UKP plc is a UK based shoe manufacturer producing a range of orthopaedic shoes. The company produces12 different styles of orthopaedic shoes, based on NHS demand. The company operates a computer based production planning/manufacturing systems as follows. At the end of each production cycle (a production cycle is 10 days) the production planning department prepares a master production schedule for the next production cycle detailing the styles and quantities ofshoes to be produced during the next production cycle. The master production plan is used to prepare a production operations list, for which a production order is generated for the production of each style of shoe.
Each production order is added to an open production order master file.
At the end of each day, the store clerk reviews the open production orders and the master production schedule to identify the materials and components required to be issued for production purposes for the next day. All materials are RFID tagged.
The 12 different orthopaedic shoe styles are produced at eight different production locations in the company’s factory. Materials and components received by the factory workers at each production location are scanned as they are used.
To operate the production equipment, factory workers use computer based biometric fingerprint readers to both commence and terminate the production. This information is used to monitor production levels and determine remuneration levels. (All factory workers are paid a fixed basic wage plus a bonus based on levels of production.)
Once the shoes have been produced, each pair is RFID tagged and despatched to the company warehouse for safe storage. Every one in 50 pairs of shoes produced is quality checked prior to despatch to the warehouse.
Required
Prepare a systems flowchart of the production system described above and describe the internal control procedures you would expect to be included in such a production process.