Why choose us?

We understand the dilemma that you are currently in of whether or not to place your trust on us. Allow us to show you how we can offer you the best and cheap essay writing service and essay review service.

Quality Problems Faced by Cascade

Cascade Seating Case

Describe the Quality Problems Faced by Cascade
The Executive Director,
Re: Quality Problems Faced by Cascade

  1. The major problems faced by cascade stem from inadequate supervision and inefficiency of
    certain members of staff. The inconsistencies in sizes of seat covers as ordered by GM are as a
    result of numerous faults by the production team that consists of cutters and sewers.

Reasons for Scrapping of material % Total   Last
Cutter cut material incorrectly 28    
Cutting machine calibrations off 16    
Pattern was incorrect 10    
Dull blades on the cutting machine 9    
Sewers sewed material incorrectly 25    
Sewing machine calibrations off 12    
Basis of Apportionment (Scrapping)   costs  
Sewing 31% 17360 8200
Cutting 62% 34720  
Administration (Material defects) 7% 3920  
    56000 8200
Labor Costs      
Sewing   139200  
Cutting   380160  
Administration   145000  
Administration ( Staff Training)   4088  
Total   668448  

Cascade Seating 2

The normal working hours per week is 40

The normal working weeks per year is 48

  1. The Quality Issues with Cascades Seating Case Machine calibrations put off 16%
    Incorrect material cutting 28% incorrect measurements

Reasons for scrapping materials

Materials sewed incorrectly 25% incorrect measurements
Sewing calibration put off 12%
The major quality issues from GM are the ill fitting cover seats that have been supplied. The root
causes of cascades seating problems are from the cutting department which after cutting the
materials incorrectly due to the lack of application of the calibration machine that is mostly off
and it leads to the incorrect measurements being passed to the sewing department. The wrong
measurements also lead to the switching off of the sewing calibration because the measurements
are not applicable.

  1. The total cost of material scrapping which amounted to $56,000 dollars is apportioned
    relatively between the sewing department and the cutting department 1 . The cutting department
    accounts for 62% while the sewing department accounts for 31% of the total scrapping costs
    which amounts to $34720 and $17360 respectively. Defective materials are apportioned to the

1 Maher, Lanen and Rahan, Fundamentals of Cost Accounting, 1st Edition, McGraw-Hill, 2005.

Cascade Seating 3

administrative department as they are the ones who ordered the materials and they account for
7% of the $56,000 material scrapping costs which adds up to $3920.

  1. The performance of the quality department is below average. The lack of coordination
    between the production department and the control department led to wrong conclusions that the
    performance of the company was improving. The cutting department is leading with excess
    wastage as its inconsistencies in material sizes also lead to inefficiencies in the sewing
    department. The control department has failed to address the inefficiencies in the cutting
    department. It’s not possible for the sewing department to perform positively if the cutting
    department is underperforming. The control department has failed in its obligations of
    controlling the various departments.
  2. The current cost accounting department system is mostly related to marginal costing where
    each unit of labour per hour and the production department’s rates of production are evaluated
    and compared to the previous years and the variances analyzed 2 .
  3. The final recommendations should be overhauled the control department and a liaison office
    created to link the various departments including the production and the control department. The
    staff of the cutting department should be retrained and more supervision directed to the cutting
    department as mistakes from the cutting department will also lead to more problems in the
    sewing department. The members of staff who are persistently cutting materials incorrectly
    should be severely reprimanded and more repeats of such mistakes should lead to dismissals.

2 Horngren, Datar and Foster, Cost Accounting – A Managerial Emphasis, 11th edition, New York: Prentice Hall, 2003.

Cascade Seating 4


Maher, Lanen and Rahan, Fundamentals of Cost Accounting, 1st Edition, McGraw-Hill, 2005.
Horngren, Datar and Foster, Cost Accounting – A Managerial Emphasis, 11th edition, New York:
Prentice Hall, 2003.

All Rights Reserved, scholarpapers.com
Disclaimer: You will use the product (paper) for legal purposes only and you are not authorized to plagiarize. In addition, neither our website nor any of its affiliates and/or partners shall be liable for any unethical, inappropriate, illegal, or otherwise wrongful use of the Products and/or other written material received from the Website. This includes plagiarism, lawsuits, poor grading, expulsion, academic probation, loss of scholarships / awards / grants/ prizes / titles / positions, failure, suspension, or any other disciplinary or legal actions. Purchasers of Products from the Website are solely responsible for any and all disciplinary actions arising from the improper, unethical, and/or illegal use of such Products.