Management information and control system question and answer

A Management Information System ICT Revision Questions and Answers

Assume that you are hired as the system analyst F and B Company Nepal which is a manufacturing and Distribution Company specialized in food and beverages; to develop the computer based information system. The company has been using the manual system since last 20 years. This is the transition period. In this regard, answer the following questions.
a. What are the possible approaches of the system development? Which approach you will adapt for F and B Company Nepal and why?
b. What are the prominent areas of the organizations which needed to be computerized and how those areas are related?
c. Show a sample report of Inventory on hand.

The possible approaches which can be used for the system development to F and B Company Nepal are:
1. Traditional approach
2. Prototype approach
3. End user development approach
4. Top down approach
5. Bottom up approach
6. Systematic approach for development in small organization

In this case the prototype approach is use for the system development. The prototype approach is that in which the small and minimum useable version of the system is developed at minimum cost and at less time. This type of system is called as the prototype. The end user checks this prototype

as if they are using the real system. The system developer can immediately get the feedback from the end user. If the end user gives positive complete system development will be done. If they feel changes new system will be redesign according to their suggestion.

Thus prototype approaches provides the real feeling of the complete system within very low time in comparison to the time taken to develop the complete system. Prototype approach can be views as a series of four steps:
1. Identify information system requirements.
2. Develop the initial prototype
3. Test and revise
4. Obtain user signoff of the approved approach
5. The main advantage of the prototype approach is that there will be direct involvement of the end user so once the real systems develop they own it perfectly. So there is very less chances of failure of the system. It is because F and B Company have staffs that are using manual system since last 20 years so that we want to involve them in every steps of system development.

After a complete study of the overall operation of the organization we came to conclude that these are the areas where the companies immediately need to develop the computerized information system.
1. Financial and Accounting Information System: This area includes following areas
a. Working capital management
b. Capital budgeting
c. Profit planning
d. Tax Management
e. Payroll
f. Receivables
g. Payables
2. Production Information System: This includes following detail areas
a. Inventory Control
b. Process Control
c. Research and Development
d. Production Planning
3. Sales and Marketing Information System: This includes following detail points
a. Sales Management
b. Market Management
c. Order processing
d. Market forecasting
e. Promotion Management
4. Personnel and Human Resource Management System: This includes following detail areas

a. Personnel record keeping
b. Compensation
c. Selection and retirement
d. Labour analysis
e. Training and Development
f. Personnel retention
While developing the system it is to be noted that each system are co-related. The output or the information that is gathered from one system will be data for further analysis to another system. For example the information that are obtained from the personnel and human resource information system will be the input while generating the salary sheet from the accounting and finance information system. Similarly the productions records obtained will be information for the sales and marketing of the product. The target of the sales will determine the amount the raw material to be purchased for the production. This is how each areas of the company are related with another.

Inventory on Hand Report


Nu mb er

Description Unit Stock

Cl as s


Ba lan ce



a n d


Allo cate d


on Or der



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