A manager of quality assurance team is trying to figure out the cost of quality (COQ)...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A manager of quality assurance team is trying to figure out the cost of quality (COQ) for a project which the company has just finished off. The main intention behind this endeavor is to give awareness to the teams working in the company regarding the importance of following policies and procedures. All the required data has been collected from different teams with due care. The manager has assigned you to calculate the cost by using following data. 1. Documenting all changes to the system on a detailed level cost the company around $15000. 2. The additional work that occurred after the UAT to deal with documentation lacks cost $2000. 3. Early prototyping and the training of staff cost the company around $25,000 which was less than the cost which company bore in terms of penalties and warranties claims of $4500. 4. The amount budgeted for testing the project (initial estimate $16000) was increased by 10% due to staff turnover. 5. Technical support and debugging of the reported issues took $8000. 6. The amount given to the consultants and auditing firms was $10000 and $6000 respectively. Required: [02 marks] Calculate cost of conformance. [02 marks] Calculate cost of nonconformance. [02 marks] What is your judgment about the procedures and policies following in the company based on the calculations? Ac Go A manager of quality assurance team is trying to figure out the cost of quality (COQ) for a project which the company has just finished off. The main intention behind this endeavor is to give awareness to the teams working in the company regarding the importance of following policies and procedures. All the required data has been collected from different teams with due care. The manager has assigned you to calculate the cost by using following data. 1. Documenting all changes to the system on a detailed level cost the company around $15000. 2. The additional work that occurred after the UAT to deal with documentation lacks cost $2000. 3. Early prototyping and the training of staff cost the company around $25,000 which was less than the cost which company bore in terms of penalties and warranties claims of $4500. 4. The amount budgeted for testing the project (initial estimate $16000) was increased by 10% due to staff turnover. 5. Technical support and debugging of the reported issues took $8000. 6. The amount given to the consultants and auditing firms was $10000 and $6000 respectively. Required: [02 marks] Calculate cost of conformance. [02 marks] Calculate cost of nonconformance. [02 marks] What is your judgment about the procedures and policies following in the company based on the calculations? Ac Go
Expert Answer:
Answer rating: 100% (QA)
1 Cost of Conformance All the costs incurred in the process of e... View the full answer
Related Book For
Operations Management Processes And Supply Chains
ISBN: 9781292409863
13th Global Edition
Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman
Posted Date:
Students also viewed these computer network questions
-
Root Company produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Root Company reports the following cost data for the past year: (Click the icon...
-
Hyten Corporation On June 5, 1998, a meeting was held at Hyten Corporation, between Bill Knapp, Director of Marketing/Sales, and John Rich, director of engineering. The purpose of the meeting was to...
-
1. Hannah is applying for a life policy on her girlfriend Sarahs life. The policy is $500,000 and carries a large premium. Hannah is the main earner, so she is concerned about not being able to pay...
-
Calculate the labour turnover rate according to replacement method from the following: No. of workers on the payroll: - At the beginning of the month: 500 - At the end of the month: 600 During the...
-
Claire Hart has just prepared a trial balance for a company and found that total debits were $100 higher than total credits. Assuming only one error was made, discuss the process Claire might use to...
-
Read Yusuf (Wie) J. & Sloan, M.F. (2015). Effectual Processes in Nonprofit Start-Ups and Social Entrepreneurships: An Illustrated Discussion of a Novel Decision-Making Approach by Juita-Elena (Wie)...
-
The Arcadia Company made an offer to purchase all of the outstanding shares of The Claremont Company at a price of \($10\) per share, or an aggregate of \($22\) million. Immediately prior to the...
-
Suppose that the following transactions take place on the U.S. balance of payments during a given year. Analyze the effects on the merchandise trade balance, the international investment income...
-
Sheffield Company, a public company following IFRS, purchased $100,000, 5% five-year bonds of IAA Corporation on January 1, 2024. Interest is payable on July 1 and January 1. The bond is selling at a...
-
For this activity, you'll research potential libraries or modules to use that are compatible with PythonAnywhere to help you script using the data required. Step 1: Find Compatible Libraries A client...
-
Swap statements in lines 6 and 7 of function countdown () to create function countdown2(). Explain how it differs from countdown()
-
Q4) We are trying to analyse the money spent for entertainment (ENT) in Turkey. Suppose we define: gender (G) as male or female; nationality (N) as Turkish or foreign; and marital status (M) as...
-
Consider the linear model: Y;= a + a (X - X) + U. Find the OLS estimators of ag and a. Compare with the OLS estimators of 30 and 31 in the standard model discussed in class (Y = 30 +3X; + ui).
-
1. A monopolist produces two commodities that are substitutes and having demand functions: X-8-P+P and X=9+P-5P, where 1,000 X, units of first commodity are demanded if its price is Rs P, per unit...
-
Parci and Max both utility functions for goods A and B as U = 20A0.25B0.5 with marginal utilities MUA = 5A-0.75 80.5 and MUB = 10A0.25B-0.5. Prices are PA = $2 and Pg = $1. Parci has income of $360...
-
John is looking to invest in different financial products. The following table summarizes the name of each product, expected annual return, and cost. He is interested in buying at most one one of...
-
act - Word vamshi aaron VA F 0 Mailings Review View Help Tell me what you want to do T AaBbCcDd AaBbCcDd AaB AaBb AaBbCcD, AaB AaBbCcDd AaBbCcDd Find ab Replace E 1 Normal 1 No Spac... Heading 1...
-
g(x) = x 5 5x 6 a. Show that g(x) = 0 has a root, , between x = 1 and x = 2. b. Show that the equation g(x) = 0 can be written as x = (px + q) 1/r , where p, q and r are integers to be found. The...
-
A leading domestic gas meter manufacturer was facing a wide range of quality issues and observed wastage at several stages of the supply chain. It analyzed performance data of the process over a...
-
Crayola, LLC, is a profitable, wholly owned subsidiary of Hallmark Cards of Kansas City, Missouri. The company's world headquarters are located in Easton, Pennsylvania; departments there include...
-
Wood County Hospital consumes 1,000 boxes of bandages per week. The price of bandages is $35 per box, and the hospital operates 52 weeks per year. The cost of processing an order is $15 and the cost...
-
Photovoltaics, Inc. is an Arizona-based manufacturer and distributor of photovoltaic solar energy units. The company was founded in 2015 by Arthur Manelas and Harry Linn. Manelas, formerly a research...
-
In January 2017, Susan and Clark Shipley, co-owners of Island Foods, Inc. began discussing the possibility of expanding their restaurant business from a single location in Glendale, Arizona, to two...
-
The 2015 annual report of The Procter & Gamble Company (P&G) is available at www.pginvestor.com. After reviewing P&Gs annual report, respond to the following questions: a. P&Gs net income and net...
Study smarter with the SolutionInn App