Lean thinking provides a conscious effort on optimizing the flow of the process and reducing cycle time. Lean manufacturing is not only used in a manufacturing industry but also in any business and any process where the lean manufacturing principles can be incorporated. An industry or business could have a lean process or a non - lean process. An industry with a non-lean process would be one that is filled with waste in turn produces a decrease in service and product quality and an increase in cost. A lean process is a satisfactory process and a cost reduction occurs by eliminating the waste from the process.
Lean Six Sigma combines the two most important improvement trends of our time: reducing the variation of the process and making work better (using Six Sigma methodology) as well as making work faster and more efficient (using Lean Manufacturing principles). Six Sigma and lean manufacturing are toolkits to reduce waste in any kind of business processes. Lean is an approach that seeks to improve flow in the value stream and eliminate waste. Six Sigma uses a powerful framework (DMAIC) and statistical tools to uncover root causes in order to understand and reduce variation (Foster, 2013). Methodology: The Lean Six Sigma methodology seeks to minimize the resources required for production by eliminating non-value added activities that inflate costs, lead times and inventory requirements, while emphasizing the use of quality improvement programs, preventive maintenance, pull systems, flexible work forces and flexible production facilities.
JIT is the key element in what is termed lean production; lean production is a philosophy and a way of eliminating all forms of waste. JIT is a vital element for Tesco’s supply chain, as it results in the company having just the right amount of stock at any given time. Too much stock is a liability to the company as it results in storage space been used up, money is tied up and there’s always the possibility that perisher able products will exceed there sell by
Lean manufacturing is an approach to manufacturing in which any resource spending that does not create value for the end customer is considered wasteful and should therefore be modified. Also this is considered “a theory that can help you to simplify and organize your working environment so that you can reduce waste, and keep your people, equipment, and workspace responsive to what’s needed right now.”( Lean Manufacturing) This explains how lean manufacturing can make the process of production more efficient. When it comes to lean manufacturing there are multiple principles that are apart of it. These Principles are the elimination of waste, continuous improvement, respect of humanity, levelized production, just-in-time production, and quality
ABC highlights non-remunerative distribution channels allowing the management to adopt alternative marketing strategies or close down the channel for a more pro... ... middle of paper ... ...y activities of packages and track movements. Being able to track movements allows UPS to expand its ability to properly measure the cost of products. Product cost can be measured via work measurement and package movement. Activity and customer analysis allow UPS to determine the most efficient way to minimize cost for the business and for their customers. ABC system is also used to measure invested capital.
This ratio shows the earnings on employed assets. Higher the ROA, more efficiently assets have been used. In 2012, it is -13.6% but in subsequent year 2013, it is improved to 1.6%. This ratio is also low and need serious attention. Long Term Debt paying ability Long term debt paying ability of firm is mainly measured by three ratios
Based on the calculations, it is clear that Amazon generated more revenue during 2010 to 2013. The revenue increased from 34.204 billion to 74.452 billion. However, the revenue growth rate dropped from 39.56% in 2010 to 21.90% in 2013, which means that the revenue growth was slowed down during this period. Amazon’s gross margin remained stable during ths same period. These facts indicate that Amazon’s cost of goods sold grew faster than its revenue.
From the table the quick ratio is increasing for the past few years hence the liquidity position of the firm is better in the current year compared to its own past position and position of HPCL. Clearly HPCL has greater proportion of debt in comparison to the equity and is highly levered whereas IOCL is least levered. This signifies that IOCL follows a conservative approach compared to its competitors whereas HPCL follows comparatively aggressive approach taking more r... ... middle of paper ... ... Since the amount not distributed as dividend is retained earning which is 1-dividend payout ratio so almost 60% of earning are retaining by the companies which is utilized for research, exploration and development purposes as there is always a need to plan and develop new products to satisfy the new and changing demands. The earnings per share for both the companies is following a zigzag trend due the change in net income for the respective years.
Core Logic is lacking in its Net Income, which is why their percentage is so much lower than the other companies in the industry. If we were to increase their net income (change the numerator) their Return on equity would be higher and would make investors happier with a faster and higher return rate. Profit Margin’s for the data and information’s industry aren’t very high on average however Core Logic is 3% lower which suggests in theory that they’re missing three cents of profit for every dollar of revenue which in the long term hurts the company . I would recommend figuring out a way of increasing the company’s Net Income (Numerator of fraction) to increase the company’s profit margin; but by doing that it will affect both the return on assets and return on equity positively. By increasing the net income it will directly increase the ratio figures for each group, which is a positive effect since it helps those values close in on the industry average.