The Administrative Management Society (AMS) is a professional management society that promotes the application of management methods in commerce and industry to increase productivity, lower costs, and improve quality. Additionally, it encourages research and emphasizes sound employer/employee relations.
Benchmarking is a technique for measuring an organization's products, services, or activities against those of best-performing organizations to identify areas for improvement.
Business Process Re-engineering (BPR) aims to lower costs and improve quality through a radical reassessment of an organization's working methods, leveraging enhanced information technology for fundamental redesign.
An entity that combines less-than-carload shipments into full carloads to take advantage of lower shipping rates for full carloads.
The ongoing process of improving an organization's goods or services, with the aim of increasing customer satisfaction. In a highly competitive environment, organizations need to actively seek ways to reduce costs, improve quality, and eliminate waste.
A distribution allowance is a price reduction offered by a manufacturer to a distributor, retail chain, or wholesaler to cover the cost of distributing the merchandise, often used during new product introductions.
Economies of scale refer to the cost advantages that a business obtains due to expansion, which result in the reduction of per-unit costs as the scale of operation increases.
Economies of scope refer to the increases in efficiency and potential sales that businesses experience when they produce, distribute, and market a range of products rather than focusing on a single product or type of product.
The Experience Curve is a production phenomenon where unit costs decline as volume increases. This concept highlights the cost advantages gained from efficiency improvements, skill enhancements, process optimizations, and material cost reductions associated with increased production.
A flexible manufacturing system (FMS) is an automated production line that can be quickly adapted to produce multiple product lines, enabling companies to lower costs and respond swiftly to changes in consumer demand.
Gain sharing is an employee motivational technique where compensation is provided for measurable performance gains in areas such as sales, customer satisfaction, and cost reductions. This compensation is often awarded to employee teams for achieving specified goals.
**Hunkering Down** is a slang term used in the context of business and economics to describe taking a defensive stance and adopting a conservative strategy, usually in anticipation of tough conditions or to weather through a downturn. Companies often hunker down by reducing expenditures, postponing expansion plans, and preserving resources to maintain stability until the business environment improves.
Inventory planning is the process of determining the quantity and timing of inventory needed to meet production or sales requirements. Effective inventory planning is crucial for reducing costs and increasing productivity by ensuring that inventory levels are optimized to meet demand without incurring unnecessary expenses.
Just-In-Time (JIT) inventory control is a methodology designed to improve efficiency by reducing in-process inventory and its associated costs. It involves close coordination with suppliers to align production schedules with sales levels and often integrates computerized systems for optimal inventory management.
The term 'prefabricated' refers to building components or entire structures that are manufactured in a factory and then assembled on the construction site. Prefabrication aims to enhance efficiency, reduce costs, and minimize construction time.
Relocating involves moving from one location to another, which can entail moving a business or a residence for various reasons such as expansion, cost reduction, or lifestyle changes.
Supply Chain Management (SCM) involves tracking the movement and demand for components used in manufacturing across various suppliers to provide insight and the ability to respond promptly to changes. SCM aims to optimize production, decrease manufacturing time, minimize inventory, streamline order fulfillment, and reduce costs.
A vertical merger is a business combination in which members of a vertical channel of distribution merge, eliminating the middleman, potentially lowering costs, and possibly making a company more competitive if the savings are passed on to the consumer.
Wide Area Telephone Service (WATS) is a specialized telecommunication service used primarily by businesses for making long-distance calls over a large geographic area at reduced rates.
A strategic inventory management approach emphasizing minimal stock levels to cut costs and enhance organizational efficiency. Known for its potential to significantly boost profitability.
