Production

Production

1. Objectives

   • Requisitions of RM and receiving from warehouse
     • control costs during manufacture
       • account for items produced and transfer to warehouse

2. Risks

   • Theft and Unauthorized requisitioning of RM
     • Req or Issue of incorrect materials: losses, wastage and delays
       • Failure to budget costs, low SP, losses
         • failure to monitor actual expenditure, identify variances
           • Faliure to control transfer of FG to store (stolen damaged lost)

3. CONTROLS

   • Costing personnel create costing schedule of all expected costs (labour, materials used, allocation OH)
     • Schedules, Job cards sequenced, dates and approved*, source document for purchase req
       • all calculations should be checked by a second clerk (hours worked, costs)
         • Mmgnt review Performance reports, wastage and qty produced, damaged. Evaluate inefficiencies and wastage.
           • Actual compared to budgeted costs and variances evaluated
       • Sequence check and confirm job card c/ref w/ transfer FG note
         • Missing job cards are for jobs still in production