MIS for Production

Management information system helps production to performs an integrating role with in the production system of any organization. Management of activities/operations in a production system is concerned with decision making related to different components of the system so as to accomplish the desired output.

These decisions can be divided as periodic-decisions viz. selection, design and updating of resources, transformation process and methods, and continual decisions about day-to-day operation and control of various activities/operations in the system. These decisions can also be divided in planning, implementation and control categories.

Production information system is a network to generate necessary information and process it to make various decisions related to some production system. It consists of communication channels and information processing centres collecting information from its sources of origin, storing, updating, collating and processing it and then supplying the processed information to the various users of the system.

A production information system can be viewed as an independent group of sub-systems each related to its successor, each performing a different function though yet united with others for achievement of the overall objective. It interacts with both its internal and external environments.

The components of the system can be described as:

1. Long Term Planning

This implies planning the conversion system specifying the sequence of operations, capacity of the system, plant location and its layout aspects. The decisions derived have long term impact and are difficult to undo once implemented. Information for taking such decisions is compiled periodically for determination of appropriate product mix.

2. Annual Production Plan

These are meant to plan the use of transformation process. These plans are drawn from sales programmes by optimizing inventory-carrying costs, costs on labour with hiring and firing of personnel etc. These plans are revised periodically.

3. Inventory Control

It is generally expressed in terms of money and number of units produced. It deals with preparation of master inventory and production schedules.

4. Production Scheduling

These decisions are to determine: what to make, when to make, how to make, how much time is required to make it, production plan, bill of materials and operations sheets providing the necessary information for the preparation of production schedules.

5. Dispatching

Time standards are formulated through operation/route sheets supplied by planning and engineering departments. Cost standards are calculated through cost cards and job tickets and the quality standards are prescribed by design & engineering sections.

Characteristics of Production Information System

1. It should always be tailored to the need of a particular organization. It can never be specific or general.
2. The involvement of top management in the formulation of production information system is essential.
3. Data base should be wide.
4. It must be flexible and should be supplied timely.
5. Data should be capable of easy interpretation & presentation.
6. The cost of procuring the information must not over-ride the relative advantage accrued.

In production system most of the information needs are in the area of:

(i) Production, Planning and Control

(ii) Materials management viz. purchase, stores and inventory Control etc. with an objective to optimize production by identifying the variances so that these could be closely monitored.

MacNeice has subdivided these records into three types:-

1. Records of Basic Information

• Blue Prints
• Bill of materials
• Time value of fundamental operations
• Production routing

2. Records showing what is available

• Raw material records
• Work in process
• Semi-processed stock
• Finished goods stock
• Information about tools, jigs, fixtures, gauges and personnel available
• Machinery and equipment details

3. Historical Records

• Records of production
• Records of waste and reject
• Records of machine performance
• Records of sales
• Records of absenteeism

The nature of these records can vary for different type of plants and production systems as well as according to the situation and needs of the management. In a small organization the preparation and maintenance of these records is the job of shop floor.

But it becomes an important function in medium and large scale organizations having separate section for collection and preservation of such records. Usually this Work is done by dispatchers who continually observe the actual implementation and compare it with the programme previously intimated.