Required: Analyse the risks associated with the following business processes of a manufacturing company.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Marketing system provides some useful insights regarding the sales order. Different departments use this information. For instance, the production process uses this information to
Work centre employees record their work hours on paper-based job cards and send them to the accounting department. After the production is completed in a work centre, the move ticket is submitted to the accounting department. Upon the completion of a production batch, the production supervisor closes the open work order file.
The warehouse manager files one copy of the materials requisition and updates the materials inventory file in the computer in her office. The manager then sends a second copy of the materials requisition to the accounting department. At the end of the day, the manager prepares a digital journal voucher and post it to the general ledger control account. The accounting clerk assesses the work orders and set up a work-in-process account for a production batch. Throughout the production period, the clerk also receives move tickets, job tickets, and materials requisitions, which he uses to post to the work-in-process account. At the end of each day, the accounting clerk prepares a digital journal voucher and post it to the general ledger control account to reflect the status of work-in-process and to record transfers of work-in-process to finished goods inventory.
Required:
Analyse the risks associated with the following business processes of a manufacturing company.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
