KCB ID: 13679

STUDENT ID :
13679

SUBMISSION DATE :
08:12:10

LECTURER : Cilliers
Diedericks

WORD COUNT : 3978

TOATAL NO OF PAGES : 14

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Contents

Introduction ……………………………………………………………… 3

The company taken for the study………………………………………... 3

MIS and Volvo…………………………………………………………… 4

Enterprise resources planning system (ERP)……………………………. 4

Types of managerial information system……………………………… 6

Management information system……………………………………… 8

Management information system at

various levels of the organization……………………………………... 9

Conclusion……………………………………………………………... 11

Recommendations ……………………………………………………... 11

Reference………………………………………………………………. 14

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MANAGEMENT INFORMATION SYSTEM

IN VOLVO
Introduction
MIS is referred as a set of interrelated components that work together.
This works in order to collect, store, process and spread information to support
the decision making process in the business. It plays an important in all types
of business at present situations. It helps in storing data’s and analyze also it
retrieve data whenever it is required by the organization. This which provides
information like instruction for manipulates things and process the raw data
into valuable data. The technology is been improving and drastic changes can
seen in the world and same way many new hardware and software are
invented to process the information in the organization to make the processes
in the organization even more effective. The process is made to help and guide
the employees to improve in the production in a quality basis and carry out
their activities very easily. It shows clear when the transformations are very
perfective then it easier to take effective decisions within the organization.
(Laudon & Jane P. Laudon, Kenneth C. (2009).

Why information system is need

During recent years due to coming out of a global economy, the changes
in technology, revolution of the industries have led to the rise of many face up
to for the organizations so it has become obligatory for the organization to have
an information system so it might possible for the organization to handle its
important information in an effective manner, (Kenneth C. 2009). Countries
like Europe, United States, and Asia are being transformed from the industrial
based economies to knowledge and information based industrial economies so

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this has also let to the growing need for the organization information systems in
the organization. (Kenneth C. Laudon & Jane P. Laudon (2009) .

The company taken for the study

During April 1927, VOLVO the largest car manufacturing in the world
was entered. It is flourished very strongly and become base for the company in
both USA and EUROPE. It is the first car of Volvo nicknamed as “jakob”, in
Gothenburg. During 1924 97th car display was celebrated in America. It has
been more attracted among the customers and they come forward to purchase
the car. Volvo started to introduce more number of cars from the year 1924.
America and Europe were concentrated more on this brand due to more
facilitates are available.

This company welcomed with new method of car to be invented and also
additional responsibilities are given to implement a Bus master in SAP. So this
company tries out by aiming high and started inventing new common ERP
solution was produced for Volvo buses during 2001. Volvo IT has accountable
for maintenance and hold up help of SAP finance Master resolution was begin
during 2000. It also paved way to improve the production and same way to
development and implementing the bus master for the other production units.
(Volvo owner club Limited 2009)

MIS and Volvo

This follows depict the knowledge of the MIS process in Volvo Company and in
what way it benefited with MIS

In the year 1967 Volvo tracks entered into Great Britain and Ireland
markets. Due to MIS the company starts improving their production and also
provides best service so customer declared it is the best company which
provides all types of need. It introduces a track which most liked by the
customer and it plays an important product in the Volvo company. There are
many types of tracks like Volvo FE, Volvo FH etc. ( Volvo owner club Limited
(2009. to be clear MIS starts implementing with small activity based on the
knowledge of project distributed on through IT and saffle plant.

Recent invention of Volvo is nothing but construction equipment and it is

announced care track telemetric system as customary. Benefits are available
with remote monitoring and no use of customers operation. It stands forward
with enormous invention and manufactures to make customer satisfaction and
to value the business and company. Mobile transaction method used to
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understand better to make convenient for the customer. (Volvo owner club
Limited (2009)

Virtues of management information system

 The planning are made well

 The information are made easier provided with all such facilities

 All level of management comes under same level with all information

 Communication brings information are reliable in all situation

 Manpower expenses are reduced with the help of MIS process (Book
rags.com (2009),

Volvo company satisfied with all such implementation and MIS is been
growing.

Enterprise resources planning system (ERP)

Enterprise resource planning is an integrated system which for managing both
internal and external resources. Financial, Human resources, manufacturing
and materials etc. the main usage of ERP is to flow the information between
different business functions and also supervise to get connect with the external
stakeholders. ERP plays as centralized database which links to all the modules
to release data and information easily. (Gartner Research 2008)

The following diagram reveals the benefits and they are follows

 Built-in solutions are the key benefit of the ERP

 Transparency is available in transferring the data s

 The communication are transferred where ever needed

 ERP transaction takes place throughout the business transaction through

the system and makes respect in all level.

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Source: 1 Enterprise resources planning system

Implementation of ERP
ERP software systems are fundamentally multifarious and difficult to install
without the support of the consultants. Three types of support should to
concentrate while installing the ERP and offers many business enterprises. The
company Volvo must analyzed the entire requirement like data information.
The change required proper time management and even minor change will
effect and the fulfillment will destroyed.

 Size of the business

 Consider the number of modules

 Possibility of change

 Scope of the customization

ERP selection depends upon the requirements of the customization and

the modules needed. Vendors are approach for the selection of the ERP
software. The following are the ERP software packages are SAP, People soft
from Oracle, JD Edwards, Lawson, Microsoft Dynamics and Syspro. (Ralph
Stair & George Reynolds, 2008)

Processes for implementing ERP

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The following diagram depict about the process and the steps to follow
when ERP to be implement.

Source: 1

Types of managerial information system

The following are the sources of managerial information system and its
activities are discussed and to know better information the below diagram
represents the managerial information system with all level. Lower level
provides transaction processing system process which details with material
movement control; payroll etc. middle level describes about decision support
system and management information system which details with annual
budgeting, sales and profitability analysis, sales management etc. executive
support plays important role in top management and its activities are strategic
level system. Book rags.com (2009),

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Volvo the largest car manufacturing company which standing top in their
unique manufacturing units and it has good opening when the managerial
information system is been implemented

Transaction processing system

This processing system used in the lower level and operational level of
the organization. Transaction processing systems are used in operations such
as the ordering, machinery control. It also includes organization the payroll and
reimbursement in the organization. This helps the organization to know how the
transactional processing system is benefited in the organization. The following
are the department benefited through TPS

Sales and marketing, here the people will place order and will put on the
market for the production materials (John Laudon, 2009)

The company Volvo introduced many types of manufacturing strategy in

the department of manufacturing and production

It helps in keeping tracks of employee details on a daily basis and also

monthly basis in the department of finance and accounting

To concentrate on the manpower and to check with the employee

production details this TPS helps major part in Human resource management

Executive support system

All the information are which are brought in one single process with the
help of employees is known as executive support system. It helps to keep good
contacts between middle level and higher level and it operates in top level
management. It helps by providing information related to the sales forecasting
and that leads to take key decision in the organization. It extracts the details
from the transaction process system.

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Source: 2

Knowledge work system

Knowledge work system help in producing and combining the knowledge
within the organization. Various knowledge in different level are such as
managerial level, engineering level, and designing level. In this company this
system work will help in the department production and also it helps in
integration of information from all the sources ( Jane P. Laudon &
Kenneth C. Laudon, 2009)

Management information system

Management information system provides in many aspects like sales
management, inventory control and solving problem. Already it was discussed
above management information system which provides required information to
the different level in order to help them for taking necessary decisions in the
organization. (Kenneth C. Laudon & Jane P. Laudon, 2009)

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Source: 3

Decision support system

The decision system support functions at the top management level
where the key decision making process is carried out. It provides the
organization with the data analytical apparatus and models in order to help the
management with the decision making. It support in the terms of problem with
the proper data base. It provides information then and there where the problem
is been rose and how to solve the problem with good solution.

The following are managerial issues when the information system is to

being practiced by an organization

• Decision support system is used by different employees in different way

to develop their production capacity and quality of their work. So it is
should be cleared to the employees that register of these decision
support systems.

• Security causes many problems when the vast data s is stored so

appropriate security measures; in particular in Web based disseminated
applications are necessary.

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• Due to usage of a lot of web base systems and asps it is potential to

locate more different methods to overcome. So here it is necessary to
buy the appropriate DSS.

• The functions are should be increased due to more introduction of

decision support system

• Top management should be take care of with all such difficulties of begin
with DSS

• Implanted technology are focused and expected to be only 20 percent so

it is necessary to examine the technologies and their business
applicability

• Ethical issues are needed to face by the management due to the

management support system and such issues will become loss in
privacy. (2008 John Wiley & Sons)

Management information system at various levels of the organization

Sales and marketing

Marketing management is very imperative by comparing all

departments. It acts maximum of the management in the business. It supports
decision-making activities in invention growth, allocation, pricing decisions,
promotional efficacy and sales forecasting. Customer relation helps vendor
throughout ERP works to all aspects and administer help new product of Volvo.

In top level, updating all information through information system and

getting positive, from all section in the organization for advertising the
manufactured vehicles. Sales person are easily indentifies the production and
the no of product to sold. The integrated system provides all information for the
top level management and facilitates to assess performance of the employees.

In middle level, information from all subdivision transfer through

transaction processing system. Employees are well developed through
preparation to know and review the information system and update the
information about the Volvo customer relation.

Finance and accounting

Financial management department are well planned by the management

information system and each process are benefited through it. Accounts
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receivable, payable and asset management are the transaction processing

system takes into operational database and it combine with management
system to provide statement of finance and financial statistics for contract and
keep financial application databases. Based upon the product and project the
finance department is very important in all such organization. It provides
information not only to the top level and middle level management but also for
all the people who all are in the position to take better decision. The status of
the business is informed in all situations to recover as soon as possible by the
management to keep track stable by Volvo Company.

In top management, here it can be easily monitor and control the use of
finances over time. It adds value as having unique role to company business
processes and each sub system include profit/loss and cost accounting.

The image among Volvo Company has its own process and that which
helps middle level to work in a better way than any other company. Here the
customers are base of the company and it is been concentrated on product
with at most quality with subordinates. (Book rags.com (2009),

Human resource

In human resource department information system is used to reduce the

manpower and introduces the automation product. So the organization should
provide the fearless environment for the employee.

In higher level management, the information system is implemented with

enough sources to sort out the problem. Volvo should recruit the right person
for right job. The information system used for keeping record of every
employee in the organization .

In the middle level the management should have good rapport to get all
details of what their ideas and to implement the policies in order to bring best
process of the company. To keep environment good and sophisticated the
information system should be used. (Book rags.com (2009)

Manufacturing and production

Volvo Company is a manufacturing unit so the information system uses

in many ways to accomplish the product in time. The production system should
be computerized so that production materials are keep working at every
situation and the problem of insufficient materials are avoided when the
information system are in to practice.

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Top level management is benefited by having all such information

regarding the materials for production and it helps to provide finance at the
time of low finance. The production manager can easily approach for the better
quality material if not satisfied through information system and find the solution

Quires from the middle level and lower level are easily found by the top
management through information system and the problems are rectified soon
to not stop the production and manufacturing the product. (Book rags.com
(2009),

System development

Now a day’s business and the managers are well planned with their
areas and flourish together and use production information system. The
development teams of VOLVO are the accountable for formative the aim of the
information system maintain and distribute a system that assemble these
objectives to the organization.

E-Commerce

Electronic commerce is said to be E-commerce. It has commerce

transaction implement automatically connection parties and consumers. Volvo
concentrates more on line customers and appreciates the ease of commerce.
During the time of release it works difficult and so it should concentrate better
to avoid the problems. The consumers can purchase their products without any
such unwanted rush or crowed in the busy schedule. The information can
collect on web site of Volvo to aware about the product. Ethical issues are also
should concentrated by the management in an organization. (Ralph Stair &
George Reynolds (2008)

Ethical and social issues

It is common were ethical and social issues where met by information

system for the customers and more methods are followed by the customers to
follow. The company should provide power, control and security and trust and
accuracy so when it clear then no problem is been raised and leads to ethical
issues. So promotion tools should be used by the company to the customer for
the better way to monitor and assess. (Ralph Stair & George Reynolds
(2008)

Conclusion
The above information is covered maximum of management information
system and paves way for improving the organization with all type of
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information technology. Also it conclude with some Volvo information system

that it keep selected customer with specialized skills and made cost-effective
solutions for all areas of industrial IT. This Volvo has unique culture and
environment with better knowledge about the information system and
recommendation part will make organization to improve in new processes.

Recommendations :
Volvo Company has its own unique strategy to bring many customers
under their database and also it needs to bring the company to worldwide best
manufacturing industry it started implementing management information
system. It starts using all type of enterprise resource planning and its uses. Bus
master connected information technology and it is made strong foundation for
working as if combined company and flexibility and strength will improve.
(Ralph Stair & George Reynolds (2008)

The following are improvement made once when the information technology
and information system are practiced in the new car manufacturing

• The car has all sort of information to reach out the destination and
control power is given according to convenient of the users. Automatic
features are given to control the critical usage. (Ralph Stair &
George Reynolds (2008). The users might also be given exposure to
the artificial intelligence and its importance, the role of the sensors and
the automatic features would not easy to access interms of the data’s
available at the organization. The importance of the access of
information of confidentiality as well as the patent recognition, the
secured way to transferring data’s all are the frequent problems that he
company implanting MIS would face. The cyber crime is an important
area where the failure of thee implementation of the MIS is costing to be
high in number in the current scenario. It also needs the morale and the
commitment of the individual to be high in degree with a sense of
ownership at workplace with fair openness and transparency to all
information thus creating a culture of trust, pride and camaredie at
workplace. (Ralph Stair & George Reynolds (2008)

• It controls all type of function and renders enterprise with wide solution
to handle all the processes functionalities. The recommendation in this
juncture would be to explore and communicate the mutual benefits that
all the inter dependent department would grasp in for the overall success
of the firm. (Ralph Stair & George Reynolds (2008)The functions are
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controlled together thus making the time taken to decision making at all
the tiers of management an easy task, and also the reliability and the
validity of data’s used are high making the decision an accurate and
forecasted one. The company can also see itself in the midst of
competitors as the role of MIs in the market intelligence is also hiking up
to a greater extent. The inter personal relations among the teams across
the organization might also go up, followed by the role of emotional
quotient and emotional intelligence a proper one. The awareness of other
emotions even in the usage of and exposure to managing information
systems is essential as the ego and other problems related to the queries
and the errors arising might cause failure to the entire project. (Ralph
Stair & George Reynolds (2008)

• E-commerce brings more number of business and produce opportunities

to bring business in better place. Also it gives information about needed
quantity with the agreeable price. The role of the MIs has spread its
wings further as the online transactions and the business across the web
has been dramatic in each and every nook and the corner of the world.
The role of the vendors and the role of the suppliers in the market of
Business to Business and Business to Customers is increasing day by
day. v thank to the development of the secured online purchasing and
the ordering and also the use of SAP has made the potential of the
market online to explore like anything. The electronic commerce and its
impact has been quiet drastic on the rest of the modes of selling the
requirement of the manpower has also come down as the role of online
ordering and selling has taken pace, the company must also seek to
explore opportunities in this mode of selling as the reliability and the
efficiency has also taken some proof of performance. The training for
the employees t this mode of selling is also a must as experts in SAP are
also used in the assistance of the implementation and the post - pre
training is also provided to them at low cost. The electronic transaction
has thus brought down the turnaround time for the company thereby
enhancing the quality of service rendered to the end user at any
location. (Ralph Stair & George Reynolds (2008)

• A mission is referred as planned anthology of Volvo activities that

achieve a goal, such as creating a new manufacturing plant or
developing a new decision-support system. This involves the defining of
a capability maturity model for the company in terms of implementing
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the management information systems. (Ralph Stair & George

Reynolds (2008)The decisions support system could be in to practice
provided the workforce is trained completely on the pros and the cons of
the usage of the MIS and also the ways and the possibilities through
which the troubleshooting of the software could be done. In all the
possible ways the end result of the efficient and the effective use of the
software rely on the knowledge, skills and the abilities of the workforce.
The creation of a new plant or the predictions in terms of the manpower
is possible only with a better and deep access to information even
interms of the manpower, technology and the financial position of a
company. Bringing about a sense of ownership among the existing and
the future workforce is also essential at this juncture. (Ralph Stair &
George Reynolds (2008).

• The above information is covered maximum of management information

system and paves way for improving the organization with all type of
information technology. Also it conclude with some Volvo information
system that it keep selected customer with specialized skills and made
cost-effective solutions for all areas of industrial IT. This Volvo has unique
culture and environment with better knowledge about the information
system and recommendation part will make organization to improve in
new processes.

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Reference
Kenneth C. Laudon & Jane P. Laudon (2009), “Management Information
system”, Pearson Education, 4th edition, pg: 156 – 159 at 2.34pm on 2nd
December 2010

John Wiley & Sons, Inc 2009, “Management decision support and intelligent
systems”, Information technology for the management 6th edition, chapter 12,
T Turban, Leidner, McLean, Whether be Lecture Slides by L. Beaubien,
Providence College, at12.34pm on 2nd December 2010

Ralph Stair & George Reynolds (2008), “Principles of Information

systems”, Thomson Learning, 8th edition, pg: 145 – 147, at 2.4pm on 2nd
December 2010

Ashok Arora & Akshaya Bhatia (2008), “Management Information System”,

Excel books, 6th edition, pg: 112 – 117, at72.34pm on 2nd December 2010

Volvo owner club Limited (2009), chip Taylor communication, ‘The internet
and technology service” Volvo Hand book, at 2.34pm on 1st December 2010

SOURCE

1. Source: Kenneth C. Laudon & Jane P. Laudon (2009), “Management

information system”, Pearson Education, 4th edition, pg: 82 – 84, at 1.3am
on 2nd December 2010

2. Source: Ashok Arora & Akshaya Bhatia (2008), “Management Information

System”, Excel books, 6th edition, pg: 114 at1 2.14pm on 2nd December 2010

3. Source: Ashok Arora & Akshaya Bhatia (2008), “Management Information

System”, Excel books, 6th edition, pg: 117, at 11.34pm on 2nd December 2010

Website

Book rags.com (2009), “Management information system”, [online] available at

http://www.bookrags.com/essay-2004/1/27/92720/7687 at 10.34pm on 2nd December
2010

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