Dimaano, Tricia Nicole J.

BSA-A2A

Discussion 2: Production Cycle

 Advantages of Continuous Improvement

One of the advantages of continuous improvement is its ability to improve the efficiency of
processes. Systems implemented and used within the company gets the work done with lesser
time and improves the quality of products and services. Second, it allows the engagement of the
management and employees to make continual improvement while getting more invested and
interested in their work and tasks. Third, it improves customer satisfaction which enables the
company to better meet the customer’s needs and wants. Lastly, it provides for a better effective
system since it will allow the company to continually evaluate and upgrade its operations.

 Disadvantages of Continuous Improvement

The first disadvantages of continuous improvement is its incremental improvement wherein
the planned improvements are done with small steps according to a set of established
assumptions. Second, companies may limit themselves to a specific type of development and
close themselves to other possibilities. Furthermore, it creates a possibility of stifling rather than
rewarding the creativity of its employees. Lastly, inadequate implementation may arise since
objectives may not be communicated clearly and managers may not be motivated in following
through the improvements that the company wants to continuously achieve.
Assignment 3: Production Cycle

Examine the flowchart and determine any control threats. Specifically discuss the control
problems, the possible dangers, and any corrective procedures you would recommend.
ANSWERS:

 Control Threats
One of the control threats identified in the given flowchart is that the work focuses in a given
framework and does not set up finance time cards and occupation tickets which should be a
basic component for recording transformation framework. Second, the management reports are
shut upon the receipt of last move ticket which shows that the creation process is done. Lastly,
the stock control office is not performing other fundamental errands in the creation such as
refreshing the completed merchandise stock, requisition, etc.

 Possible Dangers
One of the possible dangers brought by the identified control threats is that the company
may generate extra overhead cost since the company does not have a legitimate stock
appraisal, they may purchase more than the required material or may have lower stock of
material. More inventories will prompt which will greatly affect the expenses of the company.
Second, the company may experience lower quality of created and processed goods. This is
because the greater part of the assembling department is concentrating on the ideal nature of
the goods. Given such, improper control usage will not enable the company to pursue lean
assembling standards.
 Corrective Procedures
One of the corrective procedures that are suggested which are aligned with the identified
threats and dangers is that the arranging and control division should evaluate the stock status
for breaking down the genuine interest and limit of the implemented system. Second, production
arranging division should be approved to be able to make the exact creation archives and
course sheet. Lastly, inventory appraisal should be done on an occasional premise with
customary intervals.