Decisions Based on Data vs Feelings - Research Paper Example

? Technology Management Introduction The major automotive suppliers of Tier have given the significant autonomy to the individual plant in order tofoster a strong competitiveness and innovative culture. It is true that, each and every plants are responsible for own bottom line. This particular entrepreneurial approach generated significant and important profit through effective and aggressive cost management strategies. However, the major role of the corporation is to direct the growth of the production and cost. On the other hand, the role of plants is to manage the production and cost based on the framed strategies by the corporation (Cohan, 2003). Too much automation and aggressive strategy can damage the performance of the organization when the decisions do not support the corporate directions. This aggressive automation can expose the organization to several unmanaged risk factors due to the lack of effective knowledge about the balanced approach. Short term thinking and lack of expertise can damage the business operation management of the organization. This report will determine the bottom-line impact of unmanaged technology on the business performance of the organizations. Analysis It is discussed earlier that too much automation can affect the business operation of a corporation. In terms of industrial fluid disposal and usage, list of poor fluid maintenance practices combined with several in adequate fluid choice can result loss of goodwill and significant operational cost. However, inadequate cost management due to the lack of effective knowledge can erode the bottom line on the daily basis that can impact the long term viability and competitiveness of several strategies and operational facilities (Hunt & Weintraub, 2007). The corporations are exposing themselves to excessive business operation cost and unmanaged risks due to seven key reasons. These reasons are discussed below. Poor Process Control Majority of the organizational facilities utilize more fluid than are required. It exposes the corporations to critical risks due to lack of establishment of robust and control strategy for all the fluid applications. However, this fluid condition can be changed dramatically. An effective and specific control plan needs to be undertaken by the organization management. An effective management programme can enhance the significant process control that is important for the productivity and cost control. In several cases, the acceptable range of the fluid condition can be extended as it may not result in the fluid related events. A strict and tightly management control plan can eliminate excessive use of fluids. Decisions based on data vs. Feelings Every manufacturer knows that, analytical data is quite important when addressing a particular manufacturing issue, responding to a specific quality concern or developing plan for the next step. It is true that, most of the facilities are effective at collecting quality, financial and production related data, but fluid analysis data is rarely collected, correlated, compiled and interpreted due to the specific specialized nature of the interpretation (Haneberg, 2012). Fluid management generally tends to non-core expertise in a particular manufacturing environment. Major characteristic of this fluid management is non-core focus. Several organizations consider that the fluid condition can effectively impact manufacturing, quality and availability, but major significance of this aspects to drive daily decision making process. It is the corrective action executed on daily basis based on the information and data that result in risk management and cost minimization. Hesitance to change Management risk and direct costs are associated with the product change. This relation is quite significant. Due to this, the organization hesitates to implement product change management process on the floor of several manufacturing plants. Recently, the product vendors are making various critical claims about the significance and benefits of greatest and modern developed products. However, these manufacturing plants do not have any reliable means to quantify, evaluate and manage the product change management process. Most of the operational facilities face several challenges in the evaluation, managing conversion and process control. It is important for the organization to effectively manage the change process as it is essential to drive sustainable and continuous improvement. Inadequate fluid maintenance practices When the technological factors are appropriately suited to the fluid contamination and other fluid aspects, then the fluid maintenance can be significantly extended to the usable life of those products. Fluid contamination management level within a particular closed loop business operating sump has numerous benefits and advantages to the particular assigned operation. Effectively implemented, fluid maintenance can expertly reduce the consumption rate of fluid. Moreover, this process can helps to reduce the waste generated volume and amount of production and labour downtime that are needed for the change-out systems. In addition, health and safety issues can be created from inadequate quality of air due to the intense contamination of fluids. Therefore, it can be stated that the fluid maintenance process need to be reviewed effectively in order to limit the waste and fluid cost. Inadequate Fluid Recycling Process Recycling is one of the important business operation processes that helps an organization to reduce operational cost. Moreover, effective recycling process reduces the consumption level of the resources that are needed for business operation. The on-side recycling of fluids can save significant operating cost of an organization. Moreover, the organization can achieve huge reputation within the competitive global business environment. Poor implementation and management of fluid maintenance can increase the recycling cost of the organization. It is important for the organizations to appoint an external consultant and skilled management group to guide the organization towards an effective fluid recycling process. Fluid which is reverts back to the process that cannot meet the specification. As a result, it can create several safety and health issues. Moreover, it can develop negatively impact equipment and process performance problems (Benson, & Bugnitz, 2004). However, it is recommended that the technologies should be appropriately suited to the fluid to overcome these issues. Moreover, the fluid contamination needs to be recycled to an effective specification that can fulfil the performance requirement. Fluid collection, treatment, segregation and distribution need to be integrated with the engineered design. It is important for the organization to avail specialized knowledge that can establish validation and testing of the recycled fluid quality. It is important to ensure that the fluid continues to provide measurable savings. High dependability on the product supplier It is true that, the end users do not have that much expertise in house. They depend heavily on the trusted product manufacturers and suppliers in order to provide valuable suggestions and recommendations related with the management method and product choice. It is quite unfortunate that, several effective intentioned suppliers cannot provide necessary valuable resources to the particular site. Moreover, lack of specialized knowledge about the management concept and support system are stopping them to control and improve the growth drivers. In case of resource limited manufacturing environment, suppliers generally suggest appropriate approaches to the end users. Testing for free is not an acceptable job. However, several events that are initiated cannot offer4 the corrective actions and frequencies in the optimization of fluids and waste cost control. Lack of integrated business management strategy Strategy integration is an important aspect for every business entity. A well managed and a well developed manufacturing and processing facility cannot effectively integrate several process associates and department with the widget building process. HS&E, maintenance, production and quality all work together to reduce the operation cost. This integrated business process helps to deliver the products and service according to the needs of customers and market demand. Major responsibility of a fluid manager is to deliver a fluid in a cost effective process which can be applied to the organizational production process in a cot effective way. Therefore, it can be stated that, all the departments need to be integrated in order to achieve the operational goal. In addition, the managers need to have effective and specialized knowledge about cost control operation management. When it comes specifically to the fluid management, the organizations tend to manage and control several cost centres (Allen & Wilburn, 2002). True sustainability and true cost savings generally come from the entire process management. The organization needs to treat all the aspects of fluid management, such as fluid maintenance, testing, fluid recycling, fluid change-outs, product selection, waste treatment, training and product distribution as an effective integrated operation process. It will help the organization to capitalize on the potential opportunities to reduce overall operational cost significantly. Conclusion Several leading organizations around the globe are trying to capitalize on the opportunities that have been developed due to the technological revolution. It is true that, organizations are trying to implement several unique strategies to avail several potential competitive advantages. It is true that, operational bottom line hugely impact on the business performance is it focuses on the automation operation process. Too much automation can create several risk factors for the organization. The organizations are sourcing more than sufficient amount of resources for the purpose of manufacturing. However, it can increase the operation and waste management cost. It is important for the organizations to integrate fluid maintenance, testing, fluid recycling; fluid change-outs, product selection, waste treatment, training and product distribution process all together to cost effectively deliver the products according to the market demand. References Allen, D., & Wilburn, M. (2002). Linking Customer and Employee Satisfaction to the Bottom Line. New York: ASQ Press. Benson, R., & Bugnitz, T. (2004). From Business Strategy to IT Action. New Jersey: John Wiley & Sons. Cohan, P. (2003). Great Demo. New York: iUniverse. Haneberg, L. (2012). The ASTD Management Development Handbook. Stamford: Cengage Learning. Hunt, J., & Weintraub, J. (2007). The Coaching Organization. London: Sage. Read More