Tools for Planning

Tools for planning:

•        Creativity

•        Systems Approach

•        Sensitivity Analysis

•        Modelling

Creativity:

•        Ability to generate number of ideas rapidly.

•        Ability to change quickly from one frame of reference to another.

•        Originality in interpreting an event and generating different views on the situation.

•        Ability to handle with clarity and ease a complex relationship of various factors in a given situation.

Systems approach:

•        It uses all the areas and branches of knowledge.

•        It follows a scientific analysis to identify the problem.

•        It uses a model of complex situation to handle the problem.

•        It weighs cost against benefit for assessment of alternatives.

•        It deals with problems where time context is futuristic.

•        It considers the environment and its impact on the problem situation.

•        Every solution is tested on the grounds of rationality and feasibility and accepts a given criterion for selection of most preferred alternatives.

•        It uses operation research models if the problem is well defined.

Sensitivity analysis:

•        It helps to test validity of the solution in variable condition.

•        The problem situation is handled with certain assumptions and conditions.

•        If various factors are involved, the sensitivity analysis helps to assess the criticality of the factor against the impact it make on that solution.

•        The sensitivity analysis helps to test the validity of the optimal solution under changed conditions.

•         The sensitivity analysis helps to test the solution on the principal of utility.

Modeling:

•        A model is meaningful representation of a real situation on a mini scale, where only the significant factors of the situations are highlighted.

•        There are several types of models

•        Physical: house, park, or a sport complex.

•        Mathematical: break even analysis, linear programming, queuing, network.

•        A complex situation is represented using variables, constants and parameters which play significant role in that situation.

•        A model could be static of dynamic.

Dimensions of Planning

•        Time

•        Long range or short range.

•        Entity

•        The production in terms of quantity or new product. It could be about finance, marketing, capacity, manpower or research and development.

•        Organization

•        The corporate plan could deal with the company as whole.

•        Elements

•        The plan begins with the mission and goal which the organization would like to achieve.

•        Characteristics

•        The choice of characteristics is a matter of convenience helping to communicate to everybody concerned in the organization and for easy understanding in execution.

•        The typical characteristics of a corporate plan are goals, the resources, the important milestones, the investment details and a variety of schedules.

Concept of corporate planning in MIS

•        A plan is predetermined course of action to be taken in the future.

•        The goals and objectives that a plan is supposed to achieve, are the pre-requisites of the plan.

•        Planning is a dynamic process. As the future becomes present reality, the course of action decided earlier may require a change.

•        Planning involves a chain of decisions, one dependent on the other, since it deals with a long term period.

•        Long Range

•        A period of five or more years.

•        Deals with resource selection, acquisition, allocation.

•        Short Range

•        For one year at most.

DSS vs. MIS

DSS is more targeted than MIS system. MIS system provides managers with routine flows of data and assist in the general control of the organization. But, the DSS provides assistance in special discussion or class of decision. DSS provides end-user on control of data, tools, and decisions. MIS is still largely dominated by professionals. Users receive information from a processional staff of analysts, designers, and programmers. In terms of objectives. MIS focuses on structured information flows to middle manager. DSS is aimed at top managers and middle mangers, with emphasis on change, flexibility, and quick responds. With DSS is less of an effort to link users to structured information flows and a correspondingly grater reanalysis and deign. However, MIS usually follows graphics. Both DSS and MIS rely on professional analysis and deign. However, MIS usually follows a traditional system development methodology, whereas, DSS system consciously interactive, are never frozen and in a sense are never finished.

DSS provides integrated tools, data, models, and languages to users. MIS proves structured information to end users. DSS established what tools are used in the decision process. MIS identify information requirements, DSS are interactive process, and MIS deliver system based on the frozen requirements.

DSS Overview

 

DSS is often isolated form the organization’s TPS, MIS and EIS. The main components of DSS are the model base, the DSS database, and DSS software system and sure interface. 

·       Database Management System (DBMS): To solve a problem the necessary data may come from internal or external database. In an organization, internal data are generated by a system such as TPS and MIS. External data come from a variety of sources such as newspapers, online data services, databases (financial, marketing, human resources).

·       Model Management System: It stores and accesses models that managers use to make decisions. Such models are used for designing manufacturing facility, analyzing the financial health of an organization, forecasting demand of a product or service, etc.

Support Tools: Support tools like online help; pulls down menus, user interfaces, graphical analysis, error correction mechanism, facilitates the user interactions with the system.

MIs Vs Data Procesing

Data processing is term used to describe the series of actions taken to provide useful information from data. Data processing systems, whether manual, mechanical or electronic are used to produce the management information system for running the organization.

Data is the term used to describe the basic fact regarding an organization’s activities which are collected and input to a system.

The facts are to produce useful output or information. The process of output or information is also known as reporting system.

Definition. Data Processing: The execution of a systematic sequence of operations performed upon data to transform it into information.

Data processing involves a number of transaction and file maintenance in order to provide a database for generating and providing information to various users at the management levels. A transaction is an activity like making a purchase or sales, manufacturing product or recruiting employees. It may be internal in nature and can also involve an external agency. The records to be transacted can be routed through the following ways.

1.    Direct transaction to the action (automatic action).
2.    Report or explain the performance (through the information report).
3.    Communicate the information about the issue (ad hoc support).

The other processing activities are master file maintenance, report generation inquiry and creating support applications. The output of these processing functions provides the base to other management activities. They are routine and are in a programmed form.

A MIS is more comprehensive than data processing with only process transaction and produce reports. Before the advent of computers, data processing was performed manually or with simple machines. MIS encompasses processing in support of a wider range of organizational functions and management process. The system also includes transaction processing. Which illustrated the computer-based data processing?

It is clear from the diagram that the input data has entered into the system and formed as database, and it has again transaction in to output for the decision makers as information.

The important difference between MIS and routine data process are the capability to provide analysis, planning and decision-making support. An MIS orientation means users have access to decision models and methods for querying the data set. Information resources are utilized so as to improve decision making and achieve improved organizations effectiveness.