Risk-Based Internal Control Analysis: A Case Study of the Production Process at CV Vetways Indonesia

Abstract

A risk-based internal control analysis of the production process at CV Vetways Indonesia identifies and mitigates operational losses. Employing a qualitative case study approach, data were gathered through in-depth interviews with three production managers and five line supervisors, field observations across four production lines, and a review of work procedure documents and quality reports from January to June 2025. The analysis focused on identifying key production risks, assessing existing controls, and recommending improvements based on COSO principles. The analysis revealed three critical risks: (1) raw material control gaps leading to material waste due to inadequate receiving inspections; (2) machine maintenance failures resulting in unplanned downtime and reduced production capacity; and (3) procedural non-compliance during the sterilization stage, necessitating the reworking of several production batches. Current controls are largely administrative, relying on manual post-production checklists, even for risks with documented mitigation procedures. Recommendations include implementing a five-level risk matrix, shortening preventive maintenance intervals from quarterly to monthly, mandating SOP training for production staff, and installing IoT sensors on critical machines for real-time monitoring. These findings enable CV Vetways to reduce operational losses and achieve GMP compliance within 12 months.