Question

The Whip- O Manufacturing Company manufactures neck braces for special orders. The firm hires 20 artisans who each work on a brace until completion. There are 8– 10 operations performed on each custom brace, ranging from 1 to 6 hours each. At present, prescriptions and measurements are obtained from doctors by the sales representative. On receipt at the plant, the production agent prepares a production ticket and holds the information until an artisan is free. Lists of materials needed for each job are compiled by the artisan and given to the production agent. The agent purchases the locally available items and orders the unavailable items from a medical supply catalog. Delivery of the ordered items usually takes less than a week. When an employee finishes a job, he or she gives the brace, production ticket, and hours spent to the accountant, who adds the cost of materials and overhead and then calculates the price. The receivable is recorded, and the brace and invoice are sent to the sales representative for delivery. Each week, the artisans turn in a time card to the general manager, who approves the cards and passes them to the accountant for payroll preparation and check distribution. The general manager has had several concerns:
a. Doctors persistently call inquiring about cost and delivery date, and little information is available.
b. Total time from receipt of order to delivery time seems excessive in most cases.
c. Payroll costs do not appear to be in control.

Required
a. Document in a flowchart the sales processing and payroll system.
b. List the weaknesses and suggestions for improvement concerned with the general manager’s comments. (Use the format below; you should have at least six.)



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  • CreatedFebruary 26, 2015
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