Manufacturing Information System

Manufacturing Information System

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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

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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

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The manufacturing function is concerned with the production of goods that the business sells. Manufacturing information provide services to support the manufacturing function. Inventory control is often considered to be a manufacturing information system because manufacturing produces the goods for inventory. system in some businesses.

s Purchasing may also be a manufacturing information

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 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 businesss 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 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 to be 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
Accounting information system Internal sources Industrial engineering system Environmental sources Manufacturing intelligence subsystem

Output subsystems
Production subsystem

Data Information

D A T A B A S E

Inventory subsystem
Users

Quality subsystem Cost subsystem

Accounting Information System

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Data collection terminals

Track material flow Gather job data (job reporting) Gather attendance data (attendance reporting)

Receiving area Receiving inspection Raw-materials storeroom

Location of Data Collection Terminals

Terminal

8 9 10

Shop floor area

7

Finished-goods storeroom Shipping area

11

12

Industrial Engineering Subsystem

The industrial engineer s Studies physical and conceptual systems s Sets production standards
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Manufacturing Intelligence Subsystem

Can be viewed in terms of environmental contacts s Labor unions (personnel flow)
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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 Production schedule determines when the production steps are performed s Track expected and actual completion times

Job Flow Through the Plant

Plastic top Step 5

Raw materials inventory Attach switch

Install bulb

Plastic cylinder

Step 6

Install reflector

Step 7 Step 2 Step 1

Attach spring
Step 8

Install red lens

Install clear lens

Step 3

Step 4

Step 9

Attach strap

Add batteries
Flashlight

Put top on cylinder Finished goods inventory

PRODUCTION AREA

Inventory Subsystem
Importance of determining the inventory level s Maintenance cost (carrying costs) s Purchasing costs s Economic Order Quantity (EOQ) s Economic manufacturing quantity (EMQ)
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Quality Subsystem
Demings fourteen points; maintained that it is not workers but management that determines quality s Total quality management (TQM) s Elements of TQM
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zero defects quality at the source

Cost Subsystem
Periodic reports s Required ingredients 1. Standards 2. Information
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How Managers Use the Manufacturing Information System

Subsystem

User
Vice president of manufacturing Other executives Plant Superintendent Manager of planning and control Manager of Engineering Manager of quality control Director of purchasing Manager of inventory control Other managers

Inventory
X X X X

Quality
X X X X X

Production
X X X X

Cost
X X X X

X X X X X