The production process

Production Process Scope

Begins with the use of raw materials and ends with the transfer of finished goods to the warehouse.

Lean Production

An organizational philosophy focused on eliminating waste and non-value-added activities.

Master Production Schedule (Input)

Shows the specific quantities of goods needed to meet projected sales demand.

Bill of Materials (Input)

A list identifying the exact types and quantities of parts needed for a specific product.

Production Order (Input)

The document that authorizes the manufacture of goods based on sales and inventory levels.

Materials Requisition (Input)

Authorizes the removal of raw materials from the warehouse for use in production.

Job Timecards (Input)

Documents the specific amount of labor time spent on a particular production job.

Materials Price/Usage Reports

Outputs providing info on the cost and volume of raw materials used.

Inventory Reconciliation Report

Reconciles physical inventory counts with the "book" (digital) balances.

Inventory Status Report

Allows managers to monitor current inventory levels in real-time.

Production Cost Report

Details the actual costs (labor, material, overhead) for production items or separate jobs.

Manufacturing Status Report

Provides updates on the progress of various ongoing production jobs.