JackDaniel Cooperage (JDC) is a cocktail brewing industry producing avariety of alcoholic drinks including Gin, Whiskey, and Wine.Initially, the company used 189000 pounds of metal in the manufactureof barrels. Today, it saves up to $94500 of iron scrap waste in itsproduction of barrels. Every organization like the JDC has in place amanagement system that controls its production activities aiming atminimizing losses while maximizing profits (Dubey,2012 Pocztowski, 2013).
Tobegin with, the targets of reducing iron wastage by 50% by the end ofthe financial year of 2017 is a value addition item by itself becausethe organization can then utilize the funds in other developmentareas like acquiring modern technological equipment for production.Pocztowski(2013) saysthat the firm has to put in place other value adding items likeincreasing the inventory to achieve such significant savings.
Secondly,they put in place an employee management system where the employeeswould work on hourly schedules. The institution also made plans toimprove the performance of the employees through awarding outstandingachievements. Finally, the management created a human and jobfriendly environment that fosters improvement across all aspects ofemployee performance and work development.
Allcompanies have non-value adding items which are important inrealizing the set goals (Dubey,2012).A distinctive action by this firm was putting in place a practiceinitiated to track defects in the barrels. This practice alone wouldrequire more workers due to the additional work. Also, the complexityof the entire operation would slow down the production process as awhole. The new practice would require the organization to makearrangements for the employees to acquire further training and getequipped with the new work methods.
Dubey,J. (2012). Gaining competitive edge through strategic value addition:a cost-function
valuemodel. InternationalJournal Of Product Lifecycle Management,6(1),33.
Pocztowski,A. (2013). Adding Value from Human Resource Development inInternational
Assignments.ArgumentaOeconomica Cracoviensia,(9), 9-28.