fixed costs
Organizational Diagnostics as a method of improving the company
Often, the work of consultants in the organization of the customer reminds the notorious doctor’s appointment, when a patient “diagnosed in medicine”, who independently diagnoses, requires immediate effective treatment from the doctor. So the owner believes that he himself knows the weak points of his company and he needs only immediate effective actions to eliminate them. And the help of the employees of the consulting company specialists consists mainly in getting involved in a dispute about how the word marketing should be pronounced, which does not play any role for their daily practice, but they limit its functions by studying the prices of competitors in order to offer lower prices. than market, believing that thereby will ensure the competitiveness of their goods. However, the task of organizational diagnostics does not boil down to tightening the competences of the customer’s staff to the required level, but consists in deep “immersion” of consultants in the customer’s organization; review the workflow, conduct an audit of staff, examine the processes in progress, in order to develop standard techniques for their improvement and give comprehensive advice to eliminate deficiencies. Continue reading
What does “effective inventory management” mean?
Let us analyze this phrase in parts: stocks, management, efficiency.
Inventories (stocks – eng.) – these are the supplied raw materials, materials, components, work in progress from them, finished products, purchased goods, means of production and objects of labor stored in the enterprise. They are formed every time when incoming or outgoing material resources are not used at the enterprise, although they are available. A stock is a material flow that has stopped its movement, temporarily or permanently (forever). Without stocks, at least minimal, it is impossible to manufacture finished products, works, services, trade in goods is impossible. Therefore, any company has stocks in one or another quantity. Continue reading
The economic basis of effective management
Effective management of the sales department of products – the center of marginal profit is based on the manager’s understanding of the content of the economic and accounting model of the relationship dynamics “Costs of an enterprise – Production volume of finished products (goods purchased) and its sales – Profit”.
In the name of the models under consideration, the phrase “The volume of production of finished goods (purchase of goods) and its sales” is used with the use of the union “and”, which means simultaneity. This phrase means that:
(1) the models under consideration are applicable both to an industrial enterprise producing and selling finished products (works, services), and to a commercial enterprise purchasing and selling goods; Continue reading