Order Cost


Order cost includes all incremental costs associated with placing or receiving an extra order that are incurred regardless of the size of the order. Components of order cost include:

  • Buyer time: Buyer time is the incremental time of the buyer placing the extra order. This cost should be included only if the buyer is utilized fully. The incremental cost of getting an idle buyer to place an order is zero and does not add to the order cost. Electronic ordering can significantly reduce the buyer time to place an order by making order placement simpler and in some cases automatic.
  • Transportation costs: A fixed transportation cost is often incurred regardless of the size of the order.
  • Receiving costs: Some receiving costs are incurred regardless of the size of order. They include any administration work such as purchase order matching and any effort associated with updating inventory records. Receiving costs that are volume dependent should not be included.
  • Other costs: Each situation can have costs unique to it that should be considered if they are incurred for each order regardless of the quantity of that order.

The order cost is estimated as the sum of all its component costs. The order cost is often a step function; it is zero when the resource is not fully utilized, but takes on a large value when the resource is fully utilized. At that point the order cost is the cost of the additional resource required.

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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Taking the Office Charge


Once your office is settled, you should make an inventory so you will have proof of what you own. To make a simple office inventory:

  1. List each item, the year it was purchased, its original cost, and its present value.
  2. Also list the model number, brand name, dealer’s name, and a description of the item. Save and attach receipts.
  3. Keep a copy of this inventory in a safe place other than your office (a safe deposit box, for example).
  4. Update the inventory regularly, possibly as often as every three or six months while you are still buying major items for your office. At minimum, update it once a year.

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.

Improving your Planning Skills


All too often, managers develop elaborate plans only to have them collect dust on a shelf or in a file drawer. To be an effective management tool, a plan must be continually monitored and updated. Your goals and objectives must be a part of your monthly, weekly, and daily plans or they will become victims of the daily crises and interruptions that inevitably fight for your time. It’s important to spend some time every day working toward accomplishing your goals.

Evaluate and update your plan on a regular basis. If your plan is detailed and specific, it should be quite simple to manage by:

  • Using target dates for various phases of the project. Be sure that expectations, latitude, and due dates are clear and agreed upon with others.
  • Delegating responsibility (and appropriate decision-making authority) to the right person or people.
  • Requesting status reports from your employees on their progress toward goals.
  • Monitoring and following up on progress. By documenting performance against your plans (for example, budgeted vs. actual labor) you will be better able to evaluate results and develop realistic plans for future projects.
  • Intervening and adjusting plans when necessary.

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.

Using Administrative Skills


  • Identify the three to five critical success factors that you and your group must accomplish to achieve your goals. Then develop plans to achieve them.
  • Set aside “quiet time” each day for reviewing plans and updating planning activities.
  • To balance attention to detail with broader planning, ask for feedback to ensure that you are not stressing on area over the other.
  • Build your annual department goals and objectives around the strategic plan. Then develop monthly, weekly, and daily plans to accomplish your strategic goals and objectives.
  • Have employees submit an annual work plan for your review. Ask them to include specific objectives, priorities, and time tables. Seek opportunities for assignments, requiring strategic planning.
  • Study the long-range plan for your company or division and  consider its implications for your department.
  • Break large projects into several smaller steps, with deadlines for each step. Ask for feedback regarding the adequacy of your project plan.
  • Set definite deadlines with your manager when taking on tasks.
  • Add more details to your plans.
  • Ask your manager to let you know of instances when your planning could be more effective.
  • Request assignments that require careful planning and attention to detail.
  • After your plan is developed, ask others to identify potential problems. Then determine your contingency plans.
  • Make it a habit to do an environmental scan when doing strategic planning.
  • If your specialty is strategy, use your team and peers to help develop tactics.

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.

Intranets


Not all Websites are available to anyone cruising the Net. Some are reserved for the private use of a single company’s employees and stakeholders. An intranet uses the same technologies as the Internet and the World Wide Web, but the information provided and the access allowed are restricted to the boundaries of a company-wide LAN or WAN. In some cases, suppliers, distribution partners, and key customers may also have access, but intranets are protected from unauthorized access through the Internet by a firewall, a special type of gateway that controls access to the local network. People on an intranet can get out to the Internet, but unauthorized people on the Internet cannot get in.

Possibly the biggest advantage of an intranet is that it eliminates the problem of employees’ using different types of computers within a company. On an Intranet, all information is available in a format compatible with Macintosh, PC, UNIX-based computers. The need to publish internal documents on paper is virtually eliminated because everyone can access the information electronically.

Besides saving paper, an intranet can save a company money in the form of employee hours. Employees can find information much faster and more easily by using a well-designed database on an intranet than by digging through a filing cabinet or card catalog. Some of the communication uses companies have for intranets include updating policy manuals, posting job openings and submitting job applications, accessing martketing and sales presentations from anywhere in the world, updating and managing employee benefits, accessing company records and databases, collaborating from anywhere in the  world to develop new products, scheduling meetings, setting up company phone directories, and publishing company newsletters. In fact, just about any information that can help employees communicate is a good candidate for an intranet. As video and audio technologies progress, you can expect to see more multimedia applications on intranets as well.

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, Lectures, Line of Sight

SOSTAC Planning System


At any level, whether corporate, marketing, total communications or just advertising, strategy should flow from the simple yet logical structure of the SOSTAC planning system—which applies to any kind of plan and any kind of strategy.

S Situation, which means where are we now?

O Objectives, which means where do we want to be?

S Strategy, which summarizes how we are going to get there.

T Tactics, which are the details of strategy.

A Action or implementation – putting the plans to work.

C Control, which means measurement, monitoring, reviewing, updating, and modifying.

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

Adopt Open Communication


To build trust and solid working relationships with employees and others in the organization, it’s important to be seen as someone who is committed to sharing information with others and who goes beyond communicating only what is necessary. Developing a climate in which you and your team are open with information—information exchanges between you and your people, between departments or divisions, and between team members—is critical in order to function effectively.

  • Find out what your employees want to know.
  • Encourage your staff to keep one another informed and share information.
  • Establish a departmental bulletin board to keep people up-to-date on both personal and professional items of interest.
  • Hold periodic staff meetyings to share information about recent developments in the organization.
  • In staff meetings, encourage two-way communication, solicit agenda items from employees, and allow employees time to raise issues.
  • For the purpose of informal communication, hold monthly breakfast meetings that have no agenda.
  • Keep your manager and employees up-to-date by submitting a monthly activity report for your area.
  • Alert your manager to possible implications of events occurring either inside or outside of the organization. Don’t assume that your manager is aware of these implications.
  • Don’t “shoot the messenger” of bad news.
  • Ask your manager which key people you should keep informed.
  • List the key organizational people upon whom your success depends, and make a special effort to keep them informed.
  • Copy your manager on all correspondence to managers in the organization at his or her level or higher level.
  • Ask your manager about any perceived “surprises” in your area and then look for ways to avoid recurrences.
  • Don’t gloss over anything that goes wrong in your area. Report the situation as accurately as possible.
  • Talk with peers or people in other departments about “communication breakdowns.” Devise ways to avoid them.
  • Always double check all written communications before mailing; also ask yourself, “Who else should know about this?”
  • Use the “informal organization” as a way of keeping others informed. Wander around, have coffee with people, ask them questions, and so on.
  • At the end of every day, ask yourself of what occurred that should be reported to other people.
  • Return phone calls promptly.
  • Make a point of updating the appropriate people even when nothing new has developed.
  • Ask your secretary to suggest who should be copied on documents you produce.
  • Appoint a “recorder” for the meetings you conduct and have the minutes distributed to the appropriate people.
  • Promptly respond to notes, letters, and other requests so people know what you are doing about their communications.
  • If they are available, use electronic aide (voice mail, email) to pass along information that doesn’t require face-to-face exchange when you cannot do so in person or in writing.

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

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