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Unit 3: Summary Production and Inventory Cycle, Unit 3 Summary 221141192…
Unit 3: Summary
Production and Inventory Cycle
3 functions
Production and planning design
Start of production process
Start with CPO or IPO
After CPO, the CJC or IJC
GTN in every production stage
Production processing
Input
Processes
Outputs
RMI slips
WIP in every sub-process
Quality control inspections of finished goods
Inventory management
4 main controls
Supporting documents of production entries
Product storage and dispatch
Maintenance of inventory master file
Physical and monitoring controls
Control objectives: Objectives that the company wants to achieve with regards to every transaction
Internal controls: Control actions that the company implements to in order to achieve their objectives
Weaknesses : The absence of controls or poor implemented controls. Example- issuing raw materials to production without an issue slip or approval
Risks: Things that could wrong as a result of a weakness in the process. Example - Producing unplanned products and hence wasting production resources.
Unit 3 Summary
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