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The final area of plant operation is plant site services. Input received and output provided cover such functions as energy supply and utilities management, security, environmental control, grounds maintenance, and computer and communications installations.
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Physical distribution can be viewed as having two functional areas (Fig. 5.6).
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FIGURE 5.6 Physical distribution.
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This involves planning and control of the external flow of parts and products through warehouses, distribution centers, other manufacturing locations, and points of sale. These functions may also include allocating demand, planning finished goods inventory, and scheduling vehicles. Some industries require another major set of functions that relate to logistics reports. This includes spare parts, maintenance, training, and technical documentation. Input and output are exchanged with marketing and physical distribution operations. The information handling requirements of physical distribution planning are usually medium to heavy, especially if multiple distribution centers exist.
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The physical distribution operations area includes receiving, storing, and shipping finished goods at the distribution center or warehouse. Receipts arrive from plants or other suppliers, and shipments are made to customers and dealers. Other functions can include scheduling and dispatching vehicles, processing returned goods, and servicing warranties and repairs. Input is received from plant site product shipping, procurement, physical distribution planning, and customer order servicing. Output includes acknowledgments to plant site product shipping and procurement, as well as data for updates to physical distribution planning and customer order servicing.
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Five
FIGURE 5.7
Business management.
Business Management
Within the enterprise model, a business management function may be composed of seven areas (Fig. 5.7).
Financial Planning and Management
In financial planning and management, financial resource plans are developed and enterprise goals are established. Among the functions are planning costs, budgets, revenues, expenses, cash flow, and investments. Input includes financial goals and objectives established by management as well as summarized financial data received from all areas of the enterprise. Output includes financial reports to stockholders, departmental budgets, and general ledger accounting.
5.3.6.2 Accounts Payable
Accounts payable primarily involves paying vendors. Input includes vendor invoices and goods-received reports. The output includes discount calculations to vendors and payment checks. This last function
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lends itself to the use of electronic data interchange to electronically transfer funds to vendors.
Billing and Accounts Receivable
The billing and accounts receivable area prepares invoices to customers and manages customer account collections. Input to this area consists of product shipping data and cash received. Output includes customer invoices, delinquent account reports, and credit ratings. Transferring funds electronically through EDI can simplify this area significantly.
Cost Accounting
Cost accounting activity supports product pricing and financial planning by establishing product costs. These costs can include those of materials, direct and indirect labor, fixed production elements (machinery and equipment), variable production elements (electricity, fuels, or chemicals), and overhead. Other functions can include establishing standard costs, reporting variances to standards, costing job orders, and determining accrued costs. Cost accounting input is acquired primarily from plan operations. Output is sent to financial management and planning.
Payroll
The payroll area computes payments, taxes, and other deductions for employees. It also includes reporting and paying employee tax withholdings to government agencies. Input includes time and attendance information and production data from plant operations. Output includes payroll checks, labor distribution, and government reports and payments.
Enterprise Planning and Business Management
Enterprise planning and business management functions include establishing goals and strategies for marketing, finance, engineering and research, plant automation, sensors and control systems, and information systems. Input and output are exchanged through sensors and control systems with virtually every other area of the enterprise.
Enterprise Services
Enterprise services include such support services as office personnel, management information services, personnel resources, and public relations. These services require extensive administrative support tools, such as text processing, decision support, and graphic tools. But since input and output will be exchanged throughout the entire enterprise, it is imperative that these tools be integrated with the enterprise s other systems.
246 5.4
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