SCW Ltd is a small UK based company that manufactures custom made pine furniture. The company employs 12 specialist carpenters, four designers, one production scheduler, two administrators and a manager. Because of the high reputation enjoyed by the company only one sales person is employed since the quality of the company’s furniture attracts sufficient orders to maintain production at full capacity. When a customer order is received, it is allocated to a designer who designs the product, manages the production process and approves the final result. The production scheduler assigns at least two specialist carpenters to each order, depending on factors such as complexity of the design and the requested date of delivery. Once the product is completed, the production price is determined by accumulating all related costs and a percentage mark up is added to determine the sale price.

Required

(a) Prepare a list of the data elements that would be required to be able to plan, manufacture and monitor the progress of a customer order.

(b) Explain what data elements would be required to calculate a sales price for a customer order.

(c) Prepare an systems diagram for the above production system – from the receipt of the customer order to the completion and delivery of the finished product.

(d) Describe several reports that will be useful to the production scheduler and carpenter in performing their duties.

(e) A customer order has recently been received, the details are as follows:

·         Order No:

498983

·         Order details:

One Cartier style dining room suite

·         Customer No:

Clare Barber, Ardslave, Western Isles, Scotland

·         Order Date:

1 April 2007

·         Delivery date:

1 October 2007

·         Assigned designer:

Jordon Reece Spencer

·         Assigned carpenters:

Tony Barber

 

Louise Ritter

Briefly describe the possible internal control problems that could arise in the processing of this order.