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Production and Inventory Cycle - Coggle Diagram
Production and Inventory Cycle
Production planning and design
Stock re-order based on level being met. Authorise production order by factory manager by signature
Generate CJC or IJC by production department. All costs involved in production: raw materials, direct hours worked by production staff, machine hours
Authorisation by the production planning department of pre-numbered CPO or IPO
Daily production report detailing progress for the day of production and finished goods; flag and analyse unusual use of materials and labour
Inventory management
Update cost of WIP and Finished Goods
Ensure accuracy of recording amounts
Record direct, indirect and manufacturing overheads
The inventory management system is made up of four main controls, namely:
Production entries must be supported by the relevant documents; Storage and dispatch of manufactured inventory;Maintenance of inventory master files; Physical and monitoring controls.
Production processing
Raw materials issues slip, pre-numbered. For production run, prepared by production department, documented on the CJC or IJC. Add to daily production report
Movement of inventory - WIP: capture on job card. Make note of time spent using clocking system. Compare recorded times to hours work. Account for differences. Correct by production manager
Foreman inspects each stage of production. Signature for authorisation.
Quality control of finished goods at the end of the production process. Designed to detect defective products.
Accept goods by completed production report with signature
Control objectives and internal control
Safeguarding
completeness, existence
Issue raw materials to production
completeness, validity
Recording
completeness, accuracy