13.

3 Manufacturing Information System

The information needs were and are always there. Information
systems used to exist when computerized environments were not
available. Automation has enhanced the availability 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 system.
Raw Material Procurement Sub-System
This is the commencement of the manufacturing process. Some
might think of procurement as a simple purchasing process like any
other commodity but the spirit of having an all-embracing raw
material procurement sub-system is simply more than that.
Parameters of Raw-material Procurement
Like with every system, there has to be a list of minimum
specifications which every system or subsystem has to cover.
Purchasing logistics of an entity critically affect time to market and
other quality related issues. Issues like selection of suppliers, choice
between local purchase or import and delivery time taken by the
supplier.
All these concerns are met and dealt with in the purchase
subsystem. The complexity of the purchase subsystem should
depend on types of raw materials required, number of suppliers to
deal with and complexity of the terms of purchase agreements for
long term.
With higher customer expectations, every organization wants to
efficiently manage its suppliers and other internal processes. Supply
chain management spans all movement and storage of raw
materials, work-inprocess inventory, and finished goods from point-
13.4 Inventory Sub System
Inventory subsystem focuses on maintaining records and movements
on inventory levels and usage. This control 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 flex 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 which encourages zero
tolerance for stock levels and placing orders exactly when they are
needed for manufacturing.
Proper logistic management is important for the timely and quality
production. Various factors which can play critical role are
• Who to purchase from – supplier selection
• When to purchase – time of delivery or raw materials
• How much to purchase – Ideal stock levels
13.5 Production Sub System
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.
Example
Consider a manufacturing entity working with three processing
departments and one assembly department.
As raw materials pass through the processes, the sub system records
the relevant information at specific points or locations until the finished
goods are transferred to stock room.
13.6 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
• Deciding delivery time in accordance with availability of machines.
• Any foreseen machine-down-time.
• Any major overhauling / tuning / replacement expected may result in
unavailability of machine.
An overhauling schedule should be kept so that the production of
finished goods is not halted.
• Avoiding duplication of jobs for the same machine
13.7 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.

The question now arises is why do we need a quality sub-system? It is

defined and demanded by customer, it has to be achieved by
management, it is a firm wide responsibility and these subsystem
provide the firm’s managers with information that reveals the extent to
which the firms products are achieving the quality goals.
13.8 Total Quality Management (TQM)
TQM is a set of management and control activities which focus on
quality assurance. The quality of the products and services is
enhanced and then offered to consumers. An organizational
undertaking to improve the quality of manufacturing and service, it
focuses on obtaining continuous feedback for making improvements
and refining existing processes over the long term.
There are certain Graphical tools used to implement and promote
TQM. For instance
o Histogram
o Pareto Analysis
o Cause & Effect Diagram
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 are 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
Order Processing Sub System
This subsystem deals with following issues.
• Status of orders placed with suppliers
• Status of departmental requisitions
• Quality of materials received
• Any other issues related to suppliers
Order processing subsystem gives a snapshot of statuses of various
orders placed, at any given time.
Management Levels in Manufacturing Information Systems
Manufacturing Information System should cater for information
requirements at each level, for instance
Strategic level
3. Locating new plant which can save cost
4. Investment in new manufacturing technology
Knowledge Level
3. Distribute knowledge to drive the production process
4. Innovating new forms of manufacturing processes
Management level
2. Monitoring production costs and resources
Operational Level
2. Status of production tasks
Computer Integrated Manufacturing (CIM)