In: Accounting
Total Quality Management Sec-2 with Dr. Alamelumangai Raman for Sem
2 2020
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BS BAHR3102-2 AM 2020-2
Final Online Assignment - BAHR3102 - TOTAL QUALITY MANAGEMENT
Final Online Assignment Questions
Question 1
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A1.
1.Al Raffa Company reported the following costs for a month.
S.no
Activity
Amount In OMR
1
Quality Planning
1000
2
Service Audit
1500
3
Cost of Rework
2000
4
Cost of Retesting
2500
5
Customer Complaints
3000
Answer the following:( 5*2=10 Marks)
A. How much amount is spent on external failure costs and explain how the company can overcome the cost?
B. How much amount is spent on internal failure costs and explain how the company can overcome cost?
C. How much amount is spent on appraisal costs and explain how the company can overcome cost?
D. How much amount is spent on preventive costs and explain how the company can overcome cost?
E. What were the total quality costs of Al Raffa
Company for the month and explain the total quality cost?
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Question 2
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B1.
Case Let Analysis:
Oman Commercial Vehicle Manufacturer Company is one of the largest companies in the Sultanate of Oman. It is the third-largest manufacturer of passenger cars. Extensive quality enhancement and cost reduction task was initiated in September 2018. The outcome of this task helped the company to reach a profit of 28 million while the loss in the year ended March 2017 was 500 million.
The company followed the cost cutting system and saved more than 300 million of the company’s expenses over the last two years. The positive turnaround of the cost-cutting resulted in huge money gain, which does not even go beyond the projection. The vice president of the company Mr. Ahmed, who is at the manufacturing, was given the title of “Cost-cutting champion”, and he oversee the entire initiative.
Four Specific Areas Were Identified
· Direct material costs (which constitute roughly 65 per cent of all costs);
· Variable conversion costs (power, fuel, water, tools, etc.);
· Fixed costs- (labour, marketing, corporate expenses, plant operations, research, and development).
· Financial restructuring (working capital, debt restructuring, balance sheet, etc.).
In order to implement, drive and monitor the across the organization, three teams are formed namely— members, leaders and champions. The teams focused on cost-cutting measures, getting back the company to financially stable. For better communication across the company, employees were co-opted.
In order to achieve quality management project goals and cost-cutting exercise, which go simultaneously, employees helped each other. More importantly, the message conveyed to the employees was cost cutting measures were no way cutting corners. The employees in the same teams were involved in both exercises. This resulted in many win-win situations.
Answer the Following Questions:
1. List and explain the roles of teams in the above case. Any four
2. Identify and explain the four specific areas that Mr. Ahmed identified and how this cost plays essential roles in reducing the expenses for the organization.
3. List and explain the roles of top management related to the above case. Any two.
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Question 3
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C1.
The organization must adopt necessary tools and strategies for the
support development, and advance a process of continuous
improvement – Keeping this mind
Answer the Following Questions:
A. Select any three quality management tools that are necessary for a service organization and explain in detail.
B. State the advantages of this three tools and explain how it can be used in the service organization.
C. What are the challenges that you will be facing
when you are using this tools? Any four
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Question 4
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D1.
Answer the following questions:(5*2 =10
Marks)
D1
A. Identify the name of the chart and explain the related concept.
B. When should we use this chart?
C. What are the problems should be attempted on priority? Justify. Any two.
D. Is there any rule to be followed in the chart? Justify
E. What are the advantages of
using this chart? List and explain any two.
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Question 5
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E1.
Case Let Analysis :
Al Ayan Company is one of the medium level company producing play toys for children in Sultanate of Oman. Since last year, the company has been receiving increasing complaints on the quality and durability of toys. The company wanted to address this issue very seriously. The company benchmarked with another play toy company and planned to concentrate on Quality aspects such as the material used, cost of the material, no of defects, scrap items etc. The company wants to improve the image in public and make sure that the company manufacture toys with high quality.
Answer the following questions
A. Identify and explain the level of benchmarking used by Al Ayan Company. Any three points.
B. Link the case related to the four phases of benchmarking and explain in detail.
C. If Al Ayan adapts Deming’s Principles, will it improve the image of the company in public? Justify with any two principles.
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