Review of Production/Modification Planning :

1. Whether a standard documentation is used to communicate sales orders and production/modification requirements to production personnel.

2. Whether production/modification schedules are compared to sales orders to ensure that production timing and quantities are appropriate.

3. Whether Production/modification schedules is reviewed and approved by an appropriate officer.

4. Whether standard documentation is used to communicate material requirement plans (including quantities and dates) to the purchasing department.

5. Whether Material requirement plans (MRPs) is compared to production/modification schedules weekly to ensure that quantities and timing (including the effect of lead times) are appropriate.

6. Whether instances of insufficient or excessive raw material inventory are monitored weekly/monthly.

7. Whether MRP is based on accurate and up-to-date bill of materials (BOM). Whether production/ Modification Process Employees are trained in the use of the equipment.

8. Whether employees are trained to perform a number of tasks to provide cover for other skilled employees.

9. Whether continuous improvement initiatives such as Kaizen, Poke-yoke are pursued.

10. Whether management reviews and follow-up following on daily/weekly basis
– Order book status and order intake trends
– Production volumes and variances by product and location
– Machine utilisation rates

– Production efficiency data (e.g. usage, scrap, rework etc.)
– Scheduled and unscheduled downtime
– Inspection and testing results
– Product quality data (defects, failures, customer complaints, warranty costs etc.)
– Output per employee and per productive hour

11. Whether production performance measures are benchmarked internally and against other organizations, including:
– Machine utilisation rates
– Materials usage costs as a percentage of total production costs
– Scrap and rework levels
– Scheduled and unscheduled downtime as a percentage of total production time
– Inspection and testing costs as a percentage of total production costs defect and failure rates
– Warranty and product liability costs as a percentage of total production costs
– Customer complaint and return rates
– Material stock levels divided by average daily usage employee productivity levels

12. The costing of the modification job should be approved by an appropriate officer.