Thursday, October 31, 2019

Britain's privatized railway system Literature review

Britain's privatized railway system - Literature review Example This freed up the Secretary of State to give the relevant board directions concerning the disposal of its holdings. This Act was necessary because the government at all times had to act by the rules that were established by various Acts covering transport and railways, which would have stopped the board from disposing of the assets. Following the Secretary of state’s actions, he directed for the formation of Rail-track PLC, which, in turn, paved the way for 1993’s Railways Act. The British Railways Board’s operations were subsequently sold off. At the time, the process was riddled with controversy and some of the results have lent credence to the criticism that came its way. The manner of the privatization also led to widespread criticism from over twenty companies involved, especially for its complexity. Following the Swedish example that seemed apparently successful, the BEU issued directive 91/440, wishing to enable new rail operators to access the market (Jupe & Crompton, 2006: p1038). EU member states were required to separate infrastructure and railway management operations from transport services with account separation termed, as compulsory to all industries that were formally owned by the state with while separation with institutions being optional. The EU hoped that track operators would levy a transparent fee that would allow operators to run networked trains under open access. British Rail was privatized between 1994 and 1997 with Rail-track given ownership of infrastructure and track in April of 1994. Following this, there was franchising of passenger operations to operators in the private sector with outright sale of freight services. BRB Ltd. got the remaining British rail obligations. When John Major replaced Margaret Thatcher as the Conservative party leader in late 1 990 the privatization of the British Rail begun to pick up steam. The government under Thatcher had sold off almost all industries that were formally owned by the state with the exception of British Rail. Even though, Cecil Parkinson, the previous Secretary for Transport had led advocacy for a form of semi-private or private ownership of the British rail network, Thatcher had deemed it too much (Jupe & Crompton, 2006; p1039). In the 1992 elections, the Conservative manifesto included a privatization commitment for the British rail network, although the specifics were not set out clearly. Triumphing over opinion polls, the Conservatives won the 1992 elections and had to, consequently, come up with a plan to privatize British Rail prior to the publishing of the Railways Bill the following year (Haywood, 2007: p200). British Rail’s management led a strong advocacy campaign for the privatization of British Rail under a single entity with John Redwood, a Cabinet Minister, arguing for the regional companies that were in charge of trains and track, although the Prime Minister did not back this at the time. Consequently, following pressure from a think tank fronted by the Adam Smith Institute, the treasury advocated for seven franchises for passenger railways, which later expanded to 25, as a means of revenue maximization. The treasury prevailed in this instance. In addition, privatization of British Rail became a reality. In 1997, the Labor government took over after almost all privatization had been carried out and failed to act, on its earlier promise, to return to the public sector the railway system (Haywood, 2007: p200). It, instead, elected to leave the structure as it was and even oversaw the completion of

Tuesday, October 29, 2019

Corruption in the Correctional System Essay Example | Topics and Well Written Essays - 1750 words

Corruption in the Correctional System - Essay Example epresenting the authority (management body) want to earn more money since most of the time they are poorly paid by the government by accepting gifts from the inmates so that they can practice drug trafficking inside the jail. This kind of deviance practice is referred to as malfeasance. On the other hand, the inmates practice deviance by any means possible such as misfeasance that may include offering themselves for sex with officers in order to seek gratuities for preferential treatment and special privileges. Correctional systems were early formed to serve as facilities for galley slavery, transportation, jails and prisons for community correction. Moreover, prisons and community corrections were formed to prevent the use of violence or coercive responses to slaves. For example, prisons were created in 1700s in the United States as a form of physical punishment to the wrongdoers. In terms of hierarchy, the underlying goal of a hierarchy on the correction facility is to ensure physical control. Correctional facility favors custody and security and differentiates between security levels. First, there is prison administrator who is at the head of hierarchy. The administrator ensures control is by reaching an agreement with the inmates and utilizes the inmate power structure by overlooking rule infractions in exchange for support to the status quo. On the other hand, correction facilities are categorized as minimum, medium or maximum society categories. Maximum-security correction acts as punishment centers for practicing the maximum order and do n act as rehabilitation and treatment center. The main purpose that maximum correction facilities observe as a daily routine is to keep inmate occupied with intensive inspection. Moreover, segregating inmates for the security purpose makes other inmates unable to access treatment programs. Medium security correctional facility has external security on the inmates as tight as in supermax or maximum correctional facility.

Sunday, October 27, 2019

Lean Manufacturing | Literature Review

Lean Manufacturing | Literature Review Since the 1980s, numerous businesses in various sectors of industry have continually been introducing programs intended to improve both productivity and quality. Several authors have posited lean manufacturing or lean production as the best possible production system and one that can be implemented in any industry and any process (Bonavia and Marin, 2006 and Lee-Mortimer, 2006). Doolen and Hacker (2005) mentioned that different researchers have explored the portability of lean practices both within and between different manufacturing sectors. In accordance, a variety of surveys conducted in different types of industry (Soriano-Meier and Forrester, 2002, Bonavia and Marin, 2006, Doolen and Hacker, 2005, Sà ¡nchez and Pà ©rez, 2001 and Taj, 2008) proved that lean is widely successful in a variety of industrial sectors. However, there are two problematic issues regarding lean manufacturing have been addressed in several studies. First, Shah and Ward (2007) claimed that any discussion of lean production points to an absence of common definition of the concept. Likewise, Pettersen (2009) alleged that there is no agreed upon definition of lean that could be found in the literature. Papadopoulou and ÃÆ'-zbayrak (2005) declared that there is no consensus in different researchers perceptions to the concept of lean which leads to conflicting results in identifying and classifying its practices and techniques. Second, there is conflict in using terms such as elements, principles, constructs, techniques and practices. Papadopoulou and ÃÆ'-zbayrak (2005) mentioned that some of the elements of lean are actually referring to the goals and objectives rather than techniques or tools (e.g. elimination of waste, lead time reduction) and, in addition, a number of other best manufacturing practices (such as agile manufacturing) were used in literature as lean practices. Moreover, Shah and Ward (2007) underscored that identical items are used to operationalize vastly different concepts and different items are used to operationalize the same construct. Thus, Shah and Ward (2007) argued that a great source of confusion and inconsistency associated with lean is the more substantive disagreement about what comprises lean production and how it can be measured operationally. Statement of the problem The above mentioned issues revealed three confusions surrounding the lean concept in literature, which are (1) the lack of a consistent definition of lean, (2) the disagreement about the elements that comprise lean manufacturing and (3) the lack of a measurement tool for assessing changes towards lean implementation. With the aim to clarify and resolve these confusions, this chapter has three main objectives; (1) to propose a conceptual definition of the term lean manufacturing that captures all its main facets, (2) to provide a framework that identifies its major elements and practices, and (3) to develop an operationalized model to assess changes towards lean manufacturing implementation. To achieve these objectives, an in-depth literature review is conducted regarding the topic of lean manufacturing. At first, the concept of Lean and its main principles are introduced. Next, the elements of lean manufacturing and the practices for lean implementation will be investigated. Finally, different indicators that measure the progress achieved towards lean are explored. The concept of Lean Lean was associated with the practice of deciphering the value added activities from those that are waste in an organization and its supply chain (Comm and Mathaisel, 2005). Motwani (2003) declared that companies need to focus on each product and its value stream in order to distinguish between wasted activities and that actually create value. Moreover, Papadopoulou and ÃÆ'-zbayrak (2005) stated that leanness was introduced as an approach to manufacturing that was aiming at the elimination of waste while stressing the need for continuous improvement. However, lean manufacturing is much more than a technique, it is, in addition, a way of thinking (Taj, 2008). The issue of lean thinking was widely discussed in different researches. Comm and Mathaisel (2005) believed that lean thinking removes the traditional way people think about roles and responsibilities through remaining focused on the customer and the core competencies that the customer values from an organization. Therefore, Bhasin and Burcher (2006) claimed that for a successful implementation, numerous cultural changes are required for embracing empowerment and disseminating the lean principles through-out the value chain. Similarly, Taj (2008) confirmed that lean as a way of thinking creates a culture in which everyone in the organization continuously improve operations. In accordance, Comm and Mathaisel (2000) introduced leanness as a philosophy that intended to significantly reduce cost and cycle time throughout the entire value chain while continuing to improve product performance. Hence, lean should be described from two points of view; the philosophical perspective and the practical perspective (Shah and Ward, 2007). From the philosophical perspective, lean is viewed as an overall organizational philosophy that should affect the people way of thinking and behaving (Papadopoulou and ÃÆ'-zbayrak, 2005 and Bhasin and Burcher, 2006). This philosophy drives the guiding principles and the overarching goals of lean (Shah and Ward, 2007). On the other hand, the practical perspective see lean as a set of management practices, tools and techniques (Shah and Ward, 2007) that are used to apply the philosophy and to achieve the goals (Bhasin and Burcher, 2006). This two-perspective view of lean is supported by the definition of lean as a socio-technical system. Such system combines both technical system; i.e. technology and social system; i.e. people and organizational structure (Bhasin and Burcher, 2006). In the same context, Shah and Ward (2007) asserted that to pursue lean production, firms have to effectively manage their social and technical systems simultaneously. Moreover, Cua et al. (2001) proved that joint optimization of both socially- and technically-oriented policies or practices is necessary for achieving good results. Regarding its implementation, Panizzolo (1998) demonstrated that the wide range of lean practices are related to interventions in the manufacturing area, actions taken in other areas of the firm (design, HR, strategy, etc.) and relationships with both suppliers and customers. Likewise, Shah and Ward (2003) stated that lean should be seen as a multi-dimensional approach that encompasses a wide variety of management practices. This conceptualization of lean as multidimensional strategy is supported by a wide range of researchers (Doolen and Hacker, 2005, Karlsson and Ã…hlstrà ¶m, 1996, Shah and Ward, 2007 and Papadopoulou and ÃÆ'-zbayrak, 2005). However, it is well accepted among researchers that lean should be implemented as an integrated system (Shah and Ward, 2007, Bhasin and Burcher, 2006, Karlsson and Ã…hlstrà ¶m, 1996 and Papadopoulou and ÃÆ'-zbayrak, 2005). Shah and Ward (2007) suggested that a well-developed lean strategy implementation will require firms to exert considerable effort along several dimensions simultaneously. Bonavia and Marin (2006) concluded that there are only few relationships between the degree of use of lean production practices individually and operational performance (in terms of productivity, quality, lead time and inventory). In the same vein, Shah and Ward (2003) provide unambiguous evidence that the synergistic effects of all lean practices are associated with better manufacturing performance. Another feature of lean manufacturing that was emphasized in literature is its time-frame of implementation. Bhasin and Burcher (2006) and Doolen and Hacker (2005) believed that lean is a long-term multidimensional organizational strategy. Papadopoulou and ÃÆ'-zbayrak (2005) affirmed that transformation to lean requires a lot of effort, time and participation of all organization levels in addition to make changes in company culture and organizational structure. Thus, lean enterprises should continuously find ways to eliminate consumption of resources in their struggle to deliver value to their customers. In correspondence, the implementation of the lean program in the case study discussed in (Lee-Mortimer, 2006) proved that lean is not just a project, it is a long-term continuous journey which is implemented as a sequence of stages or projects. In conclusion, lean manufacturing embraces different features that should be taken into consideration when defining this concept. Lean should be viewed as a philosophy, affecting company culture, rather than a set of tools/techniques. This, in turn, reveals the importance of managing social system as well as technical system simultaneously. Moreover, lean implementation scope is not confined to the manufacturing function of a company, rather it relates to all functions ranging from product development, procurement and manufacturing over to distribution. Since lean companies seek to deliver value to their customers, this value should be predefined and delivered, while waste, which customers are not willing to pay for, should continuously be eliminated. All the aforementioned features of lean manufacturing can be captured in the following proposed conceptual definition. Lean manufacturing is a philosophy and a long-term strategy that is applied through a socio-technical system integrating all functions within the organization with the aim of continuous waste elimination while delivering outcomes that meet continuously predefined customer value. Lean principles Lean philosophy is mainly based on the principle of eliminating waste. Waste is anything other than the minimum amount of equipment, materials, parts, and working time that are essential to add value (Taj, 2008, Bonavia and Marin, 2006 and Karlsson and Ã…hlstrà ¶m, 1996). Sà ¡nchez and Pà ©rez (2001) cited that the main goal of lean is to eliminate all activities that do not add value to the product. Value should be specified as it is perceived by customers (Andersson et al., 2006 and Dahlgaard and Dahlgaard-Park, 2006). If the task does not add value from the customers point of view, it should be modified or eliminated from the process (Andersson et al., 2006). It is believed that by minimizing waste and zero-value added activities, companies can reduce production costs and the overall production system will be more efficient (Comm and Mathaisel, 2005 and Karlsson and Ã…hlstrà ¶m, 1996). Since inventory is considered one of the critical sources of waste (Sà ¡nchez and Pà ©rez, 2001 and Karlsson and Ã…hlstrà ¶m, 1996), Dahlgaard and Dahlgaard-Park (2006) declared that the traditional way of producing in batches is inefficient as it requires goods to wait in inventories before the next production step is started up. Thus, Motwani (2003) mentioned that the value must flow to the customer without interruptions. Andersson et al. (2006) confirmed that focus should be on organizing a continuous flow through the production or supply chain rather than moving commodities in large batches. Closely related to the continuous flow is the principle of just-in-time (JIT), since the ultimate goal that every process should be provided with only one part at a time, exactly when that part is needed (Karlsson and Ã…hlstrà ¶m, 1996). Moreover, if continuous flow is not possible (Lummus et al., 2006), the way of scheduling the flow of material should be pull instead of push (Motwani, 2003 and Dahlgaard and Dahlgaard-Park, 2006). This means that customer demand should pull finished products through the system with the aim of not carrying out any work unless the result of it is required downstream (Andersson et al., 2006). It is obvious that to succeed in the implementation of any modern system, everyone from top management to any lower level should make sincere efforts, and set their goals jointly through active participation and understanding (Ahmed et al., 2004). According to (McKone et al., 1999), employees can contribute significantly to the organization when they are allowed to participate in decisions that impact their area of responsibility. As a result, involvement from all employees allows companies to better use of its available resources (McKone et al., 1999). This principle reflects the conceptualization of lean manufacturing as a socio-technical system, since it highlights the importance of managing social system as well as technical system. Since lean is viewed as a long-term strategy, lean philosophy emphasizes continuous improvement. Several researchers (Karlsson and Ã…hlstrà ¶m, 1996, Comm and Mathaisel, 2005 and Sà ¡nchez and Pà ©rez, 2001) affirmed that one of the most fundamental principles of lean is the search for continuous improvement in products and processes. Lummus et al. (2006) mentioned that processes should be managed towards perfection to continuously reduce the time needed to serve the customer. Likewise, Andersson et al. (2006) underscored that the elimination of non-value-adding elements (waste) is a process of continuous improvement. In this context, Sà ¡nchez and Pà ©rez (2001) highlighted the importance of employees involvement and top management support to create and train improvement teams that lead the organization to move toward zero defects. Based on the analysis of lean previous studies, it is concluded that there are five key principles / overarching goals which can be considered the bases for the lean philosophy. These principles are; (1) waste elimination, (2) customer value identification, (3) continuous production flow, (4) employees involvement and (5) continuous improvement. Furthermore, the aforesaid lean principles confirm some issues in the proposed conceptual definition. The unambiguous believe that elimination of waste is the fundamental goal is affirmed since lean is regularly defined as manufacturing without waste. Likewise, identifying value as perceived by customer is asserted in the proposed definition. Moreover, seeking continuous improvement as a principle of lean philosophy reflects the long-term nature of lean implementation. Thus, the proposed definition stresses the aim of continuous waste elimination and highlighted the need to continuously predefine customer value. Also, the importance of employ ees involvement emphasizes the social phase of the lean system as a socio-technical system. Finally, holding in mind these principles / goals underscores the view of lean as a philosophy that affects the people way of thinking. Lean implementation framework Previous studies concerning lean manufacturing revealed a number of manufacturing practices that are commonly associated with lean implementation. The initial step towards developing a framework for lean implementation is to capture different practices and combine them into inter-related groups in accordance to the multi-dimensional nature of lean manufacturing. The term practices in this context refers to the predominant methodologies that may include many techniques and tools. Shah and Ward (2003) identified and empirically validated combining lean practices into four specific lean bundles: namely Total Quality Management (TQM), Just In Time (JIT), Total Productive Maintenance (TPM) and Human Resources Management (HRM). Bonavia and Marin (2006) found enough agreement in literature to identify the first three bundles; TQM, JIT and TPM, while Cua et al. (2001) are of the opinion that human and strategic-oriented practices are common practices that support all other three bundles. Although there is general agreement within operations management literature that JIT, TPM, TQM and HRM are conceptually, theoretically, and empirically well established (Shah and Ward, 2003), there is no unanimous classification of the lean manufacturing practices that make up each of the four bundles (Bonavia and Marin, 2006). Therefore, in an attempt to provide a framework for lean implementation comprises the actual practices that represent each of the four mentioned bundles, the basic theme of these bundles are identified. Then, different lean practices are combined into each of these bundles based on reviewing different research papers regarding lean implementation practices, in addition to articles that were focused mainly on one of these bundles. TQM bundle Lack of quality is a major source of waste, since the defective parts and products that need to be reworked or scrapped do not add any value to the customer and should be eliminated in order to attain high productivity (Karlsson and Ã…hlstrà ¶m, 1996). Sà ¶derquist and Motwani (1999) underscored that quality should be a top management issue and continuous improvement efforts together with the zero error objective should be company-wide and extended over company limits in production chains. Cua et al. (2001) defined total quality management (TQM) as a manufacturing program aimed at continuously improving and sustaining quality products and processes by capitalizing on the involvement of management, workforce, suppliers, and customers, in order to meet or exceed customer expectations. Sà ¶derquist and Motwani (1999) emphasized that TQM approach is the philosophy that should underpin the quality project in a lean company. The practices combined to form the TQM bundle include; product quality control, visual management (Cua et al., 2001, McKone et al., 1999 and Sà ¶derquist and Motwani, 1999), process management (Shah and Ward, 2003, Cua et al., 2001 and McKone et al., 1999), product design and development (Cua et al., 2001 and Sà ¶derquist and Motwani, 1999), standardization (Sà ¶derquist and Motwani, 1999), suppliers quality management and customers involvement (Cua et al., 2001 and McKone et al., 1999). JIT bundle Just-in-time philosophy means to deliver the right part in the necessary quantity and at the right time (Canel et al., 2000, Sà ¡nchez and Pà ©rez, 2001 and Karlsson and Ã…hlstrà ¶m, 1996). Ahmed et al. (2004) defined JIT as a philosophy and system concept of doing, maintaining and producing what is value adding or what is just needed, be it raw materials, components, parts, WIP, employees, or finished products. Cua et al. (2001) asserted that the primary goal of JIT, as a manufacturing program, is continuously reducing and ultimately eliminating all forms of waste through JIT production and involvement of the work force. JIT basic techniques include set-up time and lot size reduction, pull production systems (Shah and Ward, 2003, Cua et al., 2001 and McKone et al., 1999), equipment layout and cellular manufacturing (Shah and Ward, 2003 and Cua et al., 2001), production leveling and scheduling and JIT delivery by suppliers (Cua et al., 2001 and McKone et al., 1999). TPM bundle It has been accepted beyond any doubt that maintenance, as a support function in businesses, plays an important role in backing up many emerging business and operation strategies like lean manufacturing (Ahuja and Khamba, 2008b). Without having a productive maintenance system, lean production, just-in-time (JIT) or total quality management (TQM) environment cannot be attained (Ahmed et al., 2004). TPM is a proven and successful procedure for introducing maintenance considerations into organizational activities (Eti et al., 2004). Ahuja and Khamba (2008b) stated that TPM is a methodology originating from Japan to support its lean manufacturing system, since dependable and effective equipment are essential pre-requisite for implementing lean manufacturing initiatives in the organizations. Cua et al. (2001) and Shah and Ward (2003) defined TPM as a manufacturing program designed primarily to maximize equipment effectiveness throughout its entire life through the participation and motivation of the entire work force for performing planned predictive and preventive maintenance of the equipment and using maintenance optimization techniques. TPM, according to McKone et al. (1999), provides a comprehensive company-wide approach to maintenance management which is usually divided into short-term and long-term elements. In the short-term, TPM basic practices include; industrial housekeeping, autonomous maintenance (Cua et al., 2001, Eti et al., 2004 and McKone et al., 1999), and planned preventive and predictive maintenance (Shah and Ward, 2003, Cua et al., 2001, Eti et al., 2004 and McKone et al., 1999). In the long-term, TPM efforts focus on new equipment and technology acquisition (Shah and Ward, 2003, Cua et al., 2001 and McKone et al., 1999). HRM bundle Human resources have a critical role in carrying out the continuous improvement plans which are the basis for success in lean implementation (Panizzolo, 1998). Eti et al. (2004) claimed that the degree of employees eagerness to embrace change determines the rate of progress towards that goal. Moreover, McKone et al. (1999) declared that employees are the greatest sources of information for companies to improve their performance. Shah and Ward (2003) affirmed that the HRM bundle has significant theoretical and empirical support. The most commonly cited HRM practices are employees involvement (Shah and Ward, 2003, Cua et al., 2001 and McKone et al., 1999), multi-skilled workforce, multi-functional work teams (Shah and Ward, 2003), education and training (Shah and Ward, 2003, Cua et al., 2001 and McKone et al., 1999), performance-based compensation system (McKone et al., 1999) and information and feedback (Cua et al., 2001 and McKone et al., 1999). Lean operationalized model Traditionally, managers have relied heavily on accounting metrics to determine efficiency, such metrics reflect the final state achieved as the result of a long chain of decisions (Taj, 2008), while lean should be seen as a direction rather than a state to be reached after a certain time (Karlsson and Ã…hlstrà ¶m, 1996). Therefore, managing a lean factory requires key information to assess the changes taking place in the effort to introduce lean (Sà ¡nchez and Pà ©rez, 2001 and Karlsson and Ã…hlstrà ¶m, 1996). Consequently, in order to develop an operationalized model for lean manufacturing, the aforementioned bundles and practices will be discussed with focus on identifying the indicators that can be used in assessing changes towards lean implementation. It is important here to note that the focus lies on the changes in these indicators, not on their actual values. So, the desired direction of each indicator, if moving in a lean direction, will be also specified. Measurement of TQM basic practices Since the ultimate goal of TQM practices is to achieve zero defects, Motwani (2001) mentioned that the percentage of defects (TQM1) and the percentage of products needing rework (TQM2) are among the common quality outcome indicators employed by several researchers. Product quality can be controlled through the involvement of production line workers for identification and adjustment of defective parts and their authority to stop lines when defective parts are found in order to avoid any defective parts moving to the next production stage (Karlsson and Ã…hlstrà ¶m, 1996). Thus, Sà ¡nchez and Pà ©rez (2001) used the percentage of defective parts adjusted by production line workers (TQM3) as an indicator of transferring the responsibility for products quality from the quality control department to the line workers. In addition, Karlsson and Ã…hlstrà ¶m (1996) alleged that the number of quality control personnel (TQM4) and the size of repair area (TQM5) can be reduced as a consequence. Furthermore, Karlsson and Ã…hlstrà ¶m (1996) declared the use of autonomous defect control (poka yoke) as inexpensive means to help conducting inspection of all units with the ultimate goal of zero defects. Therefore, the percentage of inspection carried out by autonomous defect control (TQM6) is a common measure (Sà ¡nchez and Pà ©rez, 2001 and Karlsson and Ã…hlstrà ¶m, 1996). Visible graphs and panels are used to gather performance data, to plot different measurements and to identify specific problems and causes of delay in order to take efforts for resolution (Lee-Mortimer, 2006 and Bonavia and Marin, 2006). For this, Bonavia and Marin (2006) measured the percentage of work areas where visible graphs panels are used (TQM7) as an indicator for visual management. In addition to controlling products quality, process management is essential to obtain fault free parts and products from the very beginning (Karlsson and Ã…hlstrà ¶m, 1996). Cua et al. (2001) emphasized the use of Statistical Process Control (SPC) techniques in monitoring processes to ensure that each process will supply defect free units to subsequent process. Shah and Ward (2007) and Bonavia and Marin (2006) measured the percentage of equipment / processes under SPC (TQM8) as an indicator to represent the expansion of using SPC. Panizzolo (1998) emphasized the attention that has been devoted to the relationships between product development and manufacturing activities. Sà ¶derquist and Motwani (1999) claimed that design for manufacturing through integrating product and process engineering is one of the core features of quality management within the lean production framework. Thus, the percentage of parts designed by cross-functional teams (TQM9) can be used as a measure for this practice. In addition, Sà ¡nchez and Pà ©rez (2001) mentioned the use of common parts (TQM10) to manufacture different products as a technique used to reduce inventory and lead times as well. Moreover, participation of suppliers in the design stage (TQM11) facilitates manufacturing of components they have designed. Standardization is an essential principle of lean manufacturing that involves establishing the sequence of tasks to be done by each worker and how those tasks are done (Olivella et al, 2008), measuring and comparing the cycle time against the required takt time (Motwani, 2003) and specifying procedures, tools and materials (Bonavia and Marin, 2006). The percentage of procedures which are written recorded (TQM12) is the measure used by Sà ¡nchez and Pà ©rez (2001) and Bonavia and Marin (2006) to quantify the extent to which the company standardize its operations. Several researches emphasized the significant role that suppliers can play when involved in quality improvement programs (Panizzolo, 1998, Shah and Ward, 2007, Papadopoulou and ÃÆ'-zbayrak, 2005 and Motwani, 2003). In order to enhance suppliers involvement, Sà ¡nchez and Pà ©rez (2001) stressed the importance of information exchange with suppliers through conducting visits by engineers and technicians from both sides and interchanging documents. This will help to reduce inefficiencies and eliminate activities that are not value added (Sà ¡nchez and Pà ©rez, 2001). This practice is measured by two indicators; the frequency of visits between companys and suppliers technicians (TQM13) and the number of suggestions made to suppliers (TQM14) (Sà ¡nchez and Pà ©rez, 2001). With the focus on customers and their needs, Motwani (2001) declared that customer service programs should include quick responsiveness to complaints and maintaining a corporate goal to reduce the quantity of complaints (TQM15). Furthermore, Panizzolo (1998) affirmed that customer-driven enterprises dedicated much attention to organize customer participation in design, manufacturing and delivery activities. Thus, Bhasin and Burcher (2006) considered the percentage of projects in which the customer was involved (TQM16) as a signal of the systematically and continuously focus on the customer. In conclusion, table 3.1 summarizes the indicators developed to assess changes towards implementing the previously discussed TQM practices. Measurement of JIT basic practices Several authors (Sà ¡nchez and Pà ©rez, 2001, Karlsson and Ã…hlstrà ¶m, 1996, Lee-Mortimer, 2006 and Salaheldin, 2005) have proposed the value of WIP (JIT1) and the lead time to customer order (JIT2) as common indicators of JIT implementation. Moreover, Motwani (2003) and Bhasin (2008) affirmed that total product cycle time (total time that material spends in the production system) (JIT3) is the best measure for tracking lean progress. Reducing set-up times simultaneously with reducing lot sizes is a technique used to reduce inventories and also it contributes to the reduction of lead times (Sà ¡nchez and Pà ©rez, 2001) and increasing flexibility (Karlsson and Ã…hlstrà ¶m, 1996). The progress in this practice can be directly measured by two indicators; set-up times (JIT4) and production and delivery lot sizes (JIT5). Firms use pull production systems to facilitate JIT production with the aim to produce the kind of units needed, at the time needed, and in the quantities needed (Shah and Ward, 2007). Bonavia and Marin (2006), Cua et al. (2001), McKone et al. (1999) and Shah and Ward (2007) highlighted the use of kanban squares, containers or signals as a means to pull material from an upstream station and manage product flow. Karlsson and Ã…hlstrà ¶m (1996) argued that as the work with implementing pull system proceeded, the number of manufacturing stages producing against customer orders should extend. Accordingly, they considered the percentage of stages in the material flow that uses pull (JIT6) as a determinant of the change towards this practice. Cua et al. (2001) and McKone et al. (1999) emphasized the importance of equipment layout to facilitate low inventories (JIT1) and fast throughput (i.e. shorten lead time (JIT3)). Grouping machines together in a cell-based layout (Cellular manufacturing) is one technique that is developed to facilitate line balancing with the ultimate goal of creating single piece flow (Lee-Mortimer, 2006 and Motwani, 2003). Implementing cellular manufacturing technique helps to eliminate the frequency (JIT7) and physical distances (JIT8) of parts transportation (Karlsson and Ã…hlstrà ¶m, 1996) and to reduce the investments (JIT9) in handling systems (Sà ¡nchez and Pà ©rez, 2001). Panizzolo (1998) considered production leveling as a practice, in addition to small lots and pull control that is adopted to synchronize production and market demand. Thus, this practice contributes in achieving reductions in the value of WIP (JIT1) and the lead times to customer order (JIT2). Moreover, the synchronization between production output and market demand helps company to minimize finished goods inventory (JIT10). Suppliers are required to deliver the right quantity, at the right time, and at the right quality (Shah and Ward, 2007) in order to facilitate JIT production. Many researches agreed on the importance of reducing the number of key suppliers (JIT11) for the main components and engaging with them in long term contracts (JIT12) (Sà ¡nchez and Pà ©rez, 2001, McKone et al., 1999, Shah and Ward, 2007, Doolen and Hacker, 2005, Bhasin and Burcher, 2006 and Papadopoulou and ÃÆ'-zbayrak, 2005). Furthermore, the case study of (Comm and Mathaisel, 2005) highlighted how maintaining good relationships with suppliers helped to keep minimum raw material inventories (JIT13). In general, McKone et al. (1999) highlighted the importance of on-time delivery (JIT14) to customers as an indicator of the JIT concept implementation. Likewise, Bhasin (2008) mentioned measuring on-time delivery as one of the customer / market indicators of lean implementation. In the same vein, Motwani (2001) recommended monitoring the amount of lateness in orders delivery as a tool in measuring the spread of delivery time. Furthermore, since the change towards JIT production and delivery is made gradually (Sà ¡nchez and Pà ©rez, 2001), the proportion of products transferred just-in-time between production stages (JIT15) and that delivered just-in-time by suppliers (JIT16) should be measured. Table 3.2 summarizes the indicators developed to assess changes towards implementing the previously discussed JIT practices. Measurement of TPM basic practices It is agreed upon in literature that overall equipment effectiveness OEE ( Adaptive Immune Response: Case Study Adaptive Immune Response: Case Study Adaptive Response Abstract Adaptive immunity is an important part of the immune system. It is the third line of defense in the human body, which includes highly specialized systemic cells and processes that eliminate or prevent pathogenic growth. Once external barriers have been compromised and inflammation (innate immunity) has been activated, the adaptive response is called into action (Huether McCance, 2012). It develops slower than the innate inflammatory response and is specific—unlike inflammation, which is non-specific—and has immunological memory that recognizes each pathogen by a signature antibody (Huether McCance, 2012). In addition, the activated B cells and T cells can develop to memory cells that respond rapidly and efficiently to a subsequent encounter with a pathogen. Adaptive immunity response primary obligation is destroying infectious agents that are resistant to inflammation and provides long-term protection against future exposure to the same agents (Huether McCance, 2012) . Adaptive Response The adaptive response consists of an antibody response and cell-medicated response, which are carried out by different lymphocytes cells, B cells and T cells respectively. B cells (B indicates bone marrow) are the major cells involved in the creation of antibodies that circulate in blood plasma and lymph, where they have capacity bind to almost any foreign antigen found in the environment (Huether McCance, 2012). Binding of antibody inactivates virus and microbial toxins by blocking their ability to bind to receptors on host cells. Antibodies, also known as immunoglobulin, are large Y shaped proteins, which are typically composed of two large heavy pair chains and two small light chains (Huether McCance, 2012). There are five types of immunoglobulin: IgA, IgD, IgE, IgG, and IgM, which are characterized by differences in structure and function, each has evolved to handle particular antigens (Huether McCance, 2012). The antibody responses are also called humoral immunity. Another ad aptive response is known as cell-medicated immunity responses that activate T cells to combat against a foreign antigen presented on the surface of a host cell. Also, T cells produce signal molecules that trigger macrophages, natural killers (NK), antigen specific cytotoxic T-lymphocytes, and release of various cytokines in responses to an antigen (Huether McCance, 2012). The purpose of this paper is to explain pathophysiology of disorders presented in the scenarios, including associated alterations, and adaptive responses to the alteration as well as construct a mind map for the selected disorder. Furthermore, consider the epidemiology, pathophysiology, risks factors, clinical presentation, and diagnosis of the disorder and any adaptive responses to alteration. Scenario 1: The first scenario the patient’s mother mentioned that Jennifer is usually healthy and has no significant medical history. However, physical examination revealed clinical manifestations, which include fever; tympanic membranes slightly redden on the periphery, throat erythematous with 4+ tonsils and diffuse exudate; anterior cervical nodes palpable and tender to touch. The child indicated throat hurts and painful to swallow. Vital signs reveal increased temperature, pulse and respiratory rate that suggested tonsillitis disorder. Pathophysiology Tonsillitis is an inflammatory condition of the tonsils due to bacteria, allergies or respiratory problems (Tonsillitis, 2014). When inflamed, tonsils become swollen and red with a grayish or yellowish coating on its surface. Tonsillitis usually begins with a sudden sore throat and painful swallowing. Tonsillitis causes tonsils and throat tissues to swell obstructing air from passing in and out of the respiratory system (Huether McCance, 2012). The tonsils infection is common in children under age six and teenagers but rare in adults. The adaptive response activates the different B cells and T cells lymphocytes to eliminate the alteration, so body can return back to hemostasis. Scenario 2: Pathophysiology Irritant contact dermatitis is a common nonimmunologically mediated inflammation arising from the release of proinflammatory cytokines from skin cells (principally keratinocytes), usually in responses to chemical stimuli such as cleansers, soap detergent, and various chemical agents (Hogan Elson, 2013). The main pathophysiological changes are skin barrier disruption, epidermal cellular changes and cytokine release. Irritant contact dermatitis is a major occupational disease; skin disorders comprise up to 40% of occupational illness (Hogan Elson, 2013). Patient work history is crucial in making diagnoses, and appearance of the skin. It may be treated with topical agents such as corticosteroid skin creams, emollients or moisturizers to prevent further irritation (Hogan Elson, 2013). Scenario 2: The patient presented with redness and irritation of his hands. The history revealed no allergies or significant medical history except for recurrent ear infections as a child. He denied any unknown exposure to irritants. Also, patient admits to working in maintenance and often working with abrasive solvent and chemical. Normally he wears gloves, but this particular time the patient did not wear gloves. He exposed his hands to some cleaning solutions. The patient’s detailed history and clinical manifestations led the student to a diagnosis of irritant contact dermatitis. Pathophysiology Stress is any situation that results in a reaction of the human body called the stress response (Huether McCance, 2012). The stress response is a set of adaptations that are mobilized throughout the body to correct state of allostatic imbalance. This involves a fairly stereotyped set neural an endocrine changes. A critical one is the secretion of catecholamines-epinephrine and norepinephrine from the nerve endings of the sympathetic nervous system projecting throughout the body (Huether McCance, 2012). Catecholamine induces vasoconstriction and increases in heart rate and blood pressure. It also increases the amount of nutrient and oxygen that is available to the muscle’s reaction during a stress response (Huether McCance, 2012). Another is secretion by the adrenal glands of a class of steroid hormones called glucocorticoids (GCs) ((Huether McCance, 2012). While there is an array of additional changes in levels of various hormones during stress (generally an increase in ci rculating levels of glucagon, prolactin, and beta-endorphin, decreases in insulin and reproductive hormones), secretion of GCs and the activation of the sympathetic nervous system constitute workhorses of the stress response (Huether McCance, 2012). Some common symptoms can include: increase heart rate, chest pain, poor appetite, depression, and insomnia. Usually, coping strategies are beneficial in helping individuals manage stress physical and psychological (Huether McCance, 2012). Adaptive responses help prepare the body for fight or flight by activating adaptive immunity response to correct imbalance. Scenario 3: The patient in this case study recently retired from her job as an administrative assistance at a local hospital. She does have a history of hypertensive, but controlled for years with medication. Patient reported having problem sleeping, occasionally rapid heart rate, and decrease appetite. She also mentioned her 87-year old mother moved in a few years ago after falling down a flight of stairs and broken her hip. Martha is taking care of her mother who requires enormous amount assistance with activities of daily living. She is worried about her own health at her age and sleep habits therefore clinical manifestations suggested stress disorder. Mind Map for Tonsillitis Disorder Epidemiology Irritant contact dermatitis is common in occupations that involve repeated hand washing or repeated exposure of the skin to water, food materials, and other irritants. High-risk occupations include maintenance, health care workers food preparation, and hairstylists (Hogan Elson, 2013). The prevalence of occupational hand dermatitis was found to be 55.6% in 2 intensive care units and was 69.7% in the most highly exposed workers. Irritant contact dermatitis is significantly more common in women than men. The high frequency of hand eczema in women in comparison with men is caused by environmental factors, not genetic factors. Pathophysiology Irritant Contact Dermatitis (ICD) is a common nonimmunologically mediated inflammation arising from the release of proinflammatory cytokines from skin cells (principally keratinocytes), usually in responses to chemical stimuli such as cleansers, soap detergent, and various chemical agents (Hogan Elson, 2013). The main pathophysiological changes are skin barrier disruption, epidermal cellular changes and cytokine release hones naà ¯ve T- lymphocytes to the skin. Patients with altered barrier function are more prone to ICD. Risk factors People who work in occupational hazard environment and handles irritant such as cleaners, nurses, construction workers, mechanics, and agricultural workers are at risk for developing irritant contact dermatitis (Mayo Clinic, 2012). Another risk factor is younger workers often less experienced than their older colleagues or may have a more careless attitude about safety measures causing them to develop the disorder (Mayo Clinic, 2012). Clinical presentation Clinically, irritant contact dermatitis presents with scaly erythematous plaques, cracking of the skin, inflammation, dryness, and fissuring. It commonly involves web spaces that extend to the dorsal and ventral surface of the hand and fingers (Mayo Clinic, 2012). Vesicles do not typically form. Pruritus can be mild; however, stinging, burning and pain are frequently reported symptoms. Diagnosis Irritant contact dermatitis does not need a specific test because ICD can be diagnosed through clinical examination and a careful history. A clinical examination must include a careful look at the distribution of the dermatitis (palmar, dorsal, face, abdomen, web spaces, and fingernails) as well as the extension of dermatitis to wrists or forearms (Mayo Clinic, 2012). The history should include a questionnaire that addresses the individual name and address of the employer; the worker’s job’s title and a description of functions. The worker should provide a list of all chemicals handled and supply information about them, such as found on the Material Safety Data Sheets (MSDS) in order to provide an appropriate diagnosis (Mayo Clinic, 2012). Adaptive responses to alteration Harding or accommodation has been defined as the adaptation of the skin from altered local expression of multiple cytokines and inflammatory mediators with repeated irritation from skin irritants. Accommodated skin has a relatively thicker layer of stratum granulosum versus normal skin. Accommodated skin may exhibit a slight sheen and glossy appearance with a mild scale. On manipulation, there may also be a slight loss of elasticity (Huether McCance, 2012). Conclusion When successful, an adaptive immune response terminates infection and provides long-lasting protective immunity against the pathogen that provoked response. Adaptive immunity is an evolving process within a person’s lifetime, in which each infection changes the make-up of that individual’s lymphocyte population. Adaptive immunity is an evolving process within a person’s lifetime, in which each infection changes the make-up of that individual’s lymphocyte population (Huether McCance, 2012). These changes are neither inherited nor passed on but, during the course of a lifetime, they determine a person’s fitness and their susceptibility to disease. Failures to develop a successful adaptive response can arise from inherited deficiencies in the immune system or from the pathogen’s ability to escape, avoid, or subvert the immune response. Such failures can lead to debilitating chronic infections or death (Huether McCance, 2012). References Golden, S. Shaw, T. (2013). Hand dermatitis: Review of clinical features and treatment options. Retrieved from www.cutis.com/fileadmin/content†¦/SCMS_vol32_No3_Golden.pdf Hogan, D., Elston, D. M. (2013). Irritant contact dermatitis. Medscape. Retrieved from emedicine.medscape.com/article/1049353-overview Huether, S. E., McCance, K. L. (2012). Understanding pathophysiology (Laureate custom ed.). St. Louis, MO: Mosby. Mayo Clinic. (2012). Tonsillitis. Retrieved from www.mayoclinic.org/diseases†¦/tonsillitis/†¦/con-20023538 Tonsillitis. (2014). In Encyclopedia Britannica. Retrieved from http://wwe.britannica.com/Ebchecked/topic/599370/tonsillitis

Friday, October 25, 2019

Comparing Family in Breathing Lessons, Homesick Restaurant, and Acciden

Family Instability in Breathing Lessons, Homesick Restaurant, and Accidental Tourist  Ã‚  Ã‚  Ã‚           The perfect, suburban family has become a prominant theme and stereotype in American culture.   Families from the works of Anne Tyler represent the exact opposite of this cultural stereotype.   None of Tyler's novels contain families with faithful, domestic wives, breadwinning husbands, and 2.3 well-behaved, perfect children.   Tyler kills this misconcieved stereotype in Breathing Lessons, Dinner at the Homesick Restaurant, and The Accidental Tourist.   Anne Tyler grew up with her parents on a series of experimental communes, so she developed a different perception of family life.   She observes domestic life from the view of an outsider looking in.   Minor-- and sometimes major-- flaws characterize the average family in Tyler's novels because many of today's families are imperfect.   Because of her communal upbringing, she observes family life more honestly than do writers who romanticize family life. Tyler's novels show that the picture most people see when t hey think of the typical American family is shifting from the Cleavers to the Simpsons.      Ã‚  Ã‚   Anne Tyler was born in Minnesota in 1941, but much of her childhood was spent moving around.   Tyler never spent a minute of her childhood living in the type of suburban household so typical of the 1940's and 1950's. Because large, domestic Southern families surrounded her as she grew up, she was somewhat of an outsider in society.   Tyler's unorthodox upbringing caused her "...to view the normal world with a certain amount of distance and surprise, which can sometimes be helpful to a writer"(Crane 2).   Tyler realistically depicts family relationships without over-exaggerating them.  ... ...--- .The Accidental Tourist.   New York: Knopf, 1985.  Ã‚  Ã‚  Ã‚   -----.Dinner at the Homesick Restaurant.   New York: Fawcett Columbine, 1982. Yardley, Jonathan.   " Anne Tyler's Family Circles."   Washington Post, August 25, 1985, (pp. 311-313). Mathewson, Joseph.   " Taking the Anne Tyler Tour."   Horizon, Vol. 28, no. 7, September 1985, (p. 313). Demott, Benjamin.   " Funny, Wise and True."   New York Times Book Review, March 14, 1982, (p. 432). Updike, John.   " Bellow, Vonnegut, Tyler, Le Guin, Cheever."   Hugging the Shore:Essays and Criticism, New York: Knopf 1983, (pp. 434-435). "A Glance: Dinner at the Homesick Restaurant."   Available [Online], April 23,1999, http// www.Amazon.com. " A Glance: Breathing Lessons.   " Available [Online], April 23, 1999, http// www.Amazon.com." Crane, Gwen.   " Anne Tyler."   Scribner Writers CD, (pp. 1-19).

Thursday, October 24, 2019

Theories on Criminal Behavior

There are many theories that provide an explanation of criminal behavior. According to some theories, delinquent behavior is innate in an individual. Other theories say that crime is influenced by environmental, economic, and psychological aspects (University of North Texas, nd). Biological Theories According to the biological theories, criminals have a different physiological makeup from non-criminals. Their biological inferiority is what pushes them to resort to criminal activities.There had been multiple studies that attempts to find out if criminality is hereditary through analysis of family trees, identical and fraternal twins, statistics, and adopted children. However, these approaches have proved futile because they cannot distinguish hereditary from environmental influences (University of North Texas, nd). Contemporary researches, on the other hand, has discovered a wide array of biological factors that have direct or indirect connection with criminal or delinquent activities .Among them are lack of chemicals, minerals, and vitamins in the food they eat, sugar and carbohydrates-rich food, and hypoglycemia. Exposure to radiation, dysfunctions in the brain, and swallowing of food dyes and lead also play an important role in criminal behaviors. Likewise, criminal acts have something to do with hormonal abnormalities, particularly those that are connected with testosterone (the male sex hormone) and progesterone and estrogen (the sex hormones related to female). By injecting estrogen to male sex offenders would minimize their sexual drives(University of North Texas, nd).In addition, biological theorists likewise believe that the interplay of biological, environmental and social conditions can have an effect on criminal behavior. The genetic makeup of the criminal gives them a predisposition to act in a certain manner. The environmental and social conditions determines the actual behavior as well as the definition of that act(University of North Texas, nd). P sychological Theories The belief that criminal behavior is caused by low intelligence gained ground in the United States.In order to prove this view, a study was conducted in 1931 and reached a zero correlation between the intelligence of an individual and criminal behavior(University of North Texas, nd). According to Sigmund Freud’s psychoanalytic theory, criminal behaviors are associated with psychopaths or those who have internal problems that have been unresolved. Psychopaths are people who are rules by senseless guilt, subjective conscience, and no do not know how to distinguish right from wrong. In general, they find it hard to establish relationships with other people and do not know how to be emphatic(University of North Texas, nd).Sociological TheoriesAccording to sociologists, how people behave is determined by the social group as well as the social structure. The conditions of their society may cause them to commit crimes and delinquency(University of North Texas, nd).Sub-cultural Theory of DelinquencyIn the 1920s, the Chicago School, composed of sociologists, attempted to discover the connection between the crime rate of a community and its characteristics. According to this theory, social disorganization can take place in a neighborhood where the rate of delinquency is high.Social disorganization takes place when:1) there is absence of delinquency control;2) the criminal behavior is most of the time with the consent of parents as well as the community;3) the opportunity for delinquency presents itself; 4) there is minimal encouragement, training, or possibility for legal employment(University of North Texas, nd).Anomie TheoryThis theory was proposed by Robert Merton in 1938. Anomie explains the major difference between the cultural objectives and social structure of the United States. People experience strain as a result of their limited access to legal means of achieving wealth.In order to cope up with this inadequacy, people accumulate we alth through illegal methods as well as through conformity. Other forms of adaptation, according to the anomie theory, include ritualism, wherein the individual does not pursue the wealth actively, and rebellion, where the individual does not accept both the goal of the wealth as well as the legal means of obtaining it(University of North Texas, nd).Differential AssociationThis theory, introduced by Edwin Sutherland, is one of the major beliefs that explains the causes of criminal behavior.According to Sutherland, criminal behavior takes place because the delinquent individual has been exposed to criminal elements and isolated from anti-criminal patterns(University of North Texas, nd).Social Learning TheoryAccording to the principles of learning theory, the best way to approach criminality is to implement policies that would effectively punish criminals. Sadly, this is not being implemented in the United States. At present, the delinquent individual is usually not incarcerated and r eturned to the same community where they have been exposed to criminal behavior.Likewise, the method of punishment lacks consistency and is not immediately implemented. Alternative or prosocial behaviors is not rewarded with positive reinforcement(University of North Texas, nd).Social Control TheoryThe social control theory does not attempt to uncover the reasons why criminal behavior is committed but rather focuses on why people conform and accept these behaviors(University of North Texas, nd). Travis Hirschi, in his 1969 book Causes of Delinquency, provides a comprehensive presentation of contemporary social control theory.In his book, Hirschi concluded that delinquent behavior is likely unless the offender is exposed in a society that is characterized by attachment to other people, commitment to traditional means of action, involvement in usual activities, and concurrence to moral order and law(University of North Texas, nd). Moreover, Hirschi explained that the leading cause of delinquency is ineffective child rearing, which results to individuals with low self-control(University of North Texas, nd).Labeling TheoryThis theory places emphasis on the criminalization process itself as the reason for some crimes.The criminalization process refers to the definition of criminals and delinquent behavior. According to the labeling theory, the first time a person commits a delinquent act and gets punished by the criminal system, they are already viewed as a criminal and it eventually becomes a self-fulfilling prophecy(University of North Texas, nd).Conflict TheoryThis theory delves on the struggle between rich and poor, management and employees, majority and minority group. According to the conflict theory, society involves conflicts between rival interest groups and that the law and justice system functions in order to control subordinate groups.Crime results from the lack of power(University of North Texas, nd).Radical/Marxist TheoryAccording to this theory, capi talism demands competition of people in order to gain material wealth. Because of the uneven distribution of wealth, people have taken advantage of people who are less powerful than them as they accumulate wealth(University of North Texas, nd). According to the radical theory, criminal behavior is caused by what Marx calls class struggle (University of North Texas, nd).Real Life Cases of Criminal Behavior For a period of two years, FBI Special Agent Robert Hazelwood and Janet Warren from the University of Virginia’s Institute of Psychiatry and Law conducted interviews of 41 men who were convicted for the rape of 837 victims. Based on the interviews, 55-61% of the criminals committed premeditated rape during the first, middle, and final act. 15 – 22% of the criminals said that their acts were results of their impulse while 22 – 24% said that the opportunity to rape presented itself(Hazelwood & Warren, 1990).According to Janet Warren from the University of Virgini a, there are methods of sexual attacks on women. The first one is called the ‘con’ approach. In this method, the rapist openly talks to their victims and asks if they can do anything to help them. As soon as the victim is within their control, that is the time they perpetrate their evil plans. This was the case used by one of the interviewed rapists named John, who was responsible for raping 20 victims(Hazelwood & Warren, 1990). The second method used by rapist is the ‘blitz.Here the rapist physically assaults their victims by using chemicals or gases. Most of the times, however, they use their strength to overpower the woman. This was the case of 28 year-old Phil, who raped one of his victims in a vehicle(Hazelwood & Warren, 1990). Finally, the third method is the ‘surprise. ’ In this approach, the rapist pre-selects their would-be victim. The physical assault is perpetrated by the offender waiting for the woman. Weapons, such as guns or knives, as w ell as threats are involved in the surprise approach. 24-year old Sam chooses his victims by observing her patterns.He was able to rape 20 victims before he was caught(Hazelwood & Warren, 1990).ConclusionThere are many theories that explain the reasons why people resort to criminal behaviors. The causes of criminality may be psychological, social, or biological.ReferencesExplaining Crime. University of North Texas. Retrieved July 21 2008 from http://www. unt. edu/cjus/Course_Pages/CJUS_2100/2100chapter3. pptHazelwood, R. , & Warren, J(February 1990). The Criminal Behavior of the Serial Rapist. Holysmoke. Org. Retrieved July 21 2008 from http://www. holysmoke. org/fem/fem0126. htm

Wednesday, October 23, 2019

“How Should Posco-Ippc Increase Its Footprint in the Automobile Segment?

| Business Management IA| â€Å"How should POSCO-IPPC increase its footprint in the Automobile segment? | Candidate Name: Amrit Shah Session no. 002798011 School: Symbiosis International School Research Proposal: Executive Summary: 199 words Word Count: 1977| | Acknowledgements: I would like to acknowledge and thank: * Mrs. Vaishali Phatak for her support and assistance in helping me with this report * Mr. Bharat Indu Bhattacharya- Electric Steel Dept. Manager of POSCO-IPPC, Pvt. Limited, Pune – for his contribution to the report and his time for the interview. * Mr. Joseph Joe- Automobile Steel Dept. Manager of POSCO-IPPC, Pvt. Limited, Pune- for his contribution to the report and his time for the interview. * Mr. Jacy Kim- General Manager of POSCO-IPPC, Pvt. Limited, Pune- for allowing me to do this report on the company and for providing guidance and help throughout. Executive Summary POSCO-IPPC, a steel distributor for the Korean company POSCO have plans about establishing themselves firmly in the Indian Steel Industry given that they are facing consumer problems from their customers in the Automobile sector. As such this paper analyzes the question, â€Å"â€Å"How should POSCO-IPPC increase its footprint in the Automobile segment? † Primarily, a research question highlights the rationale, theoretical framework, action plan and methodology applied and possible constraints in answering the question. An Introduction enlightens us about the background and basic history related to the company itself and of relevance to the question. Findings and analysis is written on the basis of primary research inclusive of multiple interviews conducted with different managers and secondary research inclusive of mails concerning their expenses over the future prospects by the automobile sector manager that acted as a catalyst in evaluating using both financial (capacity utilization and decision tree) and non-financial methods(SWOT & PEST). The report mainly focuses on the problem of raw material which POSCO-IPPC is currently facing due to which they are not able to meet the increasing demand. Based on the research conducted, it is found that POSCO-IPPC has two options to overcome this problem. One that it could ask POSCO, Korea to supply them with greater raw material and the other that it could ask POSCO, Orissa, a manufacturing unit to supply them with raw material. These options have been evaluated keeping in mind the conditions to find out the most feasible option to give a strong conclusion. Possible solutions are discussed and the conclusion suggests that POSCO-IPPC in order to sustain itself in the Indian Steel Market needs to increase its output and using the financial and non-financial techniques discussed and the best viab1e option would be to increase its raw material supply from POSCO, Korea. Contents Acknowledgements†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦2 Executive Summary†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 3 Research Proposal†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Introduction†¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 8 Procedure/ Methodology†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 9 Main Results and Finding †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦ 10 Analysis/Evaluation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 12 Conclusions and Recommendations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 16 Bibliogr aphy†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 17 Appendix†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 18 Research Proposal Research Question How to increase POSCO-IPPC footprint in the Automobile segment? Rationale POSCO-IPPC, a distribution centre of Korea’s POSCO Steel Company, is a newbie in the Indian Steel market; they have a monopoly in the Electric steel market and they are undergoing problems in the Automobile sector so they should work on capturing more consumers in the Automobile sector so that they are able to stabilize themselves. The research question focuses on the ways POSCO-IPPC should apply to set its footprint in the automobile segment. Theoretical Framework My plan is to utilize both financial and non-financial techniques to evaluate the problems incurred by the management so that they are able to firmly establish themselves in the automobile sector. The report will analyse the problems faced, thus it will try to solve it using the financial techniques of Capacity Utilisation and Decision Tree and non-financial techniques of SWOT and PEST which will analyse the other problems, opportunities and threats. Key Areas of Syllabus Unit 4 – Operations management Decisions * Introducing Operations Management Improving operational efficiency: Capacity, Scale of production Unit 6 – Numerate techniques for business studies * Information for decision making Primary Research: * Interview with Electronic Steel manager Mr. Sharad Indu Bhattacharya regarding the company history, company status, market and other general aspects about the company’s working. * Interview with Automobile Steel manager Mr. Joseph Joe regarding the market stats in Automobile sector, drawbacks, problems and possible implications so as to understand their market in the Automobile sector. Secondary Research: * Some Information and the list of customers of POSCO-IPPC, Pune, India received through mail from Mr. Joseph. * Other background history of POSCO, Korea used and other facts and figures were taken from the internet. Possible Problems:| Solutions:| Managers were not able to understand the true purpose of the interview resulting in very compact answers. | Managers were asked questions in a very narrow perspective which narrowed down to minute details. | Responses from the managers were related to only their departments, unable to give a general view. Requested them to get information from other managers as well. Small interview with a employee and the production manager. | Limited access to detailed information on the customers and the company as the locations are very far and detail information is confidential. | Acknowledged in the conclusion. | Financial Data was limited to a great extent as it was a new company and Data was yet not published. | Estimates have b een taken and where estimates could not be taken, it has been described in words. | | | Action Plan: Date| Task | 18th August, 2008. | Talked on phone with Mr. Jacy Kim who agreed to let me do my project on the company. | 20th August, 2008. | Will take an Interview with Mr. Bharat Indu BhattacharyaWill take an interview of Mr. Joseph Joe Research Question formulated. | 22nd August, 2008. | Planning will be done as to the way this essay needs to go about. Introduction and Research Proposal will be written. | 30th August, 2008. | Data Collection should be done. | 5th September, 2009. | Main results and findings will be written down based on the information gathered from Mr. Bharat Indu Bhattacharya and Mr. Joseph Joe over the days. 13th September, 2009. | Analysis of the data will be done. | 14th September, 2009. | Techniques of Capacity Utilization and Decision Tree will be applied. Will make a SWOT and PEST analysis. Analysis to be completed. | 15th January, 2009. | Recommendations written. Appendices made and attached. | 16th January, 2009. | Executive summary, content page, Action plan| Introduction: POSCO-India Pune Processing Centre Co. Ltd. , established in August 2006 but started its commercial distribution in 2006, and is a highly recognized by all the major companies of India for its great quality of its steel. Although being a newcomer in the Indian Steel Market, it has set its footprint as a Quality and principle based company. POSCO-IPPC is a coil centre for the Korean Steel giant POSCO Steel Limited which is a global producer of crude steel and finished steel goods. POSCO-IPPC involved an investment of 15 million dollars. It is an independent company of its own as it is a joint venture of POSCO (holding 65% of shares. ) and LG (holding 35% of shares. ) POSCO-IPPC is a processing unit which is locally managed. It is a processor-cum-distributor of steel in the electronic and automobile segment. It only plays a small role of slitting and shearing of the raw material as a processor. Its output is 10,000 metric tons per month with an annual turnover of 320 Crores in the previous financial year. It employs 120 people as its working staff out of which 60 are employed as payroll workers and other 60 are in contract. With the import prices and duties of steel and being a newbie in the Indian Steel market, it is facing competition from other distributors like ESSAR, TATA STEEL, JINDAL and other Chinese and Russian companies. In the Automobile sector, there are many problems created due to its high price and lack of output compared to that in the electronic steel sector for it holds monopoly in the sector for many of its products. As the management is highly equipped in its factors of production, it is researching on ways to exploit the Automobile market in order to firmly establish itself in the country. Therefore this report focuses on- â€Å"How should POSCO-IPPC increase its footprint in the Automobile segment? † Procedure/Methodology The Initial research included a detailed interview about the company and its standings with Mr. Bhattacharya-Electronic Steel manager. Another interview was with the Automobile Steel manager- Mr. Joseph Joe about the Automobile sector inclusive of the discussion over the problem mentioned in the research question. Underlining the major aspects in the interview, the questions focused on POSCO-IPPC’s strength, standings in the market, internal and external factors involved for and against production (which created the PEST, SWOT analysis and information for the analysis), and financial status and estimations advising financial techniques to be applied ( Capacity utilization and Decision Tree. The secondary research resulted in analyzing of POSCO Steel’s information and accessing other reports, industry statistics, market information and data via numerous internet sites. This helped in the results and findings, in strengthening the information available and recommendations and conclusions. It should be noted however, that financial data collected is based upon both à ¢â‚¬Ëœactual’ and ‘estimates’, which need further validation. In addition, the validity of this report may be influenced by the apparent subjectivity of some financial data given confidentially issues. Main results and Findings POSCO-IPPC Private Limited is a subsidiary of POSCO, the world's  fourth largest steel producer and one of the most competitive steel companies (World Steel Dynamics 2006) whose products are shipped to over 60 countries around the globe. Aside from this unit, POSCO has also invested 12 billion USD in Orissa which is proposed to produce an output of 12 million ton per annum by 2010. Since 1990, more than Rs 19,000 crores (US$ 4470. 58 million) has been invested in the steel industry of India and there is an increasing trend in its production. See Figure 1) The auto component sector has also posted significant growth of 20 per cent in 2003-04, to achieve a sales turnover of Rs. 30,640 crore (US$ 6. 7 billion)(See Figure 2). Such opportunities in the automobile sector and the Indian economy can help POSCO-IPPC to establish itself firmly. In terms of current market position, POSCO-IPPC brands itself as a leading provider of electric steel in some of the areas in India for not many of the companies have explored the electric steel market. Being a newcomer, it plans to inhabit the automobile steel market, where it still hasn’t managed to set its foot firmly. The company is based upon certain policies and factors which many of the customers are unable to comply with. POSCO is a global player and it supplies and manufactures steel all over the world. It exports steel from South Korea at an international price which is comparatively high in Indian currency so this difference between the prices, leads to a high price charged by the company. Due to the high price, POSCO decided to put a special price (Rs 49000-cold rolled steel) to fit in the market but in exchange for lower supply of steel so this reduces the supply power of POSCO-IPPC. POSCO-IPPC is only a distribution centre and does not manufacture. It is a market-oriented firm and follows the concept of mass customization for it creates the output maintaining to different customers need. It slits and shears steel depending upon the customer’s want. Its main customers are Crompton, LG and Suzlon in the electrics sector and Tata and Bajaj in the automobile sector. It uses batch production to produce an output of 10,000 metric tons per year where 1. 5% of the raw-material is wasted in slitting and shearing. The demand for their steel is a lot higher than their output and their capacity is also higher (35,000 metric tons/year) but the lack of raw-material limits them, due to the special price-low supply factor. Instead of creating more output, their machines are doing job work for other competitors like JINDAL, ESSAR, etc. of 5000 metric tons monthly. Highlighting the difficulty suffered in the case of TATA MOTORS Pvt. Limited Total Requirement of TATA | 30,000 (Demand going up by 7-10% annually) | TATA’s demand from POSCO (for high quality steel)| 5000-7000| POSCO-IPPC’s Supply to TATA| 2000-2500 (Rest to be supplied to other customers. )| POSCO-IPPC’s Cold Rolled Steel Price at the market | Rs. 53-55000| TATA’s pay price to POSCO | Rs. 48000| | | | | (All figures are in metric tons/month) Analysis/Evaluation: The evaluation of different problems which cause hindrances in trade with other companies will be done with the help of certain financial and non-financial techniques. Financial Analysis: I. Capacity Utilization With the purpose of utilizing its capital to the fullest, POSCO-IPPC has two pathways in order to supply more in the steel market and set its foot strongly: a) acquiring more raw-materials from POSCO, Korea. b) Purchasing of raw-material from POSCO manufacturing unit at Orissa, India. Thus, we will analyze the present scenario of capacity utilization in compared with the two options mentioned above. Present Capacity Utilization scenario: The capital utilization is calculated in percentage and the formulae used for it is given below: OutputMaximum capacity? 00 Current Output: 10000 metric tons/ month. Maximum Capacity: 11250 metric tons/ month. Capacity Utilization = 1000011250? 100 = 88. 89% Option a): acquiring more raw-materials from POSCO, Korea: Estimated output: 11250 metric tons/ month Maximum capacity: 11250 metric tons/ month Capacity Utilization = 1125011250? 100 = 100% Option b): Purchasing of raw-material from POSCO manufacturing branch at Orissa in India: Estimated Output: 11250 metric tons/ month Maximum Capacity: 11250 metric tons/ month Capacity Utilization = 1125011250? 100 = 100% II. Decision Tree: Utilizing this approach for both the options and other decisions to be made by the company are evaluated and financially viable decisions are suggested. (Figure 1) (All money values are in Indian Rupees) Key: Decision square Chance node Calculations: (611. 105mn ? 0. 6) + (466. 07mn ? 0. 4) – 500mn = 53. 091mn INR (572. 88 ? 0. 3) + (491. 04 ? 0. 7) – 500mn = 15. 592mn INR Non-financial analysis: India has gone through a considerable change in the production and consumption of Steel in the past 10 years. Driven a booming economy and concomitant demand levels, consumption of steel has grown by 12. 5 per cent during the last three years it has been forecast that the apparent steel use point in India will increase by 11. 8 per cent in 2008. POSCO-IPPC has great opportunities to set their foot firmly in the Automobile sector. The POSCO steel plant is India’s single largest foreign investment project ever. For its part, the Indian government is eager to boost its steel production and attract more foreign investment through such a lucrative partnership. But it also may lead to limiting of foreign ownership and application of protectionism to prevent foreign investment from exceeding its levels. Technology level in POSCO-IPPC is of high standards and helps them with maintaining the quality. The machines brought in are imported but India is a developing county and it has certain problems of electricity which results in regular power-cuts causing hindrances in processing of steel. These load-shedding periods are often covered by the use of generators but these generators prove to be expensive. The steel being imported is affected by any change in the foreign exchange policies and any government/fiscal policies which may affect them. POSCO-IPPC being a new-comer may feel threatened by the presence of multi-national companies as it leads to greater competition and more exploitation of resources. Conclusions and Recommendations: Available management’s perception on the opportunities to establish themselves in the Steel Industry, it does appear that the management should research this further by the help of a market research and research on all of the customer needs. Analysing the written report on the basis of the data supplied, it appears that POSCO-IPPC’s only hindrance is its limitation of supply which if solved will solve many of their other problems. Using Capacity Utilisation and Decision tree, it was understood that if maximum capacity utilisation takes place, it will reduce the price; increase the output; increasing the output will lead to long term relationships with the customers; it will involve maximum utilisation of resources. Maximum capacity utilisation is only possible with the increase in output which can be only done by increase in the supply of steel. There had been two options discussed with the help of decision tree to look for the best and cheapest way to increase the supply by deciding upon the source. The analysis showed that purchasing from POSCO, Korea at the special price is more profitable (53. 091mn INR) but this is only possible if POSCO, Korea agrees to supply them at the special price. The second possible option was from purchasing steel from the other branch of POSCO at Orissa, India but this would prove less profitable (15. 592mn INR) as they would sell it at the selling price in order to save their profits. Other factors which tend to support POSCO-IPPC to set its foot in the Automobile sector include in the non-financial analysis: growing Indian economy and its Steel Industry; Government support; Great Quality Steel; modern technology used with strict disciplinary issues which makes them a good supplier. Recommendations: As such, my recommendations would be: * Undertake further research in terms of specific of customer requirements and problems, by performing a market research and research on the clients, as many of my findings are generic to the company’s knowledge. More accurately determine the precise nature of the costs and profits upon purchasing steel from the sources analyzed in the written report. * Embark upon extensive research as to search other ways to increase the output and also request POSCO, Korea to supply more at the special price. However, my analysis is limited; it does not cover all the aspects of this topic due to the restraints of the data supplied. The re search was not more extensive because the unit was far away and many meetings were not possible with the officials as this would interrupt in their work . With only two personnel interviewed, a wider perspective from other departments must also be obtained . The report is a reference material, the research can be more extensive and proper results can be achieved if access to more data was possible. The Report is still in progress; there are many issues which need to be solved which can be done with the help of the recommendations and more access. Bibliography Books: AS Level and A level Business Studies, Peter Simpson, Cambridge University Press, Cambridge, 2002, Websites: http://www. stratfor. com/analysis/india_poscos_steel_investment_challenge Steel, India Brand Equity Fund, http://www. bef. org/industry/steel. aspx India Steel Industry, Economy Watch, http://www. economywatch. com/india-steel-industry/ India Automobile Industry, Economy Watch, http://www. economywatch. com/business-and-economy/automobile-industry. html Corporate overview, POSCO-INDIA, http://posco-india. com/website/company/corporate-overview. htm APPENDIX: * Appen dix 1: Interview Transcript with Mr. Bharat Indu BhattaCharya * Appendix 1: Interview Transcript with Mr. Joseph Joe * Appendix 3: SWOT Analysis * Appendix 4: PEST Analysis * Appendix 5: Graphs * Appendix 6: Mail from Mr. Joseph Joe Appendix 1: Interview Transcript with Mr. Bharat Indu Bhatta Charya, Electric Steel Dept. Manager of POSCO-IPPC, Pvt. Limited, Pune 1) Good Afternoon, Could you please enlighten us about your company? * Good Afternoon, POSCO-IPPC stands for POSCO – India Pune Processing Unit. We are situated in the Talegaon Horticulture and Industrial Park in the dist. Of Pune. POSCO-IPPC is a coil centre as known by its parent company POSCO, which is a steel manufacturer giant in South Korea. It is the fourth largest producer of steel in the world and its distributors and manufacturing units are spread all over the world. From the start of this company to the present date, POSCO has led to massive advancements in the socio-economic status of South Korea. Coming back to POSCO’s investment in India, this is POSCO’s third investment, the other two being in Delhi and Orissa. Although POSCO is POSCO-IPPC’s main investor but it is an independent company which is locally managed. POSCO entering in a new market planned to establish this processing unit as a joint venture with LG International, where POSCO has 65% of shares and LG international owns the rest 35%. A total 15 million $ was invested in this project and it commercial processing started in 2006. 2) Can you emphasize more on your commercial processing and the working of this unit? * POSCO-IPPC processes the raw material which comes from POSCO, South Korea and distributes it to the customers. By processing, we mean the steel which comes from POSCO is slatted and sheared according to the customers need. We receive our steel in the form of coils, this is one reason for our being known as coil centre, then the coil is put in a machine which slits and shears it based on the dimensions set. This is then packed and sent to the respective customers. Our major customers are Crompton, LG, Suzlon, TATA and Bajaj. Our company produces output for electric steel as well as automobile steel. Although in the electric steel market, we hold a monopoly but in automobile, we are yet to expand our approach. These are the different types of steel we produce: Electric Steel * CRGNO- Cold Rolled Grain Oriented Steel * CRNO- Cold Rolled Non-Grained Steel Automobile Steel * HR ; PO- Hot Rolled and Pickled ; Oiled Steel Cold Rolled Steel * Stainless Steel White Goods * Electro-Galvanised Steel We have 120 people as staff, out of which 60 are on payroll and 60 are on contract. We follow the batch production for our processing unit. Our output is 10,000 metric tons / month with an annual turnover of 320 Crores as of last year. The raw material which comes to us, we add a value addition of 10% and sell it in the market. Our capacity to produce is 135,000 metric tons per annum where as its outp ut is low because of the lack of raw material so the capacity utilization is not up to the mark. So to involve our other machinery, we do job work for other companies of 5000 metric tons. 3) Can you please tell me about the managers of this company? * The managers at all the leading posts in the company are all from South Korea and they have been assigned by POSCO for a fixed period of years for a perfect start in the Indian Steel market. These are very experienced and are strict followers of discipline and quality. The work at POSCO-IPPC is efficient and advancing due to these managers. These are: * Gil Ho Bang – Managing Director Jongyeol Her – General Manager * Jung Chule Kim – General Manager * Woon Tae Jung – General Manager 4) Can you please tell us about the difficulties you are facing as a new company in the Indian Steel market? * We have a monopoly many in the market for Electric steel so we don’t have any problems in that sector but in the automobile sector, our competitors are well established and they have a far greater market share than POSCO-IPPC in the market so it creates pressure on us to create our product better than theirs to stay in the market. Our competitors: TATA STEEL, JINDAL, ESSAR, ISPAT and other Chinese and Russian companies. The two main difficulties which our company is facing are: * There has been a Star Rating which the Indian Government has started on the electric appliances. This effect of BAE Star Rating on the consumption of Electric Steel. * The Automobile sector in India is booming and has a lot of scope so POSCO-IPPC is trying to increase its footprint in the Automobile steel segment. There is a lot of demand for POSCO’s quality steel in the Automobile sector. 5) What is your SWOT? SWOT Strength * Any downfalls can be supported by POSCO-Distribution of quality steel – Inherits a quality name in the market from POSCO- Maintains strict disciplinary levels- Market leader in Electric Steel- Demand for its quality steel in the Automobile sector-Machinery is very advanced and the labour employed are few but skilled. Weaknesses * Not enough raw materials-Is not yet able to firm its stand in the Ste el market-The high price of their product due to the currency of Korea being more powerful – Language/ Cultural gap between India and Korea. Opportunities To increase its output and meet the high demand – Lack of high quality steel in the Automobile market gives them a big opportunity – India encouraging foreign investments- Increasing International trade between the countries- Rate of high economic and the country's economy gradually increasing- Special Reduced Price for the steel. Threats * Price of the raw material is highly dependent on the foreign exchange – POSCO holding a small share in the market is comparatively smaller than its multi-national counterparts -Low output due to lack of raw materials which may result in the loss of customers and a long term relationship. Appendix 2: Interview Transcript with Mr. Joseph Joe, Automobile Steel Dept. Manager of POSCO-IPPC, Pvt. Limited, Pune 1) Good Afternoon, What can you tell me about POSCO-IPPC in relevance to the Automobile market? Good Afternoon, POSCO-IPPC is a subsidiary of POSCO which as you know is a global producer and distributor of high quality steel. So as its parent company, POSCO-IPPC is also known for its high quality in the Indian Steel market. Automobile Company requires high quality steel for the chassis parts of the automobile, usually such parts are imported or substitute quality steel is bought so due to the lack of high quality steel producers in India, there is a lot of demand for the emerging POSCO-IPPC’s Steel. Though POSCO-IPPC has so many opportunities to set itself firmly in the market, it has many hindrances preventing it from doing so. 2) Can you pleases talk about the hindrances in little more detail? * There are many factors which sum up to conclude as a hindrance for POSCO-IPPC. The major ones are: * High cost of POSCO-IPPC’s Steel leads to a discouragement to the Indian customers. * POSCO-IPPC is looking for big customers so they are able to establish themselves by directly targeting at the higher end. * POSCO-IPPC is strict in its payment dates which are not favoured by all its customers for they need a margin to settle their accounts. * Although the main problem is the lack of raw material from POSCO. Due to the Special price-low supply condition between POSCO and POSCO-IPPC, there is low supply of raw materials. The demand is high for POSCO-IPPC’s steel but due to low output, it cannot adhere to every customer’s needs. POSCO-IPPC is capable to produce more output than its current production but due to the lack of raw material, it has to restrain itself and do job production. * POSCO-IPPC’s customers expect a same price and supply surety for three months which is not possible for POSCO-IPPC as it imports its raw material and it is subject to foreign exchange policies and other government policies which affects its price. The supply surety cannot be given due to lack of supply of raw material. * Also the defaulting of POSCO-IPPC’s price and bargaining to pay less price by the customers is discouraging POSCO-IPPC to expand itself so quickly as they are losing on their profits. * But overall, the lack of raw material is a big issue and solving that issue can solve many other problems related and in the course of time, brisk movements of trade will solve other problems too. 3) What can you tell about the special price-low supply condition? POSCO is a global player and it distributes its steel at a common international price (Rs 59000) to the world but as that rate is very high in terms of Indian currency, it would not settle down in the Indian market so in order to satisfy its Indian customers, it reduced the price and this is known as special price (Rs 45000). But as POSCO reduced the rate for POSCO-IPPC, it only did this for a condition and this condition was that POSCO-IPPC will receive only a limited supply from POSCO, Korea. ) Since TATA is one of your major customers in the automobile segment, can you please put light on the company’s relationship with TATA? * Sure, TATA Motors is a major customer of ours and there is a considerable amount of dealings with TATA. Tata itself produces steel but is partly dependent on POSCO-IPPC for high quality steel for the chassis of their automobiles. They need good quality for the outer body of the car for it to be firm and more attractive for which they take the support of POSCO-IPPC. Tata requires 30,000 metric tons/month and the demand is going up by 7-10% / year. Tata demands 5000-7000 metric tons/month from POSCO-IPPC but it can only supply 2000-2500 metric tons/month to TATA for out of its total output, it also needs to supply to other customers in order to remain in the market and also to stabilize it. The customers in the market are also asking for POSCO-IPPC’s steel like General Motors, Volkswagen and Fiat. For which TATA has supported POSCO-IPPC in sending a petition to POSCO to supply more steel. POSCO-IPPC distributes cold rolled steel in the open market at Rs 53-55000; the price keeps on fluctuating, whereas TATA gets it at Rs 48,000 (maximum. ) Thus, such factors are creating hindrances in transaction between TATA and POSCO-IPPC. 5) What is your PEST? * PEST POLITICAL & LEGAL * Central Government encourages the foreign investment- Change in the central Government may result in change in different trade policies – Indian Economy has shown relatively high levels of development, stability and potential growth. -Korea having a high level of percentage of investment in the Indian market Economical * Indian Economy is booming-Growth in its GDP and economic growth-Fluctuations in the exchange rates -Social ties and contacts between India and China is increasing-Expansion of a basic industry is always favoured- Company also gives importance to maximum exploitation of resources. Social * Opened a school for the children of its workers- Helped to develop the village Talegaon -Increase in the capacity of the unit, there will be more employment in the area-Adapt the Indian Culture-It believes in job satisfaction and motivation of its staff Technical * POSCO-IPPC uses advance technology to process its raw material-High dependency on technology-India is a developing country where there is a great problem with electricity so load shedding takes place-Alternative method to use generators during the time of load shedding proves expensive-Supply of diesel in such large quality proves to be a negative factor. Appendix 3: POSCO-IPPC SWOT Analysis Appendix 5 – Graphs Figure 1: Figure 2: Appendix 6: Mail from Joseph Joe This was a mail from Mr. Joseph Joe giving out some information. Investment: 500 mn INR | | | | | | | | | | | | | Probability | | Difference| | Source Company | | Cost Price/ metric ton | | Selling Price/ metric ton| | Quantity Purchased and sold| | Total Revenue| | | | | | | | | | | | | | 0. 6| | Special Price| POSCO, Korea| | Rs 45000| | Rs 55000| | 11111| | 611. 105 mn INR| 0. 4| | No Special Price| POSCO, Korea| | Rs 59000| | Rs 55000| | 8474| | 466. 07 mn INR| 0. 3| | Wihtout O. H. E| POSCO, Orissa| | Rs 48,000| | Rs 55000| | 10416| | 572. 88 mn INR| 0. | | With O. H. E| | POSCO, Orissa| | Rs 56000| | Rs 55000| | 8928| | 491. 04 mn INR| ——————————————– [ 2 ]. Refer to Appendix 1 – Interview with Mr. Bhattacharya [ 3 ]. Refer to Appendix 1 – Interview with Mr. Bhattacharya [ 4 ]. Refer to Appendix 1 – Interview with Mr. Bhattacharya [ 5 ]. POSCO-INDIA, â€Å"corporate overviewâ⠂¬ , http://posco-india. com/website/company/corporate-overview. htm. (20th September, 2008. ) [ 6 ]. Refer to Appendix 5- Graphs [ 7 ]. Economy Watch, â€Å"India Steel Industry,† http://www. conomywatch. com/india-steel-industry/, (20th September, 2008. ) [ 8 ]. Economy Watch, â€Å"India Automobile Industry,† http://www. economywatch. com/business-and-economy/automobile-industry. html, (23rd September, 2008. ) [ 9 ]. Refer to Appendix 5- Graphs [ 10 ]. Refer to Appendix 2 – Interview with Mr. Joseph Joe [ 11 ]. Refer to Appendix 1 – Interview with Mr. Bharat Indu Bhattacharya [ 12 ]. Refer to Appendix 2 – Interview with Mr. Joseph Joe [ 13 ]. Refer to Appendix 1 – Interview with Mr. Bharat Indu Bhattacharya [ 14 ]. Refer to Appendix 6 – Mail received from Mr. Joseph Joe [ 15 ]. India Brand Equity Fund, â€Å"Steel,† http://www. ibef. org/industry/steel. aspx (3rd August, 2008. ) [ 16 ]. SWOT Analysis [ 17 ]. PEST Analysis [ 18 ]. http://www. stratfor. com/analysis/india_poscos_steel_investment_challenge [ 19 ]. PEST Analysis [ 20 ]. SWOT Analysis [ 21 ]. PEST Analysis [ 22 ]. SWOT Analysis [ 23 ]. PEST Analysis [ 24 ]. http://www. economywatch. com/business-and-economy/steel-industry. html [ 25 ]. http://www. economywatch. com/business-and-economy/automobile-industry. html