Manufacturing Information System

Manufacturing Information System

Manufacturing Information System s

Definition (same components as marketing)  –  A computer-based system that works in conjunction with other functional information systems to support the firm's management in solving problems that relate to manufacturing the firm's products

Marketing Information Systems s

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The marketing function of a business is responsible for  selling goods and services. Marketing information systems assist in the marketing function. From the systems disused previously, order entry usually is considered a marketing information system because customer orders are procured (obtained) by salespeople working in the marketing function. Billing and inventory control are also sometimes considered marketing inform systems.

Manufacturing Information Systems s

The manufacturing function is concerned with the  production of goods that the business sells.

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Manufacturing information provide services to support the manufacturing function.

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Inventory control is often considered to be a manufacturing information system because manufacturing  produces the goods for inventory.

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Purchasing may also be a manufacturing information system in some businesses.

Other common marketing information systems are:

Sales analysis: This system determines which products are selling well and poorly, which sales regions have the best and worst sales, which salespeople salespeop le are selling the most and the least, and so forth. A sales forecasting . The purpose of this system is to project future sales.  Marketing research: This system analyzes information gathered about

consumers and products in order to identify trends.

Other common marketing information systems are:   Direct mail advertising: This system prepares advertising pieces for  mailing directly to potential customers. Electronic commerce. This system uses the World Wide Web to advertise and sell a business’s goods and services.

Sales force automation: This system, which is also called customer relationship management (CRM),  provides information, usually through notebook computers and others mobile devices that can   be connected to a central computer, to help sales representatives keep track of  customers and sales .

Some other common manufacturing information systems are: Production scheduling: This system schedules the use of  manufacturing facilities to produce products most efficiently. Material requirements planning (MRP): The purpose of this system is to determine what parts and materials will be needed during the manufacturing process and when they will be needed. Manufacturing resource planning (MRP II): This system is called MRP II to distinguish it from materials requirements  planning. It combines MRP with production schedul-ing and a nd and other functions in a comprehensive manufacturing information system.

Just-in-time (JIT) inventory management: This system is a form of inventory control in which parts and materials are scheduled to arrive from suppliers just before they are needed in the manufacturing process. Computer-aided design (CAD): This system involves using computers to assist in the design of products pr oducts to be products manufactured. Computer-aided manufacturing (CAM): This system involves using computers to control machines in the manufacturing  process.

Robotics:This system uses computer-controlled robots in the manufacturing process Computer-integrated manufacturing (CIM): This system combines many of the other manufacturing systems into a single system. Supply-chain management: This system manages the movement of materials and products from suppliers through manufacturing and distribution to retailers

A Model of a Manufacturing System Input subsystems

Industrial engineering system Environmental sources Manufacturing intelligence subsystem

Data Information

Production subsystem

Accounting information system Internal sources

Output subsystems

D A T A B A S E

Inventory subsystem Users

Quality subsystem

Cost subsystem

Accounting Information System s

Data collection terminals  –  Track material flow  –  Gather job data (job reporting)  –  Gather attendance data (attendance reporting)

Receiving area

1

Receiving inspection

2

Raw-materials storeroom

3

Location of  Data Collection Terminals Terminal

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8

5

6

Shop floor area

9

7 10

Finished-goods storeroom

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Shipping area

12

Industrial Engineering Subsystem s

The industrial engineer 

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Studies physical and conceptual systems

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Sets production standards

Manufacturing Intelligence Subsystem s

Can be viewed in terms of environmental contacts

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Labor unions (personnel flow)  –  formal and informal systems  –  personnel information  –  union contract compliance

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Suppliers (material and machine flow)

Production Subsystem Used to: 1. Build production facilities 2. Operate production facilities s

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Production schedule determines when the  production steps are performed Track expected and actual completion times

Job Flow Through the Plant Raw materials inventory

Plastic top

Step 5

Install bulb

Plastic cylinder 

Step 6

Install Install reflector 

Step 7

Install red lens

Step 8

Install clear lens

Attach switch Step 2

Step 3

Attach strap

Step 1

Step 4

Attach spring

Step 9

Put top on cylinder  cylinder 

Add batteries Flashlight

PRODUCTION AREA

Finished goods inventory

Inventory Subsystem s

Importance of determining the inventory level

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Maintenance cost (carrying costs)

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Purchasing costs

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Economic Order Quantity (EOQ)

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Economic manufacturing quantity (EMQ)

Quality Subsystem s

Deming’s fourteen points; maintained that it is not workers but management that determines quality

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Total quality management (TQM)

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Elements of TQM  –  zero defects  –  quality at the source

Cost Subsystem s

Periodic reports

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Required ingredients 1. Standards 2. Information

How Managers Use the Manufacturing Information System Subsystem

User

Inventory

Quality

Production

Vice president of manufacturing

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X

X

Other executives

X

X

Plant Superintendent

X

X

Manager of planning and control

X X

Manager of quality control

X X

Manager of inventory control

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Other managers

X

X X

X

X

X

Manager of Engineering

Director of purchasing

Cost

X

X

X X X

X