AIS Chapter 7

What documents trigger and support batch processing systems? (pancake breakfasts really would mean more)

-*P*roduction schedule: the formal plan for initiating production. Includes product specifications, quantities and completion time of production. -*B*ill of materials: specifies the raw materials and other inventory requirement required for manufacturing the finished goods. -*R*oute sheete: includes sequence of operations followed by a particular batch of products during manufacturing. -*W*ork order: (also production order) specifies the raw materials and also the production operations for each batch. -*M*ove ticket: keeps track of the work flow in each work center and authorizes the movement of work from one batch to the other as soon as the work gets complete. -*M*aterials requisition: the authorized record to release raw materials to work centers or individuals during production process.

What activities are involved in the batch processing system?

-Batch processing system is one of the most common methods followed in the manufacturing of goods and services on a large scale basis. This is the *mostly* and *effectively* used method of production. -The products are manufactured in groups or batches so that the *cost of total manufacturing is minimized.* -Depending on the *type* of product being manufactured the company chooses to employ any production method. -All items in a batch are *similar* to one another and require the *same raw material and operations.* *Main activities:* plan and control production; perform production operations; maintain inventory control; perform cost accounting.

What are the primary determinants for both materials and operations requirements?

-Two main activities involved in the Productions Planning and Control function: (1) *Specifying Materials and Operations Requirements* and (2) *Production Scheduling* -Quantity of raw materials is estimated based on various determinants like: *raw material availability in-hand, how much RM is further required for production, sales forecast, engineering specifications and Bill of materials.* -Operation requirements involve: *assembling and manufacturing activities* in order to produce a finished product and its main determinant is *route sheet specifications.*

Define the conversion cycle

A collection of processes which converts or transforms the input resources to finished products, which can be used for sale. Involves physical processes and information activities resulting in the production of finished goods and services for sale.

What are the objectives of inventory control in the production process?

Inventory control is the *process or way of maintaining, supervising, locating and shipping of an adequate supply of goods and services.* The *most important* objective of inventory control is the production pro