Page 341 - Accounting Information Systems

312 PART II Transaction Cycles and Business Processes

FI G U R E
7-9 BATCH PRODUCTION PROCESS

Production Planning and Control Work Centers

Inventory
Marketing Status
Payroll C
Engineering Engineering Time Payroll
Specs Card
Sales
Forecast
Materials and Job Time
Tickets Cost Acctg
Operations
BOM BOM Requirements
Initiate Production
Activities upon Receipt
Assess Purchase of Control Documents,
Route Prepare Timekeeping
Sheet RS Inventory Req Documents, and Distribute
Requirements
Documents to Users
A
BOM
Purchasing
Route Material Req
Sheet
Production Open
Scheduling Work
Orders
Prepare
Production
Control Move
Documents Production Tickets Excess Mat'l
Cost Acctg Schedule
Production Mat'l Returns
Schedule
Work Order
Open
Work Production
Orders Move Schedule
Tickets Work
Order
Work
Material C Order
Req
Close Out PG Warehouse
Open Work
Order File B

(if any), and the BOM. A product of this activity is the creation of purchase requisitions for additional
RMs. Procedures for preparing purchase orders and acquiring inventories are the same as those described
in Chapter 5. The operations requirements for the batch involve the assembly and/or manufacturing activ-
ities that will be applied to the product. This is determined by assessing route sheet specifications.

PRODUCTION SCHEDULING. The second activity of the planning and control function is produc-
tion scheduling. The master schedule for a production run coordinates the production of many different
batches. The schedule is influenced by time constraints, batch size, and specifications derived from
BOMs and route sheets. The scheduling task also produces work orders, move tickets, and materials
requisitions for each batch in the production run. A copy of each work order is sent to cost accounting to
set up a new work-in-process (WIP) account for the batch. The work orders, move tickets, and materials