interpolation and Extrapolation:
Interpolation is the statistical technique of estimating under certain assumptions, the missing
figures which may fall within the range of given figures. Extrapolation provides estimated
figures outside the range of given data.
7. Statistical Quality Control
Statistical quality control is used for ensuring the quality of items manufactured. The
variations in quality because of assignable causes and chance causes can be known with the
help of this tool. Different control charts are used in controlling the quality of products.
8. Ratio Analysis:
Ratio analysis is used for analyzing financial statements of any business or industrial
concerns which help to take appropriate decisions.
9. Probability Theory:
Theory of probability provides numerical values of the likely hood of the occurrence of
events.
10. Testing of Hypothesis
Testing of hypothesis is an important statistical tool to judge the reliability of inferences
drawn on the basis of sample studies.
Programming Techniques:

 Programming techniques are also called operations research techniques.

 Programming techniques are model building techniques used by decision makers in

modern times. Programming techniques involve:

Linear Programming:
Linear programming technique is used in finding a solution for optimizing a given
objective under certain constraints.
2. Queuing Theory:
Queuing theory deals with mathematical study of queues. It aims at minimizing cost
of both servicing and waiting.
3. Game Theory:
Game theory is used to determine the optimum strategy in a competitive situation.
4. Decision Theory:
This is concerned with making sound decisions under conditions of certainty, risk and
uncertainty.
5. Inventory Theory:
Inventory theory helps for optimizing the inventory levels. It focuses on minimizing
cost associated with holding of inventories.
6. Net work programming:
It is a technique of planning, scheduling, controlling, monitoring and co-ordinating large and
complex projects comprising of a number of activities and events. It serves as an instrument in
resource allocation and adjustment of time and cost up to the optimum level. It includes CPM,
PERT etc.
 7. Simulation:
It is a technique of testing a model which resembles a real life situations
 8. Replacement Theory:
It is concerned with the problems of replacement of machines, etc due to their deteriorating
efficiency or breakdown. It helps to determine the most economic replacement policy.
 9. Non Linear Programming:
It is a programming technique which involves finding an optimum solution to a problem in
which some or all variables are non-linear.
 10. Sequencing:
Sequencing tool is used to determine a sequence in which given jobs should be performed by
minimizing the total efforts.
11. Quadratic Programming:
Quadratic programming technique is designed to solve certain
problems, the objective function of which takes the form of a
quadratic equation.
12. Branch and Bound Technique
It is a recently developed technique. This is designed to solve
the combination problems of decision making where there are
large number of feasible solutions. Problems of
plant location, problems of determining minimum cost of
production etc. are examples of
combination problems.
Functions of Quantitative Techniques:

 The following are the important functions of

quantitative techniques:
1. To facilitate the decision-making process
2. To provide tools for scientific research
3. To help in choosing an optimal strategy
4. To enable in proper deployment of resources
5. To help in minimizing costs
6. To help in minimizing the total processing time
required for performing a set of jobs
USES OF QUANTITATIVE
TECHNIQUES

 Business and Industry

Quantitative techniques render valuable services in the field of
business and industry. Today, all decisions in business and industry
are made with the help of quantitative techniques.
    Some important uses of quantitative techniques in the field of
business and industry are given below:
1. Quantitative techniques of linear programming is used for optimal
allocation of scarce resources in the problem of determining product
mix
2. Inventory control techniques are useful in dividing when and how
much items are to be purchase so as to maintain a balance between
the cost of holding and cost of ordering the inventory
 3. Quantitative techniques of CPM, and PERT helps in
determining the earliest and the latest times for the events and
activities of a project. This helps the management in proper
deployment of resources.
4. Decision tree analysis and simulation technique help the
management in taking the best possible course of action under
the conditions of risks and uncertainty.
5. Queuing theory is used to minimize the cost of waiting and
servicing of the customers in queues.
6. Replacement theory helps the management in determining
the most economic replacement policy regarding replacement
of an equipment.
Limitations of Quantitative Techniques:

 Even though the quantitative techniques are inevitable in decision-

making process, they are not free from short comings. The
following are the important limitations of quantitative techniques:
1. Quantitative techniques involves mathematical models,
equations and other mathematical expressions
2. Quantitative techniques are based on number of assumptions.
Therefore, due care must be ensured while using quantitative
techniques, otherwise it will lead to wrong conclusions.
3. Quantitative techniques are very expensive.
4. Quantitative techniques do not take into consideration
intangible facts like skill, attitude etc.
5. Quantitative techniques are only tools for analysis and decision-
making. They are not decisions itself.