#Immediacy on speech making

Machines B and C =are starved of parts, or - ii. B ...

Machines B and C =are starved of parts, or - ii. B and C cannot keep up with A and A stands idle for some of the time There may, in addition, be other machines very little used. Records should be kept of utilization and these should be regularly examined to see if cost-saving opportunities are available, eg it may be possible to run machine A on a night shift in order to stockpile parts for B and C. Alternatively, if machine A is idle for a significant time, some shift working on B and C may be possible. Other under-used machines may now be virtually surplus to requirements and could be sold and the work placed outside with a subcontractor.

As a general 'rule of thumb', a utilization of 75 per cent of the working time available should be aimed at, having allowed for maintenance downtime. Buy, lease or rent? The differing tax situations between partnerships and limited companies and the variations of tax rules which come and go with governments and Chancellors of the Exchequer make it impossible to lay down hard and fast rules as to the economics of buying, leasing or renting. What is best for one business may not be best for another and what is best in one year may be worst in the next. Clearly, leasing and renting avoid difficulties in finding capital, but the tax situation needs to be reviewed from time to time and professional guidance sought.

It is important to avoid the mistake of thinking that what was a good method last time will be a good method in future.

Production planning and machine scheduling Careful scheduling of machines and the work to be done on them is always recommended.

Both scheduling and production planning have a positive though indirect impact on equipment costs by ensuring that optimum use is made of existing resources thus cutting unit production costs and postponing the time when more money is spent on additional machines. Production planning involves looking at orders already received, those expected, and also any production for stock.- The further one can look ahead the better, but even a few days or a couple of weeks can make the difference between efficient economical working and machines either standing waiting or idle during frequent changeovers. There are a variety of ways to plan production, ranging from examining a pile of orders- and putting them in a priority sequence which takes account of advertisement factors as well as production economies, to using a computer to analyse the position regularly.

A good compromise is to use a planning board visible to all which shows the orders in the pipeline and the expected production dates. A blackboard will do but more convenient is an 8' x 4' board marked into days, weeks or months with orders on Post-it' notes stuck in the appropriate places.

The notes can be moved about as work is completed to show the latest situation at a glance. What you can do right Now Online : Prepare your own check-list of points to watch when deciding whether or not to buy the sort of equipment you are likely to use in your business.

Do you use a costing system, appropriate to your service or product, to ascertain how much a new acquisition will contribute to, profit? Review the equipment you have in terms of its present and future value to the business.

• Is there anything which should be sold? • Is there anything which should be replaced? Review your control procedures to ensure that: • There are adequate records for the purposes of servicing and maintenance; • You can see how much a machine is costing you in lost time and/or repair bills; • Equipment is being used properly and not mishandled or abused; • Utilization of equipment is the best you can make it; • There is some effective form of machine scheduling and production planning. • Review with your tax adviser your policy in respect of buying, leasing or renting equipment and make appropriate changes to your policy for the future. Distribution Costs The term 'distribution' covers a wide range of topics including packaging, warehouse design, material-handling systems, and so on This section is concerned with the two main aspects of distribution transport and storage. These are the two factors which have the most influence on costs and which are fundamental to the degree of customer service that must be provided to beat the competition Service companies must also consider distribution as part of their business, even if they have no physically tangible product.

As someone once said, 'Distribution is all about putting the product or ...

As someone once said, 'Distribution is all about putting the product or service where the customer wants it.' It is for this reason that building societies vie with each

The result, apart from higher cost, was only a very limited improvement ...

The result, apart from higher cost, was only a very limited improvement in service since the total elapsed time from the moment that the customer mailed his order t... read more

I found an elderly, battered vehicle which was cheap and calculated that ...

I found an elderly, battered vehicle which was cheap and calculated that even with tax and insurance I would sa