...Operational Risk Key Term Operational Risk is the monetary risk that a corporation faces when people, processes, or system failures occur. The concept of operational risk is a constant in the workplace and has a major impact on decision making within the corporation. In my current workplace, we are considering a major change in workflow, and must measure the operational risk to the benefits of the proposed changes. Explanation of the Key Term Many factors must be considered when a change is proposed within an organization. Benefits and detriments must both be weighed in order to make the most informed decision; however, even after careful consideration, some decisions are poor. Operational risk must also include monetary damages that occur outside the realm of human decision-making, such as natural disasters or communication failures. Any action that causes a disruption to routine business operation is considered an operational risk. The more information used to calculate operational risk, the more complete and reliable picture is created for total risk evaluation (Mittnik, Paterlini, & Yener, 2014, p. 102). It is imperative to have accurate data to make quality decisions, and to create processes for predicted failures to minimize impact on the corporation. Major Article Summary Operational risk assessment should be a common, daily occurrence within an organization and should be implemented in every process in place. Corporations should implement an operational...
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...The Importance of Risk Management for Managers Anthonique Brock Walden University March 21, 2015 Leck, H (2014). The Importance of Risk Management for Managers. Managerial Challenges of the Contemporary Society, 119-194 The purpose of the article was to explain the causes of accidents in the workplace and how does management deal with it. According to (Leck, 2014) “Accidents do not happen by themselves they are caused accidentally…” This statement is true but Leak wanted to dig deeper so he can understand the root cause of the accidents. It is always two sides to a story whether it is true or false but both sides deserve to be heard. Leak gave an example of a man driving a forklift and it tipped over because he ran over a stone. The question is what really caused the accident? Was it the stone or was the driver not paying close attention? This is a good example but this will be a never ending question. Leck researched 2 main theories regarding accident causes; what caused the accident and the deep-seated causes of the accident. For example, it could be that the stone caused the accident because it was too big for the driver to avoid. Maybe the driver was distracted and could not avoid the stone so he had to hit and in result the forklift tipped over. So that Leck can get to the bottom of the question, he researched and came up with basic models of accident. According to (Leck, 2014) “Basic model of accidents try to describe or explain how the critical event that caused...
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...Challenges Facing the Finance Industry This paper will explore three problems facing the finance industry. Those problems include cybersecurity, compliance with regulation, and risk management. Three solutions will also be addressed later in this paper. 1 When one thinks about the finance industry, banks, credit agencies, insurance companies, and equity firms may come to mind. Over the years financial institutions have not been up to par. With the financial crisis that happened in 2008, the world is still recovering and paying high taxes for the amount of debt that it acquired. As a result of that crisis, the financial industry faces challenges that include cybersecurity, complying with regulation, and risk management. Although the industry faces these challenges, there are solutions that can make things operate smoother. One of the finance industries biggest challenge this year is cybersecurity. According to Hewitt, “The potential hacking of sensitive customer information is a top threat facing the financial industry in 2014.” Technology is vastly changing, and more people are beginning to use different softwares to handle the financial side of the business. With technology evolving, hackers are getting more experienced, and cyber-attacks are beginning to occur more frequently and more wide spread than they have been in the past. According to Rodriguez, “As the cost of technology decreases, the barriers to entry for cybercrime drop, making it easier...
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...activities that collectively realise a business goal, and is a collection of related, structured activities that produce a specific service or product for the final consumer. Business processes also are valuable business assets, and companies need manage and maintain these business processes in the same way as any other assets, such as plant and machinery. Business processes can be divided into three types, which are management processes, operational processes, and supporting processes. Business processes are analysed by mapping of processes and sub-processes, which have their own attributes, down to activity level. Business processes are designed to add value for customer to increase effectiveness and efficiency. Business process orientation is a recent development in organising and can be described in term of an organisation that is oriented towards processes, customers and outcomes as opposed to hierarchies. A business process oriented organisation include: a process view of the business, structures that match these processes, jobs that operate these processes, management and measurement systems that direct and assess these processes, and customer focused, continuous improvement oriented values and beliefs (culture) that are embodied in all components. A process is performed by using a procedure to combine basic assets with...
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...Pathumtanee 12121, Thailand; bDepartment of Management, University of Nevada, Las Vegas, Las Vegas, NV 89154-6009, USA; cJon M. Huntsman School of Business, Utah State University, Logan, UT 84322-3555, USA (Received 17 December 2008; final version received 3 August 2009) A key element of successful organisations is the alignment of their strategy and tactics. This study explores the relationship between a firm’s competitive strategy and its operations practices in the context of a developing economy. Two competitive strategies are examined; a niche market strategy characterised by targeting specific market segments, and a broad market strategy characterised by serving a wide range of market segments. Three sets of operations practices consistent with the adoption of lean manufacturing, Total Quality Management, and relationship development in a supply chain context, are explored. Using survey data from senior managers in Thailand, results show that for firms adopting a niche market focus, competitive strategy directly influences process management and relationship development, which in turn affect workforce commitment. Only workforce commitment has a direct effect on operational performance. In contrast, for firms adopting a broad market focus, competitive strategy directly influences workforce commitment, which in turn affects process management and relationship development practices. It is the latter practices that directly influence operational performance. Keywords: competitive strategy;...
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...Explain how JIT works in services. After all, how does “small lot size” and “reduce setup cost” make sense in services? Supply examples to support your work Just in Time (JIT) is an operational philosophy initiated at Toyota Company in Japan. For many years, JIT system was of great interest and was applied mainly in manufacturing companies. Most recently, JIT began to migrate to non-manufacturing environments. Some of these non-manufacturing environments are the business services; examples: health care, mail-order, hospitality sector, consulting, education, legal services, utilities, real estate, and many others. The implementation of Just in Time System in the service sector is similar to that in the manufacturing sector. The goal of this document is to explain some important aspects of Just in Time in services; these aspects are suppliers, layout, inventory and scheduling. Suppliers. The main goal of both service companies and suppliers is to satisfy customers. Business services that have adopted the Just in Time system depend on the quality of the suppliers to satisfy customers through quality of service. Key points to obtain quality in supplies and reduced waste depend on having just a few suppliers based on a strong relationship, on how close suppliers are located, and on the quality of delivering on time. Quality and on time supplies make it possible to offer better quality of services at lower cost and higher customer satisfaction. Layout. Just in Time layouts diminish...
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...Executive Summary The company’s profits are falling and there is a build up of inventory within the production process. This report considers three management systems which could rectify the situation. Considering Theory of Constraints, Just In Time and Programme Evaluation and Review Technique, the report recommends that more information regarding the cause of the problems is undertaken, and a suitable programme of revaluation of the business processes is undertaken. Introduction The role of management accounting in the organisation has become so much more that the reporting of the score to managers (Hansen, Mouritsen 2006). In the wake of the decline of Western Manufacturing and the relevance crisis of management accounting to modern business as outlined by Kaplan and Johnson in ‘Relevance Lost’, the traditional cost accounting approach has been largely replaced by alternative methodologies (Kee, Schmidt 2000). The role of the management accounting in the modern firm is not only to report the score, but to seek to influence the score by using techniques and theoretical approaches to improve the business processes. As such it is important for managers to understand the use and usefulness of a variety of alternatives to traditional accounting approaches, especially traditional cost accounting and look to introduce other techniques which may have practical advantages for the firm (DUGDALE, JONES 1998). There is no one size fits all approach which will work in any case...
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...Management Accounting Systems Executive Summary The company’s profits are falling and there is a build up of inventory within the production process. This report considers three management systems which could rectify the situation. Considering Theory of Constraints, Just In Time and Programme Evaluation and Review Technique, the report recommends that more information regarding the cause of the problems is undertaken, and a suitable programme of revaluation of the business processes is undertaken. Introduction The role of management accounting in the organisation has become so much more that the reporting of the score to managers (Hansen, Mouritsen 2006). In the wake of the decline of Western Manufacturing and the relevance crisis of management accounting to modern business as outlined by Kaplan and Johnson in ‘Relevance Lost’, the traditional cost accounting approach has been largely replaced by alternative methodologies (Kee, Schmidt 2000). The role of the management accounting in the modern firm is not only to report the score, but to seek to influence the score by using techniques and theoretical approaches to improve the business processes. As such it is important for managers to understand the use and usefulness of a variety of alternatives to traditional accounting approaches, especially traditional cost accounting and look to introduce other techniques which may have practical advantages for the firm (DUGDALE, JONES 1998). There is no one size fits all approach...
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...Jaskanwal Singh Mand et al., 2013 ISSN 2319-345X www.ijmrbs.com Vol. 2, No. 1, January 2013 © 2013 IJMRBS. All Rights Reserved APPLICATION OF LEAN AND JIT PRINCIPLES IN SUPPLY CHAIN MANAGEMENT Chandan Deep Singh1, Rajdeep Singh1, Jaskanwal Singh Mand1* and Sukhvir Singh1 *Corresponding Author: Jaskanwal Singh Mand, mandjaskanwal@yahoo.com Supply Chain Management is a set of synchronized decisions and activities utilized to efficiently integrate suppliers, manufacturers, warehouses, transporters, retailers, and customers so that the right product or service is distributed at the right quantities, to the right locations, and at the right time, in order to minimize system-wide costs while satisfying customer service level requirements. SCM leads to a proficient way of doing things completely. Lean manufacturing and JIT play an importunate role in better functioning of SCM. Some of the lean manufacturing principles are: JIT inventory principle, JIT production principle, JIT human resource principle, JIT quality principle, JIT supplier relation principle, The present research involves role of lean manufacturing and JIT principles in SCM. Keywords: SCM, JIT, Lean manufacturing origin of the concept of lean or lean thinking cannot be easily assigned to any one person, company, INTRODUCTION Supply Chain Management (SCM) is a set of synchronized decisions and activities utilized to efficiently integrate suppliers, manufacturers, warehouses, transporters, retailers...
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...------------------------------------------------- Quality Focus Paper Just-in-Time Production and Lean Manufacturing Keller Graduate School of Management Spring Semester, May 2010 Session GM588: Managing Quality (online) Instructor: Robert Lee 5 June 2010 Table of Contents I. Introduction 3 What is it? 3 Background 5 History 7 II. Literature Review 9 Significance in Practice 9 JIT and Lean Thought Processes 10 JIT & Lean Thinking – General Principles 10 Advantages/Benefits of JIT/lean 10 Major Advantages/Benefits of JIT 11 Major Advantages/Benefits of Lean Productions 11 Relevance of JIT/lean in Today’s Businesses 11 Mistakes of Implementation 13 Additional Challenges 13 III. Demonstrations and Applications in the Business World 16 Survival Strategy for Business 16 List of Companies that use JIT/lean production techniques 18 Best Practices & Successful Implementation 18 IV. Conclusion and Reflection 20 References 22 Introduction * What is it? Just-in-Time (JIT) production is a set of principles applied to manufacturing and inventory to control the purchase of materials to produce units on a need-basis. JIT is set on the philosophy that controlling raw materials purchased for production to bring them into the manufacturing process as they are needed leads to cost savings and production efficiencies. JIT focuses on realizing that holding little or no inventory has economic and quality values for the organization. Manufactures receive raw materials...
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...-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Grade: THE MAIN DIFFERENCE BETWEEN CHARACTERISTICS OF INVENTORY MANAGEMENT WITHIN...
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...2009 Just-In-Time Manufacturing – By Design or By Default ABSTRACT Just-In-Time (JIT) manufacturing implementation in small manufacturing companies is often not a sophisticated exercise, following a series of well-prescribed steps. Instead, JIT implementation can involve a series of incremental steps, and missteps, before the desired outcome is achieved. In some cases, JIT is less of a conscious design and more of a default position. This paper will examine the role of a company’s resource configuration in leading to the use of JIT manufacturing. The research paper reports on a single case study of a small manufacturer that altered its resource configuration from a producer – consumer relationship separated by a buffer, to a simultaneity constraint. The results of the case study show that the removal of the buffer system increased the manufacturing system’s need for mix flexibility, and the final implementation required unplanned structural and infrastructural changes to adequately meet marketing requirements. 1. INTRODUCTION Just-In-Time (JIT) is a system that focuses on waste reduction and continuous improvement to achieve operational excellence (Moreira & Alves, 2006). In a manufacturing context, JIT involves a manufacturing system where the parts needed to complete finished products are produced or delivered at the assembly site as required (Wafa & Yasin, 1998). JIT manufacturing is closely related to lean manufacturing: so much so, that researchers such as...
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...of Management Accounting Research Edited by Christopher S. Chapman, Anthony G. Hopwood and Michael D. Shields r 2007 Elsevier Ltd. All rights reserved Management Accounting and Operations Management: Understanding the Challenges from Integrated Manufacturing Allan Hansen and Jan Mouritsen Copenhagen Business School, Denmark Abstract: Innovations in operations management, like just-in-time, total quality management, automation, have produced a new manufacturing paradigm that challenges management accounting design and practices. The new manufacturing paradigm, which we conceptualise as integrated manufacturing, focuses upon the lateral flow of products and services, and thereby confronts management accounting ideals of hierarchical flows of information for planning and control. In this chapter, we take a closer look at management accounting research and the responses that have been made to the challenge from the new operational practices. We examine the extent to which changes in management accounting practices are observed, and the way in which design changes are recommended within organisations committed to the new manufacturing paradigm. Furthermore, we reflect upon the role of accounting as a management tool in integrated manufacturing, and on possible future research questions, so as to enrich our knowledge of the management accounting/operations management interface. Introduction Innovations in operations management (OM) have challenged management accounting...
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... Operations Management Literature Review and Critique Introduction Supply Chain Management is the combined set of practices, policies and frameworks that represent the relationship and the working dynamics between manufacturing, supplier, wholesaler, retailers and other supporting entities like warehouses, distributors etc. that enables final goods and services to reach the customers in the desired quantities and at the desired time (Heizer and Render, 2014). There are many parts or sub-components of the supply chain gamut that makes organzation operations effective and deliver goods and services in time. This literature review assesses and critiques quality management, inventory management and Just in time (JIT) and lean operations. All these topics are integral in attaining smooth SCM functions and activities in any organization. Various books, academic journals and perspectives of different authors have been referred to, in order to compile this paper. Quality Management and Supply Chain In layman language we understand quality as a highly desired feature, anything that is of high quality is in high demand, argues Fahey (2004) and more often than not, anything that is high in quality is high in price too, cites the author. Quality is thus one of the features that measure the goodness or desirability in a product and service that organizations produce or create. Casadesus and Castro (2005) cite that quality in tangible or manufacturing sectors implies a measure...
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...A company should be concerned to satisfy its customers’ requirements for fast and dependable services at reasonable price, as well as helping its own suppliers to improve services they offer. There are five basic performance objectives and they apply to all types of operation: • Quality • Speed • Dependability • Flexibility • Cost (Slack, N. et al, 2001). These operations performance objectives are analysed here in accordance to TMC. 1) Doing things right by providing error free goods and services, which will satisfy the customers, is known as ‘quality’. According to the case study, Toyota’s vehicles consistently rank near the top in third-party customer-satisfaction surveys. Being voted by many market research and surveys as the car of the year for several years it shows that, Toyota has a successful record worldwide. Because of the good quality Toyota’s success kept going, where in 1995, Toyota was the best car in the Middle East. Also, TMC has produce a good quality cars that are quit and do not emit unpleasant fumes, such as more than 40 emission-control systems and dozens of technologies that have improved passenger-car safety (Ahmed, A., 2003, Coursework). 2) An other performance objective is speed, which means by doing things fast, to minimise the time between the order and the availability of the product or service that gives the customer e speed advantage. The TMC’s techniques are focussed operations that reduce complexity by using simple and...
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