How to set password pdf file? PDF files can be encrypted using various tools, Adobe Acrobat software can use to set password protection for PDF files, and user passwords and owner passwords can be set. The user password needs to enter to open the file, and the owner password can set the permissions of the file, such as printing, copying, etc.
Here are the articles to explain, How to set a password pdf file? Method and Tutorial
PDF file encryption can also use Online PDF Converter, you can use the PDF conversion tool online to encrypt PDF files, and you can set user passwords and owner passwords. And use PDFill PDF Editor software to set password protection for PDF files. You can set user passwords and owner passwords.
Many PDF readers also support encrypted PDF files, such as Foxit Reader and Sumatra PDF. These tools usually support password-protected PDF files and can set different permissions (such as printing, copying, editing, etc.).
Please note that once the password is lost, it cannot recover, so please keep it safe. In conclusion, if you need to encrypt PDF files. You can use one of the tools mentioned above to do so.
WPS Method 1:
Our commonly used WPS tool can also encrypt PDF documents. And I will show you the specific steps of document encryption below.
Operation steps: use WPS to open our PDF document, then select the “Document Encryption” function in the “Protection” column in the upper menu bar, then we can set the password to open the PDF document in the encryption interface, etc., and finally click “Confirm” ” button.
Quick PDF Editor Method 2:
This is a PDF editing tool that can easily convert between PDF, Word, Excel, and other document formats. It also provides multiple functions such as PDF encryption and decryption, PDF merging, and splitting. One-click to set the PDF file encryption effect to ensure the confidentiality and security of important files. And high-speed decryption of received files, making work docking more convenient and faster.
Operation steps: Use this software to open our PDF document, click the “File” option in the upper right corner. Then select the “Document Properties” function.
After entering the document properties interface, we select “Security” in the category. Then select the security method as the “Security Password” option.
Then we enter the password security setting interface, we can choose encrypted rheumatism, set the password and permissions of the document, etc., and finally click the “OK” button to save.
Speedpdf Method 3:
This is an online conversion tool that provides conversion methods such as PDF to Word, Excel to PDF, PPT to PDF, etc. It supports merging, splitting, reading, editing, encryption, etc. of PDF files to help users solve PDF processing problems.
Operation steps: Search and open the website in the browser, select the “PDF encryption” function in the “Security” column above, and click to upload our PDF document.
After importing the document, click the “Convert” button to enter the encryption interface. Then set the password for the document, and click the “PDF Encryption” button to confirm.
Method and Tutorial for How to set password pdf file? Image by Capucine from Pixabay.
Introduces the connotation of analytical design management pdf the importance of the new product development process to enterprise development, and the functional management of design management in the new product development process. Due to fierce market competition, shortening the time for new products wins the opportunity. Design runs through and dominates the entire new product development process. Pay attention to the role of design management in the development of new products. Then improve the competitiveness of enterprises in the market.
Here are the articles to explain, New product development process pdf under design management mode
Main Keywords: design; design management; new product development process pdf; gate
With the development of globalization and the diversified needs of consumers. Enterprises must continuously develop new products to cope with fierce market competition. So the product life cycle is shortening year by year. Customers are becoming more and more demanding of products, and their desire for new products is getting higher and higher. Enterprises must have a product mechanism that can continuously develop products according to market demand. The product development process is the most important aspect of R&D management. The systematic product development process must be cross-functional. Excellent products will not produce naturally in the enterprise. It needs to complete through a series of effective management. The design has become the key to creating products to increase added value, and strengthening the combination of design and management is an effective way to further improve the new product development process with pdf.
The meaning and necessity of design management
So far, there is no unified definition of design management. Because design and management have different meanings when considered from two different background disciplines. The definition of design management currently accepted by most scholars refers to:
“Defining design problems and goals, finding suitable designers, integrating, coordinating or communicating the resources needed for design, using management methods such as planning, organization, supervision, and control, and seeking The most appropriate solution, and through the management of design strategies, strategies, and design activities, solve problems in a timely and effective manner within the established budget, and achieve the intended purpose.”
In developed countries such as Europe, America, and Japan, companies have a set of systematic methods to manage design to ensure the smooth progress of the entire product development process.
Design management has the following necessity for enterprise development:
The success of the design is affected by many factors, which not only depend on the designer’s ability but also require scientific management design;
Social division of labor is becoming more and more refined, individual, or independent The department cannot undertake the entire product research and development at all, and requires the coordination and communication of relevant technical and management personnel;
The status of design in the enterprise is becoming more and more important, and the design process and objects are becoming more and more complicated.
The design itself not only needs to manage, and is itself a management tool.
Analysis of the new product development process
Somas H. Perry believes: “The process is a method used to replace the old model and guide the company to maintain a constant supply. It does not isolate, nor is it temporary, nor is it used for a while and then abandoned. “New product development is the key to the prosperity of an enterprise, and the battle of product innovation will be unusual for global companies. Many companies lose their competitiveness because they fail to innovate and fail to make. Their products conform to the trend of the times and are even eliminated by competitors. A successful product innovation process is an important solution to new product development activities. R&D The new product development process pdf focuses on revving product innovation.
New product development is the key for enterprises to improve their competitiveness
Although new product development is the riskiest, it is also the most important strategic requirement of the enterprise. Developing new products requires a lot of manpower, material, and financial resources, but its benefits are huge. According to statistics, the average revenue from new products exceeds 1/3 of the company’s total revenue, and this figure is gradually increasing. Even in some dynamic industries, new product revenue is 100% of the company. This figure shows that if you don’t innovate, you may face obsolescence. On the other hand, the return on investment of new products is objective.
The average return on investment of successful new products is as high as 96.9%, and the average payback period is 2.49 years. The product life cycle time is shortening because successful new products can not only maintain and improve market competitiveness, but more importantly, the innovation ability of enterprises can predict the long-term investment value. New products are the key to the development of an enterprise. There are inevitable driving factors for innovation behind it.
First, the exponential development of science and technology has created an objective environment for product innovation, and many fanciful concepts have now become reality;
second, the needs of customers. Due to the ever-changing needs of consumers, companies must respond quickly To cater to them;
third, the shortening of the product life cycle (PLM), the time of PLM has been shortened to a quarter of the original, if new products are not developed in time, they will surpass competitors;
fourth is the trend of globalization, Globalization creates more opportunities for enterprises, so accelerating new product development is the core content of enterprise strategy.
The systematic new product development process
Managers of many companies feel that the speed of launching new products is not as fast as before, and competitors are faster than themselves. There are more customer complaints, and the quality of new products is not as stable as before. The marketing department complains that the R&D department has not perfected the product’s functions and quality. The R&D department complains that the customer requirements provided by the marketing department are not complete and timely; product development is still in the serial engineering stage. The most important thing to solve the above problems is to have a systematic product development process.
First, the goals of the new product development process should be clarified:
focus on quality management;
accelerate concurrent engineering to improve product development efficiency;
implement a cross-functional approach.
The new product development process is essentially a process of supervision and quality assurance, including the entire process from concept to product.
At the same time, possible risks need to take into account. Implement concurrent engineering to balance the contradictory goals of quality and speed in the product development process. All stages and departments work at the same time, and timely communicate and adjust. If there are problems, that is, to ensure product quality and increase R&D speed, avoid implementation in sequence.
If there is a problem in a certain stage of the traditional serial process, it must rework from the beginning. Concurrent engineering requires that the product development process must be a cross-functional department. Each functional department not only has independent research and development rights. But also must communicate with other departments. Processes should be consumer-centric and market-oriented.
Design management in the new product development process
The product development process requires a design manager
According to the role of managers, design managers can divide into market managers, financial managers, design project managers, and personnel managers. Market managers are related to designing the market, making preliminary research, analyzing consumers’ psychological needs, etc. The importance of preliminary research determines the important role of market managers. Proper research and evaluation of the market by managers avoid repetitive work in product development. And reduce the amount of rework, and the profits from new products are naturally greater.
Financial managers are responsible for designing project fundraising, budgeting, cost accounting, financial monitoring, and other links. This part of managers ensures that the company implements design projects more efficiently and greatly promotes teamwork. Design project managers are responsible for formulating and controlling design activities, design planning, design quality monitoring, design construction, and other related layouts. As the needs of consumers are becoming more and more diversified. The position of design project managers in enterprises is becoming more and more important.
Managers’ decision-making ability and communication abilities can detect failed projects early. If potential projects may fail discover them early. It will save costs for enterprises, shorten product development time, and improve enterprise competitiveness. Personnel managers are responsible for the management of design human resources, and the essence of competition among enterprises is the talent competition. Each gate in the product development process adopts the principles of cross-functional departments.
High-quality design talents need to have the ability to work in a cross-functional team. Although different design managers play different roles in product development. They are in the new There is a common role in the product development process to improve teamwork, reduce rework and repetitive work, increase success rates, catch failed projects early, keep new products running smoothly, and shorten product timelines.
Functional management of design management in the new product development process
Functional management refers to responsibility and performance management, which plays a role in discovering and solving problems. The purpose of functional management is to ensure the continuous, effective, and healthy development of the enterprise. Provide a strong guarantee for the goal and supervise itself and the enterprise’s behavior with scientific methods. Market demand-oriented process management will replace traditional supply-oriented functional management and become the core of enterprise management.
The basic functions of design management include planning, organizing, leading, and controlling. Each phase in the product development process consists of a set of pre-planned, cross-functional, simultaneous activities. The new product development process includes the discovery stage, determining the scope, establishing and generating projects, developing testing, and other stages. The discovery stage requires managers to have a strong strategic awareness and plan a solution that meets market demand and is technically feasible.
Additional
If the plan adopts, it will enter the stage of determining the scope, and organizing various departments to conduct investigation and analysis. The next phase establishes the business project and defines a successful new product. In the product development stage, managers need to organize and lead various departments to carry out concurrent engineering, control product quality, and shorten R&D time. The product at the last stage needs to implement the plan of the marketing department and the plan of the production department to control the smooth progress of a complete plan.
The functional management of design management does not only reflect in each stage of the new product development process but more importantly, it reflects in a gate before each stage. The gate determines whether the development activities can advance to the next stage of the process. It has an important quality control effect. The gate not only has the participation of management personnel but also has relevant technical support and market factors.
Conclusion
The success of new products is the premise of improving the competitiveness of enterprises. Optimizing the new product development process and making decisions at each stage are the guarantees for increasing the success rate. The new product development process is a complex, cross-functional process that requires different talents to guide its important parts. The product design and R&D department not only runs through the entire product development process pdf. But the most important thing is that the product innovation ability is the driving force for the growth of the enterprise. The purpose of design management is to ensure that the organization effectively allocates design resources. So design management plays a decisive role in the new product development process pdf.
New product development process pdf under design management mode; Photo by Andy on Unsplash.
The article Discussion of Commercial Accounting Informatization Construction Essay PDF. With the continuous acceleration of social development, the level of modern information technology has also stood gradually improved. And the construction of accounting informatization stands the most concern. Because it is directly related to whether the economic activities of the industry can carry out smoothly. And can solve the problems existing in the process of enterprise development. At the same time, the construction of accounting informatization is also an inevitable trend of healthy and sustainable development of the modern industry, which needs the attention of leaders.
Here are the articles to explain, A Brief Discussion on the Informatization of Commercial Accounting Essay PDF.
This pdf essay conducts in-depth research on commercial accounting informatization, and then fully implements and implements the construction of accounting informatization, injecting a steady stream of energy into the development of the industry. Accounting informatization construction is a comprehensive project, which mainly refers to the integration of accounting and information technology, and is also the key to meeting the development needs of various economic activities of enterprises.
Nowadays, the reform of the market economy system continues to deepen, and the trend of competition among all walks of life is gradually increasing. To promote the smooth progress of informatization construction, it is necessary to formulate feasible plans based on the actual situation, and it is also necessary to inject vitality and vitality into the development of enterprises. To ensure the healthy and sustainable development of the enterprise.
First, the concept and connotation of accounting informatization
Accounting informatization refers to the effective integration of accounting and information technology, which is a key link in the current enterprise development process. Due to the expansion of the industry development scale, the competition trend is gradually increasing. Therefore, to specific requirements under the new economic system, the relevant leaders need to pay attention to the construction of accounting informatization, and continuously improve the comprehensive market competitiveness of enterprises. Furthermore, accounting informatization can also solve the problem of isolated islands in the previous accounting computerization, thereby promoting the healthy development of other economic management activities.
The connotation of accounting informatization needs to analyze through the following contents:
First, the so-called accounting informatization refers to the use of internal accounting information as an information resource for economic management by an enterprise in the process of production management, and the staff needs to use advanced computer equipment processes the data information.
Second, the times are developing, and the speed of industry development is gradually increasing. Strengthening the construction of accounting informatization can ensure that the management level improves. And promote the development of accounting management in a standardized direction. This method is different from the traditional method, because of the construction of information technology The effect obtained is more significant, which can promote the development of enterprises in the direction of information management.
Second, the main characteristics of accounting informatization
(1) Universality
Accounting informatization has many characteristics, of which universality is a more prominent feature, and accounting informatization itself effectively integrates accounting and information technology and is also an important part of modern industrial economic activities. For example, it includes accounting work, accounting management, and accounting education. Therefore, in the actual accounting management process, leaders can only promote the smooth progress of their management work if they master the characteristics of accounting informatization.
Furthermore, traditional accounting management lags in, which may cause the construction of accounting informatization to stagnate. With the development of modern society, managers have also begun to realize the importance of strengthening the construction of accounting informatization and taking measures. A certain method will implement and carry out the construction of informatization, to its universal value.
(2) Integration
Integration is an important feature of accounting informatization, and accounting informatization mainly refers to rearranging traditional accounting organizations to further lay a good foundation for enterprise development. At the same time, accounting involves a relatively large number of fields. Therefore, to need social and economic development, we must also pay attention to the construction of accounting informatization. Specifically, the following links should be done well.
First, managers need to closely link finance and management work. This is very important, can obtain satisfactory accounting informatization construction effect, and can create good conditions for the vigorous development of enterprises.
Second, in the process of informatization construction, enterprises also need to use external forces to optimize management. For example, advanced computers and other equipment can be introduced under the premise of economic conditions, to the work pressure of staff. Which also helps to ensure the relevant quality of data information.
Third, promote the smooth development of accounting informatization construction and lay a solid foundation for the subsequent development of the enterprise.
(3) Dynamic
In addition to the above features, the construction of accounting informatization has a more prominent feature, namely dynamic, which we can also call real-time or synchronicity. Accounting management is an important part of enterprise development, and it is required to ensure that it can In order Toirm foothold in the era of high competition pressure, we must pay attention to informatization construction.
Due to the dynamic nature of informatization construction, relevant leaders need to improve. Their sense of responsibility in the process of actual accounting informatization management and do a good job with due diligence. It is necessary to comprehensively analyze and organize relevant data information, to the accuracy of data information. And bring data support for the decision-making work of decision-makers.
At the same time, to the hands of personnel, enterprises should also introduce modern technical software to assist work. Such as using accounting information systems, so that data processing can be carried out in real-time. In addition, enterprises can also collect accounting data to lay a good foundation for the development of subsequent economic activities. The staff can calculate and update the data according to this feature. Through data analysis, they can g the current management situation of the enterprise.
(4) Progressive
With the development of modern society, the level of scientific information technology has also been greatly improved. And the construction of accounting informatization has also attracted people’s attention. Which can be said to be crucial to the development of the industry.
First of all, information technology itself can play a role in promoting the reorganization of the accounting model. The staff should establish an accounting-based accounting information system based on the actual situation. Guide personnel at all levels to strengthen accounting management according to the system. And further, implement the application of information technology. value comes into play.
Secondly, managers should also find other ways to promote the development of informatization construction. For example, modern high-tech means can be used to improve the level of informatization construction in an all-around way, and at the same time. It can also promote the development of other economic activities in the industry.
In addition, modern technical means can also be used to provide digital and informatization support for accounting decision-makers to ensure the smooth progress of informatization construction. Also, may like to read Thinking of Accounting Firms for Small Business.
PDF Research on Commercial Accounting Informatization
(1) Deepen the understanding of commercial accounting informatization
Commercial accounting informatization involves a lot of pdf content. Therefore, to develop the needs of all walks of life. It is necessary to enhance the understanding of commercial accounting informatization of personnel at all levels. It is mainly a work mode formed by breaking through the constraints of manual accounting. The subsequent economic activity of the industry is crucial. In recent years, the development of the industry also needs the support of modern high-tech. And it is necessary to pay more attention to the construction of informatization.
More importantly, it is necessary to increase the attention of personnel to the construction of informatization. And actively participate in the relevant management work, thereby helping enterprises to obtain high economic profit. At the same time, accountants should use modern technical means to promote the smooth progress of accounting informatization construction.
The application of technical means can make up for the loopholes in traditional management forms. Thereby promoting the smooth development of accounting informatization construction. And ensuring the healthy development of other economic activities of the enterprise. In addition, accounting informatization also has many characteristics, such as universality and integration. So enterprise managers should also formulate feasible plans according to their characteristics to promote the construction of informatization.
In particular, leaders should lead by example and strive to improve themselves. And constantly learn advanced work concepts, to the smooth progress of accounting informatization construction. In addition, in view because of the comings in the construction of accounting informatization. It is also necessary to optimize and adjust in time and promptly implement. And carry out the construction of accounting informatization as much as possible. To toe with the development of the times and continuously improve Comprehensive market competitiveness and maximize profits.
(2) Strengthen the training of compound accountants
Since the reform and opening up, the development scale of all walks of life has gradually expanded. At the same time, the types of internal business projects are also changing. To need their account informatization construction, enterprises need to strengthen the training of compound accounting talents. Because talent is an important part of the smooth development of economic activities. If the overall quality and ability of internal personnel are low. It will be difficult to meet the needs of their information construction, and it will also restrict their event. Therefore, it is very important to pay attention to the cultivation of compound talents.
First, enterprises need to pay attention to internal personnel training. Especially to strengthen the training of accounting personnel, and continuously improve their workability and business level. Because the level of personnel ability is related to the effect of accounting information construction. Of course, it is necessary to raise the threshold when recruiting personnel in the early stage, to further ensure that the abilities of the recruited personnel can meet the requirements of accounting informatization construction, and to truly improve the comprehensive management level and develop in a better direction.
Second, accountants should apply modern information technology to give full play to the value of modern technology. Which is very critical for the future development of enterprises.
Third, to construct accounting informatization, enterprises can also hire some professional personnel from outside to participate in the construction of accounting informatization. Because such personnel themselves have received higher education, their abilities and qualities in all aspects are generally relatively high.
Fourth, promote the healthy development of commercial accounting informatization construction by strengthening the training of compound technical personnel.
(3) Guaranteeing the authenticity and sharing of financial data
Through the above introduction, pdf we have learned that the progress of commercial accounting informatization construction has been affected in the past due to the influence of various factors. Therefore, to develop the needs of the industry. It is necessary to take effective measures to promote the construction of accounting informatization.
First of all, enterprises need to take certain measures to improve the quality of financial data. Only by guaranteeing its authenticity can it promote its own healthy, vigorous, and stable development. And it will not hinder the development of other economic activities. Therefore, leaders must ensure the authenticity of financial data and information. At the same time, staff at all levels should also understand the importance of accounting informatization construction, and be good at completing informatization construction tasks with the help of advanced information technology. Manage tasks.
Secondly, it is necessary to take countermeasures to deal with the difficulties encountered in the process of informatization construction. To timely ensure that enterprises can improve their comprehensive strength in the context of the rapid development of modern information technology.
Nowadays, the construction of accounting informatization is also inevitable for the sustainable development of modern industry. Trend, for this reason, it is necessary to use technical means to ensure the authenticity and sharing of financial data. In addition, in the process of accounting informatization construction, managers must constantly summarize work experience, strengthen internal control management, and further improve the accounting management level on the original basis. The emergence of problems such as leaks, in this way, can meet the actual requirements of the construction of accounting informatization.
Conclusion
To sum up, on pdf the construction of commercial accounting informatization is very important for the development of the industry. The construction of accounting informatization is relatively comprehensive. It is necessary to master its characteristics and formulate feasible plans to promote the smooth development of informatization construction. It is necessary to enhance personnel’s understanding of commercial accounting information. And strengthen the training of compound accounting talents. It is also necessary to ensure the authenticity and real-time sharing of financial data, to the value of informatization construction, and at the same time. It can also lay a solid foundation for subsequent accounting management work. foundation, and promote enterprises to stand out in the unpredictable market economy system.
Discussion of Commercial Accounting Informatization Construction Essay PDF; Photo by NORTHFOLK on Unsplash.
Enterprise Risk Management Framework Essay PDF; In today’s continuous and rapid development of enterprises, to scientifically and comprehensively improve the overall development quality of enterprises, effectively enhance the core competitiveness of enterprises, and effectively prevent potential risks and hidden dangers, we should actively build a sound internal control management system. Therefore, it can effectively strengthen internal control management and control work, maximize the core competitiveness of the enterprise, and better optimize the overall development effect of the enterprise.
Here are the articles to explain, Improve the internal control system and build the Enterprise Risk Management Framework Ideas Essay PDF Part 1!
In the process of continuous and rapid development of enterprises, risk management is crucial. This is mainly because the operation and development of enterprises inevitably encounter various risks. If there is a lack of a sound risk prevention and control system and necessary risk management work; it will inevitably affect the long-term sustainable development of the enterprise to a large extent. To this end, enterprises must rely on a scientific and efficient internal control system to effectively improve; their risk prevention and control capabilities in the enterprise risk management framework.
In practice, to better optimize the development level of the enterprise; the enterprise must carry out the internal control management work scientifically and accurately according to its own development needs and market environment, relying on the refined internal control management system to ensure the development quality of the enterprise to the greatest extent, All-round optimization of the business level of the enterprise.
Analysis of the relationship between risk management and enterprise internal control;
In the process of continuous and rapid development of the enterprise, to scientifically and comprehensively improve the overall development quality of the enterprise and better optimize the operation level of the enterprise; it is necessary to fully and comprehensively carry out the internal control work. At the same time, in today’s increasingly fierce market competition; enterprises are also facing higher risks and challenges in the process of long-term and rapid development.
To effectively prevent possible operational risks, and at the same time maximize the effectiveness of internal control; it is necessary to improve the internal control system to deal with risks efficiently and scientifically. The practice has proved that in the practice process of enterprise operation and development; the internal control system and risk management are closely related in the enterprise risk management framework. On the one hand, internal control and risk management are mutually reinforcing.
Risk management focuses on management;
Including risk management in all aspects of enterprise establishment, decision-making, personnel, production, and marketing. The internal control system is an effective measure for enterprises to achieve an enterprise risk management framework; so that various management processes can be smoothly carried out under the control of internal control. There are essential differences between the two in terms of management and control functions; and, the issues involved in management overlap, while management functions complement each other.
It can be said that it is precisely because of the close relationship between the two that enterprises can prevent; and, respond to risks in an all-around way through the construction of an internal control system; to better improve the quality of business development and optimize the core competitiveness of enterprises in an all-around way. On the other hand, the two are intermingled. In the process of rapid development of enterprises, the internal control system and risk management are integrated and unified.
It can be said that the construction of the internal control system; itself is to achieve effective risk prevention and efficient tracking management. On the contrary, the scientific advancement and efficient development of risk management work is also to better practice internal control work. Although the focus of the two in the practice process is different, their goals are highly consistent. At the current stage, enterprises are developing rapidly, and it can be said that opportunities and challenges coexist.
Only by better strengthening internal control management and doing a good job in risk prevention and control can an enterprise truly optimize the internal management effectiveness of the enterprise and comprehensively improve the quality of the enterprise’s business development. Therefore, while improving risk management, enterprises should also pay attention to Optimizing the construction of internal control systems.
Prominent problems existing in the internal control of enterprises;
In the process of enterprise operation and development, to better optimize the quality of risk prevention; maximize the level of risk prevention and control, and effectively avoid possible market risks and operational risks; enterprises must focus on optimizing the construction of internal control systems. Relying on a scientific and refined internal control system; it can analyze and sort out the outstanding practical problems in the business development of the enterprise to the greatest extent, and can also better deal with market risks. However, at the current stage, there are still more prominent problems in the practice of internal control management of enterprises; which are embodied in the following aspects:
Relatively weak awareness of internal control;
In the process of continuous and rapid development of the company, to better improve the effectiveness of internal control; it is necessary to fully and comprehensively improve the awareness of internal control, scientifically and comprehensively; create a good atmosphere for internal control, and maximize the overall internal control. effectiveness. But at the current stage, enterprises lack scientific awareness of internal control in the process of internal control.
For example, the management of the enterprise lacks sufficient attention to internal control and does not give accurate cognition of internal control work; which makes internal control useless, and it is difficult to truly improve the application effect. Another example is that some managers put more energy and attention into improving and optimizing the business development level of the enterprise, and lack the scientific understanding of internal control work; which also restricts the scientific and efficient development of internal control.
The internal control environment is relatively poor.
During the implementation of the internal control of the enterprise, to better optimize the overall application effect of the internal control, and at the same time to effectively prevent possible risks, it is necessary to fully and comprehensively consolidate the internal control work system and actively create a good internal control environment. The practice has proved that to maximize the implementation effect of internal control and to better improve the application quality of internal control, it is necessary to build a scientific internal control environment.
But at the current stage, there are big problems and deficiencies in the internal control environment in the process of implementing internal control. For example, in the process of implementing internal control, enterprises lack a scientific internal environment management model; which restricts the scientific and efficient development of internal control work to a large extent.
At the same time, the company has not refined the division of employees’ responsibilities and tasks; so the majority of employees cannot recognize and clarify their work responsibilities; and cannot fully devote themselves to the internal control work of the company. In addition, in the process of internal control, the enterprise lacks scientific cultural construction and atmosphere creation; which cannot truly optimize the internal control work effect of the enterprise; and it is even more difficult to effectively deal with the development risk of the enterprise.
The system lacks internal control;
In the process of continuous and rapid development of the enterprise, the scientific and efficient development of internal control work cannot stand separate from the improvement of the system construction and the refined system. Only by fully and comprehensively combining its development practice and continuously integrating the internal and external development environment, can the quality of internal control work stand better optimized, and the scientific construction of the internal control system can stand better promoted.
But at this stage, enterprises lack a good internal control system in the process of internal control. For example, in the process of building an internal control system, an enterprise does not fully and comprehensively combine its business development characteristics, or its own internal and external environment, but directly applies the formed internal control mechanism. It is impossible to effectively improve the overall application effect of the internal control system; and, it is difficult to improve the implementation of internal control.
For another example, in the process of constructing the internal control system of an enterprise, although the enterprise has also carried out the improvement of relevant systems, there is a big disconnect between the overall system and the development practice of the enterprise. healthy and sustainable development. In the practice process of enterprise internal control, only by fully and comprehensively improving the internal control mechanism can we better improve the level of risk prevention and fully optimize the quality of enterprise operation and development.
Lack of practicality in internal control activities;
In the process of continuous and rapid development of the enterprise, to better improve the effectiveness of internal control, and at the same time to better improve the level of internal control, it is necessary to create scientific internal control activities, especially to reflect the internal control activities’ practicality and authenticity. However, at the current stage, in the process of internal control of enterprises, the internal control activities lack the necessary practicality, and the internal control activities lack efficient normativeness.
These are not conducive to the scientific and efficient implementation of internal control work, nor can they promote the safe development of enterprises. For example, in the process of internal control, the company did not carry out all-round internal control publicity and education and popularization of internal control awareness, resulting in a general lack of efficient internal control awareness among relevant departments and various personnel, and they were unable to devote themselves to the practice of internal control management.
In addition, in the process of internal control management of enterprises; there is a lack of necessary tracking and management mechanisms, so problems found cannot solve quickly and promptly; which is also prone to breed hidden dangers to different degrees of development. It can stand said that the scientific implementation of internal control is mainly to solve the practical problems faced by enterprises; but, also to better improve the risk prevention and response capabilities of enterprises.
However, if the enterprise does not pay attention to the scientific construction of internal control activities; and, the effective implementation of internal control activities during the implementation of internal control activities; it will inevitably affect the overall application quality of internal control to a large extent.
Lack of perfect communication mechanism;
In the process of enterprise operation and development; the scientific and efficient development of internal control work is inseparable from a perfect communication mechanism. Only by relying on the means of information technology, scientifically and comprehensively improving; the effectiveness of communication and better guaranteeing the level of communication, can the development quality of the enterprise better improve.
However, at the current stage, in the process of internal control; the internal control communication mechanism is not perfect and refined enough. For enterprises, the internal control work is systematic and complex and requires efficient participation and comprehensive coordination of all departments of the enterprise.
Only in this way can the long-term development of the enterprise promote in an all-round way. However, at this stage, in the process of internal control management, enterprises have not built a complete information management system; nor have the necessary information and data sharing, etc., and lack a refined internal control communication system; which is undoubtedly difficult to amplify the core efficiency of internal control work; and it is difficult to promote the long-term and rapid development of enterprises.
In the process of carrying out internal control work; a lack of necessary and perfect communication mechanisms will inevitably lead to poor information communication; which not only affects the effectiveness of risk prevention; but also makes it difficult to optimize the scientific implementation of corporate development decisions. It affects the overall development level of the enterprise; and, it is difficult to guarantee the efficient and scientific development of the enterprise.
Build the internal control system of the enterprise and improve the thinking of enterprise risk management;
In the process of continuous and rapid development of the enterprise, to scientifically and comprehensively optimize; the risk prevention effect of the enterprise and continuously improve the risk response-ability of the enterprise; it is necessary to rely on a scientific and refined internal control system.
As the main body of the development of the market economy, enterprises should combine their own internal and external environment, and their business development characteristics, etc., to effectively build a scientific and refined internal control system, maximize the quality of enterprise development, and to better improve the enterprise. core competitiveness. The practice has proved that only by scientifically; and comprehensively building a sound internal control system can an enterprise better improve its risk prevention level.
In the process of enterprise operation and development, affected and restricted by the internal and external environment, enterprises often face more diversified risks. To better improve the effectiveness of risk management, and also to improve the level of enterprise development Scientifically and comprehensively build an internal control system; effectively improve the effectiveness of internal control management, and ensure the quality of business development to the greatest extent.
Enterprise Risk Management Framework Essay PDF Part 1; Image by Succo from Pixabay.
Analysis of Enterprise Risk Management and Macroeconomics PDF; Under the background of macroeconomic operation, with the continuous changes in the market environment; the risks faced by enterprises’ business activities are becoming more and more complex. Whether it can effectively manage and control the potential risks existing in its business activities based on the existing material conditions; and technical support has become a more concerning issue for enterprise managers.
Here are the PDF articles to explain, the concept of Enterprise Risk Management and Macroeconomics Analysis!
Risk management is the process of identifying, evaluating, evaluating, and controlling risks in the production and operation activities of various economic and social units. It aims to effectively manage the identified and evaluated risks through the optimization and combination of various risk management techniques. , control, to achieve the goal of ensuring the healthy development of the unit with the minimum cost and maximum. In the context of macroeconomic operation, with the continuous changes in the market environment, the risks faced by enterprises’ business activities are also becoming more and more complex. Whether it can effectively manage and control the potential risks existing in its business activities based on the existing material conditions and technical support has become a more concerning issue for enterprise managers.
Risk is the uncertainty between the purpose of production and the outcome of labor; and, there is no unified view in the academic community on the definition of risk. In American economist Frank Knight’s 1921 book “Risk, Uncertainty, and Profit”, Knight conducted a pioneering study of risk and proposed that “risk is a measurable uncertainty” This classic definition. There is a certain difference between this definition and the concept of risk at the general cognitive level. From the perspective of economic entities, no matter whether the uncertainty of risk is measurable or unmeasurable; there is no doubt that it is closely related to the loss of economic entities.
In addition, when different scholars define the concept and connotation of risk; there are problems such as different levels of cognition and different research angles; so there are certain differences in the conclusions, but they can summarize in the following viewpoints; Risk is a The uncertainty of the possible future results of an event; risk is the uncertainty of the occurrence of losses, and risk is the size of the loss; also, the risk is the size of the loss and the possibility of occurrence; risk is the result of the interaction of risk components. Risk management is a management process that minimizes the possible negative impact of potential risks during business operations or project development.
The “Enterprise Risk Management – Overall Framework” promulgated by COSO in September 2004 defines enterprise risk management as follows: Implemented by an enterprise’s board of directors, management, and others, applied to strategy formulation and throughout the enterprise, to identify potential matters that may affect the development of the enterprise, manage such matters, and bring them within the enterprise’s risk tolerance, and then serve the enterprise. The realization of development goals provides certain guarantees.
ERM framework;
According to the ERM framework proposed by COSO, enterprise risk management should include the following points:
First, risk management is a series of behaviors permeating the production and operation activities of an enterprise; and it is commonly found in daily management; second, management behaviors are caused by Personnel at all levels of the enterprise; who is responsible for implementation, and relevant managers need to take the overall goals of the enterprise; as the starting point to accurately identify the risks existing in business activities; thirdly, when formulating risk management plans; the top management of the enterprise needs to fully consider the risks of different strategies.
Related risks; Fourth, risk management should consider various business activities at the headquarters level; and from a global perspective to ensure that management behaviors run through the entire enterprise; Fifth, risk management needs to accurately identify potential risks that may affect the normal production, operation, and development of the enterprise. Based on various risk assessment and identification methods, the risk should control within the range that the enterprise can bear; sixth, the information and results obtained from the entire risk management activities should be able to provide the board of directors and management of the enterprise with relevant enterprise goals. realization of the guarantee.
The main types of enterprise risk;
For enterprise risk management in our country, relevant literature has concluded that the business risk of an enterprise can analyze from the perspectives of system risk and individual risk. In terms of system risk, uncertainties in policies, interest rates, market supply and demand; and purchasing power will all have a certain impact on the normal production and operation of enterprises. In terms of individual risks, the main risks faced by enterprises are the risks of capital value, opportunity cost, income cash flow, future operating expenses, time, and holding period.
Furthermore to the above classification methods, some opinions generalize the business risk of enterprises as policy risk (whether the macroeconomic regulation and industrial policy guidance issued by the state in the corresponding field will have an impact on the entire industry or a certain type of product or business), financial Risks (whether the enterprise itself has difficulties in capital turnover or bankruptcy caused by poor management and management), market risks (whether the products or services developed by the enterprise are marketable in the market, and whether they are competitive in the market), legal Risk (whether the enterprise has the risk of serious economic losses due to related contract traps such as fraud, breach of contract and infringement of intellectual property rights), team risk (whether there are employee conflicts within the enterprise, especially the core team, and the loss of excellent talents) Five categories.
Enterprise risk management under macroeconomic operation;
The management organization structure is not perfect;
In the context of macroeconomic operation, the implementation of enterprise risk management requires the support of professional talents in the final analysis, and a good organizational structure is an important prerequisite for ensuring the stability and good operation of the risk management plan, and also has a positive effect on the improvement of the enterprise risk management mechanism. For small and medium-sized enterprises, the leading layer of risk management is generally managers.
In addition to initiating risk management and strategic planning; it also plays an important role in the identification of business risks and the implementation of treatment measures. Under the background of the gradual deepening of modern enterprise management concepts and the frequent occurrence of enterprise risk events; although the management of most enterprises has realized the importance of risk management and related organizational structures; and has clarified the necessity of bundling the implementation of enterprise strategy and risk management;
However, in the practice of constructing organizational structure; many enterprises still face the problems of confusion of management structure; and unclear division of authority and responsibilities of internal management personnel. In addition, small and medium-sized enterprises have some deficiencies in resisting risks and building a sound management system. At present, the risk management of Chinese enterprises is facing more severe challenges.
Under the macroeconomic background;
The current defects in the design of the management organization structure of Chinese enterprises are mainly concentrated in the lack of independent risk management departments; the lack of standardized risk management system operating procedures; and the job responsibilities and attribution of personnel engaged in enterprise risk management.
The division of departments is unclear, and the topics that bear the corresponding risks are not clearly explained. In addition, due to factors such as imperfect organizational structure and lack of necessary constraints on risk management activities, the risk management practices of some enterprises are prone to the following problems: risk or risk event that has occurred, which is manifested as “inaction”.
Based on the above analysis, the lack of professionals who can undertake risk management responsibilities; the excessive pursuit of immediate interests in the risk management and control process; and the imperfect organizational structure are the main drawbacks of enterprises in managing the organizational structure; and they are also urgent problems that need to be solved.
Risk management stands separated from internal control;
Internal control is an important way for modern enterprises to govern the internal environment. At this stage, the theoretical circles have different definitions of internal control; but there is no doubt that internal control is the process of creating a reasonable guarantee for an organization to achieve its business goals.
According to the explanation given by my country’s Banking Regulatory Commission; the internal control system of a commercial bank is a systematic procedure, policy, or plan formulated and implemented by a commercial bank to achieve its operation and management objectives, to effectively identify and monitor relevant risks. , evaluation and control of dynamic processes and mechanisms.
Relationship between internal control and risk management;
From this level of analysis, there is a certain relationship between internal control and risk management:
First, internal control needs to drive by the correct identification and control of risks by enterprise managers, and is a necessary link for enterprises to achieve comprehensive risk management goals; second, Comprehensive risk management covers all elements and objectives of internal control. Linking enterprise risk management with internal control is an effective way to ensure the safe and healthy development of the enterprise.
In the process of practical attempts, the internal control of modern enterprises has gradually changed from the traditional concept of risk management mode that simply avoids business losses. Comprehensive risk management can create certain value and benefits. Because of the close connection between internal control and risk management, many enterprises have actively tried to reform their internal control.
However, as far as the actual effect is concerned, due to the influence of many factors; a considerable number of enterprises still fail to organically combine internal control and risk management in their management activities. Analyzing the reasons, it is mainly related to the lack of necessary awareness of risk control by managers in key positions in internal control and risk management activities and their lack of deep understanding of the connection between the two.
Suggestions on Strengthening Enterprise Risk Management;
Build a sound risk management system;
Under the current macroeconomic background, building the “three lines of defense” for comprehensive risk management is a management strategy adopted by most state-owned enterprises and other large enterprises in the construction of risk control and internal control systems. The “Three Lines of Defense” can play a positive role in the control of business risks.
For general small and medium-sized enterprises, relevant decision-makers can also consider starting from the aspects of clarifying leadership responsibilities, setting up full-time internal control positions, formulating feasible risk control strategies to implement a hierarchical and hierarchical risk management system, and then ensuring the entire risk control work. successfully launch.
From the perspective of internal control, the construction and improvement of the internal control system is an important part of the modern enterprise management concept. Strengthening the internal environmental governance of the enterprise and gradually improving the internal control system is the new development situation.
New requirements;
Because of the problem of “mechanism” in the construction of risk control system in some enterprises and the excessive reliance on the risk control experience obtained by other enterprises, the designer of the risk control work plan should start from three perspectives:
First, ensure that the audit department in the organizational structure of the enterprise Occupies; its due position and focuses on strengthening the authority and also independence of internal audit work.
Second, independent regulatory authorities need to take into account property risks and operational risks; and aim to improve the overall risk management level of the enterprise and improve the internal environment of the enterprise.
The third is to start from the vertical, supervise and manage the whole process of production and operation of the enterprise, and also pay attention to the evaluation of various potential events.
The existing management experience has also confirmed that starting from the three stages of pre-intervention, in-process tracking, and post-event evaluation; the potential risks of business activities can discover in time so that corresponding preventive measures can take; as soon as possible to avoid business risks faced by enterprises and enhance their ability to Social value.
Improve the risk management organization;
In the practice of enterprise financial risk control; a sound management organization is a basic condition for the entire risk control work. To ensure the smooth progress of the risk control work and the perfect combination of the risk control work; and other management activities, the management of the enterprise needs to attach great importance to it. Reasonable structure of management organization, especially for functional departments related to risk control work.
According to the actual requirements of risk control work, qualified enterprises should establish a management department dedicated to enterprise risk control services, and continuously improve the governance structure in the process of practice. From the perspective of improving the risk management organization, to improve the existing management structure; the management of the enterprise needs to recognize the importance of the members of the board of directors; and the board of supervisors independent of the general management organization in the enterprise risk control.
In addition, it is necessary to pay attention to the key indicators of the enterprise. In the process of production and operation of the enterprise; the key indicators refer to the financial risks that can be accurately reduced; and, then brought about by the key financial indicators of the enterprise in the process of preventing the financial crisis of the enterprise. capital utilization and capital turnover. At the same time, companies also need to have good credit; so that they can use corporate funds to gain an advantage in market competition and achieve more stable development.
Use financial instruments to achieve sound development;
Enterprise risk management is a systematic and dynamic supervision process; which involves the process of risk identification, quantitative assessment, processing, and supervision. It is a reliable way to promote the sound development of enterprises to comprehensively use the existing risk control methods to practice the functions of planning, organization, and control to ensure the smooth development of business activities.
In the practice stage, to ensure the quality of risk control work; in addition to considering the economy of risk control technology; and the relationship between risk control costs and operating benefits, relevant managers also need to use some tools and risk control strategies to scientifically conduct business risks. avoid. Taking the risk accident database as an example, to improve their risk control capabilities; some enterprises actively try to establish a risk accident database; to identify potential risks and also avoid similar events through the comprehensive analysis results of previous risk events.
From the perspective of application effects, the establishment of a risk event database can provide an important tool for early warning of business risks. In the financial industry under the influence of macroeconomics; the avoidance of operational risks has always been a key topic discussed the industry. Focusing on the theme of healthy and benign development, relevant companies have actively carried out practical attempts to improve financial planning capabilities and risk control capabilities with advanced financial tools.
For other enterprises, there is a view that entity enterprises should divide into three categories; production and processing enterprises, end customers, and traders. According to the differences in risk exposures faced by various types of enterprises in their operation and also management practices, corresponding financial tools should use to solve practical problems. Problems or practical difficulties can better help relevant enterprises to overcome the development difficulties.
Other things;
Under the development trend of diversification, internationalization, and financialization, Chinese enterprises are facing a certain crisis of innovation and development; which will inevitably increase the business risk of enterprises. To effectively deal with such risks, relevant companies urgently need to introduce reliable financial instruments to transfer risks in procurement, production, sales, trade, and other links.
Risk management is an important way to ensure the healthy development of an enterprise. It needs to improve promptly in combination with the theories; and, also methods of enterprise risk management under the current macroeconomic operation. However, judging from the current situation of enterprise risk management in my country; the relevant management needs to objectively analyze their shortcomings in terms of awareness and ability; also, pay attention to avoid problems such as excessive reliance on the risk control experience of other companies and advanced risk control technology.
On this basis, managers need to closely combine the characteristics of the enterprise; actively build a sound risk control system and organizational structure; and flexibly use the existing financial tools to help the enterprise overcome the difficulties faced by the risk control work.
Concept of Enterprise Risk Management and Macroeconomics Analysis PDF; Image by Wokandapix from Pixabay.
Standard Costing Accounting Essay with PDF; They stand a specialized expenditure technique in which standard costs stand predetermined, actual costs stand compared with these predetermined costs; and, the differences between the two stand monitored and analyzed according to their factors; to take corrective action to control the factors that lead to adverse differences. The standard calculation system, therefore, includes various steps – from setting standards to the definitive application of cost control.
Here are the articles to explain, What is Standard Costing Accounting? Its Definition, Advantages, and Disadvantages!
It refers to the determination or pre-quantification of the cost of a product, process, or operation under standard business conditions. It serves as an effective tool in the hands of management for planning, coordinating, and controlling various business activities. The business is undergoing a continuous process of growth; which stands carried out using the standard cost technique; because the standard costs stand set realistically, achievable, and change from time to time according to needs and requirements.
According to the Chartered Institute of Management Accountants, London, Standard Costing accounting is “the preparation and use of standard costs, their comparison with actual costs and the analysis of variances to their causes and points of incidence”. The definition given by W.W Bigg makes the concept of standard costing more clear. According to him, “Standard Costing discloses the costs of deviations from the standard and classifies these as to their causes, so that management is immediately informed of the sphere of operations in which remedial action is necessary.”
According to J. Batty,
“Standard costing is a system of cost accounting which is designed to show in detail how much each product should cost to produce and sell when a business is operating at a stated level of efficiency and for a given volume of output”.
Advantages of Standard Costing;
Standard costing accounting technique as a management tool is an aid in making predictions and providing Standards for measuring business performance. It helps the management in the following ways:
Formulation of Pricing and Production Policies;
Standard Costing helps the management to formulate pricing and production policies based on estimated costs to incur. Estimated production and its cost provide the base for pricing policy and profit planning.
Facilitates Delegation of Authority;
With standard costing, the Delegation of Authority can stand successfully implemented as top managers can delegate responsibility according to the standards fixed.
Facilitation of Principle of Management by Exception;
The standard Cost System works based on the principle of management by exception. Management needs to give concentration only on those areas where deviations occur, i.e., Actual performance is more or less than standards.
The yardstick for Comparison;
Standard Costing gives a suitable base for comparison of actual performance with predetermined standards. Standards can stand fixed for any element of cost e.g., material, labor, overheads, etc.
Optimum Use of Resources;
Standard Cost also helps in optimum use of resources. Different resources like raw material, plant and machinery, and current assets stand used according to the standards fixed in advance.
Uniform Valuation of Stock;
Under Standard Cost System, the valuation of the stock stands done at standard cost. The variance account stands open for transferring the deviations between standards and actual performance. This brings uniformity to the valuation of the stock.
Facilitate Coordination;
When standards stand fixed, the performance of various departments e.g., production, sales, purchase, etc., consider. In this way, standard costing enables coordination among all departments.
Effective Cost Control;
Standard Costing is an effective tool in controlling cost because actual performance stands compared with standards and in case of deviations, corrective action stands taken.
Economy;
In standard costing, standards stand fixed in advance. Once standards stand fixed development of cost, most of the clerical work reduce. Thus it is an economical method of costing and brings efficiency to production.
Motivates Employees;
When standards exist fixed Incentive schemes to motivate employees can introduce. Employees try to achieve the standards and they remain different monetary and non-monetary incentives.
Disadvantages or limitations of Standard Costing;
Some of the basic limitations of Standard costing accountingstanddiscussed below:
Difficulty in Fixing Standards;
Standards are difficult to set. If inaccurate standards stand set, they can do more harm than good to the business. Tight standards act as a disincentive to work and loose ones don’t provide any incentive at all. If due care stands taken and caution stands exercised based on scientific studies, correct standards may stand set. It is not that difficult. However, expert knowledge and skill stand required for fixing standards.
Estimation of Price Difficult;
Precise estimation of likely prices of material or rates of labor poses a problem. However, the use of sophisticated forecasting techniques can assist to a great extent.
Apprehension of Output Change;
Its actual output varies, and standard costs can’t realize. Again scientific techniques and market research largely solve the problem.
Out-Dated Standards;
Standards may become out of date very soon. Keeping standard costs up-to-date can be a major problem. It may not always be possible to change standards to keep pace with the frequent changes in manufacturing conditions. For solving this problem, an optimum period for keeping standards without revision should select. It would inspire confidence in the permanence of the measures and also avoid administrative inconvenience caused by continuous modification.
Not Suitable for Small Concerns;
In small concerns, production cannot stand properly scheduled since frequent changes in production conditions take place. Therefore, standard costing may not be suitable for them. Detailed analysis may be meaningless and superfluous for them. If an efficient system of production planning stands established, the difficulty can be overcome and even small concerns can adopt a standard costing system; though the advantages gained by them may not be that much as availed of by large concerns.
Costly for Non-Standard Product Industries;
Standard costing may be found unsuitable and costly in the case of industries dealing with non-standard products and repair jobs that keep on changing to customers’ specifications. If some of the operations applied to different products are common and repetitive, standards may be fixed for such components or operations with advantages. The cost-benefit analysis should however be made before installing a standard costing system. If the costs exceed benefits, no system can be recommended for adoption, not to talk of a standard costing accounting system.
Explanation of Variances Difficult;
Due to the play of random factors variances cannot sometimes stand properly explained and at times it is difficult to make a distinction between controllable and non-controllable variances. A toning up of the variance analysis system can obviate this difficulty.
Lack of Management’s Enthusiasm;
If the management is reluctant to implementation of the system effectively, the success of the system will be in peril. By educating management about the likely advantages of the system, management can stand made interested in effectively implementing the system.
Administrative Inconvenience;
Carefully planned and operated procedures, as required under this system in respect of the recording of prices, time, quantities, etc. might not have stood adopted. However, any effective planning and control system must have a foundation on which to operate.
Resistance from Within;
The staff may take it as a threat to their freedom of action, feeling that they stand being directed down to the last detail on how work should perform. It also requires proper education of the personnel of the organization.
Badly Designed System;
If the standard costing accounting system has not been properly designed, many problems are likely to crop up. Supposing is a concern, material costs are of vital importance whereas undue emphasis has been laid down on labor costs, the system would not bring desired results. The existing problems must be taken due care of while introducing the system. The rigid marshaling of effort within a factory is a fact of like which must be accepted. Without attention to detail, there would be great difficulty in achieving a high level of efficiency.
How do standard costs stand set?
Standards should stand set for the quantities and prices of materials, labor, and services to stand consumed in performing each operation associated with a product. Product standard costs exist derived by listing and adding the standard costs of operations required to produce a particular product.
Two approaches stand used for setting standard costs.
First, past historical records can stand used to estimate labor and material usage. Secondly, standards can stand set based on engineering studies. With engineering studies a detailed study of each operation stands undertaken under controlled conditions, based on high levels of efficiency, to ascertain the quantities of labor and materials required. Target prices stand then applied based on efficient purchasing to ascertain the standard costs.
How does a standard costing system operate?
Standard costing is most suited to an organization whose activities consist of a series of repetitive operations and the input required to produce each unit of output can be specified. A standard costing accounting system involves the following:
The standard costs for the actual output stand record for each operation for each responsibility center.
Actual costs for each operation stand traced to each responsibility center.
Also, The standard and actual costs stand compared.
Variances exist investigated and corrective action stands taken where appropriate
Standards stand monitored and adjusted to reflect changes in standard usage and/or prices.
What is the main purpose of variance analysis?
There are very few plans that turn out exactly as planned. Even when the overall objectives of the plan exist achieved, some, if not all components of the performance will have varied from the sub-plans or standards that make up the overall picture. For example, a football team may win an important game, as planned, but within the team performance; there may be many aspects that the manager will analyze during and after the match so that performance can stand improved for next time.
As in business, good points need to encourage, and less positive aspects need to exist discussed and corrected. In a game of football, a side may have won a high number of corner kicks, but conceded too many free-kicks in defending. There is little to stand gained for the next match if we do not think about the last performance in detail. Variance analysis provides a framework for business managers to break down the overall performance of an organization so that each element of the business can stand isolated and analyzed in turn.
What are the causes of labor, material, overhead, and sales margin variances?
Quantities cost variances arise because the actual quantity of resources consumed exceeds actual usage or vice versa. Examples include excess usage of materials and labor arising from the usage of interior materials, careless handling of materials, and failure to maintain machinery in proper condition. Price variances arise when the actual prices paid for resources exceed the standard prices or else. Examples include the failure of the purchasing function to seek the most efficient sources of supply or the use of a different grade of labor to that incorporate into the standard costs. How to calculate material, labor, variable overhead, fixed overhead, and sales variances.
The automobile company Volkswagen and Porsche Case Study with PDF for Corporate Merger; The German Dr. Ing. H. C. F. Porsche (Porsche) automobile manufacturer specializes in sports cars and a new line of all-terrain vehicles. In the mid-2000s, Porsche stood recognized as a leading global brand for its consistent quality and cultural icon status with models including the 911, the Boxster, and the Cayenne.
Here are the articles to explain, the automobile company Volkswagen and Porsche Case Study for Corporate Merger PDF!
The company achieved strong financial performance cementing Porsche’s market dominance. Porsche’s operating profit increased from 1,204 million in 2002 to 1,832 million in 2006, representing a growth rate of 52.1%. The net profit of the company also increased to 1,368 million in 2006, an increase of 74.8% over 2005. One of the central elements of Porsche’s business model is its low manufacturing depth; which means that it does not have huge centralized production plants. Many building processes stand outsourced while Porsche concentrates on its core competencies of development, engine production, quality control, and sale of vehicles. This allows Porsche to keep trim and agile in the luxury market. Volkswagen AG is a manufacturer of passenger and commercial vehicles.
The group markets its vehicles under the following brands; Volkswagen passenger cars, Audi, Skoda, SEAT, Bentley, Scania, and Volkswagen commercial vehicles. A strong brand portfolio enables Volkswagen to provide a competitive advantage over its peers. Leading market position enhanced the brand image of the group and held investors’ confidence. In 2007, the group increased the number of vehicles delivered to customers to 6.2 million, corresponding to a 9.8% share of the world passenger car market. However, rising raw material prices threaten the margins of the group by increasing its operating costs.
What are the reasons Porsche takeover Volkswagen?
The Underlying Reasons Why Porsche Attempted to Takeover Volkswagen;
With the protection of Germany’s 1960 “VW Law” that long shielded Volkswagen from takeover, no matter how poorly it performed. VW’s 174,000 workers exerted a huge influence over management through their Labor Union; which focused on protecting jobs at the expense of efficiency. The German state, with its 20% share, typically sided with labor over the years; because they were reluctant to restructure VW’s inefficient operations and eliminate jobs.
With governing bodies that cared more for jobs than future growth, VW became increasingly inefficient and entered the 21st century with a bloated workforce, the highest manufacturing costs, and the shortest workweek [32 hours] in the global automotive industry. Evidence of just how unruly VW had become erupted in a 2005 scandal when evidence stood revealed millions of dollars in funds granted by management to bribe union leaders for their support.
The funds stood used to pay for pleasure trips, parties, and others. After being carried for many news cycles, several managers have pleaded guilty to paying off labor officials and have been fined. In the mid-2000s, VW was palpably vulnerable, but why a takeover bid? Why would the world’s most profitable automaker sink billions into mass-market VW with its debilitating cost structure, strong unions, and weak profits?
A closer look reveals that Porsche moved to take VW for their technology development and keep access to a production ally. In effect, though Porsche was financially stronger, it needed VW more than VW needed Porsche. Only about 20% of what makes a Porsche a Porsche-largely the engine and transmission stands made by Porsche workers. The rest exists outsourced, mainly to VW. Porsche co-developed the Cayenne with Volkswagen, sharing parts, production, and development costs.
More reasons;
The joint development and outsourced production help fuel Porsche’s profits by keeping its fixed costs and capital investments low. In addition, the planned integration of Porsche into Volkswagen and the associated, closer cooperation will realize significant synergies on both the income and the cost side. Both companies could focus on finding synergies for such items as electronic architectures and engineering work on future vehicle circuitry platforms and common parts such as air conditioning.
For Volkswagen, the merger benefits are clear — protection against a hostile takeover. It may also get a lift from Porsche’s image and well-regarded management. VW needs help. With profits of 484 million on sales of 55.4 billion in the first half of calendar 2005, VW’s profit margin is less than 1%. Volkswagen has 15 times the annual revenue of Porsche-but Porsche’s profit margins are seven times bigger than VW’s.
VW was a gold mine for Porsche as they envisioned the future demand for products designed by Porsche but co-produced by Volkswagen. Porsche focused on a particular type of luxury product and VW ran stables of brands producing across many segments. With the threat of materials costs shooting through the roof; Porsche was looking for ways to turn threats into opportunities and garner some serious market power. VW was a goldmine. The only thing that Porsche would have to do was dig day and night.
Strategy to Gain Control;
Porsche utilized pure financial leverage combined with speculation to attempt to gain control over VW. All of these actions existed not done in complete secrecy; but, the information fed to the public was a time in a very strategic way. On the open market Porsche accumulated shares in VW and accompanied; these actions with simple and believable statements that they were merely trying to secure VW as a partner company in the development of different platforms of cars.
Porsche made statements to the effect that they existed not interested in owning VW; but, merely had a vested interest in the continued cooperation of the two companies for joint ventures. Simultaneously and not so publicly Porsche bought options on VW stock by paying a fee to be able to purchase VW shares at a given price sometime in the future. These types of transactions are extremely common in financial markets; however, the extent to which Porsche did this was tremendous.
In the end, they had accumulated these options to such an extent that they had the right to purchase nearly every free share on the market. Before this information was public, it had little effect on the share prices. However, when Porsche went public with this information, market forces went to work. The financial institutions that had sold these options to Porsche had done so “short” meaning they did not own the shares.
More control;
When these institutions learned of the situation they realized that Porsche would exercise these options to attain 75% of VW; and, they would force to buy VE shares on the open market and sell them to Porsche at the lower agreed price. This resulted in the institutions rushing to purchase all available shares to minimize their losses when Porsche exercised the options. The accumulation of the options and the resulting profits from exercising; these options certainly emboldened Porsche to press for an ever-larger stake in VW.
With stable financing in place, Porsche could have essentially bought 75% of VW; with the government owning 20%, and only 5% of the share would be public. Stable financing and overall economic conditions that existed during the final push for shares severely stressed the financial capabilities of Porsche. As a result, the hostile takeover attempt has morphed into a merger offer. Additionally, the legal battle with the state of Lower Saxony continues. The VW law continues to be an obstacle to the voting right of all other shareholders.
Impact of the Attempted Take-Over on Stock Prices;
The most striking result comes from a comparison of the two company’s stock prices at the beginning of this period and the ending relationship in stock value on a percentage basis. The most divergent area in October of 2006 was the direct result of the secretive accumulation of options on VW stock by Porsche. As stated above the announcement by Porsche that essentially has claims to all the remaining VW shares on the open market sent investment banks scrambling.
These investment banks were the ones that were short VW shares; and, essentially could have the options put at them resulting in huge losses. The attempt to cover all the outstanding options drove the share price of VW through the proverbial roof. As it stands on June 25, 2010, the share price of Porsche is 36.04$ as compared to a share price of 94.04$ on September 3, 2008, the earliest date available on Yahoo Finance.
This represents a 62% decline in the value of the company. During the same period, VW shares have gone from 199.52$ to 79.01. In essence, this merger has been completed although outstanding issues remain. During this attempted takeover now turned merger over 50% of the market value of the two companies has been lost.
Initial Merger Proposal and the Final Outcome;
The saga of the Porsche-VW merger began with an attempt by Porsche to secure production agreements with VW by acquiring a 31% share, which, along with the government’s 20% share, would make VW unassailable by threats from outside interests. Whether or not this was the actual intent of Porsche or a disguised initial play to gain control of VW is unknown; but soon after, Porsche began a run to obtain up to 75% of VW, ending up with 51%.
Having gained control, Porsche still faced three obstacles:
Germany’s prevailing “VW Law,” limits any shareholder’s voting rights to 20%, regardless of the number of shares they own.
a large amount of debt they shouldered in the acquisition process, and.
suspicions about the foul play during an options deal on VW stock where Porsche made millions.
One of these obstacles was overcome when the European Commission ordered Germany to repeal the VW Law because it restricted the free flow of capital, but the debt proved to be overwhelming, in part due to the recession and the difficulty firms faced obtaining capital at reasonable rates, and Porsche was forced to turn to VW for help. This was the beginning of the final merger process, which, as of today, is still incomplete due, in part, to lingering suspicions about the options deal.
Although not set in stone, as it stands, VW owns 49.9% of Porsche while Porsche owns 53% of VW, Qatar Holding owns 10% of Porsche and 17% of VW and the government of Lower Saxony retains its 20% of VW. The Piech and Porsche families, the founders of both companies, own about 40% of the merged company and Porsche’s CEO and CFO, the guys who engineered the options deal and the takeover bid, and who turned Porsche into a profitable company in the first place, have resigned.
Costs and Benefits for both Volkswagen and Porsche;
Highlight both Costs and Benefits for both Firms under the Proposed Merger;
The benefits of the merger are that VW’s operating profit is expected to increase by 700 million euros a year, Porsche engineering may boost the appeal of VW’s more expensive models, and the “platform” system of cutting costs by using standard parts for multiple car models will be expanded as Porsche lines are integrated into VW’s stable. Another benefit, which may not be a benefit so much as a bragging right; is that an expansion of VW brings it that much closer to becoming the world’s biggest carmaker.
Finally, and although not directly tied to the merger an issue; that gained additional attention from it, is the EU-ordered repeal of the VW Law. Porsche’s former boss, Wiedeking, was looking forward to changing VW’s culture from a socialized, semi-protected concern to a capital-efficient machine-like Porsche, and if VW does indeed become more competitive in the global market as a result of the merger or the repeal of the law they could see an increase in profits.
Part 01;
In contrast to the more speculative nature of the merger’s benefits are its costs. At the top of the list is the debt load acquired by both companies during the process, particularly Porsche; which racked up 12 billion when it was buying VW stock. During the merger, Porsche has been losing billions due to costs associated with combining with VW. In the second half of 2009, Porsche’s net income dropped by 83% and is planning to raise 5 billion through stock issuance.
Porsche’s exposure in the options lawsuit has expanded to nearly 2 billion. For its part, VW is paying 3.9 billion for 49.9% of Porsche and is selling 135 million preferred shares in the next few years to cover some of the cost. Meanwhile, both VW and Porsche seem to be counting on increasing sales in Brazil and China to cover those debts.
Secondly, there is the tension created by putting the competing brands of Audi; Bentley, Porsche, Bugatti, and Lamborghini under the same, corporate umbrella; a move that should naturally result in a reduction in the number of models offered and price increases in the luxury car market.
Finally, there is also the issue of management to consider. Porsche was the world’s most profitable, small carmaker when the process began; and its initial steps to acquire VW shares were motivated by that company’s weakness. Now with the merger, the new company is larger and more debt-ridden; and VW’s leadership will be taking over Porsche rather than the other way around. In essence, a larger, weaker company has absorbed a smaller, stronger one; and while Porsche seemed to have a strategy of turning VW into a more cost-efficient and profitable company; VW is merging with Porsche only because it can, or must.
Part 02;
On paper, with its 53% share of VW, Porsche seems to have control, since VW only owns 49.9% of Porsche. However, Bloomberg is reporting that “Volkswagen AG considers naming Matthias Mueller; its chief product strategist, to run the sports-car maker (Porsche)”; which is a strong indication that VW is calling the shots and supports the frequent descriptions of VW’s “reverse take-over”. However, the reality is that the ownership of the two companies is so closely tied; that it is easier just to say they remain under the control of the Piech and Porsche families; with large portions held by Lower Saxony and Qatar.
There are so few shares left available that VW’s ordinary shares might remove from the German stock exchange. As previously stated, we don’t believe that the merger was particularly worthwhile because the costs involved outweigh the benefits. Certainly, the 2008 recession exasperated the cost involved because Porsche’s access to cheap capital became harder to come by. It racked up more debt acquiring VW stock than it would have a year or two earlier. In this sense, Porsche choose a poor time to embark on an aggressive, financial maneuver; and VW, who performed their own “reverse take-over” later on, did so in the same environment.
Part 03;
New car sales were down globally in 2008; and the general reduction in sales should’ve affected both companies equally, making it a moot point. Although it isn’t explicitly mentioned, Porsche should’ve suffered more in the recession; because they only sell luxury products, a category of goods that is very elastic about income levels. VW, in contrast, has a wider variety of products, including more affordable cars; which might help to keep them afloat as sales of their many luxury brands fall off.
Rising oil prices shouldn’t be that important to VW or Porsche. Owners of luxury cars that sell for more than 100,000 don’t blink if the cost of gasoline goes up; so, Porsche sales should unaffected. VW’s luxury models should also see the same effect. However, VW should see a short-term drop-off in sales of their affordable, high consumption models like their SUVs; but partially make up for that drop-off in increased sales of more fuel-efficient models; although those tend to have smaller profit margins.
Volkswagen and Porsche Case Study for Corporate Merger PDF
Case Study of Toyota Supply Chain Management PDF, Logistics, and Operations Management Essay; This essay aims to analyze several issues regarding the operations management, logistics, and supply chain of the Toyota Company. The origin of the company comes from the Japanese textile industry. Sakichi Toyoda invented the world’s first automatic loom in 1918. When a problem arose, the machine automatically stopped to prevent damage to the entire facility.
Here is the article to explain, the Toyota Operations Management PDF, Logistics and Supply Chain Management, Case Study with Essay!
This principle of automatic shutdown of the system and to draw attention to the imminent problems suggestively called the Jidoka; they have remained one of the main factors of Toyota Production system to this day. Operations management deals with managing resources like people, information, materials, and technology. In addition, it is important to specify that Operations Management transforms inputs into outputs by creating value of goods and services.
Sakichi’s son – Kiichiro has developed the AA model in 1936 and one year later theToyota Motor Company was born. In the ’90s, the process that includes not only the internal; but, also the external functions that contribute to the supply of a product to the final customer existed known as Toyota Supply Chain Management PDF download. “Toyota aims to connect cars, people, and communities and thereby create a smart mobility society that offers freedom of movement, safety, and excitement for all”.
Managing Quality;
Quality has many meanings for everyone. When a certain product/service meets a customer’s needs it can consider that it was a quality product or service. Organizations that use TQM have several advantages. For example, the customers are more satisfied, the products have higher net quality, the costs are lower, the financial performance is improved, and the quality and innovation are improved. Although Toyota was four consecutive years number one in the world carmaker as stated on bbc.co.uk; “from 2009 has millions of recalled cars due to accelerator pedal, brake, seatbelt and exhaust problems”.
According to express.co.uk, over 2.4 million hybrid cars were recalled by Toyota all over the world of which nearly 55,000 were in the UK. Therefore, the cars are recalled because of the software; because it is possible, for the vehicles to enter a driving mode; that would affect the safety conditions, and the power of the engine will be lost, and it will stop. The recalls are from May 2010 to May 2014, Toyota Auris, from October 2008 to February 2014 was Toyota Prius and from October 2011 until November 2014 was recalled Toyota Prius Plus. Toyota UK told BBC that Brexit without an agreement could temporarily stop its production at the Burnaston plant in Derby.
Examples;
The Japanese producer is one of the largest car manufacturers in the UK. About 150,000 cars existed produced last year only in Burnaston, and 90% of them were for export to the European Union as stated on bbc.co.uk; The Founder of Toyota, Sakichi Toyoda established five main principles: to always be faithful to the duties in the workplace; thus contributing to the good of the company but also to the general good. Be always creative, striving to face the challenges that appear with the times. always be practical and avoid being superficial. Try as much as possible to build a pleasant workplace atmosphere and be friendly with everyone around you.
You must always respect people with different spiritual beliefs and not forget to show gratitude At Toyota; the infrastructure is fast becoming a key instrument in developing; their future with a big step by developing the Toyota Mirai. More than twenty years ago, Toyota introduced hybrid technology with the first such car- Prius. With the hybrid technology, another innovation came up called Toyota Mirai. Toyota’s fuel cell electric car works on hydrogen gas made from renewable sources and emits only water, having a smaller impact on our planet; but at the same time, it stands made to leave a special impression for every trip. In the UK there are now just eleven gas stations with many more in perspective.
To reduce the impact on the environment, Toyota uses the 4 R’s: Reduce – by using fewer resources will result in less pollution, Reuse – any surplus of materials including parts of an old vehicle, Recycle – materials for helping to make new cars and Recover – minimize the amount of waste. Toyota is a good example of global operations management.
Operations Management;
Toyota Motor Corporation’s operations management (OM) has implemented ten factors for the operations to be more effective. These ten decisions involve different fields of activity and require certain strategic approaches. Design of Goods and Services. Toyota takes into consideration these operations of management with advanced technology and high quality. Some of the company’s investments go to research and development. Because quality is a key factor in the company, Toyota developed a program called Toyota Production System (TPS). This exists used now by many other companies who want to apply Quality Management in their system. The Design of Process and Capacity is the next factor developed by Toyota. In this decision area,
Toyota uses lean production, which exists also incorporated into TPS. The company focuses on both waste minimization and efficiency of capacity utilization. The Location Strategy. The company has extended not just in the United Kingdom but also in China, the United States, Thailand including some countries from Africa and the Middle East. Design and strategy of the model. The design of the model in Toyota’s production plants emphasizes the maximum efficiency of the workflow including the principles of lean manufacturing.
Supply Chain Management;
The company has created its own rules regarding operations management that focus on people respecting others. This call The Toyota Way which exists also integrated into the HR system. Apart from that, Toyota offers different pieces of training based on their Toyota Production System. Supply Chain Management, “Toyota uses lean manufacturing for supply chain management”. Toyota Supply Chain Management PDF Essay, In this strategic decision area of operations management, the company uses automation systems for real-time adjustments in supply chain activity. In this way, Toyota minimizes the bullwhip effect in its supply chain. Inventory Management.
In addressing this strategic decision area of operations management, Toyota minimizes inventory levels through just-in-time inventory management. The aim is to minimize inventory size and its corresponding cost. This inventory management approach stands covered in the Toyota Production System. Scheduling. Toyota follows lean manufacturing principles in its scheduling. The company’s goal for this strategic decision area of operations management is to minimize operating costs. Maintenance. For decades, Toyota developed a network of strategically located facilities to support its global business.
Measures;
The company also has a global HR network that supports flexibility and business resilience. Thus, in this strategic decision area of operations management; Toyota uses its global business reach to ensure optimal and stable productivity. Toyota’s operations management uses productivity measures or criteria based on the area of business considered. For instance, some of these productivity measures are as follows:
Number of product units per time (manufacturing plant productivity)
Revenues per dealership (Toyota dealership productivity)
Number of batch cycles per time (supply chain productivity)
Supply-chain management at Toyota is an element of the company’s operations strategy; which is thoroughly based on the Toyota Production System (TPS) Toyota Production System Toyota’s production system has existed designed to meet the following criteria; Quality – to ensure high quality of the finished product, it must be present at every stage of the process; Cost – costs and wastes must exist kept to a minimum level in every aspect of the business; Delivery – the TPS process is based on the timely delivery of both products and processes TPS is a method that reduces the time between customer orders and vehicles delivery. To achieve this, the entire operation until delivery is done in a single continuous flow. The result is a much higher level of productivity, less time, money, and effort, and better quality.
Just in Time;
Although JIT existed discovered by Henry Ford, just to manage inventory in his company, in the early 20th century; the one who used JIT as a management strategy, was Taiichi Ohno in his company, Toyota Manufacturing Company. The elements of the just-in-time system are being proactive in exposing problems, pulling production based in Kanban; Total Quality Management, elimination of waste, reducing inventory; involving suppliers in the planning process, continuous improvement, improving machinery, and focusing on co-operation.
Capacity planning in any company is part of supply-chain management for that specific company. Toyota’s way of capacity planning is that it strives to eliminate inventory. In achieving this objective Toyota relies heavily on a pull system. Generally, the main objective is continuous improvement. Just in time inventory management allows a company to gain a competitive edge by not having to have a large amount of inventory in their warehouses; but, only to order parts when they need. According to just in time philosophy new material will produce only; when the old stock of that material has finished.
With over 10 years of development experience, General Motors, in 2017, laid the foundation for vehicle-to-vehicle (V2V) communications, a program that could reach Toyota too in the coming period. The Japanese also announced that they intend to develop this V2V technology; as well as that of the vehicle for infrastructure (V2I) in the United States from 2021; with the idea of implementing it to all models by 2025. V2X is another technology that Toyota wants to implement.
More to know;
This is a combination of V2I and V2V based on communication with other traffic participants, like pedestrians or cyclists. Toyota intends to use as well DSRC (Dedicated Short-Range Communications) technology between cars and trucks with the help of wi-fi. In the U.S. the federal communications commission has set aside spectrum in the 5.9 GHz band for connected transportation. Through V2V communications, vehicles can share a range of information about current conditions that can expand the situational awareness of drivers.
For example, if the ABS or stability control of a vehicle detects slippery conditions; it can broadcast a message to alert drivers that are following on the same road so that they can slow down. A car approaching a blind intersection can broadcast its position to cars coming from other directions. As roadside equipment exists deployed, the messages can also receive by traffic management systems or those systems can provide vehicles with alerts about when signals are going to change. An area of the green tourism model that has lately advanced impressively, both in terms of take-up and knowledge of its sustainability features, is the sustainability of supply chains and procurement.
There has been considerable science lately that has existed applied to defining the life cycles of products; to measuring the energy and resources that go into manufacturing and transporting products; as well as the carbon and other GHGs that exist emitted at all stages in the life cycle of a product. The UK government’s Office for Low Emission Vehicles (OLEV) announced the availability of £400 million in funding to assist measures designed to promote uptake of ultra-low emission vehicle technologies such as electric, plug-in hybrid, and hydrogen-fuelled vehicles.
Case Study of Toyota Supply Chain Management PDF, Logistics, and Operations Management Essay; Image by WorldInMyEyes from Pixabay.
Case Study of Nestle Supply Chain Management PDF Essay with 4 Project; Supply chain management has gained its importance in serving business operations and being part of the strategic management of the business. Its role has stood shifted from being a support department to being the core department of business with strategic importance and role to play in the overall operations of the business. In a modern business world, no organization can sustain itself without having well-established, effective, and efficient nestle supply chain management. The role of vendors along with vendor management with the introduction of information technology is an important consideration for organizations.
Here is the article to explain, the Nestle Supply Chain Management Case Study PDF Essay with 4 Projects!
Nestle Supply Chain Management Case Study PDF download; Now with the increase of strategic importance of supply chain management the service provider is now becoming a partner to the organization, rather than being just the vendor. The factor influencing the competitive advantage of the organization is now having better vendor management and vendor relations in the list. Therefore in the coming years, the importance of supply chain management stands expected to increase with the increase in competition and globalization.
To understand the strategic nestle supply chain management case study pdf, key concepts, and use of information technology to maintain vendor relationships; this report presents one of the leading FMCG companies Nestle. Their products range is wide and the concentration of this report is on the organization’s Pakistan operations. Since Pakistan is part of their global supply chain operations but for their milk products; they have to rely on the local milk suppliers who are not very much educated and well equipped. Therefore managing them is a challenge for the organization; and, the same challenge and its handling is under study in this report. There are some recommendations also given at the end so that improvements can exist made in the local supply chain.
Project Part 01;
Current Supply Chain Strategies in Nestle;
In these lines, I shall be looking at the supply chain management of Nestle Pakistan’s operation and would not be discussing the global supply chain management of the organization. The organization has remarkable production facilities in the country; and, they have also enjoyed a healthy market share for the last few decades. One of the reasons for the success of the organization is its vendor management and intelligent distribution system.
The market in Pakistan stands mostly dependent upon the distribution network and the same has existed managed by the organization in recent years by having excellent relationships with their channel members and logistics. Their distribution network makes sure that every product exists distributed in the required areas at the required time and the demand and supply do not have any gap. Their distribution setup exists synced with their production system therefore they do not have to manage the inventory of the product for a longer period. This strategy has saved the organization on the financial side moreover they have been able to provide the product to the market at demand.
The second side of their nestle supply chain management is their vendor management, they have applied the just-in-time management concept in their raw material procurement and vendors are very well synced with the procurement, and procurement exists synced with the production and other support departments. This just in time management has also saved the organization the inventory management cost of the raw material and they can maintain a very low level of the inventory. Their vendor exists also required to make sure that their raw material reaches the organization on time.
Use of IT to Maintain Vendor Relationships;
Information technology is serving organizations to manage their business operations in different ways; the same concept can also exist applied to manage vendor relationships with Nestle Pakistan’s operations.
The organization can design a procurement network that stands integrated with the various departments of the organization. And the procurement department can have information technology-based applications that also integrate with the systems of the vendors and exist automated. By using this system organizations have the concept of just in time management applied in full spirit and the vendors will also be aware of the production schedules of the organization and they will be able to plan their delivery and their production planning according (Hugos, 2006).
The above-mentioned scenario will make it easy and convenient for the vendors to do business with the organization; and, they will have better relationships with the organization and will continue to do business with them. By having these relationships with the organization they will be able to be partners of the company.
Project Part 02;
The assistance of IT in the Supply Chain;
The use of information technology can assist a great deal in the management of the supply chain in the case of Nestle Pakistan operations. In the global supply chain, nestle is making use of supply chain management tools that exist supported by the latest technology available. These tools can integrate different parts of the supply chain that includes the just-in-time management of raw materials, automation of order generation to vendors and the logistics of raw material from a vendor to the warehouse, and the distribution of the finished goods to the different channels.
Previously all the above-mentioned parts of the supply chain existed disintegrated or in some organizations, these parts stood partially integrated. Now information technology has made it possible and easy to manage all these parts of the supply chain from one terminal and these parts and integrated with more automation. An example of this integration is simple, once the inventory level reaches the pre-defined minimum for the raw material at the production facility, then the order management system which stands connected to the inventory management system, automatically generated orders to the pre-defined vendors. The order receiving systems of vendors stand connected with the procurement systems of the organization.
After the vendor stands intimated, they manage to supply the required stuff and required quantity to the organization’s warehouse; which exists already intimated for the order delivery. All this process exists done via an integrated system which calls ERP. The application of these information technology tools makes the organization able to save their time and management resources and make the vendor the partners of the organization above all this usage of IT bring automation in the processes which is the requirement of production-oriented organizations.
Effectiveness of IT in Management of Supply Chain in Nestle;
When we talk about effectively using the information technology in the Pakistan market with local vendors; we see that our case company has been able to improve a lot in recent years. Since the market of Pakistan is still in the developing phase and modern management; and, information technology practices are yet to exist adapted in this market. Since Nestle for their business requires a team of vendors that can provide timely supplies; therefore they had to work hard to induct the modern practices in their supply chain about the market conditions.
Apart from the current IT tools to help the organization gain the best out of Nestle supply chain management case study pdf; there is a function in which information technology; and, its use can play an important part in the management of the business, and which is still to exist explored. This area is related to the supply chain management of their milk products. For their milk brand which exists called “MILK PAK,” they need to collect the milk from farm and village areas of the market as the milk production stands mostly done in the rural areas of Pakistan.
Their milk collection process exists done on daily basis and it is still on a manual basis. There can be the use of information technology by using this they can maintain the database of their milk vendors which are small, geographically distributed, and dispersed in locations. Moreover, they can also use information technology to locate their collection van using global positioning systems and install trekkers in them so that they can make sure the safety of the milk and the vans.
Project Part 03;
Role of Logistics in Supply Chain;
Logistics has an important role to play in the overall nestle supply chain management of any organization. Logistics are the activities that stand designed to keep the goods or services moving from one destination to the other destination. This movement of goods or services can be related to the raw material needed for a production setup, and its movement would be from vendor premises to the organizational premises this movement can also be related to the movement of the finished good from the organizational production facility to the channel member facility.
In the overall management of the supply chain, the logistics part has its importance. Since the production-oriented business is all about timing. If the raw material is not available to the production facility then the whole production cycle will get disturbed; and, similarly if the finished good exists not reached to the channel members; then they will not be able to distribute it on time and the result will be the complete failure of the business plan.
Consideration for any organization would be to have the logistics set up planned and implemented that is consuming less cost of operations; moreover, which stands integrated with the supply and demand channels of the organization. The ability to design such a logistics setup helps the organization to achieve its supply chain objectives by putting a minimum cost to it. The success of any supply chain management is dependent upon the design of logistics, the smarter the design; which can serve maximum in minimum cost the better the performance of supply chain roles will be. The focus of our case organization is to design a global logistics channel; that can satisfy global business needs at minimum costs. And they have been able to handle this challenge smartly.
Evaluation of Procurement Practices in Nestle;
Procurement practices in Nestle global, as well as Nestle Pakistan, exist streamlined and working on smarter management concepts. It would not be wrong to say that one of the success factors for their profitability in Pakistan is their vendor relations and smart procurement. Nestle Pakistan has to procure different good and services from different kinds of vendor for their operations; these good ranges from the raw material for their finished good; as well as the supplies for the support departments like marketing. The overall philosophy of Nestle Pakistan procurement is to focus on quality as well as business efficiency.
When we talk about the milk production of the case company then we see that the procurement of the milk from different villagers that exist spread across Pakistan is a challenge and the organization has been able to cater to this challenge very well. The important factor in the procurement of raw milk is to make sure that milk is pure, hygienic, and fresh. These things stand made sure by designing a well-established vendor network that is responsible for the procurement of fresh milk upon the above-mentioned properties.
Their procurement department has selected reliable and quality vendors that include small to medium-sized diaries that provide quality milk to the company. Also, Their procurement department makes sure that the milk is fresh, hygienic, and above the standards defined by the organization. Their logistics have made sure that the fresh milk reaches the production facility on daily basis. The same care and quality consciousness have existed practiced in other procurement tasks; and in short, we can say that procurement processes at the organization are of high standards.
Factors for Improvement in Logistics & Procurement;
Several factors are to exist considered when organizations go for reviewing and improving their logistics and procurement. The first factor that is to exist taken care of is the bargaining power of the suppliers. The higher the bargaining power of suppliers the higher will be the requirement for the organization to maintain; and, build good relationships with their suppliers. In industries where such power is with suppliers, organizations have to design their procurement process; which is supplier friendly and encourages the organizations to have good friendly relationships with their vendor; focusing on making them their partners in business and getting the competitive edge out of it.
The second factor which is to exist taken into consideration is the cost factor; the procurement and logistics can be costly to the organization if not designed creatively. The logistics are costly when their inbound and outbound management exists not done in the way to maximize productivity. Therefore when organizations design the procurement and logistics process; they should keep in mind the cost of procuring the goods and services along with the distribution cost of the good should be minimum. These costs include the time and resources costs as well.
Another important consideration is related to the integration of procurement and logistics with the rest of the business operation. Organizations when improving these processes should also make sure that the maximum integration is possible with other departments like production. They should be working on the automation of the processes that should manage by the single hub. This way the costs of operations will be minimum and automation and integration of all the operations will save time and increase efficiency in the business processes. They should also make sure that integration also includes the vendors.
Project Part 04;
Strategy for the Improvement of Supply Chain;
Presented below is a brief overview of the strategy that can exist used to improve the supply chain management of the organization. The focus of the strategy is to improve the supply chain management of Nestle Pakistan’s operations. While reviewing this strategy it should exist kept in mind that Pakistan is a developing country; and, their vendor management and logistics operations are being run on old school management. The mentioned below points are focusing on vendor management and to increase the use of information technology to bring overall improvement.
First of all the organization should work on vendor relationship management; up till now the balance of power was with the organizations in the Pakistani market; but, with the introduction of the global economy and open market more players are entering Pakistan, and now the importance of vendors is increasing. Keeping this view in mind Nestle should be working on increasing the organization and vendor integration and they should exist made business partners. This can exist done via having automation and integration with vendor systems; and simply keeping them motivated to be partners with the organization.
The second improvement which exists required is to start the use of information technology in their supply chain management process. Up till now, the organization is using the information technology internally; but they have to move out and make their vendor also use this tool. One can argue that current vendors are not that advance in using technologies; but, I would say that organizations would have to educate; their vendors and make them part of their organizational process; this way they will be able to achieve a true partnership; with their suppliers and the operations of the supply chain will improve a great deal.
Benefits of Improvement to Business Operations;
The improvements suggested above have different benefits to the organizational business operations, these benefits range from operation to strategic benefits. The first benefit that organizations will have is that; they will have a strategic competitive advantage by partnering with the suppliers of the raw material of their products. The business era is changing the market and now other players are also entering into the same market; now the competitive advantage will be with the organizations; which have a strategic partnership with their suppliers as well. The increases in the competition have also made the suppliers aware of their important role; and, they are also feeling the shifting balance of power. So it will be advisable to make the partnership before others do.
The second improvement is related to the use of information technology in supply chain management; and, it has many benefits for the organization. First of all the organization will be able to achieve the integration between different departments playing their part in the value chain. Once this exists done it will save time and financial resources to the organization; as the processes will streamline and efficiency will increase. The second benefit of the IT usage will be that vendors and suppliers can also make part of the organizational processes; and with that supply chain, overall and procurement processes in specific will improve. This will again help the organization to get business efficiency.
The third benefit is related to the distribution part of the supply chain, organizations will; with the usage of information technology, have the most streamlined distribution network; when they have partnered with their channel members, and this will also help in the improvement of the business.
Overcoming the Barriers to Change in Improvement Strategy;
Whenever there is a strategic change barriers are always there. These barriers are to be removed with the creation of understanding and delegation. The first process is to make the management understand that; what are the benefits of the new strategy advised for the strategic change in supply change management. Moreover, the management will also be informed about the challenges it has to face; if they do not adopt the required changes in the market. The top management in the first phase will make part of the process; and, the strategic importance of the change will introduce to them.
In the second phase where the top management will already convince about the required change; the middle management will take into confidence at this stage; the vendors will also exist made part of the process; so that they are aware of their role in the organization. This stage will also be comprising the rough drafts of the change. In this process, all the vendors and relevant departs will encourage to give; their feedback about the suggested changes moreover their suggestions will also note for any improvement.
All this discussion and delegation will create a sense of ownership in management; and, their feedback will make them realize that this is something for their benefit and they will start owing it. Once the ownership is there, the barriers to change will start reducing and fear of the unknown will remove. With this process, the implementation of the strategic change will stand made successful; and finally, the concerned departments will also provide the required training.
Conclusion;
In this report I have discusses various kinds of supply chain strategies; and the use of information technology to improve the supply chain. The organization selected for the analysis was Nestle Pakistan, and their supply chain strategies existed discussed briefly. The organization is having an impressive nestle supply chain management case study pdf; however, they need to concentrate on two dimensions. One solution is the concentration on making the vendors partners of the organization. The second solution is increasing the use of information technology tools to manage vendor relationships.
Case Study of Nestle Supply Chain Management PDF Essay with 4 Project; Image by Minn Ko Aung from Pixabay.
Best HRIS Human Resource Information Systems basics applications and future directions, Definition, with Example and their PDF. The role of an HRIS is paramount in attracting, hiring, maintaining, and developing the human assets of any employer. This is because HRISs offer records that vitally help the goals and objectives of an employer. In the modern-day global of massive records, records are energy. Therefore a terrific integration of the HRIS software program connects internally all departments worried with human resources inclusive of the repayment and benefits branch, HR line managers, and the finance branch. This increases a business enterprise’s performance and also its productivity. Thus, “A human resources information system (HRIS) is the integration of software, hardware, support functions, and system policies and procedures into an automated process designed to support the strategic and operational activities of the human resources department and managers throughout the organization”.
Here is the article to explain, Definition, Example, and PDF of Best HRIS Human Resource Information Systems!
A compensation management software program is a vital issue in designing and administering an equitable and powerful reimbursement program. “Compensation software program systems make sure agency-wide compliance inside previously set guidelines, arrange and analyze facts, tracks benefit-based performance dreams and assist with future salary making plans”. The modern-day venture requires finding a repayment management software program that can presently cater to the organization’s U.S operations. However, as a human resource structures manager, it would be vital to discover software programs that could subsequently extend globally.
Human Resource Management Systems (HRMS, E-HRMS). HR Technology or also called hr modules shapes an intersection between human resource management (HRM) and information technology. It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field. Whereas the planning and programming of data processing systems evolved into standardized routines. And packages of enterprise resource planning (ERP) software.
On the whole, these ERP systems have their origin in software that integrates information from different applications into one universal database. The linkage of its financial and human resource modules through one database is the most important distinction from the individually and proprietary developed predecessors. Which makes this software application both rigid and flexible.
Definition of HRIS Human Resource Information Systems;
“HRIS can be briefly defined as integrated systems used to gather, store and analyze information regarding an organization’s human resources.”
Hedrickson, 2003, p.381.
It refers to the system of collecting, recording, classifying, presenting, processing, storing, and disseminating various information, required for efficient and effective management of human resources in an organization. To manage diverse, expensive, and human resource information in complex environments. Human resource departments of various organizations have increasingly used computer-based human resource information systems. It (HRIS) supports the strategic and operational use of human resources.
HRIS in an organization;
They have become a part of all large organizations. Also, It is a computerized system that aids in the processing of information relating to human resource management. It is a device, designed to fulfill the manpower information needs of the organization. HRIS require for the following purposes.
Planning human resource requirements of the organization.
Employee training & development to increase efficiency.
Formulation of policies and programs relating to human resources.
How to use the HRIS software package?
HRIS is a software package that provides a complete management system for human resource activities in small-to-medium-sized businesses. They help streamline administrative procedures, manage employee benefits, reduce the need for paperwork and manual records, and keep track of all personal and job-related employee data.
It is helpful for different organizations to set measurable benchmarks to acquire, train, and retain the best employees, co-ordinate employee job descriptions with areas of responsibility, schedule training for recertification, safety, and revised work procedures, and provide incentives to motivate and improve employee performance, track accident statistics and implement corporate strategies to improve overall health and safety.
While the database provides quick access and tracks the entire work history, every employee can be able to view only their personal information over a systematic human resource information system.
How to handle the management by HRIS?
HRIS can handle the management of benefits for both HR personnel and company employees. HR directors can import payroll and benefits data into HRIS from in-house and outside sources. This allows them to manage all facets of HR from a single location. It also provides employees with self-service access to their accounts. With a security system that requires a login ID and password for each user, employees can check vacation balances, and review benefits data. And update personal information without having to first contact HR staff.
How do Human Resource Information Systems (HRIS) Work?
The HRIS helps managers in decision-making in respect of promotion, wage-fixing, recruitment, training, and development. Also, The inputs of HRIS include the information relating to employees. Their abilities, qualifications, potentialities, creative instincts, age, pay scales, and various jobs in the organization. Their required skills and qualifications to do them, the number of employees. And executives manning various positions, organizational objectives, policies, procedures, etc.
This information loads into the system. Also, This data process into the most useful information required by the managers. This HRIS not only prepares for an industrial, service, or government organization. But also the entire city, district, state, or country.
To eliminate human resource problems of any kind, HRIS comes to the rescue. And provides the services of hiring human resources, and maintaining the complete record of human resources. It can at any moment show the supply of human resources available. The pattern below shows how the HRIS works.
The main working key point of Human Resource Information Systems (HRIS);
Inputs: The input of the (HRIS) includes information related to employees. Such as education, age, experience, training, present status, present salary, whether promoted or not, organization’s policy past and present, and procedures past and present. And other necessary detailed information relating to the human resources in the organization. The computerized human resource information system in all respect superior to the manual system. Which is time-consuming and not so cost-effective. The most important benefit of the system is that the information is available immediately as and when required.
Transformation: The information fed to the computer can transform into more meaningful; and necessary information that exactly requires by the organization. This is the conversion stage of computerized HRIS. The information transformed into meaningful calculation is very useful to the managers and organization as well. This works as a decision support system, which aids in making appropriate decisions.
Output: Output refers to the printouts of the transformed material from the computer printer like salary statements, reports on the performance of an employee, budget estimates, etc. All these can be had in the form of printouts, terminal screens, etc. A well-knit HRIS acts as a worthy decision support organism of very high quality. The high-quality output must be accurate, relevant, consistent, readable, and comprehensive.
Feedback and Control: Whether the output obtained is relevant and useful or not must know. The method of ensuring it know as feedback. Feedback establishes control over the system.
Basic Features of Human Resource Information Systems (HRIS);
In place of standardized paperwork, HRIS allows employees to fill out forms online, make changes based on life events, and get information on their benefits at any time. Rather than “pulling an employee’s file,” HR personnel can refer any information about an employee through the system, including personal information, benefits, number of dependents, emergency contacts, and job history. Also, HRIS includes both standardized and customized reports.
Standard reports feature templates for various administrative purposes including employee reviews, record keeping, workers’ compensation, employment history, and absence tracking. Customized reports create those incorporate categories and information unique to the business. Most HRIS applications have a comprehensive tracking system. HRIS tracking capabilities can maintain grievances filed by or against the employee stemming from discipline, disputes, and complaints.
Areas of HRIS;
Quick reference guides can be available relating to all areas of the Human Resources Information System, including staff benefits, benefit contribution rates, calendars, personnel change reason codes, and the payroll process flowchart. Detailed instructions regarding establishing and changing employee benefit and deduction information, including retirement, pension, health care, flexible spending accounts, and employee-selected deductions.
Documentation of the human resource accounting structure can be possible; including staff benefit calculations and charges, review, and correction of human resource accounts. Documentation is helpful for payroll issues, including time, reporting requirements, check and auto-deposit distribution, taxable benefits, terminations, review, and correction of employee pay and leave, and tax forms. Instructions and forms for employees to establish or change their employee information are also related to the HRS, including name, address, retirement, pension, and health care.
HRIS Human Resource Information Systems Basics Applications and Future Directions, Definition, with Example and PDF!
References; HRIS. Retrieved from https://www.ukessays.com/essays/human-resources/human-resources-information-system.php?vref=1, https://www.mbaknol.com/management-information-systems/human-resource-information-systems-hris/
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