International Commercial Terms...

International Commercial Terms Incoterms®  is an abbreviation for the international commercial terms and is the registered trademark name given to these terms by International Chamber of Commerce (ICC). They are a  series of three-letter trade terms related to common contractual sales practices. The Incoterms® rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods. They are published by the ICC and are widely used in international commercial transactions. Incoterms® are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contracts for domestic and international trade. They apportion transportation costs and responsibilities associated with the delivery of goods between buyers (importers) and sellers (exporters) and reflect modern day transportation practices. Incoterms® significantly reduce misunderstandings among trading parties and thereby minimize trade disputes and litigation. The Incoterms® was first conceived by ICC in 1921, and brought to fruition with the first Incoterms® rules in 1936. The Incoterms® were created with the purpose of providing a set of international rules for the interpretation of the most commonly used trade terms in foreign trade. A Trade Terms Committee with the assistance of the ICC National Committees developed the first six rules in 1923 namely FOB, FAS, FOT, FOR, Free Delivered CIF and C&F, which were the precursor of what would later be known as the Incoterms® rules. This set in motion a long and vibrant history of Incoterms® rules. As commercial practices, types of goods and transports, and international laws evolve, the Incoterms ® rules need to be regularly updated by experienced international experts. Since the issue of first set of rules in 1936, ICC expert lawyers and trade practitioners have updated them six times to keep pace...

Continuous Improvement Process...

Continuous Improvement Process In a quality organization, quality is a never ending quest and continuous improvement process (CIP) is a never ending effort to improve products, services or processes by discovering and eliminating the main causes of problems. Continuous improvement process accomplishes this by using small-steps improvements (incremental improvements over time), rather than implementing one huge improvement (breakthrough improvement) all at once. Organization having faith in CIP, continuously evaluate and improve products, services or processes with respect to quality, efficiency, effectiveness and flexibility. CIP provides many measures for gauging how well an organization is meeting the needs of its customers. CIP provides organizations a method for analyzing how work is currently being done and how processes can be improved to do the job more efficiently and effectively on an ongoing basis.  Organizations implementing CIP are to ensure the efforts for CIP implementation are aligned with the goals of the organization. There are several approaches and schools of thought for CIP. Most important of these are given below: Lean – This approach is evolved with increased voice of customer value added focus from Just-In-Time (JIT) principle. This has been initially practiced in the manufacturing industry. Six-Sigma – This approach has been evolved from Shewhart, Deming and Juran’s statistical quality control and total quality management focus upon satisfying customer expectations across multiple sectors. Theory of constraints – This approach has been evolved through continual refinement by Eli Goldratt to a present stage of advanced planning capability through critical chain functionality. These schools of performance improvements have been separately and collectively proven to be useful in last two decades in many organizations. Communication and information management is also critical to CIP but it is not mandatory for goal achievement. Key features of CIP Key features of CIP are given...