BA101 Midterm 2 - Paris
3D Printing (Additive Manufacturing)
(Additive Manufacturing) builds a product one layer at a time by a nozzle similar to those in inkjet printers
Production Process or Transformation Process
- Inputs - Production Control - Outputs
What are two goals of operations management?
- create a good experience for customer - keep operations running efficiently
What are two characteristics of lean manufacturing?
-Less human effort (less time) -less manufacturing space (less resources)
Steps in Accounting Cycle
1. Analyze business transactions 2. Journalize the transactions 3. Post to ledger accounts 4. Prepare a trial balance 5. Journalize and post adjusting entries 6. Prepare an adjusted trial balance 7. Prepare financial statements 8. Journalize and post closing entries 9. Prepare a post-closing trial balance
Ledger
A specialized record book or computer program that contains summaries of all journal entries
Baldrige Awards
A standard set for overall company quality. Following areas: - Manufacturing - Services - Smal Businesses - Nonprofit/Gov - Education - Healthcare
Annual Report
A yearly statement of a firm's financial condition, progress, and expectations
Production Management
All the activities managers engage in to help firms create goods
First Step in Accounting Cycle
Analyze business transactions
Ratio Analysis
Assessment of a firm's financial condition, using calculations and financial ratios developed from the firm's financial statements.
Accounting Equation
Assets = Liabilities + Owners' Equity
What do millenials and Gen-z like?
Collaboration Customization Organically made
Materials Requirement Planning (MRP)
Computer based operations management system that uses sales forecasts to make sure needed parts and materials are available at the right time and place
Information Technology (IT)
Computers, software, email, etc.. Giving firms and employees increased flexibility to choose locations while staying in the competitive mainstream.
Quality Control
Consistently producing what the customer wants while reducing errors before and after delivery.
Activity Ratios
Converting the firm's inventory to profits is a key function of management. These tell us how effectively management is turning over inventory
Sensing, Measurement, Process Control
Data control sensors that measure humidity, global positioning, thickness, etc. Products can be tracked from the beginning of production to the point of delivery.
Long Term Liabilities
Debts not due for one year or more
Flexible Manufacturing
Designing machines to do multiple tasks so they can produce a variety of products
Current Liabilities
Due within one year or less
Assets
Economic resources owned by a firm
Specialties of Operations Management
Facility location, facility layout, materials requirement planning, purchasing, inventory control, quality control
Balance Sheet
Financial Statement that reports a firm's financial condition at a specific time.
Purchasing
Function that searches for high-quality material resources, finds the best suppliers, and negotiates the best price for quality goods and services.
Return on Equity
Indirectly measures risk by telling us how much a firm earned for each dollar invested by its owners.
Just-In-Time Inventory
Keeps a minimum of inventory on the premises
Accounting is considered _______
Language of business
Continuous Processes
Long production runs turn out finished goods over time
Mass Production
Make a large number of a limited variety of products at a very low cost
Liquidity Ratios
Measures of the company's ability to turn assets into cash to pay its short-term debts (liabilities that must be repaid within one year)
Cost of Goods Sold
Measures the cost of merchandise the firm sells or the cost of raw materials and supplies it used in producing items for resale.
Revenue
Monetary value of what a firm received for goods sold, services rendered, and other payments.
Interfirm Operations Management
Outsourcing engineering, design, manufacturing, and other tasks to companies that specialize in those functions
Facility Layout
Physical arrangement of resources, people, to most efficiently produce goods and provide services
Key Product Processes
Product processes are either continuous or intermittent
Intermittent Processes
Production runs are short and the producer adjusts machines frequently to make different products
Managerial Accounting
Provides information and analysis to managers inside the organization to assist them in decision making.
Operating Expenses Include
Rent, salaries, supplies, utilities, and insurance.
Statement of Cash Flows
Reports cash receipts and disbursements related to three major activities of a firm: - Operations - Investments - Financing
Auditing
Reviewing and evaluating the information used to prepare a company's financial statements is referred to as auditing
Income Statement
Shows a firm's bottom line, its profit (or loss) after costs, expenses, and taxes.
ISO is not part of the government, but is a federation of national ________ bodies.
Standards
Process Manufacturing
The part of production that physcially or chemically changes materials
Assembly Process
The part of production that puts together components
Debit
The recording or entry of debt in an account
How do computers help with accounting?
They can post information from journals instantaneously from remote locations to encrypted laptops or cell phones.
Computer Integrated Manufacturing
Uniting of computer-aided design with computer-aided manufacturing
Production
Using factors like land, labor, entrepreneurship, knowledge, and capital to create goods and services is referred to as
Leverage/Debt Ratios
measure the degree which a firm relies on borrowed funds in its operations
Cost of Goods Sold Equation
purchase price + freight charges + storage costs
The Accounting Cycle
six step procedure that results in the preparation and analysis of the major financial statements
Computer Aided Design (CAD)
the use of computers in the design of products
Operations Management Includes
- Inventory Management - Quality Control - Production scheduling - Follow-up services
Managerial Accounting is concerned with:
- Measuring and reporting costs of production, marketing, and other functions - preparing budgets, (planning) - checking if units are within budgets - designing strategies to minimize taxes
What reasons may a company choose to spend millions to move facility locations?
- Reduce time to market - Lower costs of obtaining resources - be closer to a pool of qualified employees
Journal
A record book or computer program containing the daily record of a firm's transactions
Operations Management
A specialized area in management that converts or transforms resources into goods and services
Robotics
Greatly improved productivity while reducing number of jobs available to humans
Which sector has lost more jobs due to technological changes?
Manufacturing
Return on Equity Equation
Net income after tax / Total owners' equity
Net Profit or Loss
Net income the firm incurred from revenue - sales returns, costs, expenses, and taxes, over a period of time.
International Organization for Standardization (ISO)
Nongovernmental organization established to promote the development of the world standards to facilitate the international exchange of goods and services.
Operations Management
Specialized area that helps solve many of the problems in the service and manufacturing sector.
Financial Statement
Summary of all the financial transactions that have occurred over a particular period.
Lean Manufacturing
The production of goods using less investment in tools, and less engineering time to develop a new product.
The Fundamental Accounting Equation
The relationship between assets, liabilities, and owners' equity
Mass Customization
To make a unique product or provide a specific service to specific individuals
Liability
What a firm owes to others—its debts.
Accounting is ___________
the recording, classifying, summarizing, and interpreting of financial events and transactions in any organization to provide management and other interested parties the financial information they need to make good decisions about its operation.