The Order Arriving in the Manufacturing Department Triggers the Creation

question 26

Essay

The order arriving in the Manufacturing Department triggers the creation of a preliminary work order.To create this preliminary work order,the department gets data from (a)the sales order,(b)their current production plan file (a window on the plant manager's PC),(c)their current capacity requirement plan (another paper document),and (d)their history of prior work file which is on the plant manager's PC's hard drive and read off the computer screen.An estimate of time,labor,and overhead is manually prepared and entered into a preliminary work order form,which is a multi-part paper form.One copy of the form is sent to the Procurement Department,one copy sent to the Sales Department which is filed by sales order number in a file cabinet,and the Manufacturing department files one copy of the report by order date in the cabinet.The prior work file is not yet updated since the bars have yet to be manufactured.

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Definitions:

Bushels

A measure of volume used primarily for agricultural commodities, varying in actual weight depending on the substance being measured.

Opportunity Cost

The cost of forgoing the next best alternative when a choice is made, essentially what is given up when choosing one option over another.

Brazilian Worker

A Brazilian worker refers to an individual employed in Brazil, often discussed in the context of labor laws, economic conditions, and employment rates within the country.

Columbian Worker

An individual employed in Colombia, potentially referring to labor market conditions specific to the region.