Manufacturing Requisition

Manufacturing Requisition Inventory Management Raw Material Sourcing Production Process Manufacturing Operations
A Manufacturing Requisition acts as an internal document within a manufacturing unit, outlining the specific raw materials, parts, and other resources required to produce a particular product, and facilitates inventory management.
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What is a Manufacturing Requisition?

A Manufacturing Requisition is a crucial internal document in the manufacturing process. It specifies the raw materials, components, and sometimes even labor that are required to complete the production of a particular product or batch of products. This document is often used to ensure that all necessary resources are available for the manufacturing process, and it facilitates effective inventory management by bridging communication between the warehouse and production departments.

Detailed Definition

A Manufacturing Requisition typically includes information such as:

  • Description of Materials: Detailed information about the materials required.
  • Quantity Needed: The specific quantities of each material.
  • Date Needed: The date by which materials are required.
  • Authorized Personnel: Identifying the individual or team responsible for overseeing the requisition and usage of the materials.
  • Requisition Number: A unique identifier for tracking purposes.

Examples

  1. Automobile Manufacturing Plant:

    • Requisition Details: A requisition might list steel sheets, glass, rubber components, and electronic parts required for manufacturing a batch of cars.
    • Quantity & Date: It may specify that 100 sheets of steel are needed by the 15th of the month for the assembly line to work seamlessly.

  2. Electronics Assembly Unit:

    • Requisition Details: Components like resistors, capacitors, soldering materials, and microchips might be listed.
    • Quantity & Date: 500 resistors and 200 microchips to be supplied to the production department within a week.

  3. Garment Manufacturing:

    • Requisition Details: Different types of fabrics, threads, buttons, and zippers.
    • Quantity & Date: 1,000 meters of cotton fabric and 5,000 buttons needed by the end of the week to begin the next production cycle.

Frequently Asked Questions (FAQs)

1. What is the primary purpose of a Manufacturing Requisition?

The primary purpose is to ensure that all required materials are available for production, facilitating smooth operation and efficient inventory management.

2. Who typically generates the Manufacturing Requisition?

It is generally prepared by the production planning or inventory control department and approved by relevant supervisors or managers.

3. How does a Manufacturing Requisition differ from a Production Order?

A Manufacturing Requisition focuses on the materials required, while a Production Order provides a comprehensive plan of what, when, and how to manufacture specific products.

4. Can a Manufacturing Requisition request labor resources?

Yes, it can include labor requirements if specific skilled labor is needed for the production process.

5. What happens if there are discrepancies in the materials received versus the requisition?

Discrepancies are often reconciled through inventory audits and coordination between departments to resolve any shortages or inconsistencies promptly.

  • Production Order: A document providing detailed instructions on what needs to be produced, including the quantity, timeline, and specific processes to be followed.
  • Bill of Materials (BOM): A comprehensive list of raw materials, components, and assemblies required to construct, manufacture, or repair a product or service.

Online Resources

Suggested Books for Further Study

  • “Inventory Management and Production Planning and Scheduling” by Edward A. Silver, David F. Pyke, and Rein Peterson
  • “Manufacturing Planning and Control for Supply Chain Management” by F. Robert Jacobs, William L. Berry, D. Clay Whybark, and Thomas E. Vollmann
  • “Operations Management for Competitive Advantage” by Richard B. Chase, Nicholas J. Aquilano, and F. Robert Jacobs

Accounting Basics: “Manufacturing Requisition” Fundamentals Quiz

### What is the primary function of a manufacturing requisition? - [x] To ensure availability of necessary materials for production - [ ] To finalize the sale of finished goods - [ ] To allocate finished products to the warehouse - [ ] To define the overall production strategy > **Explanation:** A manufacturing requisition's primary function is to ensure that all necessary materials are available for production, allowing for a smooth manufacturing process. ### What key information is included in a manufacturing requisition? - [x] Description of materials, quantity needed, date needed - [ ] Marketing strategies, customer details, payment terms - [ ] Shipment destination, export duties, compliance certificates - [ ] Sales forecast, market penetration strategies, competitor analysis > **Explanation:** A manufacturing requisition typically includes the description of materials, the quantity needed, and the date by which the materials are required. ### Who is normally responsible for preparing a manufacturing requisition? - [x] Production planning or inventory control department - [ ] Sales and marketing department - [ ] Customer service department - [ ] Human resources department > **Explanation:** The production planning or inventory control department usually prepares the manufacturing requisition, ensuring that inventory levels align with production requirements. ### What is one key difference between a manufacturing requisition and a production order? - [ ] Both documents serve the same function. - [ ] A manufacturing requisition dictates marketing strategies. - [x] A production order provides detailed instructions for manufacturing, while a requisition focuses on needed materials. - [ ] A production order is only relevant to service industries. > **Explanation:** A production order details the manufacturing process, while a manufacturing requisition focuses on the materials needed for production. ### Can a manufacturing requisition include labor requirements? - [x] Yes, if specific skilled labor is necessary for production - [ ] No, labor requirements are not included - [ ] Yes, but only administrative labor - [ ] Yes, but only temporary labor needs > **Explanation:** A manufacturing requisition can include labor requirements, particularly if specific skilled labor is needed for the production process. ### What happens if there are discrepancies in the materials received versus the requisition? - [ ] Production is automatically delayed - [ ] The requisition is discarded - [x] Discrepancies are reconciled through inventory audits - [ ] Extra materials are returned to suppliers > **Explanation:** Discrepancies between received materials and the requisition are typically reconciled through inventory audits and department coordination to resolve issues. ### What unique identifier is used for tracking a manufacturing requisition? - [ ] Purchase order number - [ ] Invoice number - [x] Requisition number - [ ] Tracking number > **Explanation:** A unique requisition number is used for tracking purposes, ensuring easy identification and monitoring of the manufacturing requisition. ### In a garment manufacturing unit, what materials might a requisition list? - [ ] Marketing brochures - [ ] Office supplies - [ ] Product warranty documents - [x] Fabrics, threads, buttons, and zippers > **Explanation:** In garment manufacturing, a requisition would list materials such as different types of fabrics, threads, buttons, and zippers as required for the production process. ### Which department generally approves a manufacturing requisition? - [ ] Customer service department - [ ] Human resources department - [x] Relevant supervisors or managers in the production department - [ ] External auditors > **Explanation:** Manufacturing requisitions are typically approved by supervisors or managers in the production department to ensure appropriate resource allocation and authority. ### How does a manufacturing requisition contribute to inventory management? - [x] It helps in tracking and managing the raw material inventory levels efficiently. - [ ] It tracks the sale of finished goods. - [ ] It forecasts market demand for finished products. - [ ] It monitors competitor product lines. > **Explanation:** A manufacturing requisition helps in tracking and managing raw material inventory levels efficiently, ensuring that necessary inputs are available for uninterrupted production operations.

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Tuesday, August 6, 2024
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Manufacturing Profit/Loss (Production Profit/Loss)
Direct Materials Inventory January 1, 1
Just-in-Time (JIT) January 1, 1
Manufacturing Inventory January 1, 1
Production Order January 1, 1
Work in Progress (WIP) January 1, 1

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