Question

Explain the role information systems in production and information

Answer 1

Production is some process through which goods and services are created. Production/Operations is the heart for an organisation and add value to some object enhancing its usefulness. This is done by bringing men, machines and materials together as inputs to get the desired output.


In modern times the formulation of production strategy has become a complicated and difficult activity. In one man organisation/enterprise, like retail shops, owner can himself formulate operational plans, review the progress and can make modifications in his plans and method of work.

There is no communication problem as he can effectively communicate with himself to know the present state of activities in his organisation.

But with evolution of large corporations, due to concepts of division of labour, introduced communication and co-ordination problems. The employees in these organisations perform non- interchangeable functions specializing in their own job, which is isolated from other jobs in the organisation.

The various departments in the organisation are created on a functional basis to secure income through sales and production, to control the flow of capital and to ensure the continuation of the process at a profit. The important functional groups are marketing, production, engineering, finance and personnel.

The production department performs the function of transferring input into some desired output. In other words, the role of production department is to manufacture the company’s products in accordance with quality specifications and to produce goods at minimum cost. The production department performs a number of operations/activities carried out by a number of sections.

Each section performs some specialised activity and tries to optimize its level of performance. The common denominator related to the various activities of these sections of any type of production system is the flow of materials. A production organisation is characterised by the nature of inputs, transformation process and the output.

B. Information:
‘Information is the glue that holds organisations together’. It has become an important input in all walks of life today. Information is data that is processed in a form, which helps the management to take decisions. The value of information is associated with decision-making and can be considered at a higher and active level than data.

If there were no choices/decisions information would be unnecessary. Information is alive as it is required to be updated all the time and is renewable. It can be easily expandable. Substitutable and transportable.

C. System:
System is an abstract/physical set of elements, which operate together to accomplish an objective. A system may be defined as ‘a purposeful collection of people, objects and procedures for operating within an environment. It is composed of interacting components operating under human control. Webster defines system as “a set/ arrangement of things so related or connected to form a unity of organisation“. Every organisation can be visualised as a system comprising of various departments/sections as sub-systems.

D. Production System:

Using the generalized concept of production as a basic process which converts the resource inputs into some useful form of outputs. We can term the various components of the production process as a system. Inputs to the System may be labour, material, equipment, facilities, information etc. The output may be in terms of finished products or services. The conversion process is some combination of men, machines, equipment, material and other facilities performing various operational activities in some pre-designed order/ sequence.

E. Information System:

The system objective should be clearly stated in terms of the functions it is to perform i.e. what managers can do and how effectively they would be able to function after their information requirements have been met e.g. objective of system may be to optimise the production by identifying the variance so that these could be closely monitored.

An information system matches for significant events to happen and triggers an intelligent response in all sections of the system to a significant development in any part. It is not merely a communicating network but also generates intelligent response. It has a methodology of decision models built in it and is available to alternative.

Answer 2

Production Information System:Production information systemperforms an integrating role with in the production system of any organisation. Management of activities/operations in a production system is concerned with decision making related to different components of the system so as to accomplish the desired output.