Archive for March, 2012


Customer Service: Nothing So Useless?

In recent years, I’ve observed a much needed trend toward better customer service and “Listening to the voice of the customer”. In general, I applaud this trend and support this goal. However, even a worthy objective does not prevent us from doing something stupid. Sometimes, an ideal, such as customer service, creates an environment where […]

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Production Control: Nothing So Useless?

According to Peter Drucker “There is nothing so useless as doing efficiently that which should not be done at all.” With developments in technology, we now have the ability to automate more processes than ever before. While I am an advocate of applied technology, another rule applies, “Don’t automate what you don’t need to do.” […]

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Overhead Absorption: Nothing So Useless?

According to Peter Drucker “There is nothing so useless as doing efficiently that which should not be done at all.” Many companies give themselves credit with each portion of their production process. Many experts have pointed out that this practice motivates managers to build inventory in order to receive overhead absorption credit. Some of these […]

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Standard Costs: Why Do Standard Costs At All?

After the completion of my recent series on standard costs, a colleague complemented the series “except for the fact that it begs the question – Why do standard costs at all?” So, we’re not finished yet. This is actually a very good question. If we go back to the beginning of this series, I observed […]

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Standard Cost: Setting Stretch Performance Targets

When setting performance targets, is it best to stretch the target so that everyone has a lofty, almost unattainable goal. Many would say that this is the best way to drive quantum leaps in performance management.

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