10.3: Computer Integrated Manufacturing

10.3
Computer Integrated Manufacturing
Essential Idea: Computer-integrated manufacturing uses computers to automatically monitor and control the entire production of a product.

Computer integrated manufacture (CIM) takes the concept of integration of separate manufacturing technologies and combines these with all aspects of a company's operations, not just those that are directly involved in the manufacture/

Under a CIM system, all teams can share the same information and easily communicate with one another. A CIM system uses computer networks to integrate the processing of production and business information with manufacturing operations to create cooperative and smooth-running production lines.

Elements of CIM: design, planning, purchasing, cost accounting, inventory control, distribution

DESIGN

• In a CIM system this is accomplished by a design department through computer aided design while considering the product requirements. 
• When design is completed it is tested or functions simulated on a screen before a prototype is made
• Prototypes are maid using CIM machines
• The design process creates the database required to manufacture the part

PLANNING

• Planning department takes the design on the computer system and database established by the design department and enriches it with production data to produce a plan for the most efficient method of production of the product
• Involves subsystems dealing with materials, facility, process, tools, manpower, capacity, scheduling, outsourcing, assembly, inspection, logistics and others.

PURCHASING

• The purchase department orders the necessary materials to manufacture the product, keeping cost to a minimum
• Just in time (JIT) philosophy is applied
• Computer system is used to purchase orders and follow up, ensure quality in the production process of the vendor, log the received items, and more.

COST ACCOUNTING 

• The finance department uses a computer system to deal with the financial resources of a company 
• Such factors of cost accounting include:
• Inventory valuation
• Cost of goods sold valuation
• Constraint analysis
• Margin analysis
• Variance analysis
• Budgeting

INVENTORY CONTROL

• Computerized inventory control systems make it possible to integrate the various functional subsystems that are a part of the inventory management into a single cohesive system.
• An inventory control system encompasses all aspects of managing a company's inventories including:
• Purchasing 
• Shipping 
• Receiving
• tracking
• Warehousing and storage
• Turnover
• Reordering

DISTRIBUTION

• Distribution (or warehousing uses the computer system to aid in organizing the storage and retrieval of raw materials, components, finished goods as well as the shipment of items
• Storage is automated using computer controlled vehicles that move the finished product from the manufacturing area to storage (and keeps track of the products)
• Logistics and supply chain management assume great importance