SAITO ELECTRONIC COMPANY

VP of
Manfucaturing
Company Manufacturing Manufacturing
IS Performance
Objectives Objectives Information
Criteria
Needs
COMPANY OBJECTIVES MANUFACTURING OBJECTIVES
1- To offer a balanced package of 1- Make efficient use of manufacturing
consumer products resources
2- To maintain a position of leadership 2- Maintain product quality
3- To identify new consumer needs 3- Right quantity at the right time to
4- To strenghten and maintain meet sales forecast
community and employee 4- Safe working condisitons for
relationships employees

Company Objectives Manufacturing Objectives

1 1

2 2

3 3

4 4

 Since company objective 3 is related with marketing, it is not related with any of the
manufacturing objectives.
 Balanced package of consumer products mean that the company has a wide array of
products, and how many to produce from each should be balanced.
VP of Manufacturing’s information needs:
1- Manufacturing objective 1 information needs
 MRP and CRP
2- Manufacturing objective 2 information needs
 High quality raw material vendors
 3- Manufacturing objective 3 information needs
 Production schedule
4- Manufacturing objective 4 information needs
 Statistics on accidents
 Vendor selection information needs:
1- Up to date financial information
 Shows financial health’s of vendors
 If the vendor is not financially stable, it may be not able to supply my material
2- Up to date price list
Consider them together pick the highest quality with lower price
3- Quality records
4- Lead/delivery time records
 On-time delivery is important
5- Order quantity records of the vendor
 Did they delivery the right quantities?
6- Shipment costs
 Learn it if it is not already included in the price
7- Alternative shipment methods
8- Price fluctuations of vendor
 Do not choose a vendor whose price fluctuates frequently
9- Up to date quantity discounts
 IS performance criteria for vendor selection:
1- Sorting variable should be ‘’material’’
 Since all materials are not supplied by all vendors, so we need to sort by material to
material in order to compare suppliers of it.
2- A general report that include all vendor information needs should be prepared
3- For lowering the possible vendor numbers to a manageable number to compare,
some additional criteria should be implemented
 The system should automatically delete the vendor which do not meet criteria.
 For example, a criter can be maximum delay is 1 week, and suppliers whose delay is more
than 1 week will automatically deleted by the system.
 IS performance criteria for statistics on accidents
1- Accident reports
2- Where the accident happened
3- When the accident happened
4- The cause of the accident
 Determine whether the cause is ‘’preventive’’ or ‘’accidental’’
 If the cause is preventive, decide whether it can be prevented via maintenance
5- Maintenance record of equipment
6- Resulting cost in the lost production hours
7- Cost of medical interventions
8- Time needed for worker to recover
9- Department safety rank report
 It is not fair to reward departments according to their safety because some departments are
obviously less risky than others.
 Production area ---> High risky
 Warehouse ---> Less risky
 Using only accident statistics for rewarding is not a good system because:
  It doesn’t mean that less injuries indicate a safer department.
 For example, production department may have 2 critically injured employee and
warehouse can 10 lightly injured employee. It is not fair to reward production department
since it only has two injuries.
 There is a frequency difference between accident statistic reports (monthly) and ranking
reports (weekly)
 These reports frequency should be equal to each other, they should be parallel
 If our maintenance activities are done monthly, we need to get monthly accident
statistics and ranking reports.
 In addition to these reports, we can also get shift-based accident reports.
 Manufacturing objectives of Saito are sufficient to cover information needs of VP of
Manufacturing.

Master Material
Forecast (or Aggregate Plan
Production Requirements Scheduling
actual demand) (long-term)
Schedule (MPS) Plan (MRP)
 IS performance criteria for MRP and CRP:
1- Below materials
2- Check inventory to see how many raw materials (resource) you have
3- Delivery lead time of supplier
4- To decide capacity use time as measure
5- Machine hours available
6- Worker hours available
7- The time it takes to produce a product
8- Utilization rate of machines
 Not all machines work at 100% capacity.
9- Exception report for delivery time of suppliers
 IS performance criteria for scheduling:
1- Status of shop floor (work-in-process status)
2- Quality information about scrap and reworked products
 If you cannot fully define your information needs, your IS criteria will not perform correctly
to make correct decisions.