International Journal

on Marine Navigation

and Safety of Sea Transportation

Volume 6

Number 3

September 2012

413

1 INTRODUCTION

Taking into account the development of computer

technologies, we can classify today’s production

processes as follows:

1 independent, computer controlled machining and

assembly stations (CM – Computer Module),

2 FMS – Flexible Manufacturing Systems,

3 CAM – Computer Aided Manufacturing Systems,

4 CIM – Computer Integrated Manufacturing Sys-

tems.

Typical operations in today’s production systems

include technological (machining and assembly),

control, transport, storage operations and their com-

binations. Besides, there are processes of component

and raw material supply, co-operation, distribution

of finished products and after sale services.

Logistics come to assistance in managing the

production system understood in such broad terms.

There are clearly distinguished areas of logistics:

− material supply,

− co-operation,

− production,

− distribution.

Processes taking place in these four areas of lo-

gistics require efficient management. To improve the

system of logistic management of production we

have to design and implement a computer system.

This paper presents the idea of a wide range com-

puter system which aids the management of produc-

tion system logistics.

2 THE CONCEPT OF COMPREHENSIVE

COMPUTER SYSTEM OF MANAGEMENT IN

LOGISTICS

The production system consists of four subsystems:

1 materials supply, handled by materials supply lo-

gistics,

2 co-operation, handled by co-operation logistics,

3 manufacturing, handled by manufacturing logis-

tics,

4 finished goods distribution, handled by distribu-

tion logistics.

Figure 1 graphically illustrates a logistic chain of

materials supply for the manufacturing process in a

production company. Participants of this chain are as

follows:

− original suppliers,

− suppliers of components and subassemblies,

− supply centers (see Fig. 1).

Computer Systems Aided Management in

Logistics

K. Chwesiuk

Maritime University of Szczecin, Szczecin, Poland

ABSTRACT: This paper aims at presenting a concept of an integrated computer system of management in

logistics, particularly in supply and distribution chains. Consequently, the paper includes the basic idea of the

concept of computer-based management in logistics and components of the system, such as CAM and CIM

systems in production processes, and management systems for storage, materials flow, and for managing

transport, forwarding and logistics companies. The platform which integrates computer-aided management

systems is that of electronic data interchange.

414

Figure 2 shows a logistic chain of co-operation in

the manufacturing process in a production company.

There are two types of business entities in this chain:

− suppliers to co-operators,

− co-operators (see Figure 2).

Figure 3, in turn, presents graphically a logistic

chain of distribution of finished goods from one par-

ticular manufacturer. This chain comprises such

business entities as:

− distribution centers,

− wholesale and retail stores,

− end recipients (see Figure 3).

Figure 4 illustrates graphically the concept of a

full-range computer-based management system in

the production process logistics. Its component sys-

tems are as follows:

− computer-aided manufacturing – CAM,

− computer integrated manufacturing – CIM,

− material requirement planning (MRPI) and manu-

facturing resource planning (MRPII),

− management of finished goods distribution – SD

(see Figure 4).

Figure 1. Logistic chain of materials supply. DP – original

supplier, DKiP – supplier of components and subassemblies,

CZ – distribution centre, P – producer. Source: author’s study

based on.

Figure 2. Logistic chain of manufacturing process co-

operation. D – supplier to a co-operator, K – co-operator in

manufacturing process, P - producer. Source: author’s study

based on.

See Śliwczyński B.: Planowanie logistyczne. Podręcznik do

kształcenia w zawodzie technik logistyk. Biblioteka Logisty-

ka, Poznań 2007

See. Śliwczyński B.,: Planowanie logistyczne ….

Figure 3. Logistic chain of finished goods distribution. CD –

distribution centre, SSH – wholesale and retail network, OK –

end recipient, P - producer. Source: author’s study based on.

Figure 4. Concept of computer integrated management system

in production logistics. MRPI – computer system for material

requirement planning, MRPII – manufacturing resource plan-

ning system, CAM – computer-aided manufacturing system,

CIM – computer integrated manufacturing system, SD – com-

puter-aided goods distribution management system. Source:

author’s study

The chart of a computer integrated management

system in production logistics shown in Fig. 4 indi-

cates with arrows the direction of material flow, or

to be exact, the flow of all production factors in-

volved in the process of manufacturing a finished

product and its distribution to end users. However,

electronic flows of data between the main compo-

nents of the comprehensive computer system run in

the opposite direction. It is in the first step of the lo-

gistic distribution chain that information on the de-

mand for given maker’s products is recognized and

processed. This is done in the computer system of

distribution by collecting and aggregating orders

from end recipients for given product models and

types of a given manufacturer. Besides, in projecting

the product demand the amounts in stock of each

member of the logistic distribution chain are taken

into account. Data from the computer-based distribu-

tion system are transferred to production manage-

See Śliwczyński B.: Planowanie logistyczne….

415

ment systems, i.e. CAM and/or CIM, which are op-

erated in the production company.

After information is processed in CAM and/or

CIM systems, the latter in particular, the resultant in-

formation is obtained in the form of, e.g. a plan and

schedule of manufacturing. This information and the

data from current monitoring of the materials in

stock and the state of materials flows in production

lines are directed to MRPI and/or MRPII systems.

Based on the computer-aided systems of produc-

tion resources control the material flow is managed

in the logistic chain of materials supply and the lo-

gistic chain of production co-operation, from origi-

nal suppliers and co-operators to producers.

The computer integrated management in produc-

tion logistics comprises several computer systems,

used in such areas as:

− forwarding,

− transport services,

− transport terminal services,

− customs offices,

− banks,

− insurance companies

− standardization offices,

− others.

The key condition for successful design and oper-

ation of a computer integrated management in pro-

duction logistics is that the co-operating computer

systems share the relevant information. This objec-

tive is obtained by access to a common integrated

data base (data warehouse) and by the use of com-

mon standards of electronic data interchange – EDI.

3 BRIEF CHARACTERISTICS OF BASIC

COMPONENTS OF THE COMPUTER

INTEGRATED SYSTEM OF MANAGEMENT

IN LOGISTICS

3.1 Computer Integrated Manufacturing – CIM

The basic aim of CIM is a comprehensive computer-

aided system for integrated implementation of pro-

duction orders. One can say it is an integrated sys-

tem of production order execution.

All data that appear in manufacturing processes

from material supply, through work engineering to

manufacturing and assembly, should always be uti-

lized in planning tasks. While planning production

operations the planner should send all data to the

production area through strictly defined information

channels. All data connected with manufacturing

and executed orders are stored in the central data

base. Production data are created mainly during the

design of a product, then data from orders are added

in the planning phase. These data are crucial for

manufacturing and assembly. Data that appear in the

above areas, i.e. dates/times of completing each

manufacturing operation or operational loads of

each machine, device and work station are included

in the central data base and can be used by the plan-

ning system provided that data from the actual man-

ufacturing and assembly units are sent back via a

company’s data base system or DCN – Direct Nu-

merical Control system.

As computer technologies develop, better tech-

nical conditions are being created for the construc-

tion of more advanced production facilities that may

run automatically, with limited participation of peo-

ple. The role of the human in such systems focuses

on issues such as the programming of computers and

computer-controlled production equipment.

The growing presence of computer systems in all

spheres of manufacturing company operations and

integration of these systems into one all-

encompassing computer system brings about many

changes in technological processes. Some of these

changes lead to:

− shortened time of preparing and executing pro-

duction orders,

− reduction of operating costs,

− improved internal and external communication,

− more effective design, planning and preparation

of production.

One aspect worth emphasizing is increased utili-

zation of company’s production capacity by using

the company’s data base, which allows to eliminate

doing the same work twice. Besides, errors due to

insufficient communication are avoided. The inte-

gration of computer systems enhances the flexibility

of production processes, particularly manufacturing

processes, thus the manufacturer is able to respond

faster to customer’s requests, which often refer to

details of one particular order.

The CIM system consists of two interconnected

subsystems:

1 CAD – Computer Aided Design, which is com-

posed of the mutually co-operating subsystems:

− CAE – Computer Aided Engineering; its task is

to design and engineer new products or to

modernize products already made,

− CAP – Computer Aided Planning and CAPP –

Computer Aided Process Planning; these are

See Durlik I.: Inżynieria Zarządzania, Strategia i projektowa-

nie systemów produkcyjnych, Cz. I. Agencja Wydawnicza

„PLACET”, Warszawa 1998

See Durlik I.: Inżynieria Zarządzania ….

416

supposed to prepare the production process in

terms of technology, i.e. product construction,

technology of manufacturing product parts,

subassemblies and the finished product, prepar-

ing technical drawings, lists of components and

the organization of the machining and assem-

bly process,

− CAD – Computer Aided Design, whose task is

to plan the operation of the manufacturing sys-

tem comprising the manufacturing of parts, as-

sembly of components and the whole product,

including measurements, packaging and dis-

patch of finished products,

− data base (DB) and expert systems (ES), which

enable the functioning of all the areas of com-

puter-aided production together with a expert

knowledge base (KB) co-operating with these

systems;

2 A subsystem of Computer Aided Manufacturing

(CAM), which will be described in the next chap-

ter.

3.2 The system of Computer Aided Manufacturing –

CAM

The Computer Aided Manufacturing (CAM) is de-

fined as a system for preparing programs for the

process of manufacturing, control and recording da-

ta on the manufacturing output. This system also en-

compasses such organization functions as production

planning, setting the dates of materials and subas-

sembly supply from co-operators or the delivery of

finished products.

CAM can be described as:

− a flexible manufacturing system, which is capable

of manufacturing at the same time sets of various

products of different series size, where quantities

and assortments are changed by a computer,

− hierarchically controlled system; computer-

supervised and handled by a small team, making

up less than 10 percent of the company personnel

that would be necessary to perform the same

tasks in conventional conditions.

The system which generates software for the ma-

chining and paths along which parts and subassem-

blies will pass through work modules and stations,

while these programs and paths are optimized rela-

tive to work load and the degree of utilization of

machines and assembly devices, production cycles,

productivity, energy consumption, environment pol-

lution and work security.

See Durlik I.: Inżynieria Zarządzania ….

In industrial practice CAM systems, apart from

the manufacturing in flexible production systems, al-

so include:

− development of software, or operating plans of

machining and assembly, that as a rule are varia-

ble depending on the current production situation,

− planning of component paths and schedules of the

production,

− optimal manufacturing control,

− optimal product quality control,

− production management.

The computer-aided manufacturing – CAM – is

regarded as a development of the designed and func-

tioning flexible manufacturing systems with some

functions connected with control at a level of a spe-

cific production system. The CAM system is often

treated as a transitory stage leading to the computer

integrated manufacturing (CIM).

The CAM system consists of the following sub-

systems:

1 CAMC – Computer Aided Manufacturing Con-

trol; its basic function is programming and com-

puter-aided control of numerically-controlled

manufacturing equipment,

2 CAQ/CAQC – Computer Aided Quali-

ty/Computer Aided Quality Control; this subsys-

tem is designed to provide the highest standard of

product quality,

3 CAT – Computer Aided Testing, for examining

the technical condition of machines and tools.

A production company using computer-aided

manufacturing should have the following technolog-

ical machines and facilities:

− numerically controlled (NC) machines tools,

− machine tools with CNC (Computer Numerical

Control),

− machine tools with DNC (Direct Numerical Con-

trol),

− IR – Industrial Robots,

− IM – Industrial Manipulators,

− AS – Automated Storage,

− AGV – Automated Guided Vehicles.

The use of CIM and CAM systems requires spe-

cific input data, such as production execution orders

and data on future demand for the products offered.

These data are acquired from the computer system

handling distribution logistics. Output data, on the

other hand, after processing in the CIM and CAM

systems, are production schedules, which themselves

constitute input data for computer systems of mate-

rials supply and co-operation.

See Durlik I.: Inżynieria Zarządzania ….

417

3.3 Enterprise Resource Planning - ERP

The computer system of an ERP class can be defined

as a set of integrated functional modules, optimizing

internal and external business processes, those

occurring in the immediate environment of the

enterprise. Such optimization is possible through the

offering of ready tools enabling automation of data

exchange with co-operators within the entire logistic

chain. The main features of the ERP computer

system can be set forth as follows:

− functional complexity – includes all spheres of

technical and economic activities of an enterprise;

it is implemented within the company functional

structure,

− integration of data and processes – refers to data

exchange inside an object (between the modules)

and with the environment (e.g. through an EDI –

Electronic Data Interchange); this feature is

implemented within the information structure,

− structural and functional flexibility – ensures

maximum adjustment of hardware-software

solutions (implemented within the technical and

functional structures) to suit the needs of an

object at the moment the system is installed and

started up; it also enables its dynamic adjustment

when the environment generates variable

requirements and needs,

− openess – assures the ability to extend the system

with new modules, scalable architecture (usually

customer -server) and creation of links with

external systems, e.g. systems of market partners,

− substantial advancement – ensures full computer

aided support of information-decision processes,

using mechanisms of free data extraction and

aggregation, seeking variants, optimization,

projecting etc., as well as, in practice, basing the

system on, inter alia, such concepts of logistic

management as delivery Just in Time (JiT),

production control according to MRP II standards

(Manufacturing Resource Planning), MRP II Plus

(MRP - Money Resource Planning - MRP II

developed with financial procedures, e.g. cash

flow), the ABC method (ABC - Activity Based

Costing), Total Quality Management and ISO

9000 standards,

− technological advancement – guarantees the

compliance with present standards of software

and hardware, making it possible for the system

to migrate to new platforms of computer

equipment, operating systems, communication

media and protocols; it offers a graphical

interface and use of, generally, relational data

base (due to easy way of creating inquiries), with

application of fourth generation programming

tools etc.,

− conformity with Polish legislation, e.g. with the

Act on accounting, in particular the regulations

on book-keeping with the use of information

technology, principles of reporting the financial

performance of a business facility, principles of

preparing financial statements etc.

These systems cover all areas of company

operation (finance, logistics, production, human

resources), optimize internal processes as well as

external processes taking place in the near

environment of the company, by offering ready tools

and allowing to automate data exchange with co-

operators in the whole logistic chain. They also have

a capability of dynamic configuration, which enables

the adjustment of their functionality to the specific

operations of an enterprise or other organization.

− The ERP system comprises the following areas of

logistic activities:

− customer service – customer data base, order pro-

cessing, handling individual orders (products on

request: assembly-to-order, make-to-order), elec-

tronic data interchange (EDI),

− production – handling of resources, product cost

estimation, purchase of raw materials and com-

ponents, production scheduling, management of

product change (introduction of improvements),

projection of production capability, determination

of critical level of stocks/resources, production

process control (e.g. tracking of a product in a

manufacturing plant) etc.,

− finance – accounting, control of accounting doc-

uments flow, financial settlements, preparation

of financial statements as required by the recipi-

ent groups (e.g. for the head office and branches),

− integration of the logistic chain – feature that is

likely to determine future directions ERP sys-

tems will follow, extending their coverage outside

the enterprise.

3.4 Computer-aided Supply Chain Management -

SCM

SCM class solutions offered on the market are tech-

nologically advanced systems. As a rule, they con-

sist of a group of integrated applications serving var-

ious areas of logistic chain management. The basic

SCM element is material flow planning at each

stage, from material extraction to the delivery of

ready product to the consumer, through joint product

design, demand and supply planning, monitoring

stocks level, shipment dispatch organization, joint

information management.

See Adamczewski P.: Zintegrowane systemy zarządzania

ERP/ERPII, Difin, Warszawa, 2003

See Majewski J.; Informatyka dla logistyki, Biblioteka Logistyka,

Poznań 2002

See Majewski J.: Informatyka dla logistyki …

See Długosz J.: Nowoczesne technologie w logistyce, PWE, War-

szawa 2009

418

The integrating function of SCM systems is also

their important feature. It is understood as multi-

functional integration – enabling integration and op-

timization of the main enterprise functions at the

planning and execution level,

− integration of many enterprises – using Internet

capabilities of communications between enter-

prises and their business partners and customers,

− integration with other systems within the enter-

prise – enabling convergence of data with trans-

action systems (including ERP systems, spread-

sheets, data bases, text files).

Complex supply chain management is strictly

connected with the occurrence of eight mutually

supplementing business processes. These are:

− CRM – Customer Relationship Management.

This process enables creating a model supporting

optimal building, development and maintenance

of contacts with customers. Basically, it identifies

market segments, allows to generate criteria for

customer grouping, and estimate their profitabil-

ity. All data generated by a CRM system must be

measurable, so that an appropriate cost, sales and

investment strategy is developed.

− Customer Service Management. Within this ap-

plication the customer is able to have a constant

access to check product availability, delivery

dates or delivery status. Access to current infor-

mation is guaranteed by an interface connected

with manufacturer’s production and logistic

plans. This module supplements data generated

by the CRM with planning procedures which de-

fine the method of delivery and product supervi-

sion for the customer.

− Demand Management. The main function of de-

mand management is to maintain an optimal bal-

ance between customer expectations and produc-

tion capabilities of the manufacturer. Demand

management has advanced projection methods,

where projected results are synchronized with the

production, purchase and distribution. Besides,

this process makes it possible to respond immedi-

ately to any internal and external disturbances in

the process by generating substitute plans.

− Order Execution. Effective order execution calls

for the integration of production, logistic and

marketing plans of the manufacturer. The manu-

facturer should attempt to maintain good relations

with suppliers within the supply chain, in order to

provide added value to customers and reduce

product delivery costs resulting from their geo-

graphical location, characteristics of raw materi-

als offered and the selection of transport modes.

− Manufacturing Flow Management. The process is

directly related with flexible manufacturing of

See Długosz J.: Nowoczesne technologie w logistyce …

products, their quality control, analysis of devia-

tions and continuous control of stocks in ware-

houses. There is a close collaboration of manu-

facturing flow management module with CRM

aimed at building an optimal production infra-

structure.

− Supplier Relationship Management (SRM). In a

sense, SRM reflects the capabilities of CRM. The

difference is, however, that SRM influences

product and service suppliers. SRM is supposed

to identify and build close business relations with

Key Suppliers (classification of suppliers by their

profitability, development opportunities and

methods of servicing sold products).

− Product Development and Sales. The key im-

portance is attributed to how fast a new product

or improved product can be launched on the mar-

ket; in this way SCM integrates customers and

suppliers in the process of product development.

− Claim Management. Effective claim management

is a major component of SCM. Many companies

neglect this aspect, while it turns out to be an es-

sential factor for the company to gain competitive

advantage. The process requires good knowledge

of environment protection issues and some legal

aspects related with product use procedures.

4 CONCLUSION

The presented concept of integrated computer sys-

tem of management in logistics makes use of com-

puter-aided systems already employed in manage-

ment and control of manufacturing processes (CAM

and CIM), those used in the logistics of materials

supply and co-operation (MRPI, MRPII and ERP)

and in distribution logistics (WMS and CMR). The

integrated computer system also incorporates com-

puter systems supporting management in forward-

ing, transport, banking, insurance, customs etc.

The electronic data interchange (EDI) is the plat-

form used for the integration all the above men-

tioned systems.

REFERENCES

1. Adamczewski P., Zintegrowane systemy informatyczne w

praktyce, Wydawnictwo MIKOM, Warszawa 2004

2. Długosz J.: Nowoczesne technologie w logistyce, PWE,

Warszawa 2009

3. Douglas M. Lambert [et al.] ; tł Michał Lipa Zarządzanie

łańcuchem dostaw, (Tyt.oryg.: Harvard Business Review on

Supply Chain Management) HELION, Gliwice 2007

See Douglas M., Lambert [et al.]; tł Lipa M.: Zarządzanie łańcu-

chem dostaw,. HELION, Gliwice 2007

419

4. Durlik I.: Inżynieria Zarządzania, Strategia i projektowanie

systemów produkcyjnych, Cz. I. Agencja Wydawnicza

„PLACET”, Warszawa 1998

5. Lech P., Zintegrowane systemy zarządzania ERP/ERP II,

Difin, Warszawa, 2003

6. Majewski J.: Informatyka dla logistyki, Biblioteka Logisty-

ka, Poznań 2002

7. Śliwczyński B.: Planowanie logistyczne. Podręcznik do

kształcenia w zawodzie technik logistyk. Biblioteka

Logistyka, Poznań 2007