The aim of both systems is to determine the cost of the productive unit and to provide the management with the required data and reports, but there is a difference in the way of determining the cost, for example Written Assignment Unit 2 4 in process costing system cost of the units produced is determined at the end of the agreed cost period. While in the job orders system the cost is determined by the end of the operation and not the order and the reports are submitted after the end of each production order separately. 2. Production in the process costing system is standard, homogenous and continuous, whereas Production in the job orders system is subject to special conditions and demands and the production is usually
Exhibit 1.2.1 explains clearly about the role of information, that is one of the cross-functional drivers in improving supply chain efficiency. It describes how the interaction of various drivers such as transportation, inventory, sourcing and information influence the supply chain performance in terms of efficiency and responsiveness. Let us discuss how the various supply chain drivers impact the performance of the supply chain and its role in decisions related to supply chain design, planning and operations in the following sections. Furthermore, it is discussed that how the trade-off between customer service and cost is achieved with the help of decisions related to supply chain
The aggregate production planning begins by exploring alternative ways of modifying demand and arriving at the period-by-period net demand during the planning. (as shown in the figure below) The second step is to explore the possibilities of modifying the supply so that at the end of the planning, the demand and supply are matched on a period-by-period basis. Based on this, various decisions on the level of inventory to be carried during every period and the rate at which goods are produced and the number of people to be engaged and arrived. At last, each and every decision with respect to capacity is taken through aggregate production planning. Alternatives for Managing
In this essay I will be covering the statistical process control system. The statistical process control system, or SPC for short, is basically a quality control & improvement strategy information system. The statistical process control system is a data driven, graphic centered, process oriented operator run system designed to implement timely corrective action & also a way to identify quality problems & challenges. In this essay I will cover the main features & uses of the statistical process control system. There are several reasons of why many companies use the statistical process control system.
What have they done is to shift one unit to other unit manufacturing and between plant by their manufacturing flexibility and adjustability. The reason of their changes and shifting are according to market demand and requirement of the
creation of goods or service) The conventional conceptualization of production in construction is that production is viewed as a transformation of inputs to outputs (Bertelsen & Koskela 2002). Furthermore, Ballard et al. (2002) defines that the traditional view of production as a flow of material from raw material to the end product. Likewise in economics, the term production is a process which transform inputs into an output.
As described by Kaplinsky and Morris (2001), a value chain can be defined as “the full range of activities which are required to bring a product or service from conception, through the different phases of production, delivery to the final consumer and final disposal after use”. The study in the value chain sector will improve the attempt to understand the distribution of power and value in the chain and to be able to address the agency of workers and small producers (Mitchell and Coles, 2011:11). According to Kaplinsky (2004), the following key elements are important in value chain which need to be recognized and which transform a heuristic into an analytical tool: • “Value chains are repositories for rent, and these rents are dynamic • Governance
• Estimated cost is prepared before accepting an order for submitting price quotation. It is also used for comparing actual performance. • Standard cost is scientifically predetermined cost of a product or service applicable during a specific period of immediate future under current or anticipated operating conditions. The method consists of setting standards for each elements of cost, comparing actual cost incurred with the standard cost, evaluating the variance from standard cost and finding reasons for such variance, so that remedial steps can be taken promptly to check inefficient
Hence the management has planned to analyze and estimate the different types of cost and cost structure. The main objective is to control cost of the project to maximize the profit within the designated period with satisfactory quality of work. Cost structure: Cost structures for the construction, engineering and manufacturing firms have multiple characteristics. These are highlighted below; Fixed