...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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...Table of Contents 1.0 Introduction 2 1.1 Total Quality Management 2 1.2 Quality Improvement Strategy 2 1.3 Key Tools for Quality Improvement 2 1.4 Problem Statement 2 1.5 The main Objective 2 1.6 Specific Objectives 2 2.0 Literature Review 2 2.1 Pareto Analysis 2 3.0 Methodology 2 3.1 Data Collection 2 4.0 Results and Findings 2 5.0 Recommendations 2 5.1 Response 2 5.2 Limitations 2 5.3 Conclusion 2 References: 2 CHAPTER ONE 1.0 Introduction This paper aims at demonstrating the use of total quality management Pareto Analysis technique tool at Customs Department in Tanzania Revenue Authority to improve the process of clearing imported cargo through the Dar es salaam Port. One of the focal points in international trade is the country’s borders and the performance of customs and other border agencies, in particular their efficiency in clearing goods. In the modern business environment of just-in-time production and delivery it has become ever more important for traders to be guaranteed fast and predictable release of imported goods. 1.1 Total Quality Management TQM stands for Total Quality management. It is one of the most effective and least understood corporate strategies. It can affect every level, procedure and every person in a company. It is a most comprehensive process that can bring a company to the forefront of the global market. TQM has been defined in many ways by various authors. Some of them are being...
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...The Pareto principle is one of the important managerial tool that can be used to identify alternatives which are worthy of attention during decision making. (Grosfeld-Nir, Ronen & Kozlovsky, 2007). Named after an economist, Vilfredo Pareto, and also known as the 80/20 rule, he stated that, “20% of the population possesses 80% of the wealth” (Grosfeld-Nir et. al, 2007 para ii). Liebler and McConnell (2008) call it “a criterion for decision making” (p 155) which suggests that every persons need should be met possibly without causing loss to another person. It also means that when choosing from among alternatives, the ones rejected are due to the reduced merits to one or more groups. This suggests to me that a little portion (components) of a whole heightens the end product of whatever the thing is meant for. For example, 20% of employees help to achieve 80% of an organizational goal. That is, a little input of the few can help in finishing a greater part of a target provided no one is disregarded. An example is when a healthcare facility with so many departments invests more into a smaller department that spells out the organizations’ image giving it the permit to achieve goals successfully; the other departments are not left hanging and yet most of the goals required are reached. A funny but practical example in daily life activity is marriage. The little things that a spouse put into the marriage sparks it up with all the good things that comes with it. If a husband gives a wife...
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...Pareto’s Law The law of the vital few and the trivial many In 1906, Italian economist Vilfredo Pareto created a mathematical formula to describe the unequal distribution of wealth in his country, observing that twenty percent of the people owned eighty percent of the wealth. 80% of Output comes from 20% of Input 80% of Results generates from 20% of Effort 80% of Consequences results from 20% of Causes What It Means The 80/20 Rule means that in anything a few (20 percent) are vital and many(80 percent) are trivial. In Pareto's case it meant 20 percent of the people owned 80 percent of the wealth. Project Managers know that 20 percent of the work (the first 10 percent and the last 10 percent) consume 80 percent of your time and resources. You can apply the 80/20 Rule to almost anything, from the science of management to the physical world. You know 20 percent of your stock takes up 80 percent of your warehouse space and that 80 percent of your stock comes from 20 percent of your suppliers. Also 80 percent of your sales will come from 20 percent of your sales staff. 20 percent of your staff will cause 80 percent of your problems, but another 20 percent of your staff will provide 80 percent of your production. It works both ways. How It Can Help You The value of the Pareto Principle for a manager is that it reminds you to focus on the 20 percent that matters. Of the things you do during your day, only 20 percent really matter. Those 20 percent produce 80 percent...
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...engage in an ego issue. Small business owners compared their distributions to competitors for success and achievement. Due to such attitude, they always want to grow and expand distribution channels. He applied Pareto’s principle i.e. 80-20 rule to these distributors. It helps to realize that the majority of profit generate from minority of distribution channels. In other words, 80 percentages of profits generate from only 20 percent of distribution channels. It reminds to focus on the 20 percent that matters. Midwest company has around 800 distributors, if we applied Pareto principle only 160 distributors are profitable or might be less. Andrew’s arguments related to OM Quality Management concept. The Pareto principle applied is consistent with OM theory. Here it is applied for finding a profitable distribution channels whereas in OM, it is used for finding defects result from top categories. Basic concept of Pareto principle remains same. Small businesses have been heavily depends on a number of relationships to bring their goods and services to the market. Core network selection of a distribution channels is toughest challenge faced by small businesses over the last couple of years. Andrew focuses on structural and proper management of distribution channels also assessment of these channels to profitable for them. Andrew suggested a metric of assessment of distributor’s profitability and then...
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...Markets, Organizations and the Role of Knowledge What is Pareto efficiency? Why do economists use this criterion for comparing alternative economic systems? An allocation of resources is Pareto efficient when there is no alternative that keeps all individuals at least as well off, but makes at least one person better off. One reason that economists use this criterion for comparing economic systems is that it is relatively uncontroverisial. Stronger criteria are likely to be met with more disagreement. What is a property right? What role do property rights play in a market economy? A property right is a socially-enforced right to select the uses of an economic good. A property right is private when it is assigned to a specific person. Property rights are alienable when they can be transferred (sold or given) to other individuals. Since owners bear the wealth effects of their actions, there are strong incentives to rearrange property rights in market transactions to increase efficiency and value. Many economists favor free trade between nations. They argue that free trade will increase total world output and make people of trading nations better off. Discuss how this argument relates to concepts presented in this chapter. Free trade allows countries to concentrate on producing goods and services for which they have a comparative advantage. This specialization increases the total production of goods in the global economy. Thus, each nation can be better off with...
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...Jody Kelly Case Study #2 This Pareto Diagram shows that the most dissatisfaction comes from the areas of making appointments and checking in/out. Waiting time, whether it is to see a physician, getting an appointment or getting through on the phone, is the biggest issue to be addressed. Improving upon waiting time will drastically improve patient dissatisfaction. Problem Area | Occurrences | | Length to wait to see Physician | 13 | | Ease of Getting Appt. | 12 | | Ease of Getting Through on Phone | 10 | | Convenience of Office Hours | 7 | | Courtesy and Helpfulness of Receptionist | 7 | | Friendliness of Receptionist | 5 | | Resposiveness to Phone Calls Related to Care | 5 | | Comfort of Waiting Area | 4 | | How Well Physician Listened | 3 | | Respect Shown By Physician | 2 | | Confidence in Physician's Ability | 1 | | Respect Shown by Nurses/asst. | 0 | | | | | The lengthy wait to see a physician is due to the fact that the doctors are sometimes late getting to the clinic due to surgeries, teaching at a medical school, and unexpected emergences. The ease of getting a convenient appointment is could be inhibited by the doctor’s busy and unpredicted schedules and also the lack of communication between receptionists and secretaries. The difficulty getting through on the phone is caused by a heavy load on the receptionists and the fact that they cannot relay messages to secretaries without adequate phone coverage which also ties...
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...‘The price mechanism can be relied upon to provide efficiency’ Discuss. The price mechanism is the phenomenon where the market forces of supply and demand interact to reach an equilibrium price and quantity such that the quantity demanded by the buyers is exactly equal to the quantity supplied by the sellers. In a free market economy, where there is no government intervention, the allocation of all resources happens through the price mechanism. Meaning that the price mechanism is what balances the production and consumption of goods. When the demand for a particular good increases, its price will increase since the increase in demand means that there is currently a shortage of the good in the market. The new higher rate works as an incentive for sellers to supply more of the good with the expectation of increasing their profits. However, the increase in supply will lead to a fall in the price, and the sellers will reduce the quantity of the good produced. Thus, the price will eventually be pushed back to the equilibrium market price. In contrast, should the demand for a particular product fall, then there will be an excess supply in the market for the specific commodity. The producers of the product will then be forced to reduce the market price to eliminate the surplus of the good. The new lower price will indicate to the sellers that they should produce less of the particular product since they can’t make as much profit as before by selling it. The fall in the supply...
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...MRSKom = 3. Keya can offer one orange to Apu for 3 mangoes and 3 mangoes can give her the same satisfaction as before and the exchange make her better off than before, because she has 1 more mango left. This means the initial situation was not Pareto efficient. Answer no. 06 Suppose in the initial resource allocation, MRSAom = 4 and MRTom = 3. Apu can reduce mango production by 3 units and gain 1 unit of orange. He can exchange 1 orange for 3 units of mangoes and can improve his situation because he gains 1 unit of orange in the process. This again implies that the initial allocation was not Pareto efficient. Answer no. 07 We need government intervention even if the First Fundamental Theorem of welfare economics is satisfied because the initial allocation of resources can lead to a point on the grand utility possibility curve, which sustains a very unequal distribution of income and puts the economy on a lower social indifference curve. The government can change the initial allocation of resources such that the distribution of income can be made socially desirable without affecting the Pareto efficiency condition. Answer no. 08 The situation in which price becomes greater than marginal cost, as in a monopoly market, cannot be Pareto efficient because marginal valuation of the consumer for the commodity as expressed by MRS exceeds MRT and in this situation the society’s total welfare can be increased by increasing the production of the commodity. Answer no. 09 Markets...
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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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...Q1. Using at least two different tools, analyze the data and present your conclusions. Using the Pareto Chart, the number of times all items were graded with the lowest rating “F” was plotted. Based on this chart and on the 80-20 principle, the top 3 items namely Speed of service, Print Program, and Seating were causing the rest of the complaints on the rest of the items. Cumulative Frequency Speed of Service Printed Program Seating Entertainment Traffic Pricing Parking Prices Season Ticket Plans Selection of Foods Subtotal 0 182 182 100% 0 182 100% 76 30 25 19 15 10 5 2 Frequency 76 106 131 150 165 175 180 182 Percentage 42% 58% 72% 82% 91% 96% 99% 100% Q2. How could the survey have been more useful? Since the survey was supposed to address complains, it could have been more useful if the tools was designed to determine “failure” instead of grading items on a scale. Out of the 10 items, the management could focus on identified aspect with a failed rating and the surge of overwhelming data would be avoided. Q3. What is the next step? Following the Pareto principle, management should address the complaints on Speed of service, Printed Program, and Seating as they are causing 80% of the complaints. Reaction: A qualitative data collected backed up with quantitative tools is an effective way of addressing issues that affect quality. In order to avoid being overwhelmed, it is important to establish the goals first before setting out to gather data. There are three things...
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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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...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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...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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...Although aspects of quality in the manufacturing environment have been around from the early 1900s, what one has come to know about quality today is that it was achieved through a process of evolution or continual improvement. Quality has always been driven by what the consumer wants or needs, but that provides a wide berth of true meanings. This paper will review some of the meanings, elements of quality and one of the pioneers in this area. As mentioned quality is based on one’s demands on the manufacturer or service provider that then takes into account the quality of the manufacturer’s employees, the processes to manufacture, and the environment in which products are produced. The goal of quality is to ensure that the manufacturer is producing a product that meets or exceeds its customer expectations and the ability to keep the customer for the long term. At the same time quality-driven practices help the company reduce productivity errors by empowering the employees, reduce their costs by requiring suppliers to do the same, and deliver the product on time based on a strategic plan. Of course, quality standards in the United States may and are different from other parts of the world. The origins of quality in the United States took much of its shape from Japan in the mid-1900s when it was realized that most consumers referred to Japanese made products as poor quality; by taking charge of their manufacturing destiny quality in Japan turned a 180 degrees....
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