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What are the Goals of the Conversion Process?. Manufacture the highest quality products Utilize labor and other manufacturing resources in an efficient and effective manner. What are the 4 Primary Activities in the Conversion Process?. Schedule production
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What are the Goals of the Conversion Process? • Manufacture the highest quality products • Utilize labor and other manufacturing resources in an efficient and effective manner
What are the 4 Primary Activities in the Conversion Process? • Schedule production • Manufacturers try to process raw materials in a systematic and controlled way the minimizes costs. • Production managers who understand the details' of the production process make these scheduling decision based on product demand from the sales and marketing department • How well scheduling is done determines cost • Computers have helped to reduce costs
What are the 4 Primary Activities in the Conversion Process? • Obtain raw materials • The employee from the production department getting the materials uses a materials requisition form • Therefore, any damage or theft after the materials leave storage and before they are moved to finished goods is the responsibility of the production department.
What are the 4 Primary Activities in the Conversion Process? • Use labor and other manufacturing resources • Labor is tracked by using time tickets • Manufacturing overhead • Not directly associated with production.
What are the 4 Primary Activities in the Conversion Process? • Store finished goods until sold • After the manufacturing process is complete, finished products move from the production floor to storage until a shipping order is received. • Demand-pull is based on JIT philosophy and flexible manufacturing processes • Stipulates that products(inventory) should be received by customers just as they are needed and in the quantities needed. Flexible according to customer needs.