1. Computerized Manufacturing Systems
Chapter M6
Computerized Manufacturing Systems
PowerPoint Presentation by Douglas Cloud Professor Emeritus of Accounting Pepperdine University
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2. Once you have completed this chapter, you should be able to:
Objective 1
Identify the primary modules of a computerized manufacturing system.

3. Components of an Accounting Information System
Sales and Customer Relations
Purchasing and Materials Management
Vendors
Production
Customers
Human Resources
Employees
General Ledger/ Financial Reporting
Asset Management
Financial Management
Exhibit 1
Other Stockholders
Creditors and Owners

4. Components of an Accounting Information System
The sales module receives sales orders from customers and maintains accounts receivable information.

5. Components of an Accounting Information System
Sales and Customer Relations
Purchasing and Materials Management
Vendors
Production
Customers
Human Resources
Employees
General Ledger/ Financial Reporting
Asset Management
Financial Management
Exhibit 1
Other Stockholders
Creditors and Owners

6. Components of an Accounting Information System
The purchasing and materials management module provides purchase orders to vendors. This module is especially important for keeping track of the costs and use of raw materials.

7. Components of an Accounting Information System
Sales and Customer Relations
Purchasing and Materials Management
Vendors
Production
Customers
Human Resources
Employees
General Ledger/ Financial Reporting
Asset Management
Financial Management
Exhibit 1
Other Stockholders
Creditors and Owners

8. Components of an Accounting Information System
The human resources module maintains data about employees, hours worked, and wage rates. It is used for preparing payroll and payroll tax information.

9. Components of an Accounting Information System
Sales and Customer Relations
Purchasing and Materials Management
Vendors
Production
Customers
Human Resources
Employees
General Ledger/ Financial Reporting
Asset Management
Financial Management
Exhibit 1
Other Stockholders
Creditors and Owners

10. Components of an Accounting Information System
The production module tracks the flow of costs through the manufacturing process.

11. Components of an Accounting Information System
Sales and Customer Relations
Purchasing and Materials Management
Vendors
Production
Customers
Human Resources
Employees
General Ledger/ Financial Reporting
Asset Management
Financial Management
Exhibit 1
Other Stockholders
Creditors and Owners

12. Components of an Accounting Information System
The asset management module identifies long-term asset costs, their expected useful lives, and where these assets are located in the company.

13. Components of an Accounting Information System
Sales and Customer Relations
Purchasing and Materials Management
Vendors
Production
Customers
Human Resources
Employees
General Ledger/ Financial Reporting
Asset Management
Financial Management
Exhibit 1
Other Stockholders
Creditors and Owners

14. Components of an Accounting Information System
The financial management module keeps track of debt, when repayment is due, interest rates, and shareholders information. Also, it is used for managing a company’s cash flows.

15. Components of an Accounting Information System
Sales and Customer Relations
Purchasing and Materials Management
Vendors
Production
Customers
Human Resources
Employees
General Ledger/ Financial Reporting
Asset Management
Financial Management
Exhibit 1
Other Stockholders
Creditors and Owners

16. Components of an Accounting Information System
The general ledger/financial reporting module provides information for use by external stakeholders, including shareholders and government regulators

17. Components of an Accounting Information System
Sales and Customer Relations
Purchasing and Materials Management
Vendors
Production
Customers
Human Resources
Employees
General Ledger/ Financial Reporting
Asset Management
Financial Management
Exhibit 1
Other Stockholders
Creditors and Owners

18. Modules Available in SAP
Financial Accounting
Financial system for recording of transactions
General ledger for maintaining account balances and preparing financial statements
Accounts payable for tracking amounts owed to vendors
Accounts receivable for tracking amounts owed by customers
Treasury for cash flow management
Consolidation for consolidation of a parent company’s subsidiaries

19. Modules Available in SAP
Controlling
Cost center accounting for determining the costs of specific functions or divisions of a company
Internal order accounting for tracking the flow of costs among functions or departments within a company
Continued

20. Modules Available in SAP
Controlling
Product costing analysis for determining and evaluating product costs
Profitability analysis for evaluating divisional and product profit performance
Activity-based costing for determining activity-based costs and allocation of overhead in the manufacturing process

21. Modules Available in SAP
Asset Management
Maintenance and repairs for tracking costs and timing of these activities
Sale of assets for monitoring disposal decisions
Asset replacement for evaluating replacement decisions
Continued

22. Modules Available in SAP
Asset Management
Depreciation for determining and tracking asset depreciation for financial reporting, cost, and tax purposes
Investment management for making decisions about new acquisitions or replacements of property and equipment

23. Modules Available in SAP
Project Management
Funds and resource management to help project managers keep track of resources used in a project
Quality control to help with including quality issues in a project
Time management to assist in scheduling activities associated with a project

24. Modules Available in SAP
Human Resources
Recruitment for keeping track of job requirements and postings
Benefits for tracking employee benefits
Time management for determining and scheduling employee labor hours
Incentive wages for determining bonuses
Continued

25. Modules Available in SAP
Human Resources
Business trip management for maintaining reimbursement information and determining travel costs
Payroll for processing employee wages
Training and events management for coordination of training activities
Continued

26. Modules Available in SAP
Human Resources
Personnel development for tracking development activities for individual employees
Workforce planning for determining labor and labor cost requirements for various functions or divisions

27. Modules Available in SAP
Quality Management
Quality inspection for monitoring quality control
Quality planning for determining quality control requirements

28. Modules Available in SAP
Production Planning
Bills of material for identifying the materials that are used in each product
Master production scheduling for determining the use of equipment and labor in the production process
Material requirements planning for coordination the amount and availability of materials for scheduled production runs
Continued

29. Modules Available in SAP
Production Planning
Shop floor control for coordinating the flow of materials through the production process
Production orders for tracking order status and completion dates
Product costing and activity-based costing for determining the costs of units of production

30. Modules Available in SAP
Materials Management
Material procurement for purchasing materials and maintaining vendor data
Inventory management for determining inventory availability and costs
Reorder point processing facilitates determining when to reorder and placing orders
Continued

31. Modules Available in SAP
Materials Management
Invoice verification tracks orders and ensures company policies are followed in the ordering process
Material valuation provides for identifying quality or quantity problems with materials received
Vendor evaluation for monitoring vendor quality
Continued

32. Modules Available in SAP
Materials Management
External services procurement for facilitating the outsourcing of services
Warehouse management for maintaining data about the location of materials and for transferring materials into and out of the warehouse

33. Sales and Distribution
Modules Available in SAP
Sales and Distribution
Inquiry processing for responding to customer inquiries
Quotation processing for providing pricing information to customers
Sales order processing for recording and tracking sales orders
Continued

34. Sales and Distribution
Modules Available in SAP
Sales and Distribution
Delivery processing for recording and tracking delivery of goods to customers
Billing for submitting sales invoices to customers

35. Automating the Value Chain
Exhibit 2

36. Once you have completed this chapter, you should be able to:
Objective 2
Describe the components of a computerized information system used to process data in a manufacturing company.

37. Data Processing in a Computerized Information System
Exhibit 3

38. The use of computer networks, like the Internet, to provide for customer sales is referred to as E-business.

39. Application software includes the computer programs that permit data to be recorded and processed.

40. A database is a set of computerized files in which company data are stored in a form that facilitates retrieval and updating of the data.

41. A database management system controls database functions to ensure data are recorded properly and are accessed only by authorized users.

42. Computer networks include the cables that connect the clients and servers and the hardware and software needed to make the networks function properly.

43. Customers and Suppliers
Exhibit 4 An Illustration of a Computer Network

44. Accumulating Production Costs
Materials Management
Direct Materials
Direct Labor
Manufac-turing Overhead
Job or Period
Divide by Number of Units in a Job or Period
Human Resources
Unit Costs
Asset Management and Other
Exhibit 5

45. Accumulating Production Costs
Materials Management
Direct Materials
Direct Labor
Manu-facturing Overhead
Job or Period
Unit
Batch
Product
Facility
Levels
Divide by # of Units in a Job or Period
Human Resources
Unit Costs
Asset Management and Other
Exhibit 6

46. Once you have completed this chapter, you should be able to:
Objective 3
Explain the use of relational databases to perform product cost functions.

47. A relational database is a set of related files that are linked together so the files can be updated and information can be retrieved from the files efficiently.

48. Each attribute is referred to as a field in the table.
A relational database is stored in tables or files that contain data represented by rows and columns.
Each attribute is referred to as a field in the table.
Each table contains one or more primary keys that uniquely identify the entities or processes recorded in rows of the table and connects the tables into relationships.

49. Copying and Opening the Database
It is highly recommended that the database be copied to a hard drive before it is used.

50. Copying and Opening the Database
It is a good idea to make several copies of the database under different names.
KiwiOil1.mdb,KiwiOil2.mdb, etc.

51. Example of a Table in a Database
Exhibit 8

52. Example of a Form for Data Entry
Exhibit 9

53. Chapter M6
THE END