DMAIC expands to Define, Measure, Analyse, Improve and Control, whereas DMADV is an abbreviation for Define, Measure, Analyse, Design and Verify. Keeping aside the initial three letters of the two methodologies which have common meanings, the primary difference between them lies in the manner in which the last two steps take place. This means that if the firm is using DMAIC, the improvement and control steps emphasizes determining the means to readjust and control the process. In DMADV, the … [Read more...]

Value Analysis (VA) involves the implementation of a set of techniques relating to cost reduction and cost prevention to the existing product to improve its value. On the other hand, Value Engineering (VE) is the implementation of a similar set of techniques relating to a new product at the time of its design. These two are modern methods relating to product cost optimization. Many industries have adopted these techniques. These aim to improve the value provided to the customer. These mainly … [Read more...]

When we hear the terms 'forecasting' and 'prediction', that one thing that strikes our mind is the future. In business, estimation of the demand of the product in future is called forecasting. It is not similar to prediction. Prediction is simply the guess of the manager. Forecast relies upon the scientific analysis of past data. But, prediction is dependent upon subjective considerations. The job of the manager becomes quite easier when he has an accurate forecast. It is a well-known fact … [Read more...]

We use the point elasticity method when the changes in price and quantity demanded is very small. Hence, it is easy to calculate the elasticity at a point. And because changes are quite little, one can take the original price and quantity, as a base. But, what to do when the change is substantial? One can neither take the initial price nor the final price as a base. In such a case we use the arc elasticity method, wherein we use an average of both initial and final price. What is … [Read more...]

Inbound Marketing is a form of marketing. In this, the customer sees ads when they search for a particular product that the company offers. Paid search advertising is one classic example of inbound marketing. Outbound Marketing, is another form of marketing. Here, the marketer finds out customers, starts interaction and conveys information in the form of messages to people irrespective of their interest. The basic difference between inbound and outbound marketing is that in the case of the … [Read more...]

In a firm that undertakes manufacturing activity, the inflow and outflow of material occur at frequent intervals. As production can take place only when there is sufficient material. In this way, the need for material emerges every now and then. With the help of purchase requisition, permission to purchase the material is sought by various departments. Further, the placement of an order for buying the material takes place on the approval of purchase requisition. It is the purchasing … [Read more...]

In segmentation, the entire market of consumers is broken down into a number of groups. These groups are segments that comprise consumers with similar characteristics. Of all these segments the company chooses one segment to focus on, to offer their products. This is the process of targeting. We all know that, when all the consumers of the product are taken together, it makes up the market for that product. But this is also true all the consumers are not the same. Therefore, the consumers may … [Read more...]

Supply implies the quantity of a commodity, which suppliers are ready to offer for sale at a definite price over a period of time. In other words, supply is what the supplier is able and willing to offer for sale to the customers. In contrast, quantity supplied implies the amount of a particular commodity that the firm is willing and able to make available for sale at the given price at the given period of time. The seller of the product represents the supply side of the commodity. This may … [Read more...]