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AIS > AIS 7 > Flashcards

AIS 7 Flashcards

1
Q

Transforms input resources, raw materials, labor, and overhead into finished products or services for sale​

A

The Conversion Cycle​

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2
Q

the production system ​

A

Physical activities

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3
Q

the cost accounting system​

A

Information activities

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4
Q

Involves the planning, scheduling, and control of the physical product through the manufacturing process​

A

Production System

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5
Q

creates a homogeneous product through a continuous series of standard procedures.​

A

Continuous Processing

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6
Q

produces discrete groups (batches) of products. ​

A

Batch Processing

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7
Q

involves the fabrication of discrete products in accordance with customer specifications.​

A

Make-to-Order Processing

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8
Q

Materials and operations requirements ​

Production scheduling​

A

Production Planning and Control

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9
Q

the difference between what is needed and what is available in inventory​

A

Materials requirement

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10
Q

the assembly and/or manufacturing activities to be applied to the product​

A

Operations requirements

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11
Q

Coordinates the production of multiple batches ​

Influenced by time constraints, batch size, and other specifications​

A

Production Scheduling

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12
Q

Production operations begin when work centers obtain raw materials from storekeeping.​

It ends with the completed product being sent to the finished goods (FG) warehouse .​

A

Work Centers and Storekeeping​

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13
Q

minimize total inventory cost while ensuring that adequate inventories exist of production demand​
Provides production planning and control with status of finished goods and raw materials inventory ​
Continually updates the raw material inventory during production process ​
Upon completion of production, updates finished goods inventory​

A

Inventory Control

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14
Q

Very simple too use, but assumptions are not always valid​
-demand is known and constant​
-ordering lead time is known and constant​
-total cost per year of placing orders decreases as the order quantities increase​
-carrying costs of inventory increases as quantity of orders increases​
-no quantity discounts​

A

EOQ Inventory Model

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15
Q

expected demand for the finished goods​

A

Sales Forecast

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16
Q

production plan and authorization to produce​

A

Production Schedule

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17
Q

specifies the types and quantities of the raw materials and subassemblies used to produce a single finished good unit​

A

Bill of Materials (BOM)

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18
Q

details the production path a particular batch will take in the manufacturing process​

sequence of operations​

time allotted at each station

A

Route Sheet

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19
Q

uses the BOM and route sheet to specify the exact materials and production processes for each batch​

A

Work Order

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20
Q

records work done in each work center and authorizes the movement of the batch​

A

Move Ticket

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21
Q

authorizes the inventory warehouse to release raw materials for use in the production process​

A

Materials Requisition

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22
Q

Records the financial effects of the events occurring in the production process​

Initiated by the work order​

Cost accounting clerk creates a new cost record for the batch and files in WIP file​

The records are updated as materials and labor are used​

A

Cost Accounting System​

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23
Q

reflect a legitimate need based on sales forecast and the finished goods on hand​

A

work orders

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24
Q

signatures from each work station authorize the movement of the batch through the work centers​

A

move tickets

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25
Q

authorize the warehouse to release materials to the work centers​

A

materials requisitions

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26
Q

production planning and control department is separate from the work centers​

inventory control is separate from materials storeroom and finished goods warehouse​

cost accounting function accounts for WIP and should be separate from the work centers in the production process​

A

Segregation of duties​

27
Q

work center supervisors oversee the usage of raw materials to ensure that all released materials are used in production and waste is minimized​

employee time cards and job tickets are checked for accuracy​

A

Supervision​

28
Q

controlled access to storerooms, production work centers, and finished goods warehouses ​

quantities in excess of standard amounts require approval​

A

direct access to assets​

29
Q

controlled use of materials requisitions, excess materials requisitions, and employee time cards​

A

indirect access to assets​

30
Q

cost accounting reconciles material usage (material requisitions) and labor usage (job tickets) with standards ​

variances are investigated​

A

Independent verification​

31
Q

GL dept. verifies movement from WIP to FG by reconciling journal vouchers from cost accounting and inventory subsidiary ledgers from inventory control ​

A

Independent verification​

32
Q

internal and external auditors periodically verify the raw materials and FGs inventories through a physical count

A

Independent verification​

33
Q

continuously pursue improvements in all aspects of their operations, including manufacturing procedures​

are highly customer oriented​

have undergone fundamental changes from the traditional production model​

often adopt a lean manufacturing model​

A

World-Class Companies

34
Q

products are pulled from the consumer end (demand), not pushed from the production end (supply)​

A

Pull Processing

35
Q

pull processing requires zero defects in raw material, WIP, and FG inventories​

A

Perfect Quality

36
Q

activities that do not add value or maximize the use of scarce resources are eliminated

A

Waste Minimization

37
Q

hallmark of lean manufacturing​

Inventories cost money​

Inventories can mask production problems​

Inventories can precipitate overproduction​

A

Inventory Reduction

38
Q

reduce setup time to a minimum, allowing for a greater diversity of products, without sacrificing efficiency​

A

Production Flexibility

39
Q

late deliveries, defective raw materials, or incorrect orders will shut down production since there are inventory reserves​

A

Established Supplier Relations

40
Q

each employee must be vigilant of problems that threaten the continuous flow of the production line​

A

Team Attitude

41
Q

is based on flows through cells which shorten the physical distance between activities.​

This reduces setup and processing time, handling costs, and inventories.​

A

Reorganization

42
Q

Consists of many different types of machines which require a lot of setup time​

Machines and operators are organized in functional departments​

WIP follows a circuitous route through the different operations​

A

Traditional Approach to Automation ​

43
Q

Stand alone islands which employ computer numerical controlled (CNC) machines that can perform multiple operations with less human involvement​

A

Islands of Technology​

44
Q

Reduce the complexity of the physical layout​

Arranged in groups and in cells to produce an entire part from start to finish​

Need less set-up time​

​

A

Computer Numerical Controlled (CNC ) Machines

45
Q

A completely automated environment which employs automated storage and retrieval systems (AS/RS) and robotics​

A

Computer Integrated Manufacturing (CIM) ​

46
Q

Replaces traditional forklifts and their human operators with computer-controlled conveyor systems ​

Reduce errors, improved inventory control, and lower storage costs​

A

Automated Storage and Retrieval Systems (AS/RS)​

47
Q

Use special CNC machines that are useful in performing hazardous, difficult, and monotonous tasks​

A

Robotics​

48
Q

Increases engineers’ productivity​

Improves accuracy​

Allows firms to be more responsive to market demands​

Interfaces with CAM and MRPII systems​

A

Computer-Aided Design (CAD)​

49
Q

Uses computers to control the physical manufacturing process​

Provides greater precision, speed, and control than human production processes​

A

Computer Aided Manufacturing (CAM)​

50
Q

automation changes the relationship between direct labor, direct materials, and overhead cost​

A

Inaccurate cost allocations

51
Q

incentives to produce large batches and inventories, and conceal waste in overhead allocations​

A

Promotes nonlean behavior

52
Q

data lag due to assumption that control can be applied after the fact to correct errors​

A

Time lag

53
Q

dollars as the standard unit of measure​

A

Financial orientation

54
Q

is an information system that provides managers with information about activities and cost objects​

A

Activity Based Costing (ABC)

55
Q

assumes that activities cause costs and that products (and other cost objects) create a demand for activities​

A

Activity Based Costing (ABC)…​

56
Q

is different from traditional accounting system since ABC has multiple activity drivers, whereas traditional accounting has only one, e.g. machine hours​

A

Activity Based Costing (ABC)

57
Q

all the steps in a process that are essential to producing a product​

A

Value stream

58
Q

Value streams cut across functions and departments​

Captures costs by value stream rather than by department or activity​

Simpler than ABC accounting​

Makes no distinction between direct and indirect costs​

Including labor costs​

A

Value Stream Accounting​

59
Q

Ensures adequate raw materials for production process​

Maintains the lowest possible level of inventory on hand​

Produce production and purchasing schedules and other information needed to control production​

A

Manufacturing Resources Planning (MRP)​

60
Q

An extension of MRP​

More than inventory management and production scheduling – it is a system for coordinating the activities of the entire firm​

A

MRP II​

61
Q

Huge commercial software packages that support the information needs of the entire organization, not just the manufacturing functions​

A

Enterprise Resource Planning (ERP) Systems

62
Q

Automates all business functions along with full financial and managerial reporting capability​

A

Enterprise Resource Planning (ERP) Systems​

63
Q

External communications with its customers and suppliers via Internet or direct connection​

A

Electronic Data Interchange (EDI)​

AIS (8 decks)

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