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Client Name Date Completed:
Audit Questionnaire: Production planing and Control
Completed By:
Business Function: Manufacturing
Reviewed By:
Objective:
Serial # Control Activities Yes No* Comments /Description
Employee Responsible for Task
1.1
The demand forecast data is reviewed regularly based upon
inputs from customer orders/forecasts, interplant requirements,
and requests from branch warehouses for reasonableness and
accuracy.
1.2
Management reviews the integrated sales and production plan
annually. Undesirable or unrealistic situations (such as
constraints, new demand not included, potential risks, etc.) are
identified for potential changes or improvements.
1.3
Management reviews the medium range production plan at least
quarterly to determine the optimal product mix, capacity
utilization, and requirement dates for finished products and
manufactured components.
1.4
Production/manufacturing plans are authorized and requirements
are effectively communicated to all affected parties timely.
4) Actual production plant efficiency and performance meet management's expectation in an adequate and appropriate manner.
Complete this checklist and apply audit procedures prescribed in relevant audit program for the question client answered "YES", evaluate the internal
controls and report the observations along with recommendations (if any.), for the Questions answered "NO" report as ineffective based on relevance of the
internal control activity and regulations (e.g. SOX), etc.
1) Management determines all production and manufacturing requirements accurately, validates and plans appropriately.
2) In order to meet the agreed production and manufacturing obligations, the adequate production facilities and resources are made available/utilized at the appropriate time.
3) Quantity and quality standards are met and shortfalls/problems are promptly detected and resolved.
Serial # Control Activities Yes No* Comments /Description
Employee Responsible for Task
1.5
Amendments to customer orders, production requirements,
forecasts, etc. are promptly and accurately identified, formally
documented, reviewed and approved by management, and
reported timely to all affected parties. Management also reviews
all production schedule changes to determine the impact on
committed to customer deliveries/obligations.
1.6
Contingency plans exist such as outsourcing production,
alternative suppliers, subcontracting, etc. in order to meet
production/manufacturing requirements.
2.1
Management reviews and approves the production plan to ensure
that there are adequate resources are available for meeting
customer requirements.
2.2
Management validates production readiness (processes
established and functioning, resources available and prepared,
tools & machinery available and functioning, facilities available
and capacity levels ascertained, etc.) prior to the creation of
production order (s) and then re-assesses production readiness
closer to production start dates.
2.3
Manufacturing capabilities are evaluated regularly by comparing
existing capabilities (line capacities, tolerance ranges, etc.) to the
company's manufacturing goals.
3.1
Standard operating procedures (SOPs) that define how work is to
be conducted are established. These SOPs are documented,
approved and disseminated to all process stakeholders.
3.2
Bill of Materials (BOM's) are established, documented, approved
and disseminated to all process stakeholders. All changes to a
BOM are authorized and approved by management.
3.3
Production orders are automatically or manually created from
planned orders/production plan. All information necessary to fulfill
the order to customer/internal specifications for the product and
process are identified and communicated effectively and timely to
all affected parties.
Serial # Control Activities Yes No* Comments /Description
Employee Responsible for Task
3.4
For new setups and change over, the setup person or the
operator runs a sample product to determine that the tooling is
correct and that the general tolerances are acceptable. The
sample product is inspected appropriately and adequately.
3.5
Management conducts a daily meeting with production staff and
support staff (maintenance, quality, process expert) to discuss
production issues and assign the appropriate action to resolve
them.
3.6
Materials delivered are inspected prior to the production process
and reject non-conforming materials. Production management is
notified timely so that appropriate action can be taken.
3.7
Production employees/supervisors monitor production and
identify any production-related issues and are reported timely to
the supervisor and production and/or maintenance management
or during the daily production meeting. These issues are
adequately and promptly addressed.
3.8
Management reviews and analyzes operational statistics and
process settings at least daily for accuracy and validity, and to
determine issues such as diminished production rates, quality
problems, material/labor shortages, etc. and appropriate actions
are taken.
3.9
Production and/or Quality Control conducts periodic quality
inspections as the production order proceeds through various
operations on the production line. Exceptions are analyzed and
appropriate corrective action is taken promptly.
3.1
Manufacturing information is recorded and reviewed by
management to make strategic/tactical decisions, and to verify
production requirements are being met.
3.11
Management reviews instances of off-spec performance and
identifies the source/root cause if possible. Management
coordinates resolution plans with appropriate areas (production
area, supplier, sub-contractor, etc.) timely to ensure production
requirements are met.
Serial # Control Activities Yes No* Comments /Description
Employee Responsible for Task
4.1
Manufacturing goals are established and key performance
metrics to measure performance and progress towards
objectives.
4.2
Management calculates and compares/analyze production cycle
time with the pre-defined cycle-time metrics by product-type,
production process, program, part number, etc. with standard
cycle times.
4.3
Production yields are calculated according to pre-defined
metric(s) at various levels in the manufacturing area including:
manufacturing site, specific process, functional area,
program/product, part number, etc.
4.4
Production efficiency is calculated at various levels of the
manufacturing department, as measured by pre-determined
metric (s), including: site, department, cell, team, etc.
4.5
Management monitors the production operations adherence to
delivery schedule targets (defined in specific metrics).
Performance is compared to schedule at appropriate level.
4.6
Management calculates and analyzes the time from completion of
finished product (i.e. end item to be delivered) until shipment to
the final customer.
4.7
Waste is analyzed and calculated in the production process:
rejected material (scrap, obsolescence, unusable co/byproducts)
and disposal fees.
4.8
Management tracks and analyzes process/line reliability
performance (actual production throughput versus theoretical).
4.9
Changes in product master data are authorized and
communicated to appropriate parties so that accurate product
data is maintained.
4.1
Process/line down times and the cause of process/line is
analyzed by management to determine process/line, material, or
operator issues.
Serial # Control Activities Yes No* Comments /Description
Employee Responsible for Task
To the best of my knowledge, the answers
and comments noted above are accurate and
reflect the current internal controls within
this department:
Name and Title of Person Completing Form (please print)
Signature of Person Completing Form
10/3/2014
Date Form Completed
Date of Department Director's Signature
Name and Title of Department Director (please print)
Signature of Department Director