Inspection Process

So Hang Mak Sarah Cruz

Metin Oruc Eugenia Vadhera
Mario Hightower Chris Martinez
Flow Chart
Inspector

At inspection Enter inspection

station results
At the Inspection Station
 Purpose: To inspect
all of the finished
goods before the
goods are sold in
the marketplace.
Enter Inspection Results
(Online Keying)
 After the goods are
inspected, the inspector
enters the inspection
results (like how many
goods have defects and
what kind of defects) by
an online output device
such as personal
computer.
Flow Chart
Inspector

At inspection Enter inspection

station results

Update File
File is Updated (Computer
Processing)
• Computer
information storage
is updated so that
the information
about the finished
goods is accurate
and reliable.
Flow Chart
Inspector

At inspection Enter inspection

station results

Update File Notice of

rejected orders
Notice of Rejected Orders
(Document)
 After the file is updated,
a document or a report
is printed. This
document would include
a product list of items
with defects. These
items should go back to
production for rework
or scrap.
Flow Chart
Inspector

At inspection Enter inspection

station results

Update File Notice of

rejected orders

Open
production
orders file
Open production orders file
(Magnetic Disk)
 The production
orders file is opened
for updating the
data.
Flow Chart Open
production
orders file
Final move
ticket
Final Move Ticket (Document)
 After the sales order is
approved, the next step is
to determine if there is
sufficient inventory
available to fill the orders.
When the inventory
available has been
determined, a move
ticket/ picking ticket
authorizes the inventory
control function to release
merchandise for shipping.
 Flow Chart Open
production
orders file
Final move
ticket

At Warehouse Enter data

Or shipping
At Warehouse or Shipping
(Computer Processing)
 The job of the
warehouse or
shipping is to fill
customer orders
accurately and
efficiently and to
safeguard inventory.
Enter Data (Online Keying)
 The data of the move
ticket is entered into
the computer, so that
the warehouse or
shipping department
can accurately pick and
pack the goods that the
customer orders and
sends the goods to the
customers on time.
 Flow Chart Open
production
orders file
Final move
ticket

Update Files and

At Warehouse Enter data Print status report
Or shipping
Updates files and print status
report (Computer Processing)
 While the warehouse or
shipping ships the
goods, the inventory
would be updated and
the status report
printed. In addition,
this information also
flows to finished goods
inventory file and work
in process file.
 Flow Chart Open
production
orders file Finished-
Final move goods
ticket inventory
file

Update Files and

At Warehouse Enter data Print status report
Or shipping

Work-in-
process
inventory
file
Finished Goods Inventory File
(Magnetic Disk)
 This file includes the
goods, item number,
description, standard
unit cost, and date
manufactured. The
decreasing (sales,
defects) or increasing
inventory (returns)
would be updated
automatically.
Work in Process Inventory File
(Magnetic Disk)
 The movement of
inventory will be sent to
the work in process
inventory file and is
updated. At the same
time, any information
that is changed in the
work in process
inventory file would be
sent to the finished
goods inventory file.
 Finished-
goods

Flow Chart
inventory
file

Update Files and

At Warehouse Enter data Print status report
Or shipping

Work-in-
process
inventory
file

Updated
open
production
order file
Updated open production
order file (Magnetic Disk)
 The total number of
goods order is
updated in the
production file. The
sales department
enters sales
forecasts and
customer special
order information.
 Finished-
goods

Flow Chart
inventory
file

Update Files and

At Warehouse Enter data Print status report
Or shipping

Work-in-
process
inventory
file

Report of
completed
Updated production orders
open
production
order file
Report of Completed
Production Orders (Document)
 All of the
information that is
updated is printed
and sent to the
production planning
department.
 Finished-
goods

Flow Chart
inventory
file

Update Files and

At Warehouse Enter data Print status report
Or shipping

Work-in-
process
inventory
file

Report of
completed
Updated production orders
open
production
order file

To production
planning
To Production Planning
(Terminal)
 The production-
planning department
uses the report of
completed
production order to
plan the master
production schedule.
 Finished-
goods

Flow Chart
inventory
file

Update Files and

At Warehouse Enter data Print status report
Or shipping

Work-in-
process
inventory
file

Report of
completed Journal voucher
Updated production orders
open
production
order file

To production
planning
Journal Voucher (Document)
 Debit Credit
 Material A/P
 WIP Wages Pay
 Factory OH Material
Wages Payable
Utilities
Accum. Depre.
 WIP Factory OH
 Finished Goods WIP
 COGS Factory OH
 COGS Finished Goods
 Finished-
goods

Flow Chart
inventory
file

Update Files and

At Warehouse Enter data Print status report
Or shipping

Work-in-
process
inventory
file

Report of
completed Journal voucher
Updated production orders
open
production
order file

To production To
planning accounting
To Accounting (Terminal)
 Accounting
department
calculates all of the
journal vouchers
and evaluates the
production
performance.
 The two general threats in the production
cycle are loss of data and poor performance.
Loss of production data decreases the
monitoring of inventory. The applicable
control procedures for loss of data are:
backup and disaster recovery planning and
restricting access to cost data. The
applicable control procedure for poor
performance are improved and timelier
reporting.
FIVE SUGGESTIONS
 Don’t inspect at inspection site but instead at
the production area.
 Use Radio Frequency IDs.
 Goods that fail inspections should be sent to
rework.
 Check inspection failure reasons to improve
on mistakes.
 Random inspection instead of every product.