ROLE OF MANAGEMENT INFORMATION SYSTEM IN THE MANAGEMENT AND CONTROL OF INVENTORY
ABSTRACT
The intention of this project is to provide a good theoretical and practical knowledge which is applicable to organization and government on the role of management information system in the management and control of inventory. It is also design to educate on the importance of proper information to management so as to implement policies and strategies that has a lot of effect on the overall profitability of the organization.
CHAPTER ONE
1.0 INTRODUCTION
In every organization, no matter how small, proper information must be obtain by management for effective control of the organization. The management and control of inventory in an organization through management information system would enable growth in the firm, because without a good information system management is likely to experience difficulties in running the business. Management information system remains the system that aim at providing management with needed information an a regular basis. This call to mind the time value of information which implies that when the required information is received behind the period it will be used the information becomes useless. Mis tries to inform the manager on home to provide this information. The manager’s skills and trails to effective decision making, also came to bear on the effective and adaptive application of MIS in the management and control of inventory for organizational success.
MIS is not a new concept and the early days, it was essentially operated with a great deal of human efforts (manual) and infact the activities of the organization at the time were less challenging less complex and hence organizations were to that extent small sized. MIS in all circumstances organize in some meaningful way and can access the information in a reasonable amount of time. Data have remained raw, unanalyzed facts such as numbers names or quantities and as data they are relatively useless to managers. When data are analyzed and processed they becomes information which is used to manage and control inventory in the organization. So an MIS collects data and turns it into relevant information for managers which is used in reaching better and effective decisions. The formal system provided by computer base, MIS add to it rather than replace other sources of information available to managers and have in that direction improved his ability to monitoring and controlling organizational activities. Also adding to the effectiveness of the manger in making decisions, is not only the quality but also the quantity of information. Quantity is expressed in terms of relevance, accuracy completeness, reliability and timeless.
1.1 BACKGROUND TO STUDY
Organized collection of data for instance, an ordinary hand written address book is an example of a simple manually maintained database. Data procession into information upon which is to be used by management. Data is stored, analyzed compared, calculated and generally worked on to produce message in the termed information. Presenting data in a meaning and useful form. This could be by means of various kind of reports including stoical report such as sales analyses and control information such as budget variances reports. These functions, the MIS can performed either manually or with the aid of machines many organizations manually operate their management information system and due to the enormous quantity of data/ information are being used lot paper work is involved. In tray (documents) serve as in put for data while reports and statement sheets form the output. Filling cabinets where in records and files are kept, serve as the device for storing information. However owing to the fact that organization have grown in size the information flow has became so enormous that face- to- face.
Communications and even written memoranda can imager effective adequate communication or effective processing of data. The MIS of these organizations have this in recent times found it difficult to meet with the increasing demand being made on it for information. As a result, the manual means of operation is jam packed with scores data to be processed.Hence Delng and in accuracies in data collection and analysis. Delng often makes decision making to be an accurate. Also, there is the problem of misappropriation of important documents or even cases of stolen files. These lapses amongst others have put a question make an the manually assisted MIS hence solutions have been sought in the introduction of mechanization with particular inference to the use of management and control of inventory.
1.2 STATEMENT OF THE PROBLEM
Investigation has shown that before introduction management and control of inventory in the MIS department of NITEL PLC, Owerri the manually operated MIS indicated lapses which often beat the imagination of managers. Consequently the processes of decision making was almost reduced to guess work due to the absence of an effective and enduring information and retrieval system this affected the general productivity of NITEL. However the management and control of inventory of the MIS department not only was the problem of competence in decision- making achieved but also information storage and retrieval systems become effectively. But has NITEL PLC been fairing well with the management and control of inventory of its MIS? The colossal financial loss by the parastatal via unpaid telephone bills and other fraudulent practices have thrown a spanner in the where us of NITEL and has justified the prickle of cursed by the researcher upon which satisfaction the research sought by asking the following question. Has the management and control of inventory of the MIS department of NITEL PLC Owerri actually improve management operations and decision making? Are customers effectively and satisfaction served better now with the management and control of inventory of NITEL department? Since the management and control of inventory in the MIS department has the profitability level of NITEL PLC been in a progressive fraud? These are the problems which this work seeks solution.
1.3 OBJECTIVE THE STUDY
To ascertain the extent of which management and control of inventory information helps to solve the problems of the manual system.
To find out those area on which management and control of inventory firms have failed to take advantage of the service of the management and control of inventory within the organization well as analysis area.
To identify a frame work for analyzing a company with a management and control of inventory management information system with a view to deduce the benefits or otherwise in taking such decision.
To determine the operational performance of the management and control of inventory system with particular reference of MIS department of NITEL PLC Owerri and the problem associated with the use of machine to make necessary recommendation.
1.4 SIGNIFICANCE OF THE STUDY
The satisfactory operation and control of an organization rests to great extent an information or data. Data processing for business is not itself but is used by management to assist in achieving its objectives is of providing goods and services making prior dealing fairing with employees customer, suppliers and satisfying legal requirements regarding the keeping of records. This could be enhanced by the introduction of the management and control of inventory in the management information system. This project will highlight the importance of management and control of inventory in the management information system and heighten the emphasis by comparing the management and control of inventory system of operation to manual, beneficial to those persons with sapient knowledge of management process with find valuable.
1.5 SCOPE OF THE STUDY
The scope of this study is only confined to the MIS department of NITEL PLC Owerri with particular reference to the designated area of MIS which control customers billing system. The adopting of the billing system will help in providing the relationship between the billing system and the profitability level.
1.6 LIMITATION OF THE STUDY
In carrying out this study the researcher faced same constraints like the non availability of the adequate information on the topic. The task of selecting a particular organization for case study was difficult due to lack of management and control of inventory of the management information system department of NITEL PLC as a case study. Also the researcher observe same degree of reluctance and reservation an the part of the respondents who were or ally interviewed. The individuals in positions of authority were not forth caring when their views were sought an issues partly because the issue discussed were sensitive ones and could endanger their position however this was their premonition. Also the increasing cost documentation and the protracted scarcity syndrome of feel are other constraints to the timely complete of this work.
1.7 DEFINITION OF TERMS
These are arterially conceived structures with a pattern of ways in which large number of people, engaged in complexity of work or takes related themselves to each other in the conscious systematic establishment and accomplishment of manually agreed purposes.
MANAGEMENT: This is the process by which those charged with the responsibility of running the affairs of an organization discharged such responsibility. Data representation of facts concept or instructions information. Data representation. Data that has been collected, analyzed manipulated and gain meaning which is capable of initiating action. Relevant information that is useable by the manager for decision making. It must be timely, appropriate, accurate detailed and understand able.
DATA PROCESSING: The execution of the systematic sequence of operations performed upon data to generate information.
TACTIC INFORMATION: These are directive information that have to be acted upon by middle management in order to implement strategies. These comprise information an marketing manufacturing research and development etc.
STRATEGIC INFORMATION: These are broad information that specifies the company pattern of objectives purposes or goal and major policies and plans for achieving these goals stated in such a way as to define what business a company is in.
ROUTINE INFORMATION: These are operational information used to control the day- to- day activities of the organization. Information meeting scheduling and circular are examples of routine information.
DATA BASE: A collection of structured data with minimum duplication which is common to all user of the system but is independent to all user of the system but is independent of program which use the data.
MANAGEMENT AND CONTROL OF INVENTORY SYSTEM: An electric devices that accepts data from an input devices perform same kind of manipulation on the data in accordance with pre- defined instructions and transfers the processed data to an input devices in final printed form.
MANUAL SYSTEM: The means of data processing procedure using pencil, pen, adding machine calculator etc.
