The series of business activities and information processing related to making a product is called the production cycle . The production cycle has a relationship with other cycles in the company. This cycle provides information from the revenue cycle to the inventory of products ready for sale.
Production Life Cycle
Table of Contents
Basic Activities of the Production Cycle
Production cycle activities depend on the database containing the master database. This data contains product specifications and inventory. There are four basic activities in the production cycle , including:
Product Design
The goal of product design activities is to create products that meet:
- Customer needs
- Design in terms of quality
- Durability
- Functionality
You need some documents related to:
- List of components needed when wanting to develop a product.
- List the steps and how long it takes to produce the item.
Planning dan Scheduling
The purpose of planning and scheduling activities is to develop product planning. Is it efficient to fulfill orders and anticipate demand in the short term? When carrying out a production plan you can take two approaches, namely:
Manufacturing Resource Planning
This approach aims to balance production capacity and meet sales predictions.
Lean Manufacturing
Meanwhile, lean manufacturing aims to minimize the production process, exact completion time and material requirements.
In theory, lean manufacturing only produces custom orders. At this stage, you need several documents, such as:
- How many products and time period.
- Control production quality.
- Control over the movement of raw materials.
- Documents for spare parts.
In this case, accountants have a role to ensure that the accounting information system is running consistently.
However, you need to understand several things related to the production process, namely:
- Operational processes vary greatly depending on the type of production. Some require robots and computers as controllers.
- For simple manufacturing triggers several actions. So, it is necessary to check to determine the components to order.
- To share information more efficiently.
Cost Accounting
Meanwhile, the last basic activity of the production process is cost accounting with the aim of:
- Providing information related to planning, control and evaluation during the production process.
- Provide accurate cost data, so it is useful for setting prices.
Considering the importance of the production cycle , Telkom University introduced it to students. So that graduates are ready to work and develop the company well.
