Question

1. Explain how three of the following departments in an organization might share information with the more traditional CIM areas of Production Control, Production Scheduling, Process Design, and Product Design: a. Accounting b. Marketing c. Purchasing d. Sales e. Research and Development f. Facilities Planning.

Answer 1

Three of the given departments in an organization sharing information with traditional CIM areas of Production Control, Production Scheduling, Process Design, and Product Design:

a. Accounting:

This department of the entity which is responsible for handling the financial transactions of the company will again be having various branches within it like, cost and management accounting, daily accounts handling, accounts payable/receivable handling, budget preparation etc.

And the information that might be shared by this department with the traditional CIM area would be the with regard to the budget available for the production of the particular product and the scheduling which should be made so as to ensure that there is no incurrence of over cost. Coming to the product design and the process design it would be analyzing and reporting on the possible amounts to be incurred for the production and the revenue or profit the product would fetch for the company if the same has been produced and marketed.

b. Marketing:

The marketing department of the company which stays closer to the market, the products available in there and the behavior of the customers would be the best persons able to share majority of the vital information’s. In the traditional CIM areas, they would not be having the enough knowledge to coordinate the demand, supply, behavior of customer and the like.

So the marketing department can actually help the production control and scheduling team with what is the demand for the product and how much should be produces/marketed by them.

And with respect to the product design and process design, the product that are in actual requirement in the market which would actually be profitable for the company with the potential to earn maximum revenue.

c. Purchasing:

Purchasing department would be helping the company to procure the raw materials and other equipment’s required for the production at the best possible price. It is in reality a proper coordination of the finance and purchase department that helps the company to reduce the cost of the production.

These departments would actually be sharing information with the production control and scheduling areas for having the wastes minimized and produce in the most cost effective manner. The product design and process design department would be designing the same on the basis of the price that is put forth for the raw materials and equipment’s required.