Chapter 1 Introduction

What is an Industrial Information System? Computer hardware and software that integrates decision processes of an industrial enterprise through information sharing Organized around “processes,” which are related activities that share information to achieve a specific organizational objective Human Resource Management Sales and Order Entry Supply Chain Management

IIS Supports Decision Making Standard industry decision-support software is classified based on decision-making time horizons Enterprise Resource Planning (ERP) software Long-term decision horizon. Includes sales forecasting and aggregate planning of the use of resources to meet customer demand over a time horizon of months. Supports most of the “business functions” of the enterprise, for example: Sales and Order Entry Purchasing and Inventory Control Accounting

IIS Supports Decision Making Manufacturing Execution System (MES) software Short-term decision horizon. Attempts to manage resources on a daily or hourly basis. Supports most of the “daily operational functions” of the enterprise, for example: Dispatching jobs to production and tracking work-in-process Hourly analysis of quality control data Data collection from production operations to provide a history of factory events

IIS Supports Decision Making Machine Control Layer software Real-time decision horizon. Manages the operation of equipment in a time interval of seconds. Computer Numerical Control (CNC) programs Robotic Control Programs PLC Control of production lines Real-time collection of sensor data

IIS Supports Decision Making Planning Level Execution Control ERP Forecasting Production planning Inventory Costing Purchasing Transportation Supply chain management MES Operation scheduling Lot traceability Production dispatching Quality control Work-in-process status Maintenance Control layer Process set point control Process monitoring Machine tool control Cell control What to produce How to manufacture What was produced Real-time actual results

A Network Architecture is a description of how the various levels of the decision hierarchy communicate with the enterprise database

Key Applications in Modern Industrial Enterprises Order Fulfillment Management To track an order from its creation until the time it is shipped Order Entry Customer Order Production Control Inventory Purchasing Shipping Unfilled Orders Material Requisition Material Use Material Orders Material Supply Finished Product Shipped Product Order Fill Confirmation Some contributions of IIS -speed: reduces time & cost for departments to communicate -accuracy: provides correct counts of orders & material in process

Key Applications in Modern Industrial Enterprises Customer Relationship Management (CRM) To maintain the relationship between the enterprise and its customers in order to promote sales and to more easily service customer needs. Direct sales over the Internet Technical support Scheduling sales force visitations to key customers Notifications to follow up on customer requests Some contributions of IIS Market share retention: customer service is an important basis of competition in many industries Cost effectiveness: use of enterprise database in conjunction with the Internet makes it possible to deliver customer service at low cost

Key Applications in Modern Industrial Enterprises Warehouse Management Systems (WMS) To manage inventory storage by location, efficiently direct the picking and packing of shipments, and locate items with high throughput close to the shipping dock. Keep track of changes in status of material lots (on hold, released for shipping, etc) Store in relation to shipping dock based on throughput (A vs. B and C item) Data analysis of activities in warehouse (e.g., picking & packing) to assess dollar costs Automatic generation of warehouse reports for management Some Contributions of IIS Enable real-time data analysis: Continuous revision of A, B, C classifications and storage location Cost-effective reporting: Database application allows reports to be generated at minimum cost

Key Applications in Modern Industrial Enterprises Distribution System & Supply Chain Management To provide cost-effective integration of supplier coordination and product distribution with enterprise operations Customer Supplier Factory CDC RDC LDC Retailer Enterprise Manage inventory levels Manage delivery lead times Track orders through distribution Point-of-sale information gathering Real time data exchange with supply chain partners Real time analysis of transportation alternatives Some Contributions of IIS Customer satisfaction: customer deliveries on time Cost reduction: control of lead times and visibility of inventory across the supply chain keeps inventory levels low

Information System vs. Decision Support System Decision support system: software modules that analyze data and present results to management for decision making Demand forecasting software Factory scheduling software Quality control software Information system: A set of models that describes enterprise data and its use, along with an implementation of the models in databases, forms and reports. The information system provides the foundation on which the decision support system may be built.

Manufacturing Systems and Information Requirements The information requirements of a manufacturing system depends on The type of product The organization and design of the manufacturing system Mechanical Fabrication Industries Job Shop Design Flow Line Design Cellular Design Process Industries Continuous Process Design Batch Process design

Mechanical Fabrication Industry Designs FLOW LINE Lathe Department Milling Drilling Grinding FUNCTIONAL or JOB SHOP L G M D CELLULAR

Mechanical Fabrication Industry Information Requirements Product Information Required Bill of Materials (BOM) Master List of components, purchased components, purchased parts, and subassemblies required to produce a complete product. Process Information Required Process (Routing) Plan Process plan is a sequence of machining operations that take a raw material and transforms it into a component usable in the final product. Routing plan incorporates the specific machine type used in an operation

PROCESS INDUSTRIES Continuous Process Design petroleum refineries, most chemical plants high production rates, but dedicated to the production of a narrow range of products control problem is to maintain set points of the process such as temperature or pressure

Process Industries Batch Process Design food and pharmaceutical industry lower production rates, but higher flexibility in terms of types of products control problem is similar to mechanical fabrication industry

BATCH PROCESS DESIGN INFORMATION REQUIREMENTS Formula is the same as BOM and describes process inputs, process parameters and process outputs. Formula is a sub category of a more general specification called recipe, which includes the formula, the equipment requirements and the detailed procedures of manufacturing Example of a Formula in the Food Industry

Brief History of IIS Evolution 1960-late 1970’s: Mainframe computers and early application software used to develop IT applications as labor saving tools. Corporate accounting systems Payroll systems Order entry systems Billing and invoicing systems 1970’s-1980’s: Addition of business operations and introduction of the personal computer. Factory planning and scheduling decision support software Spreadsheet applications

Brief History of IIS Evolution Late 1980’s-1990’s: Focus on identifying “business processes” and developing applications around these processes. Order fulfillment management Warehouse management systems Quality management Client/server architecture Mid 1990’s-2006: Focus on Web server applications. Integration of organizations through shared information and Web based applications E-commerce Supply chain management HTML XML

Brief History of IIS Evolution Advent of the personal computer leads to departmental level ownership of information. Applications are isolated from one another in “islands of information”. 1990’s-2006 Emphasis on integrating islands of information into enterprise wide databases that can be accessed throughout the organization. sales QC shipping Enterprise Database

Major Topics in Design of IIS Database Systems Database (def.): A collection of related data or information. Database Management System (def.): Software tool that manages and controls access to the data. Relational Database Viewed as Tables Physical Design User Views

Major Topics in Design of IIS Structured Query Language The programming language used to manipulate data in a relational database. Related records SELECT VENDOR.V_NAME, PURCHASE_ORDER.PO_NUMBER FROM VENDOR, PURCHASE_ORDER WHERE VENDOR.VENDOR_ID=PUCHASE_ORDER.VENDOR_ID AND VENDOR.VENDOR_ID=“V110”;

Major Topics in Design of IIS Data Modeling A formalism used at the conceptual level to represent entities (tables), their attributes, and their relationships.

Major Topics in Design of IIS Forms and Reports: user screens for interacting with the database. Form: computer screen that allows the user to view data and, if he has permission, to add and delete data. Report: any document that retrieves information from the database and formats it for presentation.

Major Topics in Design of IIS Web Based Applications HTML: a scripting language for formatting Web pages ASP & JSP: file types for VBScript and JavaScript that allows code to be written for database queries VBScript and Jscript: the coding language for Visual Basic and Java used with Active Server Pages (ASP) and Java Server Pages (JSP) Web Server Software: provides support for ASP and JSP Internet Information Server (Microsoft) Apache Server or Tomcat Server (SUN Microsystems)