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Key Functional Areas and Essential Elements of a Company

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Key Functional Areas of a Company

A company should be considered a global system comprised of several subsystems. We understand each basic area of the various functions performed by the company in the development of its business, which are necessary to achieve its ultimate goals. The establishment, organization, coordination, delineation, etc., of these areas is based on the direction of the company.

Supply and Production Area

The primary function of this area is to responsibly provide raw materials in the most advantageous way possible for the company, considering both physical and economic conditions. It also controls the entire process of transforming these materials into finished products, sometimes storing these products until their sale.... Continue reading "Key Functional Areas and Essential Elements of a Company" »

Software Project Management: Essential Skills and Team Structures

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Effective Software Project Management: Skills and Team Structures

Qualities of an Effective Software Project Manager

  • Problem Resolution: An efficient software project manager can diagnose the most relevant technical and organizational aspects to structure a systematic resolution or properly motivate other professionals to develop the solution. This involves applying lessons learned from past projects to new situations, while remaining flexible enough to adapt management if initial attempts to solve the problem are unsuccessful.
  • Leadership and Management Skills: A good project manager must take the lead. They must have the confidence to take control when needed and the security to allow technicians to follow their good instincts.
  • Incentivizing
... Continue reading "Software Project Management: Essential Skills and Team Structures" »

Secondary Cost Allocation in Cost Accounting

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Secondary Cost Allocation

The secondary cost allocation can take two forms:

Direct Redistribution

The expenses of auxiliary sections are transferred directly to the main sections. It's simple and fast but does not take into account the possible benefits that may occur between the auxiliary sections.

Indirect Redistribution

This procedure takes into account possible benefits from auxiliary sections. Part of the cost of the auxiliary sections is moved to other auxiliary sections before the final distribution of the remaining sections.

Two Types of Indirect Redistribution

  • Unilateral Cascade: First, sections are sorted in increasing order of importance in terms of expenses absorbed or higher, depending on the amount supplied. It then moves the cost of
... Continue reading "Secondary Cost Allocation in Cost Accounting" »

Strategic Planning: A Guide to Organizational Success

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Strategic Planning

Definition

Planning involves selecting missions and objectives to reach a decision. Relationship planning and control handles objectives, enabling control over planning and execution.

Types of Planning

  • Inactive: Satisfied with the status quo.
  • Reactive: Resist change and value experience.
  • Proactive: Not content with the current state but await the future.
  • Interactive: Design and plan the future.

Strategic Planning Process

Strategic planning defines the company's vision and mission, crucial for its success. Poor planning can lead to failure.

Strategic Planning Model

Elements include inputs, encompassing everything involved in the company or product.

Organizational Structures

Group Structure

Advantages
  • Reflects functions.
  • Simplifies training.
... Continue reading "Strategic Planning: A Guide to Organizational Success" »

Understanding the Rational Allocation Model for Cost Management

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Understanding the Rational Allocation Model

The rational allocation model is a complementary model to homogeneous sections, which takes into account the level of activity of the company. Its basic premise is that variations in the level of activity cause changes in the cost figures from the perspective of the Full Cost. It is intended to prevent fluctuations in activity levels from affecting the cost of products, and therefore the outcome of the exercise.

Variable Costs

Variable costs are totally related to the level of activity. Therefore, these costs will increase or decrease as the level of activity does. These variable costs (VC) are usually fixed per unit of product. Therefore, they will not present distortions in the cost figures.

Fixed Costs

Fixed... Continue reading "Understanding the Rational Allocation Model for Cost Management" »

Ecosystem Approaches: Principles for Sustainability

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Ecosystem Approaches Defined

Ecosystem approaches represent a line of thought and methodological strategies for analyzing and modeling the complex system of biophysical interrelationships, including humans, that define the biosphere. They take the ecosystem as a unit of study and search, through existing knowledge, for unifying principles to explain its organization and dynamics. This helps to understand the workings of the natural environment and the cause-effect relationships that are established when these principles are applied.

Goals of Ecosystem Approaches

The ultimate goal of an ecosystem approach is to facilitate the creation of exploitation-conservation models for the natural environment, including resources that are sustainable over... Continue reading "Ecosystem Approaches: Principles for Sustainability" »

Workplace Psychosocial Risks and Prevention

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Impact of Psychosocial Factors

Physiological Consequences

Such problems occur, leading to increased blood pressure, fatigue, muscle tension, sleep disorders, and psychosomatic symptoms.

Psychological Consequences

Workers may experience problems such as anxiety, irritability, dissatisfaction, difficulty making decisions, emotional exhaustion, and substance abuse.

Altered Behavior

Manifestations include obsessive, rigid, and unthinking behaviors, decreased work performance, absenteeism, excessive substance and alcohol use, and difficulties in personal and work relationships.

Physical Health Problems

Emergence of somatic complaints, musculoskeletal disorders, hypertension, gastric ulcers, loss of antibodies, and increased vulnerability to infection, which... Continue reading "Workplace Psychosocial Risks and Prevention" »

Agile vs Traditional Methodologies and Other Approaches

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Agile vs. Traditional Methodologies

This table compares key differences between Agile and Traditional software development methodologies:

Agile MethodologyTraditional Methodology
Few artifacts. Modeling is dispensable, with disposable models.More artifacts. Modeling is essential, with maintained models.
Few, more general and flexible roles.More roles, more specialized.
No traditional contract; should be fairly flexible.There is a fixed contract.
Customer is part of the development team (in addition to being in-situ).The customer interacts with the development team through meetings.
Aimed at small projects. Short term (or frequent deliveries), small teams (<10 members) working on the same site.Applicable to projects of any size, but tend to be especially
... Continue reading "Agile vs Traditional Methodologies and Other Approaches" »

Production Systems: Types, Functions, and Relationships

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Production System

Physical and abstract

Natural and processed

Of man and machine

Systems and subsystems

Production System can be classified into two processes and orders

Relationships and Constraints of Production Systems

They can be grouped into two classes: the objectives and resource constraints

The Production Function

Interrelation: what, how, and for whom

To produce, how to produce, and for whom

Productivity and Production Function

Productivity is the ratio of production achieved and resources used to obtain it

The production function should focus on physical and economic activities

Physical function: generating goods and services

Economic role: generating utilities

Social function: generates changes

Types of Production Systems

  • Continuous production
  • Intermittent
... Continue reading "Production Systems: Types, Functions, and Relationships" »

Maintenance Productivity Indicators: A Comprehensive Guide

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Chapter 5: Maintenance Productivity Indicators

Introduction

As discussed in Chapter 2, effective maintenance management not only boosts productivity within the maintenance department but also positively impacts the entire enterprise. To assess a plant's status, it's essential to measure various processes, including the performance of both physical and human resources. Companies use key performance indicators (KPIs), calculated over specific periods and compared with previous periods, to achieve this.

Using Performance Indicators

This comparison allows administrative and supervisory directors to understand the current business state and identify opportunities for process improvement, efficiency gains, and performance enhancements. Performance... Continue reading "Maintenance Productivity Indicators: A Comprehensive Guide" »