Conversion Cycle Flashcards
What are the 4 processes of the traditional batch order processing?
- Plan and Control Production
- Perform Production Operations
- Inventory Control
- Perform Cost Accounting
When does production start?
When it receives materials from storekeeping
Who provides the proudction planning and control with the status of raw materials and finished goods?
Inventory Control
Is the Eoq simple and valid?
Yes but not all the time
What is the relationship between cost per year of placing orders and order quantities
Inverse
What is needed to authorize the inventory warehouse to release raw materials
Materials Recquisition
What trigges the conversion cycle?
Sales Order
Job Tickets is given to ____ while the Time Card is given to the ____
Cost Accounting
Payroll
Completed Move Ticket is given to —_
Production planning and control
What initiate the cost accounting system?
Open work order file
What are the elements of a cost accounting system?
Inventory Control: mat requisition
Work Center: Job Ticket and Completed Move Ticket
What signals the end of a production process?
Receipt of last move ticket
What are the documents that consitute transaction authorization?
Work Order, Move Ticket, and Materials Recquisitions
Which department reconciles the overall system?
General Ledger
Which department reconciles with the cost in the production system?
Cost Accounting
T or F: Direct access of assets include controlled use of materials requisitions, excess materials requisitions, and employee time cards
F
What does the general ledger reconcile to verify the movement from wip to fg
The cost accounting and inventory control documents
World class companies often adopt ____ manufacturing
Lean
What is the hallmark principle of Lean manufacturing?
Least inventory needed
What are the principles of lean manufacturing?
- Pull Processing
- Perfect Quality (Zero Defects)
- Waste Minimization (Resource Maximization)
- Reduced Inventory
- Production Flexibility
- Supplier Relations
- Team Attitude
Reorganization is based on _______ which shortens physical distance between activties
FLows through cells
_____ __ _____ are stand alone isalnds that employ ___ ___ __ machinees that can perform multiple operations with less human involvement
Islands of technology, Computer Numerical Controlled
an environment that is completely automated
Computer Integrated Manufacturing
Replaces traditional forklifts and human operators, reduces errors, improved inventory control, and lower storage costs
Automated Storage and Retrieval Systems
