Six Sigma and big data has taken metrics to a new level. There they are measuring progress, pointing the way to improvement, and determining how big the bonus will be this year. Knowing where you’ve been and where you’re going is a good thing, so what’s wrong with using metrics as much as possible? Beware …
A service business has special challenges compared to a product oriented business. One of the primary considerations is scalability. This article will cover service business considerations. A product related, capital intensive business can scale production via investments in automation, employees, contract workers, outsourcing via multiple suppliers and so on. A service business is more constrained …
When investigating a potential new business venture it’s instructive to think about the structure of the product and its associated manufacturing process. The barriers to entry for a product development project and its associated manufacturing process not only affect whether it makes sense for your operation, but also may determine if you have a lot …
Low volume products (LVP) have extra challenges that have to be addressed to make the product successful. In this article we will look at the major issues associated with LVPs. To qualify as an LVP depends on the product involved. An annual production of 1,000 cars for specific model would no doubt be considered a …
In this article, we will look at various marketing strategies that can be employed for products and services. Having a well defined strategy allows for a more cohesive mix of products and services that work to complement each other. Companies with a varied portfolio of products and services may have different marketing strategies that work …
The financial structure of a company is the mix of financing types that are used to invest in resources and fund operations. Types of Financing Debt Financing Bring in new funds for investment and operating capital by borrowing. Borrowing can take on many forms such as bank lending and bond issues. The types of borrowing …
Risk is a broad term that can apply to many situations. For this article, we are talking about ways to mitigate business risks to inputs and outputs. Contract employment Use contract employees to scale up/scale down employment needs. The potential downside is having to train temporary employees. Use contract employees that allow for exit if …
Ways to Mitigate Risks to Business Inputs and Outputs Read More »
Sometimes the business status quo must be maintained. There are different reasons for wanting to maintain the present situation. One is that you are waiting for information to arrive that will allow for a decision to be made. In this case the status quo needs to be maintained for a short period of time. Another …
Reducing initial investment is desirable from a cash management standpoint, but also from a risk standpoint. Tactics to reduce initial investment in a project are listed below. Staged investment Make a partial investment, and wait for more information before making follow-up investment. Example: Buy land. Develop if it is desirable to do so. Example: R&D …
Optimizing operations generally comes in two flavors: Designing a product or process for a specific purpose to maximize output or minimize cost. This also may entail standardization of product or process. In this case, optimization occurs at the front end during the design phase. Designing a product or process with flexibility to allow maximize output …