PRODUCTION METHODS
A production approach that creates a homogeneous product through a continuous series of standard procedures
Continuous Processing
A document that specifies the part number, description, and quantity of each component used in a finished product.
Bill of Materials (BOM)
A fully automated manufacturing environment integrating design, manufacturing, and business functions.
COMPUTER-INTEGRATED MANUFACTURING (CIM)
The subsidiary ledger for the Work-in-Process control account
Work-in-Process (WIP) File
The formal authorization that initiates production activity.
Production Order (Work Order)
A production method initiated by customer sales orders rather than inventory levels
Make to Order Processing
A document that lists the sequence of operations, equipment used, and time required for each step in production.
Route Sheet (Operations List)
Technology that assists engineers in designing products electronically.
COMPUTER-AIDED DESIGN (CAD)
The document that signals the completion of production and transfer from WIP to Finished Goods.
Last Move Ticket
The control principle that separates production authorization, custody of assets, and record-keeping.
Segregation of Duties
A production approach that manufactures large groups of similar items requiring setup and retooling.
Batch Processing
A formal authorization to manufacture a specified quantity of a product.
PRODUCTION ORDER (WORK ORDER)
Technology that replaces labor with programmable machines to increase precision and efficiency.
COMPUTER-AIDED MANUFACTURING (CAM)
The costing system used when products are manufactured in identifiable batches or jobs.
Job-Order Costing
The control requiring restricted access to materials, WIP, and finished goods inventories.
Access Control
A system that produces only in response to actual customer demand and minimizes inventory.
Lean Manufacturing (Pull Manufacturing / JIT)
A document that authorizes the removal of raw materials from the storeroom to the factory.
MATERIALS REQUISITION
A system of conveyor-based storage that automatically moves materials to and from production areas.
AUTOMATED STORAGE AND RETRIEVAL SYSTEM (AS/RS)
The costing method used when similar goods are produced in mass quantities and unit costs are averaged.
Process Costing
The verification process where physical inventory counts are compared with accounting records.
Independent Verification (Physical Count)
A production planning system that balances capacity and raw materials to meet forecasted demand and may plan up to 12 months ahead.
Manufacturing Resource Planning (MRP-II)
A document that tracks the movement of materials or products between work centers.
MOVE TICKET
A system that enables secure electronic communication between a company and its suppliers or customers.
ELECTRONIC DATA INTERCHANGE (EDI)
The difference between actual and standard costs recorded for materials, labor, or overhead.
Variance
A contingency plan designed to ensure operations continue during system disruptions or disasters.
Business Continuity Plan