Mr Akhtar, Operations Director was very concerned to learn of several concerns the auditors had with the operations area of the business.
Operations at Digbeth Paper covers the procurement of raw materials, warehousing of those raw materials, production ofpaper goods, picking and packing of customer orders warehousing of orders and finally transportation. The concerns raised by the auditors were as follows:
•The Operations Department is the largest in the Company and yet it does not have an Assistant Director.
•The Logistics Manager, in reality,tries to fulfil this role whilst also his full-time role of Logistics Manager (no one asked him to do this formally, the other managers just tend to look to him for guidance).
•The team appear short-staffed and are just trying to “get through the day”. It appears quite chaotic with the delivery of raw materials is inconsistent due to suppliers refusing to deliver until they get paidfor the previous months’orders.
•The level of absence and sickness in this area are very high and people are constantly leaving
•Identify the key Management failings for the Company by what the Auditor has highlighted
•Define the risk that these issues pose to the business in the short, medium and long terms
•What recommendations would you suggest to the board to improve this area
