Implementation of management controls You are the Vice President of Finance of a high technology product firm. Many but not all of your products are built for specific customer needs; other products are generic. Your responsibilities include the design and analysis of management controls for internal and external activities. Your company has decided to outsource all parts supply, manufacturing and distribution resources to external suppliers. The Director of Outsourced Logistics has described a proposed customerorder process with the flowchart that follows. The major risks to outsourcing these activities appear to be that parts supply, manufacturing or distribution could be incorrect, defective or late.

1. First, consider an order for a generic, general application product. Use the flow chart to choose management controls for each of the three outsource providers.
2. Next, describe what, if any differences in the order process and management controls would be appropriate for insuring the successful completion of an order for a customised product.

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Ne Enter order rder in order received into system database Ne order Adapted from Drizymalski and Odrey 2008, p. 731. utsourced parts supplier Supply complete utsourced manufacturer anufac turin complete utsourced distributor Delivery complete rder rder complete closed