In general
there are several common elements and aspects such as training, analysis,
leadership, safety, environment, quality, economy etc. those are considered by all organizations regardless
of the organization is a manufacturer or deliver services, because these
aspects and elements play a huge role on organization’s profitability and
competitiveness.
If we
breakdown and analyze each process that involve these aspects and elements, we are
going to see that all of these aspects and elements lead in the end of the day
to ECONOMY.
Quality, why companies care about quality?
Well, the
answer is, to make their customers satisfied, and when the customers are satisfied
they are going to buy the products/services those company offers, and when the
company sell a large amount of products, it makes revenue and might it will
increase profit margin if the costs are controlled, and when the profit margin
increases it will enhance organizations profitability and enables it to stay
longer in the market. Although, it’s obvious that the last piece in the chain
is the “economy”.
Safety, why companies do care about safety?
Well, the answer is to prevent personal
injuries and environment's pollution within assuring the machines, equipment,
systems, product and facilities.
Why? The
organization will pay penalty or compensation if any accident occurs during the
operation that could lead to personnel injuries and or environment’s pollution
due to radiation, explosion, chemicals etc. On the other hand it will also
impact customers, partners, stakeholders and also organization’s reputation and
credibility are in danger.
Environment, why organizations do care about
Environment?
The main
reason is to avoid other costs such as penalties that occur due to emission and
other wastes exceeding the boundary that determined by the state. However, the
organization could lose its permission to operate if the amount of emission
exceeds the boundary that world/Europe legislation has determined. That’s mean
the business will be shut down.
Training, why should organizations consider
training?
The answer
is very simple. Trained or qualified operators/personnel know how to deal with
specific problem(s) and can also handle stress with less faults comparison with
untrained staff. Moreover, when problem(s) occurrence decreases, the costs will
automatically decrease too. This in turn leads to maximize revenues.
Leadership, why should companies consider
leadership?
Examples of
problems that organizations face in day-to-day work are unscheduled downtime,
recurring failures, huge amount of backlog, unfinished tasks, increment of rejected
products due to defect etc. All of these can might be linked to demotivated and
immoral-operators, lack of knowledge, misuse and abuse, however these are not
the final causes. In many instances there is another cause(s) that lies behind
such problems such as management/leadership. Although, the selection of right leaders those
can add a value is beneficial, because it can lead in the end of the day to
minimize the costs and maximize the revenue.
LCCA (Life
Cycle Cost Analysis)
Why
organizations consider LCCA?
The purpose
of conducting LCCA is to estimate whether the project is worthy or not within conducting
a comprehensive study, analysis and comparison that include all available alternatives
from inception to disposal. That means, the final decision regarding what
alternative would be chosen will be based on profitability. However other
aspects and criteria have also been taken into account.
RAMS (Reliability,
Availability, Maintainability and Safety)
Why it is
important for organization to consider RAMS?
RAMS-analysis
focuses mostly on asset's condition, because unreliable, unavailable,
unmaintainable and last but not least unsafe system or organization means a
huge amount of money in the end of the day.
Obviously,
the analysis shows that the economy is the core component that clarifies
organizations concern regarding the above mentioned elements and other involved issues those I did not
mentioned, because it will be too long article such as Maintenance, Operation, Supportability
(storage, logistics, competence etc.) etc.
I can
conclude that it’s obvious the economy is the most important aspect. On the
other words, the economy is actually the core motive that lie behind each element
or aspect , however the consideration of the above mentioned elements when
conducting studies or making decisions will contribute to enhancement of organizations
profitability and competitiveness strongly.
Hamid
Al-najjar
