A Project Report on Management Information System

A PROJECT REPORT ON MANAGEMENT INFORMATION SYSTEM Topic-McDonalds

NATIONAL INSTITUTE OF MANAGEMENT AND INFORMTION TECHNOLOGY ALLAHABAD

GROUP • HEENA ALAM (A08B) • CHITRA.Y.GIRI(A12D) • RUMA SHARMA(A13D) 1

ABSTRACT Management information Systems (MIS), sometimes referred to as Information Management and Systems, are the discipline covering the application of people, technologies, and procedures — collectively called information systems — to solving business problems. Management Information Systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization. Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. Decision Support Systems, Expert systems, and Executive information systems. The terms MIS and information system are often confused. Information systems include systems that are not intended for decision making. MIS is sometimes referred to, in a restrictive sense, as information technology management. That area of study should not be confused with computer science. IT service management is a practitioner-focused discipline. MIS has also some differences with Enterprise Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision support.

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ACKNOWLEDGEMENT I am very grateful to my NIMIT Institute Manager Mr.Vijay Singh and my computer teacher Mr.Rakesh Kumar Verma and our Guest Teacher Mr. who help us a great deal in completing this A PROJECT REPORT ON MANAGEMENT INFORMATION SYSTEM. My thanks go to my parents, my friends and our group members who had helped me at various stages and gave me full co-operation while making this project because without their constant help this project would not have been materialized.

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TABLE OF CONTENTS What is McDonalds? • History of McDonalds • Corporate Overview • Business Mode • McDonald’s in India • McDonald’s in Allahabad • Visit of McDonald’s • McDonald’s Business Infrastructure • Responsibilities and Activity of Branch office Managers. • Activity of McDonald’s Employees/works • Suggestion. •

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What is McDonalds? McDonald's Corporation is the world's largest chain of fast food restaurants, serving nearly 47 million customers daily. McDonald's primarily sells hamburgers, cheeseburgers, chicken products, French fries, breakfast items, soft drinks, milkshakes, and desserts. More recently, it has begun to offer salads, wraps and fruit. Many McDonald's restaurants have included a playground for children and advertising geared toward children, and some have been redesigned in a more 'natural' style, with a particular emphasis on comfort: introducing lounge areas and fireplaces, and eliminating hard plastic chairs and tables.

In addition to its signature restaurant chain, McDonald’s Corporation held a minority interest in Pret A Manger (a UK-based sandwich retailer) until 2008, and owned the Chipotle Mexican Grill until 2006 and the restaurant chain Boston Market until 2007. The company has also expanded the McDonald's menu in recent decades to include alternative meal options, such as salads and snack 5

wraps, in order to capitalize on growing consumer interest in health and wellness. Each McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporations' revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion.

History of McDonalds

The business began in 1940, with a restaurant opened by brothers Dick and Mac McDonald in San Bernardino, California. Their introduction of the "Speedee Service System" in 1948 established the principles of the modern fast-food restaurant. The original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was "Speedee." Speedee was eventually replaced with Ronald McDonald in 1963.

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The first McDonald's restaurants opened in the United States, Canada, Costa Rica, Japan, Netherlands, Germany, Australia and Sweden in order of openings. The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois on April 15, 1955 , the ninth McDonald's restaurant overall. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion and the company became listed on the public stock markets in 1965. Kroc was also noted for aggressive business practices, compelling the McDonald's brothers to leave the fast food industry. The McDonald's brothers and Kroc feuded over control of the business, as documented in both Kroc's autobiography and in the McDonald brothers' autobiography. The site of the McDonald brothers' original restaurant is now a monument

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. With the expansion of McDonald's into many international markets, the company has become a symbol of globalization and the spread of the American way of life. Its prominence has also made it a frequent topic of public debates about obesity, corporate ethics and consumer responsibility.

Corporate Overview

Facts and figures McDonald's restaurants are found in 119 countries and territories around the world and serve nearly 47 million customers each day. McDonald's operates over 31,000 restaurants worldwide, employing more than 1.5 million people. The company also operates other restaurant brands, such as Piles Café, and has a minority stake in Pret a Manger. The company owned a majority stake in Chipotle Mexican Grill until completing its divestment in October 2006. Until December 2003, it also owned 8

Donatos Pizza. On August 27, 2007, McDonald's sold Boston Market to Sun Capital Partners.[

Types of restaurants Most standalone McDonald's restaurants offer both counter service and drive-through service, with indoor and sometimes outdoor seating. Drive-Thru, Auto-Mac, Pay and Drive, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the latter two steps are frequently combined; it was first introduced in Arizona in 1975, following the lead of other fast-food chains. In some countries "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service. There are also a few locations, located mostly in downtown districts, that offer Walk-Thru service in place of Drive-Thru. Specially themed restaurants also exist, such as the "Solid Gold McDonald's," a 1950s rock-and-roll themed restaurant. In Victoria, British Columbia, there is also a McDonald's with a 24 carat (100%) gold chandelier and similar light fixtures. To accommodate the current trend for high quality coffee and the popularity of coffee shops in general, McDonald's introduced McCafé. The McCafé concept is a café-style accompaniment to McDonald's restaurants in the style of Starbucks. McCafé is a concept of 9

McDonald's Australia, starting with Melbourne in 1993. Today, most McDonald's in Australia have McCafés located within the existing McDonald's restaurant. In Tasmania there are McCafés in every store, with the rest of the states quickly following suit. After upgrading to the new McCafe look and feel, some Australian stores have noticed up to a 60% increase in sales. As of the end of 2003 there were over 600 McCafés worldwide. Some locations are connected to gas stations/convenience stores, while others called McExpress have limited seating and/or menu or may be located in a shopping mall. Other McDonald's are located in Wal-Mart stores. McStop is a location targeted at truckers and travelers which may have services found at truck stops.

Business Model •

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Franchise Model – Only 15% of the total number of restaurants are owned by the Company. The remaining 85% is operated by franchises. The company follows a comprehensive framework of training and monitoring of its franchises to ensure that they adhere to the Quality, Service, Cleanliness and Value propositions offered by the company to its customers. Product Consistency – By developing a sophisticated supplier networked operation and distribution system, the company has been able to achieve 10

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consistent product taste and quality across geographies. Act like a retailer and think like a brand – McDonald’s focuses not only on delivering sales for the immediate present, but also protecting its long term brand reputation.

McDonald’s in India McDonald’s entered India in 1996. McDonald’s India has a joint venture with Connaught Plaza Restaurants and Hard Castle Restaurants. Connaught Plaza Restaurants manages operations in North India whereas Hard Castle Restaurants operates restaurants in Western India. Apart from opening outlets in the major metros, the company is now expanding to Tier 2 cities like Pune and Jaipur. .

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McDonald’s in Allahabad McDonald’s entered Allahabad in 14 February 2006. It’s situated in Atlantis mall at civil lines. They have 4lacs to 5lacs sales per day.

ALLAHABAD McDonald’s

Visit of McDonald’s We are visit to McDonald’s on 22 July. There we know McDonalds business infrastructure and how information flow. We know how they work manually and by computer. There we know duties of all employees and management of McDonalds. We saw category of management.

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McDonald’s Business Infrastructure

Head office

Regional Office

Branch Office

Responsibilities and Activity of Branch office Managers 1. Team Leader-team leader who leads and give order and

work to all managers 2. Crew Chief- crew chief who leads all frontline employees and distribute their duty and set time schedule of them. 3. Floor Manager -'Floor management' includes managing staff who give services to customers and allocate the duties of opening and closing restaurant. The manager is responsible for making sure his or her staff is following the service standards and health and safety regulations. The manager is the most important person in the front-of-the-house environment, since it is up to him or her to motivate the staff and give them job satisfaction. The manager also looks after and guides the personal well-being of the staff, since it makes the work force stronger and more profitable. 13

4. Kitchen

Manager-'Kitchen management' includes the managing staff working in the kitchen. The kitchen is the most important part of the business and the main reason customers patronize the restaurant. Managing the kitchen staff helps to control food quality. As most commercial kitchens are a closed environment, the staff may become bored or tired from the work. Without proper management, this often results in an inconsistent food product 5. Restaurant Manager- restaurant manager who is the head of floor manager, kitchen manager, crew chief and also employees.

Activity of McDonald’s Employees/ works In McDonald’s we see Activity of all Employees •

Frontline Employee-In McDonald’s there are 4 counters and frontline employees operate that counters and deal with customers and the end of the day they count per product sale amount and total amount of the sale. Simple format is given below-

Product Name McCallu tikki Cold drinks Ice cream

Sales 5000 5000 9000

Amount 100000 150000 270000

Grand total 100000 150000 270000 520000

All works are doing manually and the frontline employees give this report to the restaurant manager. •

Restaurant Manager–restaurant manager take all counters reports from the frontline employees, he 14

checks all the reports and by mail he give this report to the regional office and head office. Frontline employees

Branch Office Manager

Regional Office Manager Head office Manager

Suggestion

Flowchart of report moving

We give some suggestions to McDonalds, the suggestions are • •

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Provide access to information form any where any time. Head office management and regional office management access to the proposal for status monitoring and tracking. Create a business management database/data warehouse that is useful to management , sales managers Besides real time online systems develops data mining application for strategic management of business. 15

Technology platform for IMS strategy Keeping in view the dynamic nature of business and need of satisfying the requirement of information at any time anywhere, we have suggestion to chooses following technology platform•

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Enterprise management System. Operating system platform: NT4.0, UNIX. Network: Internet/Internal/Extranet/LAN. Application Technology: Client/Server, Web Enabled applications. Application Solution: Oracle 8 I, Oracle Financials, Oracle Application-11 i. Front End: VB,IIS 4.0 Back End: Database server, Application server, Microsoft transaction server, web server. Security: Firewall servers and Proxy server.

• Use ERP

Enterprise management System What is Enterprise? • Large business community including all the players and partners in the business •

General term, used for a corporate entity (any thing from Coffee house to Organization like TATA, Bajaj etc.)

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• It is a group of people with common goal, where has certain resources at its disposal to acquire that goal What an Enterprise needs? • Management of Data (through EDI – Electronic Data Interchange) for information Communication • Management of related systems and sub systems • Event monitoring, updating, Control. There are tools and Techniques available to answer all above needs, i.e. business needs an integrated solution, which is nothing but an EMS.

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ERP plays the important role of running system on front. Whatever decision are made, mostly are through the system of ERP. ERP is supported by various other supports. This is the place where major decision making and their execution takes place.

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EDI (Electronic Data Interchange) consists of direct computer-to-computer transmission among multiple firms of data in a machine readable, structured format. AMS (Attendance Monitoring System) is required for personal planning of the employees in the organization. It also helps in availability and scheduling. CAD/CAM/CAE (Computer Aided Design/ Computer Aided Manufacturing/ Computer Aided Engineering). This system handles the design,

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manufacturing and engineering functions in the organization. This provides drawing and design engineering information to ERP in the execution of manufacturing and purchase functions DMS (Document Management System). This system helps in keeping important document for viewing at later times. For the purpose of transaction handling this system some time have a facility of document modification, by giving textediting facility CMS (Communication Management Systems). The ERP uses CMS as a tool for all its communication needs of recording an event. This system is used for tracking the important resource for action. SMS (Security Management System). This system handles the security, entry access requirement of business operations.

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ERP System • ERP software is a family of software modules that support the business activities involved in these vital back-office processes. • For example, ERP software for a manufacturing company will typically track the status of sales, inventory, shipping, and invoicing, as well as forecasting raw material and human resource requirements. • Enterprise Applications/ Packages/ Suites/ Systems connects all of the information, which flows through a company to a single integrated set of systems. • This is implemented in modules, which can be integrated. • ERP may work with a wide variety of databases, hardware, and operating systems. • Leading Vendors of ERP are SAP, Oracle. • Originally. ERP packages were targeted at the manufacturing industry. •

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Their goal is to integrate information across the company and eliminate complex links between computer systems. The architecture is client/server and uses OO methodology for design and development of whole system. Key advantage of ERP is that it provides an integrated solution for all the requirements of the business. 20

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It takes care of organizational hierarchy of authorities Basically ERP solutions are based on Unix and Windows NT platform.

A typical ERP solution has following modules: • • • • • •

Marketing, Distribution and sales Manufacturing process Accounting and finance Personal management Planning and control Purchase and inventory

The modules are designed for following purposes: • • • •

Data capture from transactions Data transaction validation Analysis Updating and reporting of accounting

ERP Benefits • ERP offers lots of benefits to the implementing organization. • It helps for a manager to make decision at the right time. • This is possible when entire organization is sharing information and interprets in same perspectives. • The benefits of ERP can be classified in two categories: 21

• Tangible benefits (Those which can be measured in one form or other) • Intangible benefits (Difficult to measure in absolute terms) Reduction of lead-time • The elapsed time between placing an order and receiving is known as the lead-time. • In order to reduce lead-times, the organization should have an efficient inventory management system. • This inventory system is integrated with the purchase, production planning and production department. • The ERP systems help in automating this task and thus make inventory management more effective and efficient. • Doubled business • Increase of inventory turn to over 30% • Cycle time cut to 80% : • Cycle time is the time between receipt of the order and delivery of the product. • Make –to – order • Make –to – stock Going Live • The old system is removed and the new system is used for doing business.

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• Data conversion is done, databases are up and running. • Prototype is fully configured and tested and ready to go operational. So the system is live. The Risks of ERP Tied to a single vendor Flexibility limited by options offered by the vendor May inappropriately force generic processes May inappropriately force org. structure changes Complexity - particularly regarding mapping and standardizing processes across the organization • http://www.scribd.com/share/upload/13943727/j2h 12yra9gvetkw8xpu • • • • •

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