Production - Chapter 5: The Production Process Click to...

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Unformatted text preview: Chapter 5: The Production Process Click to edit Master subtitle style 1 1 Magal and Word | Essentials of Business Processes and ! and Information Systems | © 2009 Information Systems | © 2009 9/27/11 WCGW’s for the Production Transfers of raw materials to production are recorded inaccurately or not at all. Direct labor expenses to production are recorded inaccurately or not at all. Transfer of completed units to production are recorded inaccurately or not at all. WIP is inaccurate. 2 2 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 9/27/11 Bill of Material (BOM) Identifies components needed to make one unit(or batch) of finished product Result of the product design process which leads to an engineering drawing SSB BOM for standard skateboard (next slide) Multiple levels of BOM A component may have its own components Example: components of the standard truck assembly 3 3 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 9/27/11 Engineering Drawing of the 4 4 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 9/27/11 Bill of Material 5 5 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 9/27/11 Product Routing Define the steps or operations needed to produce the product For each operation Time needed Standard Rate 6 6 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 9/27/11 Product Routing for Standard 7 7 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 9/27/11 Production capacity Number of skateboards per unit of time (hour, day) Approximately 50 per day (8 hours) Operation Number Time (minutes) per unit Time needed for 50 SB (or operation) (minutes) 10 20 30 40 50 60 8 8 Operation Name Stage Material Assemble SB Inspect Deck Pack in Packing Box Final Inspection Move to Storage Total Time 5 per 50 6 per SB 1 per SB 1 per SB 1 per SB 5 per 50 5 300 50 50 50 5 460 = 7.66 hours Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 9/27/11 Role of Enterprise Systems in the Production Process Execute the Process Request Production Authorize Production Issue Raw Materials to Production Order Create (Assemble) Products Receive Finished Goods into Storage Capture and Store Process Data 9 9 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 9/27/11 ...
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