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.