QUESTION 4

(a) Significant portion of product costs are determined during product design. Properly designed products can save costs in various ways. Discuss the impacts of product design on product costs.

(b) Skilled and motivated employees are highly valuable to organisations. Discuss the importance of maintaining employees' knowledge, skills and motivation in the relation to organisations' sustainability

(c) For each of the situation below, discuss the (1) potential threat and the (2) appropriate control procedure that should have been implemented.

(i) JJJ Manufacturing received a visit from a prospective customer. The prospective customer wanted to visit the manufacturing plant before deciding on a big order. During the visit, the prospective customer was shown the whole production line. The prospective customer seemed impressed and recorded the processes using his smartphone.

(ii) An employee at Syarikat ABC Sdn. Bhd. was recently terminated due to an alleged bribery case. The employee did not admit to the behaviour although a supplier has disclosed that the employee has asked for kickbacks for all purchases made from the supplier. One day after his termination, the employee returned to his office to take his belongings, He took almost four hours to pack his things, save some personal documents from his computer, and left the office.

(iii) Among the responsibilities of the factory manager at Kilang AAA was to evaluate and approve machineries for disposal. In the year 2020, he has disposed three fabrication machines that he has verified as either obsolete or worn out. According to the disposal documents, the machines were disposed at the local scrap yard.