...price. “To build a better and better product at a lower and lower price,” stated by Lincoln Electric regarding its organizational purpose. Purpose Lincoln Electric’s control system is very effective because of the communication of the organizational objectives to its stakeholders. The primary objective of the organization is creating a high quality, low cost product to consumers, which is achieved in many facets of the company. The organization has evaluated their market as having low risk because of a lack of superior alternatives. The company’s policies are effectively communicated throughout the organization and include the promotion of “owner-employees” through the purchase of company stock and the use of retained earnings and employee purchased stock to finance company growth. Performance indicators and targets are controlled using a compensation system that is centered on evaluating employee performance. Employees are motivated by this compensation system because they are paid directly proportional to the efficiency and quality of his or her work. All of these components of the control system contribute to the ultimate goal. Commitment Lincoln Electric creates its identity by emphasizing the values of performance and productivity within the organization and effectively achieves this because of its control system. The high level of responsibility and accountability given to employees demonstrates these values. The company’s identity is established within the human resource...
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...Executive summary PROJECT SCOPE The purpose of this project is to meet up with some of the challenges faced by financial institutions, especially the banking industry. It is quite evident that the banking industry is witnessing a revolution in products, processes, market, and regulations. Unfortunately, it is a revolution that is not about to stop or slow down. Today’s marketplace is fast moving and extremely competitive. The need to retain existing customers and attracting new ones often conflicts with the need to reduce cost and improve efficiency. Most banks, in order to adapt to the changes, are embracing technologies that will improve customer service as well as minimize cost. This is our yardstick to focusing on the strategic goals of the industry by using technology that combines information system with peoples’ activity and also support operations, management, and decision making. PROJECT OBJECTIVES The intent of the project is to design banking solution software that will give a competitive advantage required in today’s business environment such that it enables both the private and commercial banks to provide a comprehensive range of online banking services to their clients. MAJOR CONTRIBUTORS The success of the project is the outcome of different teams working together to meet with our client’s strategic goals and core competencies. Two divisions were created in a project matrix form to match the urgency and importance of the project. Project priority...
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...Questions: 1Introduction to OM: OM Q&A -1 9/26/2013 1) Identify three or more operations-related tasks carried out by Hard Rock Café. (Far East department) Answer: Providing custom meals; designing, testing, and costing meals; acquiring, receiving , and storing supplies; recruiting and training employees; preparing employee schedules; designing efficient restaurant layouts. 2) Identify two operations-related tasks carried out by Hard Rock Café (changed to McDonalds). Match each to its area of the Ten Critical Decisions. Answer: Providing custom meals–design of goods and services; designing, testing, and costing meals–design of goods and services; acquiring, receiving , and storing supplies–supply- chain management; recruiting and training employees–human resources , job design and work measurement; preparing employee schedules–intermediate and short-term scheduling; designing efficient restaurant layouts–layout strategy. 3) Define operations management. Will your definition accommodate both manufacturing and service operations? Answer: Operations management can be defined as the management of all activities directly related to the creation of goods and/or services through the transformation of inputs into outputs. Yes. 4) Why are services typically more difficult to standardize, automate, and make efficient? Answer: Services typically require customer interaction, which makes it difficult to standardize, automate...
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...Case Study #2: Internal Control Most companies that start off as a private corporation want to ultimately become a public company in the future. Becoming public usually provides businesses the opportunity to raise capital in hopes of expanding. There are definitely some pros in becoming a publicly traded and owned entity. LBJ Company is considering going public in the future, and they are requesting the writer to evaluate their internal control systems. They would also like to be made aware of any new internal control requirements if they decide to go public. Lastly, they would like to know what they have been doing right and what they have been doing wrong, and whether or not they should purchase the indelible ink machine. The writer will now inform the president of LBJ of any new internal control requirements if they decide to go public. Internal control consists of all the related methods and measures adopted within an organization to safeguard assets, enhance the reliability of accounting records, increase efficiency of operations, and ensure compliance with laws and regulations. Internal control systems have five primary components and they are as follows: • A control environment. It is the responsibility of top management to make it clear that the organization values integrity and that unethical activity will not be tolerated. • Risk assessment. Companies must identify and analyze the various factors that create risk for the business and must determine how to manage...
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...to manage risks. Operations objectives relate to effectiveness and efficiency of the operations, including performance and financial goals and safeguarding resources against loss. Financial reporting objectives pertain to the preparation of reliable published financial statements, including prevention of fraudulent financial reporting. Compliance objectives pertain to laws and regulations which establish minimum standards of behavior. The process of identifying and analyzing risk is an ongoing process and is a critical component of an effective internal control system. Attention must be focused on risks at all levels and necessary actions must be taken to manage. Risks can pertain to internal and external factors. After risks have been identified they must be evaluated. Managing change requires a constant assessment of risk and the impact on internal controls. Economic, industry and regulatory environments change and entities' activities evolve. Mechanisms are needed to identify and react to changing conditions. Control Activities Control activities are the policies and procedures that help ensure management directives are carried out. They help ensure that necessary actions are taken to address risks to achievement of the...
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...Altoona wishes to capture the available 30-35% market share their forecasts predict. Second, the two major problems involved in the coating process (dirt and pocking) have made the coating process itself inconsistent and unpredictable. At least half of all defects occur in the coating process. In 61 samples of 300 units, the mean defective rate for dirt was just under 5% and 3.5% for pocking. Quantitatively, there are also two main issues: First, the one attribute that is critical to quality in the eyes of the customer, visual inspection, varies too greatly. It has become a costly and frustrating quality measure for both customers and Altoona. Second, employee, specifically engineers’, time is being mismanaged and resulting in forgotten projects, needless wage expenditure, and difficulty with experimentation. Together, these four problems will be counteracted with a quality management system that utilizes and builds on the current SQC initiative where the goal of getting dirt defects to fewer than 4% can be realized. The quantitative issues referred to above will also be addressed with appropriate project design plans and stable operations. Altoona currently faces problems with standards of certain dimensions of quality. To isolate three of these dimensions individually is critical – especially to the success of the coating process. These dimensions are:...
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...Change control Change control is one of the more important subjects of the business world today. With the ability to transfer information at (nearly) the speed of light, competition can be fierce. In a competitive business environment, there is tremendous pressure to be one step ahead of (or to rush quickly to catch up to,) the competition. This is especially true in industries where technology is the main source of business. Even where it’s not, almost every company has a Web site now. The temptation to make changes to these production environments can be great, and management can and will often pressure people to make the change happen now. This is why change control is important. Information security and business continuity while continuing to offer the highest-quality product should be the goals of any information technology group at a very high level. Sometimes, though, one can buckle to the pressure of management or simply decide to change something in a way he or she thinks better. While this may be true at the laser-point level of that particular module, application, Web page, etc., the real problem exists in how the change cascades down to other items. That is to say, the one small change made to item “a” may have a trickle-down effect and break seemingly unrelated item “z” or even reporting somewhere. If this breaks financial reporting, anything from auditing to bankruptcy is possible. It can even create a legal situation because a product or...
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...Denew Assignment Accounting Assignment 2: Manufacturing Overhead Borealis Manufacturing has just completed a major change in its quality control (QC) process. Previously, products had been reviewed by QC inspectors at the end of each major process, and the company's 10 QC inspectors were charged to the operation or job as direct labor. In an effort to improve efficiency and quality, a computerized video QC system was purchased for $250,000. The system consists of a minicomputer, fifteen video cameras, and other peripheral hardware and software. The new system uses cameras stationed by QC engineers at key points in the production process. Each time an operation changes or there is a new operation, the cameras are moved, and a new master picture is loaded into the computer by a QC engineer. The camera takes pictures of the units in process, and the computer compares them to the picture of a “good” unit. Any differences are sent to a QC engineer, who removes the bad units and discusses the flaws with the production supervisors. The new system has replaced the 10 QC inspectors with two QC engineers. The operating costs of the new QC system, including the salaries of the QC engineers, have been included as factory overhead in calculating the company's plant-wide manufacturing-overhead rate, which is based on direct-labor dollars. The company's president is confused. His vice president of production has told him how efficient the new system is. Yet there is a large increase in...
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...For a process to be adequately controlled and manipulated, the variable of interest in the process (e.g. Temperature, Pressure or Flow) often called the Process Variable (PV) needs to be measured by a sensor which converts the measurement into a suitable signal format (4 – 20mA or digital) and then transmit it to a controller which makes the control decision and finally acts on a final control element in the control loop. What does this signal transmission is referred to as a transmitter. The schematic below illustrates the interactions between all the elements in the control loop: | Elements of a Process Control Loop | What is a Transmitter? A Transmitter is a device that converts the signal produced by a sensor into a standardized instrumentation signal such as 3-15 PSI air pressure, 4-20 mA DC electric current, Fieldbus digital signal etc., which may then be conveyed to an indicating device, a controlling device, or both. The indicating or controlling device is often located in a centralized control room. The transmitter often combines a sensor and the transmitter in a single piece. The sensor measures the process variable and generate a proportional signal. The transmitter then amplifies and conditions the sensor signal for onward transmission to the receiving or controlling device. | --> Transmitters Used in Process Instrumentation: Transmitters can be broadly divided into two broad groups: (a) Electronic Transmitters (b) Pneumatic Transmitters ...
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...MANAGEMENT: SUMMARY FOR FOUNDATIONS OF CONTROL NAME OF TUTORIAL LECTURER: ENCIK SATHISWARAN A/L UTHAMAPUTHRAN TUTORIAL GROUP: L1T3 NAME: CH'NG WEI MING MATRICES NUMBER: A13A0122 SUMMARY In chapter 14 for the fundamentals of management, the important thing that we will learn after studying is : explain the nature and importance of control; describe the three steps in the control process; discuss the types of controls organizations and managers use and discuss contemporary issues in control. For explain the nature and importance of control, control is the management function that involves monitoring activities to ensure that they're being accomplished as planned and correcting any significant deviations. The purpose of control is to ensure that activities are completed in ways that lead to accomplishment of organizational goals. Control is important because it's the only way that managers know whether organizational goals are being met and if not, the reasons why. The value of the control function can be seen in three specific areas which is planning, empowering employees, and protecting the workplace. As the final step in the management process, controlling provides the link back to planning. If manager didn't control, they'd have no way of knowing whether goals were being met. The second reason controlling is important is because of employee empowerment. An effective control system can provide information and...
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...Week 5 Individual Assignment: Process Improvement Plan Justin Sciarro OPS 571 November 26, 2012 Barry Haigh Process Improvement Plan During week one the process of pulling patient room trash and linen was analyzed. The steps included the designing of a flowchart outlining the steps of the actual process, while identifying factors and metrics. The remainder of this paper will focus on process improvement as it relates to control limits and confidence intervals. Moving on, in this case, process control is concerned with monitoring quality while the service is being performed (Chase, Jacobs, & Aquilano, 2006). The two types of variation within processes are assignable and common. Assignable variation is defined by factors that can be clearly identified and perhaps even managed, while common variation or random variation is simply natural in the process itself (Chase, Jacobs, & Aquilano, 2006). Regarding the process of pulling patient room trash and linen, assignable variation included collection/disposal methods and trash liner compatibility/fit. After evaluating these variations, it was determined they could be effectively managed through alternative options. For example, since the trash and linen is collected using separate receptacles, the linen is left in a staging area where it is picked up by a third party vendor each evening. However, the trash, once collected, is disposed of into a large compactor. This particular task can be time consuming; therefore, it...
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...Optimization in Production Operations Optimal “Lean Operations” in Manufacturing By Carlos W. Moreno © 2005-06 Ultramax Corporation Oct. 5, 2006 Introduction This essay deals with production / manufacturing operations: with their economic impact (or other metrics) while making product with the existing process, usually driven to satisfy: • market demand (delivered: volume, quality) • • economics (incurred: cost savings, resource utilization); and safety (safeguarding equipment, personnel and environment) These drivers represent the main impact of production on company profits, with short-term and long-term effects on the P&L Statement. The bottom line is that most production processes are underutilized; and the use of mature, accessible mathematical technology unlocks that latent capacity, which is of significant value. The best possible performance is “Optimal Operations.” In the process industry it is called “Process Optimization.” In manufacturing it is the extreme of Lean Operations, one of the components of “Lean Manufacturing” success. Other components that qualify for “lean” in the sense of avoiding waste (non-value-added), and not missing opportunities for improvements are: “Lean Design” (the most common emphasis today), “Lean Logistics – and Supply Chain,” “Lean Maintenance,” “Lean Scheduling,” “Lean Safety,” and “Lean Scheduling.” Some share interests with Six Sigma as well (quality and costs). All these solutions are also part of the classical field of Industrial...
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...GE on Quality Control University of Texas at Brownsville October 25, 2012 Abstract Quality Control plays a major role in the success of a Company. GE is a prime example of a company implementing procedure and maintaining high quality to provide consumers what they are looking for and making every dollar count. Six Sigma and its key concepts contribute to the success of any company. Control Charts provide dominance in measuring variances and help prevent problems. Employee empowerment is another tool extremely vital to the success of a company. GE on Quality Control It is most important to assure consumers that the process for developing a product is followed accurately. The way to do this is to have quality control in a company. This is the most important aspect of the production process. The consumers should be able to visualize how the products work and that the products functions the way they are suppose too. Can a company guarantee the products meet the critical demands? By implementing quality assurance with all aspect of the production process will guarantee the products functionality and production. The company with the top of the line products in the market which all consumers know, is GE. They hold the prestige certification: ISO 1901:2008 which means that the company must preserve a well-designed quality management system in order for them to comply with acceptable business practices.1 These practices is what keeps GE above all others. . Being...
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...Internal controls are referred to the methods established by a company to safeguard its assets. Internal controls are designed with the idea of achieving a company's objectives, which include the effectiveness and efficiency of operations, that the information presented to financial statement users is reliable, and that the firm is complying with regulations and laws (Bodnar & Hopwood, 2013, p.13). Internal control requires the distribution of responsibilities among employees. It is important for employees to know their task or job function in an entity since they will work harder to control these responsibilities. One example of an internal control placed in a company is the segregation of duties, which implies that the same department or person does not have control upon accounting and financial responsibilities (Bodnar & Hopwood, 2013, p.14). Internal control has an important role in the development of Accounting Information System (AIS) since the success of AIS depends on the effectiveness of the internal controls of a firm. AIS is defined as the transformation of financial and other data, collected by people and equipment, into information. The effectiveness of internal controls assure that the data entered by employees of a company in a computerized system, the techniques used to process information, the methods used to store information, and the information produced are accurate and appropriate Internal controls are designed to monitor and keep the quality of...
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...Quality Control Theory Jonathan Agee, Steven Bonilla, Joseph Eastman, Chris Ibarola, and Bruce Kleinknight American Public University Abstract Quality. It's one simple word that in today's marketplace means the difference between greatness and bankruptcy. It's what separates the pretenders from the contenders. Because of the large availability of products on today's market, quality has become a major factor in people deciding factors. Gone are the days of old when companies could produce a product of sub-par quality and be profitable because the competitors were out of the market place. With quality being such a huge deciding factor these days with customers, it would be financially ruining if managers produce a product lacking in quality. Just try to fathom if car companies like BMW would be around if they produced poor products. Imagine showing up to a BMW dealership to purchase a "Melbourne Red Metallic" car only to find every red car was a different shade from the other. To prevent these catastrophic business practices, companies have created a control process to compare their new products to a set standard. It's this continued quality that keeps the customer and creates a successful business. Throughout this report, we will explain how companies can ensure their success by controlling the quality of their products. Before we get into the models and examples of quality control, we fist must have a basic background understanding of the concept. Quality is defined...
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