INSTITUTE OF MANAGEMENT TECHNOLOGY

GHAZIABAD
DISTANCE LEARNING PROGRAMME
COMPUTER AIDED MANAGEMENT-II (CAM-II)
Notes:
a. Write answers in your own words as far as possible and refrain from copying from the text books/handouts.
b. Answers of Ist Set (A, B), IInd Set (C, D), IIIrd Set (Short Answers) and Case Study must be sent together.
c. Mail the answer sheets alongwith the copy of assignments for evaluation & return.
d. Short Answer Type Questions -- Confine your answers to 150 to 200 Words.

FIRST SET OF ASSIGNMENTS (SUBJECTIVE) ASSIGNMENT (A + B) = 10 Marks

ASSIGNMENT – A Q.2 List various tools that can be applied during systems
analysis. Discuss the pros and cons of the same.
Q.1 Briefly discuss systems approach and MIS as a system.
Discuss the nature and scope of MIS in business Q.3 Assume Mr. Sudesh is running a small confectionery shop.
organizations. He makes all the purchases from a delivery van on cash
basis and sells the items to his customers only on cash, i.e.
Q.2 Identify different types of tools that facilitate OAS. How
no credit is allowed to the customer. Since the shop is a
is OAS different from TPS?
small business, it is a one-man show and Mr. Sudesh does
Q.3 What are the various functional information systems in a not file any income tax return. Recently, he has started
typical manufacturing organization? Explain their free home delivery on bulk order of at least Rs. 500. In
purpose, inputs, outputs, and sources of inputs and that case too he accepts the down payment on delivery.
outputs. How are these systems related to each other?
Draw a DFD for this information system. State the rules
ASSIGNMENT – B that one should keep in mind while drawing a DFD.
Q.1 What alternative strategies exist for information systems
development? Why are there different strategies?

SECOND SET OF ASSIGNMENTS (SUBJECTIVE) ASSIGNMENT (C + D) = 10 Marks

ASSIGNMENT – C ASSIGNMENT – D
Q.1 What is meant by design specifications? Discuss various
Q.1 What should be the ideal role of end-user in the IS
phases involved in preparing specifications. Do you think
development? Will the shift of responsibility for systems
users should be involved in preparing design
development from analysts to end-user increase or
specifications? Why?
decrease maintenance with regard to:
Q.2 Design a form that can be used by students to authorize
the university to send their grades to counselors, other Cost? Time? Frustration?
educational institutions, employers and other specifies Q.2 Identify the methods used for strategic planning. Which
parties. one would you recommend?
Q.3 Suppose that the grading system is used for a subject taken Q.3 A system is developed and well tested. What steps would
by students in different departments of an institute. you take to implement it? What ways would you suggest
Design a codification scheme that will identify each for adoption to evaluate the system?
student’s department, major stream and minor stream.
Explain your choice of code.

SHORT ANSWER TYPE QUESTIONS (CAM-II) 10 Marks

1. Define MIS. 7. What type of information is needed by the following:
2. Differentiate IS and IT. a) A Pharmacist? b) A small Retailer?
3. How would you distinguish between data, information and c) A secretary? d) A hospital? e) A lawyer?
management information? 8. Differentiate Transaction Processing and Executive Support
4. Can organizations do without MIS in Systems
a) Public sector b) Service Sector c) Manufacturing Sector 9. Differentiate Decision Support Systems and Business Expert
5. What would have been done to MIS if IT were not in place? Systems.
6. What kind of information do managers exchange across the 10. Differentiate the environment and boundary.
three levels of management? 11. Differentiate open and closed systems.
CAM-II 2
12. Why is MIS called a system? 35. A grocery store is implementing a system to automate the
13. Name the various functional information systems that can be reading of product codes (UPC bar codes) at the checkout
present in a typical manufacturing organization. How are counter. From the store manager’s point of view, what are:
they linked to each other? a) Tangible costs and benefits?
14. Discuss the sources of inputs and possible outputs of a b) Intangible costs and benefits?
marketing information system. 36. Why is Systems maintenance costly, Important, Difficult and
15. Who should initiate the feasibility study? When should it be Unpopular?
initiated? 37. Explain the relationship of maintenance to development.
16. How should one initiate a new information systems project? 38. What are the merits of locating the MIS department under
17. Compare the role of analyst and user during systems a) V.P. Finance b) V.P. Systems
analysis. 39. What is a strategic information system?
18. What are some of the issues and limitation in the use of 40. Do you agree that IS enables organizations to change? How?
interviews for requirement gathering? Is the change for good or bad?
19. Evaluate the questions below. Are they well stated? Would 41. Should MIS have a feedback control loop? Why?
they be useful questions on a questionnaire?
42. Is cost benefit evaluation sufficient to judge the need and
a) How do you feel about the service provided by the performance of an IS? Why?
computer center?
43. What precautions should be taken while implementing a new
b) Would you favour changes in the accounts receivable IS?
system or do you find it useful as it is?
44. Do you feel the absence of standards in IS development and
20. Comment on the statement: The flow of information in an deployment? Give rational for your opinion.
organization is cyclical.
45. What is the function of a data flow diagram?
21. Should information flow through all levels of the
46. How would you differentiate a decision tree from a decision
organization with a feedback loop?
table?
22. How can one separate the tools of analysis from those of
47. Why should we ever need a prototype model?
design?
48. Spiral model is a never-ending model. Is it wise to use it for
23. What all need to be designed for an IS to get functional?
implementing IS projects?
24. Differentiate on-demand and scheduled reports.
49. Interpret the following diagram. If incorrect, indicate why.
25. List and differentiate possible input coding schemes.
26. Suppose you are a marketing manager. How would you use Pay Employee
a monitor without printer? A Laser Printer? Chec
27. List human factors that should be considered while designing Time
output. recor Pay
28. How can you decide which data elements are required for Employee
system under development and which ones already exist in Pay roll
the organization database. dept.
Pay
29. Justify your selection of input medium and device for each
Registe
of the following:
50. Use a proper technique of analysis to state the following
a) Online identification of workers in a factory
problem.
b) Payment of invoice
A secretary in the office of dean has to monitor and control
c) Input from a worker whose hands are engaged in an the progress of each student enrolled according to the
assembly task. following rules.
30. “We are approaching a day when we can generate programs a) A student’s application to be accepted must be approved
without programmers and do so cheaper and faster.” Discuss by the head of the department in the student’s discipline
the statement. area.
31. Explain why large databases are difficult to design, process, b) Each student must take 3 comprehensive exams in the
access and secure? following areas: Foundation, Major, Minor
32. Design a data record to be stored in a data base system for c) Each comprehensive exam can be taken a second time if
the purpose of performance control for: not passed successfully on the first try. A delay of 1
a) A clerk in a bank b) A middle manager month is a must before the exam is repeated.
33. What is the role of CIO in an organization? d) Two unsuccessful attempts mean the student is dropped
34. What is the importance of IS planning? from the programme.
CAM-II 3

CASE STUDY (CAM-II) 10 Marks

A BC Laboratories Limited was incorporated under the Company’s Act in 1965. It is one of the largest private sector drug and pharmaceutical
enterprises in India with paid-up capital of approximately Rs. 150 million. The turnover of the company in 1998 was Rs. 2587 million.
The Board of Directors of the company consists of the chairman and managing director, four executive directors and two non-executive directors.
The company’s head office is situated at New Delhi. The main business of the company is to manufacture drugs, medicines, cosmetics, and chemical
products. The company also markets a wide range of products, including life-saving antibiotics. The company employs nearly 300 managers and has a
work force of approximately 3500. Compensation packages of the employees are comparable to those of similar companies of repute in the country. The
company markets its products under its own trade names and has earned a reputation of market leader in some of its products. The performance of the
company has been shown in Exhibit 1.
Exhibit 1
Rs. In lakhs)
1996 1997 1998
Net fixed assets 3714.71 3669.57 5352.11
Current assets 11093.62 12711.96 13949.69
Capital 900.18 910.53 914.97
Reserves and surpluses 2913.26 3153.71 4135.36
Term loans 363.13 602.83 1665.62
Current liabilities 8331.91 9427.98 10406.40
Sales 18535.81 20645.40 25877.60
Depreciation 406.29 451.98 457.32
Provision for taxation 56.00 74.00 ----
Net profit/loss 259.69 468.88 1210.08
Dividend per cent 27.50 25.00 25.00
Current ratio 1.35 1.37 1.34
Net worth—Total assets 25.00 25.00 26.00
Return on capital employed per cent 12.15 11.24 15.32
Net profit—Total assets per cent 2.00 3.00 6.00
Net sales--Total assets 1.23 1.25 1.33
Receivables to sales—Days 63.00 58.00 67.00

In order to tap the big hospital and nursing home market in India, the company started a new division known as Generics and Hospital Products
Division (GHPD) in 1991.
Generics and Hospital Products Division (GHPD)
Generics and hospital products division was created mainly to cater to the needs of big hospitals and nursing homes in India, which require medicines in
bulk quantities and prefer medicines in the generic names instead of trade names. The division markets about 55 different products of eight different
categories like tablets, capsules, liquids, drops, syrups/dry powder, ampoules, vials and ointments. These products are distributed from the head office of
the company through its distribution network of 250 distributors throughout the country.
Operational Activities of GHPD
After receiving an order from the distributor, the division processes it and prepares invoices to be set alongwith the supply. The distributors are allowed
one-month credit period from the date of supply. Maximum limits of credit for different distributors have been prescribed by the division. In addition to
order processing and despatching of supply, the division is also performing the following functions.
(i) Forecasting of sales. (iv) Effective physical (vi) Promotional campaigns.
(ii) Merchandising planning. distribution planning. (vii) Analysing various business
(iii) Pricing of products. (v) Cost-effective travel route aspects/opportunities.
planning for sales force.
Management Information Report (MIR)
GHPD prepares a quarterly report, known as Management Information Report (MIR) to be discussed in a quarterly meeting of all the area managers of the
division. This report includes the following information. (see exhibit 2).
Exhibit 2
Sl.No. Title of the report Contents
1. Report on total sales for the quarter Sno, product name, budgeted sales, annual sales, variance
2. Report on estimated sales for the quarter Sno, Product name, Budgeted sales
3. Report on calls made by the sales force for the quarter Sno., Area Name, Budgeted calls, Actual Calls, Variance, Remarks
4. Report on calls to be made by sales force for the quarter Sno, Area Name, Budgeted sales calls
5. Report on outstanding amount during the quarter Sno., Area Name, Outstanding amount
6. Report on total outstanding amount for the quarter Sno, Area name, Outstanding amount in previous quarter, Amount
Collected, Balance amount, Outstanding amount in present quarter
7. Report on potential areas Sno., Name of Area, Areas tapped, remarks
8. Report on complaints received from distributors and the Sno. Distributor Name, Complaint, Action taken, Remarks
number of complaints attended to during the quarter

GHPD’s Performance in the Recent Past

CAM-II 4
The performance of the division for three years has been shown in Exhibit 3. The effect of the priority given by the government hospitals to procure
supplies from the public sector has continued to adversely affect the performance of the division. Over the years, competition has also become stiffer as
many small-scale companies have also entered the market of generic product.
Exhibit 3
(Rs. In lakhs)
1996 1997 1998
Sales 1750.24 2300.30 2412.43
Net profit/loss 32.43 28.76 20.44

Computerisation at GHPD
To increase the effectiveness of management information systems at GHPD, the division acquired one PC in 1993. The services of a computer professional
were hired to develop the applications for the division. The division was overburdened with the work of processing of supply orders and it took about 5-7
days to despatch a supply after the receipt of an order. However, sometimes the despatch of supply took more time as the division found that the material
could not be despatched to the distributor because of an outstanding amount beyond his prescribed limits.
The newly-developed computerised MIS was implemented in January 1994 and it started supplying various reports thereafter. However, within a
period of six months, the Vice President (GHPD) got frustrated with the system and ultimately discarded it. There was no change in delivery times.
Computer use and the development looked like an overhead. In 95, the computer professional suggested a network of 4 computers and re-development of
MIS on oracle. VP became optimistic again and approved the suggestion. 2 more programmes even hired under the one already employed. Mid 96, the
product was put to use. Soon the VP realized that state was still the same. The added computer were used for mail and greetings. Despatch time shifted 7
days to 6 days only. The outstanding amounts were sometimes overlooked. V.P. was depressed. In order to improve upon his MIS, the VP decided to
invite a consultant from a leading management institution in India.
Problem Description
The consultant studied the existing management information system at the division and analysed the problem. He described the problem as follows:
GHPD is using an ineffective MIS; rather it is relying on Transaction Processing system, which does not provide any meaningful information to the
management for its decision-making. Therefore, GHPD needs MIS which could provide the required information at the right time to aid management
decision-making. The vice president also needs a support in his unstructured/semi-structured decisions. Thus, an application of MIS which can support
unstructured decisions having a database, a model-base and user interaction known as DSS is called for.

Questions:
1. Do you see the problems at GHPD as technology or systems oriented? State your opinion.
2. Why did the V.P. (GHPD) get frustrated with the newly developed information system. Discuss possible reasons and suggest appropriate measures.
3. Design a MIS for the GHPD of ABC Labs Ltd.

CONTENTS : COMPTUER AIDED MANAGEMENT-II

1. Foundation of Information Systems
ƒ Data and Information
ƒ Systems Concept
ƒ Open/closed/cybernetic systems
ƒ IS as a system
ƒ Organizational / social / technical views
ƒ Types of IS
ƒ Transaction handling, Management reporting, Decision Support, Knowledge Based, Executive Information systems
ƒ Introduction to Data warehousing and E-business
ƒ Technologies supporting IS
ƒ Comparative analysis of available tools and technologies of IT (e.g. input-output mediums, networks, wireless,
multimedia etc.) for implementing business IS
2. Information Systems for Business Applications
ƒ IS in functions of management – Planning, decision, control, directing.
ƒ Functional Applications – Finance, Human resource, Production, Marketing, Strategy etc.
3. Development of Information Systems
ƒ Various Software Development Approaches : Linear, Iterative, Evolutionary
ƒ Software development methodologies: Structured/Prototype/Spiral/Object Oriented/Joint Application development
ƒ Phases of development Lifecycle – Systems Engineering, Analysis to Implementation
ƒ Building Systems Specifications for requirements and design
4. Managing Information Systems
ƒ Information as a resource
ƒ IS Planning, Use and evaluation
ƒ Models and Methodologies
CAM-II 5
ƒ Issues and Challenges facing IS Management – Social/Security/Ethical/Legal