Sample Essay On Transport Management

Introduction

Transport management connects the enterprise resource planning and distribution modules. It has various functions. Among them, we would explore cost control. Cost control pertains to the system of regulating and monitoring the expenses of the fund, particularly the operating costs in business (Theja, 2014). With cost control, quality service could be delivered, meaning that a certain degree of excellence would be brought out to ensure the achievement of the business goals. When it comes to transport management, the primary goal is to ensure safety. Similar to cost control, safety is also a form of control. It is associated to identified hazards and the control upon them in order to arrive at a tolerable risk level. It can manifest in situations that necessitate the protection of people or possessions against health or economic losses.

Cost Control

Although the terms can be closely related, safety and the cost control’s idea of quality are two sides of the same coin. The dynamic cost relationship between safety against service defects and quality management is illustrated below. Organizations that are below average in quality usually confront high costs related to service defects. Such costs include redesign expenses, client defections, legal fees, overheads, materials, labor, and more. There is a level of service quality where the total cost of quality is minimized. Finding it and then operating either at this level or beyond should be the goal of organizations (EASA, 2015).
Given the relationship between safety and quality, we are tasked in finding ways to control these items without affecting safety or quality. In order to better identify control procedures, we divide them into two categories. They are the direct and indirectattributes of the product. Tools, consumables in the likes of grease and cleaning materials, spare parts, and staff are under the direct component. The ones under the indirect component are the indirect staff and consumables, as well as the overhead such as papers.
In the direct component, cost control could be done through leasing expensive tools, identifying quantity, and utilizing available tools. Moreover on its consumables, using cheaper alternatives and machining process would decrease wastes. On spare parts, hiring experienced technicians could reduce the abuse of the items. On staff, control could manifest through utilizing contract staff, limited overtime, and linking extra allowances to target and performance.
In indirect component, particularly on consumables and overheads, control could be achieved through the use of electronic systems in uploading reports and manuals rather than printing them. Utilizing Skype for both domestic and international calls is also recommended. Control also extends to sharing office or building space. On indirect staff, multitasking would be encouraged along with removing internal management centres and implementing centralized processes. Lastly, reviewing the organizational structure, as well as removing the overhead, would significantly implement control.

References

European Aviation Safety Agency (EASA). (2015). Air Operations. [online] Available at: <https://www.easa.europa.eu/easa-and-you/aviation-domain/commercial-aviation/air-operations> [Accessed 23 March 2015]
Theja, S., 2014. Cost Control and Reduction. [online] Available at: <http://www.slideshare.net/shritheja/cost-control-and-reduction> [Accessed 23 March 2015]