Page 7 Project AIS Online Production
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    Page 7 Project AIS Online Production Page 7 Project AIS Online Production Presentation Transcript

    • Page 7 Project AIS Online Production Cycle Information System & ERP System Team members in order of appearance: Rie Rios Alex Sanjur Hai Do Lili Azimi Cole Edmondson
    • Online Production Cycle Information System Factory Production Engineering Cost Sales Inventory Planning Accounting Workstations Forecasts Production Product Standard Materials Production and Orders orders and Specifications costs & Requisitions data schedules overhead rates Online Production Manufacturing General information control CIM Ledger system specifications Interface Production Cycle Inventor schedule Producti Productio Operatio materials Progress n orders Master Work in ns list Bill of on y Databases Instructions and schedules Inquiry Processing System Production Productio status n status Cost Performan reports reports Analyses ce reports Production Cost Factory Sales Planning Accounting Supervisor
    • Symbols Review 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 function Usually results with a change in data and/or information. Display – Information displayed by an online output Examples: Terminal, monitor or screen.
    • Sequential & Simultaneous Process Production Engineering Cost Factory Sales Inventory Workstations Planning Accounting Forecasts Production Product Materials Standard Production and orders and Specifications Requisitions costs & data Orders schedules overhead rates Online Manufacturin Gener Production g control CIM al information specification Interface Ledger system s The Sales department enters sales forecasts and customer special order information, then the production planning department uses that information and data about current inventory 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 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 costs of alternative product designs. 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 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 operation of computerized machinery and robots. 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 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 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 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 kinds of costs; raw materials, direct labor, machinery and equipment as well as manufacturing overhead. Materials requisitions are sent to the inventory stores department to authorize the release of raw materials to production.
    • Online Production Cycle Information System Factory Production Engineering Cost Sales Inventory Planning Accounting Workstations Forecasts Production Product Standard Materials Production and Orders orders and Specifications costs & Requisitions data schedules overhead rates Online Production Manufacturing General information control CIM Ledger system specifications Interface Production Cycle Inventor schedule Producti Productio Operatio materials Progress n orders Master Work in ns list Bill of on y Databases Instructions and schedules Inquiry Processing System Production Productio status n status Cost Performan reports reports Analyses ce reports Production Cost Factory Sales Planning Accounting Supervisor
    • Online Production Cycle Information System Data Input/Retrieval Terminals Cost Accounting Sales The sales department enters sales forecasts and customer special order New records are added to the work-in- information based on previous sales process file to accumulate cost data Forecasts and other calculations as well Standard and receive information about sales costs & Data about machinery and equipment Orders transactions so they’ll know when to overhead usage are collected at each production initiate the purchase or production rates step, often with data about labor costs of more inventory but only if the as well as utilities, depreciation, credit of the customer is approved. supervisory salaries. Production Planning Inventory When production is initiated, the Production planning uses that issuance of a materials requisition information and data on current triggers a debit (increase) to work in Production inventory levels to develop a Materials process and a credit (decrease) to raw orders and master production schedule. Requisitions materials inventory. schedules New records are added to the Work in process is credited and production order file to authorize raw materials are debited for any the production of goods. amounts returned to inventory. Engineering Factory Workstations Engineering specifications result in new records for both the bill of Data that contains the list of materials used in materials and the operations list file. Product To create these lists, engineering Production production either by specific item or the complete Specifications accesses both files to view designs of data totals based on a reference of time, as well as similar products. units of measurement and amounts used from one They also access the general ledger period to another and the percentage of change and inventory files for info about between the compared dates or periods. alternate designs.
    • Online Production Cycle Information System Contains summary level data for every asset, liability, revenue and expense Gener al account of the organization. Ledge In the production cycle the general ledger accumulates data about four basic r costs: raw materials, direct labor, Machinery and equipment, and manufacturing overhead. Online An Online system that electronically processes production data from the origin to Production information the user. system Needs online data entry terminal and direct access files, storage media, so each master record can be accessed. Manufacturin Is a temporary online storage medium where adequate controls to meet g control specifications production cycle objectives Where transactions are recorded accurately CIM Computer Integrated Manufacturing is where the instructions to guide operation Interface of machinery and robots.
    • Online Production Cycle Information System Factory Production Engineering Cost Sales Inventory Planning Accounting Workstations Forecasts Production Product Standard Materials Production and Orders orders and Specifications costs & Requisitions data schedules overhead rates Online Production Manufacturing General information control CIM Ledger system specifications Interface Production Cycle Inventor schedule Producti Productio Operatio materials Progress n orders Master Work in ns list Bill of on y Databases Instructions and schedules Inquiry Processing System Production Productio status n status Cost Performan reports reports Analyses ce reports Production Cost Factory Sales Planning Accounting Supervisor
    • Specifies the part number, description, and Quantity Materials ready to be sold of each component used material Inventory in a finished Bill of s Product Specifies how much of each Product, which equipment to Authorizes the manufacture of A specified quantity of particular Operations Use, and how long each step Production Should take Product. Lists where finished product Should be delivered, also collects data orders About each activity. list Specifies how much each Work that is still incomplete, still in product and when the The process of being made. Production product is produced during schedule Progres Work in Master the planning period. s
    • Sales Cost Accounting Production Cost status Analyses reports Provide accurate cost data Report used to see how much about product for use in Is available to sell and what is pricing and product mix Available to sell decision Production planning Factory Supervisors Production status Performance reports reports Provides information for The report is used to see if planning, controlling, enough Is being produced. and evaluating the performance of production operations
    • Threats and Controls Over-or Underproduction *Proper approval of production orders *Restrict access to the production scheduling program using passwords and user IDs. Theft or destruction of inventories *Restrict physical access to work-in-process and finished goods inventories *Documenting all materials movements *Periodic counts of inventory Inaccurate cost data *Automate data collection using RFID technology, bar-code scanners, and other devices * Periodic reconciliation of records with physical counts Poor Product Design *Reducing or eliminating unique components when producing similar products. *Simplifying the complexity involved in the design *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 order to redesign products to improve quality. Disruption of Operations *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 electrical power and that important processes can continue on schedule. *Investigate disaster preparedness of key suppliers and identify alternative sources for critical components.
    • Production Cycle Control Objectives In addition to the above a production cycle in an ERP system should meet the following: • All production activities are by authorized users • WIP & fixed assets are safeguarded • All production transactions in the cycle are recorded • All production transactions in the cycle are accurate • All production transactions in the cycle are backed up and protected • Production cycle activities are efficient
    • Hyundai Manufacturing Process
    • Thank You