What is meant by rationalization

rationalization

Term / characterization

Rationalization is a concept of business theory and practice with not clearly delimited conceptual content. In a very broad perspective, rationalization includes all measures that serve to implement the rational principle when conditions change. Rationalization is then characterized by the fact that when the decision-making field changes, measures are planned, implemented and controlled in order to enable optimal target achievement under new conditions. The goals to be optimized can be value, factual and / or social goals. In many cases, however, rationalization is understood to mean only those measures that serve to increase productivity and profitability, which ultimately results in a restriction to the value target.

Operational rationalization

Changes in the decision-making field of a company (changes in the alternative space, the environmental conditions as well as the information about these parameters) occur in a variety of ways, so that rationalization measures can be applied in all areas of a company. Technological development opens up numerous opportunities for rationalization, especially in the production area of ​​an industrial company. An example of this is the increasing automation through the use of machining centers, flexible production cells and flexible production systems, which are becoming increasingly important as part of an integrated CIM concept (CIM) based on a powerful PPS system.

Inter-company rationalization

Inter-company institutions promote company rationalization by researching rationalization possibilities and making the results available to the companies. In particular, the Rationalization Board of German Business (RKW), the German Institute for Standardization (DIN), the Association for Work Studies and Business Organization (REFA) and the Committee for Economic Manufacturing (AWF) are important with regard to inter-company rationalization.