...Pareto was born of an exiled noble Genoese[->0] family in 1848 in Paris, the centre of the popular revolutions of that year. His father, Raffaele Pareto (1812–1882), was an Italian civil engineer and Ligurian marchese who had left Italy much like Mazzini and other Italian nationalists.[3] His mother, Marie Metenier, was a French woman. Enthusiastic about the 1848 German revolution[->1], his parents named him Fritz Wilfried, which became Vilfredo Federico upon his family's move back to Italy in 1858.[4] In his childhood, Pareto lived in a middle-class environment, receiving a high standard of education. In 1869, he earned a doctor's degree in engineering from what is now the Polytechnic University of Turin[->2].[3] His dissertation was entitled "The Fundamental Principles of Equilibrium in Solid Bodies". His later interest in equilibrium analysis in economics[->3] and sociology[->4] can be traced back to this paper. From Civil engineer to liberal, and then to economist[edit[->5]] For some years after graduation, he worked as a civil engineer[->6], first for the state-owned Italian Railway Company and later in private industry. He was manager of the Iron Works of San Giovanni Valdarno and later general manager of Italian Iron Works.[3] He did not begin serious work in economics until his mid-forties. He started his career a fiery liberal[->7], besting the most ardent British liberals with his attacks on any form of government intervention in the free market[->8]. In 1886 he became...
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...Based on our findings, we recommended the following: * Replenish all inventories at picking locations at the end of every night shift. * Use continual off-line replenishment of picking location stock throughout the night. * Implement "inventory-by-location" at receiving, warehouse and shipping operations * Move transactional processing and posting receipts, issues, and inventory balance updates from the office to the functional locations at receiving, warehouse, and shipping. * Implement bar coding applications within receiving, warehouse, and shipping. * Begin cycle counting during downtime to increase balance accuracy to 98% * Develop written operating policies, procedures, job instructions, and job descriptions for warehouse operations to stabilize operations, provide sustainability, and to be used to train workers. * Convert the job of the person in the office posting transactions to a full time inventory auditor * Use a separate audit team during monthly physical inventories checking 10% of counts, and requiring a recount when physical count discrepancies are found * Program the current system to automatically produce shipping/delivery invoices * Program the current system to include manual transactions such as pick-up and reship memos, and to sort them with picking lists. The results from the implementation of our recommendations were: * Productivity improvements of 20-30% in warehouse receiving, picking, and...
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...Problem1. No breakfast in the morning There is no breakfast provided during the morning time in the restaurant. According to the manager, the chef only works from 10:00 am to11:00 pm in the daytime. Considering that hiring extra staff to cook in the morning will increase the restaurant’s operating cost, they mainly focus on lunch and dinner, which could result in a loss of potential customers. The restaurant should seize every possible opportunity to expose itself to business and interact with the customers to enhance its promotion, especially for it has just opened recently. People who pass the restaurant in the morning and find it not operating may leave an impression that it is closed for the whole day and probably will not come for lunch or dinner. This causes a negative impact on their promotion. Therefore providing breakfast is important for impressing its potential customers and maintaining customer relationship. Solution The placement of the restaurant locates near the student hall of the Hong Kong Polytechnic University (PolyU). So many students may pass by the restaurant in the morning to the PolyU campus. Usually students do not stay in the restaurant to have breakfast as they are in a hurry for classes. Instead, they buy the take-out to eat in school. So the restaurant does not need a chef to cook special breakfast. They can have their normal staff to make simple sandwiches and soya-bean milk for people to buy as a take-out. This not only increases their revenue...
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...Introduction The theme of this course paper is “Ways of improving efficiency of enterprise”. It is considered to be topical nowadays because of some reasons. Firstly, today’s period of economic development is characterized by high competition in the market which makes all businesses seek foe different ways of increasing their efficiency. Enterprises are forced to look for the steps which help them work effectively without wasting time, money or energy. The pace of business activity is getting faster and faster. Employees often have to work under pressure dealing with performing lots of task at the same time and under different circumstances. It result in the fact that employers have to provide their employees with the possibility to work in the hotel rooms, airport, lounges, remote branches etc. Secondly, at the present moment mankind is facing with the problem of exhaustion of mineral and natural resources which makes numerous plants, factories and enterprises be more economical in the use of the resources. They need to organize their production in the way which lets them produce a specific outcome effectively produce a specific outcome effectively with a minimum amount of waste, expense and unnecessary effort. A lot of scientists and businessman have raised the problem of efficiency in their articles and books. In particular, outstanding Italian sociologist, economist and philosopher F. Parreto made a great contribution into the study of the problem of efficiency. According...
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...Pareto Analysis: When Quality-Control Demands Decisions Nathan Logan November 18, 2002 Operations Management 345 What is Pareto Analysis? Since quality is an important factor in the successfulness and longevity of any business (especially where repeat consumption is part of the business model), it would be beneficial to the business to have tools by which quality could be measured. Many of these tools already exist and are called “quality-control” tools. Pareto Analysis, which will be discussed in this paper, is one such tool. It can be described as the 80/20 rule applied to quality-control. The 80/20 rule was originally formalized by Vilifredo Pareto, after studying the distribution of wealth. He noticed that about 80% of wealth was held by about 20% of the population. Several years later, Joseph Juran applied the principle to quality-control, and Pareto Analysis was born. Pareto Analysis essentially states that 80% of quality problems in the end product or service are caused by 20% of the problems in the production or service processes. In practice, then, it is beneficial to separate “the vital few” problems from “the trivial many,” and thereby identify the individual problems that can be fixed and most drastically benefit the end product or service. Once these problems are identified, the 20% that are causing 80% of the problems can be addressed and remedied, thus efficiently obtaining quality. Practical Pareto: How to Use It In conducting a Pareto...
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...THE INVISIBLE HAND AT WORK Self-Test Problems 1. Governments sometimes restrict free trade with import quotas, rather than tariffs. Under a quota, foreign goods come into the home country without tariffs, but the quantity allowed to enter is limited. Redraw Application Figure 2, which is in this chapter's Application The Case for Free Trade (in the section Competition and Welfare). Use your diagram to answer the following questions. a. If a government sets a quota to restrict total imports to q3 − q2 units—what they would have been under the tariff—what impact would this have on the product price for home-country consumers and producers? Explain. b. Under a quota system, the government issues import licenses giving the holder the right to import one unit of the good. How much revenue can the government earn if it sells all q3 − q2 licenses to the highest bidder? Illustrate your answer on your diagram. c. What impact does this quota system have on home-country welfare? Who gains, who loses, and by how much? Illustrate your answer on your diagram. d. Which is a better way to restrict free trade—quotas or tariffs? Is the welfare loss under this quota system larger or smaller than the loss under a tariff with identical effects on import volume? Explain your answer. Answer: a. The supply curve shifts out, horizontally, by the amount of the quota, to Sdomestic + quota. This has no impact on price, compared to the tariff. The price remains[pic]with the...
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...In Islam there is no conflict between matter and soul, as there is no separation between economy and religion. Although Islamic economics is young in comparison with conventional economics, its characteristics, value and essence are appreciated by Muslims and the non-Muslims. The over-arching values of Islamic economics lie in the principle that it is an economic strategy that can achieve unity and harmony between the material and the spiritual life of the people. To ensure the true well-being of all individuals, irrespective of their sex, age, race, religion and wealth, Islamic economics does not seek to abolish private property, a practice done by communism, nor does it prevent individuals from serving their self-interest. It recognizes the role of the market forces in the efficient allocation of resources. It seeks to promote brotherhood, socio-economic justice and well-being of all through an integrated role of moral values, market mechanism and good governance. The differences between conventional and Islamic economics are as listed below. 1. The Role of Moral Values While conventional economics generally considers the behavior, tastes and preferences of individuals as given, Islamic economics does not do so. It places great emphasis on individual and social reforms through moral uplift. This is purportedly to be the purpose for which God’s messengers have come to this world. Moral uplift aims at changing the behavior, tastes and preferences of the individuals, and...
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...RISK ANALYSIS METHODS Delphi Technique “The Delphi Technique is a selected group of expert’s answers questionnaires and provides feedback regarding the responses from each round of requirements gathering. The responses are only available to the facilitator to maintain anonymity” (PMBOK, 2008, p.108). It is a technique that is useful for situation where individual judgments have to be tapped and combined in order to address a lack of agreement or incomplete of knowledge. The valued of this technique is the ability to structure and organize group communication. The group member discusses and reviews the summary report individually, and gives updated forecasts to the facilitator, who again look over the material and issues a second report. This process continues until all participants reach a consensus. The experts at each stage have a full record of what forecasts that the others have made, but do not know who made them. Anonymity allows the experts to express their self freely, encourages openness and avoids admitting error by revising earlier forecasts. The history of Delphi derives from the Oracle of Delphi. According to Wikipedia, the authors of the method were not happy with this name, because in implies something oracular, something smacking a little of the occult. The Delphi method was developed at the beginning of the Cold War to forecast the impact of technology on warfare. The method was a creation for the report, for the U.S. Army Air Corps on the...
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...Question Selecting Improvements Subjects Using Pareto Charts and Stratification: Starlight Homes, Inc is a building contractor specializing in upscale homes in the Southwest. Before each new home is sold, Starlight conducts a final inspection of the home and repairs any defects. In addition, Starlight receives a “punch list” of defects (to be corrected) complied by the buyers following the sale. Ricardo Alvarez, Starlight’s lead supervisor , has concluded that even if it should cost more to do work right in the first place, it will be a lot cheaper than going back later to fix defects. In an effort to reduce costs, improve the quality of Starlight’s home, and reduce the number of complaints after sale, Ricardo has assembled data from his final inspections and the punch lists for the last 20 homes sold. These data are listed in the following chart: Defect Type | Occurrences | Defect Type | Occurrences | Damaged walls | 13 | Doors | 14 | Exterior paint | 5 | HVAC | 11 | Plumbing | 33 | Roof | 3 | Caulking | 28 | Masonry | 2 | Electrical | 25 | Interior paint | 61 | Cabinetry | 12 | Landscaping | 16 | Woodwork | 46 | Fixtures | 7 | Construct a Pareto chart to illustrate the defect types by number of defect. Which two defect types appear to be the most significant? Should Ricardo focus his attention on these two categories of defects? Ricardo decided to stratify the Pareto chart by cost before making any decision. His bookkeeper developed the average cost...
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...OPERATIONS MANAGEMENT 1.1 Outline the steps involved in Benchmarking. Introduction Benchmarking is the process of measuring an organisation’s internal processes then identifying, understanding and adapting outstanding practices from other organisations considered to be best – in – class. The essence of benchmarking is the process of borrowing ideas and adapting them to gain competitive advantage. It is a tool for continuous improvement, for e.g the Ministry of Civil Service and Administrative reform initiatives and maintains links with other organisations at national and international levels, so as to keep track of latest development in public management practices. BENCHMARKING CONCEPT Benchmarking is a way to go backstage and watch another company’s performance from the wings where all stage tricks and realignments are visible. This can be illustrated as follows: What is our performance level? How do we do it? What are others performance levels? How did they get there? Creative Adaptation Adapted from the Benchmarking Concept : Institute of Industrial Engineers (Page 208), 1995. Breakthrough Performance Benchmarking involves setting standards for business operations based on the best practice that can be found. For example, a business targeting rapid and significant growth may choose comparisons with an established market leader. The term “benchmarking” emerged when the idea took ground in US during 1980s when Xerox, Ford...
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...resurgence after the second world war. The following are the 7 QC Tools : 1. Pareto Diagram 2. Cause & Effect Diagram 3. Histogram 4. Control Charts 5. Scatter Diagrams 6. Graphs 7. Check Sheets 2 Pareto Diagram Pareto Diagram is a tool that arranges items in the order of the magnitude of their contribution, thereby identifying a few items exerting maximum influence. This tool is used in SPC and quality improvement for prioritising projects for improvement, prioritising setting up of corrective action teams to solve problems, identifying products on which most complaints are received, identifying the nature of complaints occurring most often, identifying most frequent causes for rejections or for other similar purposes. The origin of the tool lies in the observation by an Italian economist Vilfredo Pareto that a large portion of wealth was in the hands of a few people. He observed that such distribution pattern was common in most fields. Pareto principle also known as the 80/20 rule is used in the field of materials management for ABC analysis. 20% of the items purchased by a company account for 80% of the value. These constitute the A items on which maximum attention is paid. Dr.Juran suggested the use of this principle to quality control for separating the "vital few" problems from the "trivial many" now called the "useful many". Procedure : The steps in the preparation of a Pareto Diagram are : 1. From the available data...
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...PARETO ANALYSIS Category: Analysis Tools ABSTRACT Pareto Analysis(G) is a statistical technique in decision making that is used for the selection of a limited number of tasks that produce significant overall effect. It uses the Pareto Principle (also know as the 80/20 rule) the idea that by doing 20% of the work you can generate 80% of the benefit of doing the whole job. Or in terms of quality improvement, a large majority of problems (80%) are produced by a few key causes (20%) KEYWORDS Pareto Analysis, Pareto Paradigm, Pareto Chart(G), Pareto Principle, Quality Control, organizing data, frequency of impact of problems, process improvement OBJECTIVES A Pareto chart has the following objectives: Separate the few major problems from the many possible problems so you can focus your improvement efforts. Arrange data according to priority or importance. Determine which problems are most important using data, not perceptions. FIELD OF APPLICATION Pareto diagrams could be applied in: designing of medical processes in order to identify errors, faults, incidents or in the construction of a system that reduces the risk of medical care. analyzing performance data in health organizations. RELATED TOOLS Fishbone diagram, Scatter Diagram, Run Charts, Flow Charts DESCRIPTION The Pareto diagram is named after Vilfredo Pareto, a 19th-century Italian economist who conducted a study in Europe in the early 1900s on wealth and poverty. He found that...
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...Seven Quality Control Tools 1 1. 2. 3. 4. 5. 6. 7. Pareto analysis Flowcharts Check sheets Histograms Scatter diagrams Control charts Fishbone diagram 2 Vilfredo Pareto was an Italian economist who noted that approximately 80% of wealth was owned by only 20% of the population. This was true in almost all the societies he studied. 3 1. Pareto analysis Choosing the Most Important Changes to Make Pareto analysis is a very simple technique that helps you to choose the most effective changes to make. It uses the Pareto principle - the idea that by doing 20% of work you can generate 80% of the advantage of doing the entire job. Pareto analysis is a formal technique for finding the changes that will give the biggest benefits. It is useful where many possible courses of action are competing for your attention. 4 It is a statistical technique in decision making that is used for selection of a limited number of tasks that produce significant overall effect. It uses the Pareto principle - the idea that by doing 20% of work you can generate 80% of the advantage of doing the entire job. Or in terms of quality improvement, a large majority of problems (80%) are produced by a few key causes (20%). 5 Pareto analysis is a formal technique useful where many possible courses of action are competing for your attention. Basically, it consists of estimating the benefit delivered by each action...
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...you recommend? * EBQ- economic batch quantities * * * How long will each batch take to produce: * 8571/90 * = 95,23 hours * + 3 hours * = 98,23 hours How many batches per year will be made? * 50.000/8.571 * = 5,833 * 6 batches per year What happens if the costs decreases by 50% and the holding costs increases by 40%? What internal problems result from the current planning and control policies? Analyse stock turns and availability e.g. high and low levels * From the table we can tell that the physical inventory is less that the re order quantity Would the Pareto analysis be useful for categorizing and controlling? * Pareto analysis is a statistical technique in decision making used for the selection of al imited number of tasks that produce significant overall effect. It uses the pareto principle – also known as the 80/20 rules – the idea that by doing 20% of the work you can generate 80% of the benefit of doing the entire job * In terms of quality improvement, a large majority of problems 80% are produced by a few causes 20%. Aka as vital few and trivial many * It is used essentially for the measurement of quality control * It is used to guide corrective action and to...
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...Continuous Improvement Report ‘Murphy’s Cellars’ 22nd March 2011 Michael Wallace Peter Crown Geoff Hancock Laura White March 16, 2011 Dear Nathan, We would like to take his opportunity to thank you for participating in our recent Continuous Improvement Project. Your cooperation and assistance over the past two months has been outstanding and the information you have provided the team invaluable. Your professional attitude towards the project was exceptional and the out of hours work you put in to provide us with the requested information has been much appreciated. Overall we feel the project was a success and attached is a report identifying areas within your business that are contributing towards your problem of stock control. Also included are recommendations for improvement in these areas that we feel will significantly reduce stock loss. We would appreciate any feedback if you choose to implement any of the solutions put forward in the report. Once again thank you for your dedication and hard work, it has been a pleasure to work with someone so enthusiastic and has made the whole project an enjoyable experience. If there is any further information you require please do not hesitate to contact us. Yours Sincerely, Michael, Peter, Geoff & Laura. 2 Business Description Summary: The business consists of the original bottle shop which has a drive-thru facility and a recently opened a larger premises located in the same suburb. The original bottle...
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