What is the purpose of a reporting point confirmation in repetitive manufacturing? Note: There are 2 Correct answers to this question?

What is the purpose of a reporting point confirmation in repetitive manufacturing? Note: There are 2 Correct answers to this question?
A . To determine the work in progress along the production line
B . To provide timely updates of inventory management for the staged components
C . To reduce the total production lead time for a long production line
D . To stage different components for a production line simultaneously

View Answer

Answer: A, B

Explanation:

A reporting point confirmation is a function that allows you to backflush the material components and activities that have been consumed and performed at a specific operation in a repetitive manufacturing process. It also reduces the dependent requirements for the planned orders. You can use reporting point confirmation for the following purposes:

To determine the work in progress (WIP) along the production line, by posting the quantity that is on the production line at each reporting point. This helps you to calculate the volume and value of unfinished products.

To provide timely updates of inventory management for the staged components, by recording the withdrawal of components at a time that is close to the time of the operation in which they are used. This helps you to avoid discrepancies between the actual and planned consumption of materials.

Reference: Reporting Point Confirmation, Repetitive Manufacturing Confirmation