1. Inspection Process  So Hang Mak Sarah Cruz  Metin OrucEugenia Vadhera  Mario HightowerChris Martinez

2. Flow Chart Inspector Enter inspection results At inspection station

3. At the Inspection Station Purpose: To inspect all of the finished goods before the goods are sold in the marketplace.

4. 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.

5. Flow Chart Inspector Enter inspection results At inspection station Update File

6. File is Updated (Computer Processing) Computer information storage is updated so that the information about the finished goods is accurate and reliable.

7. Flow Chart Inspector Enter inspection results At inspection station Update File Notice of rejected orders

8. 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.

9. Flow Chart Inspector Enter inspection results At inspection station Update File Notice of rejected orders Open production orders file

10. Open production orders file (Magnetic Disk) The production orders file is opened for updating the data.

11. Flow Chart Open production orders file Final move ticket

12. 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.

13. Flow Chart Open production orders file Final move ticket Enter data At Warehouse Or shipping

14. 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.

15. 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.

16. Flow Chart Open production orders file Final move ticket Enter data At Warehouse Or shipping Update Files and Print status report

17. 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.

18. Flow Chart Open production orders file Final move ticket Enter data At Warehouse Or shipping Update Files and Print status report Finished- goods inventory file Work-in- process inventory file

19. 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.

20. 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.

21. Flow Chart Enter data At Warehouse Or shipping Update Files and Print status report Work-in- process inventory file Finished- goods inventory file Updated open production order file

22. 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.

23. Flow Chart Enter data At 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

24. Report of Completed Production Orders (Document) All of the information that is updated is printed and sent to the production planning department.

25. Flow Chart Enter data At 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

26. To Production Planning (Terminal) The production- planning department uses the report of completed production order to plan the master production schedule.

27. Flow Chart Enter data At 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

28. Journal Voucher (Document) DebitCredit MaterialA/P WIPWages Pay Factory OHMaterial Wages Payable Utilities Accum. Depre. WIPFactory OH Finished GoodsWIP COGSFactory OH COGSFinished Goods

29. Flow Chart Enter data At 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

30. To Accounting (Terminal) Accounting department calculates all of the journal vouchers and evaluates the production performance.

31. 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.

32. 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.