Ch 3 Manufacturing Models and Metrics

Size: px
Start display at page:

Download "Ch 3 Manufacturing Models and Metrics"

Transcription

1 Ch 3 Manufacturing Models and Metrics Sections: 1. Mathematical Models of Production Performance 2. Manufacturing Costs Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover. 1

2 Why use metrics A system of related measures that facilitates the quantification of some particular characteristic To track performance in successive periods, Try out new technologies and systems to determine their merits, identify their problems, To compare alternative methods, and To make good decisions. Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover. 2

3 Production Concepts and Mathematical Models Production performance metrics: Production rate R p Cycle time T c Production capacity PC Utilization U Availability A Manufacturing lead time MLT Work-in-progress WIP Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover. 3

4 Operation Cycle Time Typical cycle time for a production operation: T c = T o + T h + T th where T c = cycle time, T o = processing time for the operation, T h = handling time (e.g., loading and unloading the production machine), and T th = tool handling time (e.g., time to change tools) Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover. 4

5 Production Rate (batch/job shop/flow) Batch production: batch time T b = T su + QT c Average production time per work unit T p = T b /Q Production rate R p = 1/T p Job shop production: For Q = 1, T p = T su + T c For quantity high production: R p = R c = 60/T p since T su /Q 0 For flow line production: T c = T r + Max T o and R c = 60/T c Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover. 5

6 Production Capacity Plant capacity for facility in which parts are made in one operation (n o = 1): PC w = n S w H s R p where PC w = weekly plant capacity, units/wk Plant capacity for facility in which parts require multiple operations (n o > 1): PC w = ns w H n o s R p where n o = number of operations in the routing max rate of output that a production facility is able to produce under a given set of assumed operating conditions Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover. 6

7 Utilization: U = Utilization and Availability Q PC where Q = quantity actually produced, and PC = plant capacity the amount of output of aproduction facility relative to its capacity Availability: A = MTBF MTTR MTBF where MTBF = mean time between failures, and MTTR = mean time to repair a common measure for reliability of equipment Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover. 7

8 Availability - MTBF and MTTR Defined Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover. 8

9 Manufacturing Lead Time MLT = n o (T su + QT c + T no ) where MLT = manufacturing lead time, n o = number of operations, T su = setup time, Q = batch quantity, T c = cycle time per part, and T no = non-operation time the total time required to process a given part/product through the plant including any lost time due to delays, time spent in storage, reliability problems, and so on. Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover. 9

10 Work-In-Process WIP = where WIP = work-in-process, pc; A = availability, U = utilization, PC = plant capacity, pc/wk; MLT = manufacturing lead time, hr; S w = shifts per week, H sh = hours per shift, hr/shift MLT AU PC SH w sh the inventory in the state of being transformed from raw material to finished product Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover. 10

11 Costs of Manufacturing Operations Two major categories of manufacturing costs: 1. Fixed costs - remain constant for any output level 2. Variable costs - vary in proportion to production output level Adding fixed and variable costs where TC = total costs, TC = FC + VC(Q) FC = fixed costs (e.g., building, equipment, taxes), VC = variable costs (e.g., labor, materials, utilities), Q = output level. Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover. 11

12 Fixed and Variable Costs Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover. 12

13 Manufacturing Costs Alternative classification of manufacturing costs: 1. Direct labor - wages and benefits paid to workers 2. Materials - costs of raw materials 3. Overhead - all of the other expenses associated with running the manufacturing firm Factory overhead Corporate overhead Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover. 13

14 Typical Manufacturing Costs Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover. 14

15 Overhead Rates Factory overhead rate: FOHR = FOHC DLC Corporate overhead rate: COHR = COHC DLC where DLC = direct labor costs Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover. 15

16 Cost of Equipment Usage Hourly cost of worker-machine system: C o = C L (1 + FOHR L ) + C m (1 + FOHR m ) where C o = hourly rate, $/hr; C L = labor rate, $/hr; FOHR L = labor factory overhead rate, C m = machine rate, $/hr; FOHR m = machine factory overhead rate Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover. 16

Computer Integrated Manufacturing (CIM)

Computer Integrated Manufacturing (CIM) Computer Integrated Manufacturing (CIM) Instructor TA Dr Haris Aziz Engineer Zaheer Ahmad Engineer Shoaib Sarfraz Week Course Contents 1 Basics and Introduction to Manufacturing 2 Introduction to CIM 3

More information

COMPUTER INTAGRATED MANUFACTURING

COMPUTER INTAGRATED MANUFACTURING COMPUTER INTAGRATED MANUFACTURING 1 2 Production System A collection of people, equipment, and procedures organized to accomplish the manufacturing operations of a company Two categories: Facilities the

More information

Lecture 5 - September 6, 2012

Lecture 5 - September 6, 2012 Lecture 5 - September 6, 2012 Announcements Prof. McMains was called in for jury duty today She will unlikely be back for office hours this afternoon The ME 101 discussion section classroom has been assigned:

More information

Ch 19 Flexible Manufacturing Systems

Ch 19 Flexible Manufacturing Systems Ch 19 Flexible Manufacturing Systems Sections: 1. What is a Flexible Manufacturing System? 2. FMS Components 3. FMS Applications and Benefits 4. FMS Planning and Implementation Issues 5. Quantitative Analysis

More information

CAD Hardware and Software

CAD Hardware and Software UNIT I INTRODUCTION CAD Hardware and Software CAD hardware: Includes the computer, one or more graphical display terminals, keyboard and other peripheral equipment. In CAD, the drawing boards are replaced

More information

Ch 18 Cellular Manufacturing

Ch 18 Cellular Manufacturing Ch 18 Cellular Manufacturing Sections: 1. Part Families 2. Parts Classification and Coding 3. Production Flow Analysis 4. Cellular Manufacturing 5. Applications in Group Technology 6. Quantitative Analysis

More information

COMPREHENSIVE EXAMINATION A

COMPREHENSIVE EXAMINATION A COMPREHENSIVE EXAMINATION A (Chapters 1-4) Approximate Problem Topic Points Minutes A - I Multiple Choice... 20 20 A - II Cost of Goods Manufactured and Sold... 20 15 A - III Job Order Cost Accounting...

More information

1. Cost accounting involves the measuring, recording, and reporting of: A. product costs. B. future costs. C. manufacturing processes.

1. Cost accounting involves the measuring, recording, and reporting of: A. product costs. B. future costs. C. manufacturing processes. 1. Cost accounting involves the measuring, recording, and reporting of: A. product costs. B. future costs. C. manufacturing processes. D. managerial accounting decisions. 2. In accumulating raw materials

More information

Module 10 : Product and Process Costing. Lecture 1 : Product and Process Costing. Objectives

Module 10 : Product and Process Costing. Lecture 1 : Product and Process Costing. Objectives Module 10 : Product and Process Costing Lecture 1 : Product and Process Costing Objectives In this lecture you will learn the following Introduction. Product costing. Job costing. Process costing. Cost

More information

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034 B.Com. DEGREE EXAMINATION CORPORATE SECRETARYSHIP FOURTH SEMESTER APRIL 2016 BC 4504/BC 5501 COST ACCOUNTING Date: 22-04-2016 Dept. No. Max. : 100 Marks Time:

More information

Chapter 17 Job Order Costing Study Guide Solutions Fill-in-the-Blank Equations. Exercises. 1. Estimated activity base. 2. Underapplied. 3.

Chapter 17 Job Order Costing Study Guide Solutions Fill-in-the-Blank Equations. Exercises. 1. Estimated activity base. 2. Underapplied. 3. Chapter 17 Job Order Costing Study Guide Solutions Fill-in-the-Blank Equations 1. Estimated activity base 2. Underapplied 3. Overapplied Exercises 1. An automobile manufacturer produces various lines of

More information

EE/CpE322 Lecture 10. Bruce McNair Based on Chapter 11 Engineering Design: A Project-Based Introduction (the 3 rd ed.), by C.L. Dym and P.

EE/CpE322 Lecture 10. Bruce McNair Based on Chapter 11 Engineering Design: A Project-Based Introduction (the 3 rd ed.), by C.L. Dym and P. EE/CpE322 Lecture 10 Bruce McNair Based on Chapter 11 Engineering Design: A Project-Based Introduction (the 3 rd ed.), by C.L. Dym and P. Little A Model of the Design Process Design for X Design projects

More information

B.Com II Year (Hons.) Cost Accounting Model Paper I

B.Com II Year (Hons.) Cost Accounting Model Paper I Max. Marks: 100 B.Com II Year (Hons.) Cost Accounting Model Paper I Durations: 3 Hrs. Attempt all the questions. All Questions are compulsory, each question carry 20 marks. Unit I 1. A Ltd. Is the manufacturer

More information

MANUFACTURING & PRODUCTION

MANUFACTURING & PRODUCTION KPI ENCYCLOPEDIA A Comprehensive Collection of KPI Definitions for MANUFACTURING & PRODUCTION www.opsdog.com info@opsdog.com 844.650.2888 Table of Contents Manufacturing & Production KPI Encyclopedia Manufacturing

More information

Solution Manual for Automation, Production Systems, and Computer-Integrated Manufacturing 4th editor by Groover

Solution Manual for Automation, Production Systems, and Computer-Integrated Manufacturing 4th editor by Groover Solution Manual for Automation, Production Systems, and Computer-Integrated Manufacturing 4th editor by Groover Link full download: http://testbankair.com/download/solution-manual-for-automation-production-systems-andcomputer-integrated-manufacturing-4th-editin-by-groover/

More information

MANAGERIAL ACCOUNTING SPRING 2014 MIDTERM EXAM. PROBLEM 1 Kennedy Company reports the following costs and expenses in May.

MANAGERIAL ACCOUNTING SPRING 2014 MIDTERM EXAM. PROBLEM 1 Kennedy Company reports the following costs and expenses in May. PROBLEM 1 Kennedy Company reports the following costs and expenses in May. Factory utilities $ 13,500 Direct labor $79,100 Depreciation on factory Sales salaries 48,400 equipment 12,650 Property taxes

More information

The Realities of Modern Manufacturing

The Realities of Modern Manufacturing Ch 1 Introduction Sections: 1. Production Systems 2. Automation in Production Systems 3. Manual Labor in Production Systems 4. Automation Principles and Strategies 5. Organization of the Book The Realities

More information

Ch 16 Automated Production Lines

Ch 16 Automated Production Lines Ch 16 Automated Production Lines Sections: 1. Fundamentals of Automated Production Lines 2. Applications of Automated Production Lines 3. Analysis of Transfer Lines Automation, Production Systems, and

More information

MFS605/EE605 Systems for Factory Information and Control

MFS605/EE605 Systems for Factory Information and Control MFS605/EE605 Systems for Factory Information and Control Fall 2004 Larry Holloway Dept. of Electrical Engineering and Center for Robotics and Manufacturing Systems 1 Collect info on name, major, MS/PhD,

More information

IM111 INDUSTRIAL RELATIONS

IM111 INDUSTRIAL RELATIONS IM111 INDUSTRIAL RELATIONS Cost Analysis What is Cost? Costis the amount of money paid or payable to achieve a specific objective, e.g. the acquirement of materials, property, or services. 2 Is Cost Really

More information

Production and Cost Analysis I

Production and Cost Analysis I CHAPTER 12 Production and Cost Analysis I Production is not the application of tools to materials, but logic to work. Peter Drucker McGraw-Hill/Irwin Copyright 2010 by the McGraw-Hill Companies, Inc. All

More information

CHAPTER 2. Job Order Costing 1, 2, 3, 4 5, 6, 7, 8 1, 2, 3, 4

CHAPTER 2. Job Order Costing 1, 2, 3, 4 5, 6, 7, 8 1, 2, 3, 4 CHAPTER 2 Job Order Costing ASSIGNMENT CLASSIFICATION TABLE Study Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Explain the characteristics and purposes of cost accounting.

More information

PAPER 3: COST AND MANAGEMENT ACCOUNTING QUESTIONS

PAPER 3: COST AND MANAGEMENT ACCOUNTING QUESTIONS Material Cost PAPER 3: COST AND MANAGEMENT ACCOUNTING QUESTIONS 1. Aditya Brothers supplies surgical gloves to nursing homes and polyclinics in the city. These surgical gloves are sold in pack of 10 pairs

More information

IT 470a Six Sigma Chapter X

IT 470a Six Sigma Chapter X Chapter X Lean Enterprise IT 470a Six Sigma Chapter X Definitions Raw Materials component items purchased and received from suppliers WIP work in process, items that are in production on the factory floor

More information

INTER CA MAY PAPER 3 : COST AND MANAGEMENT ACCOUTING Branch: Multiple Date: Page 1

INTER CA MAY PAPER 3 : COST AND MANAGEMENT ACCOUTING Branch: Multiple Date: Page 1 INTER CA MAY 2018 PAPER 3 : COST AND MANAGEMENT ACCOUTING Branch: Multiple Date: Note: Question 1 is compulsory. Attempt any five from the rest. Note: All questions are compulsory. Question 1 (5 Marks

More information

Motion and Time Study

Motion and Time Study IE 101-Industrial Engineering Orientation Fall 2009 Motion and Time Study Engin Topan Defining Work Systems Work consists of tasks Tasks consist of work elements Work elements consist of basic motion elements

More information

Chapter 02 Cost Terminology and Cost Behaviors. Lecture Outline. LO.1 Why are costs associated with a cost object? A. Introduction

Chapter 02 Cost Terminology and Cost Behaviors. Lecture Outline. LO.1 Why are costs associated with a cost object? A. Introduction Solution Manual for Cost Accounting Foundations and Evolutions 8th Edition by Kinney and Raiborn Link full download of Solution Manual: https://digitalcontentmarket.org/download/solution-manual-for-costaccounting-foundations-and-evolutions-8th-edition-by-kinney-and-raiborn/

More information

Part VI MANUFACTURING SUPPORT SYSTEMS

Part VI MANUFACTURING SUPPORT SYSTEMS Part VI MANUFACTURING SUPPORT SYSTEMS Chapters: 23. Product Design and CAD/CAM in the Production System 24. Process Planning and Concurrent Engineering 25. Production Planning and Control Systems 26. Just-In-Time

More information

CHAPTER 2. Job Order Costing. Brief A B Study Objectives Questions Exercises Do It! Exercises Problems Problems

CHAPTER 2. Job Order Costing. Brief A B Study Objectives Questions Exercises Do It! Exercises Problems Problems CHAPTER 2 Job Order Costing ASSIGNMENT CLASSIFICATION TABLE Brief A B Study Objectives Questions Exercises Do It! Exercises Problems Problems 1. Explain the characteristics 1, 2, 3, 4 and purposes of cost

More information

Disk Drive Manufacturers Move Ahead with RFID-Enabled Media Process Line

Disk Drive Manufacturers Move Ahead with RFID-Enabled Media Process Line Case study Disk Drive Manufacturers Move Ahead with RFID-Enabled Media Process Line The world s disk drive manufacturers are positioned at the heart of today s information-centric world. Throughout their

More information

Chapter 2 Cost Classification & Cost Behaviour. Ibrahim Sameer (MBA - Specialized in Finance, B.Com Specialized in Accounting & Marketing)

Chapter 2 Cost Classification & Cost Behaviour. Ibrahim Sameer (MBA - Specialized in Finance, B.Com Specialized in Accounting & Marketing) Chapter 2 Cost Classification & Cost Behaviour Ibrahim Sameer (MBA - Specialized in Finance, B.Com Specialized in Accounting & Marketing) Total Cost / Service Costs The total cost of making a product or

More information

NCODE Manufacturing Executions Systems OEE & Downtime Tracking

NCODE Manufacturing Executions Systems OEE & Downtime Tracking NCODE Manufacturing Executions Systems OEE & Downtime Tracking Services Brochure NCODE Manufacturing Executions Systems OEE & Downtime Tracking Brochure 2 Connecting your devices NCODE applies the latest

More information

Exercise E21-1 page 886. (a) Factory Labor 103,000 Factory Wages Payable 90,000 Employer Payroll Taxes Payable 9,000

Exercise E21-1 page 886. (a) Factory Labor 103,000 Factory Wages Payable 90,000 Employer Payroll Taxes Payable 9,000 Exercise E21-1 page 886 (a) Factory Labor 103,000 Factory Wages Payable 90,000 Employer Payroll Taxes Payable 9,000 Employer Fringe Benefits Payable 4,000 (b) Work in Process Inventory 87,550 Manufacturing

More information

INTER CA NOVEMBER 2018

INTER CA NOVEMBER 2018 Answer 1 INTER CA NOVEMBER 2018 Sub: COSTING Topics Introduction, Cost Sheet, Standard Costing, Integral and Non- Integral Accounts, Activity Based Costing Test Code N14 Branch: Multiple Date: Note : All

More information

CHAPTER 1 INTRODUCTION

CHAPTER 1 INTRODUCTION 1 CHAPTER 1 INTRODUCTION 1.1 MANUFACTURING SYSTEM Manufacturing, a branch of industry, is the application of tools and processes for the transformation of raw materials into finished products. The manufacturing

More information

Code No. : 5728 Sub. Code : C 41 K/CCA 41

Code No. : 5728 Sub. Code : C 41 K/CCA 41 (8 pages) Reg. No. :... Sub. Code : C 41 K/CCA 41 M.Com. (CBCS) DEGREE EXAMINATION, APRIL 2015. Fourth Semester Commerce/Commerce with Computer Application ADVANCED COST ACCOUNTING (For those who joined

More information

ACCTG 221 / ABC Costing

ACCTG 221 / ABC Costing ACCTG 221 / ABC Costing ACTIVITY BASED COSTING SYSTEMS First identifies activities in an organization and then assigns the cost of each activity to products and services based on actual consumption The

More information

MANUFACTURING SYSTEM BETP 3814 INTRODUCTION TO MANUFACTURING SYSTEM

MANUFACTURING SYSTEM BETP 3814 INTRODUCTION TO MANUFACTURING SYSTEM MANUFACTURING SYSTEM BETP 3814 INTRODUCTION TO MANUFACTURING SYSTEM Tan Hauw Sen Rimo 1, Engr. Mohd Soufhwee bin Abd Rahman 2, 1 tanhauwsr@utem.edu.my, 2 soufhwee@utem.edu.my LESSON OUTCOMES At the end

More information

PERFORMANCE ANALYSES OF CONWIP CONTROLLED PRODUCTION SYSTEM USING SIMULATION

PERFORMANCE ANALYSES OF CONWIP CONTROLLED PRODUCTION SYSTEM USING SIMULATION PERFORMANCE ANALYSES OF CONWIP CONTROLLED PRODUCTION SYSTEM USING SIMULATION ROTARU Ana University of Pitesti, Faculty of Mechanics and Technology, Department of Management and Technology e-mail: ana_c_rotaru@yahoo.com

More information

Exercises on Production Function and Cost Minimization

Exercises on Production Function and Cost Minimization Exercises on Production Function and Cost Minimization 1) Suppose you manage a plant that produces exercise equipment for Crossfit enthusiasts. In your plant you use workers (L) and assembly line machines

More information

CAD/CAM CHAPTER ONE INTRODUCTION. Dr. Ibrahim Naimi

CAD/CAM CHAPTER ONE INTRODUCTION. Dr. Ibrahim Naimi CAD/CAM CHAPTER ONE INTRODUCTION Dr. Ibrahim Naimi Production System Facilities The facilities in the production system are the factory, production machines and tooling, material handling equipment,

More information

ANYTIME 500 ENHANCED COSTING

ANYTIME 500 ENHANCED COSTING ANYTIME 500 ENHANCED COSTING Improve manufacturing cost accuracy and analysis / reporting with Enhanced Costing. Sage 500 ERP s core functionality provides strong manufacturing costing capabilities. Enhanced

More information

Setup Reduction Removing the Rocks

Setup Reduction Removing the Rocks Setup Reduction Removing the Rocks Paul W. Critchley, President, New England Lean Consulting PRESENTED BY Why is Setup Reduction Important? Water (inventory) covers up the rocks: Lack of standard work

More information

TYPES OF COST CLASSIFICATIONS CLASSIFICATION BY BEHAVIOR

TYPES OF COST CLASSIFICATIONS CLASSIFICATION BY BEHAVIOR 18-11 C 2 Cost TYPES OF COST CLASSIFICATIONS CLASSIFICATION BY BEHAVIOR Cost Activity Activity Cost Cost behavior refers to how a cost will react to changes in the level of business activity. Total fixed

More information

COST SHEET. Samir K Mahajan

COST SHEET. Samir K Mahajan COST SHEET Samir K Mahajan COMPONENTS OF TOTAL COST Prime cost: It is the aggregate of direct material cost, direct labour cost and direct expenses. Prime cost or Direct cost = Direct materials + Direct

More information

7/8/2017 CAD/CAM. Dr. Ibrahim Al-Naimi. Chapter one. Introduction

7/8/2017 CAD/CAM. Dr. Ibrahim Al-Naimi. Chapter one. Introduction CAD/CAM Dr. Ibrahim Al-Naimi Chapter one Introduction 1 2 3 Production System Facilities The facilities in the production system are the factory, production machines and tooling, material handling equipment,

More information

REVIEW FOR EXAM NO. 1, ACCT-2302 (SAC) (Chapters 14-16)

REVIEW FOR EXAM NO. 1, ACCT-2302 (SAC) (Chapters 14-16) A. Chapter 14 (Managerial Accounting). 1. Purposes and Principles. (Page 632) REVIEW FOR EXAM NO. 1, ACCT-2302 (SAC) (Chapters 14-16) a. Provides economic/financial information (both historical and estimated)

More information

Similarities Between Job-Order and Process Costing

Similarities Between Job-Order and Process Costing Similarities Between Job-Order and Process Costing 4-1 Both systems assign material, labor, and overhead costs to products and they provide a mechanism for computing unit product costs. Both systems use

More information

CONTENT TOPIC 3: SUPPLY, PRODUCTION AND COST. The Supply Process. The Role of the Firm 10/10/2016

CONTENT TOPIC 3: SUPPLY, PRODUCTION AND COST. The Supply Process. The Role of the Firm 10/10/2016 CONTENT TOPIC 3: SUPPLY, PRODUCTION AND COST - The factors of production - Combining factors of production: The law of returns - Costs of production: Short & Long Run - Deciding whether to produce in the

More information

Online Student Guide Total Productive Maintenance

Online Student Guide Total Productive Maintenance Online Student Guide Total Productive Maintenance OpusWorks 2016, All Rights Reserved 1 Table of Contents LEARNING OBJECTIVES... 2 INTRODUCTION... 2 MEETING CUSTOMER DEMAND... 2 UNPLANNED DOWNTIME... 3

More information

1. F; I 2. V ; D 3. V ; D 4. F; I 5. F; I 6. F; I 7. V ; D 8. F; I 9. F; I 10. V ; D 11. F; I 12. F; I 13. F; I 14. F; I

1. F; I 2. V ; D 3. V ; D 4. F; I 5. F; I 6. F; I 7. V ; D 8. F; I 9. F; I 10. V ; D 11. F; I 12. F; I 13. F; I 14. F; I SOLUTIONS TO EERCISES EERCISE 2-1 (15 minutes) 1. F; I 2. V ; D 3. V ; D 4. F; I 5. F; I 6. F; I 7. V ; D 8. F; I 9. F; I 10. V ; D 11. F; I 12. F; I 13. F; I 14. F; I EERCISE 2-2 (15 minutes) 1. Product

More information

Cost Behavior. Material Cost: Direct material: 1. seen in the final product 2. economic/visible to trace Indirect Material:

Cost Behavior. Material Cost: Direct material: 1. seen in the final product 2. economic/visible to trace Indirect Material: 1 Chapter 2 Introduction to Cost Terms and Purposes Cost A cost is the value of economic resources (e.g., money) sacrificed or used up to achieve a particular objective (e.g., produce a product or perform

More information

Manufacturing Systems & Single Station Manufacturing. Lecture 2

Manufacturing Systems & Single Station Manufacturing. Lecture 2 Manufacturing Systems & Single Station Manufacturing Lecture 2 Manufacturing Systems in Production Sstem System Manufacturing System Defined A collection o of integrated equipment e and human resources,

More information

Production Management and Scheduling

Production Management and Scheduling Production Management and Scheduling Meet Your Due Dates Your production process can be simple or complex, time consuming or quick, but one thing remains constant the drive to meet your customer s delivery

More information

Practice assessment model answers

Practice assessment model answers Practice assessment model answers Management Accounting: Decision and Control (MDCL) Practice assessment 1 (for Live assessments from 5 March 2018) Version 1.1 published 6 February 2018 Copyright 2018

More information

Session 5 - MECHANICAL ENGINEERING PROFILE, ITS IMPORTANCE AND APPLICATION

Session 5 - MECHANICAL ENGINEERING PROFILE, ITS IMPORTANCE AND APPLICATION INTRO TO INDUSTRIAL ENGINEERING SESSION 5 1 Session 5 - MECHANICAL ENGINEERING PROFILE, ITS IMPORTANCE AND APPLICATION Definition of Industrial Engineering The formal definition of industrial engineering

More information

Chapter 02 - Cost Concepts and Cost Allocation

Chapter 02 - Cost Concepts and Cost Allocation Chapter 02 - Cost Concepts and Cost Allocation Student: 1. Product costs for a manufacturing company consist of direct materials, direct labor, and overhead. 2. Period cost and product cost are synonymous

More information

Chapter 02 - Cost Concepts and Cost Allocation

Chapter 02 - Cost Concepts and Cost Allocation Chapter 02 - Cost Concepts and Cost Allocation Student: 1. Product costs for a manufacturing company consist of direct materials, direct labor, and overhead. 2. Period cost and product cost are synonymous

More information

Fill-in-the-Blank Equations. Exercises

Fill-in-the-Blank Equations. Exercises Chapter 15 (1) Introduction to Managerial Accounting Study Guide Solutions 1. Merchandise available for sale 2. Cost of merchandise sold Fill-in-the-Blank Equations 3. Cost of goods manufactured during

More information

Full file at Chapter 02 - Basic Cost Management Concepts

Full file at   Chapter 02 - Basic Cost Management Concepts CHAPTER 2 BASIC COST MANAGEMENT CONCEPTS Learning Objectives 1. Explain what is meant by the word cost. 2. Distinguish among product costs, period costs, and expenses. 3. Describe the role of costs in

More information

AGENDA: JOB-ORDER COSTING

AGENDA: JOB-ORDER COSTING TM 3-1 AGENDA: JOB-ORDER COSTING A. The documents in a job-order costing system. 1. Materials requisition form. 2. Direct labor time ticket. 3. Job cost sheet. B. Applying overhead using a predetermined

More information

AXIOMATIC DESIGN OF PRODUCTION MODULE TEMPLATES

AXIOMATIC DESIGN OF PRODUCTION MODULE TEMPLATES Proceedings of ICAD26 Firenze June 13-16, 26 ICAD-26-9 AIOMATIC DESIGN OF PRODUCTION MODULE TEMPLATES Dominik T. Matt dominik.matt@polito.it Politecnico di Torino Corso Duca degli Abruzzi, 24 1129 Torino

More information

Ch 15 Manual Assembly Lines

Ch 15 Manual Assembly Lines Ch 15 Manual Assembly Lines Sections: 1. Fundamentals of Manual Assembly Lines 2. Analysis of Single Model Assembly Lines 3. Line Balancing Algorithms 4. Mixed Model Assembly Lines 5. Workstation Considerations

More information

2009 Pearson Prentice Hall. All rights reserved. Job Costing Systems

2009 Pearson Prentice Hall. All rights reserved. Job Costing Systems Job Costing Systems Types of Product-Costing Systems Process Costing Job-Order Costing Used for production of large, unique, high-cost items. Built to order rather than mass produced. Many costs can be

More information

MOCK TEST PAPER INTERMEDIATE (NEW): GROUP I PAPER 3: COST AND MANAGEMENT ACCOUNTING

MOCK TEST PAPER INTERMEDIATE (NEW): GROUP I PAPER 3: COST AND MANAGEMENT ACCOUNTING MOCK TEST PAPER INTERMEDIATE (NEW): GROUP I PAPER 3: COST AND MANAGEMENT ACCOUNTING Test Series: March 2018 Answers are to be given only in English except in the case of the candidates who have opted for

More information

Tim Gutowski, July 8, 2002

Tim Gutowski, July 8, 2002 Measuring Performance; Metrics for Time, Rate, Cost, Quality, Flexibility, and the Environment Introduction Tim Gutowski, July 8, 2002 Manufacturing processes and systems operate in a competitive environment.

More information

Lecture 12. Introductory Production Control

Lecture 12. Introductory Production Control Lecture 12 Introductory Production Control 167 Where we ve come from: Models of Manufacturing Systems: Deterministic, Queuing, Simulation Key ideas: Some WIP useful for buffering stations, but More WIP

More information

Calculation Schema. Setting up the calculation schema in beas. Beas Tutorial. Boyum Solutions IT A/S

Calculation Schema. Setting up the calculation schema in beas. Beas Tutorial. Boyum Solutions IT A/S Calculation Schema Setting up the calculation schema in beas Boyum Solutions IT A/S Beas Tutorial TABLE OF CONTENTS 1. INTRODUCTION... 3 2. PROCESS... 3 2.1. Master Data Tab... 5 2.2. Overhead Costs Tab...

More information

*Brief Exercise

*Brief Exercise *Brief Exercise 19-1 0 Presented below are incomplete manufacturing cost data. Determine the missing amounts for three different situations. Direct Materials Used Direct Labor Used Factory Overhead (a)

More information

2. Standard costs imply a) Predetermined cost for a period b) Incurred cost c) Conversion cost d) Incremental cost

2. Standard costs imply a) Predetermined cost for a period b) Incurred cost c) Conversion cost d) Incremental cost QUESTION BANK PAPER: COST ACCOUNTING COURSE: B.Com (Semester IV) MCQs 1. The basic objective of cost accounting is a) Recording of cost b) Reporting of cost c) Cost control d) EarningProfit 2. Standard

More information

Cost Accounting. Multiple Choice Questions:

Cost Accounting. Multiple Choice Questions: Multiple Choice Questions: 1- The Value Chain a- Involves external companies as well as internal activities. b- Is the sequence of business functions in which customer usefulness is added to products or

More information

PAPER 4 QUESTION ONE. The ABC system can therefore be described as constituting the following stages:

PAPER 4 QUESTION ONE. The ABC system can therefore be described as constituting the following stages: QUESTION ONE PAPER 4 Activity based costing is a method of costing products in which an attempt is made to reflect more accurately in the product costs those, activities which influence the level of overheads.

More information

ANIL SHARMA S CLASSES

ANIL SHARMA S CLASSES ANIL SHARMA S CLASSES {Marks: 100} (COSTING PAPER-FULL) {Time: 3 Hours} ----------------------------------------------------------------------------------------------------- Q-1: What is meant by cost

More information

An Economic Overview of Automated Pallet Handling Systems (Part 1) William G. Howard, Jr. Product Line Manager

An Economic Overview of Automated Pallet Handling Systems (Part 1) William G. Howard, Jr. Product Line Manager An Economic Overview of Automated Pallet Handling Systems (Part 1) William G. Howard, Jr. Product Line Manager An economic overview of automated pallet handling systems (Part 1) In addition to the technical

More information

Ch.4 Evaluating Requisitions.

Ch.4 Evaluating Requisitions. Module 1 : Purchasing Process. Ch.4 Evaluating Requisitions. Edited by Dr. Seung Hyun Lee (Ph.D., CPM) IEMS Research Center, E-mail : lkangsan@iems.co.kr Cost/Benefit Analysis. Classification of Costs

More information

Understanding Production Costs. Principles of Microeconomics Module 4

Understanding Production Costs. Principles of Microeconomics Module 4 Understanding Production Costs Principles of Microeconomics Module 4 Firm Decisions: Short Run and Long Run A firm s decisions are grouped as: Short-run decisions time horizon over which at least one of

More information

Level 3 Accounting, 2005

Level 3 Accounting, 2005 For Supervisor s 3 9 0 5 0 2 Level 3 Accounting, 2005 90502 Process financial information for a manufacturing job cost subsystem Credits: Three 2.00 pm Tuesday 22 November 2005 Check that the National

More information

DEPARTMENT OF INDUSTRIAL ENGINEERING INDR 291 SUMMER PRACTICE REPORT MANUFACTURING FACILITIES. <Your Name Here>

DEPARTMENT OF INDUSTRIAL ENGINEERING INDR 291 SUMMER PRACTICE REPORT MANUFACTURING FACILITIES. <Your Name Here> KOÇ UNIVERSITY College of Engineering DEPARTMENT OF INDUSTRIAL ENGINEERING INDR 291 SUMMER PRACTICE REPORT MANUFACTURING FACILITIES Internship Company and Department:

More information

Modeling High Mix processes in Process Simulator

Modeling High Mix processes in Process Simulator Modeling High Mix processes in Process Simulator Instructor Info: Bruce Gladwin, PMP, 6σBB SVP, Commercial s Office: 801.223.4639 bgladwin@promodel.com 2/2018 Version 9.3 PCS Visio Tips & Features Webinar

More information

MANUFACTURING PROCESSES (SME

MANUFACTURING PROCESSES (SME MANUFACTURING PROCESSES (SME 2713 ) Introduction 2 Dept. of Materials, Manufacturing and Industrial Engineering, Faculty of Mechanical Engineering, Universiti Teknologi Malaysia 1. Methods of Production

More information

CHAPTER 20 JOB ORDER COST ACCOUNTING SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM S TAXONOMY. True-False Statements

CHAPTER 20 JOB ORDER COST ACCOUNTING SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM S TAXONOMY. True-False Statements CHAPTER 20 JOB ORDER COST ACCOUNTING SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM S TAXONOMY Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT True-False Statements 1. 1 K 8. 2 K 15. 2 K 22.

More information

Inventory and Variability

Inventory and Variability Inventory and Variability 1/29 Copyright c 21 Stanley B. Gershwin. All rights reserved. Inventory and Variability Stanley B. Gershwin gershwin@mit.edu http://web.mit.edu/manuf-sys Massachusetts Institute

More information

DEPARTMENT OF INDUSTRIAL ENGINEERING INDR 391 SUMMER PRACTICE REPORT MANUFACTURING FACILITIES. <Your Name Here>

DEPARTMENT OF INDUSTRIAL ENGINEERING INDR 391 SUMMER PRACTICE REPORT MANUFACTURING FACILITIES. <Your Name Here> KOÇ UNIVERSITY College of Engineering DEPARTMENT OF INDUSTRIAL ENGINEERING INDR 391 SUMMER PRACTICE REPORT MANUFACTURING FACILITIES Internship Company and Department:

More information

Lesson 7: Cost, Revenue and Profit Functions

Lesson 7: Cost, Revenue and Profit Functions Lesson 7: Cost, Revenue and Profit Functions OBJECTIVE In today s lesson, we will study study three functions fundamental in economy and business: the cost, the revenue and the profit functions. Pay close

More information

MANAGERIAL ACCOUNTING (135) Post-secondary

MANAGERIAL ACCOUNTING (135) Post-secondary Page 1 of 9 MANAGERIAL ACCOUNTING (135) Post-secondary REGIONAL 2017 Multiple Choice & Short Answer Section: Multiple Choice (20 @ 2 points each) Short Answers (11 @ 4 points each) (40 points) (44 points)

More information

3 October 2017 Page 1 of 5 BellHawk Systems Corporation

3 October 2017 Page 1 of 5 BellHawk Systems Corporation Three Ways to Track Work-in-Process using BellHawk Introduction There are three ways to track work-in-process using the BellHawk software: 1. Use the BellHawk WIPS (Work-in-Process System) to track when

More information

ACCT Professor Johnson Lecture Notes Chapter 16: PROCESS COSTING AND ANALYSIS

ACCT Professor Johnson Lecture Notes Chapter 16: PROCESS COSTING AND ANALYSIS PROCESS OPERATIONS ACCT 102 - Professor Johnson Lecture Notes Chapter 16: PROCESS COSTING AND ANALYSIS In Chapter 15, we studied the job order cost accounting system used when a company manufactures products

More information

Inventory Control. Inventory. Inventories in a manufacturing plant. Why inventory? Reasons for holding Raw Materials. Reasons for holding WIP

Inventory Control. Inventory. Inventories in a manufacturing plant. Why inventory? Reasons for holding Raw Materials. Reasons for holding WIP Inventory Control Inventory the oldest result of the scientific management efforts inventory plays a key role in the logistical behavior of virtually all manufacturing systems the classical inventory results

More information

Activity-Based Costing. Managerial Accounting, Fourth Edition

Activity-Based Costing. Managerial Accounting, Fourth Edition Study Objectives Study CHAPTER Objectives 4 Activity-Based Costing Managerial Accounting, Fourth Edition Study Objectives 1. Recognize the difference between traditional costing and activity based costing.

More information

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS FINANCIAL STATEMENTS Key Topics to Know Cost of good sold statement is prepared from the finished goods inventory account. Cost of goods sold statement has the same format as in financial accounting. Cost

More information

Short Run Costs. The Costs of Production. Fixed Costs, Variable Costs, and Total Costs. Fixed Costs, Variable Costs, and Total Costs

Short Run Costs. The Costs of Production. Fixed Costs, Variable Costs, and Total Costs. Fixed Costs, Variable Costs, and Total Costs The Costs of Production Short Run Costs Part 2 There are many different types of costs. Invariably, firms believe costs are too high and try to lower them. Fixed Costs, Variable Costs, and Total Costs

More information

Production Management Fall 2006 Odette School of Business University of Windsor. Midterm Exam 2 Solution Thursday, November 23, 5:30 6:50 pm

Production Management Fall 2006 Odette School of Business University of Windsor. Midterm Exam 2 Solution Thursday, November 23, 5:30 6:50 pm Name (print, please) ID Production Management 73-604 Fall 2006 Odette School of Business University of Windsor Midterm Exam 2 Solution Thursday, November 23, 5:30 6:50 pm Instructor: Mohammed Fazle Baki

More information

Stored resource used to satisfy a current or future need: Raw materials, work-in-process, finished goods.

Stored resource used to satisfy a current or future need: Raw materials, work-in-process, finished goods. Summary 1. Introduction Statistics, management science, operations research, decision aid, 2. Advanced optimization Linear programming Integer programming Non-linear programming 3. Multicriteria decision

More information

CHAPTER 12 - REMOTE TIME ENTRY ADD-ON OPTION

CHAPTER 12 - REMOTE TIME ENTRY ADD-ON OPTION CHAPTER 12 - REMOTE TIME ENTRY ADD-ON OPTION PRODUCTION MANAGEMENT OVERVIEW The Production Management subsystem manages all daily production activities. If you are using the Remote Job Card Data Collection

More information

JOB ORDER COSTING. LO 1: Cost Systems. Determine whether job order costing or process costing would be more appropriate for each industry.

JOB ORDER COSTING. LO 1: Cost Systems. Determine whether job order costing or process costing would be more appropriate for each industry. JOB ORDER COSTING Terms Cost Accounting Process Cost System Job Order Cost System LO 1: Cost Systems Job-Order Costing Used for custom or unique items Each job is accounted for separately Measures cost

More information

CONTRACTOR COST ACCOUNTING

CONTRACTOR COST ACCOUNTING CONTRACTOR COST ACCOUNTING PURPOSE AND SCOPE This teaching note explains certain key concepts of cost or managerial accounting, describes the types of cost accounting systems, and how the systems are used

More information

COST SHEET. Samir K Mahajan

COST SHEET. Samir K Mahajan COST SHEET Samir K Mahajan COMPONENTS OF TOTAL COST Prime cost or Direct cost : It is the aggregate of direct material cost, direct labour cost and direct expenses. i.e. Prime cost or Direct cost = Direct

More information

Question Paper Code: 60837

Question Paper Code: 60837 Reg.NO: Question Paper Code: 60837 B.E / B.Tech. DEGREE EXAMINATION, NOVEMBER / DECEMBER 2016 Eighth Semester Mechanical Engineering ME2036 / ME802 / 10122 ME E144 PRODUCTION PLANNING AND CONTROL (Common

More information

Overheads/Job and Batch Costing. RST Ltd. has two production departments Machining and Finishing. There are three service

Overheads/Job and Batch Costing. RST Ltd. has two production departments Machining and Finishing. There are three service CA R. K. Mehta Overheads/Job and Batch Costing CA Past Years Exam Question Question : 1 Nov, 2006 RST Ltd. has two production departments Machining and Finishing. There are three service departments Human

More information

- Product costing Systems are used to compute the product cost per unit. - Product cost per unit is needed for a variety of purpose:

- Product costing Systems are used to compute the product cost per unit. - Product cost per unit is needed for a variety of purpose: Introduction: - Product costing Systems are used to compute the product cost per unit. - Product cost per unit is needed for a variety of purpose: o In financial accounting; Used to value inventory and

More information