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Inventory control programs are one component of a manufacturing MIS that relies on the production schedule. Inventory control programs can forecast future production, automatically reorder items when a certain threshold is met, determine manufacturing costs, and develop resource requirements plans from the production schedule. Manufacturing Requirements Planning (MRP) programs help coordinate thousands of inventory items when demand for one item depends on demand for another. MRP systems determine when finished products are needed, then work backward to determine deadlines and resources needed to complete the final product on schedule. When high inventory levels are kept, a companys money is tied up in unused inventory. This means higher costs for the company. A Just-in-time (JIT) inventory approach ensures inventory and materials are delivered only when they are needed. This maintains inventories at their lowest possible level, but insures materials are on-hand in time for production. Although JIT is beneficial, it also makes a business vulnerable to supply chain disruptions whether internal or external. For example, if a machine breaks down that makes a component another unit needs to assemble the product, assembly may need to stop due to lack on components. Technologies have been developed to control and streamline the manufacturing process. Computers can directly control manufacturing equipment using computer-assisted manufacturing software. Computer-integrated manufacturing software connects all aspects of production together, including order processing, product design, manufacturing, quality control, and shipping. For example, after an engineer designs a product using CAD software, MRP systems can use information from the design as input to plan and order materials. Production scheduling systems can use the design specifications as an input into the scheduling process. And computer-aided manufacturing systems can use the design specifications as input for setup. This greatly improves manufacturing efficiency. A flexible manufacturing system allows a facility to quickly and efficiently change from making one product to making another, often using robotics and other automation. Generally the changeover is computer-controlled. Finally, quality control has become paramount for manufacturing firms. Control charts or sample testing is used to monitor product quality. The manufacturing MIS subsystems and outputs monitor and control the flow of materials, products, and services through the organization.
Inputs to the Manufacturing MIS Strategic plan or corporate policies. The TPS: o o o o o Order processing Inventory data Receiving and inspecting data Personnel data Production process
External sources
Manufacturing MIS Subsystems and Outputs Design and engineering Master production scheduling Inventory control Manufacturing resource planning Just-in-time inventory and manufacturing Process control Computer-assisted manufacturing (CAM) Computer-integrated manufacturing (CIM) Flexible manufacturing system Quality control and testing
Manufacturing MIS
Material requirements planning (MRP) o o Determine when finished products are needed Determine deadlines accordingly
Manufacturing resource planning (MRPII) o o Network scheduling Improve customer service and productivity
Just in time (JIT) inventory system o Inventory and materials delivered right before usage
distributors, retailers, and consumers in order to effectively and efficiently source raw materials, forecast demand, make and market their products. Very seldom will manufacturers have control over the quality and format of this external data. Through incremental improvements in data quality throughout the supply chain, however, manufacturers can realize significant performance improvements, including improved speed and efficiency of product manufacture, improved ability to perform demand analysis, improved channel partner effectiveness through timely and accurate product and pricing information, and improved customer satisfaction through timely and accurate customer information. Measurement and verification are needed to ensure the information quality program is reaching its objective. The single biggest obstacle to deploying a MIS in manufacturing is data: availability, quality, and access. Several factors make it difficult to ensure optimal performance in manufacturing. Data and events come from many disparate sources, including those of your suppliers, contract manufacturers, and other business partners. Data types and formats vary from one source to the next. Business partners in the collaborative supply chain may use different data schemas and systems to track their manufacturing process. Large volumes of data must be processed from each interface and subsystem used in the manufacturing process. A MIS tool should also easily integrate with operational applications and legacy systems that already exist in a typical manufacturing environment. Real-time manufacturing data need to be put into many different contexts for other roles in the organization that are contributing to the optimal performance of the real-time enterprise. Manufacturing companies today have extensive inventories to track and move, a greater number of products to generate, numerous suppliers to negotiate with and quality standards to maintain. They also have an everincreasing need to acquire, satisfy and retain additional customers to remain profitable. Because of these complex pressures, it is imperative that all the links in the supply chain be managed successfully.