Quality Control of Accounting, Finance and Taxation

Quality control is one of the key aspects of successful business development. It requires extensive control of the manufacturing process, as well as maintenance of the qualification level of the personnel. The aim of this paper is to analyze the case study of Master Plumbing Corporation associated with the increase of defected production as well as rejects. Hence, the solution of the problem linked with the decrease of revenues will be closely linked with controlling workers and the length of their breaks, which is regarded as the key reason for the decreased quality problem.

The revenue forecast for this assignment is performed on the basis of the planned values associated with manufacturing rates and quality. In general, the numbers that were taken for the forecast are based on the results of the previous years and the average values of the industry in general. Considering the fact that the key reason of the defected production is linked with the increased manufacturing tempos, the workers have gained enough experience of operating the manufacturing line, hence, they will be able to reach the results of the year 2009. Additionally, when the manufacturing tempos will be decreased to normal (due to the implemented brake control), the amount of defective parts and rejects is achieved decrease.

Table 1. The forecasted revenue.

MPC Plan 2011 Per shift Per line Plan Total
Total Units Produced 12500 37500 225000
Acceptable Units produced 11500 34500 207000
Acceptable Units produced % 92%
Seconds Produced 750 2250 13500
Seconds Produced % 6%
Rejects 250 750 4500
Rejects % 2%
Revenue per line 2343000

The percentage of the acceptable units should be close to the average parameters of the industry in general, however, the year 2010 revealed a decline in manufacturing quality. The numbers of the year 2011 should be higher and gradually reach the global parameters. It will be impossible to achieve 94%, as the workers will have to feel all the aspects of control, and realize the consequences of their negligence. While the control process is not disclosed for them, the realization will require several months.

Nevertheless, independently of the control reasonability, the adequacy of the received information is highly doubted. It should be stated that the values manufacturing control should be linked with stimulating workers to work better and manufacture more products per shift. However, the offered approach with controlling the length of internet sessions is the doubtful solution to the problem, while the problem should be eliminated. If internet access is regarded as the key reason for the decreased quality, this access should be terminated.

Standardized financial aims may be regarded as the key stimulant for reaching the required parameters and values of the manufacturing process in general. The workers need to realize that their salary depends on the incomes of the company, while the incomes are closely linked with the manufacturing volumes. Hence, the “Standard” financial targets may be regarded as the optimal solution to the problem. Though, targets should be backed up by the tools of achieving these aims.

This is explained by the fact that regardless of the industry manufacturing data, the workers have the stated plans. Though, the improvement of conditions for the rest affected the manufacturing quality, while the aims and targets stayed the same. Implementation of the undisclosed monitoring measures will inevitably cause essential expenses and will require too much time for analyzing the acquired information, and further adoption of the corresponding measures.

Hence, instead of focusing on the aims, the CEO needs to eliminate the root of the problem. Internet access may be returned only after achieving the manufacturing target. Additionally, the workers may be offered two variants: material compensation (i.e. bonus for the achieved results), or an opportunity to access the internet during breaks. However, they should also be warned that in the case the manufacturing rates decrease, the team will be fined, and internet access terminated again.

The workers’ productivity may be improved by implementing the quality control measures, which means the control and stimulation of the manufacturing process, while the monitoring plan presupposes monitoring the break processes. Considering the fact that the key aim is to improve the manufacturing quality of the plumbing items, monitoring measures need to be implemented into the production line. Additionally, persons responsible should be assigned, who could control and organize the other team members.

As for the matters of internet control and monitoring the breaks, it should be stated that the company has an opportunity to solve the existing problem by implementing control, however, there is no need to make it undisclosed, as this may be regarded as a reason to sue against the company for unauthorized monitoring. If workers are warned, that they are monitored, and the internet access is logged, the violators of the working rules will aim to avoid punishment, and will probably stop exceeding the break limits.

If the company has an opportunity to implement the control measures, these measures should be aimed at improving the manufacturing process but not violating the working norms, as well as increasing the possible rates of violations by workers. Monitoring may increase these rates, as it will inevitably stimulate the growth of dissatisfaction rates among workers.

Internet usage logs, if created, should be created with wider functionality than simple monitoring. They may be used for limiting internet access sessions. The restrictions will be aimed at beating the psychological effect of internet access, a sense of time may be easily lost. This means that a message, reminding of the necessity to go on working maybe even more effective than monitoring and looking for violators.

The monitoring plan, in general, is rather potential, however, the functionality of monitoring may be essentially extended if workers are explained the importance of successful development of the company, and the significance of this development for them. It means that the workers should be motivated to work and regard internet access as a favor provided by the company, which is a result of the effective work and faithful treatment of the workers to the company and their teams.

Quality control practices that should be implemented within the MPC should not violate the human rights and the contractual obligations of the company. Additionally, the company should focus on the roots of the problem but not on the consequences and symptoms of further crisis. The workers should be motivated to perform without defects, and monitoring, if provided, should in no way be undisclosed, as this may be regarded as a violation of privacy rights. The numbers for the forecast for part a may be used as the stimulant or the aim that needs to be achieved by the policy update.

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BusinessEssay. (2022, March 12). Quality Control of Accounting, Finance and Taxation. https://business-essay.com/quality-control-of-accounting-finance-and-taxation/

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BusinessEssay. "Quality Control of Accounting, Finance and Taxation." March 12, 2022. https://business-essay.com/quality-control-of-accounting-finance-and-taxation/.