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Business term of the day - Term for September 7, 2013: "Continuous-flow manufacturing"

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Source: Wikipedia
Continuous-flow manufacturing (CFM) is a manufacturing strategy that produces a part via a just-in-time and kanban production approach, and calls for an ongoing examination and improvement efforts which ultimately requires integration of all elements of the production system. The goal is an optimally balanced production line with little waste, the lowest possible cost, on-time and defect-free production.

This strategy is typically applied in discrete manufacturing as an attempt to handle production volumes comprising discrete units of product in a flow which is more naturally found in process manufacturing. The basic fact is that in most cases, discrete units of a solid product cannot be handled in the same way as continuous quantities of liquid, gas or powder.

Discrete manufacturing is more likely to be performed in batches of product units that are routed from process to process in the factory. Each process may add value to the batch during a run-time or work-time. There is usually some time spent waiting for the process during a queue-time or wait-time. The larger the batch, the longer each unit has to wait for the rest of the batch to be completed, before it can go forward to the next process. This queue-time is waste, Muda (Japanese term), and represents time lost that is not value-added in the eyes of the customer. This waste is one of the most important elements targeted for reduction and elimination in lean manufacturing.

Reducing the batch size in discrete manufacturing is therefore a desirable goal: it improves the speed of response to the customer, whilst improving the ratio of value-added to non value-added work. However, it should be balanced against the finite capacity of resources at the value-adding processes. Capacity is consumed by changeover whenever a process is required to perform work on a different part or product model than the preceding one. Time consumed in changeover is also considered waste, and it reduces the amount of resource capacity that is available to perform value-adding work. Reducing batch sizes can also increase handling time, risk and complexity in planning and controlling production.

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The paradigm aim is to achieve single-piece flow where a single discrete unit of product flows from process to process. In effect, the batch quantity is one. If there is no change in part or product model, then this objective needs to be balanced against the additional handling time, and the work-centres that perform the process will typically have to be arranged in close proximity to one another in a flow-line. This is often a characteristic of continuous-flow manufacturing and most manual assembly work is performed this way in the modern factory.

If there is a change in part or product model, then the process engineer should also consider to balance the changeover time with run-time. If the changeover time is long, as it might be on a machine, batch size reduction is typically preceded with setup reduction techniques such as Single-Minute Exchange of Die.

One methodology for continuous-flow manufacturing is Demand Flow Technology which combines the principles of continuous-flow and demand-driven manufacturing. The production planning and control is linked to a pull signal that is triggered from a customer order or consumption of finished goods stock. A pull signal can also link a process to the down-stream, and synchronize the flow to the demand of the customer.

Business term of the day - Term for September 6, 2013: "Consularization"

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Source: Wikipedia
In international law, consularization is the act of authenticating any legal document by the consul office, by the consul signing and affixing a red ribbon to the document.

Several countries, such as the Dominican Republic, require that exportation documents be consularized in the country of export before the goods arrive at port, and impose a penalty upon any goods arriving at a port accompanied by documents that have not been consularized. Typically, a special consular invoice, prepared in the language of the destination country, is submitted to a consular office in the country of export.

At the General Agreement on Tariffs and Trade round in 1952, it was proposed that consularization of commercial invoices be abolished. In 2005, the United States and Uganda submitted a proposal to the World Trade Organization to abolish consularization.

In addition to shipping documents, other documents that may be required to be consularized include travel documents (such as a parental consent letter for persons under 18 traveling without a parent), letters of credit, and powers of attorney.

New Study Explores Why Change Management Fails - And How To (Perhaps) Succeed

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A new study by Towers Watson has found that only 25% of change management initiatives are successful over the long term.  While this may come as no shock – substantive change in organizations with entrenched cultures is always difficult – the study adds new data to an ongoing discussion. Read more...

EU to introduce more rules to address shadow banking risks

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BRUSSELS, Sept. 4 (Xinhua) -- European Union Internal Market and Services Commissioner Michel Barnier on Wednesday proposed new rules for money market funds (MMFs) and tighter regulations for so-called shadow banking.

The draft regulation has been designed to ensure MMFs can better withstand redemption pressure in stressed market conditions by enhancing their liquidity profile and stability.

Shadow banking is the system of credit intermediation that involves entities and activities that are outside the regular banking system. They are not regulated like banks yet engage in bank-like activities. MMFs, types of investment funds and products with deposit-like characteristics are parts of shadow banking. Read more...

U.S. energy lifting economy more than expected

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Newly found sources of domestic oil and natural gas are having an even bigger impact on the economy than first projected, adding more than $1,200 last year to the discretionary income of the average U.S. family, a new study says.

The explosion in domestic energy production now supports 1.2 million jobs, directly or indirectly, says consulting firm IHS, in a study released Wednesday. That number will grow to 3.3 million by 2020, and new energy's contribution to U.S. families' disposable incomes will hit $2,000 per household per year by 2015, said IHS.
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Business term of the day - Term for September 5, 2013: "Congagement"

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Source: Wikipedia
Congagement is an employee relations business term that means to "connect" and to "engage" with employees. It is an informal amalgamation of "connection" and "engagement".

"Connect" is a verb meaning to join, unite, establish communication between or to associate with others mentally or emotionally.  "Engage" is a verb meaning to attract, involve, please, pledge, promise or occupy the attention or efforts of others.

Communication is an important part of congagement. In order to connect and engage employees, communication must be transparent, frequent, genuine and varied to meet diverse audience expectations and needs. It supports the belief that leaders must work to create a dynamic culture that listens, acknowledges reality, rights wrongs, keeps commitments, shows loyalty and works hard to establish high levels of smart trust.  In addition and of import, leaders must strive to create and maintain employee-centric work environments that are harbors of empowerment, development and fun.

This word has also been used in foreign policy circles to describe a mix of "containment" and "engagement". It tends to most often be used in this context when discussing U.S. foreign policy with China.

After $258M Google Ventures And TPG Investment, Uber Hires Finance, Business, And Growth Execs

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After announcing a $258 million funding round from Google Ventures and TPG, Uber is revealing a number of new hires today in finance, business and international growth at the executive level.

Uber stole Brent Callinicos from Google, where he was VP, Treasurer & Chief Accountant. He will be Uber’s new Chief Financial Officer. Former COO of Klout, Emil Michael, will be the company’s SVP of Business. Prior to Klout, Michael was SVP of Field Operations at TellMe Networks. Lastly, Ed Baker, who previously served as Head of International Growth at Facebook, is joining as Head of Growth. Previously he was co-founder and CEO of friend.ly (which was acquired by Facebook in 2011).
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