review25 - CHAPTER 25 Quality Management and Measurement...

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CHAPTER 25 Quality Management and Measurement REVIEWING THE CHAPTER Objective 1: Describe a management information system, and explain how it enhances management decision making. 10. A management information system (MIS) is a reporting system that identifies, monitors, and maintains continuous, detailed analyses of a company’s activities and provides managers with timely measures of operating results. An MIS captures both financial and nonfinancial information. It is designed to support total quality management, the just-in- time operating philosophy, activity-based costing and activity-based management, and other management philosophies. The primary focus of an MIS is on activities, not costs. By focusing on activities, it provides managers with improved knowledge of the processes under their control. The MIS pinpoints resource usage for each activity and fosters management decisions that lead to continuous improvement throughout the organization. 20. A management information system can be designed as a customized, informally linked series of systems for specific purposes, such as financial reporting, product costing, and process measurement, or as a fully integrated database system known as an enterprise resource planning (ERP) system. An ERP system manages all major business functions through one easy-to-access centralized data warehouse capable of communicating not only inside the organization but with other business’s databases. 30. A management information system supplies managers with relevant, reliable information throughout the management process. As managers plan, they use the MIS database to obtain the information for formulating strategic plans, making forecasts, and preparing budgets. When managers perform their duties, they use the financial and nonfinancial information in the MIS database to implement decisions about personnel, resources, and activities that will minimize waste and improve quality. When managers evaluate performance, they identify and track financial and nonfinancial performance measures to evaluate all major business functions. Managers communicate by using the MIS database to generate customized reports that evaluate performance and provide useful real-time information for decision making. Objective 2: Define
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review25 - CHAPTER 25 Quality Management and Measurement...

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