Strategic Information Systems in the Tire Manufacturing Industry

Manufacturing companies face an avalanche of problems including: globalization, increased consumer awareness, stricter regulations from authorities and change in global standards. All tire companies have the desire to produce high quality goods with the best designs. They desire to achieve this through efficient processes, at low costs, with minimal wastage and while expending as little energy as possible. While information technology has made the conception and development of high quality tires easier, it has inadvertently increased standards hence competition. Computer hardware and software are now extensively employed in tire production in order to ensure that all processes, tasks, materials and outputs are efficiently managed. There are a number of strategic information systems that have been crafted with the aim of streamlining the entire production process and guaranteeing the quality of outputs while reducing costs associated with raw materials and labor. These systems also ensure that tires are produced within the regulations set by different authorities including acceptable levels of pollutants released into the environment and adherence to set safety standards.

Due to the complex and capital intensive nature of the tire manufacturing industry, most companies are limited to the production of rubber tires only, with no other products (Pattanayak et al 2000). They only vary their tire products in line with the type of target vehicles and the type of manufacturing which is either radial or bias. This highlights the necessity of strategic information systems in order to streamline the production processes and guarantee high quality product varieties in varying volumes. There are some vehicle tires that are usually in higher demand than others meaning that there must be efficient management systems to control the volumes and varieties needed as informed by market research and customer feedbacks.

Tire manufacturing requires automation systems in order to add value into the overall production process. Automation is especially important in the running of machinery, management of transportation system, control devices, computer systems and storage. These individual departments need to work harmoniously in order to produce high quality tires within specific timelines. Information from all the components in the manufacturing process in needed in real time so that it is integrated into the other corresponding and concurrent processes for the reproduction of high quality tires. The overall objectives of the management information and automation systems are to increase productivity, reduce all work-in-progress, reduce the costs and reduce the time needed for all processes.

There are three important phases where the information and automation system is best utilized. These are in the structure, function and process description phases. The structural phase deals with the hardware and software system that is key in production while the function phase deals with individual tasks that converge to form a comprehensive process responsible for turning raw materials into finished quality products (Yi-Ming & Liang-Cheng 2007). This phase is charged with mapping the best input-output model that reduces waste, time, costs while guaranteeing quality. The process phase deals with the integration of individual tasks into the overall manufacturing process in a seamless manner. It is very important to have information systems as they form the base on which the entire manufacturing process can be controlled.

The shop floor management and control system is usually at the heart of controlling the entire information system for the tire plant. It is fed with the Enterprise Resource Planning (ERP) data for an entire week (Cheng n.d). The ERP systems are the backbone of corporate infrastructure and are key in optimizing productivity while streamlining distribution, manufacturing and financial functions. The shop floor system is used in optimizing the sequence of tasks by utilizing scheduling algorithms and production plans. This is preceded by allocation of jobs to different devices and teams on the plant floor while controlling material flow and monitoring the manufacturing process. Specifically, task planning decomposes the weekly production plans into daily tasks meaning that it assigns specific jobs to teams and a set of machines for specified periods and according to requirements. Here, group and optimization technology is used in smoothing the production process while ensuring that resources are utilized in specific setup times and machine loads are balanced. This singular task is very vital in improving productivity and minimizing costs.

Another component of the system is job scheduling. This determines the entry times and the sequences for specific production jobs. Material flow control is one of the components of real time scheduling. Before production begins, there must be offline scheduling of operation sequences referred to as static scheduling. This step is important as it determines the exact times between a task entering and leaving the system. The statistics required for this type of scheduling are generated from operation research and through the help of information systems that determine the optimum conditions for the best production sequences. These systems are very important considering that machines are usually prone to breakdowns. Any resultant errors may change priority in tasks warranting rescheduling of routes and sequences which must be done in real time to prevent major losses. They are numerous steps that tire manufacturing goes through including: mixing, milling, extruding, calendaring, bead making, cementing and marking, cooling and culturing, tire building which entails building the carcass and treads, lubricating, curing, and finishing (Darnay 1998). If these tasks are not properly planned, coordinated and controlled, they may cause huge losses in the production process. The presence and application of information systems ensures that there is increased flexibility in production with the aim of optimizing operations.

Real time data collection is an indispensable mandate of the information systems. Resultant data must be processed and used in decision-making to ensure control. Any errors that occur in the course of production must be immediately communicated requiring the automation of information systems in order to inform the staff on process progress and to remedy any deviations from standardized procedures. Management information systems used also ensure that tools used in production are monitored and calibrated to make certain that they function within requisite parameters. The system ensures that tools are availed to their stations all ready for use. Their timely supply and in predetermined conditions can be the difference between a bad quality and good quality product.

The most important factor in the company’s clamor for a competitive advantage is ensuring quality of the tires produced. Customers always desire high quality products worth their investments. The information system employed by the company ensures that quality is achieved and maintained in subsequent productions. Product designs are continuously revised, materials consistently checked for quality and the production process constantly appraised. This is done in line with international quality assurance standards like the ISO9001 certification (Ing-Long & Jian-Liang 2006). This is achieved in four ways: the information system does planning for quality production, with information from past achievements and present research into design and process improvements; inspection to ensure that the data collected and collated is accurate and of high quality; assessment and control within established parameters and against best practices; and integration of quality management techniques at every stage in the entire production process.

The benefits of the information systems are not limited to the assurance of flexible production processes. They include changing the entire strategy of the company in streamlining its operations ranging from purchase of raw materials to distribution and marketing. These systems have guaranteed high quality products while increasing equipment utility. They have shortened the production lead time and assured that market response speed is improved. This has had a net effect on the reduction of equipment costs in terms of maintenance and replacement, labor, work-in-progress and the floor space required. The financial gains to the company from all the above derived benefits cannot be overstated. The downside to these systems is that they are expensive to install and adequately teach to employees on their effective use. This means that any company willing to integrate them should have a large capital base. Additionally they work best where a company has a variety of product volumes and variety.

References

Cheng, W.U., n.d. Computer Integrated Manufacturing. Beijing: Tshinghua University

Darnay, A.J., 1998. Manufacturing USA, 3011 Tires and Inner Tubes 6th Edition. Detroit, MI: Gale Research Inc.

Ing-Long, W. & Jian-Liang, C., 2006. A hybrid performance measure system for e-business investments in high-tech manufacturing: an empirical study. Information and Management, 43(3), p. 364-377

Yi-Ming, T. & Liang-Cheng, C., 2007. Dynamic interactive framework to link business intelligence with strategy. International Journal of Information Technology and Management, 6(1), p. 23-39

Pattanayak, S.K. et al, 2000. Economic Analysis of the Rubber Tire Manufacturing MACT. Research Triangle Park, NC