Question
Below are a list of value-added and non-value-added quality control activities. Part 1: Analyze the percentage of value-added and non-value-added activities. Show your work. Part
Below are a list of value-added and non-value-added quality control activities.
Part 1: Analyze the percentage of value-added and non-value-added activities. Show your work. Part 2: After thoroughly reviewing all the activities, you realize you cannot eliminate any of the non-value-added activities. List three plans for reducing the monetary impact of the non-value-added activities. Please avoid bullets for this submission and be specific with your recommendations. For example, "Increase training" is not specific and will not receive full points.
| Quality Control Activities | Activity Cost | Classification |
| Design engineering | $ 75,000.00 | Value-added |
| Disposing of rejected materials | $ 170,000.00 | Non-value-added |
| Finished goods inspection | $ 125,000.00 | Value-added |
| Materials inspection | $ 70,000.00 | Value-added |
| Preventive maintenance | $ 125,000.00 | Value-added |
| Processing returned materials | $ 135,000.00 | Non-value-added |
| Disposing of scrap | $ 215,000.00 | Non-value-added |
| Assessing vendor quality | $ 35,000.00 | Value-added |
| Rework | $ 410,000.00 | Non-value-added |
| Warranty work | $ 275,000.00 | Non-value-added |
| Total activity cost | $ 1,635,000.00 |
Below are a list of value-added and non-value-added quality control activities.
Part 1: Analyze the percentage of value-added and non-value-added activities. Show your work. Part 2: After thoroughly reviewing all the activities, you realize you cannot eliminate any of the non-value-added activities. List three plans for reducing the monetary impact of the non-value-added activities. Please avoid bullets for this submission and be specific with your recommendations. For example, "Increase training" is not specific and will not receive full points.
| Quality Control Activities | Activity Cost | Classification |
| Design engineering | $ 75,000.00 | Value-added |
| Disposing of rejected materials | $ 170,000.00 | Non-value-added |
| Finished goods inspection | $ 125,000.00 | Value-added |
| Materials inspection | $ 70,000.00 | Value-added |
| Preventive maintenance | $ 125,000.00 | Value-added |
| Processing returned materials | $ 135,000.00 | Non-value-added |
| Disposing of scrap | $ 215,000.00 | Non-value-added |
| Assessing vendor quality | $ 35,000.00 | Value-added |
| Rework | $ 410,000.00 | Non-value-added |
| Warranty work | $ 275,000.00 | Non-value-added |
| Total activity cost | $ 1,635,000.00 |
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Keys To Reading An Annual Report
Authors: George T. Friedlob, Ralph E. Welton
4th Edition
0764139150, 978-0764139154
