Meaning of Cost Reduction A cost reduction program is a type of method which is to improve profitability of the organization or by expected to get a good result that flow to the bottom line of the financial statement and exempted from any serious damage to the organization itself. As this program is much more about reducing cost or reducing expenses of the organization, so a good cost reduction program is all about how to control the damage of an organization. Furthermore, a cost reduction program is said to be improve the profitability of an organization because by reducing expenses, profits are increased without making others changes. On the other hand, if the cost reduction program can matched with a sales improvement program and perhaps, finally it will get the double profit. A cost reduction program must be a complete plan that is results-oriented. A structured cost reduction program will Continue reading
Operations Management Concepts
Flexible Manufacturing System – Definition, Process and Features
A Flexible Manufacturing System(FMS) is a manufacturing system in which there is a certain degree of flexibility that allows the system to react in the case of changes, whether predicted or unpredicted. Flexibility is the speed at which a system can react to and accommodate change. To be considered flexible, the flexibility must exist during the entire life cycle of a product, from design to manufacturing to distribution. Flexible Manufacturing System is a computer-controlled system that can produce a variety of parts or products in any order, without the time-consuming task of changing machine setups. The flexibility being talked about is generally considered to fall into two categories, which both contain numerous subcategories. The first category, Machine Flexibility, covers the system’s ability to be changed to produce new product types, and ability to change the order of operations executed on a part. The second category is called Routing Flexibility, which Continue reading
Meaning of Job Design, Job Enlargement and Job Enrichment
The nature of work and its organization has interested managers, economists and social scientists for as long as people have been employed by others to engage in productive activity. Managers have largely been interested in maximizing output from available resources. Job design can be define as the process of putting together various elements to form a job, bearing in mind organizational and individual worker requirements, as well as considerations of health, safety, and ergonomics. The scientific management approach of Frederick Winslow Taylor viewed job design as purely mechanistic, but the later human relations movement rediscovered the importance of workers’ relationship to their work and stressed the importance of job satisfaction. Trends in Job Design Quality control as part of the worker’s job Cross-training workers to perform multi -skilled jobs Employee involvement and team approaches to designing and organizing work Extensive use of temporary workers Organizational commitment to providing meaningful and Continue reading
Total Quality Management (TQM) – History, Concepts, and Principles
Quality Control processes in business are aimed at ensuring a good or service is of the standard of quality that the manufacturer or supplier has determined. Under the concept of Total Quality Management (TQM), quality control extends to every aspect of the way a business operates. In the case of a manufactured good it means that during design, production, and servicing the quality of work and materials must be up to the standard laid down. The emphasis put on quality control in many countries in recent years was to a large extent a response to the competitive edge Japanese businesses had achieved by paying attention to quality. However, it was an American management consultant, W. Edwards Deming, who brought the message to the Japanese that “the consumer is the most important part of the production line”, and who taught them methods that would help them control quality. He was Continue reading
Difference Between Cost Control and Cost Reduction
A cost reduction program is a type of method which is to improve profitability of the organization or by expected to get a good result that flow to the bottom line of the financial statement and exempted from any serious damage to the organization itself. As this program is much more about reducing cost or reducing expenses of the organization, so a good cost reduction program is all about how to control the damage of an organization. Furthermore, a cost reduction program is said can be improved the profitability of an organization because by reducing expenses, profits are increased without making others changes. On the other hand, if the cost reduction program can matched with a sales improvement program and perhaps, finally it will get the double profit. A cost reduction program must be a complete plan that is results-oriented. A structured cost reduction program will put the company on Continue reading
Total Quality Management (TQM) Implementation
Total Quality Management (TQM) is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices. Total Quality Management (TQM) views an organization as a collection of processes. It maintains that organizations must strive to continuously improve these processes by incorporating the knowledge and experiences of workers. The simple objective of TQM is “Do the right things, right the first time, every time.” TQM is infinitely variable and adaptable. Although originally applied to manufacturing operations, and for a number of years only used in that area, TQM is now becoming recognized as a generic management tool, just as applicable in service and public sector organizations. A preliminary step in Total Quality Management (TQM) implementation is to assess the organization’s Continue reading