subject
SAT, 10.11.2020 14:00 Sillydork7853

In Noname Co, Executive Director Benjamine recently found out there had been an increase in products failing quality checks. These checks were carried out in the Quality control Department, which tested finished goods before their release for sale. The product failure rate had risen from 1.5% of items two years ago to 4.5% now, and this meant an increase of hundreds of items of output a month which were not sold on to Noname's customers. The failed products had no value to the company once they had failed quality control, as the rework costs were not economic. Because the increase was gradual, it look a while for Mr Janoon to realise that the failure rate had risen. A thorough review of the main production operation revealed nothing that might explain the increased failure and so attention was focused instead on the QÇ Department. For some years, the quality control Department at Noname, managed by Jane Goo, had been marginalised in the company, with its two staff working in a remote Department well away from other employees. Benjamine, who designed the internal control systems in Noname, rarely visited the quality control lab because of its remole location. He never asked for information on product failure rates to be reported to him, and did not understand the science involved in the quality control process. He relied on the two quality control staff, Jane Goo and her assistant John Zong, both of whom had relevant scientific qualifications.
The two quality control staff considered themselves low paid. Whilst in theory they reporled to Mr
Janoon, in practice, they conducted their work with little contact with colleagues. Tho work was routine
and involved testing products against a set of compliance standards. A single signature on a product compliance report was required to pass or fail products in quality control and the compliance reports
were then with no one else seeing them.
It was eventually established that Jane Goo had found a local buyer to pay her directly for Noname's
products which had failed the quality control tests. The increased failure rate had resulted from her
signing products as having 'failed quality control' when, in fact, they had passed. She kept the proceeds
from the sales for herself, and also paid her assistant, John Zong, a proportion of the proceeds from
the sale of the failed products.

Required
(a) Explain typical reasons why an internal control system might be ineffective. (20 marks)
(6) Explain the internal control deficiencies that led to the increased product failures at Noname Co.
(20 marks)
(c) Discuss the general qualities of useful information, stating clearly how they would be of benefit to
Mr Janoon, and recommend specific measures which would improve information flow from the quality control lab to Mr Janoon (20 marks)

ansver
Answers: 2

Other questions on the subject: SAT

image
SAT, 22.06.2019 00:30, gracemartin4535
What causes the famous san francisco fog to move inland and back out to sea?
Answers: 1
image
SAT, 24.06.2019 09:40, bendavidhizar
Alaser tag arena sells two types of memberships. one package costs $325 for one year of membership with an unlimited number of visits. the second package has $125 enrollment fee, includes five free visits, and costs and additional $8 per visit after the first five. how many visits would a person need to use for each type of membership to cost the same amount over a one-year period?
Answers: 2
image
SAT, 25.06.2019 22:00, yasarhan2
Snakes, dogs, and humans have a vertebral column. snakes and dogs have tails, and humans have vestigial tailbones. dogs and humans have limbs, but snakes do not. most reptiles lay eggs, but a few give birth to live young. what do these structures suggest about the evolutionary pattern between the three organisms? 1. snakes and dogs are more closely related than snakes and humans. 2. snakes and humans are more closely related than humans and dogs. 3. dogs and humans are more closely related than snakes and humans. 4. dogs, snakes, and humans share a common ancestor. 5. the early ancestor of snakes and dogs is the same, and the early ancestor of humans is different.
Answers: 1
image
SAT, 26.06.2019 04:10, kikipie8504
Why has there been such a large increase in theft and other crimes in the u. s
Answers: 1
You know the right answer?
In Noname Co, Executive Director Benjamine recently found out there had been an increase in products...

Questions in other subjects:

Konu
Arts, 23.03.2021 02:50
Konu
Social Studies, 23.03.2021 02:50