Page 7 Project AIS Online Production Cycle Information System & ERP System Team members in order of appearance: Rie Rios Alex Sanjur Hai Do Lili Azimi Cole Edmondson Team members in order of appearance: Rie Rios Alex Sanjur Hai Do Lili Azimi Cole Edmondson

Forecasts and Orders Standard costs & overhead rates Production orders and schedules Product Specifications Materials Requisitions Production data General Ledger Online Production information system Manufacturing control specifications CIM Interface Bill of materials Operatio ns list Master Producti on schedule Inventor y Productio n orders Work in Progress Inquiry Processing System Production status reports Performan ce reports Productio n status reports Cost Analyses Instructions and schedules Sales Production Planning EngineeringCost Accounting Inventory Factory Workstations Production Cycle Databases Sales Production Planning Cost Accounting Factory Supervisor Online Production Cycle Information System

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. Symbols Review

Sequential & Simultaneous Process Forecasts and Orders Standard costs & overhead rates Production orders and schedules Product Specifications Materials Requisitions Production data Gener al Ledger Online Production information system Manufacturin g control specification s CIM Interface Sales Production Planning EngineeringCost Accounting Inventory 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 company’s 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. 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 company’s 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. Factory Workstations

Forecasts and Orders Standard costs & overhead rates Production orders and schedules Product Specifications Materials Requisitions Production data General Ledger Online Production information system Manufacturing control specifications CIM Interface Bill of materials Operatio ns list Master Producti on schedule Inventor y Productio n orders Work in Progress Inquiry Processing System Production status reports Performan ce reports Productio n status reports Cost Analyses Instructions and schedules Sales Production Planning EngineeringCost Accounting Inventory Factory Workstations Production Cycle Databases Sales Production Planning Cost Accounting Factory Supervisor Online Production Cycle Information System

Online Production Cycle Information System Data Input/Retrieval Terminals Forecasts and Orders Standard costs & overhead rates Production orders and schedules Product Specifications Materials Requisitions Production data Sales Production Planning Engineering Cost Accounting Inventory Factory Workstations 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. 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. 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. 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 they’ll know when to initiate the purchase or production of more inventory but only if the credit of the customer is approved. 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. 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.

Online Production Cycle Information System Gener al Ledge r Online Production information system Manufacturin g control specifications CIM Interface 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. 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. Is a temporary online storage medium where adequate controls to meet production cycle objectives Where transactions are recorded accurately Computer Integrated Manufacturing is where the instructions to guide operation of machinery and robots.

Forecasts and Orders Standard costs & overhead rates Production orders and schedules Product Specifications Materials Requisitions Production data General Ledger Online Production information system Manufacturing control specifications CIM Interface Bill of materials Operatio ns list Master Producti on schedule Inventor y Productio n orders Work in Progress Inquiry Processing System Production status reports Performan ce reports Productio n status reports Cost Analyses Instructions and schedules Sales Production Planning EngineeringCost Accounting Inventory Factory Workstations Production Cycle Databases Sales Production Planning Cost Accounting Factory Supervisor Online Production Cycle Information System

Bill of material s Operations list Master Production schedule Inventory Production orders Work in Progres s Specifies the part number, description, and Quantity of each component used in a finished Product Specifies the part number, description, and Quantity of each component used in a finished Product Specifies how much of each Product, which equipment to Use, and how long each step Should take Specifies how much of each Product, which equipment to Use, and how long each step Should take Specifies how much each product and when the product is produced during the planning period. Specifies how much each product and when the product is produced during the planning period. Authorizes the manufacture of A specified quantity of particular Product. Lists where finished product Should be delivered, also collects data About each activity. Authorizes the manufacture of A specified quantity of particular Product. Lists where finished product Should be delivered, also collects data About each activity. Work that is still incomplete, still in The process of being made. Work that is still incomplete, still in The process of being made. Materials ready to be sold

Production status reports Performance reports Production status reports Cost Analyses Provides information for planning, controlling, and evaluating the performance of production operations Provide accurate cost data about product for use in pricing and product mix decision Sales Production planning Cost Accounting Factory Supervisors Report used to see how much Is available to sell and what is Available to sell The report is used to see if enough Is being produced.

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. Disruption of Operations *Backup power sources, like generators, and uninterruptible power supply devices should be acquired to ensure that critical equipment and machinery is not damaged by loss of electrical power and that important processes can continue on schedule. *Investigate disaster preparedness of key suppliers and identify alternative sources for critical components.

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 All production activities are by authorized users WIP & fixed assets are safeguarded WIP & fixed assets are safeguarded All production transactions in the cycle are recorded All production transactions in the cycle are recorded All production transactions in the cycle are accurate All production transactions in the cycle are accurate All production transactions in the cycle are backed up and protected All production transactions in the cycle are backed up and protected Production cycle activities are efficient Production cycle activities are efficient

Hyundai Manufacturing Process

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