Work Centres

In the work centres, Harry prepares a work order sheet detailing the exact materials used and processes for each production batch. These details are keyed into the computer system using the terminal at the factory floor. He prints and then passes the document to Kamal who is AFAB's production supervisor. Harry also prepares a material requisition note authorizing the inventory storeroom to release raw materials for use in the production process. Kamal then prepares a move ticket recording work done in each work centre. He sends it to Harry for authorization before the batch could be relayed to another section.

Once all work are done, a completed job ticket is issued by Kamal who transmits it directly via the computer system to the cost accounting section of the accounts department. The accounting department makes no other check or reviewed. Each production operator then submits his/her time card to the payroll section of the accounting department for salary and overtime claims.

Kamal also verbally notifies Harry once the production process is completed. Harry will then mark his copy of the move ticket as "complete" and file it for future reference.

6 | P a g e

Each responsible person will need to number all of the documents used in the whole production process.

Required:

a. Discuss three (3) weaknesses in its work centers and explain the potential risk exposures posed by the weaknesses. Suggest relevant three (3) improvements that can be used to address the weaknesses identified earlier.