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Manufacturing Information System Definition (same components as marketing) A computer-based system that works in conjunction with other functional

l information systems to support the firm's management in solving problems that relate to manufacturing the firm's products n The marketing function of a business is responsible for selling goods and services. n Marketing information systems assist in the marketing function. n 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. n Billing and inventory control are also sometimes considered marketing inform systems. n The manufacturing function is concerned with the production of goods that the business sells. n Manufacturing information provide services to support the manufacturing function. n Inventory control is often considered to be a manufacturing information system because manufacturing produces the goods for inventory. n 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. 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 scheduling 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. n

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

Accounting Information System n Data collection terminals Track material flow Gather job data (job reporting) Gather attendance data (attendance reporting) Location of Data Collection Terminals

Industrial Engineering Subsystem n The industrial engineer n Studies physical and conceptual systems n Sets production standards Manufacturing Intelligence Subsystem n Can be viewed in terms of environmental contacts n Labor unions (personnel flow) formal and informal systems personnel information union contract compliance n Suppliers (material and machine flow) Production Subsystem Used to: 1. Build production facilities 2. Operate production facilities n Production schedule determines when the production steps are performed n Track expected and actual completion times

Inventory Subsystem n Importance of determining the inventory level n Maintenance cost (carrying costs) n Purchasing costs n Economic Order Quantity (EOQ) n Economic manufacturing quantity (EMQ)

Quality Subsystem n Demings fourteen points; maintained that it is not workers but management that determines quality n Total quality management (TQM) n Elements of TQM zero defects quality at the source Cost Subsystem n Periodic reports n Required ingredients 1. Standards 2. Information

How Managers Use the Manufacturing Information System