A V V S PRASAD
MBA.,MA,M.PhIl.,(Ph.D)
ASSOCIATE PROFESSOR
MIS
MRP
JIT
TQM
SIX SIGMA
CMM
BPO
ERP
BPR
BENCH MARKING
BALANCED SCORE CARD

MIS
 What is MIS?
 MIS is the use of information technology, people,
and business processes to record, store and process
data to produce information that decision makers
can use to make day to day decisions.
 MIS is the acronym for Management Information
Systems. In a nutshell, MIS is a collection of
systems, hardware, procedures and people that all
work together to process, store, and produce
information that is useful to the organization.

The need for MIS
 The following are some of the justifications for
having an MIS system
 Decision makers need information to make
effective decisions. Management Information
Systems (MIS) make this possible.
 MIS systems facilitate communication within
and outside the organization – employees
within the organization are able to easily access
the required information for the day to day
operations.

The need for MIS: cont
 Facilitates such as Short Message Service
(SMS) & Email make it possible to
communicate with customers and suppliers
from within the MIS system that an
organization is using.
 Record keeping – management information
systems record all business transactions of
an organization and provide a reference
point for the transactions.

Components of MIS
 The major components of a typical management
information system are
 People – people who use the information system
 Data – the data that the information system records
 Business Procedures – procedures put in place on how
to record, store and analyze data
 Hardware – these include servers, workstations,
networking equipment, printers, etc.
 Software – these are programs used to handle the
data. These include programs such as spreadsheet
programs, database software, etc.

MATERIAL REQUIREMENTS
PLANNING (MRP)
 Material requirements planning (MRP) is a system for
calculating the materials and components needed to
manufacture a product.
 It consists of three primary steps: taking inventory of
the materials and components on hand, identifying
which additional ones are needed and then scheduling
their production or purchase.

OBJECTIVES OF MRP
 To ensure the availability of materials and
products for production and delivery to the
customer.
 To maintain lowest possible level of
inventory
 To plan manufacturing activities , delivery
schedules and purchasing activities.

JIT
 What is 'Just In Time’
 JIT' The just-in-time inventory system is a
management strategy that aligns raw-material orders
from suppliers directly with production schedules.
 Companies use this inventory strategy to increase
efficiency and decrease waste by receiving goods only
as they need them for the production process, which
reduces inventory costs.
 This method requires producers to forecast demand
accurately.

Total Quality Management
 (TQM • Total Quality Management (TQM) describes a
management approach to long-term success through
customer satisfaction.
 In a TQM effort, all members of an organization
participate in improving processes, products, services,
and the culture in which they work.


Six Sigma (6σ)
 Six Sigma (6σ) is a set of techniques and tools for process
improvement.
 It was introduced by engineer Bill Smith while working at
Motorola in 1986.
 Jack Welch made it central to his business strategy at
General Electric in 1995.
 A six sigma process is one in which 99.9999998027% of all
opportunities to produce some feature of a part are
statistically expected to be free of defects.
 Six Sigma strategies seek to improve the quality of the
output of a process by identifying and removing the causes
of defects and minimizing variability in manufacturing and
business processes.

SIX SIGMA Contd…
 It uses a set of quality management methods, mainly
empirical, statistical methods, and creates a special
infrastructure of people within the organization who
are experts in these methods.
 Each Six Sigma project carried out within an
organization follows a defined sequence of steps and
has specific value targets
 for example: reduce process cycle time, reduce
pollution, reduce costs, increase customer satisfaction,
and increase profits.

CMM
 What is Capability Maturity Model?
 The Software Engineering Institute (SEI) Capability
Maturity Model (CMM) specifies an increasing series
of levels of a software development organization.
 The higher the level, the better the software
development process, hence reaching each level is an
expensive and time-consuming process.

CMM Contd…
 Levels Briefly eplained CMM's Five Maturity Levels of
Software Processes:
 At the initial level, processes are disorganized Success
is likely to depend on individual efforts, and is not
considered to be repeatable, because processes would
not be sufficiently defined and documented to allow
them to be replicated.
 At the repeatable level, basic project management
techniques are established, and successes could be
repeated, because the requisite processes would have
been made established, defined, and documented.

CMM Contd…
 At the defined level, an organization has developed its
own standard software process through greater
attention to documentation, standardization, and
integration.
 At the managed level, an organization monitors and
controls its own processes through data collection and
analysis.
 At the optimizing level, processes are constantly being
improved through monitoring feedback from current
processes and introducing innovative processes to
better serve the organization's particular needs.

CMM Contd…
 Level One :Initial - The software process is
characterized as inconsistent, and occasionally even
chaotic.
 Defined processes and standard practices that exist are
abandoned during a crisis.
 Success of the organization majorly depends on an
individual effort, talent, and heroics.
 The heroes eventually move on to other organizations
taking their wealth of knowledge or lessons learnt with
them.

 Level Two:
 Repeatable - This level of Software Development
Organization has a basic and consistent project
management processes to track cost, schedule, and
functionality.
 The process is in place to repeat the earlier successes
on projects with similar applications. Program
management is a key characteristic of a level two
organization. •

 Level Three:
 Defined - The software process for both management
and engineering activities are documented,
standardized, and integrated into a standard software
process for the entire organization and all projects
across the organization use an approved, tailored
version of the organization's standard software process
for developing, testing and maintaining the
application.

CMMContd… •
 Level Four:
 Managed - Management can effectively control the
software development effort using precise
measurements. At this level, organization set a
quantitative quality goal for both software process and
software maintenance. At this maturity level, the
performance of processes is controlled using statistical
and other quantitative techniques, and is
quantitatively predictable.

CMM Contd…
 Level Five:
 Optimizing - The Key characteristic of this level is
focusing on continually improving process
performance through both incremental and innovative
technological improvements. At this level, changes to
the process are to improve the process performance
and at the same time maintaining statistical
probability to achieve the established quantitative
process-improvement objectives.

SCM
 supply chain management (SCM)
 The management of the flow of goods and services ,
involves the movement and storage of raw materials, of
work-in-process inventory, and of finished goods from
point of origin to point of consumption.
 Interconnected or interlinked networks, channels and
node businesses combine in the provision of products
and services required by end customers in a supply
chain
.

Enterprise resource planning (ERP)
 ERP • Enterprise resource planning (ERP) is the
integrated management of core business processes,
often in real-time and mediated by software and
technology.
 ERP is usually referred to as a category of business-
management software — typically a suite of integrated
applications—that an organization can use to collect,
store, manage, and interpret data from these many
business activities.
 ERP provides an integrated and continuously updated
view of core business processes using common
databases maintained by a database management
system.

ERP Contd…,
 ERP systems track business resources—cash, raw
materials, production capacity—and the status of
business commitments: orders, purchase orders, and
payroll.
 The applications that make up the system share data
across various departments (manufacturing,
purchasing, sales, accounting, etc.) that provide the
data.
 ERP facilitates information flow between all business
functions and manages connections to outside
stakeholders.

Performance Management
 Keeping the Right People
 Performance management is a process by which
managers and employees work together to plan,
monitor and review an employee’s work objectives and
overall contribution to the organization.
 More than just an annual performance review,
performance management is the continuous process of
setting objectives, assessing progress and providing on-
going coaching and feedback to ensure that employees
are meeting their objectives and career goals.

BPO
 What does Business Process Outsourcing (BPO) mean?
 Business process outsourcing (BPO) is the contracting of
non-primary business activities and functions to a third-
party provider.
 BPO services include payroll, human resources (HR),
accounting and customer/call center relations. BPO is
also known as information technology enabled services
(ITES).
 BPO includes back office outsourcing(billing and
purchasing) and front office outsourcing(marketing and
technical support).

BPR
 Business process reengineering is the act of recreating
a core business process with the goal of improving
product output, quality, or reducing costs.
 It is also called business process redesign
 Business Process Reengineering involves the radical
redesign of core business processes to achieve
dramatic improvements in productivity, cycle times
and quality.
 In Business Process Reengineering, companies start
with a blank sheet of paper and rethink existing
processes to deliver more value to the customer.

 They typically adopt a new value system that places
increased emphasis on customer needs.
 Companies reduce organizational layers and eliminate
unproductive activities in two key areas.
 First, they redesign functional organizations into
cross-functional teams.
 Second, they use technology to improve data
dissemination and decision making.

BENCHMARKING
 The search for best practice can exist inside a particular
industry and also in other industries - are there lessons to be
learned from other industries?
 The Benchmarking Process Benchmarking involves looking
outward (outside a particular business, organisation,
industry, region or country) to examine how others achieve
their performance levels, and to understand the processes
they use.
 In this way, benchmarking helps explain the processes
behind excellent performance. When lessons learned from a
benchmarking exercise are applied appropriately, they
facilitate improved performance in critical functions within
an organisation or in key areas of the business.

BENCHMARKING contd…,
 The application of benchmarking involves four key
steps:
 Understand in detail existing business processes
Analyse the business processes of others
 Compare own business performance with that of
others analysed
 Implement the steps necessary to close the performance
gap Benchmarking should not be considered a one-off
exercise.
 To be effective, it must become an integral part of an
ongoing improvement process, the goal being to abreast
of ever-improving best practice.

BALANCE SCORECARD
 What is a 'Balanced Scorecard' A balanced scorecard is
a performance metric used in strategic management to
identify and improve various internal functions of a
business and their resulting external outcomes.
 It is used to measure and provide feedback to
organizations.
 Data collection is crucial to providing quantitative
results, as the information gathered is interpreted by
managers and executives, and used to make better
decisions for the organization

Four balanced scorecard
perspectives
 The balanced scorecard approach examines
performance from four perspectives.
 Financial analysis, which includes measures such as
operating income, sales growth and return on
investment.
 Customer analysis, which looks at customer satisfaction
and retention.
 Internal analysis, which looks at how business processes
are linked to strategic goals.
 Learning and growth analysis, which assesses employee
satisfaction and retention, as well as information
system performance.