Page 7 Project AIS Online Production Cycle Information System

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Page 7 ProjectAIS Online Production Cycle
Information System ERP System

• Team members in order of appearance
• Rie Rios
• Alex Sanjur
• Hai Do
• Lili Azimi
• Cole Edmondson

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Online Production Cycle Information System
Factory Workstations
Production Planning
Engineering
Cost Accounting
Sales
Inventory
Forecastsand Orders
Standard costs overhead rates
Production orders and schedules
Product Specifications
Materials Requisitions
Production data
General Ledger
Online Production information system
Manufacturing control specifications
CIMInterface
Production Cycle Databases
Inventory
Master Production schedule
Operations list
Bill of materials
Production orders
Work in Progress
Instructions and schedules
Inquiry ProcessingSystem
Productionstatusreports
Performancereports
Production status reports
Cost Analyses
Factory Supervisor
Cost Accounting
Production Planning
Sales
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Symbols Review
Online Keying Data entered by online device
Example Terminal or personal Computer
On-line Storage Data stored in a temporary
online file in a Direct access such as a disk
Magnetic disk Data stored permanently on a
magnetic disk This is used as master files and
databases
Computer Processing Computer performed
processing function Usually results with a change
in data and/or information.
Display Information displayed by an online
output Examples Terminal, monitor or screen.
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Sequential Simultaneous Process
Production Planning
Engineering
Cost Accounting
Factory Workstations
Sales
Inventory
Product Specifications
Forecastsand Orders
Standard costs overhead rates
Production orders and schedules
Materials Requisitions
Production data
General Ledger
Online Production information system
Manufacturing control specifications
CIMInterface
The Sales department enters sales forecasts and
customer special order information, then the
production planning department uses that
information and data about current inventory
levels to develop the master production schedule,
from there the engineering department accesses
the bill of materials and operations list files
and these two documents have the specifications
of new products to be created, these two files
examine the design of similar products, they also
access the general ledger and inventory files for
information about the costs of alternative
product designs. New records are added to the
production order file to authorize the production
of specific goods. At that same time, new
records are added to the work in process file to
accumulate cost data. The list of operations to
be performed is displayed at the appropriate
workstation. Corresponding instructions are also
sent to the CIM interface to guide the operation
of computerized machinery and robots. Cost
accounting has three principal steps which are to
provide information for planning, controlling and
evaluating the performance of the production
operation, second is to provide accurate cost
data about products for use in pricing and
product mix decisions and third to collect and
process the information used to calculate the
inventory and cost of goods sold that appear in
the companys financial statements, all these
elements in order to be successfully integrated
must collect data in real time in order for
management to make timely decisions. In this case
this diagram can be used to implement either a
job order or process costing system because both
systems require accumulating data about four
basic kinds of costs raw materials, direct
labor, machinery and equipment as well as
manufacturing overhead. Materials requisitions
are sent to the inventory stores department to
authorize the release of raw materials to
production.
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Online Production Cycle Information System
Factory Workstations
Production Planning
Engineering
Cost Accounting
Sales
Inventory
Forecastsand Orders
Standard costs overhead rates
Production orders and schedules
Product Specifications
Materials Requisitions
Production data
General Ledger
Online Production information system
Manufacturing control specifications
CIMInterface
Production Cycle Databases
Inventory
Operations list
Master Production schedule
Bill of materials
Production orders
Work in Progress
Instructions and schedules
Inquiry ProcessingSystem
Productionstatusreports
Performancereports
Production status reports
Cost Analyses
Cost Accounting
Factory Supervisor
Production Planning
Sales
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Online Production Cycle Information System Data
Input/Retrieval Terminals
Cost Accounting
Sales
The sales department enters sales forecasts and
customer special order information based on
previous sales and other calculations as well
receive information about sales transactions so
theyll know when to initiate the purchase or
production of more inventory but only if the
credit of the customer is approved.
Forecastsand Orders
Standard costs overhead rates
New records are added to the work-in-process
file to accumulate cost data Data about
machinery and equipment usage are collected at
each production step, often with data about labor
costs as well as utilities, depreciation,
supervisory salaries.
Production Planning
Inventory
When production is initiated, the issuance of a
materials requisition triggers a debit (increase)
to work in process and a credit (decrease) to raw
materials inventory. Work in process is credited
and raw materials are debited for any amounts
returned to inventory.
Production planning uses that information and
data on current inventory levels to develop a
master production schedule. New records are
added to the production order file to authorize
the production of goods.
Production orders and schedules
Materials Requisitions
Engineering
Factory Workstations
Engineering specifications result in new records
for both the bill of materials and the operations
list file. To create these lists, engineering
accesses both files to view designs of similar
products. They also access the general ledger
and inventory files for info about alternate
designs.
Data that contains the list of materials used in
production either by specific item or the
complete totals based on a reference of time, as
well as units of measurement and amounts used
from one period to another and the percentage of
change between the compared dates or periods.
Product Specifications
Production data
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Online Production Cycle Information System
Contains summary level data for every asset,
liability, revenue and expense account of the
organization. In the production cycle the general
ledger accumulates data about four basic costs
raw materials, direct labor, Machinery and
equipment, and manufacturing overhead.
General Ledger
An Online system that electronically processes
production data from the origin to the
user. Needs online data entry terminal and direct
access files, storage media, so each master
record can be accessed.
Online Production information system
Is a temporary online storage medium where
adequate controls to meet production cycle
objectives Where transactions are recorded
accurately
Manufacturing control specifications
CIMInterface
Computer Integrated Manufacturing is where the
instructions to guide operation of machinery and
robots.
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Online Production Cycle Information System
Factory Workstations
Production Planning
Engineering
Cost Accounting
Sales
Inventory
Forecastsand Orders
Standard costs overhead rates
Production orders and schedules
Product Specifications
Materials Requisitions
Production data
General Ledger
Online Production information system
Manufacturing control specifications
CIMInterface
Production Cycle Databases
Inventory
Operations list
Master Production schedule
Bill of materials
Production orders
Work in Progress
Instructions and schedules
Inquiry ProcessingSystem
Productionstatusreports
Performancereports
Production status reports
Cost Analyses
Cost Accounting
Factory Supervisor
Production Planning
Sales
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Specifies the part number, description, and
Quantity of each component used in a
finished Product
Bill of materials
Inventory
Materials ready to be sold
Specifies how much of each Product, which
equipment to Use, and how long each step Should
take
Authorizes the manufacture of A specified
quantity of particular Product. Lists where
finished product Should be delivered, also
collects data About each activity.
Operations list
Production orders
Specifies how much each product and when
the product is produced during the planning
period.
Work that is still incomplete, still in The
process of being made.
Master Production schedule
Work in Progress
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Sales
Cost Accounting
Production status reports
Cost Analyses
Provide accurate cost data about product for use
in pricing and product mix decision
Report used to see how much Is available to sell
and what is Available to sell
Production planning
Factory Supervisors
Performance reports
Production status reports
Provides information for planning, controlling,
and evaluating the performance of
production operations
The report is used to see if enough Is being
produced.
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Threats and Controls

• Over-or Underproduction
• Proper approval of production orders
• Restrict access to the production scheduling
  program using passwords and user IDs.
• Theft or destruction of inventories
• Restrict physical access to work-in-process and
  finished goods inventories
• Documenting all materials movements
• Periodic counts of inventory
• Inaccurate cost data
• Automate data collection using RFID technology,
  bar-code scanners, and other devices
• Periodic reconciliation of records with
  physical counts
• Poor Product Design
• Reducing or eliminating unique components when
  producing similar products.
• Simplifying the complexity involved in the
  design
• Analysis of accurate data about the relationship
  between components and finished goods.
• Analysis of warranty and repair costs to
  identify the primary causes of product failure,
  in order to redesign products to improve quality.

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Production Cycle Control Objectives

• In addition to the above a production cycle in an
  ERP system should meet the following
• All production activities are by authorized users
• WIP fixed assets are safeguarded
• All production transactions in the cycle are
  recorded
• All production transactions in the cycle are
  accurate
• All production transactions in the cycle are
  backed up and protected
• Production cycle activities are efficient

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Hyundai Manufacturing Process
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• Thank You