201402productionplaningcontrols.xlsx

8/11/2019 201402ProductionplaningControls.xlsx

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Client Name Date Completed:u ues onna re: ro uc on p an ng an on ro Completed By:

us ness unc on: anu ac ur ng Reviewed By:

ec ve:

Serial # Control Activities Yes No* Comments /Descriptionmp oyee espons e or as

1.1

The demand forecast data is reviewed regularly based upon

inputs from customer orders/forecasts, interplant requirements,

and requests from branch warehouses for reasonableness and

accuracy.

1.2

Management reviews the integrated sales and production plan

annually. Undesirable or unrealistic situations (such as

constraints, new demand not included, potential risks, etc.) are

identified for potential changes or improvements.

1.3

Management reviews the medium range production plan at least

quarterly to determine the optimal product mix, capacityutilization, and requirement dates for finished products and

manufactured components.

1.4Production/manufacturing plans are authorized and requirements

are effectively communicated to all affected parties timely.

4) Actual production plant efficiency and performance meet management's expectation in an adequate and appropriate manner.

Complete this checklist and apply audit procedures prescribed in relevant audit program for the question client answered "YES", evaluate the internal

controls and report the observations along with recommendations (if any.), for the Questions answered "NO" report as ineffective based on relevance of the

internal control activity and regulations (e.g. SOX), etc.

1) Management determines all production and manufacturing requirements accurately, validates and plans appropriately.

2) In order to meet the agreed production and manufacturing obligations, the adequate production facilities and resources are made available/utilized at the appropriate time.

3) Quantity and quality standards are met and shortfalls/problems are promptly detected and resolved.


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Serial # Control Activities Yes No* Comments /Description mp oyee espons e or as

1.5

Amendments to customer orders, production requirements,forecasts, etc. are promptly and accurately identified, formally

documented, reviewed and approved by management, and

reported timely to all affected parties. Management also reviews

all production schedule changes to determine the impact on

committed to customer deliveries/obligations.

1.6

Contingency plans exist such as outsourcing production,

alternative suppliers, subcontracting, etc. in order to meet

production/manufacturing requirements.

2.1Management reviews and approves the production plan to ensurethat there are adequate resources are available for meeting

customer requirements.

2.2

Management validates production readiness (processes

established and functioning, resources available and prepared,

tools & machinery available and functioning, facilities available

and capacity levels ascertained, etc.) prior to the creation of

production order (s) and then re-assesses production readiness

closer to production start dates.

2.3

Manufacturing capabilities are evaluated regularly by comparingexisting capabilities (line capacities, tolerance ranges, etc.) to the

company's manufacturing goals.

3.1

Standard operating procedures (SOPs) that define how work is to

be conducted are established. These SOPs are documented,

approved and disseminated to all process stakeholders.

3.2

Bill of Materials (BOM's) are established, documented, approved

and disseminated to all process stakeholders. All changes to aBOM are authorized and approved by management.

3.3

Production orders are automatically or manually created from

planned orders/production plan. All information necessary to fulfill

the order to customer/internal specifications for the product and

process are identified and communicated effectively and timely to

all affected parties.


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4.1

Manufacturing goals are established and key performance

metrics to measure performance and progress towardsob ectives.

4.2

Management calculates and compares/analyze production cycle

time with the pre-defined cycle-time metrics by product-type,

production process, program, part number, etc. with standard

cycle times.

4.3

Production yields are calculated according to pre-defined

metric(s) at various levels in the manufacturing area including:

manufacturing site, specific process, functional area,

program/product, part number, etc.

4.4Production efficiency is calculated at various levels of themanufacturing department, as measured by pre-determined

metric (s), including: site, department, cell, team, etc.

4.5

Management monitors the production operations adherence to

delivery schedule targets (defined in specific metrics).

Performance is compared to schedule at appropriate level.

4.6

Management calculates and analyzes the time from completion of

finished product (i.e. end item to be delivered) until shipment to

the final customer.

4.7Waste is analyzed and calculated in the production process:rejected material (scrap, obsolescence, unusable co/byproducts)

and disposal fees.

4.8Management tracks and analyzes process/line reliability

performance (actual production throughput versus theoretical).

4.9

Changes in product master data are authorized and

communicated to appropriate parties so that accurate product

data is maintained.

4.1

Process/line down times and the cause of process/line is

analyzed by management to determine process/line, material, oroperator issues.


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To the best of my knowledge, the answersand comments noted above are accurate and

reflect the current internal controls within

this de artment:

Name and Title of Person Completing Form (please print)

Signature of Person Completing Form

10/3/2014

Date Form Completed

Date of Department Director's Signature

Name and Title of Department Director (please print)

Signature of Department Director

201402productionplaningcontrols.xlsx

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