The University of Mindanao College of Accounting Education

Requirement in Accounting 10A (Cost Management)

Submitted by:

ORTIZ, Ray Jhon B. OMAY, Herdel C.

Submitted to: PAMELA TONGO, CPA Accounting 10A Professor

07 SAN JOSE PRINTING PRESS

Door 10, Lapu-Lapu Street, Lapu-Lapu Tower., Davao City, Philippines 228- 6855

HISTORICAL BACKGROUND Nancy Darang, the manager as well as the owner of 07 San Jose Printing Press, paved the way of being an excellent leader and faithoriented individual. It all started through a great passion of Maam Nancy in printing press. She wanted to express her creativity and leadership style in such business. After Maam Nancy graduated holding a degree of Bachelor of Science in Business Administration major in Management, she worked as an employee in a printing press. Having a potential in leadership, she was promoted as a manager. She held this position for about five years. With those five years in managing the business, Maam Nancy came up with an idea of why not established her own printing press. The total environment of a printing press had been putted to her heart making it a passion. For this reason, she began to plan in establishing her own printing press. Before she did anything, she asked first the guidance and blessing from the Lord. She always praying that He will grant her prayer. Praise God because the Lord granted the prayer of her. After receiving the manifestation from God, she formally started planning in establishing her business. She applied the concept of 5 Ms in management- money, market, man, marketing strategy, and market location. With all the efforts and by the grace of God, Maam Nancy successfully established her own printing press. She is the one managing her own business bearing the name 07 San Jose Printing Press formally opened on May 10, 2005. This is located at Lapu-Lapu Street, Lapu-Lapu tower, Davao City. She is very happy as she took her first step in

managing her printing press bearing her 3 main objectives- source of income, help others, and disseminate the Word of God. The time I asked about the history of her business, she said to me remarkably and to quote: Ask God first whatever your plans before starting doing it. She supported what she just said by giving me a very famous verse in the Bible Seek ye first the Kingdom of God and His righteousness, and all these things shall be added unto you.

JIT SYSTEM OF PRODUCTION The company implements the Just-in-time (JIT) system of

production. The company only produces outputs every time there is an order made to them. If there is an order, thats the time the company buys materials needed. They buy materials just only for the order and they allow a little allowance for some spoilage and other defects that will be encountered during the production. Despite the fact that the company uses JIT system, they cost their output through the use of job order costing. Meaning to say, the costs of their output is based on job.

ENSURING QUALITY IN THE BUSINESS Quality in the business operation is the main concern of the management. The company reassures the quality of the output they made to continually satisfy the needs of their customers.

Prevention Workforce is the companys first in mind in assuring quality in the business operation. The owner is in the state of being sensitive when it comes to hiring employee. She sees to it that the applicant has already a background of the job he is applying to. Though there are no formal seminars and trainings conducted, the owner trained new applicants to improve their skills until they will know the perfect action and techniques on how to do the job. Appraisal The owner provided me a simple flowchart about the production of the output. This flowchart simply explains the quality of the production.

PREPRESS
Pre-press

PRESS

POSTPRESS

This is the stage in which the company receives orders. There is a negotiation occurs between the receiving department and the customers. The company assures what are the specifications of the outputs that the customer wanted to have. This is also the stage in which lay-outing, drafting, encoding, and filming occurs. Press This is the stage in which the actual printing of the desired output. This usually located at the printing area where big printing machines located. Some of the activities are cutting of papers, placing ink on the

machines, placing film sheet on the machine, and actual printing of the machines. Post-press This is the last stage of producing outputs. Most common activity in this stage is binding. After binding, the outputs are packed and ready to be delivered. To ensure that the operation and the output produced are in good quality, there is a supervisor that inspects every action and detail of the production. Starting from pre-press stage until post-press stage, the supervisor inspects it carefully. Internal failure Defects and other circumstances regarding the output are expected to occur. If the inspection personnel find some defects of the output before it is delivered, rework process occurs. They see to it that any problems concern about the output must not be passed and delivered to their customers. External failure Customers complaints are inescapable in the business. When the company receives complaints from their customers, they provide a quick response into it. They are negotiating the customers about the complaint and provide a right action. Sometimes, they totally replace the output with a new one. Managing a business is not really a simple task. However, the management of the company is flexible enough towards the operation of the business. They are still looking for an alternative action to minimize their costs as well as to improve the quality of their outputs.

THE MANAGEMENT STAFF. The manager as well as the owner Nancy Darang (second standing lady from left) take a poise together with her staff after my interview.