Production cycle
connections
Cycle
Market system
Cost system
Revenue system
general ledger
FRS $ MRS
processes
Planning & production control
Product volume
Production budget
Resource usage license
Perform production operation
Road sheet
Job ticket
moving ticket
storekeeping or buy material
Inventory controls
Check out the goods at the warehouse
Documents for registering documents in the property control unit
Cost accounting
Number of goods transferred
Rial amounts
Wage information
Machinery operation information
Function of workers
systems
Pushing
Mass production
High maintenance costs
Earnings management
Pulling
Lean production
ABC
just in time
TQM
Good relationships with trusted suppliers
Flexible production
Staff with a team attitude
Ability to use smart equipment
Production Challenges
Economic order quantity
Maintenance costs
H*Q/2
Cost per order
D*S/Q
Minimize ordering and maintenance costs
Q^2=2DS/H
Reorder point
Delivery time by the supplier
Consumption while waiting for initial inventory
1*2+percentage error
Internal Controls
Transaction authorization
Work orders
move tickets
materials requisitions
Segregation of duties
Inventory control separate from RM and FG inventory custody
Cost accounting separate from work centers
GL separate from other accounting functions
Supervision
Supervisors oversee usage of raw materials and timekeeping
Access
Limit physical access to finished goods, raw materials stocks, and production processes
Use formal procedures and documents to release materials into production
Accounting records
Work orders
cost sheets
move tickets
job tickets
materials requisitions
WIP records
FG inventory file
Independent verification
Cost accounting function reconciles all cost of productio
General ledger reconciles overall system