Month Archive March 2017

Cutting Costs

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While it is true that there are unavoidable costs, because they are own production processes or indirect costs that they are performed, some authors, in addition to these expenditures, distinguish two types of costs, cost of quality itself, which is derived from the organization’s efforts to manufacture a product or generate a quality service offered, the “cost of non quality”, also known as the “price of default” or the cost of getting things wrong or incorrectly. The latter is defined as those expenses caused by inefficiencies or failures, which are avoidable, for example, rework, scrap, returns, repairs, replacements, care costs to complaints and enforcement of security requirements, among others. On the other hand, others include both the concept of cost of quality.

In this perspective, the costs associated with quality may involve one or more departments of the organization and services to suppliers or contractors, as well as to the means of delivery of the product or service This means that they are not without responsibility across sales, marketing, design, research and development, purchasing, warehousing, material handling, production, planning, control, installation, maintenance and service, etc. Hence, as far as you watch widely as the cost of quality, their importance and weight depend specifically within a business administration or their impact on processes aimed at improving the overall quality. Measuring quality costs is said to regard generally measuring quality costs is directed to high impact areas and identified as potential sources of cost reduction.

Those that can quantify the development and provide an internal source of comparison between products, services, processes and departments. The measurement of quality-related costs also reveals deviations and abnormalities in distribution of costs and standards, which often are not detected in routine work of analysis. Finally, and perhaps most important use, quantification is the first step toward the control and improvement. Benefits of quality costs Pagella Nelson gives us some who have a powerful and very positive impact in determining and consider that all sectors of company directly or indirectly contribute to achieve, maintain and improve the quality of products, processes and services.

The system must have a monthly assessment. There is also a week that management analyze the costs caused by internal losses in order to take corrective and preventive actions. Consider that in general the Quality Department will be responsible for that information on the cost of quality is available, but should be the responsibility of all areas to provide the information to prepare reports Some benefits are: – Reduced costs manufacturing. – Improved management. – Reduction of scraps. – Improved planning and scheduling of activities. – Improved productivity. – Increase the utility or benefit. – Satisfaction of doing the job right from the start. Definitely, the costs of quality are an integral part of production cost, being present in the results as reflected in the income statement of an organization, but not quantified separately, preventing their proper control and analysis, and hindering the implementation of any remedial measures and decision-making process

What’s New in the Treasury Department

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In his report of stability, the IMF said the U.S. housing market: “At the moment, no one knows when the market will bottom out of housing … It is necessary to stem the decline of U.S. housing market to stabilize the system as this will contribute to the recovery of households and financial institutions. ” Jaime Caruana, head of the IMF financial sector say about it: “The downside risks highlighted in the April report seem to materialize, leading to a vicious circle between the financial system and economy.” But not everything is negative in the U.S. mortgage market, and that since Congress approved the aid package for Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE), while four major U.S.

financial institutions , are working on mechanisms to generate funding for the sector. In relation to the initiative adopted by the United States Congress to aid the mortgage companies Fannie Mae and Freddie, it provides emergency funding and state guarantees for U.S. $ 300,000 million for home loans, thus aiding 400,000 proprietary debt and at risk of losing your home. This proposal in conjunction with the initiative to generate funding for the mortgage industry, are two key elements through which the U.S. government seeks to recover the real estate sector. The secretary of the U.S.

Treasury, Henry Paulson, tried to show optimism about, announcing that the four largest banks are ready to give impetus to a market of asset-backed bonds, which could help significantly expand the mortgage financing. The Bank of America (NYSE: BAC), Citigroup (NYSE: C), JPMorgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC) are working on the design of these emissions that seek the promotion of the sector. From the Treasury Department designed a series of recommendations for good practice for the issuance of bonds backed of this nature that prevents them producing unnecessary risks. Speaking of Paulson: “I think backed bonds have the potential to increase mortgage financing, improve placement standards and strengthen U.S. financial institutions by providing a new source of financing. ” Are these two measures for the recovery of the housing market? At first, it seems not. While they are useful measures that avoid a major crisis and encourage the mortgage industry, there are still serious risks to other sectors, such as the credit card that threaten to increase the magnitude of the problem and make the impulses try with these measures lose effectiveness. Certainly, all these initiatives to boost the U.S. economy and overcoming the crisis, are helpful, but you can not believe they are the ultimate solution to the problems and they are still many risks that have not been changed in new outbreaks of the crisis. Given this, the only thing left is to hope that the passage of time go by deactivating those risks.