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ACCT2522 Management Accounting
for Decision Analysis
Term 1, 2023
ACCT 2522 Assignment Submission: Cost of Quality Report (15%)
You and your teammates are business analysts working for iForgot, a fast-growing start-up online
grocery and food delivery service in the Eastern suburbs of Sydney. Customers of iForgot use the
iForgot app to place orders for popular grocery products and are guaranteed to receive their orders
within 15 minutes. Customers can also order a limited variety of food from local food outlets (such as
gelato, sushi and burgers) with a guaranteed delivery time of 30 minutes. To fulfil customer orders,
iForgot runs a “dark store” (i.e., an on-line only store operating out of a warehouse that is closed to the
public), has a delivery agreement with a network of local restaurants, and maintains a team of casual
delivery riders who are mostly university students. Half of the delivery riders use their own bikes for
deliveries, others rent bikes from iForgot at a low fee.
The CEO, Brian Sieve, has asked you to undertake a special project to analyse iForgot’s costs of quality
(COQ) for the month of February, and make recommendations on how to improve iForgot’s quality
performance.
As part of this exercise, you have contacted iForgot’s Business Development Department, Warehouse
and Operations (W&O) Department, and Human Resources Department to obtain the relevant
information. This information is provided to you on p.4-8.
If you are interested in learning more about how online grocery delivery services operate, here is an
optional video about a similar operation.
Your task is to submit a report which includes a visual presentation of your analysis of iForgot’s COQ,
accompanied by two recommendations and two direct measures of quality based on your analysis. The
details of your report requirements are outlined on the following pages.
2
Submission requirements:
• A formal assignment cover page (available for download on Moodle course website).
• A five-page report prepared for iForgot’s top management. Your submission must be in the form
of a single pdf file, and presented professionally. Your report must contain the elements tabled
below (more detail below the table). You are not expected to conduct additional research and
therefore references are not required.
Page Contents Maximum word count
1 An email to iForgot’s CEO (to explain what you are submitting
and why). See p.7 for sample email formats.
N/A
2 Visualisation of iForgot’s costs of quality N/A
3 Two recommendations based on your COQ analysis 250 words
4 Two direct measures of quality based on your recommendations 100 words
5 Appendix showing how COQ are calculated N/A
Page 1: an email to iForgot’s CEO
The first page of your report is an email to Brian Sieve (iForgot’s CEO). You do not need to write an
introduction or conclusion in this email. Instead, imagine that you are sending your report as an
attachment to an email to the CEO. Thus, your email should contain a professional greeting and a brief
explanation of what you are sending and why. Please sign off the email with your name(s).
Page 2: Visualisation of iForgot’s costs of quality
Based only on the information provided, prepare a one A4 page visualisation or infographic about
iForgot’s February costs of quality (COQ).
Communicating insights gained from data analyses is a critical skill required for your future career. This
assessment is designed to allow you to demonstrate your “data story-telling” ability. A better
visualisation is one that tells a story about the company’s quality performance.
At a minimum, you must include (i) iForgot’s prevention cost, appraisal cost, internal failure cost and
external failure cost; (ii) its non-conformance cost to conformance cost ratio; and (iii) its total cost of
quality. Other than these numbers, you are free to include (or not) any other narrative or numerical
information as you see fit. Note you should NOT conduct additional research – all the relevant
information has been provided to you. You are also not required to calculate the quality loss function.
You are free to present the required information in any form you like (e.g., pictures, tables, charts etc.)
Your visualisations/infographics must be visually appealing, draw attention to iForgot’s costs of quality,
and aimed at persuading iForgot’s top management that managing quality is important. Merely
replicating the COQ table in the textbook does not tell a data story.
Page 3: Two recommendations based on your COQ analysis
Provide two recommendations specific to iForgot based on information presented on page 2 and
the case information provided to you. These recommendations should be aimed at reducing iForgot’s
quality problems and future COQ, and must be justified (i.e., you need to clearly explain why following
these two recommendations can reduce iForgot’s future COQ, based on your understanding of the
COQ framework). Page 3 must not exceed 250 words (including headings).
3
Page 4: Two direct measures of quality based on your recommendations
For each recommendation on page 3, propose one direct measure of quality (on a separate A4
page) suitable for iForgot and which allows iForgot to track its quality performance if your
recommendations are implemented. Write a brief explanation for each direct measure of quality. Page
4 must not exceed 100 words (including headings).
Page 5: Appendix showing how COQ are calculated
An appendix that shows how you arrived at each of the cost of quality numbers presented on page 2.
Mark allocation
Refer to your assessment rubrics.
Due date and submission process
Due date and procedure for notifying team arrangement (only for students who choose to work
in pairs or trios):
You are encouraged to complete this report in pairs or trios (all students in a team must be enrolled in
the same tutorial). Successful completion of this report requires a range of skills, including creative
thinking, data visualisation, analytical and communication skills. Working in teams allows you to learn
to brainstorm ideas as a team and take advantage of you and your teammates’ relative strengths.
If you choose to complete this report in teams, please submit a completed “Report Assignment Team
Nomination Form” to the assignment box with the same name by 3rd March (Week 3, Friday) by 5pm.
If you choose to complete this report individually, please do not submit a nomination form.
Report submission due date and procedures:
Please submit a copy of your report in pdf format to Turnitin. If you choose to work in a team, please
ensure that only one of you submits your report to Turnitin.
Please attach a completed assignment cover page which has been signed by all relevant students
to the report. The cover page can be downloaded from Moodle. A 0.5 mark (out of 15) penalty will be
imposed on students who fail to complete and sign the cover page.
Please make sure that you name your pdf file using your names, in this format: “Tutorial number name1
name 2 name 3 report.pdf”. For example, if Nicole Ang, Mandy Cheng and Yee Phua from Tutorial
T09A work on a report together, they will name their submission: “T09A Nicole Ang Mandy Cheng Yee
Phua report.pdf”.
Any questions?
We will hold a “special online lecture” about this assessment to provide further guidance and answer
your questions (stay tuned!). You can also post your questions on the Report Q&A discussion forum on
Moodle. Please do not email questions to your tutor or the lecturers. Your questions posted on the
discussion forum will be answered promptly and can also benefit other students who may have similar
questions.
4
Information required for your submission
Use the information on the following pages to calculate iForgot’s
COQ. You do not need to conduct additional research for this
assignment.
5
Information received from Business Development Team
Information received from Warehouse and Operations (W&O)
Business Development Team February Flash Report [extract]
Refunds to customers due to late or incorrect deliveries: 2,420$
Sales credit to customers due to poor product quality*: 900$
*mostly relates to bruised fruits and nearly expired products being delivered to customers
Customer Satisfaction Rating Feb: 4.1