Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Discuss and Analyse a five year trend analysis for the five year quality costs for Pro printing Proprinting, Ltd is Australian owned and specializes in

Discuss and Analyse a five year trend analysis for the five year quality costs for Pro printing

Proprinting, Ltd is Australian owned and specializes in the digital printing. Proprinting provides online printing and run by qualified tradesmen who print the jobs to perfection. The services include Business Cards, Stickers, Posters, Brochures, Folders, Booklets, Letterhead and Newsletters, Tri-Folds, Manuals, Post Cards, Flyers, Catalogues, Envelopes. The printing facility is loaded with the latest innovations in OFFSET and Digital printing technology. The team is comprised of digital graphics specialists and experienced press operators. It's this unique combination of technology and talent that produces the brilliant results.

Ethan, the manager of the company informed that in 2019 the quality compliance costs were approximately 14% of sales. He aims to implement zero defect production process. However, Ethan also aware that it is important to reduce the non-value-added activities and protecting the brand image while improving company's profit. Therefore, he planned a five- year quality costs management program to improve the quality performance. He sets an ambitious plan to reduce the quality cost to around 2 % of sales.

image text in transcribedimage text in transcribedimage text in transcribed
The following information provides indicators to the success of the quality costs management program. YEAR SALES REVENUES QUALITY COSTS 2020 $2 960 000 $348 400 2021 3 750 000 $481 750 2022 4 420 000 $532 490 2023 5 230 000 $242 175 2024 6 000 000 $117 800 Meanwhile, detail of the quality costs reports across the five years is provided below:Quality cost Activity 2020 2021 2022 2023 2024 Improvements in Quality process $9,600 $19,540 $57,455 $25,650 $15,000 Quality training of staff to use new equipment and $6,750 $32,710 $53,200 $42,475 $16,000 Purchasing of equipment and updated manuals $3,750 $9,750 $25,235 SO $0 Quality reporting (move from yearly to a monthly basis) $3,500 $6,000 $20,000 $5,500 $2,500 Proofreading printed materials $43,950 $99,950 $88,000 $31,850 $12,000 Other inspection (paper and inks from suppliers) $44,650 $43,800 $33,400 $ 18,500 $13,000 Correction of print errors detected prior to delivery $29,750 $38,750 $33,750 $20,000 $10,000 Recalibration of equipment $26,250 $37,500 $48,550 $20,000 $6,800 Production process breakdown (downtime) $72,000 $63,750 $67,400 $30,750 $20,500 Rework of poor quality detected by clients after delivery $53,560 $61,100 $51,975 $26,800 $10,500 Waste of materials for printing returned by clients $54,640 $68,900 $53,525 $ 20,650 $1 1,500 $348,400 $481,750 $532,490 $242,175 $117,8005-Year Trend Analysis 180000 700% 661% 160000 600% 140000 500% 120000 100000 400% Quality Cost in $ Quality cost change % 80000 1558309700 312% 300% Cha 60000 128000 121400 108200 105500 200% 40000 88600 162% 68006 And 137% 7362570750 142% 20000 100% 503507450 100% 23600 4470 33 50616 32800 0 2978 0% 2020 2021 2022 2023 2024 Years Prevention Costs Apprasial Costs Internal Failure External Failure Prevention Costs % Apprasial Costs % Internal Failure % External Failure %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Plus

Authors: Robert Libby, Patricia Libby, Daniel Short

8th Edition

1259116832, 9781259116834

More Books

Students also viewed these Accounting questions

Question

7. One or other combination of 16.

Answered: 1 week ago