Page 7 Project AIS Online Production

ProjectPage 7 ProjectAIS Online Production AIS Online Production

Cycle Information System & ERP SystemCycle Information System & ERP System

Team members in order of appearance:Team members in order of appearance:

Rie RiosRie Rios

Alex SanjurAlex Sanjur

Hai DoHai Do

Lili AzimiLili Azimi

Cole EdmondsonCole Edmondson

Team members in order of appearance:Team members in order of appearance:

Rie RiosRie Rios

Alex SanjurAlex Sanjur

Hai DoHai Do

Lili AzimiLili Azimi

Cole EdmondsonCole Edmondson

Forecastsand Orders

Standard costs & overhead

rates

Production orders and schedules

Product Specifications

Materials Requisitions

Production data

General Ledger

Online Production information

system

Manufacturing control

specificationsCIM

Interface

Bill

of

mat

eria

ls

Ope

ratio

ns

list

Mas

ter

Pro

duct

ion

sche

dule

Inve

ntor

y

Pro

duct

ion

orde

rs

Wor

k in

P

rogr

ess

Inquiry Processing

System

Productionstatusreports

Performance

reports

Production status reports

Cost Analyses

Instructions and

schedules

Sales ProductionPlanning

Engineering

CostAccounting

Inventory

Factory

Workstations

Production

Cycle

Databases


CostAccounting

Factory Supervisor

Online Production Cycle Information SystemOnline Production Cycle Information System

Online Keying – Data entered by online device Example: Terminal or personal Computer

On-line Storage – Data stored in a temporary online file in a Direct access such as a disk

Magnetic disk – Data stored permanently on a magnetic disk;This is used as master files and databases

Computer Processing – Computer performed processing functionUsually results with a change in data and/or information.

Display – Information displayed by an online output Examples: Terminal, monitor or screen.

Symbols ReviewSymbols Review

Sequential & Simultaneous ProcessSequential & Simultaneous ProcessSequential & Simultaneous ProcessSequential & Simultaneous Process

Forecastsand Orders

Standard costs &

overhead rates




Production data

General

Ledger


system


specifications

CIMInterface


Engineering

CostAccounting

Inventory

The Sales department enters sales forecasts and customer special order information, then The Sales department enters sales forecasts and customer special order information, then the production planning department uses that information and data about current inventory the production planning department uses that information and data about current inventory levels to develop the master production schedule, from there the engineering department levels to develop the master production schedule, from there the engineering department accesses the bill of materials and operations list files and these two documents have the accesses the bill of materials and operations list files and these two documents have the specifications of new products to be created, these two files examine the design of similar specifications of new products to be created, these two files examine the design of similar products, they also access the general ledger and inventory files for information about the products, they also access the general ledger and inventory files for information about the costs of alternative product designs.costs of alternative product designs.

New records are added to the production order file to authorize the production of specific New records are added to the production order file to authorize the production of specific goods. At that same time, new records are added to the work in process file to accumulate goods. At that same time, new records are added to the work in process file to accumulate cost data. The list of operations to be performed is displayed at the appropriate cost data. The list of operations to be performed is displayed at the appropriate workstation. Corresponding instructions are also sent to the CIM interface to guide the workstation. Corresponding instructions are also sent to the CIM interface to guide the operation of computerized machinery and robots.operation of computerized machinery and robots.

Cost accounting has three principal steps which are to provide information for planning, Cost accounting has three principal steps which are to provide information for planning, controlling and evaluating the performance of the production operation, second is to provide controlling and evaluating the performance of the production operation, second is to provide accurate cost data about products for use in pricing and product mix decisions and third to accurate cost data about products for use in pricing and product mix decisions and third to collect and process the information used to calculate the inventory and cost of goods sold collect and process the information used to calculate the inventory and cost of goods sold that appear in the company’s financial statements, all these elements in order to be that appear in the company’s financial statements, all these elements in order to be successfully integrated must collect data in real time in order for management to make successfully integrated must collect data in real time in order for management to make timely decisions. In this case this diagram can be used to implement either a job order or timely decisions. In this case this diagram can be used to implement either a job order or process costing system because both systems require accumulating data about four basic process costing system because both systems require accumulating data about four basic kinds of costs; raw materials, direct labor, machinery and equipment as well as kinds of costs; raw materials, direct labor, machinery and equipment as well as manufacturing overhead.manufacturing overhead.

Materials requisitions are sent to the inventory stores department to authorize the release Materials requisitions are sent to the inventory stores department to authorize the release of raw materials to production.of raw materials to production.

The Sales department enters sales forecasts and customer special order information, then The Sales department enters sales forecasts and customer special order information, then the production planning department uses that information and data about current inventory the production planning department uses that information and data about current inventory levels to develop the master production schedule, from there the engineering department levels to develop the master production schedule, from there the engineering department accesses the bill of materials and operations list files and these two documents have the accesses the bill of materials and operations list files and these two documents have the specifications of new products to be created, these two files examine the design of similar specifications of new products to be created, these two files examine the design of similar products, they also access the general ledger and inventory files for information about the products, they also access the general ledger and inventory files for information about the costs of alternative product designs.costs of alternative product designs.

New records are added to the production order file to authorize the production of specific New records are added to the production order file to authorize the production of specific goods. At that same time, new records are added to the work in process file to accumulate goods. At that same time, new records are added to the work in process file to accumulate cost data. The list of operations to be performed is displayed at the appropriate cost data. The list of operations to be performed is displayed at the appropriate workstation. Corresponding instructions are also sent to the CIM interface to guide the workstation. Corresponding instructions are also sent to the CIM interface to guide the operation of computerized machinery and robots.operation of computerized machinery and robots.

Cost accounting has three principal steps which are to provide information for planning, Cost accounting has three principal steps which are to provide information for planning, controlling and evaluating the performance of the production operation, second is to provide controlling and evaluating the performance of the production operation, second is to provide accurate cost data about products for use in pricing and product mix decisions and third to accurate cost data about products for use in pricing and product mix decisions and third to collect and process the information used to calculate the inventory and cost of goods sold collect and process the information used to calculate the inventory and cost of goods sold that appear in the company’s financial statements, all these elements in order to be that appear in the company’s financial statements, all these elements in order to be successfully integrated must collect data in real time in order for management to make successfully integrated must collect data in real time in order for management to make timely decisions. In this case this diagram can be used to implement either a job order or timely decisions. In this case this diagram can be used to implement either a job order or process costing system because both systems require accumulating data about four basic process costing system because both systems require accumulating data about four basic kinds of costs; raw materials, direct labor, machinery and equipment as well as kinds of costs; raw materials, direct labor, machinery and equipment as well as manufacturing overhead.manufacturing overhead.

Materials requisitions are sent to the inventory stores department to authorize the release Materials requisitions are sent to the inventory stores department to authorize the release of raw materials to production.of raw materials to production.

FactoryWorkstatio

ns

Forecastsand Orders


rates




Production data

General Ledger


system


specificationsCIM

Interface

Bill

of

mat

eria

ls

Ope

ratio

ns

list

Mas

ter

Pro

duct

ion

sche

dule

Inve

ntor

y

Pro

duct

ion

orde

rs

Wor

k in

P

rogr

ess

Inquiry Processing

System


Performance

reports


Cost Analyses

Instructions and

schedules


Engineering

CostAccounting

Inventory

Factory

Workstations

Production

Cycle

Databases


CostAccounting

Factory Supervisor


Online Production Cycle Information System Online Production Cycle Information System Data Input/Retrieval TerminalsData Input/Retrieval Terminals

Forecastsand

Orders

Standard costs &

overhead rates




Production data

Sales

Production Planning

Engineering

Cost Accounting

Inventory

Factory Workstations

Data that contains the list of materials used in production either by specific item or the complete totals based on a reference of time, as well as units of measurement and amounts used from one period to another and the percentage of change between the compared dates or periods.

Engineering specifications result in new records for both the bill of materials and the operations list file.To create these lists, engineering accesses both files to view designs of similar products.They also access the general ledger and inventory files for info about alternate designs.

Production planning uses that information and data on current inventory levels to develop a master production schedule.New records are added to the production order file to authorize the production of goods.

The sales department enters sales forecasts and customer special order information based on previous sales and other calculations as well receive information about sales transactions so they’ll know when to initiate the purchase or production of more inventory but only if the credit of the customer is approved.

When production is initiated, the issuance of a materials requisition triggers a debit (increase) to work in process and a credit (decrease) to raw materials inventory.

Work in process is credited and raw materials are debited for any amounts returned to inventory.

New records are added to the work-in-process file to accumulate cost data

Data about machinery and equipment usage are collected at each production step, often with data about labor costs as well as utilities, depreciation, supervisory salaries.

Online Production Cycle Online Production Cycle Information SystemInformation System

General

Ledger

General

Ledger


system


specifications

CIMInterface

Contains summary level data for every asset, liability, revenue and expense account of the organization.In the production cycle the general ledger accumulates data about four basic costs: raw materials, direct labor,Machinery and equipment, and manufacturing overhead.

An Online system that electronically processes production data from the origin to the user.Needs online data entry terminal and direct access files, storage media, so each master record can be accessed.

Is a temporary online storage medium where adequate controls to meet production cycle objectivesWhere transactions are recorded accurately

Computer Integrated Manufacturing is where the instructions to guide operationof machinery and robots.

Forecastsand Orders


rates




Production data

General Ledger


system


specificationsCIM

Interface

Bill

of

mat

eria

ls

Ope

ratio

ns

list

Mas

ter

Pro

duct

ion

sche

dule

Inve

ntor

y

Pro

duct

ion

orde

rs

Wor

k in

P

rogr

ess

Inquiry Processing

System


Performance

reports


Cost Analyses

Instructions and

schedules


Engineering

CostAccounting

Inventory

Factory

Workstations

Production

Cycle

Databases


CostAccounting

Factory Supervisor


Bil

l o

f m

ate

ria

ls

Bil

l o

f m

ate

ria

lsO

pe

rati

on

s

lis

tOp

era

tio

ns

li

st

Ma

ste

r P

rod

uc

tio

n

sc

he

du

le

Ma

ste

r P

rod

uc

tio

n

sc

he

du

le

Inv

en

tory

Inv

en

tory

Pro

du

cti

on

o

rde

rs

Pro

du

cti

on

o

rde

rs

Wo

rk i

n

Pro

gre

ss

Wo

rk i

n

Pro

gre

ss

Specifies the part number, description, and Quantity of each component used in a finishedProduct

Specifies the part number, description, and Quantity of each component used in a finishedProduct

Specifies how much of each Product, which equipment to Use, and how long each step Should take

Specifies how much of each Product, which equipment to Use, and how long each step Should take

Specifies how much eachproduct and when theproduct is produced during the planning period.

Specifies how much eachproduct and when theproduct is produced during the planning period.

Authorizes the manufacture ofA specified quantity of particularProduct. Lists where finished product Should be delivered, also collects data About each activity.

Authorizes the manufacture ofA specified quantity of particularProduct. Lists where finished product Should be delivered, also collects data About each activity.

Work that is still incomplete, still in The process of being made.Work that is still incomplete, still in The process of being made.

Materials ready to be soldMaterials ready to be sold


Performancereports


Cost Analyses

Provides information for planning, controlling, and evaluating the performance of productionoperations

Provide accurate cost data about product for use in pricing and product mix decision

Sales

Production planning

Cost Accounting

Factory Supervisors

Report used to see how muchIs available to sell and what is Available to sell

The report is used to see if enough Is being produced.

ThreatsThreats and and ControlsControlsOver-or UnderproductionOver-or Underproduction*Proper approval of production orders*Proper approval of production orders*Restrict access to the production scheduling program using passwords and user IDs.*Restrict access to the production scheduling program using passwords and user IDs.

Theft or destruction of inventoriesTheft or destruction of inventories*Restrict physical access to work-in-process and finished goods inventories*Restrict physical access to work-in-process and finished goods inventories*Documenting all materials movements*Documenting all materials movements*Periodic counts of inventory *Periodic counts of inventory

Inaccurate cost dataInaccurate cost data*Automate data collection using RFID technology, bar-code scanners, and other devices*Automate data collection using RFID technology, bar-code scanners, and other devices* Periodic reconciliation of records with physical counts* Periodic reconciliation of records with physical counts

Poor Product DesignPoor Product Design*Reducing or eliminating unique components when producing similar products.*Reducing or eliminating unique components when producing similar products.*Simplifying the complexity involved in the design*Simplifying the complexity involved in the design*Analysis of accurate data about the relationship between components and finished goods.*Analysis of accurate data about the relationship between components and finished goods.*Analysis of warranty and repair costs to identify the primary causes of product failure, in *Analysis of warranty and repair costs to identify the primary causes of product failure, in

order to redesign products to improve quality.order to redesign products to improve quality.

Disruption of OperationsDisruption of Operations*Backup power sources, like generators, and uninterruptible power supply devices should be *Backup power sources, like generators, and uninterruptible power supply devices should be

acquired to ensure that critical equipment and machinery is not damaged by loss of acquired to ensure that critical equipment and machinery is not damaged by loss of electrical power and that important processes can continue on schedule.electrical power and that important processes can continue on schedule.

*Investigate disaster preparedness of key suppliers and identify alternative sources for *Investigate disaster preparedness of key suppliers and identify alternative sources for critical components.critical components.

Production Cycle Control Production Cycle Control ObjectivesObjectives

In addition to the above a production In addition to the above a production cycle in an ERP system should meet cycle in an ERP system should meet the following:the following:

• All production activities are by authorized usersAll production activities are by authorized users• WIP & fixed assets are safeguardedWIP & fixed assets are safeguarded• All production transactions in the cycle are All production transactions in the cycle are

recordedrecorded• All production transactions in the cycle are accurateAll production transactions in the cycle are accurate• All production transactions in the cycle are backed All production transactions in the cycle are backed

up and protected up and protected • Production cycle activities are efficientProduction cycle activities are efficient

Hyundai Manufacturing ProcessHyundai Manufacturing Process

Thank YouThank YouThank YouThank You

Page 7 Project AIS Online Production

Documents

Transcript of Page 7 Project AIS Online Production