Key Differences

Manufacturing and Production, are the two terms related to conversion of raw materials into finished products. But, Have you ever wondered, what makes them different. Manufacturing is the process of transforming raw materials into ready goods, with the help of machinery. On the other hand, production alludes to the processes or methods, that converts inputs like raw material or semi finished goods, to make finished product or services, which may or may not use machinery. Manufacturing is a … [Read more...]

No country in this world is self-sufficient, and it has to take help of the financial organizations and other nations to get financial assistance especially who are on the way to development. To know about the creditworthiness of a country's economy, its debt and deficit are considered. Debt is the loan taken by the government of any country, whereas Deficit is the excess of government expenditure over government revenue. Here, debt refers to the government debt, or national debt and deficit … [Read more...]

Every organization works for reaping more and more profit; this can be done by only two ways, i.e. getting more and more customers and eliminating unnecessary expenses, wastes and losses. In this context, lean management and six sigma are two approaches used by the firms, in general. The Lean management aimed at reducing process waste and increasing the worth of firm's product or service to the customer. Conversely, six sigma is a quality measurement, that seeks near perfection in products or … [Read more...]

In a business environment, firms use various techniques, to survive, compete and grow in the long run. These techniques can be called as tactics and strategy. Tactics are the actions, projects or events, to reach a particular point or the desired end, whereas the Strategy is defined as a game plan, which can help the organization to achieve its mission and objectives. These terms are used very often, when we talk about competition among firms at the market. While tactics refers to the moves … [Read more...]

Every business organization is a part of the business environment, within which it operates. No entity can function in isolation because there are many factors that closely or distantly surrounds the business, which is known as a business environment. It is broadly classified into two categories, i.e. microenvironment, and macro environment. The former affects the working of a particular business only, to which they relate to, while the latter affects the functioning of all the business … [Read more...]

LIFO, is a form of inventory management wherein the product or material received last, is consumed first and thus the stock in hand, consist of earliest consignment. On the other hand, FIFO is another method of inventory management, in which the material received first is consumed first, i.e. the issue of goods is done from the earliest lot and the stock in hand comprise of the latest lot. Inventory management is a tough task for the organizations that are completely stock oriented. Many … [Read more...]

Performance Appraisal implies a rational assessment of the performance of an individual, based on pre-determined standards. On the other hand, performance management alludes to the management of performance of the manpower working in an organization. While Performance Appraisal is a yearly system while if we talk about Performance Management, it is a continuous process that does not occur eventually. What kind of evaluation process is adopted by the organization is one of the biggest … [Read more...]