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Information System for Manufacturing-Geo Raju-MNIT-Jaipur

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Presented By:GEO RAJU(2012PMM5114)MANOJ MEENA(2012PMM5088)

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An information system(IS) is typically considered to be a set of interrelated elements or componentsthat collect(input), manipulate(processes), and disseminate (output) data and information andprovide a feedback mechanism to meet an objective.

Raw facts such as an employee’s name and number of hours worked in a week, inventory part

numbers or sales orders.

A collection of facts organized in such a way that they have additional value beyond the value of the

facts themselves.

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A computer based system that works in conjunction with other functionalinformation systems to support the firm’s management in solving problems that

relate to manufacturing the firm’s products. 

Fig : Model of a Manufacturing System 3

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• Executive Support Systems (ESS)• Management Information Systems (MIS)• Decision Support Systems (DSS)• Knowledge Work Systems (KWS)• Office Automation Systems (OAS)• Transaction Processing Systems (TPS)

Table : Characteristics of Information Processing System5

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There are two types of TPS: Batch processing Real Time processing

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In the firm collects data from transactions as they occur, placing them in groups or batches. The system then processes the batches periodically.e.g. : Payroll, cheque, billing for electricity, telephone etc. 

In data are processed as soon as a transaction occurs..e.g. : ATMs, airline reservation, library system etc.

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 : Integration of a Firm’s TPSs 10

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Schematic diagram of Payroll System :

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Point-of-Sale Transaction Processing System :

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Customer’s 

receipt

Inventorydatabase

Management

informationsystem

Exception

report

Purchases

database

Scanner

Point-of-sale

transaction

processing

system

Item

database

UPC andquantity

Item, quantity,date, time, price

UPC Price

UPC

Quantity,Date,

time

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Competitive Advantage Example

Customer loyalty increased Use of customer interaction system to monitor and track eachcustomer interaction with the company.

Superior service provided to customers Use of tracking systems that are accessible by customers todetermine shipping status.

Better relationship with suppliers Use of an internet marketplace to allow the company to purchaseproducts from suppliers at discounted prices.

Superior information gathering Use of order configuration system to ensure that productsordered will meet customer’s objective. 

Costs dramatically reduced Use of warehouse management system employing scanners andbarcoded product to reduce labor hours and improve inventory accuracy.

Inventory levels reduced Use of collaborative planning, forecasting, and replenishment toensure the right amount of inventory is in store.

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Computer systems, such as word processing, electronic mail system, and scheduling system,that is designed to increase the productivity of data workers in the office.

Benefits of OAS : Increase accuracy of communication flows. Decrease cycle time between preparation of messages and receipt of messages at the

recipient’s end.  Decrease cost of office communication in terms of time spent by executives, cost of 

communication links etc.

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Knowledge-level

Documents;schedules

Documentmanagement;scheduling;communication

Documents;schedules;mail

Clericalworkers

Word processing;document imaging;electronic calendars

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Common

Automate

Quick copies

Capture/Store

Remote access

Email, Fax,Voice-mail Audio/Video

Pre-recorded

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Information system that aids knowledge workers in the creation and integration of new knowledge in the organization.

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Knowledge-level

Designspecifications;knowledge base

Modeling;simulations

Models; graphics

Professionals;technical staff 

Engineering workstations; graphics workstations;managerial workstations

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Computer Aided Design(CAD) Systems : automate the creation and revision of designs, using computers and sophisticated

 graphics software. Provide engineers, designers, and factory managers with precise control over

industrial design and manufacturing. 3ds Max(Autodesk ), Blender(Blender Foundation), Inventor(Autodesk ), Solid

Edge(Siemens PLM Software)

Virtual Reality Systems : Have visualization, rendering, & simulation capabilities that go far beyond those of 

conventional CAD system. use interactive graphics software to create computer generated simulations that are so

close to reality that users almost believe they are participating in a real worldsituation.

Provide drug designers, architects, engineers, and medical workers with precise,photorealistic simulations of objects.

Investment Workstations : High-end PCs used in financial sector to analyze trading situations instantaneously 

and facilitate portfolio management.

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Information system at the management level of an organization that combines data andsophisticated analytical models or data analysis tools to support semi-structured andunstructured decision making.

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Management-level

Low-volume data ormassive databasesoptimized for dataanalysis; analytic modelsand data analysis tools

Interactive;simulations,analysis

Special reports;decision analyses;responses to queries

Professionals;staff managers

Semi-structured

Sales andMarketingsystem

Productionsystem

Finance system Accounting system HumanResourcessystem

Majorapplicationsystems

Sales regionanalysis

Productionscheduling

Cost analysis Pricing/profitability analysis

Contract costanalysis

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Fig :19

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Information system at the management level of an organization that serves the functions of planning, controlling, and decision making by providing routine summary and exceptionreports.

Fig

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Management-level

Summary transaction data;high volume data;simple models

Routine reports;simple models;low-level analysis

Summary andexception reports

Middlemanagers

Structured,semi-structured

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Fig

Sales andMarketingsystem

Production/manufacturingsystem

Finance system Accountingsystem HumanResourcessystem

Salesmanagement

Inventory control

Annualbudgeting

Capitalinvestmentanalysis

Relocationanalysis

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Information system at the strategic level of an organization that address unstructureddecision making through advanced graphics and communications.

Fig

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Strategic level Aggregate data;external,internal

Graphics;simulations;interactive

Projections;responses toqueries

Seniormanagers

Highly unstructured

Sales and

Marketingsystem

Production

system

Finance system Accounting

system

Human

Resourcessystem

5-year salestrendforecasting

5-yearoperating plan

5-year budgetforecasting

Profit planning Manpowerplanning

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Integrated programs that can manage acompany’s entire set of business

operations Often coordinate planning, inventory

control, production and ordering

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Purpose: facilitate the production of goods Inventory systems

Inventory control: and policy (track goods and materials into, out of,and between inventories use UPC and RFID)

Inventory management: use past data to compute stocking levels,reorder levels, and reorder quantities in accordance with inventorypolicy

Just-in-time (JIT) inventory policy: have production inputs (both rawmaterials and work in process) delivered to the production sitewhenever is needed to reduce the inventory to the minimum

Manufacturing planning systems: plan materials, equipment,people, and facilities for manufacturing Bill of material (BOM): a list of every materials that comprise a

product

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Manufacturing scheduling systems: create a masterproduction schedule (MPS) Push Manufacturing process

Pull Manufacturing process Material requirement planning (MRP): only for materials

Manufacturing resource planning (MRP II): for materials,personnel, and machinery and what-if analyses on

variance in schedules Manufacturing operations: to control machinery

and production process (robots)

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Radio frequencyidentification tags (RFID)are becoming a popular

way to track inventoryitems. RFID tags aresmall computer chipsembedded in containers,products, or equipment.Data are transmitted

from the tags to sensorsthat provide computerprocessing support forinventory management.

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This figure shows

how a bill of 

materials helps trackvarious components

needed tomanufacture a

product.

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The figure below is a

sample

manufacturing planthat a manufacturing

information systemmight produce.

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Integrate all of the organization’s principal processes such asSAP

Outgrowth of MRP II manufacturing systems formanufacturing company

Characteristics A cross-functional, process view of the entire organization A collection of interrelated activities within the entire organization A formal approach based on documented and tested business models A comprehensive set of inherent processes for all organizational

activities SAP defines the set as the process blueprint and documents each

process with diagrams with standardized symbols A centralized database

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Problems Difficult to implementing

Process change challenges

Cost: new hardware, software, procedures, employee training,

converting data, and Other developmental expenses Time

Benefits Efficient business processes

Inventory reduction

Lead time reduction

Improved customer service

Greater, real-time insight into organization

Higher profitability

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Implementation Top executive total support

Model the current business processes

Compare these processes to the ERP blueprint processes and note the

differences Eliminate the differences by either changing the existing business

process to match the ERP process or altering the ERP system

Train users on the new processes, procedures, and to use of the ERPsystem features and functions

Conduct a simulation test of the new system to identify problems Convert its data, procedures, and personnel to the new ERP system

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AGerman software company whose products allowbusinesses to track customer and business interactions.SAP is especially well-known for its Enterprise Resource

Planning (ERP) and data management programs. SAP isan acronym for Systems, Applications and Products.A sound foundation is necessary to compete and win in the globalmarketplace. The SAP ERP application supports the essential

functions of your business processes and operations efficientlyand are tailored to specific needs of your industry.

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Baan was a vendor of enterprise resourceplanning (ERP) software that is now ownedby Infor Global Solutions.

Baan or Baan ERP was also the name of theERP product created by this company

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The Baan Corporation was created by Jan Baan in 1978in Barneveld, Netherlands, to provide financial and

administrative consulting services. With the developmentof his first software package, Jan Baan and his brotherPaul Baan entered what was to become the ERP industry.The Baan company focused on the creation of enterprise

resource planning (ERP) software.

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You need to grow your business without toomuch risk. Global business opportunities lookpromising to you, but they also add

complexity that you'd rather avoid. You need solutions that help you: Deal with continuous change. See your entire business through a single

lens. Serve customers anywhere in the world. Manage your suppliers effectively.

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You get the best possible combination of powerand clarity with Infor ERP Baan, the solutiontrusted by thousands of companies worldwide.With options that help you handle nearly every

challenge, it's the solution that will help yourbusiness face the future. 

Infor ERP Baan helps you:  Manage multiple sites easily.

Manage all of your business functions. Tailor your system to meet your specific needs. Produce more with your existing resources

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http://www.sap.com/solutions/business-suite/erp/index.epx 20/10/2011 

http://www.infor.com/product_summary/erp/erpbaan/ 10/10/2011

M.Mahajan,introduction to the industrial

engg. ,2002 DP Goel,MIS,pearson,1998

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