The document discusses a study on the relationship between risk management and profitability of manufacturing firms in Uganda. It finds that risk management positively influences up to 35% of changes in profitability levels. Effective risk management involves identifying, estimating, analyzing, evaluating, controlling, and monitoring risks. The study aims to establish how risk management impacts profitability by examining its main components and processes in Ugandan manufacturing firms. It analyzes data from 158 respondents at 80 manufacturing firms using statistical tools like factor analysis and correlation.
Development of Model for Quality Costing in a Medium Scale Industry-A Case StudyIOSR Journals
Abstract: Quality c o s t s pl ay s vi tal rol e in improving productivity. These costs are typically
categorized into costs of prevention, appraisal, internal and external failure. Like other activities of
business, quality costs can be programmed, budgeted, measured and analyzed to attain the objective of
better quality at lower cost. Quality costs is the basis by which investments in quality programs may be
evaluated in terms of cost improvement , profit enhancement and other benefits for plants and companies
from these programs. The cost of quality is an increasingly important issue in the debates over quality.
There was a mistaken notion that achievement of better quality requires higher costs. It was the myth that
prevented many Indian companies to invest more on quality cost related programs. In this article the
authors made an attempt to identify the different types of quality costs in a medium scale industry because
the small and medium scale industries pay very little attention towards finding and developing a system for
knowing & optimizing the cost of achieving quality. A model is proposed to identify the different quality
costs in a medium scale industry and is further implemented. It has been found some quality costs are more critical and require greater attention.
Key words: Quality costs, Quality management, Pareto analysis, Model for optimization
The document discusses the history and principles of Total Quality Management (TQM). It notes that TQM originated from post-World War II research in Japan and the United States. Key principles of TQM include that quality can and must be managed, processes rather than people cause problems, the need to address root causes, making every employee responsible for quality, ensuring quality is measurable, requiring continuous quality improvements, and viewing quality as a long-term investment. The document emphasizes that TQM is a comprehensive, long-term approach involving all departments and management levels.
The document discusses risk management for pharmaceutical projects. It begins by outlining the characteristics of the pharmaceutical industry and drug development process. The drug development process takes an average of 10 years and $2.6 billion to develop a new drug. The presentation then covers risk management processes, tools and techniques for identifying, analyzing, and responding to risks in drug development projects. A case study on risk assessment for product development is presented to demonstrate how to evaluate risks and prioritize mitigation actions.
AKH Group is planning to grow organically through skill development programs and inorganically through acquisitions. They are evaluating expanding into consumer products for primary health like Acai berry juice and hand sanitizers. This would tap into the large untapped Indian market given rising obesity levels and lack of hand hygiene awareness. Cultural factors like changing diets and routines are contributing to obesity. Introducing these new products could help address health issues while generating revenue. AKH should analyze if India presents opportunities or threats considering its market size, costs, and cultural differences versus developed markets.
Total quality management (TQM) is a management philosophy focused on continuously improving processes and meeting customer expectations. It involves management, employees, suppliers, and customers working together to meet quality standards. Key aspects of TQM include cross-functional teams, continuous process improvement, and participative management. TQM was pioneered by W. Edwards Deming and saw success when implemented in post-war Japanese industries. While initially slow to adopt it, American companies eventually embraced TQM principles to regain competitiveness in global markets.
Total Quality Management (TQM) is a method for management and employees to continuously improve production of goods and services through quality and management tools. It aims to increase business and reduce waste. TQM seeks to integrate all organizational functions to meet customer needs and objectives through practices like reducing costs, empowering employees, and making fact-based decisions. The goal of TQM is continuous improvement through preventing mistakes, early detection of issues, and stopping production to address problems.
The role of raw material management in production operationsijmvsc
Experience had shown that there is critical operational problem regarding raw material management in
manufacturing organisations. This has prompted the desire to embark on a conceptual analysis that will
examine the problem and strive to proffer useful suggestions. This paper intends to bring to the fore, the
salient issue of inefficiency in the practice of raw material management and its effects on production
operations of manufacturing concerns by theoretical review. The paper concludes that, should
practitioners become proactive by applying proffered solutions, efficiency will be achieved in management
of raw materials and production operations.
The document discusses environmental scanning and industry analysis for strategic management and business policy. It covers topics such as analyzing the external environment, including natural, societal, and task environments. Porter's five forces model of industry analysis is presented. Other topics include identifying external strategic factors, analyzing industry evolution and different strategic types of firms. Competitive intelligence and monitoring competitors are also discussed. The purpose of environmental scanning and industry analysis is to gather external information relevant to organizational strategy.
Development of Model for Quality Costing in a Medium Scale Industry-A Case StudyIOSR Journals
Abstract: Quality c o s t s pl ay s vi tal rol e in improving productivity. These costs are typically
categorized into costs of prevention, appraisal, internal and external failure. Like other activities of
business, quality costs can be programmed, budgeted, measured and analyzed to attain the objective of
better quality at lower cost. Quality costs is the basis by which investments in quality programs may be
evaluated in terms of cost improvement , profit enhancement and other benefits for plants and companies
from these programs. The cost of quality is an increasingly important issue in the debates over quality.
There was a mistaken notion that achievement of better quality requires higher costs. It was the myth that
prevented many Indian companies to invest more on quality cost related programs. In this article the
authors made an attempt to identify the different types of quality costs in a medium scale industry because
the small and medium scale industries pay very little attention towards finding and developing a system for
knowing & optimizing the cost of achieving quality. A model is proposed to identify the different quality
costs in a medium scale industry and is further implemented. It has been found some quality costs are more critical and require greater attention.
Key words: Quality costs, Quality management, Pareto analysis, Model for optimization
The document discusses the history and principles of Total Quality Management (TQM). It notes that TQM originated from post-World War II research in Japan and the United States. Key principles of TQM include that quality can and must be managed, processes rather than people cause problems, the need to address root causes, making every employee responsible for quality, ensuring quality is measurable, requiring continuous quality improvements, and viewing quality as a long-term investment. The document emphasizes that TQM is a comprehensive, long-term approach involving all departments and management levels.
The document discusses risk management for pharmaceutical projects. It begins by outlining the characteristics of the pharmaceutical industry and drug development process. The drug development process takes an average of 10 years and $2.6 billion to develop a new drug. The presentation then covers risk management processes, tools and techniques for identifying, analyzing, and responding to risks in drug development projects. A case study on risk assessment for product development is presented to demonstrate how to evaluate risks and prioritize mitigation actions.
AKH Group is planning to grow organically through skill development programs and inorganically through acquisitions. They are evaluating expanding into consumer products for primary health like Acai berry juice and hand sanitizers. This would tap into the large untapped Indian market given rising obesity levels and lack of hand hygiene awareness. Cultural factors like changing diets and routines are contributing to obesity. Introducing these new products could help address health issues while generating revenue. AKH should analyze if India presents opportunities or threats considering its market size, costs, and cultural differences versus developed markets.
Total quality management (TQM) is a management philosophy focused on continuously improving processes and meeting customer expectations. It involves management, employees, suppliers, and customers working together to meet quality standards. Key aspects of TQM include cross-functional teams, continuous process improvement, and participative management. TQM was pioneered by W. Edwards Deming and saw success when implemented in post-war Japanese industries. While initially slow to adopt it, American companies eventually embraced TQM principles to regain competitiveness in global markets.
Total Quality Management (TQM) is a method for management and employees to continuously improve production of goods and services through quality and management tools. It aims to increase business and reduce waste. TQM seeks to integrate all organizational functions to meet customer needs and objectives through practices like reducing costs, empowering employees, and making fact-based decisions. The goal of TQM is continuous improvement through preventing mistakes, early detection of issues, and stopping production to address problems.
The role of raw material management in production operationsijmvsc
Experience had shown that there is critical operational problem regarding raw material management in
manufacturing organisations. This has prompted the desire to embark on a conceptual analysis that will
examine the problem and strive to proffer useful suggestions. This paper intends to bring to the fore, the
salient issue of inefficiency in the practice of raw material management and its effects on production
operations of manufacturing concerns by theoretical review. The paper concludes that, should
practitioners become proactive by applying proffered solutions, efficiency will be achieved in management
of raw materials and production operations.
The document discusses environmental scanning and industry analysis for strategic management and business policy. It covers topics such as analyzing the external environment, including natural, societal, and task environments. Porter's five forces model of industry analysis is presented. Other topics include identifying external strategic factors, analyzing industry evolution and different strategic types of firms. Competitive intelligence and monitoring competitors are also discussed. The purpose of environmental scanning and industry analysis is to gather external information relevant to organizational strategy.
This paper examines the just-in-time (JIT) inventory system. It defines JIT and discusses its advantages and disadvantages according to literature. The methodology section describes a survey of 11 online bakeries in Cumilla, Bangladesh on their use of JIT. Data analysis finds that JIT needs less space and reduces costs through smaller investments. It also finds that time management, supplier management, and daily/weekly management systems are important for JIT. In conclusion, maintaining timing is identified as the key factor for a successful JIT system.
Inventory Management-A tool for efficiency in Production Operations (Repaired)olusakin akindiPe
This document discusses inventory management in manufacturing small and medium enterprises (SMEs). It notes that inefficient inventory management is a serious problem for SMEs that leads to issues like low capacity utilization and loss of production time. The study aims to examine this problem and provide suggestions to improve inventory management practices. It hypothesizes that determining optimal stock levels, engaging skilled store personnel, and using automated stock control systems can help SMEs optimize resource use and improve overall efficiency. An effective inventory management system is important for SME performance and the broader economy.
The document provides a summary of Mpact's risk management review for 2015. It discusses the company's enterprise risk management framework and processes. Key risks identified include supply shortages, energy/water costs and reliability, equipment failures, and labor issues. Mitigation strategies are outlined for each risk. The Risk Management Committee and Audit and Risk Committee oversee risks, while business units are responsible for risk assessment and management. Material risks are regularly reported to committees and the Board.
The document discusses inventory control systems and their importance for companies. It analyzes the inventory control system of Capital Land Assets Pvt Ltd. The objectives are to evaluate the effectiveness of their current inventory control system, analyze inventory control methods used, and identify problems in inventory management. The study examines inventory levels, purchase procedures, supplier selection, and identifies benefits of improving the inventory control system such as reduced costs and better resistance to price fluctuations.
THE STUDY OF PURCHASE INTENTION FOR MEN'S FACIAL CARE PRODUCTS WITH K-NEAREST...ijcsit
Inventory management was a major issue for all the industries. The supplied of products to customers required the readiness of the inventory. This allowed rapid delivery and reduced waiting time for customers so that companies could profit from it. Any stock out or insufficiency would lead to loss of customers because their needs cannot be met. This would hurt firm profitability and market competitiveness. Inventory control was critical to retain liquidity and avoid overstocking. This was also the key to firm's survival and sustainability. To ensure an appropriate level of inventory, it was necessary to manage the inventory levels with sales forecast on an on-going basis. This paper tried to find out its inventory control in order to assisted Company T to improve its inventory control. Firstly, the products offered by Company T are classified into groups. The R programming language was then used to stimulate and forecast future sales of different products. Different techniques were applied to manage the inventory levels according to the results of categorizations and forecasts.; 3.Consolidation of all the product items and grouping them into activity-based classifications; 4.Simulation and forecasting of future sales according to the categorization results; 5. Formulation of different controlled techniques based on the simulations and forecasts, and application of these methods to inventory management.
Environmental scanning is the process of gathering information about events and relationships in a company's external environment that can assist management in strategic decision-making. It involves monitoring the political, economic, social, technological, environmental, and legal factors in areas where a company operates or plans to operate. The objectives of environmental scanning include detecting important trends, identifying potential threats and opportunities, promoting future orientation, and alerting management to converging or diverging trends. Common techniques for environmental scanning include SWOT analysis, PEST analysis, and developing issue priority matrices to determine which trends require closer monitoring.
This document summarizes a research article that examines how three contextual factors - plant size, age, and unionization status - influence the implementation of lean manufacturing practices. It identifies 22 key lean practices and groups them into four "bundles" - just-in-time (JIT), total quality management (TQM), total preventive maintenance (TPM), and human resource management (HRM). The study finds that plant size has a strong influence on lean implementation, while the effects of age and unionization are less significant. It also shows that implementing lean practice bundles contributes substantially to operational performance, explaining around 23% of the variation in performance outcomes.
Cost Implication of Inventory Management in Organised SystemsDr. Amarjeet Singh
This document discusses cost implications of inventory management systems. It uses a case study of a university store, AYZ University, to analyze the costs and inefficiencies of the store's primarily manual inventory system. The study finds that the existing manual system is not effective for time management or efficiency. It proposes developing a new computerized maintenance store system (CMMS) to automate the inventory management process. This would greatly improve the store's operations in terms of both financial costs from reduced inventory levels and time costs from increased efficiency. The economic order quantity model is discussed as a technique to determine optimal inventory levels and minimize total inventory costs.
Supply Chain Efficiency Evaluation: A Contemporary Theoretical ModelWorld-Academic Journal
Supply chain management has gained a prodigious amount of attention from both practitioners and industriessince the last decade. Until now, there are many articles, and dissertations that address supply chain management, but there is still a lack of integration between the current efficiency evaluation methods and practical requisites for the supply chain management. A contemporary efficiency evaluation method is proposed to provide necessary support for efficiency improvement in supply chain management. The proposed method will address this aim in the
following main aspects: a basic supply chain model; concrete and unconcrete efficiency measurement in various dimensions; a cross-organizational efficiency evaluation; and weighted average and fuzzy set theory method.
XXI World Congress Safety and Health at Work: OSH Implementation in SMEs in M...Dr Lilis Surienty
This study examined the role of management practices and legislation on OSH (occupational safety and health) implementation in SMEs (small and medium enterprises) in Malaysia. A questionnaire was administered to 152 SMEs across various industries in Northern Malaysia. The results of a hierarchical regression analysis showed that employee participation and safety training were important for achieving certain OSH implementations. Additionally, legislation enhanced the relationship between safety rewards and OSH implementations, and higher levels of legislation strengthened the impact of management commitment and safety training on OSH implementation. The study provides insights into improving OSH practices in Malaysian SMEs through strategic management practices and appropriate legislative support.
This document outlines key concepts in decision theory. It begins by listing the learning objectives, which are to outline the decision process, describe causes of poor decisions, and techniques for decision making under uncertainty, risk, and using expected value approaches. It then describes the basic decision process and some causes of poor decisions like not following the full process or bounded rationality. It defines decision environments of certainty, risk, and uncertainty and the appropriate analysis techniques for each. It also describes approaches to decision making under each environment like maximin, maximax, and minimax regret. Finally, it discusses using expected monetary value for decision making under risk.
[Article] Redefining Supply Chains to respond to global catastrophes (Biswade...Biswadeep Ghosh Hazra
An article on changing Supply chain management in response to COVID-19. My article has the following sections-
1) The current situation
2) Improvements over the months
3) An ideal Supply Chain Management System
4) Measures to fight back
5) Macroeconomic Implications
6) Footnote
An effective way to optimize key performance factors of supply chainIAEME Publication
This document summarizes an article from the International Journal of Management that discusses optimizing key performance factors in supply chain management. The article begins with an abstract that outlines the goal of using analytical techniques to optimize costs in the outward supply chain. It then reviews relevant literature on supply chain performance measurement and modeling supply chain systems. The methodology section outlines the steps taken, which include identifying key parameters that influence performance, formulating the problem as minimizing total supply chain costs given constraints, validating the model, and implementing the solution. The conclusion emphasizes the importance of supply chain performance measurement for competitiveness.
Significance of material planning, production control in actualization of org...Alexander Decker
This document discusses the significance of material planning and production control in helping organizations achieve their goals and objectives. It explains that material planning involves forecasting material needs based on sales and production forecasts, planning purchases and inventory levels. Production control aims to satisfy customers by meeting delivery deadlines and quality standards. The document emphasizes that proper material planning and control, including optimizing material, worker and machine utilization, is crucial for organizations to avoid issues like losing market share or customers.
Materials management involves planning and controlling all aspects of materials from procurement to delivery, including purchasing, inventory, and quality control. The objectives are efficient planning and procurement of materials, maintaining appropriate inventory levels and quality, and ensuring smooth flow of materials. Key functions include materials requirements planning, purchasing, inventory planning and control, quality control, and forecasting. The integrated approach aims to optimize all materials-related activities from planning to disposal.
This document presents a framework for supplier management that includes selection, evaluation, and performance management. It discusses the need for companies to regularly track and communicate key supplier metrics to improve relationships and ensure priorities are met. The proposed framework was developed through a literature review of common supplier evaluation criteria used in various industries, as well as input from companies on the metrics they use and challenges they face. It identifies eight main criteria categories (e.g. quality, cost, delivery), 32 specific metrics, and a 4-level ranking system to evaluate and manage supplier performance. The goal of the framework is to help companies standardize and consistently execute their supplier management processes.
Benchmarking internal supply chain performance development of a frame workIAEME Publication
This document presents a framework for benchmarking internal supply chain performance using publicly available financial data. The framework calculates three metrics: total length of supply chain, efficiency of supply chain management, and supply chain working capital productivity. It applies the framework to analyze three fast moving consumer goods companies over four years. The analysis finds that Company C consistently had the best performance on the metrics, with shorter supply chain length, higher efficiency, and higher productivity. The framework provides a way for companies to evaluate their internal supply chain performance and identify areas for improvement by comparing metrics over time and to other companies.
Strategic evaluation and control is the process of determining the effectiveness of a strategy in achieving organizational objectives and taking corrective actions when needed. It operates at both the strategic and operational levels by evaluating performance and assessing contributions to objectives. Strategic control takes into account changing assumptions and continually evaluates the strategy as it is implemented, adjusting it to new requirements. Strategic evaluation tests effectiveness and provides feedback on a strategy's continued relevance, allowing organizations to determine if their strategies are guiding them to intended goals. It is important for keeping strategic choices and decisions valid and informing managers on exercising discretion according to strategic requirements.
Medical Technologies Corporation (MTC) proposes optimizing its supply chain to reduce costs by 5% and offset a 2.3% medical device tax. It would move sterilization in-house, use distributors for delivery, manage sales representatives differently, partner strategically with hospitals, and develop 3D printing. This would decrease expenses by $143 million annually and increase net income by 8.6% compared to the previous year. A phased timeline was provided to implement changes in logistics, operations, sales, sourcing, and technology across 2015. Risks and contingencies were also outlined.
Financial Risk Management For ManufacturingDick Lam
The document discusses financial risk management strategies for manufacturing companies during economic downturns. It provides examples of economic stimulus plans from Gordon Brown, Barack Obama, and George Bush in response to the 2008 financial crisis. The document then discusses various risk management strategies companies can adopt, including examining accounts receivable, inventory levels, cash flow, and personnel risks. It emphasizes regularly monitoring key performance and risk indicators to ensure business stability during difficult economic conditions.
The document discusses various aspects of credit risk and risk management in banks. It covers topics like the different types of credit risk, obstacles in credit risk management, methods to reduce credit risks, credit derivatives, securitization process, Basel accords, asset-liability management, capital adequacy ratio, and interest rate risk.
This paper examines the just-in-time (JIT) inventory system. It defines JIT and discusses its advantages and disadvantages according to literature. The methodology section describes a survey of 11 online bakeries in Cumilla, Bangladesh on their use of JIT. Data analysis finds that JIT needs less space and reduces costs through smaller investments. It also finds that time management, supplier management, and daily/weekly management systems are important for JIT. In conclusion, maintaining timing is identified as the key factor for a successful JIT system.
Inventory Management-A tool for efficiency in Production Operations (Repaired)olusakin akindiPe
This document discusses inventory management in manufacturing small and medium enterprises (SMEs). It notes that inefficient inventory management is a serious problem for SMEs that leads to issues like low capacity utilization and loss of production time. The study aims to examine this problem and provide suggestions to improve inventory management practices. It hypothesizes that determining optimal stock levels, engaging skilled store personnel, and using automated stock control systems can help SMEs optimize resource use and improve overall efficiency. An effective inventory management system is important for SME performance and the broader economy.
The document provides a summary of Mpact's risk management review for 2015. It discusses the company's enterprise risk management framework and processes. Key risks identified include supply shortages, energy/water costs and reliability, equipment failures, and labor issues. Mitigation strategies are outlined for each risk. The Risk Management Committee and Audit and Risk Committee oversee risks, while business units are responsible for risk assessment and management. Material risks are regularly reported to committees and the Board.
The document discusses inventory control systems and their importance for companies. It analyzes the inventory control system of Capital Land Assets Pvt Ltd. The objectives are to evaluate the effectiveness of their current inventory control system, analyze inventory control methods used, and identify problems in inventory management. The study examines inventory levels, purchase procedures, supplier selection, and identifies benefits of improving the inventory control system such as reduced costs and better resistance to price fluctuations.
THE STUDY OF PURCHASE INTENTION FOR MEN'S FACIAL CARE PRODUCTS WITH K-NEAREST...ijcsit
Inventory management was a major issue for all the industries. The supplied of products to customers required the readiness of the inventory. This allowed rapid delivery and reduced waiting time for customers so that companies could profit from it. Any stock out or insufficiency would lead to loss of customers because their needs cannot be met. This would hurt firm profitability and market competitiveness. Inventory control was critical to retain liquidity and avoid overstocking. This was also the key to firm's survival and sustainability. To ensure an appropriate level of inventory, it was necessary to manage the inventory levels with sales forecast on an on-going basis. This paper tried to find out its inventory control in order to assisted Company T to improve its inventory control. Firstly, the products offered by Company T are classified into groups. The R programming language was then used to stimulate and forecast future sales of different products. Different techniques were applied to manage the inventory levels according to the results of categorizations and forecasts.; 3.Consolidation of all the product items and grouping them into activity-based classifications; 4.Simulation and forecasting of future sales according to the categorization results; 5. Formulation of different controlled techniques based on the simulations and forecasts, and application of these methods to inventory management.
Environmental scanning is the process of gathering information about events and relationships in a company's external environment that can assist management in strategic decision-making. It involves monitoring the political, economic, social, technological, environmental, and legal factors in areas where a company operates or plans to operate. The objectives of environmental scanning include detecting important trends, identifying potential threats and opportunities, promoting future orientation, and alerting management to converging or diverging trends. Common techniques for environmental scanning include SWOT analysis, PEST analysis, and developing issue priority matrices to determine which trends require closer monitoring.
This document summarizes a research article that examines how three contextual factors - plant size, age, and unionization status - influence the implementation of lean manufacturing practices. It identifies 22 key lean practices and groups them into four "bundles" - just-in-time (JIT), total quality management (TQM), total preventive maintenance (TPM), and human resource management (HRM). The study finds that plant size has a strong influence on lean implementation, while the effects of age and unionization are less significant. It also shows that implementing lean practice bundles contributes substantially to operational performance, explaining around 23% of the variation in performance outcomes.
Cost Implication of Inventory Management in Organised SystemsDr. Amarjeet Singh
This document discusses cost implications of inventory management systems. It uses a case study of a university store, AYZ University, to analyze the costs and inefficiencies of the store's primarily manual inventory system. The study finds that the existing manual system is not effective for time management or efficiency. It proposes developing a new computerized maintenance store system (CMMS) to automate the inventory management process. This would greatly improve the store's operations in terms of both financial costs from reduced inventory levels and time costs from increased efficiency. The economic order quantity model is discussed as a technique to determine optimal inventory levels and minimize total inventory costs.
Supply Chain Efficiency Evaluation: A Contemporary Theoretical ModelWorld-Academic Journal
Supply chain management has gained a prodigious amount of attention from both practitioners and industriessince the last decade. Until now, there are many articles, and dissertations that address supply chain management, but there is still a lack of integration between the current efficiency evaluation methods and practical requisites for the supply chain management. A contemporary efficiency evaluation method is proposed to provide necessary support for efficiency improvement in supply chain management. The proposed method will address this aim in the
following main aspects: a basic supply chain model; concrete and unconcrete efficiency measurement in various dimensions; a cross-organizational efficiency evaluation; and weighted average and fuzzy set theory method.
XXI World Congress Safety and Health at Work: OSH Implementation in SMEs in M...Dr Lilis Surienty
This study examined the role of management practices and legislation on OSH (occupational safety and health) implementation in SMEs (small and medium enterprises) in Malaysia. A questionnaire was administered to 152 SMEs across various industries in Northern Malaysia. The results of a hierarchical regression analysis showed that employee participation and safety training were important for achieving certain OSH implementations. Additionally, legislation enhanced the relationship between safety rewards and OSH implementations, and higher levels of legislation strengthened the impact of management commitment and safety training on OSH implementation. The study provides insights into improving OSH practices in Malaysian SMEs through strategic management practices and appropriate legislative support.
This document outlines key concepts in decision theory. It begins by listing the learning objectives, which are to outline the decision process, describe causes of poor decisions, and techniques for decision making under uncertainty, risk, and using expected value approaches. It then describes the basic decision process and some causes of poor decisions like not following the full process or bounded rationality. It defines decision environments of certainty, risk, and uncertainty and the appropriate analysis techniques for each. It also describes approaches to decision making under each environment like maximin, maximax, and minimax regret. Finally, it discusses using expected monetary value for decision making under risk.
[Article] Redefining Supply Chains to respond to global catastrophes (Biswade...Biswadeep Ghosh Hazra
An article on changing Supply chain management in response to COVID-19. My article has the following sections-
1) The current situation
2) Improvements over the months
3) An ideal Supply Chain Management System
4) Measures to fight back
5) Macroeconomic Implications
6) Footnote
An effective way to optimize key performance factors of supply chainIAEME Publication
This document summarizes an article from the International Journal of Management that discusses optimizing key performance factors in supply chain management. The article begins with an abstract that outlines the goal of using analytical techniques to optimize costs in the outward supply chain. It then reviews relevant literature on supply chain performance measurement and modeling supply chain systems. The methodology section outlines the steps taken, which include identifying key parameters that influence performance, formulating the problem as minimizing total supply chain costs given constraints, validating the model, and implementing the solution. The conclusion emphasizes the importance of supply chain performance measurement for competitiveness.
Significance of material planning, production control in actualization of org...Alexander Decker
This document discusses the significance of material planning and production control in helping organizations achieve their goals and objectives. It explains that material planning involves forecasting material needs based on sales and production forecasts, planning purchases and inventory levels. Production control aims to satisfy customers by meeting delivery deadlines and quality standards. The document emphasizes that proper material planning and control, including optimizing material, worker and machine utilization, is crucial for organizations to avoid issues like losing market share or customers.
Materials management involves planning and controlling all aspects of materials from procurement to delivery, including purchasing, inventory, and quality control. The objectives are efficient planning and procurement of materials, maintaining appropriate inventory levels and quality, and ensuring smooth flow of materials. Key functions include materials requirements planning, purchasing, inventory planning and control, quality control, and forecasting. The integrated approach aims to optimize all materials-related activities from planning to disposal.
This document presents a framework for supplier management that includes selection, evaluation, and performance management. It discusses the need for companies to regularly track and communicate key supplier metrics to improve relationships and ensure priorities are met. The proposed framework was developed through a literature review of common supplier evaluation criteria used in various industries, as well as input from companies on the metrics they use and challenges they face. It identifies eight main criteria categories (e.g. quality, cost, delivery), 32 specific metrics, and a 4-level ranking system to evaluate and manage supplier performance. The goal of the framework is to help companies standardize and consistently execute their supplier management processes.
Benchmarking internal supply chain performance development of a frame workIAEME Publication
This document presents a framework for benchmarking internal supply chain performance using publicly available financial data. The framework calculates three metrics: total length of supply chain, efficiency of supply chain management, and supply chain working capital productivity. It applies the framework to analyze three fast moving consumer goods companies over four years. The analysis finds that Company C consistently had the best performance on the metrics, with shorter supply chain length, higher efficiency, and higher productivity. The framework provides a way for companies to evaluate their internal supply chain performance and identify areas for improvement by comparing metrics over time and to other companies.
Strategic evaluation and control is the process of determining the effectiveness of a strategy in achieving organizational objectives and taking corrective actions when needed. It operates at both the strategic and operational levels by evaluating performance and assessing contributions to objectives. Strategic control takes into account changing assumptions and continually evaluates the strategy as it is implemented, adjusting it to new requirements. Strategic evaluation tests effectiveness and provides feedback on a strategy's continued relevance, allowing organizations to determine if their strategies are guiding them to intended goals. It is important for keeping strategic choices and decisions valid and informing managers on exercising discretion according to strategic requirements.
Medical Technologies Corporation (MTC) proposes optimizing its supply chain to reduce costs by 5% and offset a 2.3% medical device tax. It would move sterilization in-house, use distributors for delivery, manage sales representatives differently, partner strategically with hospitals, and develop 3D printing. This would decrease expenses by $143 million annually and increase net income by 8.6% compared to the previous year. A phased timeline was provided to implement changes in logistics, operations, sales, sourcing, and technology across 2015. Risks and contingencies were also outlined.
Financial Risk Management For ManufacturingDick Lam
The document discusses financial risk management strategies for manufacturing companies during economic downturns. It provides examples of economic stimulus plans from Gordon Brown, Barack Obama, and George Bush in response to the 2008 financial crisis. The document then discusses various risk management strategies companies can adopt, including examining accounts receivable, inventory levels, cash flow, and personnel risks. It emphasizes regularly monitoring key performance and risk indicators to ensure business stability during difficult economic conditions.
The document discusses various aspects of credit risk and risk management in banks. It covers topics like the different types of credit risk, obstacles in credit risk management, methods to reduce credit risks, credit derivatives, securitization process, Basel accords, asset-liability management, capital adequacy ratio, and interest rate risk.
1) Banking in India is defined by the Banking Regulation Act of 1949 as accepting deposits from the public that are repayable on demand and using those deposits to lend money or make investments.
2) The major risks for banks include credit risk, market risk, operational risk, country risk, and risks arising from changes in strategies or the business environment.
3) Risk management techniques used by banks include collateral, credit ratings, exposure limits, guarantees, and mitigating concentration, liquidity, reputation, interest rate, and strategic risks.
This document outlines areas that should be covered in an internal audit of a manufacturing company. It discusses 12 key areas: purchases, sales, creditors, debtors, subcontracting, inventory, export incentives, price escalation, cash management, payroll, labor contractors, and a review of management information systems and internal controls. The goal is to evaluate financial records, internal processes, and risks to help management ensure efficiency, effectiveness and compliance.
Risk is uncertainty about outcomes and the possibility of an unfavorable outcome. It arises from hazards in an individual's environment or activities that could result in potential losses. Proper risk management involves identifying risks, analyzing them, and then avoiding, reducing, retaining, or transferring risks. The goal of risk management is to reduce adverse impacts from uncertain events and increase stability and profitability for an organization.
This document provides an overview and copyright information for the book "Risk Management in Banking" by Joel Bessis. It discusses the rationale for risk-based practices in banking, including the need for quantified risk measures to balance risk and return from a management perspective and comply with increasingly stringent regulations. It also notes that while quantitative models provide a foundation for risk modeling, bridging the gap between concepts and practical risk management tools and processes for banks remained a challenge. The document contains basic publication details such as the publisher, copyright, and cataloguing information.
This document discusses risk management in banks. It outlines the major types of risks banks face: credit risk, market risk, and operational risk. Credit risk is the potential that a bank borrower fails to meet obligations and can take the form of outright default or deterioration in credit quality. Market risk includes liquidity risk, interest rate risk, foreign exchange risk, and country risk due to fluctuations in market values. Operational risk is the risk of loss from inadequate internal processes or systems. The Basel Accords provide capital adequacy guidelines for banks to manage unexpected losses from risks based on their risk profiles. Risk management in banks involves identifying, measuring, monitoring, and controlling various risks to ensure sufficient capital levels are maintained.
Risk management in banking sector project report mba financeBabasab Patil
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Risk management and profitability of manufacturing firms in uganda
1. Industrial Engineering Letters www.iiste.org
ISSN 2224-6096 (Paper) ISSN 2225-0581 (online)
Vol.4, No.2, 2014
49
Risk management and profitability of manufacturing firms in
Uganda
Noah Mwelu1
; Donatus M. Rulangaranga2
*; Suzan Watundu3
; Will Kaberuka4
; Cathy K. Tindiwensi5
1. Department of Procurement and Logistics Management of Makerere University Business School, P. O. Box
1337, Uganda
2. Department of Management Science of Makerere University Business School,
P. O. Box 1337, Kampala, Uganda.
3. Department of Management Science of Makerere University Business School,
P. O. Box 1337, Kampala, Uganda.
4. Department of Management Science of Makerere University Business School,
P. O. Box 1337, Kampala, Uganda.
5. Department of Entrepreneurship of Makerere University Business School, P. O. Box 1337, Kampala,
Uganda.
*Email: donatusmugisha@yahoo.com, dmugisha@mubs.ac.ug
Abstract
This study was carried out to establish whether the risk in manufacturing firms could have a significant impact
on the level of profitability that these firms expect to get in their operations. The study investigated the main
components of risk management in manufacturing firms operating in Uganda and how the risk management
process could be influential in the profitability levels of these firms. The unit of analysis was composed of a set
of manufacturing firms in Uganda engaging in production of goods for sale within and outside the country. Two
respondents were selected from each of the 80 (sample size) manufacturing firms. Data collection was carried
out by means of a questionnaire which was self administered by the respondents. Correlation, regression and
factor analyses were carried out to address the main aim of the study. Findings indicated that risk management
process is carried out by first identifying the risk (or probably estimating its occurrence), evaluating its existence
and probable effect to a business and finally put in place mitigation measures (control). In relation to the effect
that this process has on level of profitability, it has been found that risk management process influences up to
35% of the changes in profitability levels of manufacturing firms in Uganda. This is further supplemented by the
positive and significant correlation (R = 0.598; p≤0.01) between risk management and profitability of
manufacturing firms in Uganda. Basing on this finding and hence the conclusion, it is recommended that
manufacturing firms in Uganda need to adhere to risk management procedures and where possible adopt new
ways to manage risk to ensure that their profitability levels are not negatively affected.
Key words: Risk Management, profitability
1. Introduction
Risk is considered to be one of the major stumbling blocks in the process of business start-ups and continuity in
the business transaction phases. A common saying goes, “the higher the risk, the higher the return” (Niringiye,
Luvanda & Shitundu 2010). This is an indication that the risk element in a business has an impact onto levels of
return that a business expects to realize from trading. Where this is the case, the actual magnitude of this
influence is not documented making it possible to vary from business to business. This forms the centre point of
this study that was set out to establish the influence that risk management exercise may have on manufacturing
firms in Uganda as far as their level of profitability is concerned.
2. Theoretical review
Risk management is the central part of an organization’s strategic management and it is the process whereby
organizations methodically address the risks attaching to their activities with the goal of achieving sustained
benefits within each activity and across the portfolio of all activities. Organizational profitability may be affected
by poor outsourcing and risks in the supply chain (Kwabena, 2005). Risks may include operational risk, decision
risks, supplier base reduction, Globalization, acquisition mergers and alliances, inertia and just in time
relationship risks.
Risk management may be done into risk management process that implies risk identification, risk estimation,
risk analysis/assessment, risk evaluation, risk reporting and communication and then risk monitoring /control and
2. Industrial Engineering Letters www.iiste.org
ISSN 2224-6096 (Paper) ISSN 2225-0581 (online)
Vol.4, No.2, 2014
50
review(Bikker and Metzmakers, 2005). Whereas a risk in simple terms can be measured using standard
deviation, some risks may be difficult to measure requiring more complex methods of risk measurement. Good
risk management is not only a defensive mechanism, but also an offensive weapon for manufacturing firms and
this is heavily dependent on the quality of leadership and governance. Jorion (2009) notes that a recognized risk
is less “risky” than the unidentified risk. Risk is highly multifaceted, complex and often interlinked making it
necessary to manage, rather than fear. Risk is not only avoidable but manageable (Payle, 1997; Greuning and
Bratanovic, 1999). Risk management can also be done throughout sourcing, stock piling, insurance, suppler
development, contractual obligation, collaborative initiatives and careful supplier selection.
Risk management involves risk identification, estimation, analysis, evaluation and control. Understand the nature
of the risk ascertaining the impact and profitability of the potential risks on the supply chain. When risk analysis
process has been completed, it is necessary to compare the estimated risk against risk criteria which the
organization has established so as to have a corrective mechanism to improve the firm’s profitability levels
(Niringiye, Luvanda and Shitundu, 2010).
Kwabena (2005) mentions that assessing risks is an ongoing process. It typically involves an organization
engaging in a rigorous analytical process to identify risks and, where possible, to quantify them and the board of
directors or senior management to determine the risk tolerance, based on an assessment of the losses of the
organization. Effective risk assessment allows the organizations to better understand its risk profile and most
effectively target risk management resources that will help the manufacturing firms avoid or reduce risks hence
improving their performance.
Effective risk management requires a reporting and review structure to ensure that risks are effectively identified
and assessed and appropriate controls and responses are in place. Regular audits of policy and standards
compliance should be carried out and standards performance reviewed to identify opportunities for
improvement. The monitoring process should provide an assurance that there are appropriate controls in place
for organization’s activities and procedures are understood and followed (Ukandu, 2007).
Outcome of risk management are increased confidence through quality assurance, allocation of resources to risk
management, disaster recovery and business continuity plans, increased reputation and coordination with service
and delivery patterns, hence customer attraction leading to more sales volumes and market share as a measure of
profitability (Chapelle et al, 2004.) .
3. Methodology
The study was conducted following a cross-sectional research design. This was as a result of a need to obtain a
snapshot view of the responses in relation to the study. A total of 100 manufacturing firms were considered to
form the study population out of which only 80 were selected as the sample study using the Krejcie and Morgan
(1970) Sampling table. Since the study was focused on risk management and profitability, the manufacturing
firms were considered to be the unit of analysis. From the selected manufacturing firms, two respondents from
each manufacturing firm were considered to form the unit of inquiry. One respondent was selected at managerial
level and another at supervisory level. This group of respondents was selected because of their experience in
running their organizations both in form of risk management as well as profitability issues.
The study was conducted using self administered questionnaires. The questionnaire was tested for reliability and
validity before being issued out to respondents. Results of these tests are displayed in table 1.
Table 1: Reliability and Validity test results
Research construct CAC CVI
Risk management 0.819 0.810
Organizational profitability 0.830 0.714
Key
CAC – Cronbach’s Alpha Coefficient
CVI – Content Validity Index
4. Data analysis, results and discussion
A review of the questionnaires that were returned from the field was conducted to establish whether the
respondents participated as expected. Basing on the review, a total of 158 questionnaires were found to have
been fully filled and returned out of the 160 questionnaires issues out (Recall: 2 respondents from each of 80
sampled manufacturing firms making a total of 160 respondents). This represented a 98.75% response rate which
was very good for this study.
3. Industrial Engineering Letters www.iiste.org
ISSN 2224-6096 (Paper) ISSN 2225-0581 (online)
Vol.4, No.2, 2014
51
In the actual analysis, the SPSS software was employed. The first analysis carried out was the factor analysis to
establish the main components of risk management process in Ugandan manufacturing firms as one of the main
aims of this study. Findings in relation to this are displayed in table 2 below.
Table 2: Rotated Component Matrix - Risk management Process for manufacturing firms in Uganda
Question items
Risk identification
and estimation
Risk analysis
and
evaluation
Risk
control/overall
management
The company has a risk management framework
in place
.845
My company utilizes a formalized framework
that helps to identify risk
.797
There is a risk register as a key in risk
management process
.705
Analyzing and evaluating risk helps to draw
solutions
.711
Analyzing and evaluation of risk is key to
company's performance
.804
The company has made improvements in risk
management process for the last years
.778
The company has established a corporate level
risk management function
.775
There is always a risk manager responsible for
estimated risks
.721
The risk register is updated regularly .851
Source: Primary data
Basing on the results from factor analysis, it three main components (steps) can be established to form the risk
management process in manufacturing firms in Uganda. Judging from the factor loadings (Above 0.7), these
components are considered to be very important in the risk management process of these manufacturing firms.
This is an indication that the manufacturing firms do indeed have risk management process and take the whole
process of risk management important.
In relation to the influence that the risk management exercise might have on the level of profitability, correlation
and regression analyses were carried out. These are further discussed in the subsections that follow;
4.1 Correlation results
Basing on the objective to establish the influence of risk management process on the level of profitability in
manufacturing firms, the first step that was considered necessary was to establish the strength, significance and
direction of association (relationship) between risk management process and profitability levels in these
manufacturing firms. This was through the correlation analysis. Results in relation to this analysis are displayed
in table 3.
Table 3: Correlation Results
Risk management Profitability
Risk management 1
Profitability .598**
1
**Correlation is significant at 0.01 level ~ 2 tailed.
Source: Primary data
The correlation results indicate that there is a very strong correlation (r = 0.598; p≤0.01) between risk
management process and profitability in manufacturing firms in Uganda. This association is further reported to
be a positive one and significant at 0.01 level (2-tailed). This means that improvement in risk management
processes in these manufacturing companies has a high chance of bringing about improvement in profitability
levels (direct or positive relationship).
4. Industrial Engineering Letters www.iiste.org
ISSN 2224-6096 (Paper) ISSN 2225-0581 (online)
Vol.4, No.2, 2014
52
4.2 Regression results
The nature of association as displayed in table 3 indicated that there could be some degree of influence that risk
management process could have onto profitability levels in manufacturing firms in Uganda. To be able to
ascertain this, a regression analysis was carried out. Results in relation to this analysis are displayed in table 4
below.
Table 4: Results from Regression analysis
Unstandardized
Coefficients
Standardized
Coefficients t Sig.
B Std. Error Beta
(Constant) 1.873 .336 5.570 .000
Risk management processes .559 .084 .598 6.682 .000
Dependent variable: Profitability levels
R: 0.598
R-Square: 0.358
Adjusted R-Square: 0.350
F-Static: 44.643
Sig: 0.000
Source: Primary data
Basing on the results in table 4 above, the influence of risk management process onto profitability levels is
actually there for the case of manufacturing firms in Uganda. This is judged from the degree of influence as
provided by the measure of ‘Adjusted R-Square’. According to this measure, the risk management processes
influence up to 35% of the changes in profitability levels in manufacturing firms in Uganda. This may sound to
be small but in essence the influence is a significant one as displayed by the model significance of 0.000 in this
analysis. This further implies that the influence is actually a significant one.
This study revealed that there exists a significant and positive relationship between risk management and
profitability which is an indication that the more a company successfully manages risk in its operations, the
higher the chances of getting more profits from those operations. This result is supported by the findings of
(Chapelle et al, 2005.) who argue that the outcomes of risk management are increased confidence through
quality assurance, allocation of resources to risk management, disaster recovery and business continuity plans,
increased reputation and coordination with service and delivery patterns, hence customer attraction leading to
more sales volumes, market share and high profit margin as a measure of profitability. This is also in line with
Niringiye, Luvanda and Shitundu, (2010) who argued that when risk analysis process has been completed, it is
necessary to compare the estimated risk against risk criteria which the organization has established so as to have
a corrective mechanism to improve the firm’s profitability levels.
In line with the need to improve profitability levels of a business, the understanding of the risks themselves at a
company level is also very important. The findings indicate that manufacturing firms in Uganda do understand
the risk management process they go through which includes the identification of risks, evaluation and
measurement as well as controlling it. This is an indication that these businesses have a good understanding of
the operational environment they are in so as to put into consideration to always try to identify the possibility of
new risks existing in their operations. This is in line with the study conducted by Ariane et al (2004) who
stressed the need to understand the operational risks and their impact in the operational environment. Though the
focus of these authors was in the finance and banking industry, their concepts fit well with the current findings.
The need to have risk mitigation and control as a major component of risk management in manufacturing firms
as suggested in the current study findings is also supported by the writings of Christopher & Lee (2004). Their
focus in their study was in the supply chain and the need to improve the chain by identifying the risks and
mitigating against them even when they have not happened to bring about improved customer confidence.
According to their study, it is this customer confidence that brings about improved profitability as reported in the
current study. This same argument was supported by Corbett & Klassen (2006) who further stressed the need to
have environmental excellence for better business operations. This environmental excellence is dependent on the
extent to which the risks in the environment are correctly identified, evaluated and controlled.
5. Industrial Engineering Letters www.iiste.org
ISSN 2224-6096 (Paper) ISSN 2225-0581 (online)
Vol.4, No.2, 2014
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5. Conclusion
Risk management is reported to be an integral part of manufacturing firms in Uganda. This finding indicates that
the manufacturing firms in Uganda are in the right direction as far as ensuring their operating environment is
secure enough for the progress and advancement of more and more manufacturing activities. Though not yet
perfect to the level of developed countries, the fact that the manufacturing firms already understand the need to
mitigate against possible risks is an indication of their readiness to develop and improve their levels of
profitability further. The influence that risk management has on profitability levels of these firms is also an
indication that the firms (manufacturing firms) are in the right direction towards guarding against any possible
erosion of their profitability levels as they struggle to make better the risk management processes they already
have. Basing on prevailing circumstances as highlighted in the study, it is recommended that the manufacturing
businesses in Uganda continue putting forward the risk management processes in all their dealings. This way, the
gradual improvement in profitability levels will be expected.
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