Optimizing Business Operations: Costs & Structure
Costs of Process Inefficiencies
Flaws in planning and production scheduling often stem from inadequate production systems. The main increased costs are:
1. Rework Costs
Items failing to meet quality standards are returned to the beginning of the production process.
2. Waste Costs
Finished goods not meeting quality standards where raw materials cannot be reused.
3. Constant Complaints
Clients repeatedly complaining about products may stop using them and discourage others. This leads to increased marketing costs to counteract negative feedback.
4. Lack of Information, Registration, Tracking
During production, each step must be documented, including dates, quantities, processes, inputs, and labor.
5. Equipment Malfunction
Lack of maintenance causes unexpected costs like corrective maintenance and opportunity costs due to production downtime.
6. Service Errors
Post-production errors, such as selling substandard products, increase service costs.
Organization and Growth
Growth Benefits:
- Benefits to components
- Benefits to communities
A successful company relies on collaborative work, impacting many lives and jobs.
Reinvestment Benefits:
Constituents:
Higher profits lead to improved conditions (economic, security, stability).
Community:
Harmony with the environment and reduced social conflicts.
Company Structure and Operation
Every company has a structural and operational framework.
Operating Structure
Structural Part: Principles, Organizational Chart, Task Descriptions, Objectives, Organization Manual (Functions)
Operational Part: Process Manual, Production Manual, Administrative Manual (Processing Time, Standard Control Production), Quality Inspection Manual (Operating Manual)
Organizational Analysis
An organizational chart diagrams the company’s structure.
To analyze each position:
1. Job Title
e.g., Production Manager, Human Resources Manager
2. Function
e.g., Staff training, recruitment process monitoring
3. Dependencies
Hierarchy relationships, e.g., reporting to the General Manager, liaising with Purchase, Sales, Production, and Accounting.
4. Dependents
Departments reporting to this position, e.g., Section and Safety Training.
5. Work Items
Tools and accessories required for the job, e.g., office, computer equipment.
6. Job Specifications
Education: Undergraduate degree in Industrial or Business Administration with expertise in Administration, Human Resources.
Skills: Goal-oriented, ability to work under pressure, leadership, interpersonal skills, creativity, planning (long and short-term), honesty, loyalty.
Language: English proficiency (80% spoken), Spanish proficiency (100% written and spoken).
Performance Evaluation
Factors and Sub-factors:
- Return Value: Compliance, Quality of Value
- Personal Qualities: Working Knowledge, Interest in Work, Teamwork Capacity
- Communication Management Training: Planning, Work Planning, Leadership
- Compliance Behavior: Attendance and Punctuality
Performance evaluation is a management tool for periodic assessment of worker performance and activities.
Evaluation Documents:
a) Work Summary
b) Proof of complementary studies (last 12 months)
c) Resolutions, letters, or memos proving merit (last 12 months)
d) Recommendations from senior organization members
Workers can appeal decisions by submitting a request with disclaimers and opinions.