Lesson 3 Flashcards
Organizational plan
Provides detailed description
Form of the business organization
Liability of the owner
organizational structure
roles and responsibilities
Salary requirements
Liability of the owners
Extent of the owners financial obligation with creditors
Limited liability
The creditor cannot go after the personal property of the business owner. Extent of his or her financial contributions to the business
Unlimited liability
Creditors can run after the personal property of the owner in an event of the business dissolution
Organizational structure
Define the hierarchy of the different positions in the organization and the interrelationship of the different offices or departments
Depicts the flow of communication
Most complicated organizational structure
Corporation
Roles and responsibilities
Positions must be clearly defined in order to minimize and void misunderstandings
Production plan
Production schedule
production process
Processing plant and equipment sources of material
Production cost
Production schedule
Demand for the product
availability of resources
Capacity of the plant
Production process
Exact processing procedure
materials parts or ingredients required
expected time to process a product
Processing plant and equipment
Capacity of the plant
model of the machinery
availability of spare parts
cost and terms of payment
Sources of materials
Proximity of the source to the processing plant
Payment terms and conditions discounts and damages
terms of shipment
Production Cost
Three elements of cost labor direct materials and factory
Operational plan
Evaluation of suppliers
materials requisition and receiving procedures
storage and inventory control system
shipment system and control functions of support services
justIn time manufacturing
Storage in warehouse are eliminated because only actual orders are produced at the exact required time
Material requisition and receiving procedures
Basis of receiving raw materials comparison of order and receipt quality of materials received
Storage and inventory control system
Owning a warehouse
management of a warehouse
Procedures in the transferring of goods
Control of inventory in the warehouse
Shipment system and control
Approval of shipment and sales documents
Terms of shipping
Manner of shipping
Other terms and conditions
Functions of support services
Finance marketing operation
human resources
Form of the business organization
Capital requirement
Liability
management and supervisory skills
tax implication
Government intervention
nature of the business
external financing requirement
