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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