Skip to main content

Cost and benefit analysing by The BCG Box Methods?

In 1970, The Boston Consultant Group developed THE BCG Matrix for assessing the investment. This technique is used to identify the cost and return behaviour  on investments. Refer to the below picture.


1. CASH COW: High market share, Low investment, low growth, and low return.

Examples: Investment in real estate, Mutual funds, Policy bonds, Life Insurance, so on.  

 

2. STARE: High market share, High investment, higher growth, and higher return.

Examples: Electronics sector, Electric automobile, IT, Communication, Energy saving, so on.

 

3. QUESTION MARK: Low market share, potential growth, Problem children, and it turns into a star. Examples: Interment in the digital market, Cryptocurrency, Agriculture, so on.  

 

4. DOG: Low market share, Low growth, Low or no return, and worst situation.

Examples: This is classified based on the situations. I.e. Tour, Travel, Manufacturing, Export, so on. in the global pandemic situation.   

 

Use of BCG BOX Analysis:

The investment is categorized based on it behavior. Market share, Interment value, Growth rate, Retention rate, and Future growth, so on. This matrix and the analytic method help investors assess and inverse in right place.   

 

Read more 


Bibliography:

The Boston Consulting Group, 1760: The Boston Box (or) The BCG Charts‌.

 

 

 

Comments

Popular posts from this blog

INDUSTRIAL ENGINEERING FORMULAS, MORE THAN 150 IE FORMULAS - WITH THE COMPLETE DETAILS

  INDUSTRIAL ENGINEERING FORMULAS  More 150 useful formulas with clear details 1.        Second to minute conversion = Observed seconds / 60 2.        Decimal minute = 1 minutes /100 => 0.01 minutes, 3.        1 decimal minutes = 60seconds / 100 => 0.6 seconds   4.        SMV to second conversion = SMV x 60 5.        Cycle Time = Start to end observed time of process 6.        Average Cycle time (ACT) = (CT1, CT2, CT3,… CTn)/n 7.        Basic minute = Observed Minute x Performance Rating 8.        Standard minute = (Observed Minute x Performance Rating) / Standard ratting   9.        Performance Ratting = Observed minute / Standard minutes 10.    Off time = Loss time 11.    On...

How to grade operators skill in the garment industries? For cutting, sewing and finishing section employees

A. Grading: Every employee is graded based on their actual skill known and actual performance. The grading process will be done by IE followed by the actual details of employees. Example: Process skill, Machine Skill, Actual performance, quality in their works, etc. the authenticated input is obtained from actual production report, skill matrix, and operators performance report. B. Type of grading: Grade A: Skilled operators Grade B: Semi-skilled operators Grade C: Basic Operators Grade D: beginner operators Grade E: None sewing process C. Grading wise process 1. SEWING SECTION: GRADE PROCESS MACHINES REMARKS A   1. Attach collar with band (Pick ready) 2. Attach Pocket (without mark) 3. Sleeve PLKT Diamond stitch 4. Sleeve Attached 5. Side seam Feed of Arm 6. Attach Cuff with pleat 7. Finish Round patch bottom (cut/sew) 8. Waist band close SNLS E/C SNLS / DNLS SNLS SNLC ...

How to make the best layout? What are the points that should be considered?

Introduction Garment manufacturing industries are following many types of layouts. In that, most of them are not efficient in all aspects. It is having some won merit and demerit. So, how could we make an efficient layout?   What are the basic points that should be considered? We will review one by one in below session. What is the right layout? Which layout is suitable to produce better efficiency is called right-layout . Simply arranging manpower, machines, furniture, material, etc. could not be the right layout. We have a few key things which should be considered during the layout design.    A. Work balance and workmanship distribution       Thump rule of layout design is workload balancing. Sewing lines is containing many processes. i.e. P1, P2, P3,…., Pn. All the process has to be balanced well. That should not be imbalanced between each and another process. For Example, P1 can produce 120 units, P2 can produce 50 pcs. In these cases, P2 is ...