LearningObjectivesAfter studying Chapter 12, you will be .docxcroysierkathey
LearningObjectives
After studying Chapter 12, you will be able to:
Explain relationships among the costs of quality categories.
Understand the concepts of target costing and kaizen costing.
Distinguish between value-added and nonvalue-added activities.
Describe various types of non�inancial performance measures.
Identify non�inancial performance measures for multinational companies.
Comprehend the elements of a balanced scorecard.
Describe benchmarking techniques to improve productivity and quality.
12 Costs of Quality and Other Cost ManagementIssues
jacoblund/iStock/Thinkstock
Explain strategies to enhance productivity such as downsizing and business process
reengineering.
TQMandtheNeedtoMeasureQualityCosts
Pete Moss, considered the ace troubleshooter for DeKalb Fertilizer Company, was sent to its Georgia regional
of�ice by “Big Dan” DeLion, president of DeKalb, about 15 months ago. What he found was “big trouble.” The
region was losing about $400,000 per month—mostly from waste, low productivity, and customer warranty
claims. Revenues were declining, and too many customers were unhappy. This was Spring 2018, long after
Total Quality Management (TQM) was a cliché and a norm in most �irms. Yes, DeKalb had a TQM program that
“Big Dan” had announced in late 2019. Signs had been posted about quality being “No. 1.” A consulting �irm
had conducted seminars for workers, statistical control charts were maintained, and managers had
increased inspections. Faster response to warranty claims had been implemented through a costly system to
guarantee a 24-hour response to any customer problem.
Yet, productivity declined, scrap was up, and warranty costs soared. Workers saw the TQM program as a
management project. Managers blamed much of the problem on the lack of union cooperation and of
employee concern. No speci�ic quality goals were set. Everyone lacked a sense of urgency. Pete’s arrival
brought a sudden change: meetings with line workers quickly pointed to key production problems, warranty
claims were grouped to identify failure causes, landscape designers and on-site supervisors were brought
together to analyze failures, and certain changes were made “overnight.” A goal of cutting scrap by 50% in
three months was set.
At every step, the same question came up: “What’s this costing us?” Pete, knowing that this question was key
at other plants, sought out Rose Bush, the plant cost accountant. Rose was in the middle of an ABC study and
had begun to de�ine new activity centers and cost drivers. While not an easy task, Rose was able to modify
her system rather quickly to identify quality costs: which, where, and how much. Pete and Rose became allies,
promoting each other’s views to managers and employees alike. Within two months, Rose gave Pete a 2019
costs of quality analysis. These costs totaled a surprising 15% of revenues. Of this, little was spent on
prevention, about 30% was spent on appraisal, nearly 45% went to �ixing internal fai ...
DHL Quality Control Manual Quality Management (BADM370).docxmariona83
DHL Quality Control Manual
Quality Management (BADM370)
Unit III: Individual Project
Student name
5 September 2018
TABLE OF CONTENTS
History of Quality Management 1
Founders of Quality Management 1
Total Quality Management Systems 1
The Role of Leadership 2
Strategic Issues 2
Management as a Role Model 2
Modern Metrics 2
General Quality Strategies and Tools 3
Customer Expectations 3
Designing Quality in 3
Defining Metrics 3
Mistake-proofing 3
Kaizen 3
Six Sigma 3
Quality Tactics and the Logistics and Supply Chain Functions 4
Internal and External Tools 4
Roll-Out 5
Introduction to Quality Management
Quality classification varies in numerous organizations. Organizational expectations of quality requirements are directly correlated to what customers expect in a product or service. Prior to the early 1900’s the concept of quality management was simplistic in nature. Basic forms of quality management can be traced back to the medieval times when master craftsmen would assess the quality of products and services. Modern day quality management was initially studied and formally introduced to manufacturing organizations by a mechanical engineer named Fredrick W. Taylor. For years, Taylor conducted research on manufacturing processes and how quality can be improved to increase efficiency in production. Based on his studies, Taylor published The Principles of Scientific Management in which he presented statistical findings on how to effectively implement quality management practices.
In conjunction to Taylor’s time study, Frank and Lillian Gilbreth focused on motion and efficiency study to improve the quality management processes that later paves way for the modern-day quality management systems of ISO. Another highly qualified mechanical engineer, Henry Gantt, created charts to help managers plan and monitor project tasks. Gantt also determined that employees needed to be paid based on performance evaluations. The scientific studies have improved standards and increased profitability for many businesses. This was even more evident following the work of engineer and scientist, W. Edwards Deming. Deming utilized Walter Shewhart’s Plan-Do-Check-Act Cycle for total quality management (TQM) to assist the Union of Japanese Scientists and Engineers (JUSE) in rebuilding economic strength following the aftermath of World War II.
The emphasis on total quality management (TQM) is imperative today. Businesses, like Deutsche Post DHL Group, have adopted specific methods for implementing TQM within the organization. The ISO 9000 quality management system presents standardized requirements for achieving TQM. The Plan-Do-Check-Act Cycle has also attributed to successful management assessments as well. Another frequently used system is Deming’s 14 Points. The benefits of these systems outweigh the cons. The systems have saved businesses countles.
Process improvement for General Counsel and Law FirmsGeorge Dunn
Process improvement for General Counsel and Law Firms by George Dunn, President CRE8 Independent Consultants. A Follow Up To the 26th Annual General Counsel Conference. A white paper discussion of how law firms should approach process improvement using: Continuous process improvement; Business Process Management; Re-engineering; Lean and Six Sigma process improvement methods.
Running head QUALITY TRAINING MANUAL .docxtoltonkendal
Running head: QUALITY TRAINING MANUAL 1
Quality Training Manual 13
Quality Training Manual
Felicia Jones
12/06/2016
Table of Contents
Evolution of quality management 3
Introduction 3
i. History of the quality management evolution 3
ii. Why QM is needed 4
Week 2: The Role of Leadership 5
Senior management's role in successful quality improvement programs 5
Senior management’s role in the large-scale strategic quality programs 5
Why firms should adopt the roles 5
How management should derive the metrics 6
Week 3: General Quality Strategies and Tools 7
i. Establishing customer expectations 7
ii. Designing quality in 7
iii. Defining metrics 7
iv. Mistake-proofing 7
v. Kaizen 7
vi. Six Sigma 7
Week 4: Quality Tactics and the Logistics and Supply Chain Functions 8
i. What tools are applicable internally 8
ii. What tools are applicable externally with vendors 8
Part 2: Week 5: Roll-Out 9
i. A communication plan 9
ii. Recommended sequence of steps to get personnel trained 9
iii. Stakeholders on board (e.g., the vendor base, trucking companies, warehouse personnel) 9
References 10
Evolution of quality managementIntroduction
i. History of the quality management evolution
Total quality management was started by Naval Air Systems Command in an attempt to describe the Japanese-style management approach to improving quality. Before TQM, japan would produce products that were imitations of other products but after the inception of the same, they set new standards to the production process (Nederpelt, 2012). The rest of the world soon followed the steps of japan in their processes, product and organizational production factors. The quality management as we know it today was pioneered by some of the industrial developers such as Deming, Dodge and Romin. It is definition and application occurs in the analysis of quantitative and qualitative processes, processes and economic theories. When it started back in the mid age, the focus was all about the end product but nowadays, it has evolved to include the services offered (Littlefield & Roberts, 2012).
Quality management process basically involves four main components that need to be adhered to in order to make the process successful. They include the quality planning which is the first step and includes preparing the measuring standards and desired output quality. The other steps are the quality assurance and quality control which involves measuring the actual product and comparing it with the standards put in place. Quality improvement is the last stage and involves the reconciliation of the deviations in order to make the products and services to the desired level and in most cases, it involves rectifying the process to ensure that future items conform to the standards (Nederpelt, 2012).
ii. Why QM is needed
Custome ...
LearningObjectivesAfter studying Chapter 12, you will be .docxcroysierkathey
LearningObjectives
After studying Chapter 12, you will be able to:
Explain relationships among the costs of quality categories.
Understand the concepts of target costing and kaizen costing.
Distinguish between value-added and nonvalue-added activities.
Describe various types of non�inancial performance measures.
Identify non�inancial performance measures for multinational companies.
Comprehend the elements of a balanced scorecard.
Describe benchmarking techniques to improve productivity and quality.
12 Costs of Quality and Other Cost ManagementIssues
jacoblund/iStock/Thinkstock
Explain strategies to enhance productivity such as downsizing and business process
reengineering.
TQMandtheNeedtoMeasureQualityCosts
Pete Moss, considered the ace troubleshooter for DeKalb Fertilizer Company, was sent to its Georgia regional
of�ice by “Big Dan” DeLion, president of DeKalb, about 15 months ago. What he found was “big trouble.” The
region was losing about $400,000 per month—mostly from waste, low productivity, and customer warranty
claims. Revenues were declining, and too many customers were unhappy. This was Spring 2018, long after
Total Quality Management (TQM) was a cliché and a norm in most �irms. Yes, DeKalb had a TQM program that
“Big Dan” had announced in late 2019. Signs had been posted about quality being “No. 1.” A consulting �irm
had conducted seminars for workers, statistical control charts were maintained, and managers had
increased inspections. Faster response to warranty claims had been implemented through a costly system to
guarantee a 24-hour response to any customer problem.
Yet, productivity declined, scrap was up, and warranty costs soared. Workers saw the TQM program as a
management project. Managers blamed much of the problem on the lack of union cooperation and of
employee concern. No speci�ic quality goals were set. Everyone lacked a sense of urgency. Pete’s arrival
brought a sudden change: meetings with line workers quickly pointed to key production problems, warranty
claims were grouped to identify failure causes, landscape designers and on-site supervisors were brought
together to analyze failures, and certain changes were made “overnight.” A goal of cutting scrap by 50% in
three months was set.
At every step, the same question came up: “What’s this costing us?” Pete, knowing that this question was key
at other plants, sought out Rose Bush, the plant cost accountant. Rose was in the middle of an ABC study and
had begun to de�ine new activity centers and cost drivers. While not an easy task, Rose was able to modify
her system rather quickly to identify quality costs: which, where, and how much. Pete and Rose became allies,
promoting each other’s views to managers and employees alike. Within two months, Rose gave Pete a 2019
costs of quality analysis. These costs totaled a surprising 15% of revenues. Of this, little was spent on
prevention, about 30% was spent on appraisal, nearly 45% went to �ixing internal fai ...
DHL Quality Control Manual Quality Management (BADM370).docxmariona83
DHL Quality Control Manual
Quality Management (BADM370)
Unit III: Individual Project
Student name
5 September 2018
TABLE OF CONTENTS
History of Quality Management 1
Founders of Quality Management 1
Total Quality Management Systems 1
The Role of Leadership 2
Strategic Issues 2
Management as a Role Model 2
Modern Metrics 2
General Quality Strategies and Tools 3
Customer Expectations 3
Designing Quality in 3
Defining Metrics 3
Mistake-proofing 3
Kaizen 3
Six Sigma 3
Quality Tactics and the Logistics and Supply Chain Functions 4
Internal and External Tools 4
Roll-Out 5
Introduction to Quality Management
Quality classification varies in numerous organizations. Organizational expectations of quality requirements are directly correlated to what customers expect in a product or service. Prior to the early 1900’s the concept of quality management was simplistic in nature. Basic forms of quality management can be traced back to the medieval times when master craftsmen would assess the quality of products and services. Modern day quality management was initially studied and formally introduced to manufacturing organizations by a mechanical engineer named Fredrick W. Taylor. For years, Taylor conducted research on manufacturing processes and how quality can be improved to increase efficiency in production. Based on his studies, Taylor published The Principles of Scientific Management in which he presented statistical findings on how to effectively implement quality management practices.
In conjunction to Taylor’s time study, Frank and Lillian Gilbreth focused on motion and efficiency study to improve the quality management processes that later paves way for the modern-day quality management systems of ISO. Another highly qualified mechanical engineer, Henry Gantt, created charts to help managers plan and monitor project tasks. Gantt also determined that employees needed to be paid based on performance evaluations. The scientific studies have improved standards and increased profitability for many businesses. This was even more evident following the work of engineer and scientist, W. Edwards Deming. Deming utilized Walter Shewhart’s Plan-Do-Check-Act Cycle for total quality management (TQM) to assist the Union of Japanese Scientists and Engineers (JUSE) in rebuilding economic strength following the aftermath of World War II.
The emphasis on total quality management (TQM) is imperative today. Businesses, like Deutsche Post DHL Group, have adopted specific methods for implementing TQM within the organization. The ISO 9000 quality management system presents standardized requirements for achieving TQM. The Plan-Do-Check-Act Cycle has also attributed to successful management assessments as well. Another frequently used system is Deming’s 14 Points. The benefits of these systems outweigh the cons. The systems have saved businesses countles.
Process improvement for General Counsel and Law FirmsGeorge Dunn
Process improvement for General Counsel and Law Firms by George Dunn, President CRE8 Independent Consultants. A Follow Up To the 26th Annual General Counsel Conference. A white paper discussion of how law firms should approach process improvement using: Continuous process improvement; Business Process Management; Re-engineering; Lean and Six Sigma process improvement methods.
Running head QUALITY TRAINING MANUAL .docxtoltonkendal
Running head: QUALITY TRAINING MANUAL 1
Quality Training Manual 13
Quality Training Manual
Felicia Jones
12/06/2016
Table of Contents
Evolution of quality management 3
Introduction 3
i. History of the quality management evolution 3
ii. Why QM is needed 4
Week 2: The Role of Leadership 5
Senior management's role in successful quality improvement programs 5
Senior management’s role in the large-scale strategic quality programs 5
Why firms should adopt the roles 5
How management should derive the metrics 6
Week 3: General Quality Strategies and Tools 7
i. Establishing customer expectations 7
ii. Designing quality in 7
iii. Defining metrics 7
iv. Mistake-proofing 7
v. Kaizen 7
vi. Six Sigma 7
Week 4: Quality Tactics and the Logistics and Supply Chain Functions 8
i. What tools are applicable internally 8
ii. What tools are applicable externally with vendors 8
Part 2: Week 5: Roll-Out 9
i. A communication plan 9
ii. Recommended sequence of steps to get personnel trained 9
iii. Stakeholders on board (e.g., the vendor base, trucking companies, warehouse personnel) 9
References 10
Evolution of quality managementIntroduction
i. History of the quality management evolution
Total quality management was started by Naval Air Systems Command in an attempt to describe the Japanese-style management approach to improving quality. Before TQM, japan would produce products that were imitations of other products but after the inception of the same, they set new standards to the production process (Nederpelt, 2012). The rest of the world soon followed the steps of japan in their processes, product and organizational production factors. The quality management as we know it today was pioneered by some of the industrial developers such as Deming, Dodge and Romin. It is definition and application occurs in the analysis of quantitative and qualitative processes, processes and economic theories. When it started back in the mid age, the focus was all about the end product but nowadays, it has evolved to include the services offered (Littlefield & Roberts, 2012).
Quality management process basically involves four main components that need to be adhered to in order to make the process successful. They include the quality planning which is the first step and includes preparing the measuring standards and desired output quality. The other steps are the quality assurance and quality control which involves measuring the actual product and comparing it with the standards put in place. Quality improvement is the last stage and involves the reconciliation of the deviations in order to make the products and services to the desired level and in most cases, it involves rectifying the process to ensure that future items conform to the standards (Nederpelt, 2012).
ii. Why QM is needed
Custome ...
In their efforts to decrease costs, improve customer loyalty and extend brand reputation, organizations need a holistic, long-term view of enterprise quality management systems.
Business Process Re-Engineering by ADITI WALIAAditi Walia
For the first time ever, this presentation on BPR has a wide coverage of so many topics regarding BPR, it includes not only definition + issues affecting BPR + about core processes of business + history about BPR + General Model + Role of IT in BPR + its objectives + Outcomes as well as problems related to BPR in a very simple and fluent manner along with interactive diagrams and figures so as to aid even the naive or first time reader.
For many organisations there is an ever-increasing need to reduce cost.
Still, it’s as important as ever not to overreact. Failure to understand the impact of choices made now will squander an opportunity to add real value. It will also risk inflicting lasting damage that will make recovery needlessly difficult, and all amid a crisis of unknown duration.
This e-book from Hudson&Hayes provides a pragmatic approach to optimising operational costs in times of radical change and uncertainty. Amid the unusual conditions created by COVID-19, this approach is especially valuable.
For further information, please visit https://www.hudsonandhayes.co.uk/pragmaticcostreduction
Lean Strategies in Healthcare Revenue Cycle ManagementInvensis
Did you know? Revenue cycle inefficiencies accounted for 15% of 2.7 trillion spent on healthcare, or about $400 billion. Join Dr. Steven M Wagner to understand how to align continuous quality improvement through lean method for staff and management to overcome income obstacles in healthcare and help them to learn and experiment with strategies to address them.
FCB Partners Webinar: Measure What Matters FCBPartners
Join Steve Stanton, Managing Director of FCB Partners, as he leads a roundtable discussion on the challenge of managing metrics. This 30-minute webinar is an introduction to our new Master Class on Measurement (premiering November 18 in Boston).
Without question, measurement is the most difficult aspect of process management. With so many choices it’s tough to select the right measures and create an actionable scorecard. Too often, organizations measure what they can, measure what they can measure easily, or measure what they can measure easily that produces a positive number.
But, without a great measurement architecture, organizations can flounder with too many measures or misleading data, or just lagging indicators.
In this practical webinar, Steve will focus on the following themes:
Why is measurement so tough?
How can we find the right few measures for a process?
How to use measures effectively
How to improve the process of measurement itself
CASE STUDY COMMENTARY• Individual written task in Harvard sty.docxmoggdede
CASE STUDY COMMENTARY
• Individual written task in Harvard style format, cover page, table of contents, blocked text and reference list.
• The student must build a coherent discussion or argument in essay format, analyzing theories and models. Ethical theories, legal cases and case studies may be referred to when providing examples. Cite all sources.
• Students must write in complete sentences and develop paragraphs. No bullet points are allowed. Provide spacing between the sentences.
• Prepare and Introduction, Body, and Conclusion paragraphs.
• Sources must be used, identified, and properly cited.
• Format: PDF submitted through Turnitin
• The answers should analyse the following based on the case study provided with this task below the Rubrics:
1. Identify and explain the relevant parties in this case study?
2. Identify and explain in order the ethical issues related to each party involved in this case study? Cite your sources.
3. What ethical theories can each party use to support their behavior or decisions? Cite your sources.
4. Identify and discuss the points of law raised in the case? Cite your sources.
5. Identify and explain an additional case that supports or differentiates this case/situation.
Case study:
Cyber Harassment
In many ways, social media platforms have created great benefits for our societies by expanding and diversifying the ways people communicate with each other, and yet these platforms also have the power to cause harm. Posting hurtful messages about other people is a form of harassment known as cyberbullying. Some acts of cyberbullying may not only be considered slanderous, but also lead to serious consequences. In 2010, Rutgers University student Tyler Clementi jumped to his death a few days after his roommate used a webcam to observe and tweet about Tyler’s sexual encounter with another man. Jane Clementi, Tyler’s mother, stated, “In this digital world, we need to teach our youngsters that their actions have consequences, that their words have real power to hurt or to help. They must be encouraged to choose to build people up and not tear them down.”
In 2013, Idalia Hernández Ramos, a middle school teacher in Mexico, was a victim of cyber harassment. After discovering that one of her students tweeted that the teacher was a “bitch” and a “whore,” Hernández confronted the girl during a lesson on social media etiquette. Inquiring why the girl would post such hurtful messages that could harm the teacher’s reputation, the student meekly replied that she was upset at the time. The teacher responded that she was very upset by the student’s actions. Demanding a public apology in front of the class, Hernández stated that she would not allow “young brats” to call her those names. Hernández uploaded a video of this confrontation online, attracting much attention.
While Hernández was subject to cyber harassment, some felt she went too far by confronting the student in the classroom.
Case Study Chapter 5 100 wordsTranscultural Nursing in the.docxmoggdede
Case Study Chapter 5
100 words
Transcultural Nursing in the Community Community health clients belong to a variety of cultural groups. To gain acceptance, nurses must strive to introduce improved health practices that are presented in a manner consistent with clients’ cultural values. The student nurse is going to visit two different homes with the community health nurse with different cultural beliefs. 1. In preparation for the student nurse’s visits to two different homes, what five transcultural principles will assist in guiding community health nursing practice in these settings? 2. During the first visit, the student nurse has to conduct a cultural assessment by questioning the patient and observing the family dynamics. The community health nurse has requested that the student nurse assess for appropriate information in six major areas. What six major areas should the student nurse consider? 3. After the conclusion of the first visit, the community health nurse cautions the student nurse to be consciously aware of any ethnocentrism attitudes toward other cultures and the importance of cultural diversity. What is ethnocentrism and why is it so important to be conscious of cultural diversity?
.
More Related Content
Similar to 12 Costs of Quality and Other Cost Management Issuesjacobl.docx
In their efforts to decrease costs, improve customer loyalty and extend brand reputation, organizations need a holistic, long-term view of enterprise quality management systems.
Business Process Re-Engineering by ADITI WALIAAditi Walia
For the first time ever, this presentation on BPR has a wide coverage of so many topics regarding BPR, it includes not only definition + issues affecting BPR + about core processes of business + history about BPR + General Model + Role of IT in BPR + its objectives + Outcomes as well as problems related to BPR in a very simple and fluent manner along with interactive diagrams and figures so as to aid even the naive or first time reader.
For many organisations there is an ever-increasing need to reduce cost.
Still, it’s as important as ever not to overreact. Failure to understand the impact of choices made now will squander an opportunity to add real value. It will also risk inflicting lasting damage that will make recovery needlessly difficult, and all amid a crisis of unknown duration.
This e-book from Hudson&Hayes provides a pragmatic approach to optimising operational costs in times of radical change and uncertainty. Amid the unusual conditions created by COVID-19, this approach is especially valuable.
For further information, please visit https://www.hudsonandhayes.co.uk/pragmaticcostreduction
Lean Strategies in Healthcare Revenue Cycle ManagementInvensis
Did you know? Revenue cycle inefficiencies accounted for 15% of 2.7 trillion spent on healthcare, or about $400 billion. Join Dr. Steven M Wagner to understand how to align continuous quality improvement through lean method for staff and management to overcome income obstacles in healthcare and help them to learn and experiment with strategies to address them.
FCB Partners Webinar: Measure What Matters FCBPartners
Join Steve Stanton, Managing Director of FCB Partners, as he leads a roundtable discussion on the challenge of managing metrics. This 30-minute webinar is an introduction to our new Master Class on Measurement (premiering November 18 in Boston).
Without question, measurement is the most difficult aspect of process management. With so many choices it’s tough to select the right measures and create an actionable scorecard. Too often, organizations measure what they can, measure what they can measure easily, or measure what they can measure easily that produces a positive number.
But, without a great measurement architecture, organizations can flounder with too many measures or misleading data, or just lagging indicators.
In this practical webinar, Steve will focus on the following themes:
Why is measurement so tough?
How can we find the right few measures for a process?
How to use measures effectively
How to improve the process of measurement itself
Similar to 12 Costs of Quality and Other Cost Management Issuesjacobl.docx (20)
CASE STUDY COMMENTARY• Individual written task in Harvard sty.docxmoggdede
CASE STUDY COMMENTARY
• Individual written task in Harvard style format, cover page, table of contents, blocked text and reference list.
• The student must build a coherent discussion or argument in essay format, analyzing theories and models. Ethical theories, legal cases and case studies may be referred to when providing examples. Cite all sources.
• Students must write in complete sentences and develop paragraphs. No bullet points are allowed. Provide spacing between the sentences.
• Prepare and Introduction, Body, and Conclusion paragraphs.
• Sources must be used, identified, and properly cited.
• Format: PDF submitted through Turnitin
• The answers should analyse the following based on the case study provided with this task below the Rubrics:
1. Identify and explain the relevant parties in this case study?
2. Identify and explain in order the ethical issues related to each party involved in this case study? Cite your sources.
3. What ethical theories can each party use to support their behavior or decisions? Cite your sources.
4. Identify and discuss the points of law raised in the case? Cite your sources.
5. Identify and explain an additional case that supports or differentiates this case/situation.
Case study:
Cyber Harassment
In many ways, social media platforms have created great benefits for our societies by expanding and diversifying the ways people communicate with each other, and yet these platforms also have the power to cause harm. Posting hurtful messages about other people is a form of harassment known as cyberbullying. Some acts of cyberbullying may not only be considered slanderous, but also lead to serious consequences. In 2010, Rutgers University student Tyler Clementi jumped to his death a few days after his roommate used a webcam to observe and tweet about Tyler’s sexual encounter with another man. Jane Clementi, Tyler’s mother, stated, “In this digital world, we need to teach our youngsters that their actions have consequences, that their words have real power to hurt or to help. They must be encouraged to choose to build people up and not tear them down.”
In 2013, Idalia Hernández Ramos, a middle school teacher in Mexico, was a victim of cyber harassment. After discovering that one of her students tweeted that the teacher was a “bitch” and a “whore,” Hernández confronted the girl during a lesson on social media etiquette. Inquiring why the girl would post such hurtful messages that could harm the teacher’s reputation, the student meekly replied that she was upset at the time. The teacher responded that she was very upset by the student’s actions. Demanding a public apology in front of the class, Hernández stated that she would not allow “young brats” to call her those names. Hernández uploaded a video of this confrontation online, attracting much attention.
While Hernández was subject to cyber harassment, some felt she went too far by confronting the student in the classroom.
Case Study Chapter 5 100 wordsTranscultural Nursing in the.docxmoggdede
Case Study Chapter 5
100 words
Transcultural Nursing in the Community Community health clients belong to a variety of cultural groups. To gain acceptance, nurses must strive to introduce improved health practices that are presented in a manner consistent with clients’ cultural values. The student nurse is going to visit two different homes with the community health nurse with different cultural beliefs. 1. In preparation for the student nurse’s visits to two different homes, what five transcultural principles will assist in guiding community health nursing practice in these settings? 2. During the first visit, the student nurse has to conduct a cultural assessment by questioning the patient and observing the family dynamics. The community health nurse has requested that the student nurse assess for appropriate information in six major areas. What six major areas should the student nurse consider? 3. After the conclusion of the first visit, the community health nurse cautions the student nurse to be consciously aware of any ethnocentrism attitudes toward other cultures and the importance of cultural diversity. What is ethnocentrism and why is it so important to be conscious of cultural diversity?
.
Case Study Chapter 10 Boss, We’ve got a problemBy Kayla Cur.docxmoggdede
Case Study: Chapter 10
Boss, We’ve got a problem
By Kayla Curry
Background
Charlie Upton was the most beloved citizen of the close knit village of Summit. Everyone knew and respected Charlie. As a 17 year veteran of the police department, he was valued and admired for his unyielding care for the community. Charlie Upton gained acclaim for his heavy involvement in youth activities. He coached the boys pee-wee football team to victory in back to back seasons. He was known to get passionate about a bad call by referees. Coach Upton cared so much for his team, he generously offered to reward the team with a trip to Disney World. The man was even President of the local school board at one time. The highlight of the Christmas season was when he would dress up as a convincing Santa Claus for all of Summit’s children and visit the elementary schools.
Cont.
Charlie Upton’s popularity within Summit was unparalleled. Upton was known to rub shoulders with the Village’s elite. Primarily Village Administrator Tim Bell, whose son was star quarterback of Upton’s pee-wee team, and his own boss Police Chief Martin Owens. It was safe to say, nobody was expecting the coming scandal that would forever shake the community of Summit.
When Chief Martin Owens first heard the news, he decided to run straight to Administrator Tim Bell for direction. Highly unsettled, together they came up with a plan to combat the coming storm.
Cont.
Chief Owens and Administrator Bell called Charlie Upton into the Chief’s office and demanded an explanation to the allegations brought against him. A 12 year old boy who was being treated by a social worker for emotional problems, claimed that he had been sexual molested by none other than the Department’s beloved Charlie Upton.
When confronted with the accusations Upton replied simply, “well, there goes 17 years of police work down the drain.” Taking Upton’s non-denial as admission of guilt, Bell furiously demands he surrenders his badge and places him on unpaid leave on the spot. An outside agency would handle a 3 week investigation into the charges and in the meantime nobody outside of those three parties would know why Charlie Upton was being investigated.
Cont.
The investigation was completed and Upton was charged with criminal sexual conduct with a minor. He was immediately terminated. Against legal advice Administrator Bell refused to pay Upton’s separation pay of $26,000 in unused vacation time and sick leave.
From that point, the Village of Summit turned into a political circus:
Anticipating tough questions, Bell and Owens crafted their responses ahead of time
Pending public announcement Administrator Bell held a closed door meeting with the Council informing them that the Officer in charge of youth offenses was a child molester
Three of the Council members didn’t believe Upton would do such a thing and demanded Bell put him back in a uniform and on the streets
When the public was made aware they went int.
CASE STUDY Caregiver Role Strain Ms. Sandra A. Sandra, a 47-year-o.docxmoggdede
CASE STUDY: Caregiver Role Strain: Ms. Sandra A. Sandra, a 47-year-old divorced woman, received a diagnosis of stage 3 ovarian cancer 4 years ago, for which she had a total hysterectomy, bilateral salpingo- oophorectomy, omentectomy, lymphadenectomy, and tumor debulking followed by chemotherapy, consisting of cisplatin (Platinol), paclitaxel (Taxol), and doxorubicin (Adriamycin). She did well for 2 years and then moved back to her hometown near her family and underwent three more rounds of secondline chemotherapy. She accepted a less stressful job, bought a house, renewed old friendships, and became more involved with her two sisters and their families. Sandra developed several complications, including metastasis to the lungs. Then she could no longer work, drive, or care for herself. She had been told by her oncologist that there was nothing else that could be done and that she should consider entering a hospice. She met her attorney and prepared an advance directive and completed her will. She decided to have hospice care at home and, with the help of her family, set up her first floor as a living and sleeping area. She was cared for by family members around the clock for approximately 3 days. Sandra observed that she was tiring everyone out so much that they could not really enjoy each other’s company. At this time, she contacted the Visiting Nurse Association (VNA) to seek assistance. Her plan was to try to enjoy her family and friend’s visits. After assessment, the VNA nurse prioritized her problems to include fatigue and caregiver role strain. Other potential problem areas that may need to be incorporated into the care plan include anticipatory grieving and impaired comfort.
Reflective Questions
1. What are some of the stresses on Sandra’s middle-aged sisters and their families?
2. What resources are available to manage these stresses and support the sisters while caring for their dying sister Sandra?
3. Describe Sandra’s feelings about dependency and loss of autonomy because she is unable to do her own activities of daily living any longer
.
Case Study Answers Week 7 and 8Group OneIn your grou.docxmoggdede
Case Study Answers Week 7 and 8
Group One
In your group, prepare a business portfolio analysis on the InFocus businesses
Focus on the following:
Prepare the following charts and plot the InFocus Beverages business:
BCG matrix
GE-McKinsey matrix
Synergy matrix
Provide a recommendation advising InFocus what it should do with this business
Group Two
In your group, prepare a business portfolio analysis on the InFocus businesses
Focus on the following:
Prepare the following charts and plot the InFocus Snackfoods business:
BCG matrix
GE-McKinsey matrix
Synergy matrix
Provide a recommendation advising InFocus what it should do with this business
Group Three
In your group, prepare a business portfolio analysis on the InFocus businesses
Focus on the following:
Prepare the following charts and plot the InFocusSupplements business:
BCG matrix
GE-McKinsey matrix
Synergy matrix
Provide a recommendation advising InFocus what it should do with this business
Group Four
In your group, prepare a business portfolio analysis on the InFocus businesses
Focus on the following:
Prepare the following charts and plot the InFocus Sportswear business:
BCG matrix
GE-McKinsey matrix
Synergy matrix
Provide a recommendation advising InFocus what it should do with this business
2
InFocus Business Statistics
Market Statistics
Week 7 inFocus case
3
BCG Matrix
GE-Mckinsey Matrix
Synergy Matrix
Recommendations
InFocus Beverages: Star, Growth, Fit – Keep and invest in this business
InFocus Snack foods: Cash Cow, Selective, Giver – Keep this business but minimise further investment
InFocus Supplements: Question Mark, Selective, Taker – Keep this business and consider further investment
InFocus Sportswear: Dog, Harvest, Misfit – Sell this business
Group One
In your group, prepare a report for Jackie on InFocus’s dynamic capability
Focus on the following:
Explain the concept of dynamic capability
Discuss the principle of core competency and identify an InFocus core competency
List three types of activities InFocus could perform to develop dynamic capabilities and provide a specific example for each
Group Two
In your group, prepare a report for Jackie on InFocus’s dynamic capability
Focus on the following:
Explain the concept of learning
Discuss how learning is captured and leveraged by organisations
Demonstrate how InFocus could apply the 5 why process to learn more about its current processes
Group Three
In your group, prepare a report for Jackie on InFocus’s dynamic capability
Focus on the following:
Explain the concept of integration
Discuss why the successful integration of strategic assets and new learnings into business processes is so important
List and discuss three techniques or models that InFocus could integrate into its current processes and recommend the adoption of one of them
Group Four
In your group, prepare a report for Jackie on InFocus’s dynamic capability
Focus on the following:
Explain the need for transformatio.
Case Study and Transition Plan TemplateCase StudyD.docxmoggdede
Case Study and Transition Plan Template
Case Study
Darren is a 17-year-old student. He is a junior at his local high school. Darren has a specific learning disability in reading. He attends the resource classroom for English classes. All other courses are in the general education setting with accommodations, modified grades (for some subjects), and push-in supports from the special education teacher at least three times per week for core courses requiring extensive reading and writing. He is currently decoding at the fifth grade reading level, but reading comprehension is at the third grade level. Fluency is at the fifth grade level.
Darren also has difficulty with written expression, and needs graphic organizers and pre-writing activities to help him develop a thesis statement and organize his written work. His handwriting is difficult to read and it takes him a long time to complete written assignments without assistive technology and software. He can be impulsive, and will sometimes miss important portions of written directions resulting in frequent errors on assignments. He frequently turns in assignments late or not at all. He needs assistance remembering to take his medication at school and at home. He has tried to pass a driver’s license exam so he can get a driver’s permit to learn how to drive. However, his impulsivity and reading ability have affected his performance and he has not been able to pass the written exam as required by the state motor vehicle department.
Darren loves cars. He can describe makes and models of practically any vehicle and describe the type of engine and standard features. He also helps his dad and older brother work on vehicles in the family’s car restoration business. Darren can wash the cars, detail the interior, and clean the windows. He has recently started doing oil changes with some supervision.
His parents are concerned about Darren’s impulsivity, his inability to remember directions, and his unrealistic views of his abilities. His mother is concerned about him needing prompts to brush his teeth, wear clean clothes, and comb his hair before leaving the house. He tends to blame others when he is not successful and makes excuses for not following through on responsibilities. His father expressed concern about Darren’s difficulty in putting tools away in the shop and cleaning up his work area after he changes the oil in a vehicle. Teachers express concern over late assignments, a reluctance to take responsibility for his own actions, and the need for constant prompts and reminders. Darren uses an electronic spelling dictionary and a word processor with word prediction software and spell check to complete assignments.
Darren’s parents indicated on a parent survey that they do not know if Darren would be eligible to receive adult services, social security, and they do not know how to contact adult service agencies.
During a student interview, Darren stated he wanted to become a professional foo.
Case Study AnalysisRead Compassion for Samantha Case Study.docxmoggdede
Case Study Analysis
Read
Compassion for Samantha Case Study
Samantha Lizonia has been with Prestige Shipping for 35 years. As one of the first employees hired when the business launched, she has weathered many storms with the company, including receiving late paychecks, times of slow growth, a year where she worked 7 days a week without fail, and working for 4 years in a row without a vacation or sick day. As the office manager, she greets all visitors and is the first point of contact when customers and vendors calls. The CEO always praises Samantha and often states that without her diligence and faithfulness all those years they may not have survived.
Unfortunately, Samantha’s job performance has been declining. She has submitted reports untimely and unfinished, been late to work, and has become cold and difficult to work with. Coworkers and vendors complain about her rude comments and harsh demeanor. The CEO spoke to Samantha about her performance and behavior, but nothing has changed. Actually, she did not appreciate being reprimanded, and her behavior got worse. However, during their meeting, the CEO did find out that Samantha is planning on retiring in 2 years, and the value of her retirement savings plan has drastically declined.
If Samantha would have been any other employee, she would have been fired a long time ago. Because of her age, years of loyal service, lack of retirement savings, and the CEO’s commitment to continuing the family-like environment, this is a difficult choice. However, he knows that he must come to a decision about her soon.
Consider
the following:
SHRM ethical guidelines
Ethical processes for hiring, evaluating, disciplining, and terminating employees
Regulations for equal opportunity and employee rights
Commonly held values such as compassion, courage, integrity, and wisdom that can help people clarify their differences with others, understand their positions, and communicate values more effectively
Disagreements about moral choices in an organization are a natural part of doing business. Appreciate the viewpoints of other parties instead of vilifying them. Anticipate these disagreements by developing strategies for dealing with the most common conflicts you will face in your work.
Your personal strengths, unique voice, core identity and desired self-image.
Potential arguments that others will use to support immoral or unethical behavior
Write
a 1,050- to 1,400-word analysis of the scenario. Include the following:
Describe the ethical dilemma presented in the scenario, and explain why it is an ethical dilemma.
Describe the government and industry regulations relevant to this scenario.
Explain why specific elements from SHRM guidelines would apply to this situation.
Describe the ethical way to resolve the issue with Samantha.
Justify your resolution.
Format
your paper according to APA guidelines.
Reference
2 peer-reviewed scholarly ariticles
.
Case Study AnalysisAn understanding of cells and cell behavi.docxmoggdede
Case Study Analysis
An understanding of cells and cell behavior is a critically important component of disease diagnosis and treatment. But some diseases can be complex in nature, with a variety of factors and circumstances impacting their emergence and severity.
Effective disease analysis often requires an understanding that goes beyond isolated cell behavior. Genes, the environments in which cell processes operate, the impact of patient characteristics, and racial and ethnic variables all can have an important impact.
An understanding of the signals and symptoms of alterations in cellular processes is a critical step in the diagnosis and treatment of many diseases. For APRNs, this understanding can also help educate patients and guide them through their treatment plans.
In this Assignment, you examine a case study and analyze the symptoms presented. You identify cell, gene, and/or process elements that may be factors in the diagnosis, and you explain the implications to patient health.
Scenario: Case study
An 83-year-old resident of a skilled nursing facility presents to the emergency department with generalized edema of extremities and abdomen. History obtained from staff reveals the patient has history of malabsorption syndrome and difficulty eating due to lack of dentures. The patient has been diagnosed with protein malnutrition
To prepare:
By Day 1 of this week, you will be assigned to a specific case study for this Case Study Assignment. Please see the “Course Announcements” section of the classroom for your assignment from your Instructor.
The Assignment (1- to 2-page case study analysis)
Develop a 1- to 2-page case study analysis in which you:
Explain why you think the patient presented the symptoms described.
Identify the genes that may be associated with the development of the disease.
Explain the process of immunosuppression and the effect it has on body systems
Develop a 1- to 2-page case study analysis, examining the patient symptoms presented in the case study. Be sure to address the following:
Explain why you think the patient presented the symptoms described.
28 (28%) - 30 (30%)
The response accurately and thoroughly describes the patient symptoms.
The response includes accurate, clear, and detailed reasons, with an explanation for the symptoms supported by evidence and/or research, as appropriate, to support the explanation.
25 (25%) - 27 (27%)
The response describes the patient's symptoms.
The response includes accurate reasons, with an explanation for the symptoms supported by evidence and/or research, as appropriate, to support the explanation.
23 (23%) - 24 (24%)
The response describes the patient's symptoms in a manner that is vague or inaccurate.
The response includes reasons for the symptoms, with explanations that are vague or based on inappropriate evidence/research.
0 (0%) - 22 (22%)
The response describes the patient symptoms in a manner that is vague and inaccurate, or the de.
Case Study Analysis and FindingsThe final assignment for this co.docxmoggdede
Case Study Analysis and Findings
The final assignment for this course is a Case Study Analysis and Findings. The purpose of the Case Study Analysis and Findings is for you to utilize the knowledge and skills developed in this course to evaluate the psychological methods and theoretical models of criminal behavior as well as the police psychology and the psychological aspects of all participants in the criminal justice process relative to a specific criminal episode. An overview of forensic psychology as it relates to the criminal justice process should be included.
This course has addressed issues of psychological theory and practice relative to the functioning of the criminal justice system. These impacts range from the offender, to law enforcement and investigations, to practices and legalities of law in the courtroom, to the participation and impact of victims and witnesses, and to treatment and sentencing rendered in the correctional environment. Research continues regarding the biological, genetic, psychological, and social impacts on mental health and resulting behavior. These findings will continue to find their way into the legal implications of the psychological influences on behavior.
The focus of your Case Study Analysis and Findings paper will be based, in large part, on the weekly assignments you completed throughout the course. In each of the weekly assignments, you address a particular aspect of the overall criminal case and offender that you selected in Week 1.
In the Week 1 Literature Review assignment, you provide the resources necessary for each phase of your final analysis and findings.
In the Week 2 Case Summary and Offender Profile assignment, you provide an analysis of the behavior of the offender relative to the psychological history and evaluation of the offender.
In the Week 3 Investigative Psychology assignment, you provide an analysis of the behavior of the investigators including the analysis of the crime scene. This assignment also describes the psychological, behavioral, environmental, and cognitive factors that influence the investigation, including intervention strategies to reduce the impact of stress on law enforcement.
In the Week 4 Legal Psychology and Victimization assignment, you provide a discussion on the role of the psychological profile of the offender and the victims have on the presentation of evidence in court, including the analysis of legal psychology as it is implemented in the criminal justice process.
Finally, in the Week 5 Psychological Treatment in Correctional Settings assignment, you provide a discussion on the impacts the psychological make–up of offenders have on the functional responsibilities of incarceration facilities and how the biases and assumptions of correctional service providers influence their assessment of and interaction with these offenders.
Utilizing your research and analyses completed for the Weeks 1 through 5 assignments, consider the psychological methods .
Case Study Analysis A TutorialWhat is it Case studies are a .docxmoggdede
Case Study Analysis: A Tutorial
What is it? Case studies are a popular and effective teaching tool for business and non-business students. Often described as the “Harvard method,” case studies permit students to apply learned concepts and techniques to “real world” situations. Although our assignments are individual work only, case studies may also allow students to use their knowledge of course material in addressing business/marketing problems or issues through collaboration (much as in the workplace). Case studies may be quite detailed or simple in scope. In some assignments, strong familiarity with financial analysis and operations management are needed to successfully complete the case.
How to be effective? For any case study assignment, common sense; research; and a good understanding of basic marketing/management concepts are needed. You should carefully read the case several times, highlighting information/details that you believe important. Understand what the assignment is requesting. In the Popchips and Grand Theft Auto cases, you are asked questions for response. In addressing each question, you should justify (document) your answer with case information and additional Internet research. All sources should be properly cited.
It is important that you do not assume anything. Many students err in case analysis by confusing personal opinion or inference (guess) with the facts presented in the case. It is permissible (and, often required) to supplement case information with various research methods (i.e., observation and/or Internet) gain a clearer understanding of the issues, forces, questions and requirements of the case. Rely on the text book and lecture notes to help you.
Put yourself in the case as the key decision maker(s). What needs to be addressed concerning marketing? What could have been done differently? What should the marketing strategy (plan) be going forward? Be prepared to explain your reasoning.
Most importantly, don’t procrastinate on this assignment. Your time well-spent will result in a well-done report.
In summary, to complete a case study assignment successfully, you must:
1. Read the case thoroughly several times.
2. Complete independent research about the case issue/topic.
3. Identify and verify sources.
4. Answer the questions contained in the case with completeness and accuracy using case and research information.
5. Write your report and proof it for grammar, spelling and punctuation mistakes.
A Rite of Passage Approach
Designed to Preserve the
Families of Substance-Abusing
African American Women
Vanesta L. Poitier, Makini Niliwaambieni, and
Cyprian Lamar Rowe
This article approaches the treatment of addicted
African American women in ways drawn from
traditional African culture. While the modern African
American woman is clearly not the same as her
continental African foremother, the reality of her life
is still predicated on the basis of her culture and
her material wealth or.
Case Study AlcoholCertain occasional behaviors can cause more tro.docxmoggdede
Case Study: Alcohol
Certain occasional behaviors can cause more trouble than one might think. For many college students, drinking does not seem dangerous and is often viewed as a normal. Alcohol absorption and factors involved with alcohol metabolism are rarely discussed.
Review the following case study and answer the questions in essay format.
Paulo is a sophomore in college. On the weekends he goes out with his friends and will have anywhere from 5-8 drinks during the evening. Paulo met his friends during freshman year and they all agree that drinking is part of the college experience. Paulo always has a hangover after a big night of drinking, but doesn't think it's an issue because he never drinks on the weekdays and it isn't affecting his schoolwork. On a football weekend that included a lot of drinking, one of Paulo's friends, Luke, got into a fight and ended up in the emergency room. The doctor told Luke his Blood Alcohol Concentration was so high that he nearly had alcohol poisoning. Although Paulo knew drinking and driving could be dangerous, Paulo was surprised that the doctor warned Luke about "binge drinking." Paulo began to wonder whether his drinking was affecting his own health.
How common is binge drinking in college? What factors increase an individual's risk for the short and long term effects of alcohol? Why do college students like Paulo feel it is part of the college experience to drink regularly? What should universities, parents, friends, and others do to address high risk drinking and to change these behaviors?
4 Essays, 1 essay per Part:
Part I: Finding the Perfect Balance
Chapter # 1 General Health Concepts
Chapter # 2 Promoting and Preserving Your Psychological Health
Chapter # 3 Managing Stress: Managing Stress and Coping with Life Challenges
Chapter # 4 Preventing Violence and Injury
Part II: Building Healthy Relationships
Chapter # 5 Understanding Sexuality
Chapter # 6 Considering your Reproductive Alternatives
Part III: Avoiding Risks Related to Bad Habits
Chapter # 7 Recognizing and Avoiding Addiction and Drug Use
Chapter # 8 Drinking Alcohol Responsibly and Ending Tobacco Use
Part IV: Building Healthy Lifestyles
Chapter # 9 Eating for a Healthier You
Chapter # 10 Reaching and Maintaining a Healthy Weight
.
Case study A group of nurse educators are having a discussion about.docxmoggdede
Case study: A group of nurse educators are having a discussion about the minority student nurses. The nurse educators believe that there are numerous barriers to minority student success in nursing education. The nurse educators want to develop strategies to increase the success rate in graduation of these students.
1. The nurse educators make a list of the barriers that exist for minority student success. What are common barriers for minority student success?
2. The group of nurse educators is acutely aware that different generations are represented in nursing today. These different generations have different attitudes and value systems, which greatly affect the settings in which they work. What are the key characteristics of the four generational groups that are present in today’s workforce?
3. Analyze and describe how the different generations present in nursing today affect nursing care and the nursing workplace.
.
Case study ;1Callista Roy and Betty Neumans theories view the.docxmoggdede
Case study ;1
Callista Roy and Betty Neuman's theories view the person (individual, group, or community) as a holistic adaptive system that constantly interacts with the internal and external environments. Both theories view the person as being the center of nursing and present health/wellness and illness as parts of the same continuum, however there are some key assumptions that are different. As such, select one of the theories and identify1 assumption of the theory and discuss how the care rendered for this patient by an advanced practice nurse would be structured (assessment, diagnosis, planning, intervention, evaluation) according to the theory. Give 2 specific examples of interventions that you anticipate will be included in the patient's care.
Mr. Reynolds is a 32 year-old male patient hospitalized on the orthopedic unit of the hospital. He is status-post motorcycle accident and right leg below the knee amputation. He has a history of Depression and Schizophrenia. He is currently separated from his wife and estranged from his family. He is awaiting social work for placement in a rehabilitation facility, where he will continue his recovery.
.
Case Study 9Running head BP & THE GULF OF MEXICO OIL SPILLC.docxmoggdede
Case Study 9
Running head: BP & THE GULF OF MEXICO OIL SPILL
Case Study: BP & The Gulf of Mexico Oil Spill
Central Michigan University
Organizational Dynamics & Human Behavior – MSA 601
Abstract
This paper will focus on the monumental disaster and ensuing public relations nightmare of British Petroleum (BP). This disaster of course was brought about by the oil rig explosion and fire in the Gulf of Mexico. BP is a multinational conglomerate of gargantuan proportions. They have molded and perfected their public image over decades. This paper will take a look at the lapses in BP’s management and public relations efforts and what measures the company should have taken.
BP & the Gulf of Mexico Oil Spill
The reason that the authors selected to evaluate British Petroleum (BP) for a case study was due in no small part to the endless media attention given to the oil spill in the Gulf. BP is an extremely popular brand that everyone in this country undoubtedly is effected by in one way or another. One of the initial reasons for choosing BP was the unmitigated disaster put forth on the public relations front in explaining the company’s efforts at dealing with the Gulf of Mexico oil crisis. The authors were further intrigued at this assignment for the poor leadership and decision making acumen of the former CEO Tony Hayward (CMU, 2009, p. 227). With this multi-focal approach, the study will highlight the conflicting messaging presented to the public and the lackluster and ultimately ineffective leadership within the organization.
BP is a huge multinational conglomerate whose primary focus is the petroleum industry. The company does business in over 30 countries around the globe. Its annual operating income is $239 billion dollars with over $14 billion dollars in profit in the year 2009. The company employs over 80,300 individuals and owns 16 refineries worldwide. BP operates several subsidiaries under the names AM/PM markets, BP and ARCO gas stations, Aral gas stations in Germany, Wild Bean Café, and Castrol Motor Oil (BP at a glance, 2010).
The competition within the petroleum industry is not as plentiful as one might think. There are actually very few players in the game. Due to the limited number of refiners of crude in this country the oil from various sources are blended prior to coming to the consumer. BP doesn’t have much use for the service station business anymore. In 2007, it announced plans to sell the last 700 stations that it hadn’t already sold to franchisees. The company chose to focus on finding and collecting oil. Once companies make a discovery, it comes out of the ground and ends up at a refinery. There, it can be mixed with oil that a variety of companies have poured into the tanks. This is further evidenced by BP’s plans to divest itself of its remaining 700 gas service stations. The highest percentage of income is made from oil exploration and extraction and not in the selling of gasoline at its stations (Lieber, 2010).
BP.
Case Study 9-1 IT Governance at University of the Southeast. Answer .docxmoggdede
Case Study 9-1 IT Governance at University of the Southeast. Answer question 1. Describe the IT governance system that was in place at the University of the Southeast using both decision rights and structure as the basis of goverance.
Note: Minimum 300 words not including title and reference page. References should be taken from peer revived
.
Case Study 7-2 Sony Pictures The Criminals Won. Answer question 2 W.docxmoggdede
Case Study 7-2 Sony Pictures: The Criminals Won. Answer question 2 What access and data protection controls would you recommend Sony use to provide better security for unreleased digital films and emails?
Note: Minimum 300 words not including title and reference page. References should be taken from peer revived
.
Case Study 8.1 Team DenialEmory University Holocaust studies pr.docxmoggdede
Case Study 8.1: Team Denial
Emory University Holocaust studies professor Deborah Lipstadt faced an uphill battle when she was sued by British amateur historian David Irving in 1995. Irving was the world’s best known Holocaust denier. He claimed that Hitler didn’t order the killing of Jews. Instead, the Führer’s subordinates acted on their own, without his knowledge. Irving’s most audacious assertion was that no Jews and other victims were gassed at the Auschwitz concentration camp. He denied that there were gas chambers. Instead, deaths were caused by typhus and other illnesses, not murder. Speaking before neo-Nazi groups, Irving declared that more people died in the back of Senator Edward Kennedy’s car (one young woman) than were deliberately killed at Auschwitz.
In her book Denying the Holocaust: The Growing Assault on Truth and Memory, professor Lipstadt called Irving “a Hitler partisan wearing blinkers” who distorted historical evidence to “reach historically untenable conclusions.”1 Irving then threatened to sue unless she retracted her comments. He likely thought she would settle out of court. Not Lipstadt. Surrender would give deniers a victory, meaning a “second death” to the victims of Auschwitz and other Jews who perished under the Nazis. But Irving had the upper hand. Under British law, Lipstadt had to defend herself from the allegations. (In the United States, accusers have to prove that they have been libeled and defamed.) The lengthy court case would cost over a million dollars to fight and would be held in London, thousands of miles from Atlanta, where Lipstadt taught.
Fortunately for Dr. Lipstadt, others rallied to her cause. Emory gave her financial support and paid leave while hiring adjuncts to teach her classes. (School officials believed that canceling Holocaust courses would be a victory for Irving.) Penguin, her publisher, provided legal and financial support and Jewish groups raised money for her defense. Most important, she gained the support of a top-notch legal team who believed in her cause. This team included (1) those who prepared her case—a team of researchers who gathered information and the attorneys who assembled court documents; and (2) a pair of barristers who argued in front of the judge. (In Britain, one set of attorneys prepares the case while a different set of attorneys presents the case in court.) Lipstadt needed all the help she could get. Preparation for the trial took five years. Researchers had to sift through thousands of documents checking footnotes as well as hundreds of Irving’s personal diaries. They generated an eight-foot-tall stack of trial notebooks.
The legal team decided to put Irving on trial, demonstrating how he systematically altered historical evidence to support his anti-Semitic views. That meant that Deborah wouldn’t testify, turning her into a spectator at her own trial. Lipstadt, a skilled public speaker, objected to these restrictions but eventually gave in. She said, “Being q.
Case Study 7 Solving Team Challenges at DocSystems Billing, Inc.docxmoggdede
Case Study 7: Solving Team Challenges at DocSystems Billing, Inc.
Read the DocSystems Billing case, including the briefing document and four scenes, and consider the following questions:
What problems exist in this organization? How do these problems differ based on the employees’ roles? Why do employees object to Jim’s proposed solution?
Make a recommendation to the client about what could be done next based on the data included. Summarize your observations for Jim, offer possible interpretations, and suggest an approach for next steps.
Briefing Document: DocSystems Billing, Inc.
About the Company
DocSystems Billing, Inc., processes insurance billing paperwork for a network of small health care clinics throughout the United States. Privately owned physician practices, as well as specialists such as cardiologists and physical therapists, contract with DocSystems to process the billing paperwork through the maze of health care insurance companies and networks. DocSystems charges either a flat fee for each bill it processes or a percentage of the total, depending on the contract with the provider.
About the Call Center
Forty full-time employees work at the onsite call center: 30 Medical Insurance Specialists (who handle cases of moderate complexity) and 10 Senior Insurance Consultants (who handle very complex cases). The senior consultants have usually worked up through the ranks, often first working on basic billing, then as medical insurance specialists. Most of them have a long tenure with DocSystems, ranging from 17 to 23 years.
An additional 100 employees (called Billing Specialists) work at an outsourced call center. DocSystems contracts out the initial processing of claims and basic computer input. The contract employees used to work at DocSystems until the outsourcing.
285
The call center was outsourced a year ago to another organization. Almost all of the former DocSystems employees were offered jobs with the new company, but the pay and benefits were not comparable. Word has spread to the former colleagues who remain at DocSystems that the outsourcing company treats its employees poorly.
Call Center Reorganization
The remaining group of 40 employees was reorganized into two new teams about 3 months ago. Initially, there had been two managers—Alex managed the senior insurance consultants, and Dana managed the medical insurance specialists. Both reported to Jim, the senior director. In the new structure, Alex and Dana both manage 20 employees, with each managing half of the specialists and half of the consultants.
That meant that some of each group remained with their former manager, while some moved to a new manager. Senior management hoped that the integrated teams would start to share knowledge between more senior and more junior practitioners.
Roles and Work Process
Billing Specialist
The billing specialists do the initial computer input and handle the majority of the cases. Normally this occurs without any need .
Case Study 5.2 Hiding the Real Story at Midwestern Community Acti.docxmoggdede
Case Study 5.2: Hiding the Real Story at Midwestern Community Action
Recently, life at Midwestern Community Action has been anything but smooth. The nonprofit runs a variety of programs in a midsized city, including preschools, teen drop-in centers, a food pantry, a medical clinic, and low-income housing. Health problems forced founding executive director Sally May, who was well loved by staff, to quit after 20 years in her position. The board then appointed Josiah Lang, who had served as the manager of a local government service agency, as the next executive director.
When Lang arrived at Community Action, he discovered that May had been a hands-off leader. She allowed coordinators to run their programs without much supervision. Used to operating on their own, they resisted Lang’s efforts to institute performance evaluations, to evaluate the effectiveness of each program, and to reallocate funds between programs. It didn’t help that Lang made little effort to get to know his subordinates and has an abrasive personality. Three coordinators and a half dozen front-line staff quit. Lang has the support of the board, which believes that the organization needs more structure and accountability, but staff morale is low. Employees have lost faith in the organization’s leadership. However, they remain committed to helping the disadvantaged and to Community Action’s mission. For that reason, they largely keep their frustrations to themselves and are careful to protect the organization’s public image. Community Action continues to be well regarded by clients, government officials, donors, and the public at large.
This week Community Action will interview an applicant for its housing coordinator position, a vacancy created when the previous coordinator left in frustration. This is the most important open position to fill. The housing coordinator oversees three apartment complexes with 200 tenants and manages the most employees. Failure to fill the vacancy soon could reduce Community Action’s outreach to the homeless. The applicant, Albert Singh, appears to be highly qualified. If he takes the position, Singh will move his family from out of state. He has no idea that Community Action is dealing with significant conflict and poor morale.
Singh will make a brief presentation to the entire staff during his visit and then meet for an extended time with the current program coordinators. During this session, the coordinators (without the director present) will question him and present an overview of Community Action. Albert will also have an opportunity to ask questions of the coordinators.
Discussion Probes
1. What ethical duties are in conflict in this situation?
2. Are Community Action employees justified in keeping their concerns “in house,” out of the public eye? Why or why not?
3. If you were one of the current program coordinators, how much would you reveal about the turmoil at Community Action to Singh?
4. As a coordinator, what would you say if Singh.
Case Study 5.1Write a 3 to 4 (not including title or reference.docxmoggdede
Case Study 5.1
Write a 3 to 4 (not including title or reference page) page paper that describes some your state laws protecting data or security of personal information (the state you live in ,have lived in, or want to live in). First, list the state you chose. Then provide the name and a brief description of the law, to include when it was enacted, punishment if not followed, and who/what the law protects. Make sure you follow the grading rubric and write your paper in APA format. Cite all sources appropriately.
Writing Requirements
4 pages in length (excluding cover page, abstract, and reference list)
Include at least two peer reviewed sources that are properly cited
APA format, Use the
APA template
located in the
Student Resource Center
to complete the assignment.
Please use the Case Study Guide as a reference point for writing your case study.
.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
4. Yet, productivity declined, scrap was up, and warranty costs
soared. Workers saw the TQM
program as a management project. Managers blamed much of
the problem on the lack of
union cooperation and of employee concern. No specific quality
goals were set. Everyone
lacked a sense of urgency. Pete’s arrival brought a sudden
change: meetings with line
workers quickly pointed to key production problems, warranty
claims were grouped to
identify failure causes, landscape designers and on-site
supervisors were brought together to
analyze failures, and certain changes were made “overnight.” A
goal of cutting scrap by 50%
in three months was set.
At every step, the same question came up: “What’s this costing
us?” Pete, knowing that this
question was key at other plants, sought out Rose Bush, the
plant cost accountant. Rose was
in the middle of an ABC study and had begun to define new
activity centers and cost drivers.
While not an easy task, Rose was able to modify her system
rather quickly to identify quality
costs: which, where, and how much. Pete and Rose became
allies, promoting each other’s
views to managers and employees alike. Within two months,
Rose gave Pete a 2019 costs of
quality analysis. These costs totaled a surprising 15% of
revenues. Of this, little was spent on
prevention, about 30% was spent on appraisal, nearly 45% went
to fixing internal failures,
and the rest were external failure costs. Lost revenues because
of bad product weren’t
captured or estimated. In addition to many nonfinancial quality
6. managerial accountants for relevant and timely data for
decisions. This chapter examines a
set of the more important areas of change in managerial
accounting. These topics are heav-
ily influenced by international competitors, particularly the
Japanese. Product quality and
process improvement have allowed Japanese automakers,
electronics firms, and other con-
sumer goods producers to capture major shares of international
markets. Disciplined and
team-oriented approaches brought market and financial success.
Soon others, particularly
U.S. firms, began to adopt and adapt similar concepts and
strategies. JIT, quality circles, and
continuous improvement programs are examples.
In this chapter, we focus on several of these topics that have
strong managerial accounting
ramifications. Specifically, measuring and monitoring quality
costs are major parts of any
total quality management program. Team approaches to design,
costing, production plan-
ning, and process improvement have yielded huge dividends.
These approaches have focused
on linking customer needs to the design process, on identifying
and eliminating any activity
that does not add value to the product, and on organizing
planning and control activities that
truly measure performance. Many more topics could be included
and more pages added on
a weekly basis. Old accounting tools are redesigned, some are
abandoned, and new concepts
are tried and tested. The pace of change is exciting.
12.1 Costs of Quality
“Quality is free” is a favorite saying of many who argue for
7. efforts to improve quality. It may be
difficult to accept the concept that spending more on quality
improvement efforts will lower
costs. But the facts tell an exciting story:
• Increased training of workers will reduce scrap and rework
costs.
• Higher-quality products and services improve customer
satisfaction and generate
higher sales.
• Narrower control limits force improved processes and greater
utilization of capacity.
• With reduced waste, more product can be generated with the
same equipment and
workers.
• “Designing in” quality prevents production problems and the
need for engineering
changes to create “fixes.” An error of $1 in design can easily
cause $10 in production
problems.
• Empowering employees through quality circles and other
participation techniques
to give them control over quality-related production decisions
increases total
commitment.
• Employee satisfaction from eliminating rework, downtime,
and scrap increases pro-
ductivity and further commitment to improvement, particularly
if the benefits are
shared with the employees.
9. quality management promoted by internationally recognized
leaders such as Dem-
ing, Juran, Crosby, and Taguchi.
All of these focus on management commitment to bringing
about a change in attitude and
changes in processes.
Methods vary, but all emphasize heavy management
commitment to change. One Michigan
firm’s management, tired of customer complaints and nagging
productivity problems, intro-
duced an array of techniques to impress employees and
managers with the need to work
toward zero defects in its output. Every work station was made
responsible for approving
the quality of its work before sending it to the next station.
When defects were detected, the
entire line was halted, horns sounded, the problem diagnosed,
and responsibility for the solu-
tion identified. The initial result was that very little was
shipped from that plant for nearly
two weeks because of the nearly constant stoppage of the line.
But within two months, pro-
ductivity was above any prior period and continued to rise. The
costs of the early stoppages
were nearly fatal to the firm, but the payoffs are substantial
both internally and to customers,
many of whom are automotive related and are using vendor
certification programs to pro-
mote quality, delivery, and cost goals, and to eliminate
nonperforming suppliers.
Cost Categories
Four categories of costs are commonly identified. These
categories are related and can be
11. decrease. Included
are:
Inspections of materials Quality control activities
Inspections during production Production testing
Inspections of finished products Statistical quality control
Line personnel’s self-checking activities Calibration of test
equipment
Internal auditing activities
• Internal failure costs are incurred after defective or
substandard product or ser-
vice is detected but before it leaves the plant. These costs
increase as the number of
defective units detected increases. Included are:
Rework, retesting, and rescheduling Scrap
Lost production Downtime
Lost contribution margin on defective units* Increased
inventory
* These items are measurable only by making estimates of
external impacts and are rarely
part of a costs of quality accounting report. They are the most
subjective of all quality
costs yet, perhaps, the most important in a strategic sense.
• External failure costs are incurred when the defective product
or service gets to
the customer. These costs increase as customers find defective
13. 513
Section 12.1 Costs of Quality
While these lists seem straightforward, much judgment goes
into the typical quality cost anal-
ysis. If a person’s duties are part production and part
inspection, what percentage should be
considered to be quality costs? Each firm must decide on its
own definitions. Also, as time
passes, processes change, greater understanding of quality
issues evolves, and accounting
systems change. One danger behind this discussion is that an
impression is created that cost
measurement is precise and easily performed. Activity-based
costing, special studies, and
improved charts of accounts have certainly detailed the trail of
costs.
Traditionally, these costs have been buried in other cost
categories. Prevention costs are “lost”
in administrative overhead. Appraisal costs are spread among
the many locations. Internal
failure costs show up in efficiency and quantity variances and
allowances for “normal scrap.”
External failure costs are selling and administrative costs or not
captured at all. In many firms,
it takes a major effort to identify, measure, and track these costs
with reasonable accuracy.
Prevention and appraisal costs are considered tradeoffs to
internal and external failure costs.
Thus, stronger training programs are viewed as important costs
that help reduce internal and
external failure costs. Also, a stronger appraisal program should
14. reduce both internal and
external failure costs. Yet, in the long run, spending on
prevention costs may allow a company
to reduce both failure costs and appraisal costs. Better-trained
employees will produce much
higher-quality products that require less testing and inspecting,
a result of producing few if
any defective units. Implicitly, failure costs fall to near-zero
levels.
Diagramming Costs of Quality
Figure 12.1 illustrates the interaction of the four costs of
quality categories. The horizontal,
or x-axis, reflects either a decreasing defect rate or an
increasing quality assurance rate. As
can be seen, an optimal cost level can be drawn. The
presumption is that increased prevention
and appraisal spending will lower failure costs (internal plus
external). We must be careful
not to oversimplify the relationships here. For example:
• The optimal spending level can be drawn but can rarely be
measured accurately.
Also, this optimal level of spending implies that we should be
satisfied with this level
of quality (defects).
• This static drawing of the four cost categories reflects general
trends but implies
that they are equally important and are of approximately equal
size. Rarely is this
the case.
• The cost curves imply that cost functions can be defined
quantitatively to allow
these costs to be plotted at various levels of quality assurance.
16. accident rate in the United
States with Japan. In the U.S., most teenagers take a short
driver’s training course with very
limited coverage of driving laws, driver etiquette, and hands-on
skill development. In Japan,
compulsory driver education courses cost approximately $5,000
per person because of the
amount of training required. Car accidents do occur but at a
much lower level as compared
to U.S. experiences. (To test the idea, survey your current class.
Odds are that well over half
of your fellow students have had an auto accident before they
reached 20 years of age.) Japan
has traded accident costs for training costs. Other social impacts
must be considered; for
example, many persons might not drive because they cannot
afford the $5,000.
As a numerical example of Figure 12.1, assume that 100,000
units are produced with six
possible levels of spending on prevention and appraisal efforts.
The contribution margin is
$10 per unit. Of the defects, 60% is detected internally; and
40% is discovered externally. All
defects must be reworked at a cost of $8 per unit. External
failures cause a loss of future sales
at a ratio of three units of lost sales for each external defect
found, or $30 of lost contribution
margin for each external defective unit. All dollar and unit
amounts are in thousands (adapted
from Godfrey & Pasewark, 1988, p. 72).
Internal Failure Costs
External Failure Costs
Prevention Costs
18. 100,000 units produced is
defective. Also, we are now spending $100,000 each on
prevention and appraisal costs. It will
cost $8 per unit to rework the 5,000 defective, units or $40,000.
Lost contribution margin is
found by taking the external failures (40% × 5,000 units) times
the contribution margin of
three lost units (3 × $10)—a lost sales cost of $60,000 in
contribution margin. The total costs
of quality are $300,000.
Based on these numbers, the managerial accountant would
recommend that the current opti-
mal cost level is $240,000. This assumes that we can quantify
the relationship between higher
prevention costs and lower defective percentages. It also
assumes that appraisal costs can be
reduced accordingly. Internal and external discovery rates for
defective units and lost sales
figures are clearly estimates. Contribution margins and rework
costs are reasonably solid
data. This, however, is a static picture of quality costs. As time
passes, these relationships will
change, resulting in a new optimal spending pattern.
Continuous Improvement
Can any firm be satisfied with a static quality level? No!
Markets are demanding higher and
higher quality assurance levels. Japanese auto quality levels of
the 1980s well exceeded U.S.
capabilities. U.S. firms now exceed those levels, but Japanese
carmakers have moved to still
higher levels. Competition demands continuous improvement.
Prior to the implementation of a TQM program, appraisal costs
and combined failure costs
19. will likely be very high. For example, the mix of quality costs
at the start of a major quality
effort in a machine manufacturer was:
Defect
Rates
Prevention
Costs
Appraisal
Costs
Rework Costs Lost Contribution Margin
Units Costs Units Costs
Total Quality
Costs
5.00% $100 $100 $8 × 5.0 $40 $30 × 2.0 $60 $300
3.50 120 80 8 × 3.5 28 30 × 1.4 42 270
2.25 140 65 8 × 2.25 18 30 × 0.9 27 250
1.25 160 55 8 × 1.25 10 30 × 0.5 15 240
0.50 190 50 8 × 0.5 4 30 × 0.2 6 250
0.10 240 48 8 × 0.1 0.80 30 × 0.04 1.20
290
Prevention costs 4.5%
Appraisal costs 41.7
21. Low $
High $
Costs
of
Quality
High
High
Low
Low
Defect Rate
Quality Assurance Rate
Year 1
Year 2
Year 3
Year 4
Year 5
A line linking minimum cost points should always be shifting
downward and to the right.
Whether the company is ever at the exact optimal point each
year or month is questionable.
But aggressive TQM programs have produced results following
this pattern. As an illustration
23. Sources of Costs of Quality Data—ABC and Customer Inputs
Most traditional costing systems will find it difficult, if not
impossible, to collect the type of
data needed for the preceding analyses. ABC has been a timely
innovation. Activity centers
that focus on quality issues (i.e., training, rework and scrap,
inspections, and quality assurance
program costs) can separate these activities and the resources
they consume. Cost drivers can
help identify relationships between failure costs and their
causes. Thus, ABC increases the
ability to identify quality costs, focuses attention on costly
activities, and even helps recognize
cause-and-effect linkages.
Many companies must extend even ABC data to capture more
quality costs. This might include
account analysis, discussed in Chapter 6. With certain costs,
allocations may be needed, which
introduce difficulties when measuring improvement. As
improvements occur, costs must be
reallocated, often introducing arbitrariness.
The tough measurement is still lost sales, part of external
failure. Numerous firms have made
customer satisfaction surveys important and routine parts of
their marketing, service, and
product planning and design functions. Quality councils have
included both suppliers and
customers to add critical external views of internal quality
levels and efforts. In the past, lost
sales estimates were only vague guesses, but greater articulation
of customer and potential
customer inputs can push this figure toward a more valid
estimate.
24. Service Applications
While TQM programs are often linked to manufacturing and its
quality, service organizations
also find quality just as critical to customer satisfaction and to
their long-term survival. The
same categories of costs of quality apply to all organizations.
Xerox, for example, has devel-
oped significant quality programs for its manufacturing, sales,
and service activities. Training
to increase service employee competence, to improve
interactions with customers, and to
raise the quality of services provided is similar to
manufacturing tradeoffs. The focus is more
heavily on customer satisfaction since providing the service, in
many cases, is at the customer
contact point. Lost sales, service reputation, and attributes such
as “friendliness” are difficult
to measure in a financial context. Yet, measuring costs of
improving and sustaining quality
Figure 12.3: Shifting patterns of costs of quality over time
Cost Categories
Prevention
Appraisal
Internal Failure
External Failure
Total Costs
Cost as a % of sales
2013 2015 2017 2019 2021
$ 2.5
6.0
6.2
28. ucts. Another Japanese system known as kaizen costing is used
to manage costs in the prod-
uct manufacturing stage.
Target Costing
Historically, U.S. manufacturers have set their pricing strategies
by adding required profit
margins to the costs of already designed products. Target
costing reverses this process. After
a target selling price and a target profit are established, an
allowable cost consistent with
these targets is obtained for the product. The company then
designs the product based on
the allowable (target) cost. Figure 12.4 compares the target
costing approach to the tradi-
tional approach.
Figure 12.4: Target costing compared to the traditional
approach
Target
Costing
Traditional
Approach
Design the
product
Obtain the target
selling price
Determine the
cost
Deduct the target
30. This overall target cost is then decomposed into specific cost
elements for materials, subas-
semblies, direct labor, various manufacturing overhead
categories, and various nonmanufac-
turing categories such as distribution and customer service.
Finally, the design department
establishes a blueprint according to the target cost for each
element.
As an example of the target costing approach, suppose that
Lylatove Sleepwear is considering
the production of a new line of pajamas. Based on preliminary
market research, management
has decided that each pair of pajamas should be priced at $20.
Furthermore, management
believes that the profit margin should be 12% of sales revenue.
Hence, the target profit would
be $2.40 (0.12 × $20). The target cost, therefore, would be
$17.60 ($20 – $2.40).
Kaizen Costing
Kaizen costing is a system to support cost reduction beyond the
design and development
stages. “Kaizen” is a Japanese word that refers to “continuous
accumulations of small better-
ment activities rather than innovative improvement” (Monden &
Hamada, 1991, p. 17). Inno-
vative improvements are usually introduced in the design and
development stages. In kaizen
costing, the actual cost for the previous period becomes the
kaizen cost target for the current
period. To promote continuous improvement, these kaizen cost
targets must be reduced in
each successive period. For instance, suppose a company’s
shipping costs are $10,000 for
32. 520
Section 12.3 Activity Analysis
the activities that cause them. Any resource-using activity that
does not add value is often
called waste. Having value implies that a consumer would be
willing to pay for the results of
the activity. A key goal of production managers is to eliminate
waste and, thereby, to have an
efficient and productive operation.
Time is perhaps the most valuable resource. Study of nonvalue-
added time in operations
takes five forms: process time, inspection time, move time, wait
time, and storage time.
Process time is the time during which a product is undergoing
conversion activities that
transform raw materials into finished products. Although most
people view process time as
the sum of many value-added activities, the presence of
inefficiency or other nonproductive
activities represents nonvalue-added time. Managers must
continually review processes to
catch inefficiencies that can creep in over time.
Just-in-time (JIT) production concepts are fundamental building
blocks for reducing process
time. Many companies have physically reorganized their
factories to encourage faster process
time. Figure 12.5 compares a JIT layout to a traditional factory
layout. The traditional plant
has large inventories, much materials movement within the
plant, and a mixing of fabricat-
ing and assembly tasks. The JIT plant produces only when parts
33. and products are needed,
carries low amounts of inventories, has a north-to-south flow of
production, and organizes
production around product families (similar production
requirements). The implication is
that greater output can be achieved with the same equipment,
people, and space—waste is
reduced.
Figure 12.5: Traditional factory versus just-in-time factory
layouts
Fabricating & Assembly Areas
Raw Materials Inventory
Receiving Dock
Shipping Dock
Finished
Goods
Inventory
In-Process
Inventory
Finished Goods Inventory
Raw Materials Inventory
Receiving Dock
Shipping Dock
Fabricating
Areas & Cells
35. However, many companies are striv-
ing to reduce the costs of maintaining product quality and are
working virtually to eliminate
the costs of reworking defective products. Consequently, zero
defects and total quality control
programs sensitize employees to the need for eliminating
spoiled and defective units. The
argument is that quality is built into and not inspected into the
product. Unless otherwise
stated, we presume that inspection is a nonvalue-added activity.
Move time is the time spent moving raw materials, work in
process, or finished products
between operations within the plant. This includes the activities
associated with receiving
materials, moving them into storage, moving materials and
components to the first produc-
tion operation, moving partially completed products from one
work center to the next, and
moving the completed product to the finished goods storage
area to await shipping. Many
companies refer to these activities as materials-handling
operations. Move time is a non-
value-added activity. A certain amount of move time is
necessary in any production process,
but proper sequencing of operations and tasks and implementing
automation technologies
can significantly reduce move time. Figure 12.5 illustrates the
importance of an efficient flow
through the factory to minimize materials movement.
Wait time is the amount of time that materials or work in
process spend waiting for the next
operation. This includes the time that materials, components,
and partially completed prod-
ucts remain in queues immediately preceding an operation and
36. in holding areas located near
each department waiting for the next production operation. Wait
time potentially represents
a significant nonvalue-added cost. A company’s working capital
is tied up in work in process,
and space is unnecessarily wasted on numerous production
queues and holding areas. Even
in the simple diagrams in Figure 12.5, we see that space
released from having inventory wait
for the next production step can be used to expand production.
The ultimate goal of the JIT
philosophy is to eliminate wait time completely. Companies
using JIT systems have proven
that remarkable reductions in in-process inventories can be
made. For example, a car assem-
bly plant producing 70 cars per hour may have less than one
hour’s supply of car seats in the
plant at any time. When a car begins its two-hour trip along an
assembly line, an electronic
message is received in a supplier’s seating plant to trigger
assembly of that car’s seats. The
seats are built and delivered to the car assembly line minutes
before the car arrives at the seat
installation point.
Storage time is the time during which finished products are held
in stock before shipment
to customers. It includes the time products spend in storage and
the time spent packaging
the products for shipment. Traditionally, companies have stored
large inventories of finished
products to avoid stockouts. Similar to waiting time, storage
time ties up a company’s working
capital in inventories and requires large amounts of space
devoted to storage activities. While
not applicable to all manufacturing operations, produce-to-order
38. time amounts to 6.08 hours
(2 + .25 + .33 + .5 + 3).
Contemporary Practice 12.1: Activity Analysis at Cater-
pillar’s Marketing & Product Support Division (MPSD)
The activity-based management process starts by “searching for
low- and no-value
activities within each office process to eliminate or
significantly reduce the cost of
these activities. It ends by identifying the supply source for
each office process. For
MPSD, this meant examining the core competencies of its
global operations, deciding
what to keep doing internally and what to source from outside
vendors. . . . Because
Caterpillar has locations around the world, MPSD was able to
address the services
it provided to both internal (other Caterpillar divisions) and
external (dealers and
customers) organizations to leverage the global footprint by
taking ABM-optimized
processes and sourcing them where it made the most sense to
provide each service.”
Source: DeFreitas, D.G., Gillett, J.W. & Fink, R.L. (2013,
January). Getting lean and mean with Caterpillar with ABM.
Strategic Finance, 24–33.
12.4 Nonfinancial Performance Measures
As changes occur in the operating environment, traditional
measures of performance are
being reexamined. New measures are being adopted to better fit
the concepts of activity-
based management. In addition, accountants are measuring
performance in new areas of
40. capacity. The goal was cost minimi-
zation. Other productivity measures commonly used were
nothing more than quantities of
output divided by quantities of input. Today, we are looking for
more detailed, meaningful
measures. Activity-based costing can pinpoint high-cost
activities. Engineers can design for
greater production efficiency and defect elimination. For
example, a machine manufacturer
might determine the number of machines produced per day per
employee. A car assembly
operation might ascertain the square footage required per day
per car. An electrical generat-
ing plant might keep track of the tons of coal required to
generate a thousand kilowatt-hours
of electricity. The measures are oriented toward specific
activities and evaluate management
control over these activities.
Manufacturing cycle efficiency (MCE) is a measure of the
amount of throughput time that
consists of process time. It is the following ratio:
Manufacturing cycle efficiency =
Processing time
Throughput time
Remember that throughput time is the sum of process time,
inspection time, wait time, move
time, and storage time. Assuming that inspection time is
nonvalue-added time, then MCE
measures the portion of throughput time which is value-added
time. The goal is to have MCE
as high as possible, with 100% as the theoretical ideal.
41. Another widely used productivity measure is the first-pass
yield. This measures the percent-
age of nondefective items that have gone through the production
process one time only (i.e.,
without needing any rework).
Computer-integrated manufacturing (CIM) is an attempt to
optimize the entire plant’s pro-
duction by planning which departments will produce which
parts and products, in what order,
and when. Formerly, each department’s efficiency was
measured, and keeping all depart-
ments running at full speed was the goal. Now in CIM, certain
departments may be idled until
their resources are needed. This is “pull through” production
and part of the JIT philosophy.
Produce only what is needed immediately. Performance
measures must therefore evaluate a
unit based on its production assignment, not necessarily its
capacity. Responsibility for pro-
ductivity is now moved to higher management levels and away
from the individual activity
center or cost center manager.
Productivity of Labor
The total labor expended for the benefit of a product or service
is segregated into direct and
indirect labor. Direct labor is all labor that can be specifically
identified with a product or
service in an economically feasible manner. Value-added direct
labor is that portion of direct
labor that changes raw materials into a finished product or
service that is delivered to a cus-
tomer. For example, value-added direct labor fabricates,
assembles, and finishes products.
43. In many operations, direct labor is being replaced by automated
equipment, and indirect labor
now includes technicians needed to program, set up, and
maintain the equipment. Often, the
distinction between direct and indirect labor is blurred or
eliminated. Team approaches to
production (work units or product family cells as shown in
Figure 12.5), guaranteed wage
labor contracts, and broader job classifications have further
eroded the importance of direct
labor as a cost group. A labor-related performance measure that
does not distinguish between
direct and indirect labor is the percentage of total labor cost in
the total product cost, called
the labor content percentage:
Labor content percentage =
Total labor cost
Total product cost
The goals are to reduce this percentage and to increase the
productivity of all labor dollars.
Product Quality
Earlier in this chapter, we discussed financial measures of
product quality. Costs of quality
enable us to aggregate various aspects of quality by using a
common unit of measure—dollars.
Furthermore, costs of quality allow us to assess the impact of
quality on the company’s profits.
However, knowing the costs of quality does not enable us to
pinpoint specific sources of quality
problems. To diagnose and correct specific problems relating to
quality, we need a variety of
45. scrap measures are used to keep these items to a minimum.
Products are also selected for
testing at random, or statistically sampled during the various
stages of production. Defect
rates are measured, and corrective actions specified.
A fourth area of quality measurement relates to purchased
materials and parts. Pressure is
on purchasing agents to acquire high-quality inputs to meet
materials requirements at low
costs and on a timely basis. Common vendor performance
measures include percentage of
defects in the delivery (in terms of dollars as well as number of
items), percentage of orders
filled, and percentage of orders delivered on time. Many
companies are now computing an
overall rating of suppliers based on the quality of their
materials, delivery performance, and
customer service. Also, waste, scrap, and defects occurring
during production that are trace-
able to materials are identified with specific suppliers. A
growing number of companies now
have vendor certification programs, where managers may
purchase from only those vendors
who have met the company’s quality standards.
Inventory Reduction
Inventory investments, ordering costs, and carrying costs often
include significant amounts
of nonvalue-added costs. To remain price competitive, effort is
necessary to reduce or elimi-
nate inventories. Many companies use an approach called
economic order quantity, which
utilizes a mathematical formula to minimize the total costs of
ordering and storing invento-
ries. The JIT philosophy focuses on keeping inventories at low
46. or zero levels for materials
and parts at every stage of production. Therefore, inventory
control measures are used to
minimize nonvalue-added costs. Such measures may include
average inventory values, aver-
age time various categories of materials are held or inventories
are standing in a production
operation, and inventory turnovers (cost of goods sold divided
by average inventory). Mea-
sures like manufacturing cycle efficiency also relate to
inventory reduction because nonpro-
cessing time—inspection, move, wait, and storage times—is
much of the reason why inven-
tories exist.
Machine Maintenance
If our efforts to reduce inventories are successful, we shift our
focus to the company’s capabil-
ity of producing goods quickly. We must keep production
equipment and machinery operat-
ing. Therefore, performance measures will look at unscheduled
machine downtime, equip-
ment repair time, tooling turnaround time, engineering change
time, machine availability, and
adherence to maintenance schedules. Some companies even
make a distinction between bot-
tleneck and nonbottleneck machinery. A bottleneck operation is
one that limits the production
capacity of the entire facility. It is vital that the machinery in
bottleneck operations be avail-
able 100% of the time, excluding time for routine required
maintenance. Managing bottleneck
operations has received considerable attention in recent years
and has become a central com-
ponent of a management philosophy known as the Theory of
Constraints. This philosophy
48. product quality and delivery
performance.
In Figure 12.6, we summarize the nonfinancial performance
measures previously discussed.
Figure 12.6: Summary of nonfinancial performance measures
Manfacturing Productivity
Output per day per employee
Output per square foot of space
Energy required per unit of output
Manufacturing cycle efficiency
First-pass yield
Productivity of Labor
Value-added labor ratio
Labor content percentage
Inventory Reduction
Average inventory values
Average time inventories are held
Inventory turnovers
Machine Maintenance
Unscheduled machine downtime
Equipment repair time
Tooling turnaround time
Engineering change time
Machine availability
Adherence to maintenance schedules
Delivery Performance
Percentage of orders filled
Percentage of on-time deliveries
Time from customer order to delivery
50. Multinational Company
Multinational companies are increasingly using nonfinancial
performance measures in evalu-
ations. Common ones for international operating units are:
1. Increasing market share and market size
2. Relationship with host country government
3. Quality assurance
4. Productivity improvement
5. Customer development
6. Innovation
7. Cooperation with other company units and the parent
8. Environment compliance
9. Employee training and development
10. Employee safety
11. Labor turnover
12. Community service
Notice that for some of these measures a company will have
difficulty attaching numerical
values. These measures are very important in comparing
performances, particularly over
time and against planned target levels.
The implication is that the corporate office is in close touch
with the international operation,
can assess budget and planning targets astutely, and can link
successful performance in the
local environment with global economic goals of the
corporation.
12.6 Balanced Scorecard
Many companies are integrating financial and nonfinancial
performance measures into a
52. • Internal business process—measures that describe the internal
processes (i.e., the
means) needed to provide value for customers and shareholders.
• Learning and growth—measures that define the capabilities
needed to create long-
term growth and innovation.
A balanced scorecard is not simply a collection of performance
measures. These measures are
derived from the company’s mission, strategy, and objectives
and represent a balance among
the four measurement perspectives. In the financial category,
the strategic themes often
include revenue enhancement, cost minimization, and asset
utilization. Examples of these
financial measures, as well as measures for the other three
categories in the balanced score-
card, can be found in Figure 12.7. Strategic themes for the
customer category often include
market share growth, customer retention, customer acquisition,
and customer satisfaction.
In the internal business process category, the strategic
objectives relate to increasing the effi-
ciency and effectiveness of operations. The objectives for the
learning and growth category
relate to the ability to innovate and improve.
Figure 12.7: Examples of measures in a balanced scorecard
Financial
Revenue enhancement:
Revenue growth from prior period
Product profitability
Cost minimization:
53. Product cost per unit
Cost per customer
Asset utilization:
Return on investment
Residual income
Economic value added
Customer
Market share
Number of new customers
Percentage of returned products
Customer survey ratings
Percentage of customers paying early
Internal Business Process
Percentage of defective units
Manufacturing cycle efficiency
First-pass yields
Output per square foot of space
Supplier ratings
Learning and Growth
Employee satisfaction ratings
Training hours per employee
Number of new brands introduced
Inventory of cross-functional employee skills
Percent of revenue from new products
The frequency of measurement varies depending on the type of
performance measure. For
instance, operating measures such as machine downtime or
percentage of orders filled may
be measured daily. Other operating measures such as
manufacturing cycle efficiency or
amount of rework may be measured weekly. Yet others such as
inventory turnovers and num-
55. “Store24 is a privately held convenience store retailer in New
England. . . . Store24 used
a balanced scorecard-based performance measurement system.
The company collected
information on a variety of performance measures at various
levels of the organization and
at various frequencies. Management collected store-level
financial performance metrics
quarterly. It monitored store-level customer measures less
frequently.”
Source: Campbell, D., Datar, S.M., Kulp, S.L., & Nayayanan,
V.G. (2015). Testing strategy with multiple performance
measures: Evidence from a balanced scorecard at Store24.
Journal of Management Accounting Research, 27(2), 39–65.
12.7 Benchmarking
To improve both quality and productivity, many companies are
turning to benchmarking.
This technique identifies activities as standards (“benchmarks”)
by which similar activities
should be judged. Simply put, it is a process of finding better
practices. Benchmarking can be
done with internal sources—other parts of the company—or
with other companies, includ-
ing competitors. The external candidates are often obtained by
examining lists of companies
cited in trade and business journals for excellence in their
business practices.
Aside from trade and business publications, performance
benchmarks can be gathered from
electronic databases, professional conferences and trade
conventions, commissioned studies,
and site visits to companies. Benchmarking utilizes both
financial and nonfinancial perfor-
57. Downsizing
For many companies, particularly in service industries, a major
portion of costs are labor-
related costs. These include not only the wages and salaries of
employees but also fringe ben-
efits and overhead costs to support labor such as telephone
expenses and office space. Thus,
when companies look to reduce costs and improve efficiency, a
prime candidate becomes the
reduction of their work force. This phenomenon, sometimes
referred to as downsizing, can
involve outsourcing one or more functions, consolidating
certain functions, initiating across-
the-board cuts in personnel, or eliminating business segments
such as product lines or geo-
graphical territories.
While downsizing may reduce costs and improve efficiency in
the short run, it can harm
the company’s long-run competitiveness and well-being.
Remaining employees sometimes
become overburdened, making more mistakes and declining in
productivity. Morale suffers.
Employees fear for their jobs, and company commitment takes a
back seat to personal inter-
ests. Therefore, if downsizing is deemed necessary, it must be
done with extreme care.
Often, downsizing is accompanied by fundamentally changing
the way a company operates.
This strategy is called business process reengineering.
Business Process Reengineering
A business process is a series of activities that are linked to
perform a specific objective. Busi-
59. 531
Summary & Resources
Summary & Resources
Chapter Summary
The focus on quality has caused the analysis of the costs of
quality to become an important
managerial task. These costs are broken into four components:
prevention, appraisal, inter-
nal failure, and external failure. Often it is difficult to define
these costs clearly. The goal is
to reduce total quality costs. Often this is done by increasing
prevention and appraisal costs
to reduce or nearly eliminate failure costs. ABC systems have
aided the measurement and
reporting of these costs significantly. Quality costs and
documentation are the management
accountant’s responsibility.
Recognizing that most costs of production are determined when
products are developed and
designed, many companies are turning to a technique known as
target costing. After a target
selling price and a target profit are established, a target cost is
obtained for the product. The
company then designs the product based on the target cost. To
promote continuous improve-
ment in the manufacturing stage, kaizen cost targets are reduced
in each successive period.
Activity analysis involves reviewing activities and eliminating
60. those that do not add value to
the product. Throughput time is composed of process time,
inspection time, move time, wait
time, and storage time. The most common place to look for
nonvalue-added activities is in
inspection, move, wait, and storage time.
Traditional measures of performance are being reexamined.
New measures are being adopted
to better fit the concepts of activity-based management. These
are largely nonfinancial mea-
sures relating to manufacturing productivity, labor productivity,
product quality, inventory
reduction, machine maintenance, and delivery performance.
Many companies are beginning
to integrate nonfinancial measures with financial measures into
a balanced scorecard. Com-
panies are also benchmarking their performance against best
practices from other organiza-
tions. To achieve gains in productivity, many companies have
turned to strategies such as
downsizing and business process reengineering.
Ethical Considerations
Enhancing productivity via downsizing or business process
reengineering can be traumatic
for individuals in the organization. Therefore, management must
be careful to conduct these
changes in an ethical manner. A key consideration should be to
communicate the changes
in an honest way. Decisions as to who gets terminated and how
it is done can be subject to
serious abuses. Those whose job duties are changed should be
properly informed about new
expectations and should be trained adequately for their new
roles.
62. business process reengineering
(BPR) Changes made in management,
organizational structure, and work practices
to achieve significant improvements in qual-
ity, cost, speed, and service.
continuous improvement programs
Efforts to establish quality targets that
represent improvement over current per-
formance through worker involvement in
evaluation processes.
downsizing Removing entire layers of
management to make the organization “lean
and mean.”
economic order quantity A technique that
utilizes a mathematical formula to mini-
mize the total costs of ordering and storing
inventories.
external failure costs Costs of quality that
are incurred when the defective product or
service gets to the customer.
first-pass yield The percentage of good
product that passes through the production
process without needing rework.
inspection time The amount of time spent
ensuring that the product is of high quality.
internal failure costs Costs of quality that
are incurred after defective products or
services are detected but before they reach
63. the customer.
kaizen costing A system to support cost
reduction after the design and development
stages. The actual cost for the latest period
becomes the kaizen cost target for the cur-
rent period.
labor content percentage Total labor costs
expressed as a percentage of total product
costs.
manufacturing cycle efficiency (MCE)
A measure of what part of throughput time
consists of process time.
move time The time spent moving raw
materials, work in process, or finished goods
between operations.
prevention costs Costs of quality that
are incurred to prevent the production
of products or services that do not meet
specifications.
process time The time during which
the product is undergoing the conversion
activities that transform raw materials into
finished products.
statistical quality control The use of sta-
tistical techniques on processes to measure,
monitor, and evaluate performance based
on goals, control ranges, and performance
percentages.
65. als or work in process spend waiting for the
next operation.
Problem for Review
The following accounts were listed among the chart of accounts
for Arbiser Machine Tooling:
Warranty Repairs
Supplier Training and Certification Programs
Cost Accounting Salaries
Engineering Design Reviews
Customer Returns and Allowances
Scrap
Depreciation on Machinery
Final Product Testing
Rework Time
Planned Machine Maintenance
Emergency Machine Repairs
Purchased Materials Inspection
Direct Labor
Required:
Classify these accounts according to the appropriate costs of
quality category: prevention,
appraisal, internal failure, or external failure. Not all accounts
will be included.
Solution
:
67. • Rework Time
• Emergency Machine Repairs
External failure costs:
• Warranty Repairs
• Customer Returns and Allowances
Cost Accounting Salaries, Depreciation on Machinery, and
Direct Labor may include elements
of quality costs, but they are not normally considered costs of
quality accounts. If quality costs
are included in these accounts, they should be segregated by
creating new expense accounts
to track these costs directly.
Questions for Review and Discussion
1. Identify four categories of costs of quality. Give an example
of each.
2. Greg Orian, Controller of Calendar Creators, sees the four
categories of costs of qual-
ity as substitutions for each other. Explain why he might believe
this.
68. 3. Why might the task of measuring, reporting, and analyzing
costs of quality be dif-
ficult? Can these costs be easily benchmarked across firms?
Explain.
4. Discuss the possible linkage between monitoring quality by
measuring quality costs
and by using nonfinancial measures of quality performance.
Comment on which is
most important.
5. For most firms, is it possible to eliminate failures and,
therefore, failure costs? Is it
possible to push total quality costs to zero? Explain.
6. How is target costing different from the traditional approach
of setting costs and
prices?
7. What is meant by the term “nonvalue-added costs?” Provide
three examples.
8. Explain the value-added labor ratio.
9. Why are nonfinancial measures of quality needed in addition
to costs of quality?
70. 1. Classify these costs by the four costs of quality categories.
2. If sales were $4,600,000, show the costs of quality as a
percentage of sales for each
category and in total.
Customer design verification $ 5,000
Machine testing after machine setup 10,000
Employee training 40,000
Raw materials testing 12,000
Scrap loss net of scrap sales 30,000
Materials reprocessing 28,000
Customer complaints and returns 40,000
Final product testing 20,000
In-process inspection 45,000
72. quality management programs to its clients for years. They
finally decided to apply
the same concepts to their own business. After much discussion,
they adopted cer-
tain definitions of quality costs and began to monitor them.
They did acknowledge
that internal failure costs also included costs of nonvalue-added
activities that were
not technically failure costs. Now, three years later, they show
the following data as
highly summarized results of their efforts.
2019 2020 2021
1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half
Prevention costs $ 5,000 $ 20,000 $ 50,000 $ 60,000 $
50,000 $ 55,000
Appraisal costs 40,000 60,000 65,000 70,000 72,000
70,000
Internal failure costs 120,000 130,000 120,000 123,000
110,000 105,000
73. External failure costs 43,000 30,000 25,000 26,000 18,000
15,000
Client billings have gone up modestly over the three years,
perhaps 20% in total.
Questions:
1. For each cost category and each time period, determine its
percentage of total costs
for that time period.
2. Comment on the changes over the three-year time period and
the results of the
three-year effort.
12-3. Analysis of Quality Costs. Goldin Realtors has reported
the following data for 2020:
Prevention costs $374,000
Appraisal costs 615,600
Internal failure costs 651,400
75. resale or redistribution.
537
Summary & Resources
12-4. Classifying Costs of Quality. Paul Miller, controller of
Meta Medical, has reviewed
the costs of quality records for the past year. Meta Medical
provides calibration and
maintenance services for sophisticated medical equipment in the
Midwest. Training,
testing, and service calls are major costs that seem to grow each
year. Miller is trying
to measure possible ways of reducing the total costs of quality
as part of a review of
all processes and activities within the firm. He assembled the
following costs.
Miller is aware of two contracts that were cancelled this past
year because of client
complaints about poor service response. These contracts totaled
$60,000.
76. Questions:
1. Classify these costs according to prevention, appraisal,
internal failure, and external
failure.
2. Comment on the difficulty that Paul Miller likely has in
analyzing these and other
costs that might be costs of quality.
12-5. Target Costing. Janet Harris, general manager of Banks
Bus Service, is considering
adding a new route. Based on preliminary market research, she
has decided that the
fare should be $3.50.
Question:
If the company’s profit margin is 20% of revenues, what should
the target cost be?
12-6. Kaizen Costing. In 2019, Heights High School incurred
the following costs in its
athletic department:
77. Parts warranty, including replacement labor $ 92,000
Emergency trips to service client machines 86,000
Rental of substitute equipment to cover client downtime 43,000
Training of repair technicians (time and travel) 196,000
Inspection of finished repairs 45,000
Testing and certifications of calibration equipment 15,000
Development of client testing processes and diagnostics 31,500
Event
Cost per
Event
Track meet $600
Swim meet 950
Soccer game 820
79. events.
12-7. Value-Added and Nonvalue-Added Activities. Loretta
Love Clothiers manufac-
tures denim jeans in a process that passes through three
departments. The output of
each department is immediately transferred to the next
department to await further
work. Output from the last department in the process represents
the completed
product, which goes to finished goods inventory to await
shipping. Specifically, dyed
denim cloth bales are released from the storeroom (materials
inventory) and moved
to the Cutting Department where the fabric is cut to patterns.
The cut pieces are
sorted into sets of jeans. Any miscut pieces are scrapped. The
sets move to the Stitch
and Form Department where the pieces are sewn together.
Thread, zippers, and
snaps are added during this process to make the completed
jeans. The jeans are sent
to the Inspection and Finishing Department. Inspection makes
certain that jeans
meet quality standards; spoiled and defective jeans are removed
80. from the process.
Spoiled jeans go to the scrap pile. Inspectors must determine the
extent of defect in
those jeans considered defective. If the defect can easily be
corrected, the jeans go
back into the process where the work will be done. If the defect
cannot be corrected,
the jeans are treated as seconds and are sold unlabeled in
factory outlets and dis-
count stores. Those jeans successfully passing inspection move
to the labeling tables
where brand labels are stitched on each pair of jeans. The
completed jeans move to
the warehouse where they become part of the finished goods
inventory.
Questions:
1. Identify the activities in the denim jeans production process
that fall into process
time, inspection time, move time, wait time, and storage time.
2. List the activities in the denim jeans production process that
are candidates for
nonvalue-added activities.
82. 539
Summary & Resources
d. One molder who makes vinyl seals and plastic fittings by
using an injection
molder
e. Two assemblers who assemble parts into product
f. One product inspector who approves the final product
Questions:
1. Categorize each of the nine workers as a value-added or
nonvalue-added worker.
2. Compute the value-added labor ratio.
12-9. Nonvalue-Added Costs in a Doctor’s Office. Dr. Steve
Rosenthal has his own
medical practice. He specializes in the treatment of diabetics.
His staff consists of a
receptionist, two nurses, a lab technician, and a dietitian. As
patients enter the outer
83. office, they check in with the receptionist. The patient then
waits until called by a
nurse. When called, the patient moves from the waiting room to
the inner offices.
The patient must weigh in and is then assigned a room for the
rest of the work and
conferences. The nurse assigning the patient to a room gathers
all the personal data
for updating the medical records, such as insulin dosage,
medication, illnesses since
last visit, and so forth. The nurse also takes an initial blood
sample for blood sugar
testing and performs a blood pressure test. The patient then
waits until the doctor
comes in. After the doctor’s conference, the nurse returns to
take more blood sam-
ples, depending on what is ordered by the doctor. The patient
then waits until the
dietitian comes to review eating habits and talk about how to
improve meal plan-
ning and weight control. The patient returns to the receptionist
to pay for the office
visit and to schedule the next visit.
Questions:
84. 1. Identify the activities in the doctor’s office that fall into
process time, inspection
time, move time, wait time, and storage time.
2. List the activities in the doctor’s office that are candidates
for nonvalue-added activi-
ties. Explain why you classify them as nonvalue-added
activities.
12-10. Downsizing, Kaizen Costing, and Ethics. Biltmore
Insurance Corporation insti-
tuted kaizen costing in 2019 for all of its divisions. During
2018, the Claims Division
incurred costs of $5.6 million. Seeking to dramatically reduce
costs, the manager of
the Claims Division, Gail Norman, thought about cutting
$200,000 in payroll costs
for 2019 by eliminating all part-time claims adjuster positions.
However, she soon
realized that her kaizen cost target for 2020 would then be $5.4
million. Therefore,
she decided to institute her reforms much more slowly and,
consequently, reduced
payroll costs by only $40,000 during 2019.
86. complaints
b. Percentage of sales growth j. Number of pizzas per labor hour
c. Pounds of pizza scrapped k. Hours of community volunteer
work
d. Production cost per pizza l. Return on invested capital
e. Packaging materials cost per month m. Cost per delivery
f. Percentage of repeating customers n. Throughput time
g. Employee turnover percentages o. Suggestions per employee
h. Response time to customer inquiries p. Safety incident index
Question:
Classify the performance measures into the four categories
contained in a balanced scorecard.
Problems
12-12. Trends in Quality Costs. Kal Held Properties sells time
sharing for its condomini-
87. ums in Florida. Michael Leader, the controller, has just finished
a study of its quality
costs. Based on recent accounting reports, quality costs for the
2018 fiscal year are
as follows:
Prevention costs $100,000
Appraisal costs 300,000
Internal failure costs 400,000
External failure costs (including lost sales) 300,000
These costs are 11% of sales. The firm plans to implement a
program called “TQM
Victory” to reduce quality costs in total and as a percentage of
sales. Sales are
expected to expand by 10% per year. By 2020, it expects to
spend $300,000 on
prevention costs by substantially expanding employee training.
Improved inspection
efforts will add $100,000 to appraisal costs. By 2020, each
failure cost category will
89. be no higher than 0.3% of sales.
Questions:
1. What are total quality costs targeted to be in 2024?
2. Can the firm get to a 4% of sales target by 2024? Explain.
3. Comment on at least three key assumptions you see from the
data provided.
12-13. Analyzing Quality Costs Over Time. Management of
Spero Software Services (SSS)
has recently implemented a TQM program to eliminate a serious
level of “program
bugs” that has plagued its recent product releases. The
following activities and their
costs were taken from SSS’s records. The data are for 2018 (the
year prior to the
TQM program) and 2020 (the year after the start of the TQM
program).
2018 2020
Design documentation standards development $ 0 $100,000
Software testing—prerelease 50,000 140,000
90. Documentation of customer training process 0 20,000
Documentation of changes to software 5,000 20,000
Customer training 100,000 130,000
Software testing—customer site 130,000 80,000
Telephone “on-line” customer problem support 90,000 60,000
Software corrections and redesign 50,000 20,000
Field “troubleshooting” for customer support 140,000 80,000
Costs of contract cancellations 180,000 30,000
Revenues lost due to delivery date delays 0 120,000
Training for systems designers/programmers 100,000 250,000
Training for sales staff 10,000 80,000
Questions:
92. obtains its own newsprint. On average for all newspapers, 70%
of the newsprint is
delivered on time.
The following average cost data per newspaper have been
obtained for the past
year:
Costs of newsprint $980,000
Purchasing Department salary costs 240,000
Other Purchasing Department costs 125,000
Of the above newsprint, an average of $7,200 turned out to be
defective.
Because of the decentralized purchasing system, Fishwrap has
been unable to take
advantage of quantity discounts. Therefore, the company
reengineered the purchas-
ing process by introducing a corporate Purchasing Department.
Each newspaper
continued to purchase its own newsprint from approved
vendors. However, the
93. corporate controller, Diane Green, began to track the purchases
of all 20 newspa-
pers and used that data to negotiate quantity discounts and
resolve problems with
vendors. The on-time delivery rate improved to 85%. The defect
rate (in terms of
dollars) decreased by 60%. The average quantity discount
amounted to 2.8% of
newsprint cost. After reengineering, the average salary and
other purchasing costs
for the local departments decreased from $365,000 to $190,000.
The annual costs of
the centralized Purchasing Department are $1,800,000.
Question:
Evaluate whether reengineering the purchasing process was
worthwhile.
12-15. Nonfinancial Performance Measures. Jagoda Hair
Products manufactures a wide
range of shampoos and conditioners. The company has the
reputation for delivering
high-quality products on time. Each month the CFO, Ricky
Kaplan, issues a produc-
95. 12-16. Cost of Breakage and Defective Customer Service.
Bangkok Trucking Co. hauls
goods throughout Thailand. The company guarantees arrival at
the designated place
within an agreed two-hour period. Penalty for late arrival is
10% off the shipping
rate. The penalty for being a day late is 20% off shipping rates.
Each additional day
costs an additional 20%. The following portion of shipments
will arrive late:
July August September
Manufacturing cycle efficiency 94% 96% 92%
Total setup time (hours) 62 60 58
Overtime hours 70 73 76
Power consumption in kilowatt-hours (000s omitted) 802 832
838
Machine downtime (hours) 15 10 20
96. Number of unscheduled machine maintenance calls 0 0 1
Inventory value/Sales revenue 4% 4% 5%
Number of defective units received in raw materials orders 2 1 0
Number of defective units—in-process 35 40 55
Number of defective units—finished goods 18 12 24
Percentage of customer orders filled 100% 100% 100%
Percentage of on-time orders delivered 99% 98% 94%
Number of products returned by customers 0 0 1
More than 2 hours but less than 1 day late 3%
1 day late 2%
2 days late 1%
Breakage of shipped goods results in additional costs related to
replacing the goods,
reshipping them to their destination, and the disruption of the
98. The variable costs are
70% of the billed shipping rate. Fixed costs are 900,000 baht
per month.
Questions:
1. Prepare an estimate of the penalties, or revenues lost, from
late shipments during
July.
2. Prepare an estimate of the costs of shipments with breakage
payments.
3. Assume the company can make systems changes and
implement training programs
that will reduce the late shipments to:
More than 2 hours but less than 1 day late 2%
1 day late 1%
More than 1 day 0%
The percentage of goods shipped that would be damaged would
be cut in half. How
99. much could the company afford to pay for such changes and
programs?
12-17. Nonfinancial Measures of Product Quality. Howard Pen
Company manufactures
expensive calligraphy pens in two of its Ohio plants. One plant
is located in Cleve-
land, and the other is in Columbus. The pens produced are
similar but not identical.
Moe Howard, the president, wishes to evaluate the quality of
production in each
plant. He has asked the two plant managers, Larry Fine of
Cleveland and Jerome
(Curly) Howard of Columbus, to provide certain performance
measures for the most
recent year. After he threatened to tear out their tonsils, he
received the following
data from his two plant managers:
Cleveland
Plant
Columbus
Plant
101. 545
Summary & Resources
Question:
Provide an analysis of product quality performance for the two
plants.
12-18. Nonfinancial Performance Measures. Robert Newman
Associates manufactures
transducers in one of its plants. The number produced and sold
between 2019 and
2021 has remained steady. Specific performance data for these
three years are pro-
vided by the plant’s general manager, Howie Lee, as follows:
2019 2020 2021
Time from customer order to delivery 3 weeks 2.5 weeks 2.2
weeks
Number of failures at customer locations 76 88 91
Transducers produced per day per employee 25.6 29.1 30.6
102. Number of returned transducers 111 114 142
Manufacturing cycle efficiency 80% 89% 90%
Costs of scrap $1,897 $1,995 $2,066
Percentage of customer orders filled 85% 89% 91%
Average time inventories are held 20 days 26 days 28 days
First-pass yield 77% 72% 68%
Unscheduled machine downtime 10 hrs. 9.5 hrs. 8.5 hrs.
Number of engineering change orders 5 3 2
Costs of rework $8,144 $8,993 $9,857
Percentage of defects in delivered components 1.5% 1.9% 2.2%
Questions:
1. Did product quality improve from 2019 to 2021? Explain.
2. Did manufacturing productivity improve from 2019 to 2021?
104. consists of the following steps:
a. Ingredients such as flour, sugar, and cooking oil are received,
inspected, and
placed in the storeroom until requisitioned by production.
b. Upon requisition, the ingredients are transported from the
storeroom to the
production area and staged at the mixing area.
c. Ingredients are blended into a dough mixture in 40-pound
batches by six heavy-
duty mixers.
d. The dough is rolled on large boards and left to rise in a
holding area.
e. When the dough is ready, the boards are moved to the cutting
machines; and
the donuts are cut. Leftovers from each cutting are accumulated,
re-rolled on
another board, and processed through the cutting machine. At
the end of the
production day, leftovers and unprocessed dough on boards are
thrown into the