1. What is the importance of benchmarks? For a company measuring the effectivene
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Question
1. What is the importance of benchmarks? For a company measuring the effectiveness/benefits of a new technology on a manufacturing process, suggest what benchmarks it should consider. Also suggests 3 measurements that it should undertake to implements controls in this manufacturing process to track the advantage of the new technology. (10) 2. Purely on the basis of financial considerations, calculate the present value of a graduate (Masters) degree from ITU. You may assume the following: (15) a. It takes 2 full years (6 trimesters) for completion of the degree program. b. You may assume any representative rate of tuition per unit that doesn’t change for the 2 years duration. You can assume that you can borrow money for the tuition at the rate of 8% p.a. c. You may consider (for the present value calculations purpose) 3 years of full time job at some representative annual salary (you can use annual salary for calculation instead of monthly.) – received at the end of 3rd, 4th and 5th years. d. Assume the discounting rate to be the same as rate of borrowing (8%).
Explanation / Answer
The process of comparing your business’ KPIs to any predetermined standard is referred to as benchmarking. It can be an industry standard, the performance of a best suitable company in the industry, or anything. Benchmarking is one of the most effective things businesses can do to improve their operations and boost profitability and productivity.
Manufacturers must consider the risk that comes with embracing new technologies. Manufacturers must embrace technological advances to improve plant productivity, compete against rivals, and maintain an edge with customers. Industrial manufacturing executives should be asking these critical questions: At a time of rapid change and limited upside, which technology investments will have the biggest positive impact on my business? And what is the value potential, return on investment, and risk of investing in these technologies?
Advances in technology have spurned new products and manufacturing processes. In turn, this has lead to improved productivity in manufacturing including:
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