Question 2 Answer for (b)
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Question 2
Answer for (b)
![QUESTION 2
A. In Akhwan Company, operations director Mr Tamad recently realized there had been an
increase in products failing during the final quality checks. These checks were carried out
in the QC (quality control) laboratory, which tested finished goods products before being
released for sale. The product failure rate had risen from 1% to 4% in two years' time which
meant an increase of hundreds of items of output a month which were not sold to Akhwan's
customers. The failed products had no value to the company once they had failed QC as the
rework costs were not economic. Because the increase was gradual, it took a while for Mr
Tamad to realize that the failure rate had risen.
A thorough review of the main production operation revealed nothing that might explain the
increased failure and so attention was focused on the QC laboratory. For some years, the
QC laboratory at Ikhwan, managed by Ramly, had been marginalized in the company, with
its two staff working in a remote laboratory away from other employees. Operations director
Mr Tamad, who designed the internal control systems in Ikhwan, rarely visited the QC lab
because of its remote location. He never asked for information on product failure rates to be
reported to him and did not understand the science involved in the QC process. He relied on
the two QC staff, Ramly and his assistant Rahman, both of whom did have relevant scientific
qualifications.
The two QC staff considered themselves low paid. In practice, there are supposed to report
to Mr. Tamad. The work was routine and involved testing products against a set of
compliance standards. A single signature on a product compliance report was required to
pass or fail in QC and these reports were then filed away with no-one else seeing them.
It was eventually established that Ramly had found a local buyer to pay him directly for any
of Ikhwan's products which had failed the QC tests. The increased failure rate had resulted
from his signing products as having 'failed QC’ when, in fact, they had passed. He kept the
proceeds from the sales for himself, and also paid his assistant, Rahman, a proportion of the
proceeds from the sale of the failed products.
Required:
b. Discuss deficiencies in the internal control that led to the increased product failures at
Akhwan.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F900e627c-7638-4b1b-a4f4-37390f19c81e%2F13cfa083-3cb3-4aca-88c5-dd4d9bded782%2F6vymhz_processed.jpeg&w=3840&q=75)
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