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

1.1.1.1. materials purchasing & carrying costs

1.1.1.2. repair & warranty costs

1.1.2. Controls

1.1.2.1. Ensure data between components & finished goods is accurate.

1.1.2.2. Analysis of warranty & repair costs

1.1.2.3. Analysis of costs arising from product design choices

2. Treats in Planning and Scheduling

2.1. Over-production

2.1.1. Problems

2.1.1.1. Excess goods for short-run demand

2.1.1.2. Potential cash flow problems

2.1.1.3. Obsolete inventory

2.2. Under-production

2.2.1. Problems

2.2.1.1. Lost sales

2.2.1.2. 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

3.1.1.1. Inventory data

3.1.1.2. May underproduction of inventory

3.1.2. Controls

3.1.2.1. Restrict physical access to inventory

3.1.2.2. All movement of inventory must be record

3.1.2.3. RFID tags & Barcodes

3.2. Fixed Asset Theft

3.2.1. Problems

3.2.1.1. Loss of assets

3.2.1.2. Fixed asset data

3.2.2. Controls

3.2.2.1. Fixed assets must be identified & recorded

3.2.2.2. Restrict access to fixed assets & it's records

3.2.2.3. Keep detailed records of fixed assets

3.3. Poor Performance

3.3.1. Problems

3.3.1.1. Low quality products

3.3.1.2. Loss of customer & revenue

3.3.2. Controls

3.3.2.1. Periodical check performance reports & take actions

3.3.2.2. Ensure well performance of employees

3.4. Disruption of operations due to fire/disaster

3.4.1. Problems

3.4.1.1. Disrupt functioning & destroy assets

3.4.1.2. Delay of production & shipping

3.4.2. Controls

3.4.2.1. Backup power sources

3.4.2.2. Disaster recovery planning

3.4.2.3. Purchase insurance for assets

4. Threats in Cost Accounting

4.1. Cost data

4.1.1. Problem

4.1.1.1. Effectiveness of production scheduling

4.1.2. Controls

4.1.2.1. Automate data collection

4.1.2.2. Use online terminals for data entry

4.1.2.3. Restrict access to data processing cycle

4.2. Misleading reports

4.2.1. Problems

4.2.1.1. Management's ability to monitor & control operations

4.2.2. Controls

4.2.2.1. Performance metrics is provided & followed

4.2.2.2. Management reports audited by an independent party