Inspection Process

So Hang Mak Sarah CruzMetin Oruc Eugenia Vadhera Mario Hightower Chris Martinez

Flow ChartInspector

Enter inspection results

At inspectionstation

At the Inspection Station Purpose: To

inspect all of the finished goods before the goods are sold in the marketplace.

Enter Inspection Results (Online Keying) After the goods are

inspected, the inspector enters the inspection results (like how many goods have defects and what kind of defects) by an online output device such as personal computer.

Flow ChartInspector

Enter inspection results

At inspectionstation

Update File

File is Updated (Computer Processing)• Computer

information storage is updated so that the information about the finished goods is accurate and reliable.

Flow ChartInspector

Enter inspection results

At inspectionstation

Update File Notice of rejected orders

Notice of Rejected Orders (Document) After the file is

updated, a document or a report is printed. This document would include a product list of items with defects. These items should go back to production for rework or scrap.

Flow ChartInspector

Enter inspection results

At inspectionstation

Update File Notice of rejected orders

Open production orders file

Open production orders file (Magnetic Disk) The production

orders file is opened for updating the data.

Flow ChartOpen production orders fileFinal move

ticket

Final Move Ticket (Document) After the sales order is

approved, the next step is to determine if there is sufficient inventory available to fill the orders. When the inventory available has been determined, a move ticket/ picking ticket authorizes the inventory control function to release merchandise for shipping.

Flow ChartOpen production orders fileFinal move

ticket

Enter dataAt Warehouse Or shipping

At Warehouse or Shipping (Computer Processing) The job of the

warehouse or shipping is to fill customer orders accurately and efficiently and to safeguard inventory.

Enter Data (Online Keying) The data of the move

ticket is entered into the computer, so that the warehouse or shipping department can accurately pick and pack the goods that the customer orders and sends the goods to the customers on time.

Flow ChartOpen production orders fileFinal move

ticket

Enter dataAt Warehouse Or shipping

Update Files and Print status report

Updates files and print status report (Computer Processing) While the warehouse

or shipping ships the goods, the inventory would be updated and the status report printed. In addition, this information also flows to finished goods inventory file and work in process file.

Flow ChartOpen production orders fileFinal move

ticket

Enter dataAt Warehouse Or shipping

Update Files and Print status report

Finished-goods inventory file

Work-in-process inventory file

Finished Goods Inventory File (Magnetic Disk) This file includes the

goods, item number, description, standard unit cost, and date manufactured. The decreasing (sales, defects) or increasing inventory (returns) would be updated automatically.

Work in Process Inventory File (Magnetic Disk) The movement of

inventory will be sent to the work in process inventory file and is updated. At the same time, any information that is changed in the work in process inventory file would be sent to the finished goods inventory file.

Flow Chart

Enter dataAt Warehouse Or shipping

Update Files and Print status report

Work-in-process inventory file

Finished-goods inventory file

Updated open production order file

Updated open production order file (Magnetic Disk) The total number

of goods order is updated in the production file. The sales department enters sales forecasts and customer special order information.

Flow Chart

Enter dataAt Warehouse Or shipping

Update Files and Print status report

Work-in-process inventory file

Finished-goods inventory file

Updated open production order file

Report of completed production orders

Report of Completed Production Orders (Document) All of the

information that is updated is printed and sent to the production planning department.

Flow Chart

Enter dataAt Warehouse Or shipping

Update Files and Print status report

Work-in-process inventory file

Finished-goods inventory file

Updated open production order file

Report of completed production orders

To production planning

To Production Planning (Terminal) The production-

planning department uses the report of completed production order to plan the master production schedule.

Flow Chart

Enter dataAt Warehouse Or shipping

Update Files and Print status report

Work-in-process inventory file

Finished-goods inventory file

Updated open production order file

Report of completed production orders

To production planning

Journal voucher

Journal Voucher (Document) Debit Credit Material A/P WIP Wages Pay Factory OH Material

Wages PayableUtilitiesAccum. Depre.

WIP Factory OH Finished Goods WIP COGS Factory OH COGS Finished

Goods

Flow Chart

Enter dataAt Warehouse Or shipping

Update Files and Print status report

Work-in-process inventory file

Finished-goods inventory file

Updated open production order file

Report of completed production orders

To production planning

Journal voucher

To accounting

To Accounting (Terminal) Accounting

department calculates all of the journal vouchers and evaluates the production performance.

The two general threats in the production cycle are loss of data and poor performance. Loss of production data decreases the monitoring of inventory. The applicable control procedures for loss of data are: backup and disaster recovery planning and restricting access to cost data. The applicable control procedure for poor performance are improved and timelier reporting.

FIVE SUGGESTIONS Don’t inspect at inspection site but

instead at the production area. Use Radio Frequency IDs. Goods that fail inspections should be

sent to rework. Check inspection failure reasons to

improve on mistakes. Random inspection instead of every

product.