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Production & Inventory Cycle - Coggle Diagram
Production & Inventory Cycle
Production Planning and Design:
Design of items to e manufactured, production planning and Control thereof
Capture of all costs involved
Direct Hours worked by production staff
machine hours
Raw materials
Ensure segregation of duties
after accpetance of the CPO or IPO, a CJC or IJC is generated
Commence with Authorization from Production Planning departments with CPO or IPO, from items that reach re-order levels.
As goods move through the production process, each person responsible for specific part, sign of document evidencing goods are transferred to the next
Daily Production report of all jobs in process should be produced and copies to production planning and production/factory manager.
Inventory management:
i - receipt and recording of manufacture/purchased goods, and
ii - Storage of inventories and maintenance records
Ledger accounts updated as cost of WIP and completed manufactured goods are recorded in the manufacturing process
accounting department, has to monitor the production records and ensure that all amounts are recorded in the correct accounts.
a standard costing system is in use, inventory should be recorded at standard cost and the various standard costing variances should be recorded in the accounting records and monitored by management
Four Main Controls:
1 - Production Entries;
2 - Storage and Dispatch of manufactured inventory;
3 - Maintenance of Inventory master files; and
4 - Physical and monitoring controls
Production Processing:
i - Issue of raw material to production process;
ii - movement of goods through production processes and;
iii - Transfer of manufactures goods to finished goods
.
Inputs:
Land
Machinery
Labour
Raw Materials
Outputs
Finished Services
Finished Goods
RMI is a request for issue of raw materials,
prepared by Production planning department or production department or factory manager
all such issues to production must be accounted for as allocated to a particular WIP to a CJC or IJC
all raw materials issued to production, to be listed on daily production report an copy to the raw materials store staff to compare with raw materials inventory records
Movement of Components as Work in Progress
Transfer of manufactured foods to finished goods.
Documents in the Cycle
Job Transfer / Inventory Movement Sheet
Inventory Master files - Raw Mat, WIP, Finished Goods
Customer Job Card / Inventory Job Card
Daily Production report
Raw Material Issues Slip
Completed Production Report
Inventory Production Order
Transfer to Finished Goods Note
Customer Production Order
Picking Slip and DN's
Inventory adjustment form
Inventory Count Sheet
General Controls
Management Control
Internal Audit
Personnel take Leave regularly
Sufficient Stationary Control
Rotation of Duties
Scrutinise all records and docs for extraordinary items
Segregation of Duties
Test Castings and Calculations on all selected items, docs and ledger accounts
Supervision and Review