Travel Stress


We travel to get to work, we travel during our work, and we travel to get to distant meetings. Travel comes in all forms: short and long timeframes and short and long distances. For most people, the commonest hurdle is the daily grind to and from work. This is most acute in large cities. The problems are truly international, but some of the ugliest and best-studied traffic jams are now everywhere.

The levels of stress that this brings are extremely significant. For those who handle it poorly, it can be damaging  to their health, and may even endanger the lives of others. Medically, we know that stress mechanisms all fire at once when the body identifies a crisis. Adrenaline pours out, the stomach shuts down, the pulse races, and the hair stands up on end. The blood pressure soars, muscles clench in spasms around the shoulder tips and jaw,  and primal aggressions rise, ready for fight or flight.

With immediate flight brings out of the question, more and more frustrated drivers are turning to the fight option—either inside their cars as they tip at the heels of slower drivers, or outside their cars, where they may stomp up and beat a dent into the roof of an offending vehicle. Even the mild and polite become aggressive when they strap themselves into their bumper cars to drive to work. This means they usually arrive late, enraged and spent before they even start to face the day’s stresses on the job.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Cost Drivers


Cost Drivers

The concept of cost drivers can be defined in the consumption or expenditure of recourse or the limitations incurred on revenues. They include:

i.            Price

  • Amount actually paid
  • Price protection

ii.            System & Processes:

  • Time
  • Overhead

iii.            Inventory

  • Carrying costs
  • Overstock & dead stock
  • Handling costs

iv.            Requirements

  • Over-engineered
  • Under-engineered

       v.            Operations

  • Maintenance costs
  • Operating efficiency

     vi.            Revenues

  • Downtime
  • Improved output

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Use of Material


In his book, Today and Tomorrow, Henry Ford reveals with regard to the nature of waste in industry. Ford suggests that ‘it is use – not conservation – that interests us. We want to use material to its utmost in order that the time of men may not be lost.’ Therefore if something has labor expended upon it, and it is subsequently wasted (‘we do not put it to its full value’), then the time and energy of men are wasted. Therefore Ford suggests that ‘we will use material more carefully if we think of it as labor’. The fundamental driver behind eliminating  waste is true efficiency, which Ford said is simply a matter of doing work using the best methods known, not the worst.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Cause Marketing


This is one category of nontraditional marketing. It refers to the identification and marketing of a social issue, cause, or idea to selected target markets. Cause marketing covers a wide range of issues, including literacy, physical fitness, gun control, family planning, prison reform, control of overeating, environmental protection, elimination of birth defects, child-abuse prevention, and punishment of drunk drivers. It is an increasingly common marketing practice that is for profit-seeking firms to link their products to social causes.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Technology and New Knowledge


Technology is one of the most powerful forces affecting business and society. Improved technology includes machines of all sizes, shapes, and functions; processes that enable business to produce goods at faster speeds, with lower costs, and with less waste; and software that that incorporates new forms of learning into formats that direct machines (hardware) to perform functions that would have taken much longer, and been less reliable, if done by other means. Technology involves harnessing human imagination to create new devices and new approaches to the needs, problems, and concerns of a modern society.

Technology also involves drawing together fields of knowledge that coverage, enabling new ways to solve problems or perform tasks.

Although new technologies have the potential to benefit large portions of the population, they may also negatively affect some people. As new technologies become available, the challenges to sound decision making become even more ethically complicated.

Technology is creating what experts call the knowledge economy. This is an economy in which new knowledge, in all of its many forms, is reshaping and transforming old industries and businesses, creating new industries and businesses, and ultimately affecting individuals, families, communities, and institutions throughout the world. For these reasons, technology must be understood as one of major drivers of change in both business and society.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Peak Versus Off Peak Operation


An important practical problem in many industries is how to deal with sharp variations between peak and off-peak demands. Telephones are more heavily used during business hours than during evenings or weekends; local transit demands are greatest in the morning and afternoon commuting hours; in the arid areas water is more intensely demanded in summer than in winter months; restaurants are busiest at regular mealtimes, and so on. For a firm facing both peak and off-peak demands for its product, the optimization problem is how to divide its efforts between the two.

Assume for simplicity that the peak and off-peak periods are equal duration. Under pure competition the firm would be a price-taker in both the peak and off-peak markets. In the peak market it would face a higher price and in the off-peak market a lower price—but, in either market, the price will be independent of the firm’s own level of output. An example might be a city served by a number of competing taxicab suppliers, daytime hours being the peak demand period and evening hours the off-peak demand period. The quoted taxicab fares do not usually vary with time of day. However, the effective price of taxicab service does vary. In peak periods taxi earn a higher effective price, since there is less “dead time” waiting for a customer. And similarly, the customers have to pay a higher effective price in peak periods, since on average they have to wait longer for taxi to become available.

In analyzing the peak/off-peak situation, it is essential to distinguish between “common costs” and “saparable costs.” Common costs are those that apply to both peak and off-peak service. On the case of taxicabs they would include the costs of providing the casbs themselves, of running the central dispatching system,, and so on. Saparable costs are those incurred in serving each specific market. For taxicabs they might include gasoline and drivers’ wages. The distinction between common and saparable costs is quite apart from the distinction between fixed and variable costs. Common costs can be fixed or variable, and the same holds for saparable costs.

The following additional assumptions are employed: 1) There are no common fixed costs at all; the marginal common costs (MCC) is a constant magnitude. 2) The separable costs include both fixed and variable elements, but the cost function is the same in either market. However the firm may want to operate at different points along the cost curves in serving the two markets. A taxicab firm, for example, may chose to put a larger number of cabs on the road during peak period.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Leveraging better Payment Terms


Negotiating better payment terms is always easier if a company has some bargaining chips. The party with the most to lose or the most to gain is always on the defensive; therefore, the secret to successful negotiating is to develop leverage that forces the other party into one or the other of these positions. Other than not meeting payroll, only two conditions might create circumstances more detrimental to a company on the brink of failure than to a creator: (1) being evicted from the building that houses the business, and (2) not receiving critical materials and services to keep the business going.

 

Not much can be done about either situation. A business must be housed, and it must have materials and services to make and sell products. That’s why landlords and critical suppliers top the payment priority list. Some leverage can be achieved, however. Most lessors would rather work out an extended payment arrangement than go to the expense and aggravation of a formal eviction. As long as the renter’s market holds, deferring rent payments for at least several months should be a real possibility. That’s not a permanent solution, but it does provide some breathing space.

 

It might be possible to leverage critical suppliers to gain better terms. The threat to go to a competitor usually brings even the most recalcitrant supplier to terms. In most cases, a supplier has more to lose (the overdue amounts plus legal costs to sue) or gain (future sales) than a debtor company does. At least making suppliers think that’s the case is good negotiating ploy.

 

Assuming that you have taken reasonable precautions to safeguard your personal assets, the worst thing that can happen is that you will be forced to liquidate the business. Granted, this can be a blow to any entrepreneur’s ego. It might also reduce personal income for a while, however, once the liquidation is over, you can always begin again. As long as creditors believe that they have the most to lose, you’re in driver’s seat. The ultimate creditors’ threat is to force the company into bankruptcy. By making it clear that this won’t hurt and that other plans for the future are in the works anyway, such leverage vanishes abruptly.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight

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