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Operational Production Information Systems. Purchasing Systems To produce goods and services, one must have the right quantity of raw materials and production.

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Presentation on theme: "Operational Production Information Systems. Purchasing Systems To produce goods and services, one must have the right quantity of raw materials and production."— Presentation transcript:

1 Operational Production Information Systems

2 Purchasing Systems To produce goods and services, one must have the right quantity of raw materials and production supplies on hand. Furthermore, you will want to procure these materials and supplies at the lowest cost and have them delivered at the right time. To assist in this function, the purchasing System has to maintain data on all phases of the acquisition of raw materials and purchased parts used in production.

3 Open Order File in accordance to Purchasing System The purchasing System must maintain vendor files with price quotation information on all production materials and supplies so that intelligent choices can be made among suppliers. The system also maintains records of goods that are already on order. Such records are termed as Open Order File, which are used to monitor the ordering and delivery of production materials and supplies to keep one from exceeding budget allocations and correct inventory levels.

4 Requisition Date Requisition No. Date NeededReceipt DateRemarks 01-01-20070301903-01-2007 08-01-20070302010-01-2007 15-01-20070302117-01-200718-01-2007 22-01-20070302224-01-2007 29-01-20070302331-01-2007 Open Order Report – 01-01-2007

5 Receiving Systems When shipments of purchased goods and supplies are received, they must usually be opened, inspected and verified against purchase orders, and the information about their status passed to the accounts payable, inventory, and production departments. Delivery Dates should also be noted for several reasons, including collecting data on the delivery-time reliability of suppliers. This type of information is supplied by Receiving Systems.

6 Quality Control Systems Quality Control Systems provide information about the status of production goods as they move from the raw materials state, through goods in process, to finished goods. Quality Control Systems ensure that raw materials or parts purchased for use in the production processes meet the standards set for those materials. The systems also monitor quality during the production style. Quality Control Data may be collected using shop-floor data collection systems, which can include a rich assortment of input devices – counters, assembly-line data entry terminals, process control sensors, etc. Shop –Floor data collection devices can be connected to a factory Local Area Network (LAN). The LAN is a communications Network that can be connected to a minicomputer or mainframe computer system.

7 Inventory Costs Graph – The Balancing of Stocking Costs and Carrying Costs, or Economic Order Quantity (EOQ) Total Costs Size of Order EOQ Carrying Costs Ordering Costs Total Costs Per order

8 Automated Material Handling Automated Material Handling (AMH) systems track, control, and otherwise support the movement of raw materials, work-in-process and finished goods from the receiving docks. AMH software combines with various materials handling equipment, including conveyors, pick and place robots, and automated guided vehicles, to get this job done. Computer Aided Design & Manufacturing Systems A great deal of Software has been developed to aid product engineers design new products and improve old products. One type of software that helps product engineers is Computer Aided Design. CAD software normally falls in two categories: One, Category helps mechanical engineers and Architects construct and modify complex drawings blue prints diagrams or illustrations quickly and easily. Another Includes programs that help Electrical Engineers to produce Schematics quickly and easily alter the schematics and then produce a final draft of the Electrical circuits.

9 Image Management Systems Engineering and architectural drawings are difficult to store and retrieve in hard copy form. Parts of one design may be useful in another if one can find the design that contained the useful element. Image Management Systems are designed to manage the storage and retrieval of engineering and architectural drawings using optical disk storage media. The software also maintains controls over changes made to drawings and distributes the drawings to users with PCs on a LAN. Material Selection Systems Many programs are available that aid the engineer in choosing materials for the product under design. These programs are called Material Selection Programs (MSP). Selecting the best materials to account the stress, heat, humidity and other conditions can be labourious


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