Category: Business

The Central Government has framed model rules under the Industrial Employment (Standing Orders) Act, 1946 for adoption by industrial estab­lishments, employing one hundred or more workers.This has been done to ensure industrial peace. An amendment of the Act in 1961 empowered (authorised) the Government to extend it to establishments employing less than 100 workers.Another amendment in 1963 made the Model Standing Orders, framed by the appropriate government, applicable in all industrial establishments until the Standing Orders framed by the industrial establishments are certi­fied. Image Source: depaulindustries.com ADVERTISEMENTS: The Act now applies to all establishments in:(1) Andhra Pradesh,(2) Gujarat, ADVERTISEMENTS: (3) Maharashtra and(4) West Bengal employing 50 or more workers.In Assam, it covers establishments (except mines, quarries, oil-fields and railways) which employ ten workers or more. In Tamil Nadu all factories…

Production managers are required to forecast future events, which have potential effects on their activities. Such forecasting may either be a long-run estimates or short-run estimates of demand. We have already detailed about the forecasting function. All the forecasting tools hold good for production forecasting. Difference between Production Plan and Production Control are given below:Hence, in this chapter, we would not discuss the forecasting details here. From production managers’ point of view, forecasting is important for planning, scheduling and controlling the system to achieve efficient output of goods and services.Planning of the system is done by the production managers by forecasting aggregate demand, and it helps to design or redesign processes to keep pace with the demand. To take an example, what should be the degree of automation (semi-automated or…

The zero defect concept originated in 1961 by Philip Crosby, then quality manager for the Martin company of Orlando, Florida and later developed into a phased strategy by Jim Halpin, Martin’s quality director, the concept was first applied to a missile production programme for the U.S. Government. The zero defect programme reportedly paid rich dividends to this company.Despite a marginally feasible delivery date (8 weeks only), Martin guaranteed to produce a defect free missile on schedule. Martin technique was to establish a running production time inspection by operations that were individually pledged to achieve the necessary quality standards at the first manufacturing or assembly operation. In fact, the slogan used to motivate employees throughout the critical period who do it right the first time.Errors or Defects are caused by two…

Span of management directly affects the number of levels in the organization. Wider spans of management lead to flat organization, whereas, narrow spans of management result in tall organizational structure.Comparison between Wide Spans and Narrow Spans of Management are given below:A narrow span (tall organizational structure), which results in many levels in the organization, creates problems both in terms of cost and efficiency. First, the levels are very expensive because they require more supervisory staff, which leads to larger expenses in the form of executive remuneration. Expense is further increased on the account of additional subordinates for a larger number of managers.Hence, in both executive and operative level, the cost increases. Secondly, communication in a tall organization has several limitations. Communication through scalar chain has to travel various levels, which…