The Definition Of Health Management Essay

The Definition Of Health Management Essay This assignment is actually will describe about the contradictory demand of cost reduction program and the need to invest to enhance the standard of health, safety and environment (HSE) in the industry. This assignment consist of the definition of Health, the definition of Safety, the definition of environment, Professional Organization in Malaysia, Cost Reduction, Profit, Discussion and also the Conclusion of this assignment. 2.0 THE DEFINITION OF HEALTH Health is the level of functional or metabolic efficiency of a living being. In humans, it is the general condition of a persons mind and body, usually meaning to be free from  illness,  injury  or  pain  (as in good health or healthy). The  World Health Organization  (WHO) defined health in its broader sense in 1946 as a state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity. Systematic activities to prevent or cure health problems and promote good health in humans are undertaken by  health care providers. Applications with regard to animal health are covered by the veterinary sciences. The term healthy is also widely used in the context of many types of non-living organizations and their impacts for the benefit of humans, such as in the sense of  healthy communities,  healthy cities  or  healthy environments. In addition to health care interventions and a persons surroundings, a number of other factors ar e known to influence the health status of individuals, including their background, lifestyle, and economic and social conditions, these are referred to as determinants of health. Generally, the context in which an individual lives is of great importance for his health status and quality of life. It is increasingly recognized that health is maintained and improved not only through the advancement and application of  health science, but also through the efforts and intelligent  lifestyle  choices of the individual and society. According to the  World Health Organization, the main determinants of health include the social and economic environment, the physical environment, and the persons individual characteristics and behaviours. 3.0 THE DEFINITION OF SAFETY Safety  is the state of being safe, the condition of being protected against physical, social, spiritual, financial, political, emotional, occupational, psychological, educational or other types or consequences of failure, damage,  error,  accidents,  harm  or any other event which could be considered non-desirable. Safety can also be defined to be the control of recognized hazards to achieve an acceptable level of risk. This can take the form of being protected from the event or from exposure to something that causes health or economical losses. It can include protection of people or of possessions. There are two slightly different meanings of  safety. For example,  home safety  may indicate a buildings ability to protect against external harm events (such as weather, home invasion, etc.), or may indicate that its internal installations (such as appliances, stairs, etc.) are safe (not dangerous or harmful) for its inhabitants. Safety is the condition of a steady state of an organization or place doing what it is supposed to do. What it is supposed to do is defined in terms of public codes and standards, associated architectural and engineering designs, corporate vision and mission statements, and operational plans and personnel policies. For any organization, place, or function, large or small, safety is a normative concept. It complies with situation-specific definitions of what is expected and acceptable. Security is the process or means, physical or human, of delaying, preventing, and otherwise protecting against external or internal, defects, dangers, loss, criminals, and other individuals or actions that threaten, hinder or destroy an organizations steady state, and deprive it of its intended purpose for being. Safety can be limited in relation to some  guarantee  or a standard of  insurance  to the quality and unharmful function of an object or organization. It is used in order to ensure that the object or organization will do only what it is meant to do. It is important to realize that safety is relative. Eliminating all  risk, if even possible, would be extremely difficult and very expensive. A safe situation is one where risks of injury or property damage are low and manageable. 4.0 THE DEFINITION OF ENVIRONMENT 4.1 Environment system In  science  and  engineering, a  system  is the part of the  universe  that is being studied, while the  environment  is the remainder of the universe that lies outside the boundaries of the system. It is also known as the  surroundings, and in  thermodynamics, as the  reservoir. In some disciplines, such as  information theory,  information  may also be exchanged. The environment is ignored in analysis of the system, except in regards to these interactions. The Environmental systems are vital to the human race and to all living organisms. Without the systems in place and working, we would all cease to exist. Rivers and streams are an example, if the system of this were to not work, then the whole system would collapse. 4.2 Environmental Health Environmental health  is a branch of  public health  concerned with all aspects of the  natural  and  built environment  that may affect human  health. Other phrases that concern or refer to the discipline of environmental health include  environmental public health  and  environmental health and protection. The field of environmental health differs from  environmental science  in that environmental health is concerned with environmental factors affecting human health whereas environmental science is concerned with the environment as it affects ecosystems. Environmental health addresses all the physical, chemical, and biological factors external to a person, and all the related factors impacting behaviours. It encompasses the assessment and control of those environmental factors that can potentially affect health. It is targeted towards preventing disease and creating health-supportive environments. This definition excludes behaviour not related to environme nt, as well as behaviour related to the social and cultural environment, and genetics. Environmental health is defined by the  World Health Organization. Those aspects of the human health and disease that are determined by factors in the environment. It also refers to the theory and practice of assessing and controlling factors in the environment that can potentially affect health. Environmental health as used by the WHO Regional Office for Europe, includes both the direct pathological effects of chemicals, radiation and some biological agents, and the effects (often indirect) on health and well being of the broad physical, psychological, social and cultural environment, which includes housing, urban development, land use and transport. 4.3 Environmental Health Profession Environmental health practitioners may be known as  sanitarians,  public health inspectors, environmental health specialists,  environmental health officers  or environmental health practitioners. In many European countries, physicians and veterinarians are involved in environmental health. In the United Kingdom, practitioners must have a graduate degree in environmental health and be certified and registered with the Chartered Institute of Environmental Health. In Canada, practitioners in environmental health are required to obtain an approved bachelors degree in environmental health along with the national professional certificate the Certificate in Public Health Inspection (Canada). Many states in the  United States  also require that individuals have a bachelors degree and professional  licenses  in order to practice environmental health. 4.4 Disciplines of Environmental Health Three basic disciplines generally contribute to the field of environmental health. The three disciplines of Environmental Health is environmental epidemiology, toxicology, and exposure science. Each of these disciplines contributes different information to describe problems in environmental health, but there is some overlap among them. Environmental epidemiology  studies the relationship between environmental exposures (including exposure to chemicals, radiation, microbiological agents, etc.) and human health. Observational studies, which simply observe exposures that people have already experienced, are common in environmental epidemiology because humans cannot ethically be exposed to agents that are known or suspected to cause disease. While the inability to use experimental study designs is a limitation of environmental epidemiology, this discipline directly observes effects on human health rather than estimating effects from animal studies. Toxicology  studies how environmental exposures lead to specific health outcomes, generally in animals, as a means to understand possible health outcomes in humans. Toxicology has the advantage of being able to conduct randomized controlled trials and other experimental studies because they can use animal subjects. However there are many differences in animal and human biology, and there can be a lot of uncertainty when interpreting the results of  animal studies  for their implications for human health. Exposure science  studies human exposure to environmental contaminants by both identifying and quantifying exposures. Exposure science can be used to support environmental epidemiology by better describing environmental exposures that may lead to a particular health outcome, identify common exposures whose health outcomes may be better understood through a toxicology study, or can be used in a risk assessment to determine whether current levels of exposure might exceed recommended levels. Exposure science has the advantage of being able to very accurately quantify exposures to specific chemicals, but it does not generate any information about health outcomes like environmental epidemiology or toxicology. Information from these three disciplines can be combined to conduct a  risk assessment  for specific chemicals or mixtures of chemicals to determine whether an exposure poses significant risk to human health. 5.0 PROFESSIONAL ORGANIZATION IN MALAYSIA 1. Occupational Safety and Health Agency (OSHA) Occupational Safety and Health Agency OSHA is comprised of a diverse team of safety and quality professionals whose expertise is focused on what the company does best. With technical expertise as diverse and complex as the sites and facilities of its clients, OSHA is strategically positioned to help the regulated community manage a wide range of technical and regulatory issues related to past, present and future operations. OSHA is distinguished by the range and variety of professional disciplines it provides; the advanced technical expertise of OSHA staff; and professional contributions that OSHA has made to industry as well as the local community through participation in a number of projects and events that have helped to raise public awareness related to safety, and quality concerns. OSHA has established long term-valued relationships with our clients, providing customized approaches to occupational injury and illness prevention.   The OSHA organization work closely and discretely with clients to identify hazards and provide perspective on risk. OSHA can then correct deficiencies and improve performance within an existing organizational framework. 2. National Institute of Occupational Safety and Health (NIOSH) National Institute of Occupational Safety and Health (NIOSH) Malaysia is a company limited by guarantee owned by the Government of Malaysia. In the words of the Minister of Human Resources, Malaysia, NIOSH would be a critical catalyst in the promotion of occupational safety and health that would also serve as the backbone to create a self-regulating occupational safety and health culture in Malaysia. NIOSH is committed to ensure a safe and healthy working environment to all employees and others involved in or affected by its operation taking into account statutory requirement and relevant national and international standards and codes of practices.   Implementation and effectiveness of this policy is a line management responsibility together with the participation and involvement of all employees and NIOSH will ensure that adequate resources, training and time are made available.   Safety and Health management systems and programmes will be regularly reviewed to ensure continuous improvement. Humanistic approach will be adopted by NIOSH to promote a safe and healthy work culture which employer and employees share the common responsibility of creating a better work environment for all. This policy will be monitored to ensure achievement of our objectives and reviewed in light of legislative or organizational changes. 6.0 COST REDUCTION Cost reduction  is the process used by companies to reduce their  costs  and increase their  profits. Depending on a companys  services  or  product, the strategies can vary. However, it is important to remember that every decision in the product development process affects  cost. Companies typically launch a new product without focusing too much on cost. Cost becomes more important when competition increases and price becomes a differentiator in the market. There are several types of main cost reduction strategies:- Supplier consolidation Component consolidation Re-source to low cost countries Request For Quotations Supplier cost breakdown analysis Function analysis / Value analysis / Value engineering Design For Manufacture / Design For Assembly Reverse costing Cost driver analysis Should cost Product benchmarking Design to cost Design workshops with suppliers Competitor benchmarking There are right  cost reduction  techniques and there are wrong ones. Using the right strategies will result in a more efficient company spending. Using the wrong techniques will create a reduction of expenses required to maintain product quality and company value. It is a fine line sometimes, but a systematic approach can help managers avoid making serious mistakes in the rush to cut expenses. Cost management strategies should be utilized as components of a larger objective to maintain maximum profitability. As such, cutting expenses will be just one part of a plan that focuses also on maximizing revenue. Effective techniques will begin with the setting of goals and objectives. There can be many reasons why a company might need to cut costs. To create additional cash reserves To reduce price of product or service To bring expenses in line with revenues To eliminate unnecessary expenses or wasteful spending To increase company value To increase competitive advantage To move costs between departments Identifying the goal of the expense reduction exercise will assist with implementation of an effective plan. In other words, if you dont know why you are cutting costs, how are you going to know where to cut costs? The purpose of expense reduction is to help the company towards long term survival. Purposes of expense reduction include: Create cash for reinvest in research and development Reduce manufacturing costs to stay competitive Reduce costs as a non profit so able to serve more people Lower costs of service in order to provide additional services To become more efficient To prevent employee lay-offs To prevent reduction in employee benefits Cost reduction techniques should also be evaluated in terms of impact on the organization. Prioritizing the goals of the cost cutting program will insure that the strategies are implemented appropriately. There are many different ways a company can institute a plan to reduce expenses. Across the board reductions Prioritized reductions Departmental reductions Reductions based on professional assessment Cost reduction techniques can be an important strategy for another reason. They can teach a company to be economical, by forcing a regular review of spending at every level of the organization. It can keep a company vital and streamlined. The Alternate Considered Cost Reduction Ideas When seeking to reduce its expenditures on goods and services, the first thought in many organizations is Lets find cheaper suppliers. But in many cases, sourcing for new suppliers are either not practical or its a suboptimal alternative.  Fortunately, there are several ideas for achieving cost reductions without switching suppliers. Ask You May Receive   Ask your suppliers if they have cost savings ideas. You never know when the answer may surprise you.   Aggregation   According to Patton, Aggregation is any effort that makes the buyers requirements more attractive to the seller by bundling those requirements with the volume of other buyers. This can be internal across business units or geographies or external with other companies. For external bundling, you can build your own consortium or join an existing group purchasing organization. Spec Rationalization   Spec Rationalization involves looking at the goods and services you buy and determining smarter ways to specify them. Patton shares an example from previous employment: We discovered that we had between 80 and 100 different specifications across the company worldwide for water. No reasonable person in Purchasing or Engineering is gonna say that we really need that many specs for water.   Leveraging The Supply Chain   In this technique, youre looking at suppliers suppliers, one or two steps back in the supply chain, Patton explains. Sometimes, the biggest cost component in the equation is really out of your own immediate suppliers direct control. Patton recommends working to identify situations where several of your suppliers buy the same material towards what they make for you and then leveraging that combined demand to drive cost reductions from lower tier suppliers. 7.0 PROFIT A financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity. Any profit that is gained goes to the businesss owners, who may or may not decide to spend it on the business. Calculated as: Profit = Total Revenue Total Expenses Profit is the money a business makes after accounting for all the expenses. Regardless of whether the business is a couple of kids running a lemonade stand or a publicly traded multinational company, consistently earning profit is every companys goal. 7.1 Economic Profit In neoclassical  microeconomic  theory, the term  profit  has two related but distinct meanings.  Normal profit  represents the total  opportunity costs  of a venture to an investor, whereas  economic profit  is, at least in the  neoclassical microeconomic theory  which dominates modern economics, the difference between a  firms total  revenue  and all costs (including normal profit).   A related concept, sometimes considered synonymous in certain contexts, is that of  economic rent. Other types of profit have been referenced, including  social profit  (related to  externalities). It is not to be confused with  profit in finance and accounting, which is equal to revenue minus only explicit costs and  super profit. Profit is not synonymous with the concepts of profitability and the  profit motive. 7.2 Normal Profit Normal  profit is a component of (implicit) costs and so not a component of business profit at all. It represents the opportunity cost for enterprise, since the time that the owner spends running the firm could be spent on running another firm. The enterprise component of normal profit is thus the profit that a business owner considers necessary to make running the business worth his while for example it is comparable to the next best amount the entrepreneur could earn doing another job. Particularly if enterprise is not included as a  factor of production, it can also be viewed a return to capital for investors including the entrepreneur, equivalent to the return the capital owner could have expected (in a safe investment), plus compensation for risk.   In other words, the cost of normal profit varies both within and across industries; it is commensurate with the riskiness associated with each type of investment, as per the risk-return spectrum. Only normal profits arise in ci rcumstances of  perfect competition  when long run  economic equilibrium  is reached; there is no incentive for firms to either enter or leave the industry. 8.0 DISCUSSION 1. Cost Reduction  by Design How to Reduce Product Cost by Design: Practice  Concurrent Engineering  with early and active participation of manufacturing, purchasing, vendors, etc. Implement  Design for Manufacturability  ( DFM ),  Design for Lean, and  Design for Quality For dramatic cost reduction   half cost to order-of-magnitude  Ã‚  optimize the concept/architecture phase To convert ideas, research or prototypes into viable products, use commercialization techniques to ensure success Activities Supportive to Low Cost Product Development: Co-locating Engineering with Manufacturing  ensures the best teamwork; avoid distant  off shoring If outsourcing, choose local vendors which ensures early and active vendor participation in product development teams Pre-select Vendor/Partners  who will help develop products, avoid low-bidding so that vendors will help with design Implement  standardization  and good product portfolio planning for the best focus Total cost measurements  to quantify all costs affected by design Correcting  Counterproductive Policies.  Ã‚  New ventures and start-ups will be able to implement these principles right away. Established companies may have to first correct  counterproductive policies, by prioritizing portfolio planning, scrutinizing high-overhead sales, emphasizing thorough up-front work, quantifying all costs, and avoiding time-draining attempts to  reduce cost after design, going for the  low-bidder, or  moving production offshore. See full  article on counterproductive policies. 2.  Lean Production  Cost Reduction How to Reduce Manufacturing Cost: Implement Lean Production Activities Supportive to Lean Production: Design product families for lean production Concurrently Engineer flexible processes Implement  standardization to enable  dock-to-line distribution Rationalize products to eliminate the most unusual products with the most unusual parts and processes Total cost measurements to quantify all costs related to manufacturing Keep control of manufacturing in house or with vendor/partners. 3.  Overhead  Cost Reduction How to Reduce Overhead Cost: Implement  Build-to-Order  and  Mass Customization  to build products on-demand without forecasts or inventory Activities Supportive to Build-to-Order Mass Customization: Implement  lean production Rationalize products Total cost measurements  to quantify overhead costs 4.  Standardization  Cost Reduction How to Reduce Cost with Standardization: Implement Standardization  with a practical procedure has been developed to standardize part and materials for new designs Activities Supportive to Standardization: Rationalize products  to eliminate or outsource the most unusual products that have the most unusual parts and materials Total cost measurements  to justify standardization efforts and encourage picking standard parts 5.  Product Line Rationalization  Cost Reduction How to Reduce Cost with Product Line Rationalization: Implement Product Line Rationalization  to eliminate or outsource low-profit products that have high overhead demands and are not compatible with cost reduction strategies Activities Supportive to Product Line Rationalization: Product Portfolio Planning focuses new product development Total cost measurements  to identify opportunities and supports rationalization decisions 6.  Supply Chain Management  Cost Reduction How to Reduce Cost in Supply Chain Management: Design products around standard parts  to simplify Supply Chain Management Standardize parts  to focus Supply Chain Management on high-volume, easy to get parts Rationalize away the most unusual products  which have the most usual, hardest-to-get parts Establish Vendor/Partnerships, which saves more money than  low-bidding Activities Supportive to Supply Chain Cost Reduction: Total cost measurements  to encourage and justify standardization and rationalization Dont merge acquired products into the same plant or build others products 7.  Quality Cost  Reduction How to Reduce the Cost of Quality: Eliminating quality costs starts with  designing in quality Rationalizing away unusual products  raises net factory quality and avoids wasting quality resources on inherently lower quality products Activities Supportive to Quality Cost Reduction: Total cost measurements to quantify the Cost of Quality 8.  Total Cost  Measurement to Support All Cost Reduction Activities How to Reduce Cost with Total Cost Measurements: Implement total cost measurement  with the easy-to-implement  cost driver  approach Activities Supportive to Total Cost Measurements: Until total cost can be quantified, everyone must make decisions based on  total cost thinking Senior management understands the importance of quantifying total cost, implements total cost measurements, and encourages all cost decisions to be made on basis of total cost 9.0 CONCLUSION As conclusion we can said that, the objectives of this assignment have been achieved which is to understand how to be cost effective but yet meeting the ever increasing HSE requirement. The conclusion is made due to what I have done about this assignment, describe properly about the problem required in this assignment. Cost becomes more important when competition increases and price becomes a differentiator in the market. Identifying the goal of the expense reduction exercise will assist with implementation of an effective plan. The purpose of expense reduction is to help the company towards long term survival. 10.0 REFERENCES [1] http://mydiposh.wordpress.com/tag/niosh-malaysia/ [2] http://www.niosh.com.my/en/ [3] http://www.pwc.com/gx/en/cost-reduction/index.jhtml [4] http://www.the-cost-reduction-consultant.com/CostReduction.html [5] http://www.nextlevelpurchasing.com/articles/cost-reduction-ideas.html?gclid [6] http://www.halfcostproducts.com/