3-1

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

3-2

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.

Conversion process

Conversion process