Cost Estimate and Accounting in ERP
February 12, 2025
In previous articles in this module, we have discussed how the BPO sector has evolved and some future directions for BPO companies in Asia. This article looks at a little known aspect of the BPO phenomenon i.e. the fact that the very nature of the process work has been transformed because of the emergence of […]
Introduction: The Future of Work Every morning in Africa, a Lion wakes up. It knows that it has to run faster than the Gazelle if it has to avoid going hungry. Every morning there, a Gazelle wakes up. It knows it has to run faster than the Lion if it has to survive the day. […]
DMADV is a six sigma methodology. It is used to design new processes or products where none exist and get it right in the first time. This is a part of the DFSS “Design For Six Sigma” concepts which place focus on creating processes right the first time. The focus of DMADV is on quantifying […]
In previous articles, we looked at the humungous benefits that the BPO phenomenon brings to the economies of the host and the target nations. Mainly, we focused on how cost savings for the companies outsourcing their back office work and increased revenues for the companies doing the outsourced work have been actualized leading to a […]
Introduction Business intelligence is an important to ensure the following: Various decision-makers and analyst have a direct and un-interrupted access to data. The data been used across the organization should be non-disputable. Decision makers spend their time analyzing the data rather than collecting and formatting them. Decision makers are able to focus their energy in […]
Production Order Subcontracting - In the age of production outsourcing and the organizational focus on their core competency, subcontracting of production orders is assuming greater importance. In addition to the business functionality necessary for producing goods in house, sub contraction operations necessitates some additional business process such as generation of sub contracting purchase order.
Sub contracting is normally planned, but sometime may be unplanned to meet exigency of a situation, such as breakdown of a plant. Normally, an ERP system treats subcontracting similar to procurement of a service.
A typical flow chart of subcontracting production order is as follows:
Procedure for subcontracting production orders: A few details of the process (in addition to normal procedure of production order control), as shown in the flow chart, is given below:
Materials Issue - When a production order is carried out, required materials from warehouses is needed to be issued. There are various ways of releasing materials for a production order, as detailed below.
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