Threats in Production Cycle

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Threats in Production Cycle by Mind Map: Threats in Production Cycle

1. Threats in Product design

1.1. Poor product design

1.1.1. Problems materials purchasing & carrying costs repair & warranty costs

1.1.2. Controls Ensure data between components & finished goods is accurate. Analysis of warranty & repair costs Analysis of costs arising from product design choices

2. Treats in Planning and Scheduling

2.1. Over-production

2.1.1. Problems Excess goods for short-run demand Potential cash flow problems Obsolete inventory

2.2. Under-production

2.2.1. Problems Lost sales Customer dissatisfaction

2.3. Controls

2.3.1. More accurate production planning

2.3.2. Proper authorization of production orders

2.3.3. Restriction of access to production scheduling program

3. Threats in Production operations

3.1. Inventory Theft

3.1.1. Problems Inventory data May underproduction of inventory

3.1.2. Controls Restrict physical access to inventory All movement of inventory must be record RFID tags & Barcodes

3.2. Fixed Asset Theft

3.2.1. Problems Loss of assets Fixed asset data

3.2.2. Controls Fixed assets must be identified & recorded Restrict access to fixed assets & it's records Keep detailed records of fixed assets

3.3. Poor Performance

3.3.1. Problems Low quality products Loss of customer & revenue

3.3.2. Controls Periodical check performance reports & take actions Ensure well performance of employees

3.4. Disruption of operations due to fire/disaster

3.4.1. Problems Disrupt functioning & destroy assets Delay of production & shipping

3.4.2. Controls Backup power sources Disaster recovery planning Purchase insurance for assets

4. Threats in Cost Accounting

4.1. Cost data

4.1.1. Problem Effectiveness of production scheduling

4.1.2. Controls Automate data collection Use online terminals for data entry Restrict access to data processing cycle

4.2. Misleading reports

4.2.1. Problems Management's ability to monitor & control operations

4.2.2. Controls Performance metrics is provided & followed Management reports audited by an independent party