PART 5- CONVERSION Flashcards
It is the transfer input resources, such as raw materials, direct labor and factory overhead into finish goods or services for sale.
THE CONVERSION CYCLE
it is the central role of conversion cycle and interaction with other business
Traditional Manufacturing Environment
Three (3) Production Method are?
- Continuous Processing
- Make-to-order Processing
- Batch Processing
A Production Method that attain to maintain finish goods inventory at
levels needed to meet expected sales demand
Continuous Processing
A Production Method that initiated by sales order rather than inventory
Make-to-order Processing
A Production Method that discrete batches of products. Each item is similar and requires same
material and operations
Batch Processing
it depicts the primary information flows that integrate these activities and link to the other
system.
Batch Processing System
Documents in the Batch Processing System
- Production Schedule
- Bill of materials
- Route Sheets
- Work Order
- Move Tickets
- Materials Requisition
____ the organization functions, the task performed in each function and the documents that
trigger or result of tasks
Batch Production Activities
Production Planning and Control consists of?
- Materials and Operation Requirement
- Productions Scheduling
- Work Centers and Storekeeping
Production Planning and Control:
info comes from inventory on hand, sales forecast, engineering and bill of materials.
Materials and Operation Requirement
Production Planning and Control:
– influence by time constraints, batch size from
bill of materials and route sheets
Productions Scheduling
Production Planning and Control:
Materials, labor and overhead are required to manufacture a product
Work Centers and Storekeeping
Inventory Control – consist of three main activities
what are those?
- Provide production planning and control of FG and Raw materials.
- Continually updating the RM inventory.
- Updating the FG goods.
Objective of the inventory control
Minimize total inventory cost while ensuring the adequate inventories exist to meet demands
formula for “When should the inventory be produce?”
*Using Reordering Point (ROP)
ROP= L x D
L- Lead time
D- no. of working days
formula for “How much inventory should be purchase?”
*Using Economic Order Quantity (EOQ)
EOQ= √2CN/K
C- Ordering cost
N- No. of units
K- Carrying cost
It Records the financial effects of the physical effects that are occurring in the production
process.
Cost Accounting Activities
_____ Begins with PP&C department sends the copy of original word order to Cost Accounting
Department.
Cost Accounting Activities
