Have you any idea of the shipping agreements? There are two famous international shipping agreements, i.e. CIF contract and the FOB contract. These contracts are used for the transportation of goods between the buyer and seller. In FOB contracts, the seller's duty is to load the goods onto the ship proposed by the buyer. As against, in CIF contracts, the duty of the seller is to deliver the goods to the shipping company for transmitting them to the buyer. Do you know? FOB and CIF contracts … [Read more...]

In auditing, verification implies the process of checking the accuracy of the value of assets and liability. The auditor checks the accuracy with regard to the title and the existence of the assets and liabilities as the company's books reflect. Valuation of assets means the determination of the value of the specific asset of the enterprise on the balance sheet date. It involves testing the correct value of assets depending upon their utility. In short, it is all about finding out the … [Read more...]

Promotion is an upward movement on the organizational ladder. It involves shifting an employee from a lower designation to a higher designation. On taking charge of the higher position, the employee will have greater authority, status, responsibilities, and so forth. And at the same time, he will get better remuneration and emoluments. But, the transfer is a lateral move on the organizational ladder. It involves shifting an employee from one place to another, like one branch or department to … [Read more...]

While a pamphlet is a non-commercial advertising tool, a brochure is a commercial one. In this sense, we use pamphlets to inform, but brochures to promote something. When compared to flyers and leaflets, which are throw-away documents, a brochure is a promotional sales tool, which is meant to be kept and refer more than once. It does not just target customers, but also resellers and sales teams. There are a number of terms, which are connected to the printing world, that you might encounter … [Read more...]

TPM is a subset of TQM. TPM is a method that deals with the maintenance of equipment. It helps in reaching perfect production with no breakdowns, no defects, no small stops and no mishaps. It focuses on proactive and preventive maintenance. This will magnify the operational efficiency of the equipment. But, TQM is a proven approach that assures the survival of the organization even in cut-throat competition. It is a philosophy derived from ideas introduced by quality Gurus, over the years. It … [Read more...]

Prior to initiating any work, planning is necessary because when things are well-planned desired results can be achieved. Similarly, for production, planning beforehand is important as it provides us with the parameters to implement control on the activities and suggests if there are any discrepancies. Production planning entails thinking in advance about what to do and how to do something. However, scheduling involves the allocation of resources or production facilities to process work … [Read more...]

An audit certificate ratifies the truth and correctness of a fact, figure or statement. On the contrary, an audit report contains a statement of fact or expression of opinion about the truth and fairness of the fact, figures and statements. Once the auditing process is complete, the auditor must prepare a report in a summarized form. This is what we call an audit report. The audit submits this report to the person or body who appoints him. But in general, the auditor submits it to the … [Read more...]

Think of all the electronic items or skincare products that you have in your house, the companies that produced those products are all product-based companies. Look it another way, think of the broadband service, electricity service or gas service that you avail at your home, the companies that render those services are all service-based companies. So, we could say that the companies that sell any tangible item to their clients are Product-Based Companies. On the other hand, Service-Based … [Read more...]

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...]