Planning and Production Control

Control Objectives for Planning and Production Control

(a) To ensure that production and manufacturing requirements are accurately

determined, authorised, effectively communicated and suitably planned for;
(b) To ensure that adequate facilities and resources are made available at the
appropriate time in order to meet the agreed production and manufacturing
obligations;
(c) To ensure that the required quantity of products is manufactured to the
required quality standards;
(d) To ensure that the actions of all affected departments and functions are
adequately coordinated to achieve the defined objectives;
(e) To ensure that production resources and facilities are efficiently utilised
and that waste is avoided/minimised;
(f) To ensure that the necessary production equipment is fully operational
and operated efficiently;
(g) To ensure that production staff are suitably trained and experienced in
order to maximise their contribution;
(h) To ensure that production downtime is minimised, suitably monitored and
reacted to;
(i) To ensure that all materials, resources and finished goods are accurately
accounted for;
(j) Ensure that production activities are effectively monitored, reported to
management and shortfalls and problems are promptly detected and resolved;
(k) To ensure that all relevant legislation, Health & Safety and other
regulations are complied with; and
(l) To ensure that actual production plant efficiency and performance are
adequately monitored for management information and action.

Risk and Control Issues for Planning and Production Control

1 Key Issues

1.1 How can management be assured that the production and

manufacturing requirements are accurately defined and suitably
authorised?
1.2 What mechanisms ensure that authorised production/manufacturing
requirements are effectively communicated to all affected parties, and that
suitable plans are agreed and implemented to meet the defined obligations?
1.3 What processes ensure that all the required resources and facilities
(i.e. materials, staff, machines, knowledge, etc.) are available to meet the
required production obligations?
1.4 How can management be assured that actual progress and use of
production facilities are effectively monitored and that problems, shortfalls
and delays would be promptly detected and corrected?
1.5 What measures ensure that the required quantity of products is
actually manufactured and accounted for?
1.6 How can management be sure that the items produced conform to
the required quality standards, and are defect rates effectively monitored?
1.7 What measures have management taken to minimise and avoid
disruption of production caused by machine breakdown, poorly experienced
staff, and absence of raw materials and components?
1.8 Is the utilisation of all resources (materials and workforce) fully
accounted for and would waste be promptly identified and appropriate
action taken? (How is this evidenced?).
1.9 Are management kept informed of overall production performance
and efficiency, and what evidence is there of corrective action being taken to
address shortcomings, etc.?
1.10 What mechanisms ensure that compliance with all the prevailing
legislation and regulations is confirmed?

2 Detailed Issues

2.1 Are all amendments to customer orders, production requirements,

forecasts, etc. promptly and accurately identified and reported in order to modify
the relevant production activities?
2.2 What measures are in place to ensure that adequate and accurate
information flows are established for all affected parties?
2.3 How would uneconomic or unrealistic production runs be prevented?
2.4 How would unauthorised production activity be prevented or identified?
2.5 How can management be certain that the practical manufacturing
implications of new product lines have been identified, assessed and planned for?
2.6 Are plant utilisation records maintained and would surplus capacity be
identified and reacted to?
2.7 How can management be assured that the layout of the production line
maximises efficiency and avoids unnecessary movements and processes?
2.8 What processes ensure the correct flow of raw materials to the production
area?
2.9 Are materials and components adequately protected from loss and
damage in the production areas?
2.10 What steps are taken to avoid/minimise machine failures and downtime?
2.11 Is downtime recorded, attributed and effectively monitored by
management (and how is this evidenced)?
2.12 What mechanisms ensure that the skills of the workforce are adequately
maintained in line with the current requirements?
2.13 Are staff skills suitably balanced to provide adequate cover during
holidays, etc.?
2.14 Would production delays be promptly detected?
2.15 Are all finished goods accounted for and trailed into the stock control
system?
2.16 Are all damaged, spoilt, scrap and rejected items identified, authorised and
accounted for?
2.17 How can management be assured that all production activities are
accurately costed and that reliable product costings are generated?
2.18 Would uneconomic products/production runs be prevented or promptly
detected?
2.19 Are machine utilisation and performance statistics accurately produced,
circulated and reacted to?
2.20 Are employee productivity levels effectively monitored?
2.21 Does management periodically evaluate the adequacy of production
facilities?
2.22 How does management confirm compliance with all the relevant Heath
and Safety regulations?
2.23 How does management ensure that their awareness of the relevant
regulations is up-to-date and complete?
2.24 How would violations of regulations be detected?
2.25 Have realistic and workable contingency and disaster plans been
established, and are they regularly tested for their effectiveness?
2.26 How is the accuracy of data input from other systems (i.e. Sales Orders,
Planning, etc.) confirmed?
2.27 How is the accuracy of data output to other systems (i.e. Time recording
to payroll, Product Accounting, etc.) confirmed?