Professional Documents
Culture Documents
Integrated Production
Processes (IPP)
Accounting Information Systems 8e
Ulric J. Gelinas and Richard Dull
2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated,
in whole or in part, except for use as permitted in a license distributed with a certain product
or service or otherwise on a password-protected website for classroom use
Learning Objectives
Appreciate the forces that exist in the contemporary production
environment and the trends that have emerged.
Understand the role of enterprise systems (ES) in the integration of
the total manufacturing environment.
Understand the key inputs, outputs, data, processes, and terminology
included in modern integrated production processes (IPP).
Understand the relationship between integrated production
processes (IPP) and other key business processes within a
manufacturing organization, including HR management, purchasing,
order entry/sales (OE/S) , and inventory management.
Understand the role of inventory management systems and their
relationship to integrated production processes (IPP).
Global Manufacturing
Environment
Manufacturing is a quick way for developing
countries to increase wealth and citizens
wages.
Global competition has forced domestic
companies to become more customerfocused and efficient in order to survive.
Such efforts have led to marked
improvements in domestic productivity.
3
Product Innovation
Innovative, quick to market products are
key to competition in a complex
environment.
Cooperation is vital.
Enterprise systems facilitate product
design, manufacturing and marketing.
Companies adopting a value chain
approach have achieved dramatic
productivity gains.
5
Summary of
Trends in
Cost
Management
/ Cost
Accounting
10
Key Manufacturing
Terminology in the IPP Steps
11
12
Forecasted
Manufacturing
Orders
13
Bill of Materials
14
15
16
Production
Routing
Master
17
Manufacturing (Production
Work Centers)
Manufacturing Automation
Flexible manufacturing systems (FMS)
Computer-aided manufacturing (CAM)
Automated storages and retrieval
systems (AS/RS)
Automated guided vehicle systems
(AGVS)
19
20
Variance Analysis
Compares actual costs and usage to
standards costs and usage.
Not perfect, but can be an important
control tool.
Helps determine if production
processes are performing as expected.
21
24
Inventory Management
25
26