An increase in company size results in an increase in information collection, processing and distribution. Hence it becomes necessary to handle many customer accounts and production records with many more interrelationships. In addition to increased information records, information needs and associated difficulties there arises the problem of delegation of authority and responsibilities.
Basic Information System
The basic functions of the company such as production, sales, finance and management functions will not change.
However the introduction of an MIS will facilitate fantastic improvement in the information communications network. The objective of developing or improving a management information system can be stated as below:
- To provide the type of information environment that will integrate the basic operating functions and
- To provide management with access to information relative to complex activities in decentralized organizations.
Also, as the company grows and becomes more complex much of the basic functions and information needs remain the same. Some of these internal information needs are shown as below:
1. Accounting Control
2. Plans and budgets
3. Payroll by hourly and salaried groups
4. Inventory of materials, in-process and finished goods
5. Sales by product, salesman , customer and Area
6. Purchasing records, vendors, commitments
7. Distribution-Transportation and warehousing
8. Production by product, customer, cost, overruns and backlog
9. Engineering-new products, schedules, equipment, costs
10. R&D etc. etc.
Although the current trend is to develop IS (with computer applications) in the areas other than the traditional areas, the bulk of information systems lie in the following categories :
Over time, a typical manufacturing company has developed the major information systems shown above. These systems are not separate and distinct; they connect interact and otherwise tie the subsystems of the organization together through the medium of information.
source : http://www.uh.edu/~mrana/try.htm
source : http://www.uh.edu/~mrana/try.htm
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