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Production and Inventory Cycle - Coggle Diagram
Production and Inventory Cycle
Production Planning and Design
Design of items to be manufactured, production planning and control thereof.
Customer Production Order (CPO)
Inventory Production Order (IPO)
Customer job card (CJC) must include raw materials,hours worked machine hours
A daily production report of all jobs in process should be produced
Production Processing
authorisation should be done via a signature on the relevant on the job card.
Discrepancy should be queried and corrected by the production manager.
At the end of each day, the total time recorded on job cards should be reconciled to the total hours worked by production staff
Raw materials issued to production should be listed on the daily production report
Issue of raw materials to production process; Movement of goods through production process; Transfer of manufactured goods to finished goods
Time spent on each stage of production, by production employees or in machine time, should be captured onto the relevant job card
Raw materials issues slip (RMI)
Inventory management
Planning for a physical inventory count
Physical and monitoring controls
Maintenance of inventory master files
Storage and dispatch of manufactured inventory;
Production entries must be supported by the relevant documents;
Storage of inventory and maintenance of records
Internal controls and Objectives:
Safeguarding: Completeness, Existence Inventory should be safeguarded against theft and damage
Recording:
Completeness, Accuracy All inventory is accurately recorded at the correct quantity and prices
Issue of raw materials to production: Completeness, Validity
Inventory only leaves the storeroom based on properly authorised documentation: