Essentials of Business Processes and Information Systems

5

The Production Process

Learning Objectives

After completing this chapter you will be able to:

• Describe the steps in the production process.
• Explain the role of different functional areas in efficiently and effectively completing the process.
• Identify the key data, document, and information flows associated with the production process.
• Explain the role of enterprise systems in supporting the process.

Historically, SSB has dealt exclusively with trading goods, which it purchases from its vendors and then immediately resells to its customers. Now, rather than simply reselling other companies' skateboards, John wants SSB to beginning producing its own. This clearly is a big step, and John is wondering exactly what it will involve. He recognizes that SSB will now have to purchase the raw materials, or parts, it needs to make the skateboards. However, he has many questions: What parts will SSB need, and in what quantities? After SSB purchases the parts, how does it assemble them to make the skateboards? Finally, how should he keep track of all this work? John vaguely remembers something about bills of material, routing, and accounting from his classes. Now he wishes that he had paid more attention.

In this chapter, we will discuss the production process, also known as the plan-to-produce process. The production process includes all the steps necessary to make the finished goods from ...