Management Information System of a Bus Company free essay sample

From its first invention which is known as â€Å"carriage† up to now Bus companies are still blending to the changing economy and responding to the needs and wants of its passengers. Management Information System is one of the new innovations of technology which is commonly used by most business firms and other institution. Bus companies also engaged in using Management Information System to its day-to-day operations. Applying systems and procedures to improve their services and making it effective and efficient for the benefit of the management and the valued passengers. MIS helps operators in transmitting information while in the road, easy access in reporting incidents and making the operation easier than before. This study will show how Management Information System being utilized in a Bus Operating company. MANAGEMENT INFORMATION SYSTEM OF A BUS COMPANY MODEL 1 The sculpt shows the Processes and Actors involved in a Bus Company. TICKETING SYSTEM YSY Passenger FINANCE SYSTEM PAYROLL SYSTEM OPERATION SYSTEM Employee MAINTAINANCE AND REPAIR SYSTEM HUMAN RESOURCE SYSTEM Bus Company composed of processes that affect the whole system of the operation of their services. The first process is the ticketing which involves the releasing of tickets to the passengers and where transaction scheduling is happening. Then, Finance process where allocating and disposing of funds occur, also the Payroll process in which the accounting and salary computation is being assessed and releasing of salaries with the connection of the third party which is the bank. Operation process is one of the most important courses to this type of business because their services depend on how the management information system is being applied. Renewal and maintenance of facilities are being monitored and also updating the availability of their assets is part of the Maintenance and Repair process. Lastly, the Human Resource process where management of the most sensitive asset of a business happen which is the man labor. To further explain and understand the whole Bus company system Model II is presented with specific details. MODEL II The following illustration elaborates the processes involved in the system to further show the whole operation of a Bus company. 2. 1 TICKETING SYSTEM OF A BUS COMPANY TICKETING Passenger ISSUANCE PAYMENT INSPECTION REMITTANCE Inspector Bus Conductor The identified actors in the ticketing system are the bus conductor, inspector and the passenger. Bus conductors has a range responsibilities of a bus operation, which include collecting fares, issuing ticket, helping passenger of their baggage, advising on destinations and ensuring the safety of passengers. In the ticketing process the bus conductor will receive a ticket from the ticketing outlet of a bus company. The ticket will be issued to the passenger and it will return with the passenger then they will give the fair to the conductor and they will issue the ticket to the passenger’s correctly and the last process, the conductor will remit the money to the ticketing outlet of the bus company. 2. 2 PAYROLL SYSTEM OF A BUS COMPANY DTR REQUEST DTR in Charge Employee BOOKEEPING Book Keeper COMPUTATION Deduction Officer RELEASING Bank Employee has a direct intervention to the process of DTR Request which is organized by the DTR in-charge of the man hour of employee, daily, bulk attendance and leave and other employee details so that it will be pass to the final form/list of employees to the bookkeeper which is in-charge of the bookkeeping process. The book keeper will itemized allotment of funds, time, and will budget the salary of employee, trial balance, and adjusting the accounts and keep detailed records of business transaction. Bookkeeping process has a direct intervention to the bank. Book keeper goes to bank and transfer funds from the employee into the bank account of the recipient. After this process, next will be the computation process. Deduction officer will subtract all the employee expenditures that can be deducted from their salary and breakdown all employees claim. After computation process the salaried employees list will pass to releasing officer. Finally, the employee can claim his salary. 2. 3 FINANCE SYSTEM OF A BUS COMPANY BUDGETING Budgeting Officer Accounting Clerk ACCOUNTING PROCUREMENT OF FUNDS Bank FINANCE amp; BANK ACCOUNTING Financial Manager Financial Analyst FINACIAL REPORTING Finance system involves processes that relates with the financial matters of a bus company. The processes include budgeting which is the first process of the system which the budgeting officer is in-charge of all the allocation of funds to different expenses then, accounting process which in this part the accounting clerk is responsible for relating the funds entries into the right figures. After accounting the procurement of funds is the next to the flow which is headed by the financial officer and also he is involved to the finance and bank accounting in which the bank and the company has a mutual agreement in funding a proposed expense. When all those process have been done then, financial reporting takes place in which the financial analyst evaluate all the financial transaction have been made in a particular time. 2. 4 OPERATION SYSTEM OF A BUS COMPANY SCHEDULING Scheduler Passenger TICKETING Conductor DISPATCHING Dispatcher Operations Manager DRIVING TO LOCATION Driver Bus operating system involves processes such as Scheduling where the scheduler is responsible for assisting the passenger in selecting the most convenient schedule for the passenger. Then, Ticket collecting will be the next process and the assigned officer is the conductor who’s responsible for collecting the tickets from the passengers upon entering the bus. When the bus has already reached its passenger capacity, the dispatcher takes place in dispatching the bus for travel. Lastly, the dispatcher gives the driver a signal to start the ride to the location. In every process the Operating manager intervenes to the operating system where he is checking every process to their services to ensure that his people is doing their responsibilities and to make sure that their facilities are still working in accordance to its use. That is the typical flow of a bus operation system. 2. 5 MAINTAINANCE AND REPAIR SYSTEM REPLENISHING MAINTAINANCE Maintenance Personnel UPGRADES DIAGNOSTICS REPAIR Applying an appropriate MIS to the maintenance and repair system of a bus company makes all the operation manageable. Through MIS it is easy to detect where the risk is coming from in which maintenance personnel is responsible for the physical condition of the tangible assets of the bus company. In this system the maintenance personnel must be dedicated to his job because the services of their business depend upon to how he took care of the utilities of the company. Replenishing, Upgrading and Diagnostics are the process involved in maintenance and repair system. 2. 6 HUMAN RESOURCE SYSTEM RECRUITMENT Human Resource Manager Training Manager UPDATING HUMAN RESOURCE RECEIVE REPORTS PERFORMANCE OF EMPLOYEEE APPRAISAL EVALUATION MONITORING Human resource plays an integral part in operating the business. This system involves processes such as Recruitment where screening and interviewing the applicant if they are capable and deserving to the type of position they admire to have. Then, updating Human Resource is next in which the data’s from recruiting the employee are compared to how the he is doing to his assigned task. After that is Receiving Reports from the training manager in which he gets data’s from updating the feat of the employee. Appraisal of the employees Performance is next to the process to which reviewing the employees performance to his job is being done. Next to Performance Employee Appraisal is evaluation where in the human resource manager will evaluate all the performance of the employee inside the operation and his behavior while at work. Lastly, monitoring the employee in his all day activity and observing if he is efficient and effective to his job. All of the processes are being intervened by the HR manager that he have to be careful in every steps he makes because HRM focuses on the most sensitive and critical assets in the company which are the employees . Case Study 1. Matters and information to be contained in the MIS of an accredited bus operator? Bus safety policy Bus Company must develop a safety policy which defines the safety aims and objectives of the organization. The policy articulates the organization’s commitment to risk management, the development of a positive safety culture and continuous safety improvement. The safety policy is reviewed every year by the management team. The review involves consultatio n with the Bus Company’s staff and any changes to the policy are submitted to the management team for approval. The safety policy is a controlled document, requiring the signature of the chief executive officer on behalf of the management team to take effect. The safety policy is displayed at various prominent locations around the organization so it is available to staff, passengers and the public. * Governance and internal control arrangements Governance The management team of a Bus Company is made up of the following positions: * chief executive officer (CEO) * manager * Supervisor. The management team is elected annually at the Bus Company’s annual general meeting. The management team reviews its standards and procedures on a regular basis at its monthly meetings in order to monitor the effectiveness of document control processes as well as other issues. Another standard genda item at the committee meetings is the review of the risk register. The supervisor provides an update on the risk register at each meeting and aspects of the risk register are discussed by the management team. The manager provides the CEO and management team with appropriate safety information to assist them in their decision making. The management team is provided with copies of internal audits to give them sufficient knowledge about the level of compliance displayed by the organization. Internal control arrangements The responsibility for implementing and maintaining the MIS at a Bus Company has been given to the manager. The overall management of operational safety is the responsibility of the supervisor, who has responsibility for applying risk management processes to maintain a safe operational and work environment. The major safety responsibilities and accountabilities within the Bus Company are set out in individual job descriptions. * Documented safety accountabilities and authorities Bus Company’s must have documented the job descriptions and safety relevant responsibilities for all job functions that complete bus safety work and had the position holder sign the document to signify they have read and understood their obligations. Bus safety worker competence Management team develops and regularly reviews position descriptions for all bus safety work. These reviews identify the competencies deemed necessary to ensure that persons undertaking the bus safety work have the knowledge, skills and experience to carry out their duties in a safe manner. All personnel hold safety qualifications an d/or competencies appropriate for their positions and are regularly assessed for necessary competencies related to their work responsibilities. Competencies and training requirements for bus safety workers are detailed in the training matrix with courseware, training materials, and assessment materials located in the training resources folder. Competency assessments are organized by the relevant managers and whenever possible, assessments are carried out using a registered training organization. In cases where there is no appropriate course available, assessments are carried out by people within the organization who have qualifications and/or experience in the field of expertise being assessed. Records of training and records of qualifications and competencies are held in personnel files in a secure location. * Incident reporting and investigation The manager has familiarized himself with the reporting criteria, as described in the Bus Safety Regulations 2010 (Vic) and printed a copy of the relevant section, which he keeps in a folder in his briefcase. He has produced a bullet point checklist which describes what he must do should an incident occur and placed this in the folder. When the manager takes leave, he delegates the reporting responsibility to his assistant manager and gives him/her the folder. Internal audits (a) Safety audit program The management committee is responsible for establishing and managing the annual audit program. Two levels of auditing may be undertaken: 1. Workers with relevant experience and knowledge of position responsibilities, but independent of the position being audited, carry out internal audits to ensure individuals who are assigned safety responsibilities are effectively carrying out their responsibilities. 2. Where appropriate, external auditors with relevant experience may carry out audits of specific MIS policies and procedures. Audits are conducted according to the audit procedure. The manager is responsible for internal audit arrangements and for reviewing the risk register to make sure high risks are given priority. (b) Audit scheduling The management team prioritizes the audit program, taking into account various factors, including: * previous audit findings and recommendations * recent safety performance * status and importance of activities to be audited * scope of previous audit * Industry trends. The program is run on a financial year basis according to a prepared audit scope planner. This schedule may vary as a result of changes to audit priorities or if additional audit requirements are identified. The audit schedule makes provision for all safety related activities to be audited at least once during every financial year. The audit program is monitored at meetings of the management team, which inspects the audit log to ensure audits are proceeding according to schedule. Annual audits are conducted to ensure the entire Management Information System is reviewed every year. (c) Audit reporting Audit findings are initially documented on an audit checklist and report form before being finalized on the audit report form with non-conformance/non-compliance report forms completed, as necessary. The scope for annual independent audits includes the requirement to provide a written audit report. Audit reports are given to the manager and are reviewed at management team meetings until all corrective action items have been completed. Where findings from audits require urgent attention the manager can assign corrective action items to the relevant workers or arrange to convene a management team meeting to review the findings and assign action. 2. Importance of MIS to safety information communication of a bus company? * Safety information communication To ensure the timely and effective communication of safety related information: * holds regular management team meetings and circulates the meeting minutes to all personnel * ensures that controlled copies of the MIS and all procedures and standards are readily accessible to personnel at relevant places throughout the business * regularly disseminates safety related information through regular newsletters * circulates safety bulletins to all operational staff when particular safety issues are identified, which may require an acknowledgement receipt to be returned * Uses electronic media, such as emails and the organization’s website, to disseminate information. If a bus operating company ensures that this information will be utilized in to their operating process is also having an assurance that their passengers are riding in with the safe hands. Efficient and effective way of serving people reflects to the feedback that would surely affect the whole operating process in the s afety information process of a bus company. 3. What is the common management information process of a credited bus company? Information management process (a) Document identification Controlled documents are allocated a unique identification number. Where there is more than one copy of a controlled document these are numbered in sequence. (b) Document registration and storage A document register is kept in the manager’s office and includes the following information as a minimum: * unique document number * title of document, standard, procedure or form * person responsible for maintaining document * issue date * document status, for example, draft, revision number, superseded or obsolete * risk register cross reference, where appropriate * retention period * Disposal protocol. The safety records retention schedule lists the records to be retained, how long these are to be retained and the name of the manager or supervisor who is responsible for monitoring storage and retention. Hard copy records are kept in the manager’s office for the required period and then either retained or destroyed and the safety records retention schedule updated accordingly. Documents are securely stored to guard against the risk of loss through deterioration or damage. Electronic records are backed up. Back-up records are kept secure at a location remote from the main office, where the master records are kept. (c) Document and data approval and issue The manager reviews and approves all new and amended bus safety documents before they are issued. The manager records that review and approval has taken place by signing the relevant column of the document control form at the front of each master control document. The identity of individual holders of manuals and procedures is recorded on the document control form at the front of each controlled master copy. The manager distributes controlled documents by hand to each person on the document distribution list for storage in agreed locations, for example, workshop, and company office. The manager removes obsolete documents and then updates the document register to indicate the current status of each document. (d) Document changes The relevant supervisors are responsible for issuing any amendments to the documents for which they have responsibility to the manager for inclusion in controlled manuals and for distribution to workers as appropriate. Amendments to documents are identified by the inclusion of a vertical line in the margin against each paragraph containing current changes in the revised version. When subsequent amendments are required the vertical lines against the previous amendments are deleted and new vertical lines included against the current changes. Any amendments to bus safety documents are reviewed and approved by the management team. 4. How do a Bus Company Established Customer needs regarding to the improvements of their travel services? There are numbers of factors to be considered in establishing the passenger needs. Determining what it is that customers actually want in terms of passenger information and the overall journey experience. Identifying the passenger profile and how information needs and expectations change depending on day, date and time. Reviewing strategies that have been implemented for engaging with the customer and enhancing experience based on an understanding of their needs. Also, highlighting the ongoing strategy for coping up with changing customer preferences and expectations is also being measured to. Determining what information passengers actually want, need and expect to improve the entire journey experience. Reviewing the different mediums that are used to engage with passengers to extract useful and useable data about their expectations Exploring passenger information services and initiatives that have been implemented based on an understanding of customer needs. Revealing current view of customer expectations regarding information is one of the measurement in establishing costumer needs. 5. Why there is a need to improve and develop manual transaction processing into MIS processing conforming service quality to passengers? Bus Company now a day is also using high definition technology for their advantage in giving efficient and effective services for their valued passengers. In developing manual transaction to new technology system which is the Management Information system which denotes that the company is responding well to the needs and wants of the passengers. Modern businesses have been leveraging management information systems (MIS) to manage order, organize and manipulate the gigabytes and masses of information generated for various purposes. MIS helps businesses optimize business processes, address information needs of employees and various stakeholders and take informed strategic decisions. However, budget allocation and monitoring issues can affect the efficacy of MIS. MIS have changed the dynamics of running businesses efficiently. Decentralization is one of the biggest advantages; it allows monitoring of operations at low levels and frees up resources for departmental managers to devote time to strategic activities. Coordination of specialized projects and activities is much better and decision makers in the organization are aware of issues and problems in all departments. 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