...needs of the business. As a result of a personal interview with the Harriett Moore, Director of Loss Prevention of Goodwill Industries of the Chesapeake Inc I was able to determine her areas of responsibility, the skills required for her job, the organizations she is involved with, and the activities she completes to do her job. Harriett Moore has been the Director of Loss Prevention for Goodwill Industries for the last four years, and she oversees loss prevention for the retail stores. She currently has a bachelor’s degree in business administration and a minor in criminal justice. She felt that the knowledge she gained from her business and criminal justice degree has helped her to gain the necessary skills to effectively do her job. H. Moore (personal communication, April 9, 2015) stated that the skills needed for loss prevention jobs in her opinion were “ability to work independently, excellent organizational skills, attention to detail, good interpersonal skills, good communication skills, strong analytical skills and ability to conduct ethical investigations.” All of these skills she felt were critical in the completion of her job. There is a vast array of responsibility under Harriet’s leadership. Currently, Harriett manages three staff members. Her, along with her staff, oversee the investigation of loss prevention issues. She oversees the development of loss prevention procedures, which includes sharing procedures with employees and training them. Fischer, Halibozek...
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...transactions are accurately recorded. (4) Assets are safeguarded from loss or theft. (5) Business activities are performed efficiently and effectively. The following help achieve the above: • Simple, easy-to-complete documents with clear instructions. • Appropriate application controls (e.g., validity or field checks). • Signature space for persons responsible for completion and review of documents. • Prenumbering of the documents. Revenue Cycle—Major threats & control (1) Sales to customers with poor credit—(uncollectable sales and losses due to bad debts). Prevention—independent credit approval function and good customer accounting. (2) Shipping errors—wrong quantities, items, or address: mad customers. Prevention—reconcile shipping notices and picking tickets, bar code scanners, data entry controls. (3) Theft of inventory—loss of assets ----> inaccurate records. Prevention—Secure inventory and document transfers, good accountability for picking and shipping, and frequently reconcile records with physical count. (4) Failure to bill customers—loss of inventory, and erroneous data about: sales, inventory, and receivables. Prevention—Separate shipping and billing. Prenumber of shipping documents and reconciliation of all sales documents. (5) Billing errors—pricing mistakes, overbilling for items not shipped or back ordered—loss assets and mad customers. Prevention—reconciliation of picking tickets and bills of lading with sales orders...
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...SUBJECT: Three types of cost when quality considerations are made Given the highly competitive nature of today’s markets we as a company must provide high quality products to survive. Quality itself has become a major competitive factor and in many ways is a contributing factor in success or failure. The intent of this memo is to identify, explain and evaluate the three types of cost associated with quality. The three types of cost of quality are Prevention costs, Appraisal costs and Failure cost (Both internal and External) (Stevenson, 2009 pg. 421) The first type of cost is Prevention costs. Prevention refers to all costs associated with preventing the failure or non-conforming product or service occurring in the first place. Some specific examples of prevention costs are development of equipment, maintenance and calibration of inspection tools, audits of supplier materials, quality training of employees and the development and implementation of quality control processes. Although initial investments are required to implement prevention costs, they are often considered to be the least expensive cost of quality as many preventive costs and / or processes are repeatable with minimal reoccurring expense. The second type of cost is Appraisal cost. Throughout the process of a product or service being produced an inspection of that product or service must be performed in order to make sure that it is conforming to the quality standard set forth by the customer. Some examples of Appraisal...
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...(2008), there are three categories of these costs: appraisal, prevention, and failure. Appraisal costs may be defined as "Costs of activities designed to ensure quality or uncover defects" (Stevenson, 2008, p. 421). We incur appraisal costs when we inspect or test products, or conduct other activities to reveal defects in our products or to assure that they are free of defects. These costs include the costs of the inspectors, quality audits, tests, test equipment, and field testing. Each time someone takes a mechanical pencil off the conveyor belt and tests its functionality, he or she is inspecting, or appraising, our products. Each such occurrence causes appraisal costs. Prevention costs are the costs "of preventing defects from occurring" (Stevenson, 2008, p. 421). We pay prevention costs when we plan ways to prevent defects: planning and administration systems, training, quality control, working with vendors, and attempting to decrease defects by paying extra attention to design and production. Every hour that designers spend working on ways to improve our mechanical pencils we pay prevention costs. The same is true when our procurement people attempt to get better materials and when we pay for pay more for better materials. Failure costs are "caused by defective parts or products or by faulty services" (Stevenson, 2008, p. 421). There are two kinds of failures: internal, discovered during production, and external, discovered after delivery to customers. There are many reasons...
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... As we continue to move toward the end our quarterly objectives. I wanted to take the time to explain some of our costs. In our particular field of designing and manufacturing products, we are always engaging in ways that we can mitigate loss and improve our processes. Performing such changes will give a stronger presence in the market by allowing us to remain competitive. While we are performing our analysis on different aspects of the company, we look at the three main types of cost. When we remain devoted to improving our costs, and the faults related, we show our same devotion to our consumers. This is portrayed by the quality of products we put on the shelves. Prevention costs, appraisal costs and Failure costs are areas that we must strive to mitigate any loss from our past experiences. Prevention cost is an expense related to our efforts in quality control. If we take necessary measures to proactively identify and prevent loss from our processes, the cost associated with actions would be our prevention cost. This was recently seen by the required staffing training we implemented for all employees working on the assembly line. This was our way of making sure that we out our best foot forward and in-turn reduced potential loss seen in prior months of similar capacity. Appraisal costs are how we were able to identify the need for the previously mentioned preventative cost. Appraisal cost is the cost incurred for activates helping us to make sure we have unswerving...
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...conditions for the research environment are most appropriate for our organizational problem. What data collection instrument(s) will be used? Survey? Interview? There are two methods of research in which we are preparing to use. One method of research is the observation method and the other is the focus group method. Both methods are an excellent choice when trying to take control of the losses of a business do to theft. The observation method which is sometime referred to as the field method will give Bloomingdale’s loss prevention team the ability to observer and gather first hand information from the loss prevention team on the behaviors of its employees’ theft problems and issues as well as the consumers. The biggest advantage of this method is that is gives the loss prevention teams an opportunity to participate in the survey. It also gives a greater validation to the information that was retrieved. The focus group works well with each individual loss prevention group because it gives them a opportunity to work closely together in small groups and will limit the amount of information to just the participants in the group. When using a focus group it is a little more expensive than a...
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...quality management demands that the total cost and benefits of quality performance be first understood by everyone in the company. In order to successfully launch a companywide Six Sigma, the first step is to dig out all relative cost categories that associated with managing quality and quality failures. The marketing research and other similar costs categories should all be included in the Cost of Quality (CoQ) analysis. 1.1 Identification of Cost Categories Based on Roberta’s current CoQ analysis, there are 18 cost categories with question marks that she either did not have data for or wasn’t sure about including. For the prevention costs, Roberta is having problem with the costs of marketing research, customer/user perception surveys/clinics, supplier quality planning, supplier quality planning, quality program planning and reporting, and other prevention costs. As mentioned earlier in the case, Roberta wasn’t sure how the marketing manager would feel about including marketing research as a category in the CoQ because it seems that marketing research as well as the customer perception surveys have no direct relation with preventing product defects. In fact, the fast development and introduction of new product is a key factor that differentiates Aqua Fun from their competitors in the same market. To ensure the quality of the new products before they are launched into the market, it is essential for the company to develop effective and well-designed production plan through market...
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...and prevention costs. I will address each with appropriate explanations. We will begin by discussing failure costs. Failure costs have two parts; internal, which are defects, delays, or machinery issues among others that take place before our products leave company grounds. The other is external costs which are costs incurred by us after our products have left our hands and are now in consumer hands. These are things such as warranty costs, and reputation costs which, unfortunately, can be substantial. Examples on internal costs relating to Slosh happens when our machines need repair and we lose time with production, pay for employees during down time, and potential loss of product due to the machine malfunction. Once the machine is back up and running there will be a short transition to make sure the machine is producing product up to our standards. The lost product will also need to be disposed of. Another internal cost that happens is when our computers decide to malfunction. The cost to retrieve lost information and/or re-enter lost information takes more time for employees and other overhead factors. Analysis of both of these examples also takes time and extra costs to determine what has gone wrong and to decide the best course of action in fixing the root issues. External failure costs occur after our products have left our hands and have been placed into consumer hands. As we warranty all of our products for the first year of use, this will be our main external cost...
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...savings. While both techniques are valid techniques, they are but pieces of a larger risk management pie that requires techniques to consider when looking into solutions for optimal risk management. There are many perspectives on how to manage financial risk but for the purpose of this analysis I will be evaluating two specific experts Dr. James Kallman and Robert S. Kaplan and Co-Author Annette Mikes on their techniques for managing risk. Dr. Kallman utilizes a risk management solution tree which involves the GEICO approach, these risk prevention techniques include: Government mandates, Education, Information management, Contractual Transfer, and Operations Management; these techniques preserve assets, save lives, and save risk financing costs. In analyzing Robert Kaplan & Annette Mikes techniques requires a qualitative distinction between the risk levels in order to properly categorize them as Preventable risk, Strategy Risks, or External Risks, with the belief that we can influence risk by not buying into standard forecasting and biases which leads to misreading ambiguous threats. After analyzing both Dr. Kallman’s assessment of Financial Risk Management techniques and comparing to Robert S. Kaplan & Annette Mike’s techniques I believe it will be clear that that Dr. Kallman’s technique for risk management provides solutions that are manageable and reasonable approaches to eliminating and reducing risk taking into consideration numerous factors, and the biggest factor is...
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...best quality humanly possible with an absolute 0% tolerance for substandard products. A. Any serious attempt to deal with quality issues must take into account the costs associated with quality. Those costs can be classified into three categories: appraisal, prevention, and failure (Stevenson & William 2008). Let us examine the preceding categories. B. Appraisal cost can be defined as the procedure or method to produce high quality products or find defect / flaws in the initial stage. Appraisal costs may include field testing, double blind surveys, close inspections, testing in controlled environments, and quality auditing. Prevention costs are related to attempts to prevent defects from occurring. They include costs such as planning and administration systems, working with vendors, training, quality control procedures, and extra attention in both the design and production phases to decrease the probability of defective workmanship. Failures costs can be internal or external; internal failures are those discovered during the production process; external failures are those discovered after delivery to the customer. Internal failures occur for a variety of reasons. The absolute worse area to have a failure is external. This can affect the company’s reputation to say the least. If the...
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...Student: John Loyd Student ID: 000329013 Course: QHT1 Business Management Tasks Task 1 Cost Quality Relationship Product production comes with many types of costs. Four of the most common costs are prevention costs, appraisal costs, internal failure costs and external failure costs. These four costs are called quality costs and are costs that all businesses that produce products will pay. The amount of money that will go to each cost is dependent on the amount spent on the other costs. In other words, an increase in one type of cost can result in a decrease in another. Businesses need to understand the nature of each cost in order to understand for which cost to budget. The first type of cost is prevention costs. Prevention costs are the most vital costs in which to invest. Prevention costs are the costs that are acquired when the company prevents the occasions of defects in the first place. Basically, this is the cost of producing quality products. These costs include improvement in the manufacturing methods used to make the product, properly maintain the equipment that is used, maintaining a good relationship with vendors, employee training and more. Any cost that is associated with the lessening of creating faulty products is a prevention cost. For instance, a company that pays trainers to fully train each employee and offers paid training will see a decrease in the human error involved in manufacturing. A company that does not take the time to do this will...
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...value-oriented, specialty department store offering quality exclusive and national brand merchandise to the customer in an environment that is convenient, friendly and exciting. (Associate Handbook, pg.2) Kohl’s core value is based on the word Values: V – Very result oriented A – Acts with integrity L – Leverages teams and partnerships U – Uses an informed approach E – Engaged, prepared and focused S – Strives to develop self and others The six core values are the heart of each associate and are the DNA of Kohl’s. Kohl’s favors a duty-based ethical system for their associates. The ethical responsibility is placed on each associate to not only monitor themselves, but also all the others in the store where they work. Internal and external thief contributes to most of the losses Kohl’s has, internal thief the highest. Kohl’s has an established program to reward honesty and making the company aware of unethical, fraud or thief behavior or any Kohl’s associate. The company has a off...
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...that may jeopardize the success of a project or achieving a goal. Business continuity planning "identifies an organization's exposure to internal and external threats and synthesizes hard and soft assets to provide effective prevention and recovery for the organization, while maintaining competitive advantage and value system integrity”. In addition to some disagreement among business continuity professionals regarding the BIA and risk assessment definitions and outcomes, disagreement also exists regarding the order of execution: whether it is best to perform the risk assessment before, during, or after the BIA. While many professionals argue that it is best to perform the risk assessment before the BIA to establish the risk landscape in which the organization operates, Evaluation argues the opposite. What is the difference between a Disaster Recovery Plan and a Business Continuity plan? A disaster recovery plan is a documented process or set of procedures to recover and protect a business IT infrastructure in the event of a disaster. Such plan, ordinarily documented in written form, specifies procedures an organization is to follow in the event of a disaster. Business continuity planning "identifies an organization's exposure to internal and external threats and synthesizes hard and soft assets to provide effective prevention and recovery for the organization, while maintaining competitive advantage and value system integrity”. To emphasize the importance of disaster recovery...
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...The IUCN Anti-Fraud Policy February 2008 – Version 1.0 Office of the Director General The World Conservation Union Rue Mauverney 28 1196 Gland, Switzerland Tel: +41 22 999 0296 Fax: +41 22 999 0029 www.iucn.org Policy Version Control and Document History: The IUCN Anti-Fraud Policy Title Version Source language Published in French under the title Published in Spanish under the title Responsible Unit Developed by Subject (Taxonomy) Date approved Approved by Applicable to Purpose IUCN Anti – Fraud Policy 1.0 released February 2008 English Politique de l’UICN de lutte contre la fraude Política para la Prevención de Fraudes de la UICN Office of the Director General IUCN Oversight Unit Fraud, Internal Control, Risk Management November 2007 Director General and Global Management Team All IUCN Staff Members world-wide The aim of the IUCN Anti-Fraud Policy is to safeguard the reputation and financial viability of IUCN through improved management of fraud risk. It sets out explicit steps to be taken in response to reported or suspected fraud, as well as measures that will be taken to prevent or minimize the risk of fraud. IUCN Internal Control Policy Framework COSO Standards IUCN Code of Conduct and Professional Ethics for the Secretariat Sent to all staff members world-wide, available on the IUCN Knowledge Network (intranet), provided for information to all partner organizations and suppliers with contracts with IUCN, and available publicly on request. Is part of Conforms...
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...and so forth right down the line. These are appraisal costs, prevention costs and failure costs, both internal and external. Please see explanation below. Appraisal costs consist of and are not limited to things like testing and inspections of products and production equipment, quality audits, laboratory research and field-testing. An example of this being the monthly shutdowns of the production equipment for maintenance, inspection and repair. Also the weekly lab testing both destructive and non destructive. Prevention costs are the costs associated with preventing defects from happening at all, such as training of employees, production workers, and vendors that supply parts and labor. Also planning and administrative costs and other quality control measures. An example would be the new hire training and on going continuing education programs for all employees associated with production. Internal failure costs would be cost associated with failures in the production plant. These failures can be from inferior raw materials, improper production techniques, worn or faulty production equipment or simply human error. An example being last month when the production furnace temptaure was mistakenly set at 850 degrees instead of the normal 500 degrees and the product was melted instead of being tempered. External failures would be those that are discovered after the finished product leaves the plant. External failures can be very costly, with replacing the defective products...
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