For a production scheduling system, draw the systems flow chart and explain the following:
i. System interfaces
ii. Files and inputs
iii. Report
Answer
PRODUCTION SCHEDULING
Production scheduling is the nerve centre of the production management system. It produces no general ledger journal entries, but is schedules production and monitoring all physical flows. Figure 1 shows the information flow involving the production scheduling system.
To job Order Control
Production Authorisation and standard
From Job-Order Control Job Status Reports
From Marketing analysis
Request for Estimated Delivery Date
To Making Analysis Estimated Delivery Dates
From Materials Inventory Quantities Available and Expected Delivery Dates
To Materials Inventory Control Quantities Required for Production
From Order Processing Production Authorisation
System Interface:
The production scheduling system and various other accounting systems interact frequently. The sales order processing system authorises production scheduling to start work on a job. Production scheduling then provides with estimated delivery dates and receives shipping reports from the finished goods inventory control system. Thus, all job scheduling information is kept in one system.
Within the production management system, the production scheduling and materials inventory control systems interface frequently. Production scheduling informs materials inventory control of the items and quantities required to schedule production, and inventory control indicates the quantities available. Work-in-process control receives production authorisation from the scheduling system. This authorisation creates a new record for a job, and production costs can be charged to the job. At the same time, the work-in-process control system receives the standard cost for the job and provides status reports to the scheduling system. Cost estimation provides production scheduling with budgeted standard costs for all jobs production.
Files and Inputs:
Three files are required in the production scheduling system. The resource utilisation file contains a record for each machine and production process in the factory and maintains work schedules for them. The employee data file contains data concerning employee skills and scheduled work assignments. The production order file maintains completion dates and schedule information for each job.
Reports:
The scheduling system produces periodic production planning reports. They indicate the available capacity and scheduled future utilisation of labour and machinery. A sample reports is shown in Figure 2. Such reports are useful to management because they indicate where excess capacity exists for the planning period. Sales and pricing strategies can be considered to alleviate the situation. On the other hand, if frequent scheduling problems are encountered, then an adjustment in capacity may be necessary.
Production Planning Report
|
A & B Corporation |
Capacity YDT |
Utilisatio n YTD |
Capacity
Dece mbe r |
Date: 3.12.2001 Planned Use December |
| Labour (hours) | ||||
| Welders | 16,500 | 15,790 | 1,500 | 1,450 |
| Machinists | 24,750 | 25,050 | 2,250 | 2,300 |
| Electricians | 4,950 | 4,870 | 450 | 375 |
| Painters | 8,250 | 7,680 | 750 | 680 |
| Total hours | 54,450 | 53,390 | 4,950 | 4,805 |
| Machine (hours) |
| Drill press | 15,360 | 6,870 | 1,280 | 265 |
| Automatic screw | ||||
| machine | 11,520 | 11,460 | 960 | 1040 |
| Lathe | 9,600 | 30 | 800 | 490 |
| Planner | 1,920 | 680 | 160 | 45 |
| Automatic Cutter | 5,760 | 6,010 | 480 | 460 |
| Total hours | 44,160 | 25,050 | 3,680 | 2,300 |
Job status reports concern the status of jobs in the production process. They compare scheduled and actual completion times in the production process. A sample job status report is shown in Figure 3. This report emphasizes scheduled times whereas the job-order control report emphasizes costs.
| A & B Corporation | Job Status Report | Date: 3.12.2001 | |||||
| Job Number 3893 | Customer: Pradeep Tandon & Co. | Estimated Completion
Date: 2.04.2002 |
|||||
| Source | |||||||
| Materials | Invento
ry |
Purch
as e |
Shipped | Receive
d |
Delay | (Day
s ) |
|
| ½ Plate | Y | – | – Y N
– |
– Y N
– |
– | ||
| 6″ WF 20 | – | Y | – | ||||
| 2″ Bearings | – | Y | Y | 20 | |||
| 2″ Shaft | Y | – | – | ||||
|
Labour |
Budgeted Hours |
Actual Hours |
Differen ce |
Estimated
Hours to Complete |
|||
| Welding | 384 | 412 | (28) | 0 | |||
| Machinery | 524 | 319 | 205 | 240 | |||
| Electrical | 40 | 0 | 40 | 40 | |||
| Painting and | |||||||
| Prepara | 80 | 0 | 80 | 80 | |||
| tion | ||||
| Total hours | 1,028 | 731 | 297 | 360 |
