Resource Management

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MAREH announces its expanded program of Resource Management, see details below.

 

 

Resource Management

 

 

Resource Management

Resource Management is about efficient industrial consumption and production in a sustainable manner. Using proven standardized methodologies tailored to individual organization resource management allows a business to maximize profits while ensuring that the raw materials, equipment, staff, and other resources necessary to business success are continually available when needed.

While energy efficiency is often just thought of as just lower utility bills, it is much more than that, as it is also an indicator of how efficient/profitable an organization is operating overall. In the context of Resource Management, energy efficiency practices are not just focused on utility energy they are also focused on human energy. For example the human energy (labor hours) that are used in performing rework on products/services due to process induced errors. Of course, this will usually result in increased usage of utility energy such as electricity and/or gas, thus lowering overall profitability, via increased labor and utility costs.

Let us look at some of the areas MAREH can help manage your resources more efficiently and cost effectively.

 

Quality Management Systems:

We can think of a Quality Management System (QMS) as representing the tool chest full of the tools your business needs to complete its work, similar to the tool chest of your favorite auto mechanic. And, just like your mechanic needing the right tools able to perform their expected function reliably, your organization's quality tool box must contain the right tools in the way of business, production, and quality processes to be successful and profitable.

Quality Management Systems properly implemented in an organization should be viewed as a profit center, rather than a cost center.  A QMS will literally add dollars to the profit sheet every month, dollars that are easily tracked and attributed to specific QMS methods.

MAREH quality and efficiency experts have over 100 years of combined expertise in quality management system development, tailoring, and success verification to bring to bear on your implementing and maintaining a Quality Management System

 

 

ISO 9001 & 50001 Audits & Training:

The International Standards Organization (ISO) has created an overall methodology of ensuring higher productivity and profitability through using repeatable business and production processes. Two of important pieces of this overall methodology are the ISO 9001 (Quality Management Systems) and 50001 (Energy Management) standards. Because all organizations that produce goods and services use some form of energy, be it artificial like electricity, or natural like human energy, ISO 9001 and ISO 50001 activities are inherently interwoven together in real-world practices. At MAREH, our efficiency and resource management experts understand how poor staff performance can increase energy cost because of more expensive rework activities and lower productivity levels per hour of operations. Equally importantly, we understand that energy efficiency practices can be critical to and underlay creating a more profit producing workspace through upgrading the environment and equipment used in producing your goods and services. Let us work with you and your staff to implement and verify ISO 9001 and ISO 50001 sustainable methods that will save you money now and for years to come.The International Standards Organization (ISO) has created an overall methodology of ensuring higher productivity and profitability through using repeatable business and production processes. Two of important pieces of this overall methodology are the ISO 9001 (Quality Management Systems) and 50001 (Energy Management) standards. Because all organizations that produce goods and services use some form of energy, be it artificial like electricity, or natural like human energy, ISO 9001 and ISO 50001 activities are inherently interwoven together in real-world practices. At MAREH, our efficiency and resource management experts understand how poor staff performance can increase energy cost because of more expensive rework activities and lower productivity levels per hour of operations. Equally importantly, we understand that energy efficiency practices can be critical to and underlay creating a more profit producing workspace through upgrading the environment and equipment used in producing your goods and services. Let us work with you and your staff to implement and verify ISO 9001 and ISO 50001 sustainable methods that will save you money now and for years to come. 

 

 

 

Work Force Enhancement:

Governmental units have been embracing the concepts of Work Force Enhancement to improving their organizational efficiency for a number of years  and now industrial leaders are beginning to follow-suit and realize the productivity benefits of Work Force Enhancement strategies.  

While government programs focus on community wide or government sector objectives, programs within commercial organization are focused on  smaller more concentrated groups of staff members.  Yet the objectives are the same give the front line producers the skill sets, work environment, raw materials, and production processes that define success in the work force will deliver that success for the business organization.  

Workforce enhancement begins with the senior executive by developing a sustainable vision of where the organization needs to be to meet established business goals and then communicating that vision downward in with a systematic methodology of insuring that organizational infrastructure is put in place to create a work environment that maximizes sustainable production rates and retention of human resources/skill sets.

ISO 9001:2015 section 7.1.4, incorporates these concepts into three areas of concern.  While seemingly separate issue areas on the surface they are interrelated in multiple ways through the impacts of effective energy management, and each of these areas directly impact the costs of energy to an organization.  Lets look at how work force enhancement is not just about happy employees it is about significantly increasing productivity and profitability, while lowering direct costs of energy and resources.

Social Environment - The work place environment should be socially aligned to the work being performed.  While common discrimination issues such as race, sex, religion are easily identifiable and can be addressed and are fairly straightforward, there are many subtle areas of discrimination that may go unnoticed and therefore fester causing significant losses in productivity and profitability. Some of these areas include:

Confrontation - Many organizations have tried the failing practice of conflict avoidance, which essentially means everyone agrees (openly anyway) with the first idea proposed.  Many organizations have have lost market share and/or gone under  following this practice.  Ideally you want conflict management and resolution not avoidance of issues until they fester and blow up. 

Discrimination - Obviously mainstream discrimination practices involving issues like race, sex, religion, etc. are not allowed, but there are other types of unintended and technically legal areas of discrimination that may go unnoticed and continue to adversely impact profitability without management's awareness.  For example something as simple as the differences between the way assembly workers and professional staff are treated can be seen as discriminatory, resulting in disgruntled employees that have significantly lower output rates.  Being treated exactly the same is not the same as being treated equally, however, and not understanding these subtle differences can lower profitability significantly.

Calmness/Political Correctness - While politeness and social environment conformity is good business practice, over restrictive political correctness results in insurmountable communications barriers and can lead to explosive confrontation at some point.  Creating an environment that is kept calm based on rational decision making and policy setting, rather then unstable whimsical popular opinion allows all workers to know and comply with reasonable expectation in a calm manner.

Psychological Environment - Without question the most important and costly issue facing organizations around the globe is based on one psychological issue, which is defined as the "Uncertainty Principal".  Uncertainty, is the number one fear, and many organizations have more then their share.  An example of uncertainty which affects a majority of organizations is when employees are told they are graded in work performance by one criteria, told to follow processes outside that criteria, and then are actually evaluated by a set of criteria spontaneously produced by a supervisor.  The second most significant and most unacknowledged psychological factor facing a workforce is unrecorded/reported labor hours.  Whether it is compensated for or not monetarily, supervisors requiring employees to work without properly recording all the hours contributed to a project or tasks is costly in terms of staff burnout and turnover, as well as, lost revenue from underbidding future projects based on poor estimation data. A key methodology for resolving many deficiencies in an organization's psychological environment is establishing an effective organizational communications flow. Effective communications in an organization requires bad news to flow only up to a manager high enough to apply all necessary resources/remove roadblocks, and good news to flow down to the lowest level staff members.  

Physical Environment - Temperature, humidity, light, air flow, noise, are some of the environmental variables found in virtually all work environments.  Each one of these variables has parameters bounding an acceptable range of conditions, not only for the workers but for the work process as well.  Go beyond the parameters of the acceptable range of any of these environmental variables and sustained profitability and growth cannot be achieved.  One or more of environmental variables is almost always associated with increasing need for rework and losses in customer satisfaction, both of which are detrimental to realizing projected revenue streams. Almost all environmental variables are directly linked to energy consumption and causal effect analysis can easily be demonstrated by metrics that link production/sales environmental conditions to profitability.  But staff members are not the only ones directly impacted by environmental conditions.  Many modern high tolerance machines and computing equipment can be also significantly impacted by unacceptable environmental conditions, directly resulting in costly rework, and adding to problems in the social and psychological environment of the organization, which will only compound losses in productivity and profitability. 

 

 
Continuous Improvement:

Continuous improvement in a management context means a never-ending effort to expose and eliminate root causes of problems. Continuous Improvement Methodology is often referred to by its Japanese term Kaizen, which means change for the good.

While many organizational leaders feel that continuous improvement is simply about getting better at what they do, and they are good enough. The real power in continuous improvement is its ability to keep an organization ahead of its competitors as technology and business environments change over time.

While normal production and quality strategies focus on replicating proven success to provide a known product of predictable functionality, costs, and quality, the continuous improvement process goes beyond this to provide a company a roadmap on how to stay competitive as business processes transition and customer needs evolve to demand new products and services in an ever changing economic environment.

Continuous improvement methodologies provide a dynamic set of tools and processes to continually evaluate your organizations total business environment for inefficient uses of resources, staff, processes, and finances to identify inefficiencies and implement sustainable improvements that keep you competitive in all your markets.

MAREH's continuous improvements experts will show your organization how it can it improve profitability by reducing direct costs of resources and production processes, and indirect costs associated with inefficient energy usage.

We have documented performance in industries involving:

  • Energy/Utilities

  • Software

  • Heavy Manufacturing

  • Telecommunications

  • Defense

  • Aerospace

  • Government

  • Academia

 

 
Sustainability:

Business sustainability requires firms to adhere to the principles of sustainability in usage of physical and financial resources, as well as, staff readiness.  For an organization to be sustainable, it must address important issues at the macro level, such as; economic efficiency (innovation, prosperity, productivity), social equity (staff training, diversity, non-discrimination, uncertainty in the work place, health and safety issues) and physical environment control (energy efficiency, resource utilization, facilities management).

There are a number of methodologies and best practices, which promote business sustainability, to help organizations move along the path from followers into leaders. These practices include:

  • Stakeholder engagement: Organizations can learn from customers, employees, and their customer/vendor community. Engagement is not only about pushing out messages, but understanding opposition, finding common ground and involving stakeholders in joint decision-making.  This is method of management is known as an Integrated Development Environment, in the product engineering and development communities.

  • Energy and Environmental management systems: These systems provide the structures and processes that include productivity and profitability gains from integrating energy and environmental efficiency into a firmís culture and risks mitigate strategies. The most widely recognized standards worldwide are ISO 50001 (Energy) and ISO 14001 (Environment) but numerous other industry-specific and country-specific standards exist.

  • Measurements and Metrics (reporting): Measurement and control are at the heart of instituting sustainable practices. If you do not know where you are then how can you hope to get to where you want to be? Measurements and Metrics is like a map and compass for your organizationís management to use to navigate along paths of increased productivity and profitability.

  • Life Cycle Analysis:  A Life Cycle Analysis is a methodology of exploring the acceptability of costs and other impacts of a system or process from inception to final retirement/disuse before you begin expending significant resources and capital towards implementation.  A Life Cycle Analysis can help an organization control risks by giving clearer financial insight into where to set control gates in a product/process life cycle.  It is at these decision gates that senior management can make the decision to continue funding viable projects, or cut losses by defunding initiatives, which cannot provide a sufficient return on investment.  

  • Earned Value Management:  After organizations have established a management plan, for a specific project or the overall organization, managers and other stakeholders needs a way to gauge the organizationís performance towards the plan.  This is where Earned Value Management methodologies can give advance warnings of potential bottlenecks, cost issues, and schedule problems early enough in the plan execution to effectively apply resources and funding to prevent significant setbacks or complete failure.  Earned Value Management methods can be thought of like the trip computer in your car telling you how far you have gone, how far you have to go to get to your planned destination, how much gas (resources) you have used and need to get there, and if you will make there on your scheduled time.

Firms that are sustainable, have been shown to attract/retain properly skilled and reliable employees more easily, experience less financial and reputation risk, and complete projects on schedule and within planned budgets. These firms are also more innovative and adaptive to their customer base, have higher customer satisfaction and less wasted costs on rework and customer satisfaction issues.

 

 

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Copyright © 2011 Mission for the Applications of Renewable Energy for Humanity
Last modified: October 25, 2011