1. Chapter 1
Introduction

2. 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

3. 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

4. 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

5. 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

6. 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

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

8. 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

9. 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

10. 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

11. 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

12. 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.

13. 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

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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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”;

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

25. 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.

26. 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)