The Conversion Cycle Flashcards
(22 cards)
the central role of conversion cycle and interaction with other business.
Traditional Manufacturing Environment
Enumerate the 3 Production Method
Continuous Processing
Make-to-order Processing
Batch Processing
this approach firms attain to maintain finish goods inventory at levels needed to meet expected sales demand.
Continuous Processing
It initiated by sales order rather than inventory
Make-to-order Processing
It discrete batches of products. Each item is similar and requires same material and operations.
Batch Processing
It depicts the primary information flows that integrate these activities and link to the other system.
Batch Processing System
Enumerate the documents in batch processing system
Production Schedule
Bill of Materials
Route Sheets
Work Order
Move Tickets
Materials Requisition
It is the formal plan to begin production
Production Schedule
It specifies the types and quantity of raw materials
Bill of materials
The production path that a particular batch follows during manufacturing
Route Sheets
It specify the materials of production for each batch
Work Order
Work done in each work center and authorize the movement
Move tickets
Authorize the storekeeper to release materials to individual and work center for production purposes.
Materials Requisition
the organization functions, the task performed in each function and the documents that trigger or result of tasks.
Batch Production Activities
info comes from inventory on hand, sales forecast, engineering and bill of materials.
Materials and Operation Requirement
influence by time constraints, batch size from bill of materials and route sheets.
Productions Scheduling
Materials, labor and overhead are required to manufacture a product.
Work Centers and Storekeeping
Enumerate the 3 main activities of Inventory Control
- Provide production planning and control of FG and Raw materials.
- Continually updating the RM inventory.
- Updating the FG goods.
it Records the financial effects of the physical effects that are occurring in the production process
Cost Accounting Activities
Begins with PP&C department sends the copy of original word order to Cost Accounting Department.
Cost Accounting Activities
They oversee usage of RM and timekeeping
Supervisors
It reconciles all cost of production
Cost Accounting Function
