OIM 452 EXAM 2 QUESTIONS AND
ANSWERS
What is the function of a bill of materials in the production process? - Answer-BOM -
detailed list of all items required for job, process, or production. Used when production
orders are created and used by planning worksheet to show what needs to be
made/purchased.
- Gives detail of materials and quantities for each item
What is the significance of item categories in a BOM? - Answer-Item category identifies
type of material and influences how it is to be used. Common categories include: stock
item, non-stock item, variable size item, text time, document item and intra material.
What is the function of a work center in production? - Answer-Defines where and when
operation must be performed and if there is available capacity to perform these
operations. Work centers can be: machines, people, production lines, groups of
craftsmen, etc.
What is product routing? What is it used for? - Answer-A list of operations that a
company must perform to produce a material. Specifies the sequence in which
operations are to be performed, the work center where they will be performed and the
time needed to complete them.
Explain the relationship between BOM, work center and product routing. - Answer-BOM
identifies components needed to make a material. A work center is where value-added
work is put into those components to make the material. Product routing is a list of
operations needed to be performed at the work center to transform the components into
a material, specifying which work center and how much time is needed to complete
them.
Which material master data are relevant in production? - Answer-MRP - plant specific
execution data
Work scheduling - plant specific planning data
What is the financial impact of the steps in the production process? - Answer-Goods
issue - G/L accounts updated, inventory credited, material accounts debited
, Confirmations - labor debit, cost center credit
Goods receipt - finished goods debit, production order credit
Periodic processing - output settlement variance debit, output settlement credit
What is a stock/requirements list? What information does it provide? - Answer-list
identifies all activities in the system that can potentially impact the quantity of material in
inventory. Provides up-to-date information on current status of inventory on hand,
requirements and receipts. Dynamic list allows you to view changes made to material
status
What is a distribution chain? How is it relevant to the fulfillment process? - Answer-
unique combination of sales org. and dist. channel. maintains pricing conditions and
some material master data
Explain the relationships among the following organizational levels: sales organization,
distribution channel, and sales area. - Answer-sales org. - sale & distribution of
goods/services for geographical area
dist. channel - means by which company delivers those goods/services to customers
division - consolidation of materials/services w/ similar characteristics
sales area - unique combo of the three above that defines which dist. channel a sales
org. uses to sell products associated with particular division.
Ex.) Sales area (UE00 + WH + BI) means the sales of products within the bicycle (BI)
division, for the Eastern US (UE00) sales org. via the wholesale (WH) dist. channel.
Describe, with examples, the data in the three segments of a customer master. -
Answer-1. general data - account number, customer name, address
2. financial/accounting data - reconciliation amount, payment terms
3. sales area data - pricing/currency, billing terms, taxes, priority, partner functions
Describe the steps in the fulfillment process in terms of triggers, data, steps and
outcomes. - Answer-- Triggers: pre-sales activities such as customer action (inquiry,
RFQ) or sales person action (proposal, contract)
- Data: sales order processing (receive purchase order, create sales order), triggered by
customer purchase order. Involves creating sales order which is used to manage and
tack the order as it flows through the process and the order is picked/packed
ANSWERS
What is the function of a bill of materials in the production process? - Answer-BOM -
detailed list of all items required for job, process, or production. Used when production
orders are created and used by planning worksheet to show what needs to be
made/purchased.
- Gives detail of materials and quantities for each item
What is the significance of item categories in a BOM? - Answer-Item category identifies
type of material and influences how it is to be used. Common categories include: stock
item, non-stock item, variable size item, text time, document item and intra material.
What is the function of a work center in production? - Answer-Defines where and when
operation must be performed and if there is available capacity to perform these
operations. Work centers can be: machines, people, production lines, groups of
craftsmen, etc.
What is product routing? What is it used for? - Answer-A list of operations that a
company must perform to produce a material. Specifies the sequence in which
operations are to be performed, the work center where they will be performed and the
time needed to complete them.
Explain the relationship between BOM, work center and product routing. - Answer-BOM
identifies components needed to make a material. A work center is where value-added
work is put into those components to make the material. Product routing is a list of
operations needed to be performed at the work center to transform the components into
a material, specifying which work center and how much time is needed to complete
them.
Which material master data are relevant in production? - Answer-MRP - plant specific
execution data
Work scheduling - plant specific planning data
What is the financial impact of the steps in the production process? - Answer-Goods
issue - G/L accounts updated, inventory credited, material accounts debited
, Confirmations - labor debit, cost center credit
Goods receipt - finished goods debit, production order credit
Periodic processing - output settlement variance debit, output settlement credit
What is a stock/requirements list? What information does it provide? - Answer-list
identifies all activities in the system that can potentially impact the quantity of material in
inventory. Provides up-to-date information on current status of inventory on hand,
requirements and receipts. Dynamic list allows you to view changes made to material
status
What is a distribution chain? How is it relevant to the fulfillment process? - Answer-
unique combination of sales org. and dist. channel. maintains pricing conditions and
some material master data
Explain the relationships among the following organizational levels: sales organization,
distribution channel, and sales area. - Answer-sales org. - sale & distribution of
goods/services for geographical area
dist. channel - means by which company delivers those goods/services to customers
division - consolidation of materials/services w/ similar characteristics
sales area - unique combo of the three above that defines which dist. channel a sales
org. uses to sell products associated with particular division.
Ex.) Sales area (UE00 + WH + BI) means the sales of products within the bicycle (BI)
division, for the Eastern US (UE00) sales org. via the wholesale (WH) dist. channel.
Describe, with examples, the data in the three segments of a customer master. -
Answer-1. general data - account number, customer name, address
2. financial/accounting data - reconciliation amount, payment terms
3. sales area data - pricing/currency, billing terms, taxes, priority, partner functions
Describe the steps in the fulfillment process in terms of triggers, data, steps and
outcomes. - Answer-- Triggers: pre-sales activities such as customer action (inquiry,
RFQ) or sales person action (proposal, contract)
- Data: sales order processing (receive purchase order, create sales order), triggered by
customer purchase order. Involves creating sales order which is used to manage and
tack the order as it flows through the process and the order is picked/packed
