Management decisions

Distributed Darnings. The dividends distributed to stockholders provide the earning on equity capital ia the same way that iaterest is the earning on the debt capital. However, the dividends are an after-tax expense and represent an arbitrary management decision. 

Discounted Ca.sh Flows. Because the flows below the cash flow box in Figure 1 tend to be arbitrary management decisions that are generally difficult to predict, the prediction of profitabiUty is based on the expected cash flows instead of earnings. As a result, some logical assumptions to account for the cost of capital and the recovery of the investment must be made. 

It is also the responsibihty of management to estimate the probabilities for the success of individual projects after due consideration of all the data provided by the various departments. The rate of return on investment that is acceptable to management is a function of these responsibihties. Each industry has a reasonably well defined return on investment that reflects the degree of risk inherent in that industry. If management decisions are faulty, the company either will overspend or will miss opportunities. 

Principles of Accounting Accounting is the art of recording business transactions in a systematic manner. Financial statements are both the basis for and the result of management decisions. Such statements can tell managers or engineers a great deal about their company, provided that they can interpret the information correctly. 

Management decisions might not be very definitive. For example, how does one maximize air-cooling Normally, a study will reveal the optimum crossover temperature between air- and water-cooling (often, air-cooling will be shown to be economical above 140°F). What management really wants in this case is air-cooling wherever it can be used economically. 

Don t limit your corrective action system to products - apply it to all operations including management decision making. 

Process definition and design criteria Process and equipment design Company memory (management information) Documentation of risk management decisions Protective systems Normal and upset conditions Chemical and occupational health hazards... 

Process documentation and knowledge Documentation of hazards, equipment design, risk management decision, etc. applies... 

Policies and procedures for risk management decisions must be estabhshed and be clear and simple if the massive, but necessary, workload of risk assessment and management is not to cripple the chemical industiy s worldwide competitive position and consume inordinate resources through inefficiency. 

EPA. 1999d. Methyl parathion risk management decision. Office of Pesticide Programs. U.S. Environmental Protection Agency. Http //www.epa.gov/pesticides/citizens/mpfactsheet.htm. May 20, 1999. 

IMPROVING THE PHARMACEUTICAL R D PROCESS HOW SIMULATION CAN SUPPORT MANAGEMENT DECISION MAKING... 

Screens used to obtain preliminary information sufficient to make limited management decisions. 

Fig. 18 Inputs to the Ecosystem at risk management decisions (modified after Stahl et al. [53])...

Management can use a variety of criteria to select and prioritize corrective actions and safety improvements. They include costs, other competing priorities, implementation schedules, the effectiveness of risk reduction, and technical feasibility. These criteria, as well as management decisions about corrective actions, must be documented. If after evaluating an action item, management chooses to take no further action, that decision must also be documented. In addition to requiring documentation of management decisions, the PSM Rule requires a system to track implementation of corrective actions to be made. 

Because all corrective actions and safety improvements are management decisions, they should be implemented according to DOE Order 5480.19, "Conduct of Operations Requirements for DOE Facilities."... 

The geochemical and mineralogical properties of the ochre-precipitates are provided in order to demonstrate their ability to concentrate arsenic and metals from the mine water. Additionally, data may support management decisions, regarding disposal or recovery of the wastes, taking into account of their environmental behaviour. 

Process Knowledge and Documentation—The main features here are process definition and design criteria, process and equipment design, company memory (management information), documentation of risk management decisions, protective systems, normal and upset con-dtions, and chemical and occupational health hazards. 

Risk assessment is carried out to enable a risk management decision to be made. It has been argued that the scientific risk assessment process should be separated from the policy risk management process but it is now widely recognised that this is not possible. The two are intimately linked. 

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