Information and Decision Support Systems - Principles of Information Systems - page 408

almost 300,000 employees, the Hon Hai company in China is one of the world's largest
manufacturers of electronic products, including music players, cell phones, game consoles,
and many other electronic products. 25 Some believe the company is China's largest exporter.
Dell Computer has used both optimization and heuristic software to help it manufacture a
larger variety of products. 26 Dell was able to double its product variety, while saving about
$1 million annually in manufacturing costs. Figure 10.9 gives an overview of some of the
manufacturing MIS inputs, subsystems, and outputs.

Figure 10.9

Overview of a Manufacturing
MIS

Databases
of
internal
data

Databases
of
external
data

Receiving and inspecting
Inventory
Personnel
Production
Order processing

Manufacturing
DSS

Databases
of valid
transactions
from each
TPS

Supply chain and
business transactions

ERP systems
and TPSs

Manufacturing
MIS

Manufacturing
application
databases

Manufacturing
ESS

Specialized
manufacturing
information
systems

Supply chain and
business transactions

Design and engineering
Production scheduling
Inventory control
MRP and MRPII
Just in Time
Process control
Quality control

Operational
databases

Quality control reports
Process control
reports
JIT reports

Extranet or
Internet

MRP reports

Suppliers
Customers

Production schedule

CAD output

The manufacturing MIS subsystems and outputs are used to monitor and control the
flow of materials, products, and services through the organization. As raw materials are con-
verted to finished goods, the manufacturing MIS monitors the process at almost every stage.
New technology could make this process easier. Using specialized computer chips and tiny
radio transmitters, companies can monitor materials and products through the entire man-
ufacturing process. Procter & Gamble, Wal-Mart, and Target have funded research into this
manufacturing MIS. Car manufacturers, which convert raw steel, plastic, and other materials
into a finished automobile, also monitor their manufacturing processes. Auto manufacturers
add thousands of dollars of value to the raw materials they use in assembling a car. If the
manufacturing MIS also lets them provide additional service, such as customized paint colors,
it has added further value for customers. In doing so, the MIS helps provide the company
the edge that can differentiate it from competitors. The success of an organization can depend