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PRODUCTION AND INVENTORY CYCLE - Coggle Diagram
PRODUCTION AND INVENTORY CYCLE
FUNCTIONS
production processing
inventory management
Production planning and design
INVENTORY MANAGEMENT
storage and dispatch of manufactured inventory eg. receipts to account for goods, physical protection of inventory, periodic inventory counts
maintenance of inventory and master files eg monitor deliveries, damaged goods for scrapping
production entries supported by relevant documents eg. RMI, CJC/IJC , GTN
physical and monitoring controls eg. perpetual inventory system, gross profit analysis
CONTROL OBJECTIVES / INTERNAL CONTROLS
accuracy
inventory accurately recorded at the correct quantity and prices
existence
inventory should be safeguarded against theft and damage
completeness and validity
inventory only leaves the storeroom based on properly authorised documentation
DOCUMENTS
job transfer / inventory transfer sheet
inventory master files
customer job card / inventory job card
daily production report
Raw material issue slip
completed production report
Inventory Production Order
transfer to finished goods note
Customer Production Order
picking slip and delivery notes
inventory count sheet
inventory adjustment form
EXAMPLE OF WEAKNESS AND RISK
weakness - inventory leaves the storeroom without a delivery note
risk - inventory could be stolen as there is no record of it leaving