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From J Porter, Office Manager to Managing Director
Fire Drills/Structured maintenance. According to our records, we have had no fire drill in
the last 3 years, though I have made repeated requests that one should be carried out.
This is contrary to the local fire regulations and we would face prosecution should a fire
break out and injury be caused. There is a similar lack of regular inspection of the lathes
and other cutting equipment to ensure that guards are properly installed and fully
functional. There is no structured programme for either equipment or building
maintenance; repairs are carried out when and where necessary. As you are already
aware this has meant a number of problems in the older part of the factory. We certainly
meet the current regulations on the installation of fire doors and controls in areas of the
factory where there is excessive heat, such as in the foundry.
Item ten
From A Wellie, Security, to Managing Director
Theft. The results of the investigation that you requested into the amount of company
property, lost through theft over the last 3 years, are still not complete. This is largely
because of the shortage of records in a number of key areas, with no available records
kept in either production or warehousing. In the office block, reported thefts have
increased over the past 3 years. The value of such thefts has increased from around
€2,000, 3 years ago, to around €10,000 last year, and the total number of reported
incidents have increased sevenfold.
Item eleven
From Belinski, Sales and Marketing, to Managing Director
Short term forecasts. You are right in your assertion that no short term forecasts are
incorporated in the management report. Because of the very individual nature of the
business in which we are involved, the previous managing director decided that we should
not attempt to create controls of this type as they would, in his view, be counterproductive
and worthless diverting staff from more essential tasks, such as selling or producing.
Item twelve
From A Siddiqui, Finance Director, to Managing Director
Finance costs. We have never attempted to identify the likely effects of changing interest
rates on profitability, and we have never looked at alternative financing arrangements
other than overdraft for our short term debt. Our current costing system does not allow us
to identify likely problems in short term changes in raw material costs; the current policy is
to calculate standard production costs every 6 months. We rely on our reports from the
bank for forecasting foreign exchange movements.
Item thirteen
From J Malran, Production Manager, to MD
Changes in energy costs and energy efficiency. We have no procedure for reviewing the
effects of energy costs on production. Because of the wide range of projects in which we
are involved, the old MD thought that such review mechanisms would be inappropriate.
Item fourteen
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