I.T. and Production Analysis (Part 2)

In the previous part, we have discussed the meaning of ‘Production’ and basic factors of it. All they are Land, Manpower, Capital and Enterprise or Entrepreneur.

In this part, we’ll discuss ‘Production Analysis’. But before discussing the ‘Production Analysis’, let me clarify that here we are discussing the involvement of Information Technology into production and production-related analysis, not ‘Production’. If you remember in the previous part we’ve noted that IT is involved in all stages of production: Pre-production, Production, and Post-production. Let’s discuss all those.

Pre-production:

Market Research

Nowadays, there are some significantly effective and people affection web tools. All these web tools are famously known as ‘Social Media’. These social media apps help a lot to gather and analyze all sorts of people related, demand related and product-related data.

Material Requirement Planning (MRP)

Prior to the computer and IT age, Re-Order Point (ROP) and Minimum Stock Level (MSL) were calculated manually on the basis of previous usage history and consumption. At that time there was nothing like ‘MRP’. In 1964, during the “Toyota Manufacturing Program”, Joseph Orlicky developed and use first-ever material requirements planning (MRP).

There are two types of MRP. The first one is done to maintain demand and supply ratio while another one is used to maintain production flow. The second type of MRP is also known as ‘MRP II’.

As far as IT concern, IT helps to plan, maintain and sustain material requirements more precisely. Various tools and automated features enable us to maintain and sustain both these.

Supplier Relationship Management (SRM)

IT helps to manage and maintain suppliers’ data. Basically, there are two types of suppliers. One who plays the role to sell products fall within the Distributor category and, one from whom raw material and other supporting tools are purchased falls within the Vendor category. Both these need attention to the growth of a business.

Customer Relationship Management (CRM)

A various CRM software helps to maintain records of regular and potential customers. Various product demonstrating tools helps to attract regular customers and create new customers.

Production Planning

Production Planning is the most important factor to achieve targeted production. With the help of IT, this task has become more efficient. There is some software that helps in planning production. An ERP system too integrates the whole process and helps to control the whole production process. In recent days trend of in-house developed software usage has picked-up due to its versatility. In addition, in-house developed software is easy to maintain. It allows to develop or change feature according to the recent need. ERPs also allow developing custom features with some extent of limitations.

Production

Manufacturing Resource Planning (MRP II)

Manufacturing resources are needed to be controlled and managed wisely. Today’s internet facility provides various tools to analyze, study and procure the right resources at the required time.

Manpower Resource Planning

IT helps to study manpower consumption from production history data and suggests the proper quantity of required manpower. Earlier this was very tedious work. But, with the help of IT, it has become very easy.

Inventory Management and WIP Control

With the help of various spreadsheet application or specialized software Inventory Management and control has become easier. Earlier it was very hard to manage stock, track account of any particular item, budgeting, quotation comparison, and all other inventory-related matters. Now IT has helped to overcome this limitation.

Post-Production

Product Packaging

After production, there comes packaging. Today various designed and informative labels give appropriate information to the customer. Attractive packaging also helps to improve sales. These all have been possible due to graphics and designing software.

Storage Tracking

In the phase of Postproduction, storage and finished goods care come first. Appropriate stored goods can be tracked and counted easily. All goods falling under a bill of material must be arranged and stored well to maintain order deliverability. Appropriate storage methods and arrangements help to track full product and deficit of items which are members of the bill of material. The adoption of appropriate storage method reduces unplanned excessive production of WIP.

Information Technology has brought various tools and software to maintain and track stocks of every sort at every stage of production.

Supply Chain and Logistics Management

Supply Chain Management is a management of value-added flows of finished goods and other related information among companies, suppliers, resellers and Final consumers. When a group of organizations works in tandem (directly or indirectly) to get the final product in the hand of the end consumers, it is known as ‘Supply Chain Management’.

The term ‘Logistics’ is originated from military terminology. It means the movement of military goods between battlefields. But today, this term has become a normal business term which means transportation of raw material from a vendor to the warehouse and finished product from warehouse to end consumer.

Sales and Advertising

Produced goods are meaningful only when it reaches to the real consumer. To reach the end consumer, sales and advertising are the most important tools. In the IT age, all these have become very easy. With the help of IT, appropriate software (homemade or readymade) helps a lot to manage sales figures. Advertising also becomes very effective. Plus widely used social media are also one of the most effective advertising tools. Animation and multimedia have drastically cut modeling based advertise cost. A new trend of airing purely sales-oriented channel airing has also set a new record of direct selling.