BEIJING (Xinhua) – Inventories of iron ore at 25 of China’s major sea ports rose to 96.21 million tonnes in the week ending Sept. 5, according to the Xinhua-China Iron Ore Price Index released on Tuesday.
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There are problems that usually occur about productivity in any industry. The usual problems they encounter are about their inventories, cost-reduction programs, work center bottlenecks, data accuracy and quality controls, decision-making and new product failures. Among these problem areas, only one or two of these problems are resolved and the others are forgotten.
Here are the productive problems and suggested remedies:
1.) Inefficient scheduling of materials and production to meet inconsistent sales demands. The threat can be detected when at least 15% of the total orders are classified as “rush” and when orders waiting for operators exceed five times the work required. The management must see that the scheduling of production is flexible and jibes with the market demands.
2.) Management places more emphasis on over-release of new orders than on cleaning up delays created by poor input-output controls. With an overloaded plant, most production managers are most comfortable thinking that the operators will not run out of work. The result is excessive assembly shortages, high cost of expediting and late deliveries. This problem can be corrected by establishing and implementing an effective input-output system.
3.) Failure in implementing an effective cost-reduction program. Management failed to identify profit opportunity areas, which should be ranked accordingly to cost/benefit order. Through a prepared list, a committee can be chosen to create innovative solutions.
4.) Inaccurate inventory and work order control. Instead of giving credit for maintaining data under control, the management gives credit and reward for what a department prefers to accomplish.
5.) Deficient quality control. Management had to train operators properly and involve them in attaining higher quality goals. The management must also have concern for proper maintenance of equipments, the workplace layout and compliance to operational guidance.
6.) Poor decision-making. The inability of a manager to make sound decision. A good example would be a manager who needs to decide whether to make or buy a part or how much more or less profit will be made if sales increase on decrease by 25%. Managers have to demand from the finance people to provide important data for profitable decision-making. It would be helpful also if management improve on handling finance through seminars and workshops.
7.) New product flop due to the following reasons: Subordinates did not inform their superior about the product’s defect; the key managers won’t allow “pulling it off”; the marketing people won’t allow the product design to be frozen and; the managers secure their pet projects and prevent other managers from identifying and solving problems early on. The suggested remedy to this concern is to tackle the problem immediately to avoid further downturn of a product.
In response to today’s congressional oversight hearing examining the reckless and disorganized closure of thousands of neighborhood auto dealerships and tens of thousands of additional jobs which will be lost as a result, the National Automobile Dealers Association (NADA) issued the following statement in support of today’s action:
“Congress rightfully called today’s hearing to expose the unnecessary and reckless closure of thousands of auto dealerships and the loss of tens of thousands of jobs caused by Chrysler’s and General Motors’ short-sighted restructuring plans.
“Dealerships equal revenue to manufacturers, not costs. The franchised-dealer network was created to outsource virtually 100 percent of the cost associated with selling and servicing cars. A rapid reduction in dealer numbers would further cut manufacturer revenue and market share and do nothing to improve the manufacturer’s viability.
“Furthermore, these forced closings will cause a ripple effect through the economy that will make the nation’s overall recovery substantially more difficult. The dealerships being shuttered represent more than 100,000 jobs as well as billions of dollars in sales tax revenues for the towns, cities and states.
“It is reckless for Chrysler, with the approval of the auto task force, to shut down almost 800 dealerships with barely more than three weeks notice and then refuse to buy back vehicle and parts inventories. Forcing these dealers to liquidate their vehicle inventory and parts supplies before June 10, and requiring them to lay off their employees in a careless and disorderly manner will cause additional economic harm both locally and nationally.
“Due to the timing and unprecedented terms of these terminations and the fact that there is no method for dealerships to appeal this non-transparent decision, NADA calls on the Obama administration and these automakers to ensure that these dealerships and the people who work there have enough time to properly close their businesses and find new jobs. The President should review options such as having Chrysler buy back the parts, inventory and manufacturer-specific tools.”
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