It transforms input resources such as raw materials, labor and overhead into finished products or services for sale. It exists conceptually in all organizations, including those in service and retail industries.

Which of the following are the 4 basic processes in traditional manufacturing environment?

What are the common production methods under tradition manufacturing environment?

creates a homogeneous products through a continuous series of standard procedures

fabrication of discrete products in accordance with customer specifications

produces discrete groups(batches) of products.

Which of the following are included in the documents of batch processing system?

formal plan and authorization to begin production. This document describes the specific products to be made, the quantities to be produced in each batch, and the manufacturing timetable for starting and completing production.

this specifies the types and quantities of the raw materials and subassemblies used in producing a single unit of finished product. The raw material requirements for an entire batch are determined by multiplying the bill of materials by the number of items in the batch.

shows the production path that a particular batch of product follows during manufacturing.

draws from bill of materials and route sheets to specify the materials and production for each batch.

records work done in each work center and authorizes the movement of the job or batch from one work to another.

authorizes the storekeeper to release materials to individuals or work centers in the production process. o This document usually specifies only standard quantities

Which of the following are included in the activities of batch production?

It consists of specifying materials and operation requirements and production scheduling.

The raw materials requirement for a batch of any given product is the difference between what is needed and what is available in the raw materials inventory. This information comes from the analysis of the inventory on-hand, the sales forecast, engineering specifications, and the bill of materials.

The master schedule for production run coordinates the production of many different batches. o The schedule is influenced by time constraints, batch size, and specifications derived from bill of materials and route sheets. o The scheduling tasks also produces work orders, move tickets, and materials requisitions for each batch in the production run.

The actual production operations begin when workers obtain raw materials from storekeeping in exchange for materials requisitions. o These materials, as well as the machining and the labor required to manufacture the product, are applied in compliance with the work order. o When the task is complete at a particular work center, the supervisor or other authorized person signs the move ticket, which authorizes the batch to proceed to the next work center.

The inventory control function consists of three main activities:

An objective of this is to minimize total inventory cost while ensuring that adequate inventories exist to meet current demand.

Imventory control helps to answer the following questions:

Edit controls to detect clerical errors in input data; Check digit for validating account numbers

Error messages to signify account mismatch; Password control to prevent unauthorized access to the system; Back up procedures to protect digital files; Multilevel security (roles) to limit access to data files and program modules; automated posting to subsidiary and GL accounts

Security over distribution of production documents and management reports

Work orders, move tickets, and material requisitions

Inventory control separate from raw materials and finished goods inventory custody; Cost accounting separate from work centers; GL separate from other accounting functions

Supervisor oversee usage of raw materials and timekeeping

Limit physical access to finished goods, raw materials, and production processes

Work orders, cost sheets, move tickets, job tickets, materials requisitions, work in- process records, finished goods inventory file

Cost accounting function reconciles all costs of production; GL reconciles overall system