Question

This week we are presented with cost management and the various factors that drive costs. Suppose you are a production manager and the company comptroller tells you that a new policy will require you to track any damaged or discarded material. Why do you suppose the comptroller wants a written record of damaged material? What benefits can the follow-up of the impairment rate for work? Be sure to provide examples.

Note:Could you please don't use your handwriting to answer this question to be easy for me to solve...Thanks

Answer 1

A written record is a major management tool utilized by the companies to ensure the efficient operation. An accurate records inventory enables a company to identify the problems effecting its performance, such as product loss through damages or theft etc. These up to date records can also help the companies to better control their expenses. A written record of damaged material is utmost important as it helps to track losses. The better your material usage and damaged records are, the better control you have on your profit margins and thus, can make necessary steps to mitigate the losses.

There are various follow up methods to track the inventory damages like ensuring the efficiency of production line,maintenance of machines and equipments, good engineering and production communication and advanced inspection techniques like particle testing or resistance testing etc.