Manufacturing

Information
System
 Manufacturing Information
System

■ 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

■ 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
■ 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.
■ 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 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
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
Output
Input subsystems Data Information

subsystems
Accounting Production
information subsystem
system
Internal D
sources A Inventory
subsystem
Industrial T
engineering Users
system
A
B Quality
Environmental subsystem
sources
A
S
Manufacturing
intelligence E Cost
subsystem subsystem
Accounting Information System

■ Data collection terminals

– Track material flow
– Gather job data (job reporting)
– Gather attendance data (attendance reporting)
 Location of
Receiving area 1 Data Collection Terminals
Receiving Terminal
inspection 2

Raw-materials
storeroom 3 4 5

6
8

9 Shop floor area

7
10

Finished-goods
storeroom 11

Shipping area 12
Industrial Engineering Subsystem

■ The industrial engineer

■ Studies physical and conceptual systems
■ Sets production standards
 Manufacturing Intelligence
Subsystem
■ Can be viewed in terms of environmental
contacts
■ Labor unions (personnel flow)
– formal and informal systems
– personnel information
– union contract compliance
■ Suppliers (material and machine flow)
 Production Subsystem

Used to:
1. Build production facilities
2. Operate production facilities
■ Production schedule determines when the
production steps are performed
■ Track expected and actual completion times
 Job Flow Through the Plant
Plastic top Step 5 Install bulb
Raw
materials
inventory Plastic
cylinder Step 6 Install reflector

Attach switch
Step 7 Install red lens
Step 2 Step 1 Attach spring

Step 8 Install clear lens

Step 3 Step 4
Step 9
Put top on
Attach strap Add batteries cylinder
Flashlight
Finished
PRODUCTION AREA
goods
inventory
 Inventory Subsystem

■ Importance of determining the inventory

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

■ Periodic reports
■ Required ingredients

1. Standards
2. Information
 How Managers Use the
Manufacturing Information System
Subsystem

User Inventory Quality Production Cost

Vice president of manufacturing X X X X

Other executives X X X
Plant Superintendent X X X X
Manager of planning and control X X
Manager of Engineering X X X

Manager of quality control X

Director of purchasing X X
Manager of inventory control X X
Other managers X X X