267
Appendix C (Chapter 5)
C.1 Sample Education and Training Matrices
C.1.1 Organizational Function versus Business Process Matrix
is matrix grossly depicts which functional areas will have either business process or software
module involvement. For example,
Business process
B
o
M
I
N
V
S
O
E
P
U
R
M
R
P
M
F
G
S
F
C
W
I
P
C
M
S
G
/
L
A
/
P
A
/
R
P
A
Y
Engineering x x x x x x
Material control xxxxxxxx x
Prod control x x x x x x x x
Order admin xxx x
Marketing x x x x x
Human resource x
Accounting x x x x x x x x x
Legend:
BoM = Bill of Material WIP = Work in Process
INV = Inventor
yC
MS = Cost Management
SOE = Sales Order Entry G/L = General Ledger
PUR = Purchasing A/P = Accounts Payable
MRP = Material Requirements Planning A/R =
Accounts Receivable
MFG = Manufacturing PAY = Payroll
SFC
=
Shop Floor Control
Note: We have elected to display three dierent matrix examples. Other matrixes may include
personnel-to-session, mix-to-session, feature-to-module, and so on. A separate series of matrixes
are needed for Education and another for Training.
268Appendix C (Chapter 5)
C.1.2 Individual by Transaction/Feature Matrix
Another matrix consists of detailing each business process/module into functionality and listing
personnel attendance. For example,
Inventory module features
Receipt
Issue
Move
Adjustment
Pick
Txn matrix
Cyc inv
Cost
Location
Reject
Database
Gerry W. xx xx
xxxx
Robert L. xx
xx
Michael M. xxxxxxxxxxx
Joan P. xx xx
xx
Bobbie S. xxxxx
Boris K. xx
xx
Donny O. xxxxx
C.1.3 Transaction/Feature by Session Matrix
Another matrix involves functions with exercise sessions. e objective of this matrix is to tie a
specic exercise session to dierent features. For example,
Session number
12345678910 11 12
Txn matrix x x x x x x
Receipt x x x x
Issue x x x x
Move x x
Adjustment x x
Pick xx x
Cycle inv x x
Cost x x x
Location x x
Reject x x x
Database x x
Legend:
Txn
=
Transaction INV
=
Inventory
C.2 Example of a Conference Room Pilot
C.2.1 Overview
e cost buildup system (CBS) structures and develops the standard or actual costs for a company.
We have selected standard cost method for our example and the cost types include the following:
Frozen Standard cost
Current Manufacturing cost
Current Engineering cost
Appendix C (Chapter 5)269
Next Period budget cost
Last Year’s Frozen Standard cost
e Frozen Standard cost will be used as follows:
Inventory valuation
Target: Means to measure purchase cost variance
Target: Means to measure manufacturing usage cost variance
Target: Means to measure engineering cost variance
e cost elements consist of the following:
Direct material
Direct production labor
Direct test labor
Material overhead
Labor overhead
Outside processing
Scrap
Freight
e cross-functional team participants are as follows:
Manufacturing engineering
Database administration
Materials manager
Cost accounting
C.2.2 Session Deliverables
Session 1: Validate Current Manufacturing cost and roll over into Frozen Standard. e objec-
tive of this session is to simulate the rollover activities when Current Manufacturing costs
roll over into Frozen Standard.
e cross-functional team will enact the necessary controls and procedures as if this were
the “real” event.
e edit and validation of all costs and performance of the proper sequence of transactions
are central to the success of the session.
Session 2: Understanding the eects of Engineering Changes on costs, when Current
Manufacturing costs roll over into the Frozen Standard.
e objective of this session is to simulate the eects that the Engineering Changes will
functionally have on various cost types.
e exercise will involve creating a new part on the item master le, changing the Bill of
Material structure with a future eectivity date, and comparing the cost dierences. e
team will then make the change eective (change eectivity date) and note the results of
the cost transfer from Current Engineering to Current Manufacturing.

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