Safety

Starting with safety, in most industrialized countries, statistics reveal that accidents are one of the most significant causes of lost working days – in many countries an accident is defined as something which ‘causes disablement for more than three days’.
In factories, the general accident occurs when one handles tangible assets resulting in several economic implications to the employer such as the cost of damage to the equipment or any cost associated with the subsequent modification, and the cost of any compensation payments or fines resulting from legal action; to name a few. Therefore, if safety is not adopted correctly, the organization is at risk. This is due to the fact that if an accident occurs due to negligence or disregard of such safety precautions standards, the organization’s reputation is on the line.

Efficiency

Time is considered to be one of the major factors which affects most organizations’ operations as well as what differentiates one organization from another by means of the speed at which the operations are performed. Efficiency is mainly and predominantly built on the efficiency and effectiveness implemented in order to carry out operations. Effectiveness and efficiency within operations is mainly attained by the smooth flow of materials, prompt decision making skills as well as the communication which takes place within the organization.

Cost

It’s in every organization’s interest to lower costs as much as possible, so as to increase profit margins as well as achieve a competitive advantage over competitors. Every organization must strive in order to keep costs as low as possible, however, in doing so, they shall ensure that safety, efficiency, quality as well as all legal matters are not compromised. The organisation must therefore constantly analyse its performance and strategies in order to seek all possible areas that could be further improved.

Quality

Quality is yet another essential element within the services offered. In itself, quality is very subjective and personal, however, with the introduction of standards, policies as well as laws, quality measures need to be implemented and adopted by all organizations in order to effectively meet, then exceed customers’ needs and expectations.

Therefore, the quality offered by organizations will determine the overall satisfaction of customers, alongside other variables. In order for organizations to achieve quality levels which are constantly improving, a combination of quality control as well as quality assurance measures are to be implemented. Quality control refers to a series of checks which are organized in order to analyse the processes being carried out by the organization; this is a continuous system which will aid the organization to spot any problem areas within such processes and correct them accordingly.

If such quality measures are not followed, the organization could potentially not be able to satisfy customers’ needs, and on the other hand, not be able to operate to full quality standards. Also, the organization would suffer, as without continuous quality checks various flaws have a high probability of occurring thus wasting the organization’s time and ultimately resulting in a decrease in profits. Additionally, if quality standards are not met, fines can be incurred, and in the worst case scenario, the organization’s license to operate may be discontinued

To the law

Laws are enacted mainly to protect the organization as a whole, the environment, the customers, the employees as well as the industry within which the organization is operating in.

All local laws are to be followed by organisations, with a focus on the Health and Safety Act as well as Employment laws, and Customer Protection Acts; not to mention attaining the required permits and licenses in order to operate.

This necessity of the aforementioned smart production may seem obvious to some, however are greatly underestimated as many attempt to locate loop holes and grey areas. Maintaining a strong business ethics and a respectable strategy is not only vital towards operations, but a simple necessity that indicates how strong an investment opportunity the company in question is.

This article was issued by Steve Diacono, Intern at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice.