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mist ch 5
Terms in this set (31)
involves taking a number of component materials and putting them together to make a finished product
involves taking raw materials and creating something from them.
example furniture, computers
example oil and gas
make to order
company produces goods only in response to direct customer orders
make to stock
company creates an inventory of products that they can store and then use later to meet customer demands.
bill of materials
identifies all the materials or parts needed to make one unit of a finished product.
separate process in organizations that is concerned with creating new products based on such factors as market research and new productions techniques.
result of the product design process
the actual task of creating the product is accomplished here.
define the steps of operations necessary to create the product
the component materials needed to make the skateboard are obtained and readied.
the materials are assembled into a skateboard
ensures assembled into a skateboard
the skateboard is packed into packing box
performed prior to placing the skateboard in inventory
move to storage
finished materials are placed into storage
the number of skateboards that can can be produced in a specific amount of time.
1st step in productions process: warehouse
Done by using a planned order which request that the company produce a specified quantity of goods
person responsible for production in the organization.
2nd Step: production
Production order provides written authorization to the shop floor to produce the stated quantity of products.
When production is authorized a material withdrawal slip is created and includes a list of all the materials needed to produce the quantity of finished goods stated in the production order.
issue raw materials
3rd step: warehouse
Material withdrawal slip Authorizes the warehouse to release or issue the materials to shop floor when it is ready to start production.
4th step: production
creates products using production order
receive finished goods
5th step: warehouse
when products are completed they are delivered to warehouse and a goods receipt document is made which serves as a record for the warehouse.
instance level information
in which stage of the process is the order
process level information
companies use this information to determine how well the process as a whole is functioning.
ES: request production
worker inputs planned order data and es outputs finished goods inventory data.
ES: authorize production
worker input production order data and es outputs planned order, materials, and BOM data.
es: issue raw materials
worker inputs production order inventory data and es outputs production inventory data
es: create products
worker inputs production order data and es outputs production order data.
es: receive finish goods
worker inputs production order data and es outputs finished good inventory.
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