...feels that Russia’s main (and some may say only) contribution to global trade is in raw materials (Lally, 2012). I am curious to learn more about raw materials and what makes Russia such a heavy player in this arena. EXPLANATION OF THE KEY TERM Raw materials are “inventory items that are used in the manufacturer’s conversion process to produce components, subassemblies, or finished products” (Satterlee, 2009). These inventory items are “unfinished goods” such as “a steelmaker uses iron ore and other metals in producing steel” (Raw material, 2006). When determining whether to conduct business in a particular region, the availability and relative proximity to raw materials should be a determining factor in the decision making process. While it can be beneficial for emerging businesses when the cost of raw materials is low in a particular region, it can become financially problematic when the vast majority of a nation’s economic system is wrapped up in the production and cost of raw materials. MAJOR ARTICLE SUMMARY This article is a general overview of the Russian economy as of December 2008 that reflects on the causes for a “slowdown” the preceding October. Even though there was a “slowdown” in the economy, growth was still taking place as evidenced in the GDP. For October of that year, GDP growth was 5.9% relative to the 7.7% seen in January-September. The price of oil and raw materials fell during that period which accounted for a greater decline in exports. Retail sales...
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...NATURE OF RAW MATERIAL MANAGEMENT PROBLEM IN THE NIGERIAN MANUFACTURING SECTOR There are critical problems associated with raw material management in manufacturing organizations in Nigeria today. These are rarely given adequate attentions due to inability of people involved to trace the problems to raw material management. This writer had in an empirical study traced the following problems to inefficiency in raw material/inventory management in Nigeria: 1. The inefficient use of production time, labour and other resources due to delays or incessant short down and interruptions during production have become inherent part of operations in many manufacturing organization in Nigeria. This often led to inability to meet customers’ order and eventual loss of market shares. Low capacity utilization and loss of revenue as consequence of these problems led to closure of many manufacturing firms in the country. 2. The poor liquidity position of many manufacturing concerns in Nigeria is a matter of concern to many shareholders and stakeholders alike. To hold too much stock than necessary will lead to capital lock-up in inventory of raw materials. The materials held idle in stores have values attached to them; and the likelihood is that the organization will never regain the money in them if they become obsolete and useless. 3. In many manufacturing concerns in Nigeria, there is inadequate provision of good quality manpower in stock maintenance and material management. This...
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...seperti pengolahan bahan. Bagian dari proses ini hanya menemukan dan mengekstrak bahan baku untuk produksi. Dengan demikian, setiap industri yang bergantung pada ekstraksi bahan baku umumnya memiliki tahap hulu dalam proses produksinya. Dalam arti yang lebih umum, "hulu" bisa juga merujuk kepada setiap bagian dari proses produksi yang berkaitan dengan tahap ekstraksi atau pencarian bahan baku. Di dalam supply chain operations, aktivitas upstream (hulu) meliputi aktivitas dari suatu perusahaan manufaktur dengan para penyalurannya (yang mana dapat manufaktur,assembler, atau kedua-duanya) dan koneksi mereka kepada pada penyalur (para penyalur second-tier). Hubungan para penyalur dapat diperluas kepada beberapa strata, semua jalan dari asal material (contohnya bijih tambang, pertumbuhan tanaman). Di dalam upstream supply chain, aktivitas yang utama adalah pengadaan. (b) Downstream (Hilir) Tahap Downstream atau hilir dalam proses produksi melibatkan pengolahan bahan yang dikumpulkan selama tahap hulu menjadi produk jadi. Tahap selanjutnya, meliputi penjualan aktual produk yang ke bisnis lain, pemerintah, atau perorangan. Jenis pengguna akhir akan bervariasi tergantung pada produk jadi. Terlepas dari industri yang terlibat, proses hilir memiliki kontak langsung dengan pelanggan melalui produk jadi. Downstream (hilir) supply chain meliputi semua aktivitas yang melibatkan pengiriman produk kepada pelanggan akhir. Di dalam downstream supply chain, perhatian diarahkan pada distribusi...
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...HAMPTON MACHINE TOOL COMPANY On September 14, 2007, Jerry Eckwood, vice president of the Wellington National Bank was considering a loan request from a customer also located in Wellington, New Zealand. The company, Hampton Machine Tool Company, had requested renewal of an existing $1 million loan originally to be repaid September 30, 2007. In addition to the renewal of the existing loan, Hampton was asking for an additional load of $350,000 for planned equipment purchases in October. Under the terms of the company’s request, both loans, totaling $1.35 million would be repayable at the end of 2007. Since its establishment in 1915, Hampton Machine Tool Company has successfully weathered the server cyclical fluctuations that characterize the machine tool manufacturing business. In the most recent cycle Hampton had experience record production and profitability during the past decade – primarily due to export sales to Australia. While the economy in Australia continues to boom, the increasing value of the New Zealand dollar was significantly eroding the firm’s ability to export. Hampton’s conservative financial policies had contributed to its survival and success in the volatile capital goods industry. The company had traditionally maintained a strong working capital position as a buffer against economic uncertainty. As a result, the company had no debt on its balance sheet during the 10 years prior to December of 2006. In a meeting in early December 2006, Benjamin...
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...manufacturing company. This company uses raw materials, such as carbon powder, iron, ash, and resin. It wants to develop an inventory management system that will have the following features: The system should store the current inventory levels for different raw materials in a file. If carbon powder is less than 500 lbs, then the system will check if orders are still pending on the shop floor. If pending orders are for more than 5,000 brake pads, then someone should order 2,000 lbs of carbon powder; otherwise, someone should order for 1,000 lbs of carbon powder. Similarly, perform the same check for other raw materials iron, ash, and resin. The list of all the raw-material vendors is available with Shemrock Inc. The system should read and store the vendor information and then, depending upon the raw material that is to be ordered, print out the purchase order for that raw material. The purchase order will contain the details of the raw material such as the name, quantity, total cost, and vendor address. Create a flowchart and pseudocode using control breaks that enable the user to print invoices for any raw material that is selected. submit a document containing the flowchart and the pseudocode Explain how you implemented the system and describe the logic steps of the system. follow the link given below to view Solution http://goo.gl/P1vAM Shemrock Inc. is a brake pad manufacturing company. This company uses raw materials, such as carbon powder, iron, ash...
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...DESCRIBE THE NATURE OF OPERATIONS MANAGEMENT IN THE FOLLOWING ORGAINIZATIONS. IN DOING THIS, FIRST IDENTIFY THE PURPOSE AND PRODUCTS OF THE ORGANIZATION, THEN USE THE FOUR DECISIONS AND RESPONSIBILITIES. 1. A COLLEGE LIBRARY 2. A HOTEL 3. A SMALL MANUFACTURING FIRM • The purpose of a college library is to provide books needed by the students. It also gives students the opportunity to study at a silent place inside the campus. PROCESS: The facility of a college library is usually designed to fit a the number of students at the college. It incorporates a variety of books and videos needed for the students. Security is a vital part of a college library due to the great value of the books. The library is designed in a way to keep the place quite from noice or any other distractions. The director of the college or the manager of the library is responsible for the right training of the employees, number of people hired or fired and supervising the stuff. They must interview students to find out needs and wants. QUALITY: The most important part of a college library is to maintain the quality of the employees. The stuff must be specialized in their field in order to provide the best service to the students. Service-quality measure include speed of service and a friendly atmosphere is a must and it can only be measured through interviewing the students. CAPACITY: Decisions about capacity determine the maximum level of books every year. The physical capacity is fixed by...
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...Creating a kid-friendly Internet for Malaysia Five-point-two million child surfers will be riding the Internet’s waves in Malaysia by 2017. A reality of an increasingly digitalized world to be embraced or a critical cause for concern? The learning resources that an Internet connection offers young minds are not to be underestimated, but on the same token, how are kids kept from stumbling into the Web’s darker corners? “Malaysians are actively working out a solution to this. DiGi and our global partner, the Telenor Group, a world leader in telecommunications, are helping Malaysia lead the charge in keeping children safe online,” said Christian Thrane, Chief Strategy and Corporate Affairs Officer, DiGi Telecommunications.http://www.telenor.com/asia/assets/malaysia/story-child2.png From asia telenor 2 Helping moms help their children Far too many babies in Thailand still begin their lives nameless. They are born unregistered, officially unknown to the state. This can turn into a life of lost opportunities, as they miss out on basic rights to nationality, public services, vaccinations and education. UNICEF reports warn that unregistered children are also more vulnerable to human trafficking. The problem sparked a larger, collaborative project between Telenor’s local partner, dtac and UNICEF, the Ministry of Public Health and the Bangkok Children’s Hospital. The idea was to launch the Best Start programme, beginning with the *1515 Mother & Child Info Service, an...
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...ACKNOWLEGDEMENT The successful completion of this study would not have been possible without the assistance and cooperation of a number of persons. Members of my family especially my mother and Mr. James, they have been a constant source of encouragement and assistance. Finally, special thanks to my teacher Mr. James who has guided me every step of the way throughout this exercise. DESCRIPTION OF THE BUSINESS JAMAICAN TINGS “PREPARING AND DELIVERING DELICIOUS MEALS TO YOUR DOOR” DESCRIPTION Jamaican Tings is a sole trader business that will be located at 3 Knutsford Boulevard Kingston 5. John Doe is the owner of the business he works as an accountant. Jamaican Tings will be engage in the production of tasty meals and beverages to customers. It will be align with secondary and tertiary sectors of the economy. Jamaican Tings will register with the Companies Office of Jamaica as Sole Proprietor Business, the Inland Revenue Department and the other Statutory Agencies required by Law. All workers will have to be certified under the Ministry of Health and obtain a Food Handlers Permit. GOALS * To be the leading restaurant in the corporate area by 2016 * To expand the business to other major towns in Jamaica by 2017 * To provide well prepared meals and beverages to our customers at affordable prices MISSON STATEMENT To offer quality and value to our customers; providing them with meals and beverages that are affordable and of the...
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...Executive Summary “5 King Noodles” restaurant is the new innovative noodle restaurant in the market that totally differs from the other restaurants. “5 King Noodles” will mainly emphasize on unique and variety of noodles with the fresh and high quality. Our home-made 5 kinds of soup are naturally made from turmeric, pandanus leaf, butterfly pea, roselle, and lotus root with the nice different colors will be customize served with our natural home-made noodles. This could be the source of 5 King Noodles name. Consequently, our restaurant provides a various styles of soup with the natural home-made noodles in order to meet the customer’s needs and wants. For more reason, most of the people in Thailand increasingly concern on their health due to the obesity rate in Thailand keeps increasing every year. Our restaurant will be located in Siam soi 3 next to the “Digital Gateway”, one of the famous shopping and tutoring areas in Thailand. We select this location because as Siam area is well-known and many people love visiting there, especially teenagers and businessmen. So, if our restaurant could run the business there, we would have the large target customers since the teenagers always search for the nice restaurant with the cool dishes. If our first branch is going well, we would expand more branches in the nearer future through the famous department stores such as Central, The Mall, Terminal 21, and etc. “5 King Noodles” will also provide the very special dishes for who love...
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...transaction into a single administrative structure with vertical integration, transaction costs can be avoided. Therefore, Sensormatic Electronics Corp. can benefit greatly from the positive outcomes that backwards vertical integration will bring in the future. Best Regards, Management After analyzing all three options (in-house production, Canon acquisition, and outsourcing), it becomes apparent that backward integration results in lower costs in the long term. The acquisition of Canon allows even more cost savings than in-house production. Backward integration will give Sensormatic more control over quality and quantity of its raw materials. By integrating backwards, Sensormatic will be able to avoid the inconsistencies it experienced previously with the supply of its raw materials. Additionally, integrating backwards will serve as a barrier to entry because Sensormatic would be able to sell the tags at a lower price. Artek Plastics is willing to supply tags at a price of $.0461 per unit, but it is not clear if they can match the increasing demand of Sensormatic in the upcoming five years. Any disruption in supply will cause great...
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...Questions for Review and Discussion- Chapter 6 Eva Martinez INF336: Project Procurement Management Instructor: Asif Choudhery January 28, 2014 The acquisition process is an important aspect in any business field; it is the momentum that is carried out when determining what is needed and why. Commercial equivalents is what follows after a business has determine these reasons. By having commercial equivalents it allows the suppliers or vendors to be able to grasp on what is exactly needed. To ensure that there are no value opportunities being overlooked; it is important for any business to follow the six steps of the acquisition process, they are: need recognition, description, potential suppliers, selection, receipt and payment. (Johnson & Leenders, 2010). It is preferable to separate need identification and defining commercial equivalents into two separate stages due to the general recognition that about seventy percent of the opportunity for value improvement stands within these first two phases of the acquisition process. (Johnson & Leenders, 2010). There are many technical details that goes into the analysis of the acquisition process. One thing that is consistently recommended is to continuously increase participation of operating managers and key-staff individuals throughout the acquisition process. The involvement of these key individuals would create an efficient process and effective strategic choice throughout the acquisition. "Such involvement...
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...IKEA has many organizational design elements that must function independently as well as jointly in order for the company to achieve success. The formalization design element describes how well the company creates and utilizes its written documentation of rules and procedures. The company adheres very strictly to these policies and procedures and has listed them very explicitly on their website for public knowledge. These policies include child labor laws, safety guidelines, and environmental guidelines. The specialization of the company and their methods of conducting business include their unique type of furniture and shopping method. The company stands out by offering modern style furniture that is typically purchased through their large warehouse style showrooms in which customers pick out their purchases and are responsible for transporting the items themselves. The style is very different than customer service focused furniture stores in that the main idea is to save the consumer money rather than offer a full service shopping environment. The hierarchy is quite unique as well within the structure of IKEA as it has a very complex structure. The founder of IKEA does not technically own the company since it is held by a private foundation. The private foundation owns a group that controls the individual operations of the stores. IKEA utilizes technology to its fullest ability by simplifying and streamlining processes and operations in order to maintain its goal of providing...
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...doing it for charity. Soaring input prices meant it opted for reducing the weight of the biscuit than increasing the price -- first from 100 gm to 92.5 gm in January 2008, and then to 88 gm in January this year -- in line with other biscuit-makers and FMCG players. Regular customers would have noticed the number of biscuits in a pack come down from 16 to 15 even as each biscuit became lighter, but they seemed to understand the cost pressures on the firm. The gamble paid off: Parle was able to sustain its volumes. Strict cost control at every point in its supply chain also helped -- Parle entered into forward contracts with suppliers, outsourced production, increased the number of manufacturing locations to 60 and consolidated buying. Raw material costs account for 60 per cent of the total costs in this segment and packaging costs (plastic films) account for 20-25 per cent of this. Nirmalaya Kumar, professor of marketing at London [ Images ] Business School, feels it's a very smart strategy. "At this price point, price becomes more important than the weight of the biscuit. It's very interesting and similar to the dollar stores in the US,"...
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...BISCUIT MAKING 1.0 INTRODUCTION Biscuit making is a conventional activity in many parts of the country. Despite the advent of modern, large capacity and automatic biscuit making plants, large section of people especially in semi-urban and rural areas still prefer fresh biscuits from local bakery as they are cheap and offer many varieties. These manufacturers are able to cater to some typical local palate as well. Thus, they are able to withstand competition from organised sector units. 2.0 PRODUCTS 2.1 Applications Biscuits are eaten by all sections of people across the board round the year. They are, thus, mass consumption items with number of varieties and shapes. The market is scattered. There are some dominant national and regional brands. Biscuits can be manufactured at a location which is close to the market. 2.2 Quality Standards and Compliances The BIS has specified quality standards vide IS 1011:1992. Compliance with PFA Act is necessary. 3.0 MARKET POTENTIAL 3.1 Demand and Supply Market for biscuits is scattered all over the country. There are three distinct market segments viz. urban, semi-urban and rural. Urban and semi-urban markets are dominated by many national and regional brands but even then many local manufacturers have also carved a special niche as their products are fresh, they offer many varieties and they are cheaper. 31 3.2 Marketing Strategy: Rural and certain semi-urban markets are mainly captured by small...
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...TEN WAYS TO IMPROVE INVENTORY MANAGEMENT CFOs and other senior executives already know the importance of inventory management. And yet even the most attentive managers often find it difficult to get it right. In our work with clients, we've found that decision makers often rely on external benchmarks that seldom deliver expected insights. And they make operating assumptions that send them down the wrong path. Two of the classic misconceptions: improving the accuracy of sales forecasts is the best way to reduce inventory and beefing up customer service requires keeping more inventory on hand. The fact is, both assumptions can lead to inventory gluts or shortages. As most executives know, getting the right levels is vital since it not only controls costs but also serves as a barometer of a company's overall health. We've found that best in class supply organizations are able to improve inventory levels by between 20 percent and 50 percent by employing sophisticated analytical tools, resulting in savings for years. We typically ask clients 10 questions that take the pulse of a company's inventory health. They are designed to assess the effectiveness of inventory reduction processes as well as the sophistication and breadth of those efforts. Taking an Inventory Pulse Check 1) Are you able to break down your operating inventory into the three major categories when reporting levels—safety, replenishment and excess or obsolete stock? This breakdown makes it easier to make sound decisions...
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