07Oct 2018 by admin

5 Main Categories of Obsolete, Surplus & Scrap Items – Materials Management

Business
The obsolete, surplus & scrap items can be put under the following categories.1. Obsolete materials & equipments2. Unserviceable equipment & machines ADVERTISEMENTS: 3. Deteriorate stock4. Surplus stock5. Scrap material 1. Obsolete Materials & Equipments: Obsolete should be defined as materials, equipments or parts which are no longer usable in the service for which they are purchased and which cannot be utilised safely or economically for any other purpose. Broadly, it can be said that spares for plants sold become obsolescent when the machines they are carried for go out of production or are no longer available. Ordinarily, obsolescence arises on account of the following reasons: image source: automatedassemblyline.com ADVERTISEMENTS: (a) Adoption of standardisation or elimination of non-standard varieties.(b) Faulty planning leads to over stocking of inventory.(c) Non-implementation of project/job. ADVERTISEMENTS:…
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07Oct 2018 by admin

5 Main Limitations of Budgetary Control

Management
Budgeting has the following limitations which require careful consideration:1. The success and utility of budgeting depends on the cooperation and participation of all members of management. All persons should direct their efforts according to the plan. The top management also should adhere to the budget and provide cooperation. Many a time budgeting has failed because executive management has paid only lip service to its execution. image source: pd.mia.org.my ADVERTISEMENTS: 2. Planning, budgeting or forecasting is not an exact science. It uses approximations and judgement which may not be cent per cent accurate. At best, a budget is an estimate; no one knows precisely what will happen in the future. Budgets need to be revised from time to time for any change in plans, operating conditions, technology, etc.3. A budget is…
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07Oct 2018 by admin

What are the Objective and Importance of Plant Maintenance? – Explained!

Industry
Maintenance of plant, building, machinery and equipment plays an important part in determining the life expectancy of physical assets. The actual service lives may be lengthened considerably by a good maintenance programme. image source: blogs.dctc.eduThe purpose of plant maintenance is usually secondary, however to the need for keeping industrial building and their equipment and good working order. Therefore, the objectives of maintenance are twofold: ADVERTISEMENTS: (a) To keep the plant in working conditions.(b) To arrest depreciation and forestall obsolescence. “Maintenance in the industrial plant is the upkeep, repair, renewal and replacement of worn, damaged or obsolete parts of building, machinery and equipments.” Maintenance may be preventive or corrective in character. Preventive maintenance implies frequent inspection to detect minor faults and the early correction of them, supplemented by periodic overhauling in…
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07Oct 2018 by admin

6 Major Factors that Affect the Quality of Manufactured Products

Management
The term quality as applied to manufactured products may be defined as that characteristics or combination of characteristics which distinguishes one article from another, or the goods of one manufacturer from those of their competitors, or one grade of product from another when both are turned out by the same factory. image source: verotechsolutions.netQuality is dual: on the one hand it serves to identify the article and on the other, it is equivalent to the degree of perfection. It is not absolute and can only be judged or realized by comparison with some pre-determined standard(s). ADVERTISEMENTS: When such a standard(s) has (have) been specified, then the quality of the product can be described as “better or worse” or “higher or lower” than the established quality specification(s). In other words, quality…
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07Oct 2018 by admin

8 Advantages of Value Analysis / Engineering

Management
Benefits and advantages of value analysis are as follows:1. It helps to keep management abreast of the latest technology and other developments because value analysis aims at examining new methods and techniques of doing things with a view to reducing the cost and increasing the value of the item.2. It ensures the fullest possible use of resources because it aims at eliminating all unnecessary costs. images source: i.ytimg.com ADVERTISEMENTS: 3. It creates proper atmosphere for increased efficiency because it aims at a continuing search for improvement in efficiency.4. It is a powerful tool for cost reduction because its basic objective is the identification of unnecessary costs in a product or service and efficiently eliminating them without impairing its quality and efficiency.5. It induces the creative ability of the staff because…
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07Oct 2018 by admin

8 Major Rating Plans are utilized for Vendor Rating

Accounting
After the trial orders are executed, it becomes necessary for the buyer to rate the vendors to enable him to determine how he should apportion his requirements among the vendors.In other words, the basic responsibility of the materials manager is not only to locate the sources but also to preserve them through continuous rating. A vendor’s performance in meeting the quality, delivery and price standards set by the buyer has to be assessed in a systematic manner. Techniques of Vendor Rating: The purchase organizations watch his enlisted suppliers continuously and take requisite corrective action. Following rating plans are utilized for vendor rating: ADVERTISEMENTS: (a) Categorical plan(b) Weighted point plan(c) Cost ratio method(d) Eavaston’s vendor selection ADVERTISEMENTS: (e) Forced decision matrix(f) Service cost ratio(g) Bell quality rating system ADVERTISEMENTS: (h) IBM…
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07Oct 2018 by admin

What is the Role of ‘De Facto Guardian’ under Hindu Law?

Management
A minor child when he has no legal guardian, some nearer relation takes the responsibility of the management of his property and on his application to the court as guardian, if the court appoints him, he becomes the court guardian. Image Source: thompsonfamilyalbum.comHowever, such person, if he does not make application to the court, but manages the property of minor, he is referred to as de facto guardian. He is also referred to as de facto manager of the property, because a de facto guardian of a minor, is neither a legal guardian nor a testamentary guardian and nor a guardian appointed by the court, but he is a person, who himself, has taken over the management of the affairs of the minor, as if he were a natural guardian.…
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07Oct 2018 by admin

14 Advantages of Store Management and Codification

Accounting
14 Advantages of Store Management and Codification are explained below:1. Rational codification is of utmost importance in order to locate incoming and outgoing materials quickly and accurately, to provide necessary information concerning the exact whereabouts of the materials and to supply correct and timely data to the concerned departments. It is, therefore, clearly desirable that the goods in the store house should be arranged in the sequence of the stores’ coding system, as far as practicable. image source: i.ytimg.com ADVERTISEMENTS: 2. By codification long description of materials is avoided. Names of materials are simplified by choosing symbols which are simple, clear and free from duplication. Moreover, by it secrecy can be maintained which is the essential part for the smooth functioning of the business.3. Coding system also simplifies mechanical recording…
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07Oct 2018 by admin

13 Important Function of Purchasing Department of an Organisation

Accounting
The purchasing department is an organisational unit of a firm whose duties include some part or all of the purchasing function. This disconnection between function and, department is not always appreciated or understood by top management. image source: i.ytimg.comThe purchasing function is usually performed most economically and efficiently by a specialised, centralised purchasing department, directed by a skilled purchasing manager. ADVERTISEMENTS: However, the purchasing function does not have to be performed in such a manner. In theory, it can be performed, and in practice, it sometimes is performed by any number of different company officers or departments.The functions of purchasing department are varied and wide which are based upon different approaches. The purchasing activities may be divided into those that are always assigned to the purchasing department and those that…
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07Oct 2018 by admin

The Non-Conventional Sources of Energy present in India – Essay

Marketing
India’s renewable energy installed capacity has grown at annual rate of 23% rising from about 3.9 GW in 2002-03 to about 24 GW in January 2012. The need for developing renewable and non-conventional energy was recognised in India, as in all industrialized countries, in the early 1970’s just after the first oil or energy crisis. Image Source: eco.on.caThe oil crisis was the sudden increase in oil prices by the petroleum-exporting countries of the Middle East which led to world-wide inflation. This caused a panic situation since petroleum had to be purchased at any price to keep the wheels of transport and industries moving. Concern over disruption has continued to be a major focus of energy policy in the industrialized countries. ADVERTISEMENTS: The energy crisis along with the realisation that petroleum…
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