chap011 - Chapter 11 The Conversion Business Process Review...

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Chapter 11 The Conversion Business Process Review Questions R1. What is the difference between a materials requisition and a purchase requisition? A material requisition (sometimes called a raw material requisition) is a commitment event whereby the inventory clerk or warehouse supervisor commits to the production supervisor to transfer materials from the materials warehouse to the production floor. A materials requisition assumes the raw materials are available within the enterprise, and is reserving them for use. In contrast, warehouse personnel initiate purchase requisitions to indicate the need to acquire the items from an external source. Thus, if a material requisition is initiated for which insufficient materials are on-hand in the warehouse, this will likely trigger a purchase requisition and thereby instigate events in the acquisition/payment process. However, the raw material requisition event occurs within the conversion cycle and the purchase requisition event occurs within the acquisition/payment cycle. R2. What is the primary objective of the conversion process? The primary objective of the conversion process is to convert (transform) raw inputs such as raw materials and labor into marketable finished products. R3. How is the conversion process related to the financing process, the human resource process, the acquisition/payment process, and the sales/collection process? No direct relationship exists between the financing and conversion processes. Materials, machinery, and overhead items such as utilities that are acquired in the acquisition/payment process are made available to and are used up in the conversion process. Labor acquired in the human resource process is made available to and is used up in the conversion process. Finished products generated in the conversion process are made available and are used up in the sales/collection process. Solutions Manual to accompany Dunn, Enterprise Information Systems: A Pattern Based Approach, 3e 143
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Chapter 11 R4. Identify the resources and agents associated with each of the following events in the conversion process: a. Materials Requisition (Commitment to Decrement) b. Materials Issuance (Economic Decrement) c. Labor Operation (Economic Decrement) d. Machine Operation (Economic Decrement) e. Production Order (Commitment to Increment) f. Production Run (Economic Increment) Event Resources Agents Materials requisition Materials inventory type Production supervisor, Warehouse personnel Materials issuance Materials inventory type Production supervisor, Warehouse personnel Labor operation Labor type Production supervisor, Production employee Machine operation Machinery or equipment Production supervisor, Production employee Production order Finished goods inventory Production supervisor, Production employee Production run Finished goods inventory Production supervisor, Production employee R5. Describe the information needed by each of the following in performing their role in the conversion process. a. Management
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chap011 - Chapter 11 The Conversion Business Process Review...

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