Developing Good Business Sense

Developing Good Business Sense

  • Submitted By: gleepin
  • Date Submitted: 02/23/2009 8:52 PM
  • Category: Business
  • Words: 349
  • Page: 2
  • Views: 1009

Developing Good Business Sense G. Lee Operating systems for companies vary between them. We have small-batch production, flexible production and mass production. When companies use small-batch production, they typically make one-of a-kind or small quantities of their product. Small-batch production is more costly as you are making smaller quantities of an item, so each item runs at a higher price. Mass production is an operating system that uses automated machines and standard operating procedures. The operating procedures are worked out in advance and are easier and require less employee judgment on a daily basis. Mass production is highly effective and efficient which results in much lower operating costs. Costs are lower because the company often times produces upwards in the millions of products. There is also flexible production, which is a hybrid between small-batch and mass production. With flexible production companies use computer-integrated manufacturing (CIM). The CIM is a manufacturing technique that controls changeover from one operation to another by means of computer software. This technique eliminates the need to physically retool a machine to produce different products. The system is controlled by a series of ‘robots’ where each is capable of producing a range of products or tasks. There are several things that go into businesses for operating costs. You have to take into consideration how things are produced, how things are delivered, and who makes it all happen. Companies have to pay other companies for their products and try to acquire higher quality items at lower costs and figure out ways to not run out of things without sitting on a lot of inventory. They also have to take their employees into consideration. Without trained employees, companies such as McDonalds, Wal-Mart and FedEx would not be able to operate and earn profit on goods and services sold. If an employee did not know how to operate the fryer, McDonalds would not be able to...

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