Fabrikam, Inc. 's Cost Tracking SystemBackground: Fabrikam wants to automate the way it tracks lumber manufacturing costs, from the time the lumber is purchased until it is suld. These costs include the purchase price of the raw material, along with machine and labor costs accured in processing the lumber. Business Overview: Fabrikam buis green board lumber from lumber mills, then receives, moves, stacks, dries, planes, rips, and chops the lumber. After each process, the resulting pieces of lumber are given new inventory part numbers and can be sold. Buying: Fabrikam buys all lumber directly from from lumber mills. Purchase orders are created that indicate: * the lumber mill address. * the Fabrikam ship to address, * the Fabrikam bill to address, * the date of the purchase order, and * the employee placing the purchase order. A purchase order must be created prior to recieving any lumber. Apurchase order includes one or more purchase order lines. Each purchase order line indicates: * the total number of board feet, * the species of lumber being purchased, and * an expiration date of the line. Job Overview: Overview: Once lumber arrives at a Fabrikam recieving dock, the lumber has many jobs performed on it. Each job performs one process on the lumber. All jobs note: * the type of process performed, * the part number of the lumber going into the job, * the date of the job, and * the part number of the lumber caming out of the job. Job Costs: Each time the lumber has a job performed on it, the lumber accrues many costs that stay with it until it is sold. Recieving yard workers note the purchase price of the lumber on a receiving ticket line when the lumber arrives. Each job adds additional machine run time and labor costs, both of which are tracked in detail. All jobs require labor, but not all jobs require machines. Job cost details note: * the employees and any machines used in the job, * the minutes used for each employee and any machines used in the job, and * the per-minute rate for each employee and any machines used in the job. Job Example: The following describes an actual job. Job number 14566 performs a stacking process on part number G9684RO, which becomes part number S9684RO after the job is completed. The following resources are used on the job: * Joe spends five hours at rate of $13.00 per hour * Bob spends two hours at a rate of $24.00 per hour * Forklift number one is used for two hours at a rate of $.60 per hour * Stacker Machine number five is used for five hours at a rate of $.25 per hour. Processes: Currently Fabrikam has recieving, moving, stacking, drying, planing, ripping, and chopping processes. From time to time, Fabrikam adds or drops processes, depending on market demand for different product types. All processes are identified by: * unique process code, * description, * purpose,and * status of the process, indicating whether it is an active or inactive process. Many locations within the Fabrikam plant recive purchased lumber. Upon receipt, a receiving ticket is created that notes: * the date of receipt. * the person receiving. * the lumber mill received from. * the Fabrikam location received to, and * the Fabrikam purchase order number that the lumber was ordered from. Lumber cannot be recieved unless a purchase order for the lumber exists. Workers might recieve many shipments before a purchase order is filled. Also, a recieving ticket includes one line per species of lumber that notes the total board feet and the total price for each species. Receiving lumber accures costs on a receiving ticket line. Recieving costs consits of the employees used and the labor costs incurred to create the receiving ticket. No machine costs or run-time costs are incurred in the process of receiving lumber Other processes begin with lumber begin moved out of inventory and into the process. All processes end with lumber begin moved out of the process and back into inventory, so moving lumber is considered a process in itself. Moving any lumber records the location that the lumber is moved from and the locations that the lumber is moved to. Moving lumber accures costs on a receiving ticket line. Costs consist of the machines, run-time costs, employees, and the labor costs involved in the moving process. Machines: Fabrikam uses many machines in processing lamber. Many of the machines are multifunctional and can be used for different processes. The cost of using a machine can differ depending on the process for which itis used. All run-costs are allocated on a per-minute basis to the jobs in which the machines are used. Fabrikam has calculated the cost associated with each minute of use for each of the machines at Fabrikam when used for a specific processes. Each machine is also described by: * a unique machine number, * manufacturer, * purchase date, * serial number, * model number * description,and * status, indicating whether the machine is avialable for use. Labor: Fabrikam has more than 1,000 employees. When employees participate in a job, their pay rate is convicted to a per-minute rate and allocated as a cost to the job. Each employee is also described by: * a unique employee number, * full name, * address,telephone number, * date of hire,and * a status to indicate whether they are active, retired, fired, or temporary unavialable. The team has determined that there are 8 critical tables: Purchase Order, Purchase Order Line, Job, Job Machine Cost, Job Employee Cost, Process, Machine Process Cost Machine. There are some other tables that will need to be created but are not as critical to the process. They are Employee, Lumber Mill, Bill to Address, and Ship to Address. |