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In its monthly report to the Finance department, the warehouse has reported for month of April, 2007 that it has issued 362,900 liters of raw latex were issued to compounding department for the month of April 07. The amount of letters issued was found to be contrast to the actual amount of 359,200 liters that were used and reported by the compounding departments for the month of April 2007 to produce a total of 90 batches (3700 liters / batch) and 4 batches (6550 liters / batch) of compounded latex. This gives a variance of 3700 liters between what was reported by the warehouse and compounding department.

As to which of the department should be correct and which should wrong is the subject of this investigation report. 2. Objective. This report aims to investigate the root cause of the raw latex variance and recommend disciplinary and corrective and preventive action against the erring departments 3. Investigation As indicated in the background above, the confliction reports of the warehouseman and the compounding department calls the attention of management to solve and held redirect the organization to go where it attain its objective.

An investigation therefore is normal part of management where responsibility is demanded from the various department and officers. An investigation would bring facts clearer so that management can decide of what to do and would make the necessary decision the deliver the expectation of the stockholders. Involved in this investigation are personnel with custodial functions such as the warehouse and the production or compounding leader or manager in this case and the warehouse which has control in the issuance of raw latex to the compounding department.

3. 1. Methodology In order to ensure the lack of bias of the investigation and to accomplish the objective of this report, the following steps shall be considered as part of the methodology. 3. 1. 1. Check the number of compounded latex batches in compounding according to date and verifies it against the quantity of raw latex as requested by the Material Planning System. 3. 1. 2. Check Quality Assurance results for every compounded batch whether there was any failure in the compounded latex parameters. 3. 1. 3.

Check the LRF (latex request form) issued by warehouse and duly received by the authorized personnel of the compounding department and correlate against latex batches that were compounded in compounding department. 3. 1. 4. Check wastage generated when servicing the diaphragm pump (used to pump raw latex from the bulk tank to compounding tanks) when it is chocked. 3. 1. 5. Interview warehouse leader who is in charge of raw latex issuance to compounding department and compounding operator who fills in the LRF (latex request form).

Interview the person in the compounding person who is authorized to sign receipt of issuance from the warehouse. 3. 1. 7 Analyse the functions of the warehouse and compounding department and the corresponding authority or power that each department could do in producing products of the company. 4. Results 4. 1. 1. The number of latex batches that was compounded for the month of April 07 was 90 batches (3700 liters / batch) and 4 batches (6550 liters / batch) to which 359,200 liters of raw latex was used from the raw latex bulk tank.

These figures correspond to number of liters of raw latex as requested by the Material Planning System. 4. 1. 2. There were no latex parameters failures detected by Quality Assurance Department which suggest that there was no need to do adjustment by adding raw latex. 4. 1. 3. The LRF (latex request form) was checked. It is noted that on the 22nd of April LRF No 1111 was raised to capture for tank T in compounding for the amount of 3700 liters.

However it is also noted that on the 23rd April LRF 1113 was raised again to capture raw latex volume of 3700 liters for Tank T again. This indicates that double requisition of raw latex was made for expeller T. 4. 1. 4. Knowing fact No 4. 1. 1 and 4. 1. 2 it is not possible to retrieve raw latex from the bulk tank for the same tank in Compounding (tank T). 4. 1. 5. Wastages generated from the diaphragm pump used to pump raw latex from the bulk tank to Compounding mixing tanks were investigated.

It is noted in the scrap generation log book that there were 2 occasions (16th April and 19th April) where the diaphragm pump was blocked and generated 316 and 792 kg of latex lump after coagulation. In liters, this would amount to 1846 liters of raw latex. 4. 1. 6. When the compounding department operator was interviewed, he related that the warehouse man demanded him to raise the LRF for Tank T on the 23rd April of which he obliged.

The quantity of raw latex taken by Compounding department appears to tally with the Material Planning System. There is no indication to state that an extra batch was compounded without reporting it in the stock report. 5. 2. The Quality Assurance report on latex parameters compliance at first sample indicates there was no error in processing the latex as such would not require any correction by adding extra raw latex. This would conclude that raw latex was taken from the bulk tank for this purpose.

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