A manager of quality assurance team is trying to figure out the cost of quality (COQ)...
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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
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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
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