ROLE OF MIS IN

MANUFACTURING
SECTOR
Introduction
Definition of
Manufacturing Sector
Agglomeration of industries engaged in
chemical, mechanical, or
physical transformation of materials,
substances,
or components into consumer or industri
al goods.

“According to some
economists,
manufacturing is a wealth-
producing
sector of an economy, whereas
a service sector tends to be
wealthconsuming
sector.”
 Global Manufacturing
Sector
• China ranked most competitive
manufacturing nation in the World manufacturing
world industry and type of
economy:
• China exports toys, apparel &
electronic products Capitalist economy
Collectivist economy
• Germany is the 2nd & US is Modern economy
3rd most
competitive in this sector
• India & Brazil moving up
to capture
2nd & 3rd slot

• The market in this sector

demands
Talent-driven Innovation
 Indian Manufacturing
Sector
• According to India
Brand
Equity Foundation,
India’s
manufacturing sector
contributes about 16% to
GDP
• India was ranked the 4th most
competitive manufacturing
nation in Deloitte’s Global
Index for 38 nations
• India`s manufacturing sector
can reach US$ 1 trillion by
2025, as predicted by McKinsey
& Co.
Source: http://www.financialexpress.com/article/fe-
columnist/data-drive-global-lessons-forindias-
manufacturing/13782/
 Manufacturing Information System
The information needs were and are always there. Information systems use
d to exist when computerised
environments were not available. Automation has enhanced the availabilit
y of information.
Every industry has its own departmental structure which gives rise to
a different set of sub-systems as part
of the information system. Here we would consider the sub-systems of a
manufacturing system only.

Following are the sub-systems of an information systems:

•Raw Material Procurement Sub-System
•Inventory Sub System
•Production Sub System
•Maintenance & Scheduling Sub System
•Quality Sub system
•Costing Sub System
 • Raw Material Procurement Sub-System
With higher customer expectations, every organization wants to efficiently manage 
its suppliers and otherinternal processes. Supply chain management spans all mov
ement and storage of raw materials, work-in-
process inventory, and finished goods from point-of origin to point-of-
consumption. A procurement system should help in improving the supply chain of
the organization.
•Inventory Sub System
Inventory subsystem focuses onmaintaining records and movements on inventory levels 
and usage. Thiscontrol of inventory is critical to the organization since money lock
in of raw materials purchase represents
substantial investment. Timely production of finished goods require availability of right
quantity of material,maintenance of right stock levels, determination of lead times and fl
ex times and exchange of information with supplier at
the right time.An inventory subsystem helps us to address these issues. Inventory
subsystems are critical where the organization is following Just in Time approach ­
a philosophy whichencourages zero tolerance for stock levels and placing orders exactly 
when they are needed for
manufacturing.
 •Production sub-systems
It can be seen as the most critical part of the entire
manufacturing sub system. Basically it tracks the flow of
the job through the
entire production process. It also records change in form of goods or transfer of goods
from one place to the other

•Maintenance & Scheduling Sub System

For efficient production, the machines should
be timely available. Many a times, the machine is under repair
and is not available to
be used for production. Without this subsystem, there is a possibility
of customer's
orders not being met on time. Certain issues that can be
very important are
•Quality Sub system
This subsystem ensures the production made and end product being
delivered to the customer are
conforming the quality standards set by
the company. Quality covers aspects for the organization like better
quality raw materials and what is being purchased is according to
organization's standards and improved
finished goods in accordance with the customer specification.

•Costing Sub System
Costs are incurred more frequently in a
manufacturing entity. Monitoring these costs on regular basis
requires instituting a formal cost subsystem. Cost sub systems ar
-e responsible for generation of cost reports
which represent cost break ups on various bases, for instance
o  Machine usage basis
o  Product basis
o  Department wise
 Transaction processing
system
A transaction process system (TPS) is an information processing system
for business transactions involving the collection, modification and
retrieval of all transaction data. Characteristics of a TPS include
performance, reliability and consistency.

TPS in Toyota
The Toyota Production System (TPS) is an
integrated socio-technical system, developed
by Toyota, that comprises its management
philosophy and practices. The TPS organizes
manufacturing and logistics for the
automobile manufacturer, including
interaction with suppliers and customers. The
system is a major precursor of the more
generic "lean manufacturing".
 Decision Support System
A decision support system (DSS) is a computerized program used
to support determinations, judgments, and courses of action in an
organization or a business. A DSS sifts through and analyzes massive
amounts of data, compiling comprehensive information that can be used
to solve problems and in decision-making.

DSS in Toyota
Toyota uses warehouse management system. It is used because the knowledge
generated from it is used indecision making process.

It primarly aims to:

•Control the movement and storage of materials within a warehouse.
•Process the assosiated transactions including shipping, receiving, put away and
packing.

Toyota warehouse system combined with the logistic equipment of toyota material
handling company, they are able toprovide customers with optimized logistics
solutions at their worksite.
 Knowledge management
system
A knowledge management system comprises a range of practices used in an
organization to identify, create, represent, distribute, and enable adoption to
insight and experience. Such insights and experience comprise knowledge,
either embodied in individual or embedded in organizational processes and
practices
 KMS at Boeing
Knowledge management, loosely defined, is a disciplined, holistic approach
to using expertise effectively for competitive advantage. At Boeing,
knowledge management is made up of a comprehensive system of
processes, tools, methods and techniques that enable employees to
capture and share information effectively.

“Raw data, when organized, becomes information that, when put into
context, becomes knowledge,” said Jeanne Blue, Commercial Airplanes
Technical Excellence and Knowledge Management, at a knowledge
management forum this year. “Knowledge, when fine-tuned and combined
over time with practical experience and prudence, becomes wisdom.
Sharing and leveraging wisdom across the organization leads to innovation
and a competitive advantage for Boeing.”

Different knowledge level management systems are:

•Integrated defense system
•Internal wiki system
•Your Encore
•Initiative Database