1. Introduction to Accounting Information Systems
Chapter 1
Chapter 13
Integrated
Production
Processes
(IPP)
Introduction to Accounting Information Systems

2. Learning Objectives Appreciate contemporary production trends.
Understand role of ERPs in integrating total manufacturing environment.
Know principal components of Integrated Production Processes (IPP).
Recognize effects of automation on IPP.
Understand key inputs, outputs, files, processes.
Identify principal challenges/opportunities.
Introduce supply chain management software

3. ERPs - SAP Automotive Modules
Business Planning
Controlling
Finance & Accounting
Suppliers
Original Equipment Manufacturers
Aftermarket

4. Managing Throughput Times
Push Manufacturing
Sales forecast drives production plan
Goods produced in large batches
Jobs wait until machines ready
Pull Manufacturing
Idle machine pulls job from previous machine
Theoretically, job = “batch” of one unit

5. Features of Pull Approach
Short production runs
Continuous flow operations
Factory cells - all machines together
workers run more than 1 machine
Reduced WIP & FG inventories
Reduced floor space
improved layout/less inventory

6. Trends - Cost Management/ Accounting
Shift to reporting to assist strategic planning/decision making
Increased emphasis - managing costs v. accounting for costs
Attack waste Vs. reporting variances
Flexible cost systems - responsive to change
Shift - cost structure - variable to fixed costs

7. Trends - Cost Management/ Accounting (2)
Less DL - less use of DL to apply OH
Increase in OH component of total cost
4th category (direct technology) added to DM, DL, OH
Use of Activity Based Costing (ABC) systems
Real-time data capture in factory
Shift from Std. cost systems to actual
Reduction in data-gathering costs
Collecting statistical + financial data

8. Trends - Cost Management/ Accounting (3)
Replace detail reporting by shop order and/or operation with actg. for cell throughput time
Use cell throughput time v. DL to apply OH
Trend towards process cost systems v. job order systems
For mgt. purposes, abandonment of absorption costing
Accumulation of costs for decision making vs. valuing inventories

9. Overview–ERP-Driven Manufacturing

10. Production Planning/Control Systems
Manufacturing Resource Planning (MRP)
Master production schedule
Materials requirements planning (mrp)
Shop floor control
Just-in-time

11. Just-in-time Objectives
Zero defects
Zero setup times
Small lot sizes
Zero lead times
Zero inventories

12. JIT Implementation Features
Arrange factory in U-shaped work cells
Assign 1 worker to multiple machines
Give production workers authority to stop the line if they are behind schedule or if they discover defective parts
Require nearly constant parts production schedule
Develop vendor cooperation re deliveries
Simplify system for tracking movement of goods through factory

13. Flexible Mfg. Systems Components
Group Technology
Computer-aided manufacturing
Computer-aided process planning
computer numerical control
robotics
automated guided vehicles
automated storage/retrieval systems
digital image processors
Automated data collection devices

14. Overview: Production planning & control & cost accounting.

20. Inventory system controls
Effectiveness of operations
maintain sufficient inventory to prevent stockouts
maintain sufficient inventory to maintain operational efficiency
minimize cost of carrying inventory
Efficiency of system operations
JIT materials acquisition
Warehouse bin locations
Resource security
periodic physical inventory counts
locked storerooms

21. Learning Objectives Appreciate contemporary production trends.
Understand role of ERPs in integrating total manufacturing environment.
Know principal components of Integrated Production Processes (IPP).
Recognize effects of automation on IPP.
Understand key inputs, outputs, files, processes.
Identify principal challenges/opportunities.
Introduce supply chain management software