chp 12 MANAGEMENT LEVELS Top Management - Top managers are concerned with long-range, or strategic, planning and decisions. Middle Management - Middle level managers makes tactical decisions to implement the strategic goals of the organization. Supervisory Management – Supervisory managers makes operational decisions – predictable decisions that can be made by following the well defined set of routine procedures. Type Of Information Unstructured information - is summarized, less current, highly subjective, concerned with future events, records a broad range of facts, and covers activities outside as well as inside an organization. Semi structured information - includes some structured information and unstructured information. Structured information – is detailed, current, not subjective, concerned with past events, record a narrow range of facts and covers an organization’s internal activities. Computer – Base Information Systems Lower Managers: TPSs – Transaction Processing Systems. Middle Managers: MISs and DSSs – Management Information Systems and Decision Support Systems. Top managers: ESSs - Executive Support Systems For all levels: including management: Office automation systems (OASs) and Expert systems (Ess). Transaction Processing System (TPS) is a computer-based information system that keeps track of the transactions needed to conduct business. e.g. Input & output – transaction of data, bills, and orders inventory levels, paychecks and so on. Day-to-day matters, detail report about routine activities, Basis of MIS and DSS Management Information system (MIS) is computer-based information that uses data recorded by TPS as input into programs that produce routine reports as output. Inputs: Processed transaction data such as bills, orders, paychecks plus other internal data. Output: summarized structured reports budget summaries production schedules. MIS is intended principally to assist middle managers and help them with tactical decision. Produces several kinds of reports: summery of exception (out of ordinary data), periodic (regular schedule daily weekly, monthly, quarterly, or annual report), demand (unscheduled demand). Data For Management Information 1. Financial Data • Billing • A/c Receivable • A/c Payable • Capital goods • Taxes • Inventory • Investment 2. Research Data • Advertising • Product distribution • Product development • Investment Planning • Sales Forecasting 3. Production and Sales Data • Purchasing • Sales • Orders • Inventory Control 4. Personal Data • Wages • Recruiting • Overtime • Pensions Organizing Data Into Reports There are three types of reports. 1. Detailed Reports Examine day-to-day operations. Description of items, stock on hand, stock on order, and sales. 2. Summary Reports Day-to-day operational data into totals and averages. It can be make for weekly, monthly and yearly base. 3. Exception Reports Exception reports focus on situation needing special attention. In this case, each contributor could receive a personal letter from the university president. Decision Support System (DSS) is computer-based information system that provides a flexible tool for analysis and helps managers to focus on the future. Input and output: Input includes internal data such as summarized report and processed transaction data and also data that are external to the organization. The outputs are demand reports on which a top manager can make decisions about unstructured problems. A DSS is intended principally to assist middle managers in making tactical decisions. The key attribute of a DSS is that it uses model. A model is a mathematical representation of a real system. The model use a DSS database, which draws on the TPS, MIS files as well as external data such as stock reports, government reports and national and international news. The system is accessed through DSS software. Executive Support Systems (ESS) is an easy-to- use DSS made especially for top managers, it specifically supports strategic decisions making. An ESS is also called an Executive Information System (EIS). Office automation Systems (OASs) combines various technologies to reduce the manual labour required in operating an efficient office environment. Expert Systems: an expert system or knowledge-based system, is a set interactive computer programs that helps users solve problems that would otherwise requires the assistance of human experts. Expert Systems are created on the basis of knowledge collected on specific topics from human specialist, and they imitate the reasoning process of a human being. Both management and non-management personnel to solve specific problems such as to reduce production costs improve workers’ productivity or reduce environmental impact use expert systems. Artificial Intelligence is application of the computer technology to stimulate human thought & judgment (ES) it contains logic patterns for decision-making and probabilities of expected outcomes based on information available from experts Expert system has three components Knowledge Base Expert system goes far beyond the capabilities of database, it contains facts, figure, data relation ship and assumption that computer professional, working in domain experts combines to form a rules used for decision making in specific field. Inference Engine It drives the expert system, when new problem is generate, new conclusions are made by it & stored in knowledge base. User Interface The vast amount of rules, which exist in knowledge base and numerous decision-makings, are easy to access through user interface. Second Face Of Expert System One aspect of the expert system is caduceus, contain information about human diseases related symptoms & diagnostic tests in its knowledge base, mostly doctors enter queries based on symptoms of their patients Notice "Expert system will differ on a diagnose if not enough information is available.” Expert System S Approach Given Problem From Different Directions Forward Chaining Approach Backward Chaining Approach Backward Chaining Approach: It is consider as goal driven because in this approach system looks for the solutions by identifying possible cause, evidence supporting these results. Forward Chaining Approach: It is also known as second face of the expert system because by providing situation in this approach identify the problem example: as before used in by doctors in hospital to query the disease & symptoms, according to knowledge base & inference engine to match symptoms with successful treatment strategy example: in these approaches automobiles are also assembled. Artificial Intelligence (AI): is a group of related technologies used for developing machines to emulate human qualities such as learning, reasoning, communicating, seeing and hearing? Today the main area of AI are: Virtual Reality, Robotics, Natural Language Processing, Fuzzy Logic, Expert System, Neural Network, Genetic Algorithms. Virtual Reality: a computer generated artificial reality, projects a person into a sensation of three-dimensional space. Robotics: is the development and study of machines that can perform work normally done by people. Natural Language Processing: is the study of ways for computers to recognize and understand human language, whether is spoken or written form. Fuzzy Logic: is a method of dealing with imprecise data and uncertainty with problems that have many answers rather than one. Neural Networks: use physical electronic devices or software to mimic the neurological structure of human brain. Genetic Algorithms: is a program that uses Darwinian principles of random mutation to improve itself. Quality Control The routine checking of product or process to make sure it meets a predefined standard. Statistical process control (SPC) procedure helps the manager to eliminate the QC problems before they start. The idea behind SPC is to continuously improve a process until every defect is found and eliminated. Example: An increase in patient complaints about long waits may require a hospital to reevaluate admission procedure Total Quality Management (TQM) Total Quality Management is not limited to the manufacturing industry. It is an organization-wide management philosophy focusing on customer satisfaction through quality control of every service and product. MIS & DSS can rely on the popular productivity software to achieve goals to total quality management Materials Requirement Planning MRP has been successfully used in industry for some time. In this activity production schedules and current inventory for associated parts and materials become the data a computer system use to schedule purchase and delivery of additional supplies which frees an organization finance for other purpose such as advertising or research and development. Some advanced MRP system support recent manufacturing trends towards JUST-IN-TIME inventory JUST IN TIME: materials or parts arrive shortly before they are needed PRESENT EXAMPLE: JAPANISE AUTOMOTIVE INDUSTRY Start using this system in late 1950s. But in these days US & Japan both have gone for these both systems. Other manufactures are like to start to follow their lead Flexible Manufacturing MRP facilitate the development of flexible manufacturing, by using computer – controlled machining tools and assembly lines with just in time inventory a company could quickly change specifications of the product being manufactured or by the even change into different product Self - Directed Work Teams And Virtual Corporation It motivate organization to design computer systems that support group decision making, this type of employee work team is empowered to make management decisions that solve specific problems well this application is known as “GROUP DECISION SUPPORT SYSTEM” (GDSS) On larger scale the VIRTUAL COPORATION is design of tailor made company, It allows different departments to work as team that would provide product & services would be single organization COMPARISON BETWEEN ‘MIS’ AND ‘DSS’ MIS § Focuses on structured tasks and routine decisions. (e.g.; use of procedures, use of decision rules) § Emphasis on data storage. § Often only indirect access to data by managers. § Reliance on computer expert. § Access to data possibly requiring a wait for manager’s turn. § MIS manager not completely understanding the nature of data. § Emphasis on efficiency. DSS § Focuses on semi structured tasks, requiring managerial judgment. § Emphasis on data manipulation. § Direct data access by managers. § Reliance on manager’s own judgment. § Direct access to computer and data. § Manager knowing decision environment. § Emphasis on effectiveness.
Posted on: Sat, 20 Jul 2013 19:55:49 +0000
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