Laiza Joyce H.

Sales – BSA4

1. Describe three reasons why waiting is damaging to organizations?

Answer:
First, waiting causes delay which results to unsatisfied customers. When
customers are unsatisfied, they leave negative reviews which repel customers. Likewise,
it can make the company lose their loyal clients, thus not only their reputation decreases
but also their profit. Second, waiting temporarily suspends activities in the operation
because one of their activities is not yet complete. This would make equipment or
employees idle, however though the operation is suspended; operating costs is still the
same. Thus, the organization would be spending money for less than the planned output.
Lastly, in relation to the second reason, since equipment or employees are idle, the actual
outputs will be lesser than the planned output. It will adversely affect the financial
performance of the company.

2. How is transporting a waste? Provide an example to support your answer.

Answer:
Transportation increases the expenses of the company while it does not add any
value to the organization and also risks damaging or losing the products, therefore it is a
waste. An example of this is when your inventory cannot be left in your physical store
and has to be moved to your storage house which is far from your store. Thereafter, when
operating hours come, the inventory again is transported from the storage house to the
physical store. In this example, transportation costs for the fuel & gas, and payment for
the worker who carries and arranges the inventory is incurred TWICE a day and it does
not add value to the inventory AT ALL. If the store has a space to store the inventory, it
saves the costs of the transportation and would require less effort.

3. Provide three recommendations to minimize the presence of underutilized

employees.
Answer:
Usually, underutilized employees are caused by poor human resource
management. In order to minimize the presence of such waste, the company could do the
following:

a. First, the manager should track the performance of every employee and
determine whether the employees finished their tasks on time, early, or late, and
to see how well they did their tasks. Through this, the company will be able to
determine the extent of the capability and skills of an employee and will be able
to assign tasks that are actually on par with their capability, and thus fully
utilizing them. This will also encourage underperforming employees to perform
better;
 b. Second, ask the employees and get their feedback about their work assignment.
Some employees know themselves whether they are underutilized or not, thus
resulting to boredom and lack of interest on the assignment;
c. Lastly, the company should not only give most of the tasks on high-performing
employees. Under-performing employees should be trained so they could
handle important tasks to. At the end of the day, all of them are paid and it
would be unfair if some are over-utilized while some are underutilized.

4. How can the Eight Areas of Waste be used to build an operational audit work
program?
Answer:
Operational auditing is a process of evaluating a company's operating activities,
thus the eight areas of waste can be used by the auditor to determine which from the
activities should be focused on due to wasteful activities and processes. The auditor
would determine why and how those wastes exist and would develop recommendations
on how to minimize it.

5. If inventory is an asset, why is it considered a waste?

Answer:
Inventories can only add value on the company if it can be sold. If it can’t, then it
can only be considered as waste. When manufacturing or purchasing inventory, it incurs
COST. When you store inventory, it likewise incurs COST (handling cost, storage cost).
However, inventory is prone to spoilage or damage, and can be obsolete in the market.
Because of this, inventory could only be waste.