2.2.1 Working capital
Working capital is among the many important things that contribute to the success of any business, without it, abusiness may cease to function properly or at all. not only does a lack of working capital rendor a company unable to build and grow, but it may also leave an organization with too little to cash to pay its short term obligations, simpy put a company with very low amount of working capital may be at risk of running out of money. when a company has too little working capital, it can face financial difficulties and may even be forced torwards bankruptcy. this tru of many small companiesand billion dollar organizations. accompany with this problem may pay creditors late or even skip payments. it may boorow money in an attempt to remain a float. if late payments have affect the organization credit rating it may have difficult pbtaining a loan an an affordable interest rate. in some types of businesse, it is not as much of a problem of having alower amount of working capital. organizations that operate on cash basis, have a fast materials turnovers, and can generate cash quicklydont necessarily need as much working capital Assel, 2000)
mrp values transportation and timely delivery of goods and services as main factors of all types of businesses wether it is transportation of raw materials to the organization or of finished products to the customers, logistics plays a major role in all businesse. logistics is the most impotant fact that facilitate all businesses operte well. without good logistics no business can accomplish success. a good lodistic can offer expansion to a business. lierbman 2003. logistic is required in ever business. general logistics the management of material requirement planning, product and other resources so as to deliver the products in the market in order to fulfil the requirements of consumers. logfistics typically incorporate transportation, warehousing , packaging, materials handling, information and security. logistics is responsible for efficient flow of products, services, information associate to many organizations and consumrs.. the increasing complication of business and denmand for shhippng of product globally was the major cause that gave rise to logistic as a business concept. ineefective logistics wiil affect serious loss for producing organizations. all kinds of business requires logistics and shipping. especially for businesse that are mainly involved in transportation of goods call for a speciall attention for logistics and shipping. a slight disorder in logistic will lead to heavy financial loss for many orgations especially transportation field. an effective logistic and system can facilitate a business to operate well and increase revenu
This chapter contains background of the study, statement, objectives of the study, significance, limitations and scope of the study. st
2. Background of the Study
Total Quality Management (TQM) is an enhancement of the traditional way of doing business. It is a proven technique to guarantee survival in world-class competition. TQM refers to a philosophy and set of guiding principle that represent the foundation of a continuously improving organization. It is the application of quantitative methods and human reserves to improve all the processes within an organization and exceed customer needs now and in the future. It is the art of managing the whole organization in order to achieve excellent Total Quality Management integrates Fundamental Techniques, existing improvement efforts and technical tools under a disciplined approach. The purpose of TQM is to provide a quality product or service to customers, which in turn increase productivity and lower costs (Besterfield 2003).
Quality means fitness for use (Juran, 1920). A product which is usable and conform to all specification given will generally be a good product (Kotler, 2000) states that quality...
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