Information - identifies a need to re-order parts.
Data - raw facts in isolation.
Data - not in useful format; it must be processed further to be useful.
Information - shows state of your account and/or triggers you to make a payment.
Drucker states on page 52 that the next task in developing an effective information system for top management is the "collection and organization of OUTSIDE-focused information." This outside information will need to come from the environment or from data collected from the environment, not from data collected from the physical operation of the organization.
At a minimum, the model should be revised to show data coming from the environment into the information processor. But, a better model might include a new type of information processor that takes the environmental data and produces information for a new level of management that that sets the standards for the organization.
Four system classes: Distribution Systems, Managers (in the same organization as the Distribution System but in the environment of the), Vendor Systems, and Customer Systems.
Managers, Vendors, and Customers.
There are at least two message events:
Since the Managers never send a message into the system, all of the reports are probably responses to temporal events. The stimuli from Customers and Vendors are transactions and require a transaction processing system response. It is doubtful that a transaction event would stimulate a management information system response to the managers. Managers are more interested in summaries and exception reports that reduce the transaction data into useful information.
The following data flow diagram is one such model. But note that this model adds explicit processes to assign the work and do the work. These processes were not explicitly part of the plan, evaluate, and revise cycle discussed in the article:
If things are going better than planned, it means that the standards are being exceeded. This presents an opportunity to raise the standards if the reasons for the better performance can be identified and steps can be taken to repeat them.
The conceptual system is based on the following concepts:
Management of the conceptual system is based on the following concepts:
The homeowner would be the manager who makes decisions in the event of system failure (see below).
This system could fail in a number of ways:
McCann Container Corp. is a manufacturer ....To answer the following questions, you will find it helpful to compare the current inventory system to the general systems model of the firm.
Yes, it is properly placed Since the computer takes in data (inventory transactions), compares the state of the business (current inventory) to standards (reorder point), and produces information (what needs to be ordered), the computer appears to be properly placed in the system.
Probably not. He is acting as the manager or feedback controller because he is approving structured decisions that impact the production system. But, McCann should be the executive. He should be setting the standards and delegating the strategic details to someone else.
There are a number of possibilities:
One could argue that having some advanced knowledge of pending orders would permit anticipatory ordering of raw materials. That might be a possibility.
Prepared by David L. March -- Last Revised on September 3, 2001
COPYRIGHT © 1998-2001 BY DAVID L. MARCH