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Production Information System
This information system is used by the production managers to control the production activities of an organization. Production is an important activity which is related to the manufacturing of product using the available raw materials.
All the organization do not produce products since some of the organizations are in service sector, or in trading etc.
So in other words we can say that production is the process of transforming the inputs into the outputs may be in form of a product, a service or some advice etc.
Some of the important functions related to the production system are
1. To produce the goods and services at the minimum cost and according to the demand schedule.
2. To improve the inventory management based on the timing of the material needs to the production schedule. Materials requirements planning module is used for this purpose.
3. Maintaining a complete description and specifications of the manufacturer's products. It also keeps control over the definition of parts and subassemblies used in the manufacturing process. Generally bills of material module is part of the production information system which is used for this purpose.
4. To process the goods according to the design specifications and quality specifications.
5. To identify the productivity problems and to improve the use of labor resources. Labor performance module is used for this purpose in the manufacturing information system and it keeps track of the employee production statistics.
6. Product design is another important function of the production system. Product design phase involves the activities such as preparation of the product design drawings, involved in the product. Design engineering module is used for this purpose and it maintains specifications required to produce a manufacturers products. CAD/CAM software are widely used in this module.
7. Deciding about the layout and location of the manufacturing unit is another important decision of the production system. The location of the unit is directly related operating costs, shipment costs etc.
8. The design of the manufacturing unit and the decision about the no. Of machines and equipment and other services in unit should also be done according to the latest operation research techniques. All these decisions lead to free flow of material inside the production unit.
9. Production planning is another important activity which involve the routing and loading. For the good production plan the production unit should know the schedule of starting any production activity and also the route through know the raw material will travel inside the production unit so that it is effectively transformed into the product or some service. Shop floor control module is used in the manufacturing information system to maintain shop order routing and controls.
10. Product control activity is related to the control over the production operations so that the product is produced at the right time with right quality and quantity.
Production Information System is used by the production managers to efficiently control the above mentioned function of the manufacturing process in an organization.
The main goal of this information system to improve quality, decrease production costs, to reduce engineering development time etc. Like another information system the production information system processes a lot of data related to the manufacturing process to provide the useful information related to production process.
The input data to a manufacturing information system involves the inventory data such as inventory of raw materials, processed goods and finished goods. It also uses suppliers data such as source of materials and their supplies etc. Some another useful and necessary inputs to the production information subsystem are data about the work force and the performance, technology trends, raw materials prices, production orders, finished orders etc.
Some of the important modules which can be part of the manufacturing information system are
- Production scheduling module
- Design engineering module
- Manufacturing inventory control
- Shop floor control
- Capacity requirements planning
- Material requirements planning
- Labor performance
The different modules of the manufacturing information system are related to each other as shown in the figure and interact with each other using the data flow as show as in diagram
Production Information System gather and uses the above mentioned input data from a number of sources. Then the processes are applied on this input data to transform it into the meaningful related to the manufacturing process.
This output information is used by production managers and other workers related to the production process to efficiently control the decision making process of the production process. The outputs of the manufacturing information system are related to the product design, production planning, production control and quality control etc.
Inventory Management Information System
Inventory is one of the most significant asset for all the companies, inventory means the stock of goods or the list of goods. Since inventory uses a lot of investment, hence it is most vulnerable to misappropriation and misstatement. Hence to manage the inventory a strong information system is needed.
The management and control of raw materials, goods in process, consumables, spares and finished goods inventory is an important part of production system. Hence inventory management system is an important subsystem of the important information system.
Inventory control refers to the planned method of purchasing and strong the materials at lowest possible cost without affecting the production and distribution. Inventory Management system uses information from the modules of the manufacturing information system such as shipping and receiving system, purchasing system and order entry system etc.
Properly managed inventories production shutdown because of lack of raw materials and lost of sales because of the unavailability of the finished products.
On the other hand also some inventory maintaining costs also. The various costs involved in maintaining the inventories are.
- Funds blocked
- Storage costs
- Handing costs
- Price Risk
- Risk of technology Change
- Quality deterioration
In the traditional inventory Management systems the reorder point system is used. A reorder point system specific that the materials are ordered in sufficient lead time to arrive at the plant when the are needed in the production process. This system uses a predefined reorder point. Whereas sone organization also maintain an additional amount of stock called the safety stock in hand in case shipments are delayed.
Whereas economic order quantity system helps managers, to reduce the total inventory cost by identifying the most economic quantity, to order for each item in the inventory.
Ordering in small quantities reduce the carrying cost but increases the shipping, receiving or procurement cost. Hence EOQ method makes a balance between the carrying cost and procurement cost.
The important functions of the inventory control system are as:
1. The system maintains complete detail of the transfer of stock from one warehouse to other warehouse.
2. Stock status enquiry helps users to know what inventory they have where it is
3. Periodically inventory is counted and matches to counts in the records. The system can generate reports of inventory by item number, description etc. Usage reports can list slow moving items according to other defined criteria so that they can also be put on the sale. The system can also generate reports of overstocked items
4. It minimizes the dead stock hence the investment is minimized.
5. It takes assure the availability of material at all times during the production process at minimum cost
6. It helps in the proper physical checking of the stock easily.
7. Since the information of the closing stock is available at all the times hence orders of the customers can be handled readily.
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