Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

15.3.3 Progress Checking, Quality Control, and Report of Order Termination

Intended learning outcomes: Produce an overview on progress checking, quality control and the quality control sheet. Identify the anticipated delay report and the order termination report.

Progress checking monitors the execution of all work, in terms of quantity and delivery reliability, according to a plan.

Progress checking allows determination of the position of a production order in process at a specific moment. Every time a parts requisition or operation card is reported, the administrative status of the position changes into “issued” or “executed.” A strictly maintained reporting system is the prerequisite for exact control. It is important to report every operation as “executed” immediately upon completion. This ultimately serves for order coordination. In turn, the meaningfulness of scheduling and capacity planning is maintained. The system is transparent and finds acceptance with the users.

The recorded actual load of an operation permits statistical evaluation and determination of the average work center efficiencyoverall. Modifications to the standard load for an operation may result.

Quality control checks every produced or purchased product according to a more or less explicit or detailed quality control sheet.
A quality control sheet is a routing sheet that holds the process for quality assurance. 

With production orders, quality control can take place after each operation. Ideally, the person performing the operation should carry out quality control. However, quality control can also take place at the end of production. It may also serve to estimate process capability.[note 1510] For purchase orders, the receiving department inventories incoming receipts as to identity and quantity before transferring them to the quality control unit.

The production resources used for quality control are called quality control materials. The produced lot is designated “finished” or “received,” but also “in quality control”. The availability date is, e.g., the received date plus the lead time for completion of the quality control sheet. During execution of the control operations, errors are recorded.

An anticipated delay report is a report to materials management, regarding production or purchase orders that will not be completed on time.

Besides the new date, the anticipated delay report has to explain why the order is delayed.

The order termination report is the message that an order was completed. It contains the results and states that all resources used were recorded.

For logistics purposes, the final stage of the quality check judges the portions of the procured order lot as accepted or as rejected as scrap. The scrap (that is, the material outside of specifications) goes back to production for rework (that is, reprocessing to salvage the defective items, if this seems practical), or back to the supplier for replacement (or reduction of the total of the receipts).[note 1511] The yield (or the “good” quantity, that is, the acceptable material) moves to its destination: to stock, to a production process, or to sales.

Order termination is reported only when all resources used for a production order have been recorded, and when the accounting check for a purchase order has been performed. The latter is the comparison between the usable quantity of a shipment received and the corresponding purchase order position quantity.

Course section 15.3: Subsections and their intended learning outcomes