Management information and control system question and answer

A Management Information System ICT Revision Questions and Answers

For a production scheduling system, draw the systems flow chart and explain the following:
i. System interfaces
ii. Files and inputs
iii. Report

Answer
PRODUCTION SCHEDULING
Production scheduling is the nerve centre of the production management system. It produces no general ledger journal entries, but is schedules production and monitoring all physical flows. Figure 1 shows the information flow involving the production scheduling system.


To job Order Control
Production Authorisation and standard

From Job-Order Control Job Status Reports

From Marketing analysis
Request for Estimated Delivery Date

To Making Analysis Estimated Delivery Dates

From Materials Inventory Quantities Available and Expected Delivery Dates

To Materials Inventory Control Quantities Required for Production

From Order Processing Production Authorisation

System Interface:
The production scheduling system and various other accounting systems interact frequently. The sales order processing system authorises production scheduling to start work on a job. Production scheduling then provides with estimated delivery dates and receives shipping reports from the finished goods inventory control system. Thus, all job scheduling information is kept in one system.

Within the production management system, the production scheduling and materials inventory control systems interface frequently. Production scheduling informs materials inventory control of the items and quantities required to schedule production, and inventory control indicates the quantities available. Work-in-process control receives production authorisation from the scheduling system. This authorisation creates a new record for a job, and production costs can be charged to the job. At the same time, the work-in-process control system receives the standard cost for the job and provides status reports to the scheduling system. Cost estimation provides production scheduling with budgeted standard costs for all jobs production.

Files and Inputs:
Three files are required in the production scheduling system. The resource utilisation file contains a record for each machine and production process in the factory and maintains work schedules for them. The employee data file contains data concerning employee skills and scheduled work assignments. The production order file maintains completion dates and schedule information for each job.

Reports:
The scheduling system produces periodic production planning reports. They indicate the available capacity and scheduled future utilisation of labour and machinery. A sample reports is shown in Figure 2. Such reports are useful to management because they indicate where excess capacity exists for the planning period. Sales and pricing strategies can be considered to alleviate the situation. On the other hand, if frequent scheduling problems are encountered, then an adjustment in capacity may be necessary.

Production Planning Report

 

A           &            B Corporation

 

Capacity

YDT

 

Utilisatio n YTD

Capacity

Dece mbe r

Date: 3.12.2001

Planned           Use December

Labour (hours)        
Welders 16,500 15,790 1,500 1,450
Machinists 24,750 25,050 2,250 2,300
Electricians 4,950 4,870 450 375
Painters 8,250 7,680 750 680
Total hours 54,450 53,390 4,950 4,805
Machine (hours)        

 

Drill press 15,360 6,870 1,280 265
Automatic     screw        
machine 11,520 11,460 960 1040
Lathe 9,600 30 800 490
Planner 1,920 680 160 45
Automatic Cutter 5,760 6,010 480 460
Total hours 44,160 25,050 3,680 2,300

Job status reports concern the status of jobs in the production process. They compare scheduled and actual completion times in the production process. A sample job status report is shown in Figure 3. This report emphasizes scheduled times whereas the job-order control report emphasizes costs.

A & B Corporation Job Status Report Date: 3.12.2001
Job Number 3893 Customer:            Pradeep Tandon & Co. Estimated Completion

Date: 2.04.2002

Source
Materials Invento

ry

Purch

as e

Shipped Receive

d

Delay (Day

s

)

½ Plate Y – Y N

– Y N

 
6″ WF 20 Y  
2″ Bearings Y Y 20
2″ Shaft Y  
 

Labour

 

Budgeted Hours

 

Actual

Hours

 

Differen

ce

Estimated

Hours       to Complete

Welding 384 412 (28) 0
Machinery 524 319 205 240
Electrical 40 0 40 40
Painting and        
Prepara 80 0 80 80

 

tion        
Total hours 1,028 731 297 360



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