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*CHAPTER 14*  Manager of personnel, planning and staffing-

plans and forecasts an org.’s short-term and


Human Capital Management (HCM) -the process of long-term human resource needs
managing how people are hired, developed, assigned,  Manager of personnel appraisal and
motivated and retained, presumes that employees development- assists line manager in
reflect strategic investment rather than administrative assessing how well employees are performing
cost.
*Processing Inputs*
 HCM follows historically from the concept of
“personnel management” and then “human  Selecting employees- may be initiated in
resource management” one of two ways:
1. Departmental supervisors and
Human Resource Management (HRM) –recognized managers outside the HR dept.
the importance of personnel in achieving organization may initiate the process to satisfy
objectives but viewed personnel as something that their immediate hiring needs.
could be controlled. 2. Selection process may be started
by the system automatically
Human Resource Management (HRM) Process- is an
 Evaluating employees- Departmental
interacting structure of people, equipment, methods
supervisors and managers outside the HR
and controls that create information flows to support:
dept. usually initiate actions affecting
 Repetitive work routines of HR department employees via supervisor review screen.
 Support decision needs of those who manage  Terminating employees- closes an
HR department employment process loop

By doing the following: *Key Data Tables*

1. Capturing, recording and storing data 1. Employee/payroll master data- central


concerning HR activities repository of data about people who work for
2. Generating a variety of HR forms and an organization
documents 2. Labor-force planning data- maintains data
3. Preparing management reports concerning an org.’s short-term and long-term
4. Preparing government reports staffing requirement
3. Skills inventory data- catalog’s each
Payroll Process -is an interacting structure of people, employee’s set of relative skills. As employees
equipment, methods and controls that create gain new experience by on-the-job training,
information flows to support repetitive work routines the skills data is updated
of payroll department.

-it maintains records containing data


for payroll taxes and fringe benefits, attendance
reporting, time keeping, and paying employees.

*ADVANTAGES FOR ALLOWING TWO PROCESSES


(HRM & PAYROLL PROCESS) TO SHARE COMMON
DATA*

1. Creating a single source for obtaining HR info


2. Providing for faster data access
3. Minimizing data redundancy
4. Ensuring data integrity and consistency
5. Facilitating data maintenance
6. Improving data accuracy

*Technology Application- describes self-service


system*

HR MANAGERS

 Manager of safety, health services and


benefits- ensures workers’ health and safety
 Manager of employee and industrial
relations- handles employee complaints
 Manager of HR system- ensures that info
need of personnel managers and staff workers
are satisfied
*TYPES OF PAYROLL FRAUDS*

1. Ghost employees- employees who don’t


actually work for the company but receive
paychecks.
2. Falsified hours and salary- employees
exaggerate the time that they work or are able
to increase their salary in their employee data.
3. Commission schemes- employees falsify the
sales on which commissions are based or
increase the commission rate in their
employee data.
4. False workers’ compensation claims-
employees fake injuries to collect disability
payments.

*PROCEDURES TO PREVENT PAYROLL FRAUDS*

1. Segregation of duties
2. Direct deposit of payroll
3. Check for duplicate names, address, and social
*TWO DATA FLOWS THAT ENTER PAYROLL PROCESS security numbers in the employee data
FROM DEPARTMENTAL MANAGERS AND 4. Compare actual to budgeted payroll
SUPERVISORS*

1. Attendance time records- shows time periods


that employees are in attendance at the job *OPERATIONS PROCESS CONTROL GOALS*
site and available for work.
 Effectiveness of operations:
2. Job time records- reflect the start and stop
1. Provide employees with timely
time on specific jobs.
paychecks
2. Provide timely filing of tax returns and
other reports to government agencies
3. Comply with the requirements of
payroll tax laws and regulations
 Efficient employment of resources
 Resource security

*INFORMATION PROCESS CONTROL GOALS*

 Input Validity
 Input Completeness
 Input Accuracy
Electronic time management system- computer-
based system that captures, stores, and reports time.  Update Completeness
 Update Accuracy
Payroll direct deposit system- employee’s net pay is
sent electronically through the banking system and *RECOMMENDED CONTROL PLANS*
deposited directly to the employee’s bank account. 1. Enter time data close to the originating source
Payroll service bureau- a company that specializes in 2. Approve attendance time data and job time
rendering payroll services to client companies for a data
fee. 3. Reconcile attendance time data and job time
data
*Payroll system does the following: 4. Independent paycheck distribution
5. Use a payroll clearing account- separate bank
1. Update the employee/payroll master data and account used solely for payroll purposes.
distributes labor cost 6. Use an imprest payroll bank account- the
2. Prepares the employee paychecks and sends fund is reimbursed for the exact amount of
the payments to bank for deposit into the disbursements made from the fund
employee accounts.
3. Prepares various outputs, including the
employee pay stubs that are posted to the HR
portal
4. Sends the payroll register to the accounts
payable department where a disbursement
voucher is prepared.
*CHAPTER 15* Objectives of CAD/CAE:

*FOUR KEY COMPONENTS OF EFFECTIVE 1. Improve design productivity


INTEGRATED PRODUCTION PROCESSES* 2. Reduce design lead time
3. Enhance design quality
1. Product Innovation- providing a new product 4. Facilitate access to and storage of
or improving the existing product product designs
2. Product Process Innovation- there is a change 5. Make the design of multiple products
in the production process. more efficient by eliminating redundant
 Throughput time- the time it takes design effort
from when authorization is made for 6. Execute design changes almost
goods to be produced to when the immediately through the use of
goods are completed. electronic messaging to notify the shop
 Push Manufacturing- sales forecast floor.
drives the production plan.
 Pull Manufacturing- production is *CAD/CAE process results in several data stores of
initiated as individual sales order are info. that are used later in the IPP:
received.
3. Supply Chain Management (SCM)-  Bill of materials- listing of all the
combination of processes and procedures subassemblies, parts and raw
used to ensure the delivery of goods and materials that go into a parent
services to customers at the lowest cost while assembly showing the quantity of
providing the highest value to customers. each that is required to make an
 Available to promise planning- assembly.
accumulation of data on current  Parts master- or raw material
inventories, sales commitments and inventory master lists the detailed
planned production to determine specifications for each raw materials
whether the production of finished item.
goods will be sufficient to commit  Routing master- specifies the
additional sales orders. operation necessary to complete a
 Capability to promise planning- subassembly or finished good and the
accumulation of data on current sequence of these operations.
inventories, sales commitments, o Computer-aided process
planned production and excess planning (CAPP)- often used
production capacity that could be in developing the routing
quickly converted to production of the master of new products.
desired finished goods necessary to  Work center master- describe each
fulfil a sales order request. work center available for producing
4. Management Accounting System- consists of products including information.
o Workstation- the assigned
internal accounting that an organization uses
location where a worker
to measure and evaluate its processes for the performs his or her job.
management of the organization. o Work center- a group of
 Activity-based costing- a costing similar workstations.
approach where detailed costs to
perform activities throughout the
value chain are computed and can be
Step 2: Generate master production schedule
managed or assigned to cost objects,
including products. Master Production Schedule (MPS)- a statement of
specific production goals developed from forecasts of
Integrated Production Process- process actually
demand, actual sales order, and inventory information
begins at the start of the value chain:

Step 1: Design of the product and production  Global inventory management


approach- inventory needs and
processes- design process is automated through
production capabilities are matched
the use of Computer-aided design (CAD) and
Computer-aided engineering (CAE)- an application across the entire global enterprise.
technology that automates the product design Step 3: Determine needs for materials
process, including but not limited to the functions
of geometric modelling, materials stress and strain Materials requirement planning- a process that uses
analysis, drafting, storing product specifications bills of materials, raw materials and work in process
and mechanical simulation of a product’s inventory status data, open order data and the master
performance. production schedule to calculate a time-phased order
requirements schedule for materials and
subassemblies.
 Bills of materials (BOM)
 Parts master
 Raw materials and work in process
inventory status
 Open purchase order

Step 4: Develop detailed production instructions

Capacity requirements planning (CRP)- uses the info


from master production schedule and time-phased
order requirements schedule to develop detailed
machine and labir utilization schedules.

Manufacturing orders (MO)- convey authority for the


manufacture of a specified product or subassembly in
a specified quantity and describe the material, labor
and machine requirements for the job.

 Move ticket- authorizes and records


movement of a job from one work
center to another.

Manufacturing resource planning (MRP)- and


integrated decision support system for planning,
executing and controlling manufacturing operations.

Step 5: Manufacturing (Production work centers)

Flexible manufacturing systems (FMS)- used to


control the actual production of the goods.

 Computer-aided manufacturing
(CAM)- application of computer and
communications technology to
improve productivity by linking
computer numerical control machines,
monitoring production and providing
automatic feedback to control
operations

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