7.1 Work Centers
The following work centers are available.
| SMBRAKE | Street Motorcycle Brake Assembly |
| MCBRAKE | Motorcross Motorcycle Brake Assembly |
| SMASSM | Street Motorcycle Assembly |
| MCASSM | Motorcross Motorcycle Assembly |
| EXTSUB | External Sub Contracting |
These workcenters are assigned to cost centers and activity types as defined by controlling and production management. The quantity of resources in the workcenter must match the quantities budgeted in controlling.
7.2 Capacity
Assume all work centers are not hierarchically structured and have the following capacity.
- Start time 8:00 a.m.
- Stop time 6:00 p.m.
- One hour break time at lunch.
- Effectively at 80%.
7.3 Routings
7.3.1 Routings for the brake assembly
- Assemble front brake.
- Assemble rear brake
- Quality inspection.
- Paint the frame
- Apply letter and AMI “Screaming Eagle” insignia.
- Inspection
- Assemble components according to drawing number
- Quality inspection.
7.4.1 Bill of Material of motocross motorcycle
7.4.4 BILL OF MATERIAL STREET MOTORCYCLE
7.5 Materials Requirements Planning
Master production schedule / materials requirements planning needs to be carried out for the creation of dependent requirements & planned orders. The planned orders need to be converted to production orders on all levels of the assembly.
7.6 Production Orders
The production orders should make use of the bills of material & routings. The assignment of materials to the operational steps is maintained in the routings. Component availability checking should include production orders and purchase orders at the time of the creation and only on-hand available stock at the time of the release of the production orders. Confirmation of the last operation in the routing should trigger a goods movement to inventory. If the automatic goods movement ever fails a rework goods movement should be processed.
7.7 Capacity Planning
The capacity planning is used to identify bottlenecks in available production capacity. In the case that these exist, pre-production is increased in the month of least demand. If this is not sufficient, the earliest date available to promise is determined.
Prototype Presentation
A number of core business functions have been identified. The supporting R/3 transactions are to form the basis for the presentation made to the steering committee.
1. Demonstrate your Implementation project. Due to the lack of time no resource assignment and documentation is required.
2. Display the beginning Balance Sheets and P & Ls for the two subsidiaries.
3. Demonstrate the pre-planning in Cebu and the demand transfer to the production plant. Execute MRP for material 100001 in the production plant.
4. Create a purchase order for the vendor Wheels in Motion.
Convert one of the requisitions generated by MRP into
a Purchase Order.
5. Receive inventory against the purchase order
6. Show the service PO created for HVAC cleaning services in the Roces Avenue plant.
7. Demonstrate service entry and acceptance for HVAC cleaning services.
8. Invoice Verification.
Use invoice verification to record the invoice from vendor
Wheels in Motion.
9. Create a customer sales order for the Chicago sales
office.
Customer, All Terrain Cycles places an order for express
delivery as follows:
| Material | Quantity |
| 100001 | 100 PC |
| 100025 | 75 |
| 500026 | 50 |
| 500022 | 50 |
Verify the following are correct:
- Shipping point
- Delivery Plant
- Pricing
10. Create the billing document for this delivery.
Create the billing document and ensure that the posting
to financial accounting is successfully completed.
Examine the accounting posting to validate the general
ledger accounts used.
11. Create a returns order with reference to the sales
order.
The customer has called and complained about the quality
of the finish on some of the motorcycles they received. Create a returns
order for 5 pieces of material 100001.
12. Create the delivery for the returns order.
Post goods receipt for the return of the damaged goods.
13. Create the corresponding credit memo.
Create the credit for the returns order and examine the
accounting posting.
14. Post an incoming payment.
Receive a payment from customer X-Treme Cycles. A deduction
was made for PhP23.00 for excess freight charges and USD27.00 for arriving
3 hours late. We have agreed to absorb the PhP23.00, however the USD27.00
still owes and should be recorded using a notation of 'item in dispute'.
15. Post a vendor invoice using an account assignment
model.
An invoice has been received by the landlord for the
rent to be charged for the month.
The charges are always recorded to the same cost centers
prorated by the sq. footage for each cost center.
| Cost center | Sq footage |
| 11000 | 1000 |
| 12000 | 1200 |
| 15000 | 900 |
16. Generate a payment run for all the outstanding invoices.
The payment run should contain at least 3 invoices, one
of which is blocked from payment. Create an appropriate blocking reason.
17. Perform an assessment.
The cafeteria costs will be assessed based on the number
of employees.
18. Display the profit and loss statement for ABC Motors
International.
Display a financial calendar showing all payment runs
and financial statements. Include a message, which reminds the controller
when the month-end reports are finished and ready for preview.
19. Demonstrate the completion of the partial delivery for your Clark Field order.
20. Perform an actual settlement of the Clark Field rally order.
21. Be prepared to show and discuss the Cross Company Stock Transfer requirement between AMI ltd. and ABC Motors International.
22. Close the month and reconcile the Balance sheets and P & Ls for the two subsidiaries to the prior month.
