Resources > APICS Operations Management Now > March 12, 2010, edition
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APICS Operations Management Now
March 12, 2010, edition
 APICS CEO
Abe Eshkenazi
CSCP, CPA, CAE |
When It Comes to Government Regulations, You Have to Pay Attention
It may seem impossible to keep up with the sheer volume of global business regulations; however, that doesn’t mean these regulations can be ignored. Regulators have little sympathy for companies that don’t follow the rules.
According to the Wall Street Journal, in 2009, the Environmental Protection Agency (EPA) required companies in violation to spend more than $5 billion on cleanup and emission controls in the United States. The EPA limits such pollutants as sulfur oxides, nitrogen oxides, and soot. Now, the EPA is juggling many proposals that aim, for the first time, aim to regulate greenhouse gases. Supply chain and operations managers surely will be called on to overcome challenges these regulations could present.
Financial regulations also are popular. Senator Christopher Dodd, who is a democrat from Connecticut, will introduce Monday a far-reaching financial regulation bill, which is said to address consumer protection, bank regulations, investor protection, corporate governance, and more. If this bill is enacted into U.S. law, businesspeople will have to seriously examine their practices and, perhaps, fundamentally change some common processes. Read more.
One law getting a lot of attention is the Consumer Product Safety Improvement Act (CPSIA), which was enacted to establish consumer product and other safety requirements for children’s products and to reauthorize and modernize the Consumer Product Safety Commission.
Changing operations
According to the APICS Operations Management Body of Knowledge (OMBOK) Framework, “All business must be aware of governmental regulations and required compliance. Examples of regulations in the United States include the Sarbanes-Oxley Act regarding ethical practices and Generally Accepted Accounting Practices (GAAP) regarding financial reporting practices. As trade opens across the world, more and more countries add regulations—making regulatory compliance of global companies more complex.”
The March/April issue of APICS magazine features a cover story addressing the controversial CPSIA and how the law influences everything from small manufacturing to large supply chains. Many stakeholders argue that a federal law is needed to preempt existing state laws. Along those lines, some experts are criticizing the law because it lacks synchronization with similar, existing laws around the world.
No matter where your business operates, regulations, sooner or later, will make an impact. Networking can help. In these complicated situations, sharing and learning from others’ best practices are invaluable. You actively can follow important legislation before it directly affects your operations and supply chain practices.
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How Operations Management Now Relates to You
Operations management is everywhere. Today, operations management professionals have unprecedented impacts on the global economy. Consider these questions and how today’s edition of APICS Operations Management Now relates to you and your career.
- How might greater financial regulations affect your company? What precautions would you consider taking to prevent massive business disruption if the bill is enacted into law?
- What are your thoughts on the product safety law? Have you had to deal with the controversy that surrounds it, or do you know someone who has?
- How important is it for your company to follow legislation and regulations? How can regulations influence your day-to-day business?
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