The 3 Elements of Project Management

There are three core components of Project Management. Well at least there are three "simple" components: 1. People 2. Processes 3. Technology This is a naive view, but useful one for the purposes of this post. There are many voices in the project management community. I'll take a risk and put these voices into the three categories above, for the current discussion. 1. People skills are basically the soft skills of managing projects. All those soft skills session at PMI meetings, books on managing the people. Getting humans to engage with each other in a cooperative process of managing the project, developing the products or services of the project and generally moving the project toward it's end state. 2. The processes are methods for managing a project. Ranging from formal to informal. Along with these processes are other processes of assessing the people who are performing the processes. PMBOK, Prince2, and the like. 3. Technology is the tools of project management.Scheduling, cost, risk, reporting, graphics. generally any software gadget used while managing the project. Each of these three points of view of project are vigorously discussed (debated). But most of these voices start and end their discussion with their pet approach in the absence of a critical set of concepts. Can these or any people, process, or technology approach answer the following? 1. Can we state clearly and concisely what "done" looks like? Can we state the intermediate versions of "done?" Can we state this in some units of measure meaningful to all the stakeholders? 2. Do we know what it will cost to get to "done" or any smaller version of "done" along the way? This cost is usually measured in money. But people and other resources are part of the answer as well. 3. Do we know the date of when we'll see "done" or any part of "done?" What the variance on this date? If we don't know the date of the final "done," how about a "date for the date?" 4. Do we know we will measure progress along the way? How will we have confidence that progress is actually being made? What are the unit of measure for this progress? 5. Can we see what is going to impede our progress toward "done?" Do we have any way to remove these impediments so we can get to "done?" No matter what approach is being "pitched," if these questions cannot be answered in some credible way, then the message is not about project management, it's probably about trying to sell you something you may or may not want.

Training Tools Certifications Books A philosophy, an idea, or some other point of view A membership in some organization A conference

Levels of Management
he term Levels of Management refers to a line of demarcation between various managerial positions in an organization. The number of levels in management increases when the size of the business and work force increases and vice versa. The level of management determines a chain of command, the amount of authority & status enjoyed by any managerial position. The levels of management can be classified in three broad categories: 1. Top level / Administrative level 2. Middle level / Executory 3. Low level / Supervisory / Operative / First-line managers

Managers at all these levels perform different functions. The role of managers at all the three levels is discussed below:

LEVELS OF MANAGEMENT 1. Top Level of Management

It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions. The role of the top management can be summarized as follows -

a. Top management lays down the objectives and broad policies of the enterprise. b. It issues necessary instructions for preparation of department budgets, procedures, schedules etc. c. It prepares strategic plans & policies for the enterprise. d. It appoints the executive for middle level i.e. departmental managers. e. It controls & coordinates the activities of all the departments. f. It is also responsible for maintaining a contact with the outside world. g. It provides guidance and direction. h. The top management is also responsible towards the shareholders for the performance of the enterprise. 2. Middle Level of Management

The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and junior middle level management. Their role can be emphasized as a. They execute the plans of the organization in accordance with the policies and directives of the top management. b. They make plans for the sub-units of the organization. c. They participate in employment & training of lower level management. d. They interpret and explain policies from top level management to lower level. e. They are responsible for coordinating the activities within the division or department. f. It also sends important reports and other important data to top level management. g. They evaluate performance of junior managers. h. They are also responsible for inspiring lower level managers towards better performance. 3. Lower Level of Management

Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees. In other words, they are concerned with direction and controlling function of management. Their activities include a. b. c. d. Assigning of jobs and tasks to various workers. They guide and instruct workers for day to day activities. They are responsible for the quality as well as quantity of production. They are also entrusted with the responsibility of maintaining good relation in the organization. e. They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and objectives to the workers. f. They help to solve the grievances of the workers. g. They supervise & guide the sub-ordinates. h. They are responsible for providing training to the workers.

i. j. k. l. m.

They arrange necessary materials, machines, tools etc for getting the things done. They prepare periodical reports about the performance of the workers. They ensure discipline in the enterprise. They motivate workers. They are the image builders of the enterprise because they are in direct contact with the workers.

HENRI FAYOLS 14 Principles of Management

1. DIVISION OF WORK: Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization. 2. AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility. 3. DISCIPLINE: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort. 4. UNITY OF COMMAND: Workers should receive orders from only one manager. 5. UNITY OF DIRECTION: The entire organization should be moving towards a common objective in a common direction. 6. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The interests of one person should not take priority over the interests of the organization as a whole. 7. REMUNERATION: Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a workers rate of pay. 8. CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working. 9. SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the

organization is to be successful. 10. ORDER: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible. 11. EQUITY: All employees should be treated as equally as possible. 12. STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a high priority of management. Recruitment and Selection Costs, as well as increased product-reject rates are usually associated with hiring new workers. 13. INITIATIVE: Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction. 14. ESPIRIT DE CORPS: Management should encourage harmony and general good feelings among employees. HRM We often hear the term Human Resource Management, Employee Relations and Personnel Management used in the popular press as well as by Industry experts. Whenever we hear these terms, we conjure images of efficient managers busily going about their work in glitzy offices. In this article, we look at the question what is HRM ? by giving a broad overview of the topic and introducing the readers to the practice of HRM in contemporary organizations. Though as with all popular perceptions, the above imagery has some validity, the fact remains that there is much more to the field of HRM and despite popular depictions of the same, the art and science of HRM is indeed complex. We have chosen the term art and science as HRM is both the art of managing people by recourse to creative and innovative approaches; it is a science as well because of the precision and rigorous application of theory that is required. As outlined above, the process of defining HRM leads us to two different definitions. The first definition of HRM is that it is the process of managing people in organizations in a structured and thorough manner. This covers the fields of staffing (hiring people), retention of people, pay and perks setting and management, performance management, change management and taking care of exits from the company to round off the activities. This is the traditional definition of HRM which leads some experts to define it as a modern version of the Personnel Management function that was used earlier. 15. The second definition of HRM encompasses the management of people in organizations from a macro perspective i.e. managing people in the form of a collective relationship between management and employees. This approach focuses on the objectives and outcomes of the HRM function. What this means is that the HR function in contemporary organizations is concerned with the notions of people enabling, people development and a focus on making the employment relationship fulfilling for both the management and employees.

16. These definitions emphasize the difference between Personnel Management as defined in the second paragraph and human resource management as described in the third paragraph. To put it in one sentence, personnel management is essentially workforce centered whereas human resource management is resource centered. The key difference is HRM in recent times is about fulfilling management objectives of providing and deploying people and a greater emphasis on planning, monitoring and control. 17. Whatever the definition we use the answer to the question as to what is HRM? is that it is all about people in organizations. No wonder that some MNCs (Multinationals) call the HR managers as People Managers, People Enablers and the practice as people management. In the 21st century organizations, the HR manager or the people manager is no longer seen as someone who takes care of the activities described in the traditional way. In fact, most organizations have different departments dealing with Staffing, Payroll, and Retention etc. Instead, the HR manager is responsible for managing employee expectations vis--vis the management objectives and reconciling both to ensure employee fulfillment and realization of management objectives. 18. In conclusion, this article has briefly touched upon the topic of HRM and served as an introduction to HRM. We shall touch upon the other topics that this field covers in other articles.

Importance of HRM for Organizational Success

We have discussed the basic concept of HRM and the ways in which it helps the organization meet its goals. In this article, we discuss the reasons for organizations to have a HRM strategy as well as the business drivers that make the strategy imperative for organizational success. It is a fact that to thrive in the chaotic and turbulent business environment, firms need to constantly innovate and be ahead of the curve in terms of business practices and strategies. It is from this motivation to be at the top of the pack that HRM becomes a valuable tool for management to ensure success.
The Evolving Business Paradigm

One of the factors behind organizations giving a lot of attention to their people is the nature of the firms in the current business environment. Given the fact that there has been a steady movement towards an economy based on services, it becomes important for firms engaged in the service sector to keep their employees motivated and productive. Even in the manufacturing and the traditional sectors, the need to remain competitive has meant that firms in these sectors deploy strategies that make effective use of their resources. This changed business landscape has come about as a result of a paradigm shift in the way businesses and firms view their employees as more than just resources and instead adopt a people first approach.

Strategic Management and HRM

As discussed in the articles on modern day HRM practices, there is a need to align organizational goals with that of the HR strategy to ensure that there is alignment of the people policies with that of the management objectives. This means that the HR department can no longer be viewed as an appendage of the firm but instead is a vital organ in ensuring organizational success. The aims of strategic management are to provide the organization with a sense of direction and a feeling of purpose. The days when the HR manager was concerned with administrative duties is over and the current HRM practices in many industries are taken as seriously as say, the marketing and production functions.
Importance of HRM for Organizational Success

The practice of HRM must be viewed through the prism of overall strategic goals for the organization instead of a standalone tint that takes a unit based or a micro approach. The idea here is to adopt a holistic perspective towards HRM that ensures that there are no piecemeal strategies and the HRM policy enmeshes itself fully with those of the organizational goals. For instance, if the training needs of the employees are simply met with perfunctory trainings on omnibus topics, the firm stands to lose not only from the time that the employees spend in training but also a loss of direction. Hence, the organization that takes its HRM policies seriously will ensure that training is based on focused and topical methods. In conclusion, the practice of HRM needs to be integrated with the overall strategy to ensure effective use of people and provide better returns to the organizations in terms of ROI (Return on Investment) for every rupee or dollar spent on them. Unless the HRM practice is designed in this way, the firms stand to lose from not utilizing people fully. And this does not bode well for the success of the organization.

Financial Management - Meaning, Objectives and Functions

Meaning of Financial Management

Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.
Scope/Elements 1. Investment decisions includes investment in fixed assets (called as capital budgeting). Investment in current assets are also a part of investment decisions called as working capital decisions. 2. Financial decisions - They relate to the raising of finance from various resources which will depend upon decision on type of source, period of financing, cost of financing and the returns thereby. 3. Dividend decision - The finance manager has to take decision with regards to the net profit distribution. Net profits are generally divided into two:

a. Dividend for shareholders- Dividend and the rate of it has to be decided. b. Retained profits- Amount of retained profits has to be finalized which will depend upon expansion and diversification plans of the enterprise. Objectives of Financial Management The financial management is generally concerned with procurement, allocation and control of financial resources of a concern. The objectives can be1. To ensure regular and adequate supply of funds to the concern. 2. To ensure adequate returns to the shareholders which will depend upon the earning capacity, market price of the share, expectations of the shareholders. 3. To ensure optimum funds utilization. Once the funds are procured, they should be utilized in maximum possible way at least cost. 4. To ensure safety on investment, i.e, funds should be invested in safe ventures so that adequate rate of return can be achieved. 5. To plan a sound capital structure-There should be sound and fair composition of capital so that a balance is maintained between debt and equity capital. Functions of Financial Management 1. Estimation of capital requirements: A finance manager has to make estimation with regards to capital requirements of the company. This will depend upon expected costs and profits and future programmes and policies of a concern. Estimations have to be made in an adequate manner which increases earning capacity of enterprise. 2. Determination of capital composition: Once the estimation have been made, the capital structure have to be decided. This involves short- term and long- term debt equity analysis. This

will depend upon the proportion of equity capital a company is possessing and additional funds which have to be raised from outside parties. 3. Choice of sources of funds: For additional funds to be procured, a company has many choices likea. Issue of shares and debentures b. Loans to be taken from banks and financial institutions c. Public deposits to be drawn like in form of bonds. Choice of factor will depend on relative merits and demerits of each source and period of financing. 4. Investment of funds: The finance manager has to decide to allocate funds into profitable ventures so that there is safety on investment and regular returns is possible. 5. Disposal of surplus: The net profits decision have to be made by the finance manager. This can be done in two ways: a. Dividend declaration - It includes identifying the rate of dividends and other benefits like bonus. b. Retained profits - The volume has to be decided which will depend upon expansional, innovational, diversification plans of the company. 6. Management of cash: Finance manager has to make decisions with regards to cash management. Cash is required for many purposes like payment of wages and salaries, payment of electricity and water bills, payment to creditors, meeting current liabilities, maintainance of enough stock, purchase of raw materials, etc. 7. Financial controls: The finance manager has not only to plan, procure and utilize the funds but he also has to exercise control over finances. This can be done through many techniques like ratio analysis, financial forecasting, cost and profit control, etc.

Role of a Financial Manager

Financial activities of a firm is one of the most important and complex activities of a firm. Therefore in order to take care of these activities a financial manager performs all the requisite financial activities. A financial manger is a person who takes care of all the important financial functions of an organization. The person in charge should maintain a far sightedness in order to ensure that the funds are utilized in the most efficient manner. His actions directly affect the Profitability, growth and goodwill of the firm. Following are the main functions of a Financial Manager:
1. Raising of Funds

In order to meet the obligation of the business it is important to have enough cash and liquidity. A firm can raise funds by the way of equity and debt. It is the responsibility of a financial manager to decide the ratio between debt and equity. It is important to maintain a good balance between equity and debt.

2. Allocation of Funds

Once the funds are raised through different channels the next important function is to allocate the funds. The funds should be allocated in such a manner that they are optimally used. In order to allocate funds in the best possible manner the following point must be considered

The size of the firm and its growth capability Status of assets whether they are long term or short tem Mode by which the funds are raised.

These financial decisions directly and indirectly influence other managerial activities. Hence formation of a good asset mix and proper allocation of funds is one of the most important activity
3. Profit Planning

Profit earning is one of the prime functions of any business organization. Profit earning is important for survival and sustenance of any organization. Profit planning refers to proper usage of the profit generated by the firm. Profit arises due to many factors such as pricing, industry competition, state of the economy, mechanism of demand and supply, cost and output. A healthy mix of variable and fixed factors of production can lead to an increase in the profitability of the firm. Fixed costs are incurred by the use of fixed factors of production such as land and machinery. In order to maintain a tandem it is important to continuously value the depreciation cost of fixed cost of production. An opportunity cost must be calculated in order to replace those factors of production which has gone thrown wear and tear. If this is not noted then these fixed cost can cause huge fluctuations in profit.
4. Understanding Capital Markets

Shares of a company are traded on stock exchange and there is a continuous sale and purchase of securities. Hence a clear understanding of capital market is an important function of a financial manager. When securities are traded on stock market there involves a huge amount of risk involved. Therefore a financial manger understands and calculates the risk involved in this trading of shares and debentures. Its on the discretion of a financial manager as to how distribute the profits. Many investors do not like the firm to distribute the profits amongst share holders as dividend instead invest in the business itself to enhance growth. The practices of a financial manager directly impact the operation in capital market.

Brief History of the Production and operations Management function

by V S Rama Rao on January 24, 2009

At the turn of the 20th century, the economic structure in most of the developed countries of today was fast changing from a feudalistic economy to that of an industrial or capitalistic economy. The nature of the industrial workers was changing and methods of exercising control over the workers, to get the desired output, had also to be changed. This changed economic climate produced the new techniques and concepts. Individual Efficiency: Fredric W Taylor studied the simple output to time relationship for manual labor such as bricklaying. This formed the precursor of the present day time study. Around the same time, Frank Gilberth and his leaned wife Lillian Gilberth examined the motions of the limbs of the workers (such as the hands, legs, eyes etc) in performing the jobs and tried to standardize these motions into certain categories and utilize the classification to arrive at standards for time required to perform a given job. This was the precursor to the present day motion study. Although to this day Gilberths classification of movements is used extensively, there have been various modifications and newer classifications. Collective Efficiency: So far focus was on controlling the work output of the manual laborer or the machine operator. The primary objective of production management was that of efficiency efficiency of the individual operator. The aspects of collective efficiency came into being later, expressed through the efforts of scientists such as Gantt who shifted the attention to scheduling of the operations. Even now, we use the Gantt charts in operations scheduling. The considerations of efficiency in the use of materials followed later. It was almost 1930, before a basic inventory model was presented by F W Harris. Quality: After the progress of applications of scientific principles to the manufacturing aspects, thought progressed to control over the quality of the finished material itself. Till then, the focus was on the quantitative aspects; later on it shifted to the quality aspects. Quality which is an important customer service objective came to be recognized for scientific analysis. The analysis of productive system, therefore, now also included the effectiveness criterion in addition to efficiency. In 1931, Walter Shewart came up with theory regarding Control Charts for quality or what is known as process control. These charts suggested a simple graphical methodology to monitor the quality characteristics of the output and how to control it. In 1935, H F Dodge and HG Romig came up with application of statistical principles to the acceptance and/or rejection of the consignments supplied by the suppliers to exercise control over the quality. This field, which has developed over the years is now known as; acceptance sampling. Effectiveness as a Function of Internal Climate: In addition to effectiveness for the customer, the concept of effectiveness as a function of internal climate dawned on management scientists through the Hawthorne experiments which actually had the purpose of increasing the efficiency of the individual worker. These experiments showed that worker efficiency went up when the intensity of illumination was gradually

increased, and even when it was gradually decreased, the worker efficiency still kept rising. This puzzle could be explained only through the angle of human psychology; the very fact that somebody cared, mattered much to the workers who gave increased output. Till now, it was Taylors theory of elementalisation of task and thus the specialization in one task which found much use in Henry Fords Assembly Line. Advent of Operations Research Techniques: The birth of Operations Research (OR) during the World War II period saw a big boost in the application of scientific techniques in management. During this war, the Allied Force took the help of statisticians, scientists, engineers etc to analyze and answers questions such as: What is the optimum way of mining the harbors of the areas occupied by the Japanese? What should be the optimum size of the fleet of the supply ships, taking into account the costs of loss due to enemy attack and the costs of employing the defense fleet? Such studies about the military operations was termed as OR. After World War II, this field was further investigated and developed by academic institutions. Various techniques such as linear programming game theory, queuing theory and the like developed by people such as George Dantzig A Charnes and W.W Cooper have become indispensable tools for management decision making today

more at http://www.citeman.com/4795-brief-history-of-the-production-and-operations-managementfunction.html#ixzz1xJ24wd5G

Marketing is "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large."[1] For business to consumer marketing it is "the process by which companies create value for customers and build strong customer relationships, in order to capture value from customers in return". For business to business marketing it is creating value, solutions, and relationships either short term or long term with a company or brand. It generates the strategy that underlies sales techniques, business communication, and business developments.[2] It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves.[2] Marketing is used to identify the customer, satisfy the customer, and keep the customer. With the customer as the focus of its activities, marketing management is one of the major components of business management. Marketing evolved to meet the stasis in developing new markets caused by mature markets and overcapacities in the last 2-3 centuries.[citation needed] The adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable.[citation needed] The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions.[3] It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.[3]

The term developed from an original meaning which referred literally to going to a market to buy or sell goods or services. Seen from a systems point of view, sales process engineering marketing is "a set of processes that are interconnected and interdependent with other functions,[4] whose methods can be improved using a variety of relatively new approaches."

Operations management
Operations management is an area of management concerned with overseeing, designing, controlling the process of production and redesigning business operations in the production of goods and/or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed, and effective in terms of meeting customer requirements. It is concerned with managing the process that converts inputs (in the forms of materials, labor, and energy) into outputs (in the form of goods and/or services). The relationship of operations management to senior management in commercial contexts can be compared to the relationship of line officers to highest-level senior officers in military science. The highest-level officers shape the strategy and revise it over time, while the line officers make tactical decisions in support of carrying out the strategy. In business as in military affairs, the boundaries between levels are not always distinct; tactical information dynamically informs strategy, and individual people often move between roles over time. According to the U.S. Department of Education, operations management is the field concerned with managing and directing the physical and/or technical functions of a firm or organization, particularly those relating to development, production, and manufacturing. Operations management programs typically include instruction in principles of general management, manufacturing and production systems, plant management, equipment maintenance management, production control, industrial labor relations and skilled trades supervision, strategic manufacturing policy, systems analysis, productivity analysis and cost control, and materials planning.[1][2] Management, including operations management, is like engineering in that it blends art with applied science. People skills, creativity, rational analysis, and knowledge of technology are all required for success.

Production (economics)
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In economics, production is the act of creating output, a good or service which has value and contributes to the utility of individuals.[1] The act may or may not include factors of production other than labor. Any effort directed toward the realization of a desired product or service is a "productive" effort and the performance of such act is production. The relation between the amount of inputs used in production and the resulting amount of output is called the production function.

Five Differences Between Service and Manufacturing Organizations

There are five main differences between service and manufacturing organizations: the tangibility of their output; production on demand or for inventory; customer-specific production; laborintensive or automated operations; and the need for a physical production location. However, in practice, service and manufacturing organizations share many characteristics. Many manufacturers offer their own service operations and both require skilled people to create a profitable business.

Goods
The key difference between service firms and manufacturers is the tangibility of their output. The output of a service firm, such as consultancy, training or maintenance, for example, is intangible. Manufacturers produce physical goods that customers can see and touch.

Inventory
Service firms, unlike manufacturers, do not hold inventory; they create a service when a client requires it. Manufacturers produce goods for stock, with inventory levels aligned to forecasts of market demand. Some manufacturers maintain minimum stock levels, relying on the accuracy of demand forecasts and their production capacity to meet demand on a just-in-time basis. Inventory also represents a cost for a manufacturing organization.

Customers
Service firms do not produce a service unless a customer requires it, although they design and develop the scope and content of services in advance of any orders. Service firms generally produce a service tailored to customers' needs, such as 12 hours of consultancy, plus 14 hours of design and 10 hours of installation. Manufacturers can produce goods without a customer order or forecast of customer demand. However, producing goods that do not meet market needs is a poor strategy.

Labor
A service firm recruits people with specific knowledge and skills in the service disciplines that it offers. Service delivery is labor intensive and cannot be easily automated, although knowledge management systems enable a degree of knowledge capture and sharing. Manufacturers can automate many of their production processes to reduce their labor requirements, although some manufacturing organizations are labor intensive, particularly in countries where labor costs are low.

Location
Service firms do not require a physical production site. The people creating and delivering the service can be located anywhere. For example, global firms such as consultants Deloitte use

communication networks to access the most appropriate service skills and knowledge from offices around the world. Manufacturers must have a physical location for their production and stock holding operations. Production does not necessarily take place on the manufacturer's own site; it can take place at any point in the supply chain.

Service Operations vs. Manufacturing Operations

Service and manufacturing operations have differences, but also similarities. For example, both create mission statements and a vision for how the organization will be run and perceived by customers. Each provider or manufacturer wants to lead the market in its specific industry. However, manufacturing and service operations answer different questions and formulate different strategies when it comes to planning and managing the way in which an organization is run.

Characteristics
Manufacturing operations produce tangible goods, which are physical products that can be held and seen. Manufacturing can be broken down into two branches: process and discrete manufacturing. While process manufacturers produce goods that typically use a formula and ingredients, such as soda pop or pharmaceutical drugs, discrete manufacturers produce goods from parts, such as electronics, appliances and automobiles. On the other hand, service operations provide certain intangible services that may not be easily identifiable. Service operations can be classified into many industries, such as banking, hospitality, advertising and consultancy.

Customization vs. Standardization

In general, manufacturers have a standardized way of producing goods. Goods are produced en masse in a factory or warehouse-type environment. One finished product is generally the same as the next. Service operations, by contrast, have more opportunities to customize the services they provide. For example, beauticians and hairdressers must customize the styling and treatments to match the customer's hair, shape of face and other characteristics. Even in service operations where you receive a tangible product, the service you receive from workers may not always be the same.

Production Environment
Manufacturing and service operations both plan the environment in which work takes place, but they focus on different elements. Manufacturing operations, for instance, consider the manufacturing layout. For example, the manufacturing layout can be fixed, process-focused or product-focused, such as in an assembly line factory. These issues affect the manufacturer's workforce performance and total output. Service operations, by contrast, plan the environment according to how it affects customers. For example, service operations are concerned with how the atmosphere appears to customers. Dimensions of the service environment include the layout

of furnishings, arrangement of signs and tangible cues, such as colors and sounds designed to enhance the customer experience.

Operations Management
In a manufacturing environment, operations managers oversee the activities required to produce goods from raw materials. Issues managers in this environment face include managing the space to store raw materials, the flow of materials through the manufacturing process, how much product to produce and quality of output. In a service operation, operations managers schedule workers to handle customer demand. They must coach and train employees to provide optimal services to customers. Service operations that also sell physical goods also face inventory control issues, such as how much to stock and when to order.

Similar Issues
Service and manufacturing organizations face many similar issues that affect the end result of the operation. For example, both face issues of cost control. Manufacturing operations must find suppliers of raw materials at the lowest cost -- and highest quality -- possible. Likewise, service operations' indirect cost of providing services must be kept low so that the organization can provide competitive prices to customers and still turn a profit. Other issues both types of operations face include forecasting demand for products and services and staying competitive in the marketplace.

Manufacturing operations concern the operation of a facility, as opposed to maintenance,

supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations.

A service operation is an open transformation process of converting inputs (consumers) to desired outputs (satisfied consumers) through the appropriate application of resources (family, material, labor, information, and the consumer as well). More simply, services are economic activities that produce time, place, form, or psychological utility. A meal in a fast food restaurant saves time. A meal with a date in an elegant restaurant with superior service provides a psychological boost. Wal-Mart attracts millions of customers because they can find department store merchandise, groceries, gasoline, auto service, dry cleaning, movie rental, hair styling, eyeglasses and optical services, and nursery items all in one place Read more: Service Operations - strategy, organization, system, examples, model, hierarchy, business, system http://www.referenceforbusiness.com/management/Sc-Str/ServiceOperations.html#ixzz1xJ95EpIU

Cotton Industry Situationer, Crop Year 2004/05

After suffering from dwindling production over the past decade, the Philippine cotton industry is once again upbeat as prospects for positive business opportunities continue to manifest. CY 2004/05 brought new optimism for the industry, as a new cotton program, aptly titled "The Philippine Cotton Industry Road Map", was put into action. Highlighted in the Road Map is the ever-important role of the private-sector in paving the way for the growth, stability and progress of the industry. In fact, development theories have always emphasized the pivotal role of the private sector in building-up the national economy in a sustainable and efficient way. The road map adhered to this principle, with strategies that focus on: 1) industry restructuring - aimed at organizing key industry segments to resolve problems associated with asymmetric information and inefficiencies, 2) industry build-up - focused on developing a sizeable production base to increase the relevance and contribution of the industry to the national economy, and 3) industry promotion with the objective of moving the Philippine Cotton Industry towards the international front. Milestones Modest outputs have been attained in line with the Cotton Road Map. These achievements, however, are crucial in building up the foundation for the new program, and in reshaping the industry towards our vision of a private-led cotton industry. Initially, we have:

Organized the private sector in an effort to harmonize production, processing and marketing operations, to encourage private sector investments and promote the equitable distribution of gains among stakeholders. Specifically, four private cotton integrators were formed (1 in Luzon, 1 in Visayas and 2 in Mindanao) to carry out production operations and provide the necessary support services to cotton farmers, while the Primatex Fibre Corporation, an established international cotton merchant, acts as the national merchandizing entity. In line with the Philippine Governments streamlining program, we prepared the Cotton Development Administration (CODA) rationalization plan to make operations and government provision of services such as R&D, extension, policy support, and information support more efficient and effective. Established nucleus cotton production areas, which shall serve as our production base. Area clustering was introduced to enhance provision of support services. Worked-out an expanded production credit for cotton with the Quedan Rural Credit and Guarantee Corp. (QUEDANCOR), a government financing institution. This crop year, PhP 21 million (US$ 381,818) was released to the cotton program. Changed our extension approach adopting the Food and Agriculture Organization (FAO) scheme of utilizing participatory and experiential learning through the Farmer Field Schools (FFS). Specifically, training of Cotton Development Specialists (government technicians), as well as private technicians and farmer leaders is continuously being undertaken. Initiated a collaborative undertaking with the Transgenic Biocentury Corp. of China on the testing and possible commercialization of Bt cotton in the country.

Production Performance Despite the relatively small size of the domestic cotton industry, cotton is still considered as an important high-value crop in the Philippines providing income, employment, and export opportunities, as well as quality raw materials for our dollar-earning domestic textile industry. During CY 2004/2005, the cotton sector is estimated to have contributed PhP 115 million (US$ 2 M) to the national economy (58% increase from the previous year). Primary factor for this growth is the expansion of cotton areas reaching about 5,000 ha (153% increase from last season). In fact, over the last 9 years, this season posted the highest performance in terms of area coverage. Attractive prices, credit availability and strong private sector presence are the major factors identified to have caused the renewal of the interest of farmers to engage in cotton cultivation amidst competition from other dry-season and highly supported traditional agricultural commodities. About 4,000 farmers participated in the cotton program this year, 117% increase from the last seasons figures. Most cotton farmers are small land-holders with farm sizes ranging from 0.5 ha to 3.0 ha (Figure 1). Cotton is cultivated in the three major islands of the country, Luzon, Visayas and Mindanao. During the past 10 years however, production activity is concentrated in Mindanao where it has endured less competition from other crops. For CY 2004/05 about 88% of the cotton areas are found in the island, while Visayas and Luzon shared 8% and 4% of the total area, respectively. Among all these areas though, cotton is deemed most suitable in Luzon which explains the relatively high yields in the area. Apart from the very favorable agro-climatic conditions, only Luzon is irrigated, while Visayas and Mindanao are rainfed areas. Despite the increase in the area, productivity suffered a decline posting an average farm yield of 0.99 MT seedcotton per hectare (0.38 MT lint), 19% less than the previous year (Figure 2). Highest average yield was attained in Luzon with 1,130 kg per ha (430 kg lint), followed by Visayas at 860 kg per hectare (327 kg lint) and Mindanao at 850 kg per ha (323 kg lint). Nevertheless, some farmers in Luzon have attained very high productivity almost triple that of the national average. Some of the problems that adversely affected productivity are the inadequate rainfall, high pest pressure, delayed release of production loans, and inadequate technical knowledge of farmers. The latter two factors affected the application of production inputs and led farmers to deviate from technological recommendations resulting to poor plant stand and uncontrolled pests. Prices One of the main determinants of the growth of the sector this season is the favorable local market conditions. High world market prices during the 1st quarter of 2004 resonated in the domestic market as middlemen provided generous commitments to cotton producers during the start of the season. Specifically, seedcotton pegged a price of as high as PhP 23.00 per kg (US$ 0.42) in Luzon, and PhP 19.00 (US$ 0.33) in Visayas and Mindanao. Previously, prices were pegged at PhP 20.00 (US$ 0.36) in Luzon, PhP 17.00 (US$ 0.31) in Visayas, and only PhP 16.00 (US$ 0.29) in Mindanao. The variability of prices across islands is attributed mainly to the differences

in marketing cost, an important component of which is transportation. Since textile mills are situated in Manila, Luzon cotton growers enjoy proximity advantage allowing the produce to be transported cheaper than Visayas and Mindanao. As the year progressed however, world lint price nose-dived starting the second quarter of 2004. Domestic lint price is estimated to be equal to the landed cost of imported cotton since imported lint still holds the majority share of domestic supply. Further, since no price support is extended by the government, domestic prices are primarily market-determined. Specifically, average domestic price of lint was estimated at about PhP 69.00 per kg (US$ 1.25) a large decline from the previous years average of about PhP 94.00 per kg (US$ 1.74). Lint Consumption After a slump in 2003 (at only 33,400 MT), domestic lint consumption has slightly recovered by about 9%, reaching 36,200 MT (Figure 3). However, this value is still very modest compared to the annual lint consumption of the domestic mills from 1999-2002, averaging 67,000 MT per annum. The decline in consumption may be conceived as a reaction to the expected abolition of textile quotas in 2005, prompting local mills to adjust their production structure in anticipation of demand contraction for their products./p For the raw cotton producers, the impact of this decline in local lint demand is deemed very minimal. Local cotton remains to share only a minimal portion of total demand estimated to be about 2%. Trade Following the trend of lint consumption, lint imports also increased during the year reaching about 31,500 MT valued at PhP 3.7 billion (US$ 69 million). The United States remain to be the major source of cotton comprising 63% of total imports (Table 1). Historically, domestic production was solely intended for the domestic market. In 2004, however, about 100 MT of lint was exported to Indonesia (51%), United States (34%), United Kingdom (10%) and Sri Lanka (4%) which earned the country US$ 200,000 (PhP 10.4 million) (Philippine National Statistics Office, 2005). This signals the changing sentiment of the domestic cotton industry towards an outward-looking marketing strategy with the hope of obtaining gains from the international market. Contributory to this end is the prime quality of Philippine cotton which is considered to be of top grade (Table 2). Gossypium hirsutum and Gossypium barbadense are the varieties cultivated in the country. Another dollar-earner, industrial cotton seeds which can be used for extracting oil or as animal feeds, are exported to neighboring countries. In 2004, about 600 MT of seeds were exported to Korea (70%) and Japan (30%), valued at PhP 4.7 million or US$ 0.10 million. Government Support to the Industry

No subsidies and protection is extended by the government, which makes the domestic cotton industry highly liberalized and primarily influenced by market forces. The benefit of such open policy is increased competition, which in turn provides for a more efficient production structure and better quality of products. Government support to the industry is primarily confined to R&D as well as extension support, notwithstanding assistance in various semi-commercial activities. Specifically, CODA undertakes the following support services:

Production support. CODA produces quality basic cottonseeds (nucleus, breeder, and foundation seeds) of commercial pure line cotton varieties and provides technical support to private seed growers in the production of registered and certified seeds. Trichogramma production is also undertaken to promote the use of environment-friendly pest management of cotton in the country.

Market development. CODA initiates meetings and market-matching between farmers and legitimate cotton buyers to facilitate marketing agreements between the two parties.

Credit facilitation. Assistance is focused mainly on the conduct of Values Orientation Seminars (VOS) for prospective farmer creditors and processing of loan applications.

Post-harvest services. While privatization of the government ginnery facilities is underway, ginning and warehousing services are being administered by CODA at the moment, thru its facility in San Fabian, Pangasinan. The services are offered to farmers and other interested private business clients at competitive prices.

Extension support, education and training. Under this component, efforts focus on five important aspects, namely, industry promotion, trainings, field days, technical assistance, crop monitoring, and production/distribution of IEC materials.

Information support. CODA develops and packages information and industry data in appropriate formats for easy access and use of a multi-level audience. This includes a website, industry database and GIS maps.

Policy and Advocacy. CODA formulates policy recommendations and plans that aim to boost the industrys growth.

Research and Development. A dynamic, demand-driven and problem-oriented cotton R&D agenda is being implemented with emphasis on developing quality and pestresistant varieties, improving the pest management technology for cotton, generating cost-efficient cultural management techniques, as well as coming up with socio-economic analysis of the industry.

Cebu Pacific
Cebu Air, Inc., operating as Cebu Pacific Air, is based on the grounds of Ninoy Aquino International Airport (Manila Terminal 3), Pasay City, Metro Manila, the Philippines.[1] It offers scheduled flights to both domestic and international destinations. Cebu Pacific Air is currently the country's leading domestic carrier, serving the most domestic destinations with the largest number flights and routes, and equipped with the youngest fleet. Its main base is Ninoy Aquino International Airport, Manila, with other hubs at Mactan-Cebu International Airport, Zamboanga International Airport[2], Francisco Bangoy International Airport[3] and Diosdado Macapagal International Airport.[4] The airline is a subsidiary of JG Summit Holdings. Cebu Pacific is currently headed by Lance Gokongwei, presumptive heir of John Gokongwei, the chairman emeritus of JG Summit. The company has 1,182 employees (as of March 2007).[3] In October 2010, the airline completed an IPO of 30.4% of outstanding shares.[5] Cebu Pacific carried more than 10 million passengers in 2010.
The airline was established on August 26, 1988, and started operations on March 8, 1996. Republic Act No. 7151, which grants franchise to Cebu Air, Inc. was approved on August 30, 1991. Cebu Air, Inc. was subsequently acquired by JG Summit Holdings (owned by John Gokongwei). Domestic services commenced following market deregulation by the Philippine government. It temporarily ceased operations in February 1998 after being grounded by the government due to an accident, but resumed services later the next month following re-certification of its aircraft.[3] It initially started with 24 domestic flights daily among Metro Manila, Metro Cebu and Metro Davao. By the end of 2001, its operations had grown to about 80 daily flights to 18 domestic destinations.

Equitable PCI Bank

Equitable PCI Bank, Inc. (PSE: EPCI) was one of the largest banks in the Philippines, being the thirdlargest bank in terms of assets. With PCIBank the largest bank before it was overtaken by Metrobank in 1995. It is the result of the merger of Equitable Banking Corporation and Philippine Commercial International Bank, or PCIBank. It was known for a wide range of services from savings to insurance and, through its wholly owned subsidiary Equitable CardNetwork, was the largest Philippine credit card issuer. The bank merged with Banco de Oro Universal Bank in early 2007, and is now branded as "BDO" as its new identity as part of the new Banco de Oro Unibank, Inc

Equitable PCI Bank History

The shares of the Lopez and Gokongwei Families were sold to the SSS and GSIS which acquired 78% of PCI Bank shares that were bought by the Go-Led Equitable Banking Corporation and

they merged in 1999 and was approved by the Bangko Sentral and other agencies that had created the Third Largest Philippine Bank with Equitable as the survivor of the merger and the name Equitable PCI Bank was adopted. With Head offices at The former PCI Bank Towers I&II that were renamed to the Equitable PCI Bank Towers I&II and the Equitable Banking Corporation Binondo Center and at the Equitable Banking Corporation Tower also in Makati.. The Bank also played in a very important role in the impeachement trial of the former president Joseph Estrada of which the bank produced Fifteen Witnesses(Along with nine banks namely Citibank, Philippine Savings Bank, Bank of the Philippine Islands, Security Bank, Land Bank of the Philippines, Urban Bank, Export and Industry Bank, United Asia Bank and Keppel Bank) to prove that the 'Jose Velarde' account was owned the President Estrada(which also investment on the merger of the Equitable Banking Corporation and then the Lopez-Gokongwei led Philippine Commercial International Bank). On August 5, 2005, the SM Group of Companies and Banco de Oro Universal Bank announced that they have purchased a 24.76% stake of Equitable PCI from the Go family(Equitable Banking Corporation), the family that founded the bank, along with a 10% stake in Equitable CardNetwork. Subsequent acquisitions by Banco de Oro enabled it to gain a 34% share in the bank. On January 6, 2006, Banco de Oro Universal Bank submitted a merger offer to the bank - with Banco de Oro as the surviving entity. Under the proposed offer, Banco de Oro will swap 1.6 of its shares for every 1 share of Equitable-PCI(Merger occurred but BDO Shareholders were to swap 1.8 BDO shares for every EPCI Share) . As a second option, Banco de Oro also offered to base the swap ratio on the book values of both banks to be assessed by an independent accounting firm using International Accounting Standards. With the success of this merger, Banco de Oro became the second largest bank with assets of P613 billion, just next to current industry leader, Metropolitan Bank and Trust Company with assets of more than P641.5 billion. The merger demoted the Bank of the Philippine Islands down to third place with P582 billion in assets. BDO has since surpassed Metrobank in asset, loan and deposit sizes to become the largest lender in the Philippines.

Equitable Bank History

On June 17, 1950, Equitable Banking Corporation was founded by Go Kim Pah as the first commercial bank in the Philippines licensed by the newly formed Central Bank of the Philippines (now Bangko Sentral ng Pilipinas). Other commercial banks like Bank of the Philippine Islands were formed and licensed during the Spanish or American regimes. However, it was not until 1955 that Equitable opened its first branch in Divisoria. In 1958, Equitable established the only direct telex service between the Philippines and Japan at the time, with initial messages exchanged between Equitable and Chase Manhattan Bank of Tokyo. On August 15, 1963, Equitable established its first branch outside the Philippines in Hong Kong and only International Branch, the first time a Philippine bank opened a branch in the city. Two years later, on March 26, 1965, Equitable opened its first provincial branch in Cebu City. By 1972, Equitable emerged as the country's premier bank. In 1989, Equitable turned its credit card department into a wholly owned subsidiary, Equitable CardNetwork. With three other banks,

namely Far East Bank and Trust Company (since merged with the Bank of the Philippine Islands, Philippine National Bank, and United Coconut Planters Bank, it formed Megalink, then the Philippines' largest ATM network. On July 27, 1996, Equitable Savings Bank was established as Equitable's savings bank arm. Equitable listed on the Philippine Stock Exchange on April 3, 1997, and in 1999, In 1977, the bank received its foreign currency license from the BSP and in 1980, issued its first credit cards under the VISA (credit card)and Visa brand. In 1987, Equitable became a universal bank and was appointed the clearing house of the Makati Stock Exchange, now the Philippine Stock Exchange.
PCIBank History

PCIBank was established on July 8, 1938 as the Philippine Bank of Commerce by sugar farmers from the Visayas region then it was the first Filipino-owned private commercial bank in the country. Then in the 1960's Benpres Holding Corp(now Lopez Holdings Corporation) bought out the majority stake in the PBC and they renamed it to the Philippine Commercial and Industry Bank(PCIBank). Then in the 1980's the Gokongwei Group headed by taipan John Gokongwei entered the Joint Venture buying about 33% of PCIBank shares then he appointed Rafael Buenaventura to head PCIBank as President and CEO. Also in the 1980's proved hard for the Lopezes because all of their businesses were seized by Pres. Marcos. To this day The Romualdez-Lopez Dispute case still remains at court. Also in the 1980's when Gokongwei entered PCIBank he also owned Far East Bank and Trust Co and talks of a merger surfaced which would have created the largest bank in the Philippines then. PCIBank formed BancNet along with Security Bank, Chinabank, RCBC, Allied Bank (Merged with PNB), Metrobank, International Corporate Bank (now part of UnionBank), and Citytrust Savings Bank formed BancNet. BancNet was also the brainchild of one of PCIBank's senior officers Mr. Ramon Arceo Jr. the Senior Vice President(now works as UCPB's President). And due to pressures from President Erap estrada the Lopez and Gokongwei Families sold their shares to the SSS and GSIS and they were auctioned and the victors Equitable Banking Corp a well known crony of the Pres. Estrada had them merged with Equitable as survivor of the merger. PCIBank also had 3 companies listed at the Philippine Stock Exchange namely PCIBank itself(PSE:PCI), Bankard; Now an affiliate of RCBC(PSE:BKD)and PCI Leasing and Finance(PSE:PCIL) now named BDO Leasing and Finance(PSE:BLFI).