What is a hidden factory?

The term hidden factory is used in organizational operations to describe the types of activities that the company can eventually become financially. This can also lead to situations where the organization makes more effort than required, which will eventually lead to waste over time and raw materials. The final effect of a hidden factory is to cause a company or organization to increase its final costs as a kind of compensatory measures and launch a chain of unpleasant and non -separating consequences. The hidden factory also differs from other items that society may become due to the fact that they are not immediately obvious or tangible.

This example can be seen in a situation where a new employee cannot be operated by machinery used in the production process. In such a situation, the inability of the employee to operate the machinery will initiate the consequences that include the lost work and lessons of the lost person. During this, the company could maintain the sum of all The Hidden Factory and add it to the final product costs. Assuming that the product in question is a kitchen appliance and the company increases the price of the product to compensate for a hidden factory, it will be a company.

In the situation described above, the company still encounters a more hidden factory in the form of unfortunate customers who can rebel when the cost of kitchen facilities. Where this is the case, these customers could do business elsewhere, or they could start complaints against moving towards the company through a customer service. Customer rebellion is a hidden factory because it will affect the bottom line of the company. They also combine the company's resources by being busy with customer service agents when they have a call when they could spend time with potential new customers.

The same applies when the company fails to perform strict processes during the manufacturing process, leading to the production of non -standard or defective Material. For example, if a company that packs and sells fresh eggs, it cannot observe the right processes and the market is sent to the market, such a step will cost a company. Not only will he have to deal with unfortunate customers, memories, possible government sanctions and the cost of destroying eggs, but he may also have to deal with action.