Management's Attitude - Continued:
Recession Proofing from Proper Controls - Case Study
The first step in a waste elimination program is an
analysis of the jobs of all employees, and the
elimination of all unnecessary routines and duplication
of effort. Nonproductive employees are transferred to
productive jobs. Administrative controls are
established, together with an organization chart and
complete manuals fixing authorities and
responsibilities.
Budget and expense controls are
developed with an adequate system of operating reports.
Supervisory incentives are provided to reward
department managers and key people who controlled
properly the expenses for which they had been made
responsible. Waste and expense leakage is
determined and responsibility quickly traced. The entire
organization will become thoroughly cost conscious.
Immediate results-production shot up 45 percent and
profits increased 117 percent! The significant result of
lasting importance is this fact: the company is now in a
position to control and adjust its operations to meet
fluctuations and rapidly changing conditions in an
economic downturn.
Attitude About Computers
The age of computers is upon us in full swing, yet the
management of many medium and small-sized companies are
not taking full advantage of this technology. They don't
have the right attitude.
Some managers have tried computers but became involved
with inadequate systems. Some have bought larger systems
than they need, but still aren't getting the kinds of
reports they need to make the right decisions fast
enough to generate optimum profits.
Many managers have computer systems that just do not
work for them - various software programs do not
interface with each other. Some reports management needs
just cannot be produced or for one reason or another,
the system seems always to be slow or bogged down.
Is your attitude about computers helping your company -
or might it be another source of hidden waste?
Moral for Top Management
Because management has been blind to the instruments of
scientific measurement and control, it is little wonder
that 25 to 50 percent waste of productivity continues
unrealized and unchecked in the average business.
So if business is going to successfully compete against
waste, it is important that management start the
necessary action to determine where wastes exist,
measure them, then, establish proper controls for their
elimination.
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