ADM 1100 Flashcards
Other Developments in Layout Flexibility
Flexibility manufacturing process (FMS), soft manufacturing, movable factory
Scheduling Goods Operations
Master production schedule
Which products, when, what resources, what time period
Scheduling Service Operations
Low-contact services: based on desired completion dates and/or arrival
High-contact services:
Gantt Charts
A diagram of steps in the project and the time required for each
Can be used to check the progress
PERT Charts
Specifies the sequence and critical path of steps in a project
Can identify activities that will cause delay
Materials Management
Planning, organizing, and controlling the flow of materials from purchasing
Tools for Process Control
Worker training,
Materials Requirements Planning (MRP)
Computerized bill of materials estimates production needs
Resources are acquired and put into production only as needed
Manufacturing Resource Planning (MRP II)
Advanced version of MRP; ties all parts of the organization into production activities
Domestic Productivity
Productivity affects standard of living: employees (wages), investors (profits), customers (prices)
Manufacturing productivity is higher than service productivity
But service industries have made some recent gains from modern information technology that eliminates
TQM (total quality management)
Includes all activities and parts of the business (customers, suppliers, employees)
Leadership and customer focus are key
Requires highest level of commitment (no defects
Performance Quality: refers to the features of a product and how well it performs
Quality-Assurance Tools
Competitive product analysis
Value-added analysis
Statistical process control
Quality/cost studies
Quality-improvement teams
Benchmarking
Value-Added Analysis
Evalutation
Statistical Process Control (SPC)
SPC methods enable managers to analyze variations in production data
Detect when adjustments are needed to create products with high quality reliability
Process Variation
Change in employees, materials, work methods, or equipment that affects output quality
Control Chart
Quality/Cost Studies
Assesing
Benchmarking
Compares the quality of a firm’s output with the quality of the output
Supply Chain Management
Offers a competitive edge because companies are working together to improve the overall flow of goods
Accounting
A comprehensive system for collecting, analyzing, and communicating financial information
Bookkeeping
International Financial Reporting Standards (IFRS)
Standard accounting rules
Asset
Anything of economic value of owned by a firm or individual
Liability
Any debt owed by a firm or an individual
Owner’s Equity
Any positive difference between a firm’s
The Accounting Equation
Assets = Liabilities + Owners’ Equity
Current Assets: Cash
Things you can convert into cash within a year
Current Assets: Accounts Receivable
Amounts owed to the firm by customers
Current Assets: Inventory
Cost of merchandise acquired for sale but not yet sold
Current Assets: Prepaid Expenses
Supplies on hand and rent (other bills) paid for coming period
Fixed Assets
Have long-term use or value (ex. land, building, machinery, depreciation)
Depreciation
Distributing the cost of a major asset over its lifetime, deducted yearly
Finance Involves 4 key Responsibilities
Determine a firm’s long-term investments
Obtain funds to pay for those investments
Conduct the firm’s everyday financial activities
Help manage the risks that a firm takes
Financial Statements: Intangible Assetes
Non-physical assets with economic value (difficult to calculate) (ex. patents, trademarks, franchise fees, copyrights)
Financial
Liabilities and Owner’s Equity
Current Liabilities: debts owed by the firm the must be paid
Income Statement
Operations
Cash flows from buying and selling of goods and services
Investments
Cash flows from investment activities
Financing
Cash flows from financing activities
Revenue Recognition
The formal recording and reporting of revenues in financial statements once the earnings cycle is completed
Matching
Expenses will be matched with revenues to show net income for an accounting period
Budget
A detailed financial plan of estimates receipts and expenditures for a future period
An internal financial statement (usually 1 year)
Requires input from other departments
Compares actual vs. budget to signal problems
Solvency Ratios (S)
Short term: current ratio
Long term:
