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Solution Case Study1

The document discusses using a management information system (MIS) in a restaurant. It describes how an MIS can support strategic, managerial, and operational decision making. It provides examples of how online order processing provides benefits like faster order times and out of stock notifications. The summary discusses making the MIS more complete by supporting efficiency and providing decision support. Finally, it emphasizes the need for the MIS to highlight changes and share information across the organization.

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vaishalimogha24
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26 views3 pages

Solution Case Study1

The document discusses using a management information system (MIS) in a restaurant. It describes how an MIS can support strategic, managerial, and operational decision making. It provides examples of how online order processing provides benefits like faster order times and out of stock notifications. The summary discusses making the MIS more complete by supporting efficiency and providing decision support. Finally, it emphasizes the need for the MIS to highlight changes and share information across the organization.

Uploaded by

vaishalimogha24
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Case Study -1 By: Vaishali Mogha

Solution of Management Information System in Restaurant Case Study:

1. A management information system (MIS) is an organized combination of people,


hardware, communication networks and data sources that collects, transforms and
distributes information in an organization. An MIS helps decision making by
providing timely, relevant and accurate information to managers. The physical
components of an MIS include hardware, software, database, personnel and
procedures.

Management information is an important input for efficient performance of various


managerial functions at different organization levels. The information system
facilitates decision making. Management functions include planning, controlling and
decision making. Decision making is the core of management and aims at selecting
the best alternative to achieve an objective. The decisions may be strategic, tactical or
technical. Strategic decisions are characterized by uncertainty. They are future
oriented and relate directly to planning activity. Tactical decisions cover both
planning and controlling. Technical decisions pertain to implementation of specific
tasks through appropriate technology. Sales region analysis, cost analysis, annual
budgeting, and relocation analysis are examples of decision-support systems and
management information systems.

There are 3 areas in the organization. They are strategic, managerial and operational
control.

Strategic decisions are characterized by uncertainty. The decisions to be made in the


area of strategic planning are future oriented and relate directly to planning activity.
Here basically planning for future that is budgets, target markets, policies, objectives
etc. is done. This is basically a top level where up-to-the minute information on the
food items ordered and breaks out percentages showing sales of each item versus
total sales is provided. The top level where strategic planning is done compares the
weekly sales totals versus food costs, allowing planning for tighter cost controls.
Executive support systems function at the strategic level, support unstructured
decision making, and use advanced graphics and communications. Examples of
executive support systems include sales trend forecasting, operating plan
development, budget forecasting, profit planning, and manpower planning.

The decisions to be made in the area of managerial control are largely dependent
upon the information available to the decision makers. It is basically a middle level
where planning of menus is done and whenever an order is voided, the reasons for the
void are keyed in which later helps in management decisions, especially if the voids
are related to food or service. The managerial control that is middle level also gets
customer feedback and is responsible for customer satisfaction.
Case Study -1 By: Vaishali Mogha

The decisions to be made in the area of operational control pertain to implementation


of specific tasks through appropriate technology. This is basically a lower level where
the waiter takes the order and enters it online via one of the six terminals located in
the restaurant dining room and the order is routed to a printer in the appropriate
preparation area. The item’s ordered list and the respective prices are automatically
generated. The cooks send ‘out of stock’ message when the kitchen runs out of a food
item, which is basically displayed on the dining room terminals when waiter tries to
order that item. This basically gives the waiters faster feedback, enabling them to
give better service to the customers. Transaction processing systems function at the
operational level of the organization. Examples of transaction processing systems
include order tracking, order processing, machine control, plant scheduling,
compensation, and securities trading.

The information required to make such decision must be such that it highlights the
trouble spots and shows the interconnections with the other functions. It must
summarize all information relating to the span of control of the manager. The
information required to make these decisions can be strategic, tactical or operational
information.

Advantages of an online computer system:

• Eliminates carbon copies


• Waiters’ handwriting issues
• Out-of-stock message
• Faster feedback, helps waiters to service the customers
Advantages to management:

• Sales figures and percentages item-wise


• Helps in planning the menu
• Cost accounting details

2. If the management provides sufficient incentive for efficiency and results to their
customers, it would make the system a more complete MIS and so the MIS should
support this culture by providing such information which will aid the promotion of
efficiency in the management services and operational system. It is also necessary to
study the keys to successful Executive Information System (EIS) development and
operation. Decision support systems would also make the system a complete MIS as
it constitutes a class of computer-based information systems including knowledge-
based systems that support decision-making activities. DSSs serve the management
Case Study -1 By: Vaishali Mogha

level of the organization and help to take decisions, which may be rapidly changing
and not easily specified in advance.

Improving personal efficiency, expediting problem solving (speed up the progress of


problems solving in an organization), facilitating interpersonal communication,
promoting learning and training, increasing organizational control, generating new
evidence in support of a decision, creating a competitive advantage over competition,
encouraging exploration and discovery on the part of the decision maker, revealing
new approaches to thinking about the problem space and helping automate the
managerial processes would make the system a complete MIS rather than just doing
transaction processing.

3. The management system should be an open system and MIS should be so


designed that it highlights the critical business, operational, technological and
environmental changes to the concerned level in the management, so that the action
can be taken to correct the situation. To make the system a success, knowledge will
have to be formalized so that machines worldwide have a shared and common
understanding of the information provided. The systems developed will have to be
able to handle enormous amounts of information very fast.

An organization operates in an ever-increasing competitive, global environment.


Operating in a global environment requires an organization to focus on the efficient
execution of its processes, customer service, and speed to market. To accomplish
these goals, the organization must exchange valuable information across different
functions, levels, and business units. By making the system more formal, the
organization can more efficiently exchange information among its functional areas,
business units, suppliers, and customers.

As the transactions are taking place every day, the system stores all the data which
can be used later on when the hotel is in need of some financial help from financial
institutes or banks. As the inventory is always entered into the system, any frauds can
be easily taken care of and if anything goes missing then it can be detected through
the system.

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