What is the role of Functional Information System?
These functions range from the receipt of raw material to
the shipping of finished goods, from production itself to equipment
maintenance, through inventory movements and material quality tests, and from
customer order lines to work dispatching. That’s not to mention the control of
manufacturing operations themselves. These functions fall under different
responsibilities, though they must operate collaboratively under effective
business management directions.
The role of information in a manufacturing company is summarized in the illustration. Consider the three main flows crossing an enterprise system—material, money and information. It is easy to understand the specific importance of this information. Material flow constrains money flow, that is, no payment until delivery. Information flow constraints material flow, that is, there is no delivery until shipment documentation is issued. Information flow constrains money flow, because there is no payment until an invoice is issued.
A manufacturing information system is therefore an enabler to reaching higher levels of financial performance. Conversely, a poorly designed and tuned information system definitely hurts the plant’s ability to serve the company’s goal of sustaining and increasing profits.
The role of information in a manufacturing company is summarized in the illustration. Consider the three main flows crossing an enterprise system—material, money and information. It is easy to understand the specific importance of this information. Material flow constrains money flow, that is, no payment until delivery. Information flow constraints material flow, that is, there is no delivery until shipment documentation is issued. Information flow constrains money flow, because there is no payment until an invoice is issued.
A manufacturing information system is therefore an enabler to reaching higher levels of financial performance. Conversely, a poorly designed and tuned information system definitely hurts the plant’s ability to serve the company’s goal of sustaining and increasing profits.
http://www.csus.edu/indiv/t/tsain/m101/ch7.ppt
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