Inventory Management and Control...

Inventory Management and Control  In an organization there are stock of finished products, semi finished products, in process materials raw materials, spare parts, operating parts, fuels, and consumables. The collective name of these entire items is inventory. Inventory occupies the most strategic position in the structure of working capital of the organization. It constitutes the largest component of current asset. The turnover of working capital is largely dependent on the turnover of inventory. It is therefore quite natural that inventory which helps in the maximization of profit occupies the most significant place among current assets. The maintenance of inventory means blocking of funds and so it involves the interest and opportunity cost to the organization. The inventory cost is not only interest on stocks but also cost of store building for storage, insurance and obsolesce.   Hence it is necessary that a great emphasis is placed on inventory management and control. The primary objectives of the management and control of inventory are as given below. To minimize the possibility of disruption in the production schedule for want of raw materials, consumables, spares and other stores items. To keep down the capital investment in inventories. To ensure sufficient stock of semi finished products so that there is no disruption in the production schedule. To ensure adequate stock of finished product to meet the delivery requirement of the customer. It is essential to have only the necessary inventories. Excessive inventory is an idle resource which is a matter of concern. The investment in inventories is to be just sufficient and is to be at the optimum level. The major dangers of excessive inventories include the unnecessary tie up of the organizational funds, excessive carrying cost, and the risk of liquidity. The excessive level of inventories consumes the...

Role of Vigilance in Management...

Role of Vigilance in Management Vigilance is a tool of management. It is primarily a responsibility of the management. An organization has both external threats and internal dangers. The organization protects from external threats through creating security and posting manpower to guard against such threats. The role of vigilance is to protect the organization from internal dangers which are more serious than external threats. Vigilance in any organization is an integral function like any other function of management, such as finance, personnel, operation, marketing, material, and contracts etc. If the vigilance set up is effective in an organization, it will certainly ensure the functioning of the other segment like finance, personnel, operation, and marketing etc. in an efficient way.  It has therefore to be given a rightful place in the management. Vigilance is defined as watchfulness, alertness, and caution. The word vigilance tells managers to be on vigil, to be vigilant, to be alert, and to have vigilance of organization’s image and reputation as well as to have vigilance of the organization’s assets. Vigilance is an essentially a management function aimed at ensuring above board and orderly conduct of affairs by the employees of the organization. The primary objective of vigilance is to protect the honest and punish the corrupt. Vigilance with well planned strategy to deal effectively with the cases of unfair practice is an integral part of administration. Vigilance is required to detect the irregularities before it is carried out, analyze and find out the reasons of such irregularities or to take effective measures to curb the same so that the irregularities are prevented and to take corrective action as per laid down procedure against the defaulter and award of punishment if the guilt is established. The effectiveness of vigilance to carry...