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Yes |
No |
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1. Do you know how the total costs of making your products are divided between materials, labour and other expenses? |
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2. Do you know how much of your raw materials are wasted from bad cutting or processing and from bad workmanship? |
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3. Do you know what working capital is? |
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4. Can you think of two things you could do to cut the costs of manufacturing? |
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5. Have you ever stood and watched the movement of your workers between stores, machines and workplaces? |
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6. Have you ever looked closely at how the workplaces are laid out and how the workers work at them? |
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7. Is your work and the supply of material planned so that one job follows another without delay? |
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8. Can you think of three ways in which machine working time can be lost in your factory during a normal day's work? |
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9. Are the machines regularly oiled, greased and checked to see that they are working properly? |
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10. Can you think of three ways in which you could reduce the amount of money tied up in working capital? |
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Yes |
No |
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1. Do you know how the costs of your operation are divided between labour, material and other expenses? |
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2. Do you know what the biggest item of cost is? |
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3. Do you know how much of the total working time of your employees is wasted through tea-breaks, smoking, coming in late and leaving work early? |
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4. If your equipment and personnel are not well used, do you know why? |
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5. Do you know what is meant by the word “productivity”? |
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6. Can you think of two things you could do to increase the productivity of your service operation? |
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7. Are the machines and equipment used in your operation serviced regularly? |
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8. Do you keep written records which give you details of the dates and times when machines and equipment used in your operation are stopped by breakdowns? |
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9. Can you think of two ways in which the costs of your operation could be reduced? |
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10. Do you know what is meant by the words “planned maintenance”? |
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1. Write down two things which you could do to cut the costs of your manufacturing or service operation:
(a)__________
(b)__________
2. Write down two things which you could do to reduce the amount of money tied up in working capital in your business:
(a)__________
(b)__________
3. Below you see the working capital that was tied up in a business before and after a carpenter studied the manufacturing section of the Handbook.
How much extra cash in hand had the carpenter after the improvement?
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Working capital tied up in: |
Before improvement |
After improvement |
Released |
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Raw material store |
8,000 |
6,000 |
2,000 |
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Processing |
4,000 |
3,000 |
_____ |
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Assembly |
2,000 |
1,000 |
_____ |
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Finishing |
2,000 |
1,000 |
_____ |
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Inspection |
3,000 |
1,000 |
_____ |
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Finished goods store |
6,000 |
3,000 |
_____ |
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Cash released after improvement |
_____ | ||
Now that you have completed the business practice exercises, turn to the page which follows the action programme. There you will find the answers. Check your answers against the answer solutions which are given on that page. How many correct answers did you get?
CHECK YOUR ANSWERS!
THEN GO TO THE HANDBOOK FOR MANAGEMENT
IDEAS
Now go to the Handbook and read thoroughly the management ideas in the same section there. You will then find that all the business practice exercises become easier to answer.
Count the number of times you answered “yes” or “no” for each set of ten questions. How many times did you answer “yes”? The more “yes” answers, the better you are in business management. Now look again at those questions you answered “no”. Those are possible problem areas in your business. Choose the one which you think is the most important for your business. Take the most urgent problem first. Don't try to solve everything at once.
Now write the problem into the action programme opposite, as we have done with the example. Then write in What must be done, By whom and By when in order to solve your problem.
Finally, go back to your business and carry out the action programme.
Figure
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Problem |
What must be done? |
By whom? |
By when? |
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Example: | | | |
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Drilling machine breaks down too often. |
Take it out of use. Have it repaired properly at Machine Repair Ltd. |
Joseph and Bill. |
Friday afternoon. |
1. Write down two things which you could do to cut the costs of your manufacturing or service operation:
(a) reduce the cost of materials by good buying or cut down on wasted or spoiled materials;(b) reduce time wasted by workers and cut the cost of labour or improve the layout of your workshop.
2. Write down two things which you could do to reduce the amount of money tied up in working capital in your business:
(a) hold less stocks;
(b) send out invoices fast and get your cash in fast.
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3. Working capital tied up in: |
Before improvement |
After improvement |
Released |
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Raw material store |
8,000 |
6,000 |
2,000 |
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Processing |
4,000 |
3,000 |
1,000 |
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Assembly |
2,000 |
1,000 |
1,000 |
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Finishing |
2,000 |
1,000 |
1,000 |
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Inspection |
3,000 |
1,000 |
2,000 |
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Finished goods store |
6,000 |
3,000 |
3,000 |
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Cash released after improvement |
10,000 | ||
Figure
Figure
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