Monthly Archives: January 2017

Service Industry Lean Manufacturing – Implementation Guide

Non-manufacturing industries have not embraced lean manufacturing to the same extent as those producing a product. Some service industries have found the same principles apply, although the use of lean manufacturing tools is different.

For example, a value added analysis is just as easily conducted with a worker talking on the telephone as someone using one.

The 5S tool can be used to organize the surroundings in the telemarketing office. All materials the telemarketer uses should be organized and within reach without having leave the area. This 5S organization enables the telemarketer to continuously utilize any material in front of them as well as keep an eye on a computer.

The same SMED tools can be used with a administrative assistant as a machine operator. The process map and movement will show the waste in each. The assistant's travel shows the motion waste. The waiting waste is often huge in any white collar or service job. For example, the waste from waiting on a colleague, manager, supplier, or anyone else can be eliminated. There are ways to minimize it by removing the root cause as well as finding activities to fill the time. These activities should be of short duration, such as data entry, filing, or printing.

Line balancing is easy in a service environment. The key is flexibility. For example, two tellers at a bank may be required 6 out of 8 hours per day, but the trained lean expert or industrial engineer is required to notice it. The additional two hours of waste comes in buckets of 1-2 minutes throughout the day. Again, this time must be filled with value added activities in a standard work format. If the job is not standardized, the two individuals may absorb the time and appear 100% busy. There are many other instances where job combinations are obvious.

The value stream map is an excellent tool for service industries. Rather than the traditional macro level view of the system, the value stream map can be used in a department or area of ​​the business. An example would be the service desk at a department store. Begin with the information flow and trigger for activity, which might be a customer. Break the map into various segments showing the few activities that comprise 90% of the work, such as returned goods, request for information, or complaints. Standardized Operations should be utilized for returned goods to minimize motion and waiting, such as a decision flow diagram. If the manager is called a large percentage of the time, the decision flow diagram needs improved. Obviously the 5S and SMED tools are also relevant, as well as root cause problem solving to eliminate the complaints.

Service industries often use kanbans without knowing it, such as ordering supplies. The same pull systems can be used in service industries as the manufacturing sector. The supply distribution center is one obvious example. Inventory waste can be eliminated using pull systems beginning with the end downstream customer.
When implementing lean manufacturing in a service industry, it is important to tailor the training to the business. Most SMED (single minute exchange of die) training is developed using examples of setup activities for equipment. It is easier for people to understand and see the waste in their processes when the training has obvious applicability.

One of the best long term lean manufacturing tools to apply in a service industry is the kaizen event. Kaizen means "incremental improvement" in Japanese. The kaizen team is comprised of a cross functional team developed to quickly and substantially improve a business issue. For example, a kaizen might be developed to reduce hospital check in time for testing. The team might include the individuals conducting the check-in, a nurse, manager, an IT representative, and a couple customers. If the average check in time is 35 minutes (the elapsed time from walking into the building until seated in a private room), the kaizen objective might be to reduce the check in time to 20 minutes within 5 days.

Cellular manufacturing can be used in many service businesses. Rather than placing individual pieces of equipment such as the postage meter, copier, fax, and file drawer throughout the area for everyone to use (and wait on), consider placing these items together in a U shaped cell to minimize movement.

The "One Piece Flow" concept is a great tool for processing items such as quotes, bills, or mail pieces. For example, if four people must review a quote, and the first person processes 500 prior to moving to the second individual, and so on, the cycle time is going to be very long. Also, if the fourth person notices a mistake the other three missed, all 500 are bad and much labor was spent unnecessarily. Moving the piece in a flow of "one" or in small batches minimizes the error cost and reduces cycle time.

Service industries have a terrific opportunity to reduce waste. Sometimes it is simple and obvious, while other times it takes the same creativity as in the factory.

Why Retail Businesses Fail Part 3: Do You Make This Mistake In Retail?

Lack of Understanding of Target Market

I visited Harrods for research for my books on store design and visual merchandise display. Harrods, for anyone reading this White Paper who might not know this, is the Mecca of retailing. Royalties, A-list celebrities and the 'who-is-who' from around the world fly into London just to shop at Harrods.

You can now imagine my anticipation when I visited Harrods. In my mind everything in Harrods was made of gold. I was disappointed, when I noticed a toy bus I had purchased for my son from ASDA, was also being sold in Harrods. It was exactly the same toy bus, in exactly the same packaging that it is sold in ASDA.

A question popped into my mind, why is it that exactly the same bus, probably manufactured in exactly the same factory in China, is sold in Harrods for twice the price that it is sold for in ASDA?

The answer is decisively simple – ASDA sells a 'toy bus', however, Harrods sells a 'classy toy bus'. There is a difference. This is marketing 101: people buy emotionally but justify their decision logically.
Customers who shop at Harrods do not shop there to buy Harrods' products; they shop at Harrods to buy 'elegance and class'. Harrods sells them class even if it is 'Made in China'.

How does Harrods pull this off? They achieve it with the combination of elegant store design and attractive visual merchandising displays. When you move from one department to the next in Harrods it is like moving from one store to another. Their ability to use their store design to create the illusion of differentiation is one of the keys to Harrods' success. Harrods understand their customers; they know what their customers desire so they design their store and display their products to satisfy the desire of their customers.

Marcus Buckingham, in his book "The First Thing You Need to Know", said when he interviewed Sir Terry Leahy, who transformed Tesco into a global brand, he asked him what was the key to Tesco's successful transformation. Sir Terry Leahy replied that it was asking and answering the simple question: Whom do we serve?

When Tesco figured out whom they were going to serve, they changed their store layout and products to serve their target market. As a result of this change; Tesco increased the number of checkout counters which reduced the amount of time customers spent queuing at the checkouts ultimately resulting in a dramatic increase in Tesco's footfall.

Wal-Mart serves the person who lives: pay check to pay check.

Body Shop serves the ethical consumer.

Waitrose and Holland & Barrett serve the consumer who wants to live longer.

Ann Summers took merchandise that were hidden in secret 'adult' shops; made them trendy and brought them to the High Street. They made a taboo subject acceptable to the mainstream.

If I was to take my significant other clothes shopping at John Lewis she would probably phone my mother to inform her that I was having a nervous breakdown. She would not want to be caught dead in John Lewis' outfit. She describes John Lewis' clothing department as a Bridget Jones museum where they store a collection of Bridget Jones costumes.

However, John Lewis continues to increase profit year after year because John Lewis understands their target market. Someone like my significant other might not want to be caught dead in John Lewis' outfit, but there are people in the UK, who love Bridget Jones' memorabilia, these people are John Lewis' target market, so John Lewis cater for them.

The most successful retailers understand their target market and show their understanding of their target market through their store design and visual merchandising displays.

The retailers that go bust fail to understand this basic marketing concept.

Most book retailers are struggling because they are still using the 1960's business model in the Amazon era. Borders failed because it did not develop its internet business properly and it invested heavily in compact discs when music was going digital. WH Smith only makes money from its airport and train station sales. The rest of its stores are struggling. Waterstone's is also on a downward trend. Sales are down and customer footfall is in steep decline.

Why are bookshops under threat? Amazon! They will all shout. Of course Amazon is the cause because Amazon understands their market better than them. Since it seems Amazon is not going away anytime soon, are all book stores going to close down?

Will WH Smith and Waterstone's close down? Or will they rise to the challenge and modernise their stores? Instead of complaining about Amazon, they need to redefine their target market and redesign their stores to attract their target customers.

On Christmas Eve, I had not done my grocery shopping and was dreading the prospect of entering a supermarket, knowing how packed they were going to be. But as I drove passed my local Lidl store, I noticed it was empty. I rushed in and completed my shopping. As I drove back home a question came to mind; why is it, that even on this day when most supermarkets are typically jam packed to capacity, was Lidl empty?

The answer, in my opinion, is that Lidl does not have a target market. One of their biggest sins was making the decision to force customers to pay for carrier bags. Marks & Spencer can afford to do that because they appeal to a different class of customer.

In Tesco and ASDA, customers who are environmentally conscious have the option of paying for shopping bags. However, those who do not want to pay for carrier bags also have the option of getting free ones.
This is because Tesco and ASDA understand their customers. Lidl's senior management, on the other hand, believed that having implemented a similar strategy in Europe, can introduce the same in the UK. If the Brits do not like it, tough! Well, the Brits are showing their displeasure with their feet.

I have tried to demonstrate with the above examples, that success or failure in retail is the result of the strategies every retailer adopts. Those retailers who understand their target market and cater to them will continue to move from success to greater success, while those who roll the dice and hope that customers show up are the ones who will struggle or go into administration.

I hate to be the one breaking this type of news to the retail industry I guess someone will have to do it: the internet is not going away. This means that retailers are not only competing with one another, they are also competing with factory owners in China whose name they have never heard. Shoppers are now ordering directly from warehouses and distributors, for example an individual can log on to eBay and order a pallet load of goods.

Here is the good news: the majority of people still prefer to shop from physical retail outlets. The question is how does an individual retailer ensure that shoppers are attracted to their store? It can be done by adopting the concept of the "Blue Ocean" strategy.

Adopting the "Blue Ocean" strategy is the only salvation for book, DVD, music and furniture retailers. What is "Blue Ocean" strategy? "Blue Ocean" strategy "is the simultaneous pursuit of differentiation and low cost" which results in the creation of a new market space making the competition irrelevant.

The concept of "Blue Ocean" is practiced by the most successful business organisations whilst struggling businesses pursue what is described as the "Red Ocean" strategy. "Red Ocean" strategy is fighting to compete in the existing market place.

The "Red Ocean" strategy is adopted by many of the book, DVD, music and furniture retailers. They are trying to compete against the internet and it is just not possible. A brick and mortar store can never go head to head with the internet and win. It can never be cheaper that the internet.

However what they need to do in order to drive customer traffic to their stores is become innovative and creative. For example a book store could arrange periodic book signings; of course authors want to sell their books so it is a win-win situation for all parties concerned.

In order for the book signings to be a successful marketing platform for the book stores it would be advisable for retailers to work in collaboration with the publishers from the onset in order for the book signings to be better promoted.

Promotion of the book signings could take various formats such as making effective use of social media sites, local press and captivating signage in and outside the store.

Another idea could be to arrange book clubs for various genres of books this would entice a variety of customers in to the store, these book clubs would also need promoting in a similar way as described for the book signings promotion.

The trick is to be innovative.

Richer Sounds is a classic case of a retailer that has adopted the "Blue Ocean" strategy. They understand that people still prefer to interact with other people. So whilst other electronic retailers focus on price, they focus on excellent customer service and staff product knowledge. Their "Blue Ocean" is excellent customer service and superior product knowledge.

For book, DVD or music retailers to compete in Amazon country, they need a "Blue Ocean" strategy that goes beyond price discount. They need soul. They need understanding of the perception of their target market.

• What do they want?
• What are their hopes and fears?
• What is their perception?

I can order a book or DVD from Amazon and receive it the following day. I can download music instantaneously from iTunes. There are millions of me in the world. What kind of "Blue Ocean" strategy can WH Smith or HMV devise to get me away from my laptop? It takes me half an hour to drive to the town centre, pay for parking, spend another half an hour in WH Smith or HMV and another half an hour to drive back home.

The 64 million dollar question is: What can WH Smith or HMV do to make it worth my while?

Let me give them a clue, I could order my groceries online, however, I choose to go to the supermarket. What is the difference? That is for book, DVD, electronic and furniture retailers to find out. They probably need to visit Starbucks it might just hold the keys to unlocking their creativity.

The only point of differentiation that most retailers know is price reduction. Price reduction is not a business strategy, it is a death wish.

New Manufactured Home Foundation Essentials – 2 Must Have Upgrades

When purchasing and installing a new Manufactured Home, there are two upgrades that are recommended. They are installing a Vapor Barrier and Earthquake Bracing. Each is explained here:

Mobile Home Vapor Barrier

A Vapor Barrier for a Mobile or Manufactured home is a sheet of thick, rubbery plastic that goes directly over the dirt under a Mobile or Manufactured home. The foundation piers then rest on top of this barrier.

You really need to make sure a home you buy or have installed has this protection. Mobile and Manufactured homes need dry ventilation underneath. This barrier will prevent any moisture from damaging the home – especially rotting of the floors, but also helping with fungus, mold, and termites.

Making sure that a vapor barrier is installed before you buy a Mobile or Manufactured home is absolutely necessary. And the additional cost is very minimal considering the amount of protection you gain.

If you are buying a mobile or manufactured home that is already on a space, but with no vapor barrier, then you can hire a contractor to install a vapor barrier under the home. They will just have to cut pieces that will go around the pier-and-post foundation and all piping in place. This is not ideal, but way better than no barrier at all.

Mobile Home Earthquake Bracing

Earthquake bracing is recommended in California, and elsewhere earthquakes are common. Mobile Homes and Manufactured Homes are especially susceptible to damage in a earthquake due to their foundation system (most of the time they are installed on a pier-and-post system).

Earthquake bracing is a simple upgrade that can increase the value of your home by at least the cost of installation of the bracing. This cost is running from $ 2000 to $ 4500 in California right now. The actual brace is like a shock absorber in a car, but installed at an angle from the steel I-beam on the bottom of the home, and anchored to the ground. This brace will keep the home from shifting off the pier-and-post foundation.

Insurance companies may insist on having earthquake bracing installed if you want to purchase earthquake insurance on your Mobile Home or Manufactured Home.

Earthquake bracing can also help a Mobile Home not come off the foundation in high winds, although it is not designed to do this and should not be relied on for this.

Further explanation and Pictures on upgrades both of these, color : as well color : as a whole bunch of <br> free information, tips, advice, and Recommendations can be found at: Http://www.free-mobile-home-info.com

Traditional Vs Lean Manufacturing Concepts

When we think about lean manufacturing we think about work cells, kanban cards, TQM and so on. But many people do a basic mistake. That is the mistake of not understanding the concepts on which lean manufacturing built on. Many people who copied lean manufacturing failed because they did not understood the concepts behind lean manufacturing.

We shall give a simple definition to lean manufacturing before we go further. Lean manufacturing can be defined as a systematic approach to continuously identify and remove the wastes from the system. All the tools and techniques are based on fulfillment of this simple requirement.

To identify the conceptual difference between lean manufacturing and conventional manufacturing, we will have a look at the definition given above. There is a very important word to note. That is "Removing". Removing of waste from the system might not sound very different to minimization of wastes in the system, what we talk in conventional manufacturing. But think carefully. These two words are very different in the context of manufacturing (or even services).

When you think about minimizing of waste, you are thinking about the current system where you have wastes. You think about minimizing those wastes by fine tuning the system. When you think about eliminating or removing wastes from the system, you will have to find the causes for the wastes and remove them from the system. This means that you will have to redefine the process in a way that there are no wastes generated. So in the first case you live in the system where there are wastes, and struggle to get some improvement. In the later, you change the system so that system itself will not have the wastes. Are not they really different?

I will give you one more example to clarify the conceptual difference between lean manufacturing and traditional manufacturing. Think about Work In Progress (WIP). In a traditional manufacturing process WIP is treated as an asset which helps to run the process smoothly. Lean manufacturing though, treats WIP as a waste itself. Further, lean manufacturing treats WIP as a mirror which reflects the imperfection of the system.

I can go on and on explaining conceptual differences these systems have. But it is very important to understand one thing about lean manufacturing. Lean manufacturing is not a fine tuning to the traditional manufacturing system you had. It is a completely different system. To be able to implement lean manufacturing correctly, understand the conceptual differences between lean manufacturing and traditional manufacturing.

Lean more about To lean manufacturing and get your <br> free e-book "lean manufacturing basics" visit Http://www.leanmanufacturingconcepts.com

How to Outline Your Financial Goals

People save and invest to improve their quality of life. However, it is easy to make mistakes that can cause stress and cost you money. You can avoid those mistakes and keep your investment on track by outlining your financial goals.

It is a common investment mistake for investors to have no idea why they are investing. So, you should ask yourself …

Why are you investing?

Do you know why you are investing? What are you going to do with your money? What is most important in your life?

"Making money" is not a good enough reason to invest. How do you see yourself spending your money in a year? Five years? Ten years? If you can clearly explain your goals, you have taken the first step toward making your own investment plan.

With that in mind, write down your financial goal. One simple sentence is all you need. For example, you can write "buy a home", "pay for college," "start a business," or "retire as a millionaire!"

Next, write down the amount of money you think you will need to accomplish your goals.

Do not worry about trying to fit in every little cost. You can always revisit your target later when you check your performance. Focus on your goal, and try to write down a target number.

This number will be different depending on your goal. For example, maybe you're buying a $ 100,000 home, you may want to save $ 10,000 for a down payment. Maybe you need $ 5,000 to start a business or $ 50,000 to pay for college. If you do not have much money to invest, you can make up for it by investing over a long period of time.

Finally, consider the importance of your investment goals. How important is your retirement, your kid's college tuition, or your down payment on a house? The importance of your investment will give you an idea of ​​your risk level.

Every investment has risks.

You do not want to take too many risks. However, you need to take some risks to earn a reasonable return. Also consider the amount of time you will be invested. If you have more time to invest, you may be able to take risks and still catch up if you run into trouble.

Ask yourself if you are ready to invest before you move on. Be honest with yourself.

You may not need to invest your money. Would you be better off paying off your debt? Can you afford to just save your money rather than invest it? Make sure you can commit enough money and time to investing.

It is important to stay motivated toward your goals and keep them in mind when you invest. Every investment decision you make should move you closer to your goals. You should be willing to learn, improve, and work toward your goals as you invest.

If you can stay committed and keep that motivation toward your investment goals, you are much more likely to succeed!

A. Michael Hayes, Jr

You can learn more You about how to Achieve your financial Goals at my website, Great-Mutual-Funds.com .

Importance of Acquiring Knowledge in Business

Knowledge is a resource referred to as knowledge capital or intellectual capital in a business. It is the essential element that allows businesses to operate in the market sector. The knowledge of the organization is within the human capital of the organization. Despite the rapid global changes, knowledge addresses key issues that can lead to successful management within organizations and can be used as leverage in collective bargaining of existing knowledge and creating new ones.

Understanding customers' needs and the business environment is a huge interface of information. If a market research is done, then the knowledge of the market can be integrated to the target clients specifically in developing new products / services and improving existing ones.

Having knowledgeable staff sets the business on a competitive edge because it helps the business run more smoothly and efficiently. For example, knowing customers' needs and feedback to develop products or services to ensure that their needs are met.

Moreover, monitoring and reporting the changes in the business world is also needed. Knowledge in building networks by professional associations and trading partners can provide an easy way to find out what the competitors are doing and to see the latest innovations in the market sector. Making product research and development is a vital source of knowledge that can help in retaining competitive edge.

Furthermore, using knowledge more effectively can improve goods / services offered. You can increase customer satisfaction. Knowledge of the market can result better awareness of what customers want and what the staff require. Knowledge or information sharing can also improve staff productivity.

In order to manage the utilization of knowledge, there is a need to build a culture in which knowledge is valued across the business to retain the competitive advantage and understand the characteristics of the target market.

Knowledge of the business can help entrepreneurs evaluate and understand the needs of potential customers and develop products / services that meet customer satisfaction since possible customers show different behavior patterns and preferences such as brand loyalty and the like.

Through knowledge acquisition, business supply chain management is visible everywhere and anywhere. It leads to faster growth and development. It also impacts the competitive advantage and become strategically important to understand knowledge transfer in a more predetermined fashion. The sustainability of organization depends largely on the acquisition of knowledge with a continuous learning process.

Hence, knowledge is vital to any organization because it empowers entrepreneurs to take informed decisions, improve services, produce better marketing decisions and increase profitability.

How to Evaluate Your Finance Department

Nobody knows your business better than you do. After all, you are the CEO. You know what the engineers do; You know what the production managers do; And nobody understands the sales process better than you. You know who is carrying their weight and who is not. That is, without were talking about the finance and accounting managers.

Most CEO's, especially in small and mid-size enterprises, come from operational or sales backgrounds. They have often gained some knowledge of finance and accounting through their careers, but only to the necessary necessary. But as the CEO, they must make judgments about the performance and competency of the accountants as well as the operations and sales managers.

So, how does the diligent CEO evaluate the finance and accounting functions in his company? All too often, the CEO assigns a qualitative value based on the quantitative message. In other words, if the Controller delivers a positive, upbeat financial report, the CEO will have positive feelings towards the Controller. And if the Controller delivers a bleak message, the CEO will have a negative reaction to the person. Unfortunately, "shooting the messenger" is not at all uncommon.

The dangers inherent in this approach should be obvious. The Controller (or CFO, bookkeeper, whoever) may realize that in order to protect their career, they need to make the numbers look better than they really are, or they need to draw attention away from negative matters and focus on positive matters. This raises the probability that important issues will not get the attention they deserve. It also raises the probability that good people will be lost for the wrong reasons.

The CEO's of large public companies have a big advantage when it comes to evaluating the performance of the finance department. They have the audit committee of the board of directors, the auditors, the SEC, Wall Street analyst and public shareholders giving them feedback. In smaller businesses, however, CEO's need to develop their own methods and processes for evaluating the performance of their financial managers.

Here are a few suggestions for the small business CEO:

Timely and Accurate Financial Reports

Chances are that at some point in your career, you have been advised that you should insist on "timely and accurate" financial reports from your accounting group. Unfortunately, you are probably a very good judge of what is timely, but you may not be nearly as good a judge of what is accurate. Surely, you do not have the time to test the recording of transactions and to verify the accuracy of reports, but there are some things that you can and should do.

  • Insist that financial reports include comparisons over a number of periods. This will allow you to judge the consistency of recording and reporting transactions.
  • Make sure that all anomalies are explained.
  • Recurring expenses such as rents and utilities should be reported in the appropriate period. An explanation that – "there are two rents in April because we paid May early" – is unacceptable. The May rent should be reported as a May expense.
  • Occasionally, ask to be reminded about the company's policies for recording revenues, capitalizing costs, etc.

Beyond Monthly Financial Reports

You should expect to get information from your accounting and finance groups on a daily basis, not just when monthly financial reports are due. Some good examples are:

  • Daily cash balance reports.
  • Accounts receivable collection updates.
  • Cash flow forecasts (cash requirements)
  • Significant or unusual transactions.

Consistent Work Habits

We've all known people who took it easy for weeks, then dropped an all-nighter to meet a deadline. Such inconsistent work habits are strong indicators that the individual is not attentive to processes. It also sharply raises the likelihood of errors in the frantic last-minute activities.

Willingness to Be Controversial

As the CEO, you need to make it very clear to the finance / accounting managers that you expect frank and honest information and that they will not be victims of "shoot the messenger" thinking. Once that assurance is given, your financial managers should be an integral part of your company's management team. They should not be associated to express their opinions and concerns to you or to other department leaders.

The Evolution of Leadership: An Academic Perspective – Nu Leadership Series

"Wealth in the new regime flows directly from innovation, not optimization; that is, wealth is not gained by perfecting the known, but by imperfectly seizing the unknown."
Kevin Kelly

Let's focus closely on the modern development of leadership thought. According to Georgia Sorenson, author of An Intellectual History of Leadership Studies: The Role of James MacGregor Burns, the word "leader" first appeared in the 1300s and stemmed from the root leden, meaning "to travel" or "show the way." Leadership was defined five centuries later. Traditionally, managing both the technical and human components has posed problems for leaders for centuries.

Between 1945 and 1960, leadership scholars spent more of their effort on empirical research; however, from the 1970s onward, this research became theory driven. In developing strategies for this problem, researchers and practitioners have either adopted a "scientific" or "behavioral" approach. This fact is where the school of management thought evolved. The school of management provides a theoretical framework for studying leadership thought.

Over the decades, management gurus have tried to organize and classify this enormous information related to management, and this is how the schools of management thought started. We will discuss the following schools: (a) the classical school, (b) the behavioral school, (c) the quantitative or management science school, (d) the systems school, and (e) the contingency school. Let's examine these schools more closely.

ERA Snapshot:

The classical school concept began in the 1800s. During that time, over 90% of Americans lived rurally. Between 1870-1900s, rural areas doubled and urban areas tripled. With the transition from a rural to industrial society, leaders lacked a process to motivate the unskilled workforce.

Conversely, the Industrial Revolution brought new jobs, mostly filled by immigrants. Although the Mid-19th Century America was a land of opportunity, workers were living in awful conditions while the industrial elites benefited. This period, then, created a host of new advances and new problems for organizational leaders.

Classical School

The classical school, which is the oldest formal school of management thought, generally focused on ways to manage work and organizations more efficiently. It can be further grouped into three areas which are scientific management, administrative management, and bureaucratic management. We will briefly discuss these areas and the leading advocates.

Scientific Management began in the 1880s. Previously, management decisions were viewed as arbitrary, and workers operated at a slow pace. Scientific management was developed to create a systematic method to improve efficiency. The key proponents were Frederick W. Taylor, Frank and Lillian Gilbreth, and Henry Gantt.

Administrative Management began in the 1940s. Unlike scientific management, administrative management focused largely on jobs and work at the individual level of analysis. It provided a more general theory of management. The key proponent was Henri Fayol.

Bureaucratic Management began in the 1920s. Earlier organizations were personality- and relationship-driven. A proposed form of organization called bureaucratic management was characterized by division of labor, hierarchy, formalized rules, impersonality, and the selection and promotion of employees based on ability. The key proponent was Max Weber.

ERA Snapshot:

When the behavioral concept began in the 1930s, there was a global depression that brought an abrupt shift from the fun-loving lifestyles of the Roaring 20s. As Socialists proclaimed the death of capitalism, Adolf Hitler was rising to power in Germany.

Technology was still progressing as global communication increased. Roosevelt's New Deal brought enormous governmental intervention into societal problems. Unfortunately, it was also the beginning of World War II in 1939.

Behavioral School

As a result of perceived weaknesses in the assumptions contained in the classical school, the behavioral school of management thought was created. Some felt that the classical school emphasized efficiency while disregarding the aspect of human behavior in organizations.

The behavioral school focused on trying to understand the factors that affect human behavior at work. The behavioral school was two subgroups, human relations and behavior science.

Human Relations can be traced to the Hawthorne Experiments in 1924 and concluded in the early 1930s. Two significant discoveries from the Hawthorne Experiments were found: a) workers' attitudes are associated with productivity and b) the workplace is a social system with informal group influences.

According to the human relation school, the manager should possess critical skills for diagnosing the causes of human behavior at work so that he could effectively lead employees. Some of the best-known contributors include Mary Parker Follett, Chester Barnard, Abraham Maslow, and Elton Mayo. Today, this school has influenced management theory and practice in such areas as applied psychology.

Behavior Science emerged in the 1950s and 1960s . Behavior science was a natural progression of the human relations school of thought. It focused primarily on applying conceptual and analytical methods to the problem of understanding and predicting human behavior in the workplace.

Some of the major contributors include Douglas McGregor, Frederick Herzberg, and Ralph Stogdill. This school has contributed to the study of management by focusing on several areas such as personality, values, and leadership.

ERA Snapshot:

When the quantitative concept began, it was a decade dominated by World War II, which was widely viewed as the most destructive war in history. This decade marked the transition period between the radical 1930s and the conservative 1950s.

One the economic front, the Marshall Plan, implemented by the US, gave billions of dollars for reconstructing war-devastated economies. Technology was being designed for major destruction. The first nuclear bomb was created, which dramatically changed international relationships.

Quantitative School

This school emerged in the 1940s. The quantitative school objective was to increase the quality of managerial decision-making by applying mathematical and statistical approaches.

This school was derived from the scientific management. The quantitative school was in three subgroups: management science, production, and operations management.

Management Science developed during World War II as strategists tried to solve war related problems. Management Science utilizes mathematical and statistical approaches to solve management problems.

Management Information Systems and Management Science are interconnected. The key proponent was George Dantzig. Today, this approach is being used in industry. An example would be a decision support system.

Production and Operations Management

This school began in the 1940s. It focuses on operation and control of the production process. Its roots were similar to management science because it resulted from the war. Operational management targets productivity and quality of an organization.

The key proponent was W. Edward Deming. Some of the areas of study include computer integrated manufacturing and just-in-time inventory systems.

ERA Snapshot:

When the systems concept began in the 1950s, the decade echoed the return of conservative values
and the return to the 1920s-type consumer society. The 1950s marked a rapid rise in the conflict with the Eastern Bloc and the Soviet Union.

The Cold War generated the Arms Race, Space Race, McCarthyism, and the Korean War. It also marks
the return of the GIs and a baby boom. There was a high rate of unionization in industry and most of the technology supported the Cold War.

During this time, most of the earlier internal American problems such as women's rights and civil rights were now suppressed as Americans settled into suburban life; however, suppressing these social issues would have a significant impact on the 20th Century.

Systems School

This school began to have a strong impact in the 1950s. The system school focused on understanding the organization as an open system that transforms inputs into output.

Managing techniques that would allow managers to relate different specialties and parts of the company to one another as well as external factors were used. In the systems theory, an organization is defined as a system with objectives. The school is built on the works of Ludwid von Bertalanffy, a biologist.

ERA Snapshot:

When the contingency concept began in the 1960s, the decade was a time of great social changes in the country. Many of the changes were reflective of the demographic changes brought by the baby boom generation, height of the Cold War, and dissolution of the European colonial empires.

The Social revolution, civil rights movement, anti-War movements, human rights movement, and the Counterculture movement placed America in an unstable position. During this timeframe, protectionist, command, and mixed economies reached a peak.

Contingency School

This school began in 1960s. The contingency school focused on applying management principles and processes primarily dictated by each unique situation. In the contingency theory, a leader's ability to lead is contingent upon various situational factors. Its application has been on management issues such as organizational design, job design, motivation, and leadership style.

A few of the major contributors are Fred Fiedler, Joan Woodward, and Paul Lawrence. The Contingency Theory states that the leader's ability to lead is contingent upon various situational factors.

Obviously, these schools made a significant contribution to modern day management, and these early results provide a blueprint for the current leadership paradigms in organizations.

References:

Barnet, T. (nd). Management Thought. On February 15 Received, 2006 from Http://www.referenceforbusiness.com/management/Log-Mar/Management-Thought.html .

Bass, B. (1999). Bass & Stogdill's Handbook of Leadership. New York, NY: The Free Press.

Krooss, H. & Gilbert, C. (1972). American business history. Englewood Cliffs, NJ: Prentice-Hall, Inc.

Northouse, P. (2004). Leadership Theory and Practice. Thousand Oaks, CA: Sage Publications.

SEDL. (2006). History of leadership research. On February 10 Received, 2006 from Http://www.sedl.org/change/leadership/history.html .

Sorenson, G. (2002). An intellectual history of leadership studies: The role of james macGregor burns. American Political Science Association. 1-16.

Whitsett, D. & Yorks, L. (1995). From management theory to business sense. San Francisco, CA: Jossey-Bass Publishers.

Wikipedia. (2006). On February 16 Received, 2006 from Http://en.wikipedia.org/wiki/Main_Page .
Wren, D. (2005). The Evolution of Management Thought. Hooboken, NJ: John Wiley & Sons, Inc.

5 Most Popular Types of Industrial Equipment

There are many forms of industrial equipment used in the workplace. Industrial equipment is usually large and made of materials such as steel and titanium for optimal strength. These machines are often needed to lift and move materials which may possibly weigh thousands of pounds.

A piece of industrial equipment which is not in working order should never be used for any reason. All equipment is inspected at the beginning of everyday to ensure they are in the best condition for workers.

By now, there are a million pieces of industrial equipment racing through your head but the question is, which ones are the most popular and most crucial to the industrial field? Below you will find five types of industrial equipment which are known to be the masters of all machines in the industrial workplace:

1. Bulldozers – Bulldozers are massive machines which are used mostly in the construction and mining industries. Bulldozers have the ability to lift and move vast amounts of dirt and other debris from one place to another. Bulldozers can operate in many conditions including snow, hail and rain. These pieces of equipment are generally used to dig up the ground and provide room for building houses or other types of buildings.

2. Cranes – Cranes are generally used to transport hard, heavy items from one place to another. The arm of the crane is used to swing the object from one place to another and the arm can be adjusted according to how far the materials need to go. Unlike bulldozers, cranes have the ability to transport objects over uneven levels of ground.

3. Excavators – Excavators are engineering vehicles which consist of backhoes and cabs. They are mainly used in the digging of trenches, foundations and holes. They can also be used to destroy objects which are no longer needed for any reason and in which case need to be compressed and condensed.

4. Fork Lifts – Forklifts are warehouse vehicles which are used to lift, hoist and transport extremely heavy items from one place to another. Forklifts are known to be indispensable pieces of equipment in many industrial workplaces.

5. Compressors – Most of the pieces of equipment listed above are used for construction purposes, however compressors are generally used in more of a factory-type setting. Compressors are used to provide high pressures of air or other forms of gases. These devices can be regulated in order to maintain the desired amount of pressure in the tank.

There are many other forms of industrial equipment. Each piece of equipment is designed to perform a specific task which contributes to the overall success in this field of work. Without these forms of equipment many industrial areas would not exist.

The Millionaire Mind Money Management Plan

One of the most important books that I 've read during the past year is T. Harv Eker's Secrets of the Millionaire Mind. I want to review and share a savings plan that Eker shares in Chapter 14 called the Millionaire Mind Money Management Plan. Eker begins his chapter with these words:

Rich people manage their money well, Poor people mismanage their money well.

It's an excellent chapter, and I'm going to share with you a summary of the financial management plan that will set you on the right path to building wealth. It's important in all things resulting in success that you take action. So, no matter what you can start with, even if it's a dollar a month, you must take action and begin to manage your money.

Some people say, "Well, when I get ahead financially, I'll manage my money." That's a poor person mindset! The millionaire mind begins to manage now, because if you can manage a little, then you'll begin to manage a lot. I was SO into this way of thinking in the past. When I turned it around and began to manage money, I started to get wealthy!

Before I share the money management plan, here are some wealth principles from the chapter and that Eker teaches at his Millionaire Mind Intensives.

  • Until you can handle what you've got, you will not get any more!
  • The habit of managing your money is more important than the amount.
  • Either you control money, or it will control you.

So, how exactly do you manage your money? Here's a great plan from the book. Remember, it's important to start, not the amount. Start with $ 1 if you must; just start! Get the habit going!

Prepare 6 jars ( "Jars" can be literal, or bank accounts, or categories on a spreadsheet).

Place the following amounts in each of the jars every month after taxes.

  1. Financial Freedom Account (10%) – used only for investments and buying or creating passive income streams. Money is never spent, only invested. Also, have a Financial Freedom Jar where you deposit money each day ($ 1, $ 10, loose change). Do something daily.
  2. Play Account (10%) – Use this money to nurture yourself. Use it for extra-special things in your life. The only guideline is that you must spend the money every month. Use it each month in a way that makes you feel rich!
  3. Education Account (10%) – Set aside money for your education (school, seminars, etc.) Or your child's education.
  4. Long-term Savings for Spending Account (10%)
  5. Giving (10%)
  6. Necessities Account (50%)

Start the plan and let the universe know that you are ready for more money.