Chapter 11 Flashcards
logistics
the logical systematic flow of resources throughout the organization
planning
determines what products should be produces, how many, what resources should be available, and what timing is needed
research and development
focuses on product improvements
capital budgeting
plans the capital resources needed to support production
engineering
responsible for planning the specification for products that will be manufactured
bill of materials
the form that specifies the components of a product, including descriptions and quantities of materials and parts needed
operation list
describes the chain of events that constitute a product’s production
scheduling
plans the timing for production activities, taking into consideration all the open sales orders, inventory needs, and the resources available
production orders
authorize production activities for a particular sales order or forecasted need
production schedule
outlines the specific timing required for a sales order, including the dates and times designated for the production run
maintenance and control
concerned with maintaining the capital resources used to support production, including production facilities and other fixed assets such as machinery, equipment, computers, and vehicles
human resources
responsible for managing the placement and development of sufficient qualified personnel
inventory control
responsible for managing and recording the movement of inventory in the many different directions that it may go throughout the conversion process
economic order quantities
the most efficient quantity of products to purchase
stores
control of raw materials inventory held in storage or in holding areas, waiting for processing
raw materials
include the basic components of the company’s products, including anything from wood, metal, and nails to finished parts purchased as subassemblies
routing
the issuance and movement of materials into the various production phases
routing slip
documents the descriptions and quantities of materials taken into production for a specified sale or other authorized production activity
work in process inventory
inventory that is in process
finished goods inventory
when goods are finished
inventory status reports
prepared at various stages of the production process in order to document the extent of work completed and the resulting level of inventory
warehousing
involves managing the holding area for finished goods awaiting sale
operations
term commonly used to refer to the major business activity in which a company engages
quality control
follow up to production, inspecting if the products are up to par
rework
additional procedures necessary to bring a product up to its required specifications
standard costs
expected costs based on projections of a product’s required resources
perpetual inventory systems
involve recording purchases as raw materials inventory, recording all the components of work in process for inventories at various stages of production, recording the total cost of sales for products completed and sold
periodic inventory systems
involve updating the inventory and cost of sales accounts only at the end of the period
variances
represent the differences between actual costs and the standard costs applied
control acitivites
authorization segregation of duties adequate records and controls safeguarding of assets independent checks and reconciliation
physical inventory count
determines the quantity of inventory on hand by actually counting all items on the premises and in other areas of the company’s responsibilities
physical inventory reconciliation
comparing the perpetual system inventory to the physical count
computer aided design
techniques may be used to enhance the engineering function
computer aided manufacturing
involves the complete automation of the production process, including the full replacement of human resources with computers
industrial robots
computers programmed to perform repetitive procedures
materials resource planning
involves the automated scheduling of production orders and movement of materials in the production process
manufacturing resource planning
considers all manufacturing resources rather than just materials
enterprise wide resource planning
integrating all processes into one program
computer integrated manufacturing systems
integrate all of the conversion processes to allow for minimal disruptions due to reporting requirements or inventory movement issues
just in time production systems
concerned with minimizing or eliminating inventory levels and the related costs of maintaining those inventories
earnings management
the act of misstating financial info in order to improve financial statement results
absorption costing
involves inclusion of both variable and fixed costs in the determination of unit costs for ending inventories and cost of goods sold
