Essays on Case Assignment

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Supervisor] Cascade Seating Executive Summary Cascade Seating recently lost one of their most prime customers, General Motors, due to some appalling quality control practices. The company conducted a thorough inspection and realized that there were a number of faults within production practices and quality control methods. In addition, the machinery used for production was also not working at optimal levels. The company was facing downgrade by its major buyer which could affect its business in the future. This report has looked at some of the short comings in relation to the quality control procedures and recommendations have been provided in relation to short comings identified.

It has been noted that there are four main areas which require attention, which include material quality, cutting, sewing and inspection. Fish Bone Quality Costs by Category   Prevention Assessment Internal Failure External Failure Total Material           Inspection 22000       22000 Defects       3920 3920 Material Returned       25000 25000 Subtotal         50920 Sewing           Sewers sewed material incorrectly 7400 36975   44375 Sewing machine calibrations off   17748   17748 Rework 8200       8200 Poor Seaming     17360   17360 Training 1188       1188 Subtotal         88871 Cutting           Cutter cut machine incorrectly 5500 41412   46912 Cutting machine calibrations off   23664   23664 Pattern was incorrect     14790   14790 Dull blades on the cutting machine   13311   13311 Poor Fit     34720   34720 Training 2900       2900 Subtotal         136297 Quality Control           Incoming Inspection 54000       54000 Pattern Making 12000       12000 Final Inspection 114000       114000 Managers Salary 31000       31000 Subtotal         211000 Total         487088 Quality Control Department The performance of the current quality control department is not up to the mark. Majority of the quality control department’s focus is on inspecting the final product.

The inspection department and pattern making were not given high priorities. This allowed mistakes to go unchecked within the production of seat covers. The analysis of the department’s performance saw that approximately nine officials were given the duty of inspecting the final product whereas there were two and one officials working for inspection and pattern making department. Evaluation of Current Cost Accounting The current cost accounting system has a number of short comings. From technical aspect, the cost accounting system should provide a company with data that aids it in its decision making process and helps understand what elements affect cost of the company.

This would require collection of date to be collected from different business units of an organization and then assimilation of data to generate useful information for decision making. From a behavioural point of view, it helps evaluate the characteristics of the business or its products or services that are most valued by a customer and provides employees incentives to reduce costs. The above discussed attributes are parts that are essential for a company’s cost accounting system and attributes that seem to be missing from the current cost accounting system (Harris, Datar and Foster 250-270).

Recommendations There are three areas of concern that need to be addressed for the company to ensure the current issues are resolved. Firstly the company has to reduce the amount of material that is being lost to scrap. Secondly the focus of the inspection department must be shifted towards the production processes to ensure that loss due to rework is reduced. Thirdly the company has to update its machines and their quality control procedures to ensure such an event does not occur in the future.

Work Cited Harris, John K., Srikant M. Datar and George Foster. Cost accounting: a managerial emphasis. Upper Saddle River: Prentice Hall, 2003. Print.

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