PBL SESSION 4: PRODUCTION CYCLE AZAR Technology Ltd is a medium sized manufacturer of LED Industrial lighting and high-end commercial lighting products manufacturing and marketing with an average turnover of RM 1 Million. After six years of development, AZAR has formed a system of high grade LED downlight and panel light. AZAR has developed quite an outstanding goodwill among its customers, majority are dealers, wholesalers and lighting outlets. However LED lighting market is in the Increasingly Intense competition, thus none of the customers could be considered as major customers. Therefore, AZAR chooses to gear its production based on sales forecast derived from a loosely projected demand. The process of its production begins in the storekeeping department, where Faiz controls the Inventory and maintains the inventory records for both raw materials and also finished goods. He checks daily on the inventory control files to assess the raw materials Inventory needs, and sends an Inventory status report to production planning and control. The production planning and control department is led by Khairul, the production manager. Once the inventory status report is received, as well as the sales forecasts from marketing, Khairul takes a copy of the bill of materials and route sheet and begins to assess the inventory requirements. If the Inventory amounts are adequate, Khairul prepares two copies of production schedule, work order, move tickets and material requisitions. He authorizes all the documents and sends them all to the work centers. If inventory needs to be reordered, Khairul then sends a copy of purchase requisition to the purchasing and storekeeping departments. Khairul also heads the various work centers. All supervisors of the work centers report to him. These supervisors, upon receipts of the above documents, initiate the production process. The materials requisitions are sent to the storekeeping department and Faiz sends the necessary materials to the work centers. Once all work are done, a completed work order and move ticket are returned to Khairul by supervisors. Then, Khairul sends one copy of each (work order and move ticket) to the cost accounting section of the accounts department and file his copy for future reference. The accounting department makes no other check or reviewed regarding the completed production process. AZAR's inventory management, production planning and control procedures employ little computer technology even though the factory equipped with up-to-date production and shopfloor machinery. Required: a. Discuss five (5) internal control weaknesses that exist in the production cycle system ofthe company and suggest the improvements that can be implemented. Your answer should be written using the following format: Weaknesses Improvement I (15 marks) b. Lean manufacturing is a methodology that focuses on minimizing waste within manufacturing systems while simultaneously maximizing productivity. Waste is seen as anything that customers do not believe adds value and are not willing to pay for. Some of the benefits of lean manufacturing can include reduced lead times, reduced operating costs and improved product quality. Discuss techniques and technologies that promotelean manufacturing. (15 marks)