BOP Program Statement 8510.03 § 7

a. The Factory Manager is responsible for initiating new jobs

in Millennium.

— Jobs are normally created by confirming a plan

generated by MRP and releasing the job.

— It is not necessary to print the job header since this

data is retained in the system.

— The MRP data must be reviewed for appropriateness.

However, the Associate Warden and/or SOI do not have to approve

jobs created via MRP.

b. Materials are issued to jobs based on the pick list

generated and signed by the factory foreman.

— The Factory Manager will make any changes in quantity

or substitute items.

— The Warehouse will fill and deliver materials based on

the computer generated pick list.

— The factory foreman is responsible for ensuring the

exact quantities requested are issued.

c. As units on a job are completed and moved from operation to

operation, the factory foreman will add and post job

transactions. Adding and posting these transactions will update

the job record for the job run hours and activity costs.

— Sub-assembly and/or finished goods records are to be

updated upon completing the final operation.

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Generally, sub-assembly and finished goods costs are

calculated at the standard cost as maintained in the material

master. Variances between actual, standard, and planned costs

remain on the production order until the job is corrected or

settled.

— Costs associated with sub-assemblies and finished goods

relating to configurable materials and items that are

unique to the customer order are to be calculated at

planned costs.

— Activity costs are based upon standard hours.

— Tracking and posting of actual direct hours to

individual jobs is not required.

d. The Business Manager must perform job settlement(s) in

Millennium at least weekly, but prior to the end of the month.

— A list of production orders that are almost ready to be

settled can be obtained by generating a C088 (actual

settlement in test mode).

— Special care must be taken at month-end to ensure all

jobs completed in the last few days are reviewed and

settled within that month.

— Each production order must be settled with a DLB

(status of delivered) or TECO (technically complete.)

Before settlement is accomplished, the Factory Manager must

review the Job Cost Analysis Report and make any required

corrections and usage explanation.

The Business Manager/Plant Controller must explain any activity

cost variances.

The Factory Manager must explain any variances in material

usage.

The Factory Manager must close production orders placing them

in closed (CLSD) status after settlement and period end closing

transactions have been accomplished. However, any errors

preventing the order’s closure must be resolved.

PS 8510.03

7/31/2003

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