Overproduction


Overproduction is regarded as the most serious waste as it discourages a smooth flow of goods or services and is likely to  inhibit  quality and productivity. Such overproduction also tends to lead to excessive lead and storage times. As a result defects may not be detected early, products may deteriorate and artificial pressures on work rate may be generated. In addition, overproduction leads to excessive work-in-progress stocks which result in the  physical dislocation of operations with consequent poorer communication. This state of affairs is often encouraged by bonus systems that encourage the push of unwanted goods. The pull or Kanban system was employed by Toyota as a way of overcoming this problem.

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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Organizational Structures


Business success is linked to a well thought out, clearly defined organizational structure. This is especially true when normal, everyday business pressures intensify: the organizational structure must respond or the business will fail. While an effective organizational structure may mean the difference between a healthy firm and a dying one, seldom are human lives at stake when organizational structures are designed.

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.

Ethical Problems in Product Strategy


Product quality, planned obsolescence, brand similarity, and packaging questions are significant concerns of consumers, managers, and governments. Competitive pressures have forced some marketers into packaging practices that may be considered misleading, deceptive, and/or unethical. Some firms make package larger than necessary to gain shelf space and consumer exposure in the supermarket. Odd-sized packages make price comparisons difficult. The real question seems to be whether these practices can be justified in the name of competition. Growing regulatory mandates appear to be narrowing the range of discretion in this area.

Product testing is another area that raises ethical concerns. To help assure consumers of product quality, many companies use seals of approval for their goods and services. Recently however consumers have begun to question whether the use of these seals is ethical, since they have to be purchased at fees ranging from $10,000 to $1 million. The seals also do not promise that the product is the best one on the market. Many of the organizations that offer seals of approval do not conduct product testing themselves or even compare brands.

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.

Entering New Markets


Managers are always under pressure to increase the sales and profits of their firms, and why they face a mature, saturated market at home, they begin the search for new markets outside their home country. They find that 1) a rising GNP/capita and population growth appear to be creating markets that are reaching the critical mass necessary to become viable candidates for their operations and 2) the economies of some nations where they are not doing business are growing at a considerably faster rate than is the economy of their own market.

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.

Resistance to Change


Resistance to change may develop for a variety of reasons. A common one is that people do not know how to change or do not understand why it is important to do so; they may perceive their relative social economic status endangered or diminished. Another reason is that an individual might feel psychologically threatened, his self-concept endangered. Another important but often overlooked reason for some resistance is that the change involved is not a good idea. Not all change is good, and some resistance can be considered as being intelligent.

Resistance to change occurs often more for social process than for technical change reasons. Thus, it is important that change agents understand in depth the psycho-social aspects of a particular system so that they will know how people will be effected and perceive the contemplated change. People often resist any changes that alter their customary social and working relationships. For this reason, technical and staff personnel who are concerned with developing new approaches must be alert to considering more than just the technical or logical value of their proposed ideas. If they hope to gain successful implementation, they must also consider the important social relationship dimensions of the change.

Resistance can be countered by trying to remove the causes or reasons for it and/or by increasing the pressure for change. Which of these two general approaches to take must be determined situationally; there is no easy answer as to which is better, and combined approach is probably to be preferred.

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.

Losers’ Description of Capabilities


Corporate losers describe their capabilities in terms of the physical and financial resources they own and control and the individuals whom they employ and can manage. Their markets are places. Their people are more comfortable with tangible assets that can be seen, smelt and touched, and easily counted, measured and valued.

Because their activities depend on the availability of physical resources some losers can operate only in certain geographical areas. It may be difficult for people living elsewhere to access them and work with them. Buildings become prisons and those excluded from participation become outsiders.

In general, losers prefer more rather than less. Some consider the accumulation of resources as an end in itself. Recruiting more staff and moving to a larger property is viewed as evidence of progress. Losers focus upon the individual items of capital rather than their relevance use, and the flow of benefits that they provide. The more losers succeed in accumulating fixed overheads, the more vulnerable they become to economic forces, commercial constraints and financial pressures.

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.

 

The Right Thing for your Company


Make sure that the outcomes you define for your people are in line with your company’s current strategy. With the dizzying pace of change in today’s business world, it is sometimes hard for managers to keep track. The key distinction is between mission and strategy. A company’s mission should remain constant, providing meaning and focus for generations of employees. A company’s strategy is simply the most effective way to execute that mission. It should change according to the demands of the contemporary business climate.

Although the constant reassessment of strategy is vital to the health of the company, it does place managers in a rather difficult position. They are the intermediaries, charged with explaining the new strategy to the employees and then translating it into clearly defined performance outcomes.

Often this can be as simple as telling your salespeople that with the new company strategy focused on growing market share rather than profit, each salesperson will now be encouraged to focus on the outcome, ‘sales volume,’ rather than the outcome ‘profit margin per sale.’

However, sometimes the changes in strategy are more radical and the pressures on managers to refocus employees on different outcomes are more acute. For example, the most effective strategy for many high-tech companies used to be innovation. Hence the large R&D budgets, the hordes of dishelved but creative software designers, and the unpredictable, slightly unfocused work environments. For the major players who dominate the marketplace, critical mass—getting your product to be accepted as the standard—is now more important than innovation. Innovation can be brought from the smaller boutique houses. Thus these larger companies need to change the way they operate to ensure that virtually everyone’s efforts are focused on spreading the new language/platform/product into the marketplace. This means that managers in these companies will have to hustle to redefine the desired outcomes and find new definitions of success. Number of users, for example, may now be more important than revenue per user.

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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