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...]

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...]