Question

Question 2

1. Case study on MIS :information system in restaurant.

a waiter takes an order at a table ,and then enters it online via one of the six terminals located in the restaurant dinning room .the order is routed to a printer in the appropriate preparations area : the cold item printer if it is a salad, the hot -item printer if it is a hot sandwich or the bar printer if it is a drink. A customer's meal check-listing (bill) the items
ordered and the respective prices are automatically generated. This ordering system
eliminates the old three-carbon-copy guest check system as well as any problems caused
by a waiter's handwriting. When the kitchen runs out of a food item, the cooks send out an
'out of stock' message, which will be displayed on the dining room terminals when waiters
try to order that item. This gives the waiters faster feedback, enabling them to give better
service to the customers. Other system features aid management in the planning and control
of their restaurant business. The system provides up-to-the-minute information on the food
items ordered and breaks out percentages showing sales of each item versus total sales.
This helps management plan menus according to customers' tastes. The system also
compares the weekly sales totals versus food costs, allowing planning for tighter cost
controls. In addition, whenever an order is voided, the reasons for the void are keyed in.
This may help later in management decisions, especially if the voids are consistently
related to food or service. Acceptance of the system by the users is exceptionally high since
the waiters and waitresses were involved in the selection and design process. All potential
users were asked to give their impressions and ideas about the various systems available
before one' was chosen.

1. In light of the system, describe the decisions to be made in the area of strategic
   planning, managerial control and operational control? What information would

you require to make such decisions?

11. Management Information System (MIS), broadly refers to a computer-based
    system that provides managers with the tools to organize, evaluate and
    efficiently manage departments within an organization. With use of examples
    explain what would make this system a more complete MIS rather than just

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iii. Explain the probable effects that making the system more formal would have

doing transaction processing in a case of this restaurant?

on the customers and the management.

IV. What are some of the notable advantages and disadvantages the MIS system
might have on both the customers and the restaurant staff and management?

Answer 1

Question 1: In light of the system, describe the decisions to be made in the area of strategic
planning, managerial control and operational control? What information would you require to make such decisions?

Answer: 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 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. 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.

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