COQ ANALYSIS AT PROJECT ESPANOL, STAR FASHION Star Fashions has recently completed one of...
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COQ ANALYSIS AT PROJECT ESPANOL, STAR FASHION Star Fashions has recently completed one of their several projects as below: Project Title Project Espanol Project output: Production of customized garments on order basis from Spanish buyer Total Revenue: Rs Net Gain: Rs Project period: Months Input Stage: days Process stage : months Output stage: month RECORD OF PROJECT EXPENSES Table Expenses head Amount Rs Remarks FOR CURRENT PROJECT ONLY: Quality training expenses for current project Joint quality control workshop with another Project Americana cost sharing between two projects Preparation of quality control manual Training on new quality control software Quality specialist on contract for monthsfor input and process stage only Chemicals purchased for lab test Total cost of production for ordered garments Monitoring and Evaluation staff expenses Additional Information: a At the end of project a big lot of garment rejected by client is laying in store. The value of garment at cost price is Rs They can be however sold at local market at discount price b Their quality control lab runs hours day.The allocated expense of lab is Rs hr Current project has consumed hours of lab work for quality check of garments c There was no record of semifinished goods rejected and lying idle during the sample check, but additional dye cost of Rs has been recorded to rectify the dyed garments during process. d Unused fabric dye at the cost price of Rs is laying in the store which can be used in next project Unresolved issues in COQ costing: aLast year the organization purchased quality control software costing Rs The software can be used for multiple projects in the organization. Should the project allocate some cost of the software to this projet Espanols prevention cost? bAt the output stage, the garment packaging was outsourced to a third party from Bishalnagar. Because of the below quality packaging the packager paid an amount of Rs penalty to the project. Should the project add this as project revenue or deduct from external failure cost or what to be done? COQ trend Although there is no standard set for the total COQ, project teams are required to plan the COQ with improvements, wherever possible. The COQ has varied between to of the revenue among different projects. Management has consistently suggested to improve in this regard. Project Americana: One of the projects in Star Project Americana has also recently delivered their output. Americana team has started reviewing the COQ. They have following finalised records in COQ: Project revenue Rs Table II Expense Amount Rs Remarks Prevention Monitoring Internal Failure External Failure TOTAL COQ Required: a Complete the COQ Table for Project Espanol making appropriate adjustments in Table and also addressing two unresolved issues given above. b Observe, compare and give your opinion about quality control in Project Espanol vs Project Americana. c Within a month, Espanol team is going to undertake another revenue project Project FTG with an expected revenue of Nrs How will you plan the COQ components. Prepare the COQ table for next project as per Americana format in Table II
COQ ANALYSIS AT PROJECT ESPANOL, STAR FASHION
Star Fashions has recently completed one of their several projects as below:
Project Title Project Espanol
Project output: Production of customized garments on order basis from Spanish buyer
Total Revenue: Rs
Net Gain: Rs
Project period: Months
Input Stage: days
Process stage : months
Output stage: month
RECORD OF PROJECT EXPENSES Table
Expenses head Amount Rs Remarks
FOR CURRENT PROJECT ONLY:
Quality training expenses for current project
Joint quality control workshop with another Project Americana cost sharing between two projects
Preparation of quality control manual
Training on new quality control software
Quality specialist on contract for monthsfor input and process stage only
Chemicals purchased for lab test
Total cost of production for ordered garments
Monitoring and Evaluation staff expenses
Additional Information:
a At the end of project a big lot of garment rejected by client is laying in store.
The value of garment at cost price is Rs They can be however sold at local market at discount price
b Their quality control lab runs hours day.The allocated expense of lab is Rs hr
Current project has consumed hours of lab work for quality check of garments
c There was no record of semifinished goods rejected and lying idle during the sample check, but additional dye cost of Rs has been recorded to rectify the dyed garments during process.
d Unused fabric dye at the cost price of Rs is laying in the store which can be used in next project
Unresolved issues in COQ costing:
aLast year the organization purchased quality control software costing Rs The software can be used for multiple projects in the organization. Should the project allocate some cost of the software to this projet Espanols prevention cost?
bAt the output stage, the garment packaging was outsourced to a third party from Bishalnagar. Because of the below quality packaging the packager paid an amount of Rs penalty to the project. Should the project add this as project revenue or deduct from external failure cost or what to be done?
COQ trend
Although there is no standard set for the total COQ, project teams are required to plan the COQ with improvements, wherever possible. The COQ has varied between to of the revenue among different projects. Management has consistently suggested to improve in this regard.
Project Americana:
One of the projects in Star Project Americana has also recently delivered their output. Americana team has started reviewing the COQ. They have following finalised records in COQ:
Project revenue Rs
Table II
Expense Amount Rs Remarks
Prevention
Monitoring
Internal Failure
External Failure
TOTAL COQ
Required:
a Complete the COQ Table for Project Espanol making appropriate adjustments in Table and also addressing two unresolved issues given above.
b Observe, compare and give your opinion about quality control in Project Espanol vs Project Americana.
c Within a month, Espanol team is going to undertake another revenue project Project FTG with an expected revenue of Nrs How will you plan the COQ components. Prepare the COQ table for next project as per Americana format in Table II
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