Category: Business

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…

Today, the term Information Technology has ballooned to encompass many aspects of computing and technology, and the term is more recog­nizable than ever before. The Information Technology umbrella can be quite large, covering many fields.IT professionals perform a variety of duties that range from installing applications to designing complex com­puter networks and information databases. A few of the duties that IT professionals perform may include:1. Data Management ADVERTISEMENTS: 2. Computer Networking3. Database Systems Design4. Software design ADVERTISEMENTS: 5. Management Information Systems 6. Systems management Image Source:wes.co.inPhone and Mobile Phone :Telephone is an electronic equipment that converts sound into electrical signals that can be transmitted over distances and then converts received. Now days phone is main communication device. ADVERTISEMENTS: The mobile phone is a short-range, electronic device used for mobile voice…

The main features of the monetary policy of the Reserve Bank of India are given below: 1. Active Policy: Before the advent of planning in India in 1951, the monetary policy of the Reserve Bank was a passive, cheap and easy policy. It means that Reserve Bank did not use the measures of monetary policy to regulate the economy.For example from 1935 to 1951, the bank rate remained stable at 3%. But since 1951, the Reserve Bank has been following an active monetary policy. It has been using all the measures of credit control. Image Source: sharonpowell82.files.wordpress.com 2. Overall Expansion: ADVERTISEMENTS: An important feature of Reserve Bank’s monetary policy is that of overall expansion of money supply. In the words of S.L.N. Sinha ‘ The Reserve Bank’s responsibility is not…