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242 – Business systems & procedures

Q.1 – Explain the concept and need of business system and


procedures.
Systems and processes are the essential building blocks of our companies. Every facet of your
business—on the shop floor, in the warehouse or in the office—is part of a system that can be
managed or improved by applying correct principles.
A business system is designed to connect all of an organization’s intricate parts and interrelated
steps to work together for the achievement of the business strategy.

When we apply defined principles and practices to the systems and processes that deliver value to

our customers, we’re creating what is often referred to as a “business system.”


Creating effective business systems often unifies the problem solving and decision making of the
organization. Many common tools and methodologies are universally taught and expected to be
utilized by all levels. Several key management structures, such as a full-time Performance Excellence
office or systematic maturity assessments, are made a permanent part of the infrastructure. The
business system also encompasses how we lead our people and connect them to the operational
strategy.

Improving Top-Line Performance: Part of the business system is the development and
implementation of strategy creation, business processes and strategic planning throughout your
organization. Those foundational elements lead to a much more insightful way to investigate and
grow top-line revenue. In short, a business system takes care of your future. It ensures you meet
your customers’ expectations and improve your brand, which are key to growing a healthy business.
Meeting Customer’s Expectations: If you use a systematic approach, your organization will analyze,
measure, compare and test all the possibilities of what your customers want and don’t want. You
will have constant information on areas that need to be improved and, even more importantly, you
will begin to understand the unmet needs of customers. A business system is key to improving the
brand that the organization projects to your community, including customers, employees and
suppliers.

Consistent Results: Whether we are considering safety, quality or getting the job done in a timely
manner, a business system is designed to give you effective, efficient and repeatable results. In
short, the business system gives you a “process to fix your processes.”
Employee Engagement: The goal of the system is to enable proper education and opportunities to
all employees so they can complete their work more efficiently and effectively. We also seek to
harness their ideas and creativity and, in the process, increase their personal engagement.
Additionally, having the system in place allows you to quickly integrate new-hires, and makes it easy
for them to see their role within the organization and bring forth new ideas.
Reduce Cost and Increase Profits: It has been proven time and again that the implementation of a
sound business system helps reduce costs, but so will many things. A business system is intended to
reduce costs without taking the shortcuts that often lead to an erosion of profitability due to the
necessity to lower quality expectations or service levels.
The Lean Methods Group’s System of Performance Excellence
Strategy—the way the organization thinks and plans
Processes—the way the organization operations
People—the way the organization leads
Technology—the way the organization connects
The Power of a Business System
When implementing a business system based on Performance Excellence, there are at least eight
major changes that we want the organization to see quickly.
Value-Stream Based—Instead of assigning resources to projects based on financial priority, which
means they can be spread all over, we assign resources to a specific site or value stream to work a
series of projects. This creates focus, achieving significant transformation in that value stream and
allowing the local leadership team to become comfortable using new tools to solve problems. With
this approach, we build up islands of excellence much faster.

Such a value stream approach also allows for a more systematic project selection process.
Project Selection—Such a value stream approach also allows for a more systematic project selection
process. We don’t want to be haphazardly selecting projects but rather working on initiatives
designed to drive toward the achievement of the strategic goals and objectives of the business.
Move to Local—Nearly all improvement teams and kaizen events should be conducted at the local
site. No more conference room kaizens! This gets more point-of-action team members involved and
experiencing the process first-hand.
Pinpoint Focus—Improvement opportunities such as kaizen events should be scoped with a small
enough focus to allow for actual process improvements to be made DURING the run week. Thirty-,
60- and 90-day plans are good for creating a long-term view, but we want to see immediate results
both to the bottom line and in the lives of the employees doing the job.

Q.2 – Explain internal control in select procedures such as


recruitment.

Recruitment is a process of finding and attracting the potential resources for filling up the
vacant positions in an organization. It sources the candidates with the abilities and attitude,
which are required for achieving the objectives of an organization.
Recruitment process is a process of identifying the jobs vacancy, analyzing the job
requirements, reviewing applications, screening, shortlisting and selecting the right
candidate.
To increase the efficiency of hiring, it is recommended that the HR team of an organization
follows the five best practices (as shown in the following image). These five practices
ensure successful recruitment without any interruptions. In addition, these practices also
ensure consistency and compliance in the recruitment process.
Recruitment planning
Strategy development
Searching
Screening
Evaluation & Control
Recruitment process is the first step in creating a powerful resource base. The process
undergoes a systematic procedure starting from sourcing the resources to arranging and
conducting interviews and finally selecting the right candidates.
Recruitment Planning
Recruitment planning is the first step of the recruitment process, where the vacant
positions are analyzed and described. It includes job specifications and its nature,
experience, qualifications and skills required for the job, etc.
A structured recruitment plan is mandatory to attract potential candidates from a pool of
candidates. The potential candidates should be qualified, experienced with a capability to
take the responsibilities required to achieve the objectives of the organization.
Identifying Vacancy
The first and foremost process of recruitment plan is identifying the vacancy. This process
begins with receiving the requisition for recruitments from different department of the
organization to the HR Department, which contains −
 Number of posts to be filled
 Number of positions
 Duties and responsibilities to be performed
 Qualification and experience required
When a vacancy is identified, it the responsibility of the sourcing manager to ascertain
whether the position is required or not, permanent or temporary, full-time or part-time,
etc. These parameters should be evaluated before commencing recruitment. Proper
identifying, planning and evaluating leads to hiring of the right resource for the team and
the organization.
Job Analysis
Job analysis is a process of identifying, analyzing, and determining the duties,
responsibilities, skills, abilities, and work environment of a specific job. These factors help
in identifying what a job demands and what an employee must possess in performing a job
productively.
Job analysis helps in understanding what tasks are important and how to perform them. Its
purpose is to establish and document the job relatednessof employment procedures such
as selection, training, compensation, and performance appraisal.
The following steps are important in analyzing a job −
 Recording and collecting job information
 Accuracy in checking the job information
 Generating job description based on the information
 Determining the skills, knowledge and skills, which are required for the job
The immediate products of job analysis are job descriptions and job specifications.
Job Description
Job description is an important document, which is descriptive in nature and contains the
final statement of the job analysis. This description is very important for a successful
recruitment process.
Job description provides information about the scope of job roles, responsibilities and the
positioning of the job in the organization. And this data gives the employer and the
organization a clear idea of what an employee must do to meet the requirement of his job
responsibilities.
Job description is generated for fulfilling the following processes −
 Classification and ranking of jobs
 Placing and orientation of new resources
 Promotions and transfers
 Describing the career path
 Future development of work standards
A job description provides information on the following elements −
 Job Title / Job Identification / Organization Position
 Job Location
 Summary of Job
 Job Duties
 Machines, Materials and Equipment
 Process of Supervision
 Working Conditions
 Health Hazards
Job Specification
Job specification focuses on the specifications of the candidate, whom the HR team is going
to hire. The first step in job specification is preparing the list of all jobs in the organization
and its locations. The second step is to generate the information of each job.
This information about each job in an organization is as follows −
 Physical specifications
 Mental specifications
 Physical features
 Emotional specifications
 Behavioral specifications
A job specification document provides information on the following elements −
 Qualification
 Experiences
 Training and development
 Skills requirements
 Work responsibilities
 Emotional characteristics
 Planning of career
Job Evaluation
Job evaluation is a comparative process of analyzing, assessing, and determining the
relative value/worth of a job in relation to the other jobs in an organization.
The main objective of job evaluation is to analyze and determine which job commands how
much pay. There are several methods such as job grading, job classifications, job ranking,
etc., which are involved in job evaluation. Job evaluation forms the basis for salary and
wage negotiations.
Recruitment Strategy
Recruitment strategy is the second step of the recruitment process, where a strategy is
prepared for hiring the resources. After completing the preparation of job descriptions and
job specifications, the next step is to decide which strategy to adopt for recruiting the
potential candidates for the organization.
While preparing a recruitment strategy, the HR team considers the following points −
 Make or buy employees
 Types of recruitment
 Geographical area
 Recruitment sources
The development of a recruitment strategy is a long process, but having a right strategy is
mandatory to attract the right candidates. The steps involved in developing a recruitment
strategy include −
 Setting up a board team
 Analyzing HR strategy
 Collection of available data
 Analyzing the collected data
 Setting the recruitment strategy
Searching the Right Candidates
Searching is the process of recruitment where the resources are sourced depending upon
the requirement of the job. After the recruitment strategy is done, the searching of
candidates will be initialized. This process consists of two steps −
 Source activation − Once the line manager verifies and permits the existence of the
vacancy, the search for candidates starts.
 Selling − Here, the organization selects the media through which the communication
of vacancies reaches the prospective candidates.
Searching involves attracting the job seekers to the vacancies. The sources are broadly
divided into two categories: Internal Sources and External Sources.
Internal Sources
Internal sources of recruitment refer to hiring employees within the organization through −
 Promotions
 Transfers
 Former Employees
 Internal Advertisements (Job Posting)
 Employee Referrals
 Previous Applicants
External Sources
External sources of recruitment refer to hiring employees outside the organization through

 Direct Recruitment
 Direct Recruitment
 Employment Exchanges
 Employment Agencies
 Advertisements
 Professional Associations
 Campus Recruitment
 Word of Mouth
Screening / Shortlisting
Screening starts after completion of the process of sourcing the candidates. Screening is
the process of filtering the applications of the candidates for further selection process.
Screening is an integral part of recruitment process that helps in removing unqualified or
irrelevant candidates, which were received through sourcing. The screening process of
recruitment consists of three steps −
Reviewing of Resumes and Cover Letters
Reviewing is the first step of screening candidates. In this process, the resumes of the
candidates are reviewed and checked for the candidates’ education, work experience, and
overall background matching the requirement of the job
While reviewing the resumes, an HR executive must keep the following points in mind, to
ensure better screening of the potential candidates −
 Reason for change of job
 Longevity with each organization
 Long gaps in employment
 Job-hopping
 Lack of career progression
Conducting Telephonic or Video Interview
Conducting telephonic or video interviews is the second step of screening candidates. In
this process, after the resumes are screened, the candidates are contacted through phone
or video by the hiring manager. This screening process has two outcomes −

 It helps in verifying the candidates, whether they are active and available.
 It also helps in giving a quick insight about the candidate’s attitude, ability to answer
interview questions, and communication skills.
Identifying the top candidates
Identifying the top candidates is the final step of screening the resumes/candidates. In this
process, the cream/top layer of resumes are shortlisted, which makes it easy for the hiring
manager to take a decision. This process has the following three outcomes −
 Shortlisting 5 to 10 resumes for review by the hiring managers
 Providing insights and recommendations to the hiring manager
 Helps the hiring managers to take a decision in hiring the right candidate
Evaluation and Control
Evaluation and control is the last stage in the process of recruitment. In this process, the
effectiveness and the validity of the process and methods are assessed. Recruitment is a
costly process, hence it is important that the
performance of the recruitment process is thoroughly evaluated.
The costs incurred in the recruitment process are to be evaluated and controlled
effectively. These include the following −
 Salaries to the Recruiters
 Advertisements cost and other costs incurred in recruitment methods, i.e., agency
fees.
 Administrative expenses and Recruitment overheads
 Overtime and Outstanding costs, while the vacancies remain unfilled
 Cost incurred in recruiting suitable candidates for the final selection process
 Time spent by the Management and the Professionals in preparing job description,
job specifications, and conducting interviews.
Finally, the question that is to be asked is, whether the recruitment methods used are valid
or not? And whether the recruitment process itself is effective or not? Statistical
information on the costs incurred for the process of recruitment should be effective.

Q.3 – How bar coding RFID and biometric will make business
procedures efficient ?

Abstract
Recent research has indicated that even though construction materials and
components may constitute more than fifty percent of total project costs,
existing methods for managing them still depend on human skills. This
traditional data collection is time and labour-intensive, error-prone, and
unreliable, due to the reluctance of workforces to monitor and record the
presence of large numbers of material. Automating the task of identifying and
tracking construction materials can provide timely and accurate information on
materials available to the manager. This paper investigates a new approach for
integrating the latest innovations in ADC technologies for real-time data
collection in construction. In this approach, the combination of Radio
Frequency Identification (RFID), Global Positioning System (GPS), and General
Packet Radio System (GPRS) technologies can facilitate extremely low-cost,
infrastructure-free, and easy-to-implement solutions to uniquely
identify materials, components, and equipment. The presented system is fully
automatic and will lead to their location and tracking in three phases,
namely, production sites (off-site), en-route (shipping), and construction job
sites (on-site), almost instantaneously.
Keywords
Automation
Construction industry
Materials management
RFID
1. Introduction
Construction projects are extremely complex and often take place in an
uncontrolled, unprepared, and dynamic environment where each project goes
through several phases leading to completion. Because of this, modern
construction management requires real-time and accurate information for
sharing among all parties involved to undertake efficient and effective
planning, as well as execution, of the projects.
Material is a critical element in civil engineering construction projects and can
make significant contributions to the cost effectiveness of projects. This is
because the amount spent on materials is higher than other inputs, and may
account for 50%–60% of the total cost of a typical project [1]. Thus, planning
and managing the logistics of materials is crucial, as they directly affect
the construction schedule and the cost. For example, if a problem occurs, it
would then trigger cascading problems in other parts of the project, which
would result in production delays and cost overruns, as discussed by Cho
et al. [2]. Lack of materials when needed, inadequate identification of
materials, re-handling and inadequate storage are causes of delay or
unnecessary work. Potentially, this could lead to a loss in workforce
productivity and an increase in overall project costs.
2. Practical issues associated with the use of RFID in construction
Materials management is a distinct management system, which can make
significant contributions to the cost effectiveness of constructionprojects.
Materials play an essential role in construction to complete projects within
project deadlines and budgets. Some authors have developed RFID based
methods to automate the task of construction materials
management[10], [11], [12], [13], [14]. RFID has been used in some efforts to
improve tracking, delivery, and receipt and location of materials and
components, such as fabricated pipes [15], structural steelmembers [16],
engineered-to-order components [6], and interior decorating materials [17] in
lay down yards and under shipping in construction. In addition, RFID has been
used in some research to improve quality management performance [18].
3. Research methodology
To establish the background to the objective of this research, it was necessary
to identify the existing needs and problems, and to define the corresponding
objectives and scope. This necessitated a comprehensive literature review
including studies related to RFID applications in construction, automated
material management systems and technologies. The subsequent definition of
the processes and functions for materials tracking, such as shipping, receiving,
locating, issuing and organising space, are also needed. Supported by the
literature review, general requirements and a technology selection criterion
are developed. These requirements and technologies are discussed in
Sections 5 General requirements of a material tracking system, 6 Technology
review and selection.
4. Construction material management
A report published by the Business Roundtable. [25] claimed materials
management as a management system for planning and controlling all
necessary efforts, to make certain that the right quality and quantity of
materials and equipment are appropriately controlled in a timely manner with
reasonable cost, and are available when needed.

6. Technology review and selection


ADC technologies have matured technically and have become economically
feasible and viable in recent years. The main categories of technologies that
can contribute to real-time monitoring and control are identification
technologies, positioning technologies, and wireless data transmission
technologies.
RFID technology overview
An early, if not the first, work of exploring RFID is the landmark paper by Harry
Stockman, “Communication by Means of Reflected Power” cited in [28]. A RIFD
system consists of tags (transponder) with an antenna, a reader (transceiver)
with an antenna, and a host terminal. Figure 2 shows these components. The
RFID reader acts as a transmitter and receiver and transmits an
electromagnetic field that “wakes-up” the tag and provides the power required
for the tag to operate

Q-4 Explain kitchen order ticket system in a restaurant.


KOT is a written document which is given to the kitchen in exchange of any dish or any item
picked up from the kitchen. KOT is prepared by food service personnel to intimate the food
order of the guest to the kitchen staff. It helps in serving the right order to the right person.
The KOT consists of details such as table number, covers, name of the waiter, date, time,
items ordered, and its quantity. Usually, all the KOTs are serially numbered for control
purpose. The food check may be duplicate or triplicate depending on the size and style of
the organization.

A KOT is written as follows:


 The order is written along the lines and not up or down.
 Indication is given between the courses.
 If a few lines are left in KOT, that space is struck off.
 Quantity of each dish is written in words rather than the numbers….
Importance:
 Establishes appropriate co-ordination between the kitchen &service personnel.
 Helps to avoid chaos or confusion at the food pick up counter.
 It establishes accountability.
 Facilitates proper control system.
 Helps to raise a bill for settlement
 A post analyses will give an exact idea about the high selling and non-selling dishes
on a menu card.

Types of KOT (Bill Control System)


1) TRIPLICATE CHECKING METHOD:
This system is traditional and time tested and very efficient and still is vogue. As the name
implies, the food check has 3 copies. Each copy has same serial number on them, and be off
different color for easy identification and demarcation. Once the order is recorded on the
KOT, the first copy goes to the kitchen or the dispense bar on the basis of which the order is
prepared. Once the waiter picks up the order, the KOT copy is dropped in to the control box,
which is always kept locked. Control box is maintained by the food and beverage control
department to prevent any kind of fraud and malpractice.
The second copy is given to the cashier, and based on that the bill is prepared, which has 2
copies. The first copy of the bill goes to guest and another copy is retained by the cashier
the cashier attached the 2nd copy of KOT to the 2nd copy of the bill and submits it along with
sales summary to the food and beverage controls at the end of the day.

The 3rd copy of KOT remains with the waiter in the KOT book for reference and checking up
the order during service. It may be called for auditing at any time by the control
department.

2) DUPLICATE CHECKING METHOD:


This kind of checking method is used in small hotels, Cafés, and popular restaurants. As the
name implies the KOT book has 2 copies. The first copy is sent to the kitchen on the basis of
which the order is prepared. When the waiter picks up the order, the first copy is dropped in
to the control box for auditing by the control department.

The waiter retains the second copy as a means of reference during the service. When guest
requests for the billing, the waiter or cashier sum up all the rates on the 2 nd copy of KOT and
presents the same to the guest as the bill.

In a few organizations, the copy has four to five perforated slips. The waiter writes down the
food order course wise on different perforated slips. As and when each course is required
that particular slip is torn off and given at the hot plate. Every slip has a waiter number,
table number, serial number and date. When the food is ready, the Aboyer keeps the
particular slip along with the food to avoid confusion.

3) SINGLE ORDER SHEET:


This system is used in cafés, quick turn over restaurants, departmental stores, and taken
away establishments; usually the menu is very limited with little or no choice. Many
organizations following this system may have order sheet printed with the menu, after
taking the order from the guests, the waiter writes it on KOT and calls for the order verbally
over the hot plate. When the guest requests for the bill the waiter prices the order sheet
and hand over to them as a bill. While leaving the restaurants, the guest submits the bill to
the cashier and pays the amount. The cashier retains the bill for control purpose.
4) SERVICE WITH ORDER:
This system of ordering is used in fast food joints, taken away, cafeterias, etc. Here the
menu offered in the establishment is displayed in wall mounted boards. The guests choose
what they want to eat and then order that. The person at the cash counter make the bill
collects the cash, stamp the “bill received” and hand it over to the guest. The guest goes to
respective food counter and collects the dishes against the bill. After delivering the order
the person at the food counter stamps the bill “delivered” and hand it over to the guest.

Q-5 write short notes – JIT in manufacturing organization purchase


order system in manufacturing org.
JIT Just-in-Time manufacturing
`Just-in-time' is a management philosophy and not a technique.

It originally referred to the production of goods to meet customer demand exactly, in time,
quality and quantity, whether the `customer' is the final purchaser of the product or
another process further along the production line.

It has now come to mean producing with minimum waste. "Waste" is taken in its most
general sense and includes time and resources as well as materials. Elements of JIT include:

 Continuous improvement.
o Attacking fundamental problems - anything that does not add value to the
product.
o Devising systems to identify problems.
o Striving for simplicity - simpler systems may be easier to understand, easier to
manage and less likely to go wrong.
o A product oriented layout - produces less time spent moving of materials and
parts.
o Quality control at source - each worker is responsible for the quality of their
own output.
o Poka-yoke - `foolproof' tools, methods, jigs etc. prevent mistakes
o Preventative maintenance, Total productive maintenance - ensuring machinery
and equipment functions perfectly when it is required, and continually
improving it.
 Eliminating waste. There are seven types of waste:
o waste from overproduction.
o waste of waiting time.
o transportation waste.
o processing waste.
o inventory waste.
o waste of motion.
o waste from product defects.
 Good housekeeping - workplace cleanliness and organisation.
 Set-up time reduction - increases flexibility and allows smaller batches. Ideal batch
size is 1item. Multi-process handling - a multi-skilled workforce has greater
productivity, flexibility and job satisfaction.
 Levelled / mixed production - to smooth the flow of products through the factory.
 Kanbans - simple tools to `pull' products and components through the process.
 Jidoka (Autonomation) - providing machines with the autonomous capability to use
judgement, so workers can do more useful things than standing watching them work.
 Andon (trouble lights) - to signal problems to initiate corrective action.

JIT - Background and History


JIT is a Japanese management philosophy which has been applied in practice since the early
1970s in many Japanese manufacturing organisations. It was first developed and perfected
within the Toyota manufacturing plants by Taiichi Ohno as a means of meeting consumer
demands with minimum delays . Taiichi Ohno is frequently referred to as the father of JIT.
Toyota was able to meet the increasing challenges for survival through an approach that
focused on people, plants and systems. Toyota realised that JIT would only be successful if
every individual within the organisation was involved and committed to it, if the plant and
processes were arranged for maximum output and efficiency, and if quality and production
programs were scheduled to meet demands exactly.

JIT manufacturing has the capacity, when properly adapted to the organisation, to
strengthen the organisation's competitiveness in the marketplace substantially by reducing
wastes and improving product quality and efficiency of production.
There are strong cultural aspects associated with the emergence of JIT in Japan. The
Japanese work ethic involves the following concepts.

 Workers are highly motivated to seek constant improvement upon that which already
exists. Although high standards are currently being met, there exist even higher
standards to achieve.
 Companies focus on group effort which involves the combining of talents and sharing
knowledge, problem-solving skills, ideas and the achievement of a common goal.
 Work itself takes precedence over leisure. It is not unusual for a Japanese employee
to work 14-hour days.
 Employees tend to remain with one company throughout the course of their career
span. This allows the opportunity for them to hone their skills and abilities at a
constant rate while offering numerous benefits to the company.

These benefits manifest themselves in employee loyalty, low turnover costs and fulfilment
of company goals.

References

 Kiyoshi Suzaki, 1987, The New Manufacturing Challenge: techniques for continuous
improvement, the Free Press, London.
 Yasuhiro Monden, 1993, Toyota Production System: an integrated approach to Just-In
Time. Second edition, Industrial Engineering and Management Press, Institute of
Industrial Engineers, Norcross, Georgia.
 Cheng TCE and Podolsky S, 1993, Just-in-Time Manufacturing - an introduction,
Chapman and Hall, London.

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