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Conversion Cycle Context-Level Data Flow Diagram-Continuous Processing Make-To-Order Processing - Batch Processing

The document discusses different types of manufacturing processes including batch processing and lean manufacturing. It describes the key aspects of batch processing which includes production planning and scheduling, preparing production operations, and inventory control. Lean manufacturing focuses on eliminating waste and reducing production cycle times. Key lean principles include pull processing, perfect quality, and minimizing waste and inventory. The document also covers automation and computer-integrated manufacturing systems that are at the heart of lean philosophy.

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Brigit Martinez
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65 views4 pages

Conversion Cycle Context-Level Data Flow Diagram-Continuous Processing Make-To-Order Processing - Batch Processing

The document discusses different types of manufacturing processes including batch processing and lean manufacturing. It describes the key aspects of batch processing which includes production planning and scheduling, preparing production operations, and inventory control. Lean manufacturing focuses on eliminating waste and reducing production cycle times. Key lean principles include pull processing, perfect quality, and minimizing waste and inventory. The document also covers automation and computer-integrated manufacturing systems that are at the heart of lean philosophy.

Uploaded by

Brigit Martinez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Conversion Cycle- consists of both physical and information activities related to manufacturing

production for sale.

Context-level Data Flow Diagram- illustrates the central role of the conversion cycle and interactions
with other business cycle.

1. Continuous Processing- homogeneous products

2. Make-to-order Processing- fabricated products

3. Batch Processing- batch products, most common method of production.

Documents in Batch Processing System

1. Production Schedule- formal plan and authorization to begin the production, timetable

2. Bill of Materials- specifies type and quantity of materials

3. Route Sheet- shows production path

4. Work Order - draws from Bom and route sheets specify materials

5. Move Ticket- records work done in each work center

6. Materials Requisition - authorizes storekeeper to release materials

Batch Processing

1. Plan and control production

- material and operation requirements

-production scheduling- second activity of the planning and control function

"Master Schedule- coordinates production of many different batches.

-work centers and storekeeping- obtain materials from storekeeping in exchange for materials
requisition

2. Prepare Production Operation

3. Maintain inventory control

4. Prepare cost accounting

Cost Accounting Activities - record the financial effects of physical events.

Lead time- time between placing an order for inventory and it’s arrival

Economic Order Quantity Model- reduce total inventory costs

Additional inventories Safety Stock


Inventory controls

1. Transaction Authorization

2. Segregation of Duties

3. Supervison

4. Access Control

-direct access to assets

-indirect access to assets

*Prenumbered Documents

5. Accounting Records

6. Independent Verification

"World class"- defines the modern era of business

Lean Manufacturing - doing more with less, eliminating waste, and reducing production cycle time.

-direct opposition of traditional manufacturing.

Lean Production

-improved efficiency and effectiveness.

Toyota Production System based on JIT- Just-in-time production model.

1. Pull Processing- involved pulling products.

2. Perfect Quality- requires zero defects in RM, WIP and FG.

3. Waste Minimization- activities that do not add value and maximize the use of scarce resources.

4. Inventory Reduction- Hallmark of lean manufacturing firms is their success in inventory reduction.

*Inventories cost money

*Inventories camouflage production problems

*Willingness to maintain inventories can precipitate overproduction

5. Production flexibility- long machine set ups

5. Established suppliers relations- establish and operative relationship

6. Team attitude- each employee must be vigilant, include purchasing receiving manufacturing
Manufacturing Flexibility- consumerism

Automation- heart of the lean manufacturing philosophy

Traditional manufacturing - consists of range of different machines, great deal of set up time

Island of Technology- describes an environment in the modern automation exists in the form of islands.

*Computer Numerical Controlled(CNC)- machines that can perform multiple operations.

*Computer Integrated Manufacturing (CIM)- completely automated environment with objective of


eliminating non-value added activities.

*Automated Storage and Retrieval Systems (AS/RS)- computer controlled conveyor systems

*Robotics- manufacturing robots are programmed to perform specific actions.

*Computer-Aided Design (CAD)- design better, repetitive design tasks

"manufacturability*

*Computer-Aided Manufacturing (CAM)- assist manufacturing process, focus on shop floor.

Value Stream Mapping- nonessential activities do not and should be eliminated

Value Stream Map- graphically represent their business processes to identify aspects of it that are
wasteful and should be removed.

Deficiencies of standard accounting systems:

1. Inaccurate cost allocations

2. Promotes nonlean behavior

3. Time lag

4. Financial orientation

Activity-Based Costing- method of allocating costs to products and services

*Activities - described the work performed in a firm

*Cost Objects- reasons for performing activities

*Activity driver- measures the activity consumption by cost object.


Value Stream Accounting- captures costs by value Stream rather than activity, includes all costs
associated with product family but makes no distinction.

*Product family- essential aspect in implementing value stream accounting

Materials Requirements Planning (MRP)- limited in focus and geared toward determining how much
raw materials are required, support inventory management.

Materials Requirements Planning II (MRP II)-

evolved from MRP, integrates product manufacturing etc.

Enterprise Resource Planning System (ERP) takes MRP II a step further by integrating all business
functions into core set of applications, compost of modules reflects industry best practices.

Electronic Data Interchange- communication links

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