Case Analysis On Merloni Elettrodomestici Spa Economics Essay

Case Analysis On Merloni Elettrodomestici Spa Economics Essay Merloni Elettrodomestici SpA is an Italian company based in Fabriano and is one of Europes biggest makers of home appliances. In February 2005, Merloni Elettrodomestici was renamed Indesit Company, Indesit being the best known of the Groups brands outside Italy. The Company was also operating under its historic brand, Ariston, and the regional brands Hotpoint, Scholtes and Stinol. During the perio from 1984 to 1986, Merloni undertook a number of initiatives to improve efficiency in inventory control and logistics. One such initiative was the transit point experiment where in the Milano region, regional distribution centre was eliminated in favour of tranit points which held zero inventory. The following is an analysis of the Transit Point Experiment conducted by Merloni: Cost saving in terms of infrastructure cost of regional warehouses and their maintenance. The company would require lesser amounts of overall inventory to be maintained. As regional warehouses would be closed there would be lesser labor requirements. Transit Point methodology works similar to JIT where-in the required amount of goods are shipped at the required time. Since it works more on the Pull from the customer and due to elimination of regional warehouses, the effect of bullwhip should be lower. Because the regional warehouses will be eliminated, the capacity storage of the central warehouses should be expanded to meet the requirements of the extra Cycle inventory. This would come as an additional cost to the company. Intensive planning of daily shipment should be done. It is not only required to calculate the exact amount of goods to be shipped but also the arrangement of the goods (to eliminate time in loading/unloading activities). Because of this intensive planning more skilled administration staff would be required. If the customer does not order wihin 3pm, the delivery of the product would happen only after the second day. This can lower customer satisfaction. Since no inventory is maintained in near-by locations (as all goods come from central warehouse) if there is any excess demand or out of stock condition (for retailers), the goods will have to be fetched from central warehouse which would take a lot of time. This can lead to loss of goodwill with retailers especially those serving the rural markets. Demand variability is not easily supported by employing Transit Point methodology. If there is an urgent demand for goods in excess of truckload capacity then it can lead to huge additional cost. Another important point which is not mentioned in the case is the importance of the transportation medium. If any of the vehicles breaks-down it could lead to huge delays and pile up of demand. Merloni needs to keep some extra vehicle for a backup. It also needs to maintain the vehicles in good condition. The cost of this has not been accounted for. Since the experiment was carried out only in Milano a relatively smaller numbers of trucks (1 Trailer truck and 3 Small trucks) were required. If the Transit Point methodology is applied through-out Italy, Merloni will need to build up infrastructure and teams to coordinate the the movement of trucks and their transactions. In Merloni, it is the responsibility of the warehouse manager to manage and develop the customer relationship. If the warehouses are eliminated Merloni would still need additional office space for the warehouse managers who also act as Customer Relationship Managers. Another important question is where would Merloni keep the spare parts required for its service personnel. If these too are kept at the central warehouse it could lead to delay thus have a negative impact on the quality of service. The Merloni experiment was conducted when the weather was good. If the weather is bad near the central warehouse but alright in other areas where there is demand, then it can lead to delays. The cost of such delays would be large as Merloni would have to use extra vehicles to ensure the earliest delivery of all the goods once the weather becomes good. Quantitative Analysis: Now we shall look at a quantitative analysis of cost incurred by the company before and after using Transit Point methodology. The case is for region of Roma (information as per exhibit 10). (Ax) would represent cost incurred by using Pre-Transit Point methodology and (Bx) would denote cost incurred by using Transit Point methodology. Calculate the Average Volume/Month at the Regional Distribution Centre (RDC) in Roma. Assuming 20 working days in a month. Average daily demand served from regional warehouse = 154.8 pieces Average Volume/Month = Average daily demand x No of working days = 154.8 x 20 = 3096 pieces. Operating Cost at RDC From exhibit 10 of the case it can be seen that the operating cost at Roma is 3605 Lire/Piece/Month Average inventory levels at RDC = 1200 pieces (from Exhibit 8a) Total Operating Cost/Month at Roma RDC = Operating Cost/Piece/Month x Avg Inventory = 3605 x 1200 = 4326000 Lire Therefore, Operating Cost per piece sold = Total operating cost / No of pieces sold = 4326000 / 3096 = 1397.28 Lire (A1) As per the case, by using Transit Point methodology the Operating Cost has reduced to 20%. Therefore, New Operating Cost per piece sold = 20 % of original Total Operating Cost = 0.20 x 1397.28 = 279.45 Lire -(B1) Inventory Cost at RDC From exhibit 10 of the case it can be seen that the inventory cost at Roma is 1035 Lire/Piece/Month. Total Inventory Cost / Month = Invetory Cost/Piece/Month x Avg Inventory = 1035 x 1200 = 1242000 Lire Inventory cost per piece sold = Total inventory cost / No of pieces sold = 1242000 / 3096 = 401.16 Lire. (A2) Using the Transit Point methodology, zero inventory is maintained. Therefore, Inventory cost per piece sold = 0 Lire (B2) Short Haul Transportation Cost The short haul transportation cost is the cost of transporting goods from regional warehouse or transit point to retailers. This cost would be common for both pre and during Transit Point methodoly usage period Short Haul Transportation cost = 4300 Lire/Piece (A3),(B3) Long Haul Transportation Cost is the cost of transporting goods from the central warehouse to the regional warehouse or transit point. During the pre Transit Point period goods were transported from the central warehouse to the regional warehouses using trailer trucks. Total number of pieces to be shipped per month = 3096 pieces Capacity of one trailer truck = 120 pieces Therefore, Number of trailer trucks required = Total quantity / Capacity of trailer truck = 3096 / 120 = 25.8 trucks Distance between Roma and Fabriano = 165 Km approx. (source: http://www.distance-calculator.co.uk/distance-from-fabriano-to-rome.htm) From Exhibit 11, Cost of using a trailer truck for transport upto 165 Km = 0.36 Million Lire Therefore, Total transporation cost = Cost/Truck x No of trailer trucks = 360000 x 25.8 = 9288000 Lire Transportation cost per piece sold = Total transportation cost / No of pieces sold = 9288000 / 3096 = 3000 Lire (A4) In Transit Point methodology both trailer truck and smaller trucks can be used depending upon the lot size. Since the average daily demand is 154.8 pieces, a minimum of one trailer truck will have to be used every day. i.e. Total volume of goods carried by trailer trucks/month = No of trailer truck in a month x Volume carried by 1 trailer truck = 20 x 120 = 2400 pieces The remaining amount would be carried by smaller trucks. Volume to be carried by smaller trucks = 3096 -2400 = 696 pieces. Therefore, No of smaller trucks required per month = Volume carried by smaller trucks / Capacity of smaller truck = 696 / 45 = 16 trucks This means that in addition to trailer truck a smaller truck also needs to be done for 4 days in every week. From Exhibit 11, Cost of using a smaller truck for transport upto 165 Km = 0.2 Million Lire Total transportation cost = (Cost / Trailer truck x No of trailer trucks) + (Cost / Small truck x No of smaller trucks) = (360000 x 20) + (200000 x 16) = 10400000 Lire Transportation cost per piece sold = Total transportation cost / No of pieces sold = 10400000 / 3096 = 3359.17 Lire -(B4) Inventory cost at central warehouse Because the regional warehouses are going to be removed, some amounts of inventory will be moved to the central warehouse. Total inventory level at all 17 regional warehouses = 14330 pieces Assuming 50% of this is Cycle Stock and the remaining Safety Stock, the Cycle Stock (= 7165) will be moved to the central warehouse. Average Safety stock = 7165 / 17 = 421 pieces. Safety stock required at central warehouse as per Risk Pooling = 421 x à ¢Ã‹â€ Ã… ¡17 = 1735 pieces. Therefore, additional stock required at central warehouse = Safety stock + Cycle stock = 1735 + 7165 = 8900 pieces. Assuming inventory cost as those prevailing in Roma, the extra inventory cost at central warehouse = 8900 x 1035 = 9211500 Lire Additional inventory cost/month/piece sold = 9211500/(20*3096) = 148.76 Lire -(B5) Therefore, Total Cost incurred by the company before deploying Transit Point methodology = (A1) + (A2) + (A3) + (A4) = 1397.28 + 401.16 + 4300 + 3000 = 9098.44 Lire Total Cost incurred by the company by deploying Transit Point methodology = (B1) + (B2) + (B3) + (B4) + (B5) = 279.45 + 0 + 4300 + 3359.17 + 148.76 = 8087.38 Lire Therefore by using Transit Point methodology, Merloni has saved 1011.06 Lire. Now taking this Transit point experiment to India, we can make the following observations Geography The geography of India is different from Italy. India is equally wide in North- South and East West directions. The approximate width is ~3500Kms. This is very high compared to Italy. The towns and cities are farther apart compared to Italy. For a product like home appliances (refrigerator , washing machine , dish washer etc) the market is still in towns and cities in India. The road conditions are also not that good. This means the transportation time between cities will be more compared to Italy. Another point to consider is the demand in a town; this may not be enough to meet a truck load of products. Company will have to find a way to store the excess products which is not being supplied. See exhibit1 for details. Infrastructure Another option we can consider is to have a transit point method for big cities like Mumbai, New Delhi, and Bangalore etc. We can have a transit point set up in outskirts of city and we can have small trucks to distribute units to retailers. This will help to free up or reduce the storage space in ware house in each city. But this again will depend on where you have the center ware house located and will be applicable only if ware house is in a days drive from the city. Also we can try this in states like Kerala where the towns are closer by. But even though this frees up inventory storage space, company may still have to have a small space to store items which dont get distributed or collected the same day. As given in Merloni case we will not be able to leave products in alley or plan to keep in sales office as space is a big constraint. As in Merloni case we may not be able to reuse the storage space for an exhibition house in the case of India, as the storage location is located in outskirts of city in most places. The market segment for home appliances is the people who stay in the city limits and will be reluctant to travel so much for buying a home appliance. Transportation The fuel price costs and spare parts costs will contribute to the transportation cost and will drive it higher. This in turn will result in a higher transportation cost per unit and will eat into the margins. This will be significant in case of a transit point experiment since the delivery is made per day. Another concern is the quality of service timely delivery and state of goods delivered. The time of delivery is very critical in the case of a transit point plan. The delivery to the hub should reach on time to ensure the timely delivery of goods to retailers. With the poor condition of roads and lack of service/repair support along the way, there is a significant risk associated with timely delivery. If a truck breaks down, it is definitely going to add half a day delay to the delivery. Inventory As explained in Infrastructure section, the transit point plan will help to reduce inventory held in big cities and move the same to central ware house location. This again may help company to close down its own Storage location in cities and use private/public warehouse option for the storage of minimal inventory in cities. Customer Service With the transit point plan, the timely delivery of goods in big cities will improve. This will make the retailers in this area happy. But if we try to implement this pan India, it will result in poor delivery times and dissatisfaction. The reasons for this are given above. Labor Cost There may not be any significant reduction in labor expenses, as company may have to get new systems in place to support the transit point plan for big cities. This will kind of compensate for the reduction in storage space cost we are getting in cities. Again we will also need people to take care of the transit point plan execution in big cities. Recommendation Based on the above analysis, below given are the recommendations to implement a transit point plan in India. Implement this plan only in big cities like Bangalore, New Delhi, Mumbai, Chennai ,Kolkata, Kerala etc. We can try out this experiment first in a big city like Mumbai and get learnings from there to improve the system and then fan it out to other cities. Another option to make this work is to have multiple large ware houses spread across the country so that every major city is located at a distance of 300-400Kms from the ware house. From this point we can try to run trucks to cities and do a delivery of products to retailers in the city and nearby areas in a 12Hr time frame. For e.g. We can collect distribution data from Tier II big cities like Ahmadabad , Bhopal , Allahabad ,etc. over a period of time and see if it any of the cities have enough demand to meet a truck load. We can also include the close by towns for this calculation. Based on this we can run a transit point distribution around those cities. See exhibit 2. The transit point plan will work well for a manufacturing line where the demand is more fixed than a home appliance store. This will work well as the factory have a well defined schedule on what products will be running in which Assy lines and for how long. In the case of a home appliance store the demand is driven high by a number of local factors like local holidays, local festivals, bonus pay out etc. For a diverse country like India these factors vary widely. A local festival is more limited to a local city or a town and may not be even applicable for the entire state. This makes it more difficult to forecast and plan. On a big picture the transit point plan in this format cannot be implemented pan India as it will result in delayed deliveries and low satisfaction levels. The poor infrastructure, widely spread cities, diverse culture and quality of transportation service all act as variables and makes forecast difficult and can cause a failure in the plan. Exhibit 1 Let us consider a case where the central ware house is located in Bhopal. The approximate distance to close by cities like is as given below. 1. Bhopal Ahmadabad 500Kms 2. Bhopal Allehabad 500kms 3. Bhopal New Delhi 700kms 4. Bhopal Patna 700kms In Indian road conditions we cannot expect a truck to cover more than 400Kms during night and to add to it there will be delays in check posts , for having dinner , traffic blocks etc. More issues will be there in rainy season winter. Hence it is clear that with a central ware house in Bhopal we will not be able to make a delivery to these cities on time. Exhibit 2 We can have ware house in Ahmadabad and use it to meet the demands of close by cities like Vadodara, Surat, and Gandhi Nagar etc. 1. Ahmadabad to Vadodara 100Kms 2. Ahmadabad to Surat 300kms 3. Ahmadabad to Gandhi Nagar 70kms 4. Ahmadabad to Udaipur 250kms. But before implementing this we need to do an ROI calculation to see whether this is viable or not.

Public Police and Private Security Essay

Abstract         Public police and private security agencies will hardly find a compromise. Public police votes for limitation of private security rights. Private security becomes more popular with the increasing criminalization of the society. In reality, the objectives of public police and private security significantly differ.       The increasing popularity of private security agencies has raised substantial concern among the public police officers. The objectives of public police and private security differ, but public police agencies fear that private security will bury traditional policing standards, and will replace the major policies objectives and responsibilities.          In the general structure of public policing responsibilities, private security guards traditionally fulfill â€Å"supporting roles†. By hiring contractors, some federal agencies save up to 50 percent of their traditional expenditures. â€Å"One firm provides security for six major public transit systems around the country, transports prisoners, maintains booking and security for a juvenile assessment center, and supplies security for court houses in 40 states† (Youngs, 2004). Although private security agencies possess full range of policing equipment, personnel, and opportunities, such agencies are permanently restricted from fully participating in public policing. Potentially, private security and public policing could have similar objectives, but public policing remains purely a state structure. Public police agencies use private security firms to concentrate on their major tasks. In many aspects, these strategies remind outsourcing principles, which are often employed business. In Ontario, private security was given some freedom â€Å"to observe, report, and deter [†¦] elsewhere private security companies are offering quasi-police services in low-income housing projects† (Harman, 2000). Although private security and public policing could effectively combine their efforts, and work for the decrease of criminalization in the country, public policing insists on the fact that public police and private security cannot follow the same objectives.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Public policing continues fulfilling its â€Å"traditional crime-fighting duties. Private security carry out their mission of protecting their companies or clients’ people, property, and information, while at the same time serving the homeland security objectives† (COPS, 2004). Private security and public policing are still too far from joining their efforts and objectives for the benefit of criminal situation in society. References COPS. (2004). Private security / Public policing. Harman, A. (2000). Private security use debated. Law & Order, 48 (6), pp. 125-126. Youngs, A. (2004). The future of public / private partnerships. FBI Law Enforcement Bulletin, 73 (1), pp. 7-12.  Ã‚  Ã‚  Ã‚  

History on Peugeot Automobile Nigeria Essay

Cash-strapped Peugeot Automobile Nigeria, has said that it will soon commence importation of used cars into the country in a move to shore up its revenue profile. The company’s Managing Director, Dr. Haroun Aliyu, said at a news conference held at the ongoing Kaduna International Trade Fair that since Nigeria has a large market for second hand vehicles, there was nothing wrong if PAN imported and certified such vehicles for the use of Nigerians. Justifying the company’s new direction, the PAN boss said that the vehicles to be imported would be certified by the manufacturers, who would also make available the detailed history of the vehicles to prospective buyers, even as he argued that, even in Europe, people patronise used vehicles more than the brand new ones. â€Å"If ownership of Tokunbo cars is the problem of Nigerians, we have plans to bring what we call certified second hand vehicles. It is good as it is done globally and not the road-side Tokunbo market that we have where you do not have the history of the vehicle. â€Å"The certified second hand cars, which we are working on to see how we will launch it in Nigeria is for us to bring in cars that are used, but are recertified by the manufacturers, with a label. â€Å"If you buy a car with a label from any of the networks, it is as good as buying a new car because you have access to all the information as well as all the history of the vehicle and you can be supported by the brand,† he said. He also lamented that government had not been encouraging local automobile manufacturers.

How Support from Employers on Work- Life Balance Affects...

Work-life balance is a combination of interactions among different areas of one’s life; the advantages and disadvantages associated with that balance/imbalance are countless and can affect multiple levels of society (Schoenfeld, 2005). The overall purpose of this project is to investigate if a work environment in which work life balance is anticipated and supported will provide positive impact on employees’ performance and attitude. In addition, this research will examine the current understanding of attitudes toward the concerns of work life balance across the gender roles. This review of qualitative data will provide answers to the following questions. First, would implementing a work life balance provide employees with a happier and†¦show more content†¦The results of the study were categorized by early career stage (age 18-29); developing career stage (age 30-39); consolidating career stage (age 40-49), and pre-retirement career stage (age 50+). In each stage, perceived managerial support and perceived career consequences were found to be correlated to work life balance for employees, whereas job involvement was linked to work life balance in the early and consolidating career phase. It is con firmed by these results that work life balance carries a different meaning at various times of an employee’s life. One limitation to this study is the use of age as a substitute for life stage, which can be misleading to the reader. Also the study examined only the employee’s perspective of work life balance. It would have been valuable to include the employers’ point of view. It would be valuable to further research the company’s current policies to determine the need for work life balance initiatives, thereby address the ever changing needs of the employee. A career stage viewpoint would add significance to the study on work life balance and should also be considered in future investigations. 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Define Marriage Essay - 1840 Words

Name: Chunxian Huang How might we usefully define marriage in universal cross cultural terms? Marriage, which is one of the most vital relationships of human beings, is a bewildering subject in people’s lives because it is hard to define, especially in the cross cultural terms. Cross cultural, according to the fourth edition of the American Heritage Dictionary of the English Language (2000), is defined as â€Å"the interaction of differing cultures, or a comparison†. This means that people in cross cultural terms may need to find ways to respect other cultures. In such case, people have chances to understand the other civilization, to make acquaintances with people from multifarious†¦show more content†¦States Lucile (1977:64), â€Å"one very significant norm in our society holds that marriage is a permanent union with exclusive sex rights†. In other words, marriage enables people to have sex with their spouses stably rather than being blamed for having sex activities with others. Therefore, people have more stable and legal sexual relationship i n marriage than others. An example of this point is that usually sex is associated with marriage for the Nuer in Sudan and they play sexual games to imitate the daily life of marriage (Evans, 1990). This means that for the Nuer, stable sexual relationship is vital for their marriages. According to Opperheimer (1990), sexual relationships need stability and marriage provides the necessary stability. Therefore, it is reasonable to believe that the stability of sexual relationship is one of the vital factors for marriage thus people can define marriage from the perspective of stability. Moreover, the social factors of marriage are family responsibilities and relationship in a family or between families. In Lucile (1977)’s opinion, â€Å"parenthood is usually expected to follow marriage†. Some people get married because they need to undertake the duties of procreation for their clan. 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The Meaning of Heart of Darkness in the Post-Colonial...

The Meaning of Heart of Darkness in the Post-Colonial Climate Since its publication in 1899, Joseph Conrad’s Heart of Darkness has rarely been disputed on the basis of its literary merits; in fact, it was long seen as one of the great novels of the burgeoning modern era, a sort of bridge between the values and storytelling styles of the waning Victorian period and those of the modern era (Gatten), and regarded a high-ranking space amidst the great literature of the century, if not the millennia (Mitchell 20). Conrad’s literary masterpiece manages references to other great literature, universal themes which cut to the heart of philosophical questions of the innate goodness or evil of man, and historical references such as the†¦show more content†¦If Conrad’s intention was to foster debate – or, indeed, disgust –concerning European colonialism, it is ironic that his novel, in the post-colonial era of today, has become the centerpiece of heated debate about the allegedly racist nature of its language and the greater implications of his view of race in light of the fall of colonialism and what most consider a great awakening of sorts in areas of the West’s views on race (Kuchta 160). That is, it is ironic that Conrad’s supposedly anti-colonialist work has earned the distinction of a reputation as representative, in modern academic circles, of a grossly outdated (not to say politically incorrect, in the extreme), highly colonialist and racist mentality. 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Health and Safety Culture at Workplace

Question: Discuss about the Health and Safety Culture at Workplace. Answer: Introduction The case discusses about the various health and safety hazard faced by the workers working in Sopranos Smallgoods, which is a family managed company situated in Bundoora, Victoria. They serve Australian market with a wide variety of assorted meat products, cured using traditional Italian recipes. The workforce at the factory level plays a very important role in the production process required to meet the demand of such large market segment. In any organization the decision and policy making authority lies in the hands of top level management and implementation of these has to be looked after by the middle level personnel. The CEO of Sopranos Smallgoods has been quite concerned about the safety of their workers and has taken all necessary steps to ensure a safe working environment but negligence can be seen on the part of the managers and supervisors who are not monitoring the factory workers. As it is the responsibility of the employer to provide a secure workplace, system and plant to their workforce. An unsafe working environment will risk the lives of the workers and not only increase the financial burden on the organization but also affect their goodwill in the industry. Responsibilities of an employer The employer should disclose all the risks associated with the job to the employee. Proper information, instruction, training and supervision are required to ensure the health and safety at the workplace. Appropriate safety measures such as fire exits, fire extinguisher, clean workplace, and proper safety signs, posters educating the importance of healthy workplace practices should be displayed (CCOHS, 2017) Adequate hygiene facilities at the workplace such as clean toilets, purified water, clean eating areas etc. should be checked. Employees should be provided with training and instruction to deal with accidents and injuries (Worksafe Victoria, 2017). Insurance and workmens compensation should be provided By organizing regular health checkups, the possible health risks can be detected and treated among employees. A health representative should be appointed to keep a check on safety rules being followed by every individual (Safework Australia, 2017). Safety Culture The term refers to a combination of certain attributes and characteristics in an organization and individual that helps to identify and address safety issues according to their level of significance (IAEA, 2017). The employees are committed and dedicated to adopt various safety practices for the overall well-being of an organization. Safety culture has been given less importance in many organizations until there are some serious accidents and injuries takes place and people dont know how to deal with it. This cannot be developed overnight; it is a complex process. (IOSH, 2017) The first move has to be taken by the top level authority which includes formulation of strong and effective policies and procedure along with allocation of resources needed for the implementation of such policies in the organization (CANSO, 2017). The responsibility of implementing such policies should be handed to such a person who is action oriented and has strong leadership skills so that they can explain the importance of developing a safety culture and motivate them to participate actively (IOGP, 2017). Elements of strong safety culture There are certain elements which are required in an organization in maintaining a strong safety culture: Informed culture: In this the organization knows about their safety culture, they continuously reviews their safety performance time to time by taking employees feedback and updating their safety policies accordingly. Reporting culture: The employees are aware about the organizations safety policies and they feel responsible to give their views and suggestions without hesitation to the management regarding safety issues faced by them. Learning culture: In this the organization learns from their past experiences and tries to fix existing loopholes in their safety policies and procedure. Flexible culture: The environment is dynamic, same policies and set of actions cannot be suitable for every situation. So, the management should be flexible enough to adopt a course of action in any situation of hazards and accidents and be prepared for the future. Just culture: The employees working in the organization knows the line between acceptable and unacceptable behavior. They report unacceptable behavior and in return they are being rewarded. On the other hand unacceptable behavior is dealt with fair and just manner (Reasoning, 1998). An organization can improve its safety culture by identifying the stage at which they are operating in the safety culture model. The organization should identify the stage at which they are operating and take actions accordingly to improve and progress ahead in the model. Safety culture model involves 5 stages of making an effective safety culture. The stages are: Emerging, Managing, Involving, Cooperating and continuous improvement. At the emerging stage the organization not concerned about the concept and importance of safe environment, resulting into unavoidable accidents and injuries. Management should get alert about their responsibility of promoting a safe behavior among employees; they should frame effective policies and ensure its implementation. The second stage involves following the safety rules and regulations on the part of the workforce to avoid any accidents. Employees should not only stick to the rules but also get aware about their personal safety responsibilities. At the third stage involvement of workers in the managements initiative of creating a safe workplace can be strongly seen. At the fourth stage employees can relate to the vision of the management, they are willing to take an extra effort in maintaining a safe environment. They also motivate there workfellows to adopt a safe behavior. At the last stage the strong safety culture is created and continuous effort is done to improve the sam e by regularly updating and reviewing the safety policies and procedures by the management (Keil, 2017). Benefits of safety culture to the organization The benefit of having a strong safety culture in an organization is that each and every employee feels responsible about the safety issues existing in an organization and will report it to the concerned authority; as a result necessary steps can be taken to avoid any accidents and injuries in future. There will also be less accident cases as the employees will adopt safety practices, which will further lead to low absenteeism rate resulting increase in the overall productivity of the employee. Presence of strong safety culture gives employees a psychological satisfaction about being safe and secure at the workplace. The perception and attitude of employees with respect to management will change. The turnover rate of the organization will be low and employee retention ratio will be high. Employees morale will also increase. A secure workplace and a concerned management will give individuals a high job satisfaction. The goodwill of the organization will increase in the society as they will not face any law suits. The financial burden will also minimize as they dont have to spend on the healthcare facilities and insurance cover will also be less (Barling and Frone, 2004) Benefits of safety culture to the employees Employees will be able to work in a safe and secure workplace which increases their self-esteem. The stress level will also lower down; as a result they will be able to deliver their best to the organization. Several incentive based programs are conducted to motivate safety behavior in an individual so apart from learning healthy safety habits they can earn monetary and non-monetary rewards too. Components of effective safety culture Safety Policy- There is a commitment from the side of the top level management to make the organization hazard free place for the employees. Nobody can foresee the future, but the risk of accidents and injuries can be prevented by making appropriate policies and procedures. This authority lies in the hands of senior level authority; they should state clear safety objectives to be followed in their mission statement. The work doesnt stop here; the management should get their policies audited and make changes accordingly. Safety Risk Management- Safety professionals should be hired to identify the possible hazards that can occur at the workplace, assessing the degree of risk and then take safety measures accordingly. Safety Assurance- Safety Assurance refers to continuously reviewing the existing policies and standards for improving safety culture and minimizing risk. This can be done with the help of auditors and he alth inspectors. It is recommended that a third party should be hired to audit the workplace safety because they will be able to provide a better and honest verdict regarding any changes to be done in the policies (Federal aviation industry, 2016). Safety Promotion: The management should make every employee accountable for promoting and practicing safety behavior among their coworkers. This can be done by organizing training sessions and seminars in which awareness about workplace health and safety can be generated (OHS, 2017) Recommendations The top level management of the Sopranos Smallgoods only consists of the members of the Sopranos family. They are involved in making meat products and the work is totally factory oriented. The risk of including a professional at the senior level who has the full knowledge about the safety practices to be followed will not only ensure a safer environment but will also increase the efficiency of the management decisions. However if the family members are not interested in hiring someone from outside their management committee, they can form a body of safety professionals having the required qualification which may include health safety executives, safety engineers, coordinators and risk analysts. These professionals will help in analyzing and anticipating risks and design a protocol to be followed in case of any emergency (Newnam, et al., 2016). Also, assigning the job titles such as safety manager or safety buddy to the employees working in the organization will make them feel respons ible and accountable for a promoting a safe behavior among their coworkers and also they will motivated . In case any accident still takes place, a team of experts will be there to handle the situation by providing necessary aid at the first place (Safework Australia, 2017). The careless attitude of frontline managers and supervisors are clearly visible as they are least concerned about the safety practices being followed by the workers at the factory or not. This may lead to fatal workplace injuries; as a result the organization will have to pay heavy loss compensation. This can be prevented by designing an incentive and reward based safety programs. They can be in both monetary and non-monetary terms. While giving performance appraisal not only the productivity of the employee should be kept in mind but there safety habits should also be evaluated (Bernardin, Kane Wiatrowski, 2013). Giving rewards such as monthly gift vouchers, acknowledging safe behavior of employee in front of their coworkers etc. The management should make sure that the benefits of these rewards and incentive should be extended to all the level of the organization in a fair and just manner irrespective of the position of the employee (Beus, McCord Zohar, 2016) A benefit of having a reward system is that it will increase the morale of employee and give them a sense of recognition, promote safe working habits; employees will report more unsafe practices as a result accidents can be prevented, workers compensation claims will also reduce resulting in lowering down the financial burden on the organization. The auditor appointed by the sopranos family noticed many instances where the safety measures were not following properly. The most commonly used machine in smallgoods industry to chop meat pieces are mincers or shredder. Many a times the shredder is not guarded and they are often blocked with meat chunks, workers try to remove the chunks with their bare hands and end up losing their hands or fingers (AMIEU, 2017). In order to avoid such severe injuries it is very important to follow safety measures such as isolating and guarding the equipment and employing competent operators to operate complex machines. Safety signs should be put at all places and frightening messages should be posted near all dangerous equipments. It is the responsibility of employer to provide personal protective equipments to all the workers working in the factory such as gloves, safety glasses and shoes, earplugs, hard hats, respirators, or coveralls, vests and full body suits. The auditor also found out that t he forklifts were not used properly (HSE, 2017). Tipping over of forklifts are very common, major reasons being overloading (BMPA, 2014). Proper information regarding safe handling of such equipment should be provided by professionals to the workers so that the accidents can be avoided. A first aid kit should be kept ready in case of any medical emergencies ( Worksafe queensland, 2017). While recruiting new people in the organization the HR should not only evaluate them on the basis of their qualifications but also see how concerned and aware they are about their own as well as organization's safety. Psychometric test is the most suitable and commonly used method in analyzing the safety behavior of individuals. It consists of set questions regarding safety practices (Psychometrics, 2015). When new workforce is being hired they should be engaged in an induction program which involves explaining the safety culture of the organization and to be accountable for safety behavior at the workplace. The management should also invest in training sessions and seminars organized by safety professionals in which the workers both new and existing will learn to work on complex machines, they will also identify possible workplace hazards and get trained to deal with such situations in case of an emergency (Australian government, 2016). Employees should also have knowledge of person al protective equipment and know how to use them correctly. The method of training may be on the job training, classroom teachings or group discussions. Training sessions at regular time intervals will not only increase the workplace safety awareness among employee but also lower down the accidents rate.(HSE, 2017) Conclusion Safety policies and procedures are mere a written document if they are not reviewed and monitored timely. Management should conduct regular safety audits to ensure an effective safety culture. The auditor examines the condition of the work environment and includes any changes needed in the safety policies in the audit report. This audit report is then presented to the senior level authorities and they make necessary changes to ensure a safe working culture (Friend Kohn, 2017). Apart from auditing, inspection is also important. Inspection can be done by managers or any health safety executive. They can come uninformed at the factory just to check that whether proper safety rules are followed or not on the part of the workers. Factory equipment's should also be inspected on monthly basis. The inspection and audit report help the safety committee to identify the loopholes in their safety policies and prevention of any workplace hazard or injury (OSHA, 2004) By the above report it can be concluded that a strong safety culture proves the commitment of management towards safe workplace practices. A safe working environment not only minimizes the risk of injuries and accidents but also motivate employees to work productively and help the organization in achieving their goals and objective. Safety driven initiatives not only affect the current performance of the organization but they also help in maintaining the goodwill of the firm. Its high time that Sopranos Smallgoods should keep a strict eye on their health and safety practices otherwise the company may face serious troubles such as employees leaving the organization and joining the rival firms where better safety procedures are followed. They may face law suits and heavy compensation which may affect their reputation in the society. Workplace safety should be considered as an integral part of the organizations vision and mission statement and this vision cannot be achieved without the cooperation of every individual working in the organization. References CANSO (2017) Safety Culture Definition and Enhancement Process. Civil Air Navigation Services Organisation, Amsterdam. Retrieved from https://www.canso.org/ on 17 January 2017. Reason J. (1998) Achieving a safe culture: theory and practice. Work stress. Retrieved from https://aml-safety.com.au/AMLstores/_images/pdf-files/21may09-JReason.pdf on 17 January 2017. CCOHS (2017) Health and safety guide for human resource professionals. Canadian Centre for Occupational Health and Safety, Canada. Retrieved from https://www.ccohs.ca/products/publications/pdf/samples/humanresources.pdf on 17 January 2017. Friend A.M. Kohn P.J. (2007) Fundamentals of Occupational Safety and Health, 4th edn. The Scarecrow Press, UK. Worksafe Victoria (2017) Employer rights and responsibilities. Worksafe Victoria, Victoria. Retrieved from https://www.worksafe.vic.gov.au/laws-and-regulations/employer-rights-and-responsibilities on 17 January 2017. Safework Australia (2017) Leadership and culture. Safework Australia, Australia. Retrieved from https://www.safeworkaustralia.gov.au/sites/swa/australian-strategy/action-areas/leadership-culture/pages/leadership-and-culture on 17 January 2017. IAEA (2017) Safety culture. International Atomic Energy Agency, Austria. Retrieved from https://www-ns.iaea.org/tech-areas/operational-safety/safety-culture-home.asp on 17 January 2017. IOSH (2017) Promoting a positive culture: A guide to health and safety culture. The Institution of Occupational Safety and Health, UK. Retrieved from https://www.iosh.co.uk/ on 17 January 2017. IOGP (2017) Shaping safety culture through safety leadership. The International Association of Oil Gas Producers, London. Retrieved from https://www.ogp.org.uk/pubs/452.pdf on 17 January 2017. The keil centre (2017) Safety culture model. The keil centre, Australia. Retrieved from https://www.keilcentre.co.uk/products-services/safe-people/safety-culture/safety-culture-maturity-model/ on 17 January 2017. AMIEU (2017) Safety tips for meat workers. Australasian Meat Industry Employees Union, Australia. Retrieved from https://ohs.amieu.asn.au/files/2012/08/safety_tips_english.pdf on 17 January 2017. HSE (2017) Incentives and rewards for health and safety. Human and safety executive, UK. Retrieved from https://www.hse.gov.uk/construction/lwit/assets/downloads/incentives-and-rewards.pdf on 17 January 2017. OHS (2017) Building Workplace Safety with Rewards and Recognition. Occupational health and safety, Dallas. Retrieved from https://ohsonline.com/Articles/2014/06/01/Building-Workplace-Safety-with-Rewards-and-Recognition.aspx on 17 January 2017. Worksafe Queensland (2017) Forklift safety reducing the risks. Workplace health and safety Queensland, Queensland. Retrieved from https://www.worksafe.qld.gov.au/__data/assets/pdf_file/0005/82535/forklift-safety-reducing-risks.pdf on 17 January 2017. OSHA (2017) Osha law and regulations. Occupational safety and health regulations, US. Reytrieved from https://www.osha.gov/law-regs.html on 17 January 2017. Australian government (2016) Workplace health safety. Retrieved from https://www.business.gov.au/info/run/workplace-health-and-safety on 17 January 2017. BMPA (2014) Health and Safety Guidance Notes for the Meat Industry. British meat and processing industry, London. Retrieved from https://www.bmpa.uk.com/_Attachments/Resources/971_S4.pdf on 17 January 2017 HSE (2017) Personal protective equipments. Human and safety executive, UK. Retrieved from https://www.hse.gov.uk/construction/lwit/assets/downloads/incentives-and-rewards.pdf on 17 January 2017 Federal aviation administration (2016). Safety management concepts. Retrieved from https://www.faa.gov/about/initiatives/sms/explained/components/#safety_policy on17 January, 2017. Barling. J Frone R.M (2004). The psychology of workplace safety. Retrieved from https://www.researchgate.net/profile/Michael_Frone/publication/259754713_The_Psychology_of_Workplace_Safety/links/570d52ff08ae3199889bbe3e.pdf#page=22 on 17 January, 2017. Bernardin. J.H, Kane, S.J Wiatrowski. M (2013). Performance appraisal. Retrieved from https://books.google.co.in/books?hl=enlr=id=QgsMvvLspPQCoi=fndpg=PA257dq=performance+appraisalots=liC-KS4kovsig=-R755dMlWBZwOhKVcmg3wJyQqwU#v=onepageq=performance%20appraisalf=false on 17 January, 2017. Beus. M.J, McCord. A.M Zohar. D (2016). Workplace safety: A review and research synthesis. Retrieved from https://journals.sagepub.com/doi/pdf/10.1177/2041386615626243 on 17 January, 2017 Foran. C, Goode. N. Griffin. M Newnam. S (2016). Defining Safety Communication in the Workplace: An Observational Study. Retrieved from https://www.iscrr.com.au/__data/assets/pdf_file/0006/497706/068-Defining-Safety-Communication-in-Workplace.pdf on 17 January, 2017. Psychometrics (2015), Worksafe predictor. 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