Effects Of The 2008 Financial Crisis - 1030 Words

The effects of the 2008 Financial crisis were felt globally, it being the worst financial crisis since the Great Depression of the 1930s. Suggested in the documentary Inside Job shown in class, there were many factors which led to the 2008 Financial crisis. To better understand how it happened, we have to look back to the Great Depression of the 1930s. The Great Depression was the deepest and longest worldwide economic downturn in the 20th century. For fear of another economic collapse, strict regulations were put in place upon the financial industry. This heavy regulation persisted up until the Reagan Era in the 1980s. Hoping to spur economic growth the financial institutions on Wall Street and politicians in Washington wanted to deregulate the financial industry, which had been steadily growing for little over 50 years since the depression. President Reagan ushered in his economic policies starting the unregulated era that eventually led to the 2008 financial crisis. In the early 2000s, investors were seeking good investments. Traditionally investors would purchase treasury bills from the Federal Reserve Bank, considered to be the safest investment. However, in the wake of the dot-com bust and September 11th, Allen Greenspan, the Chairman of the Federal Reserve, lowered interest rates on loans to 1% to keep the economy strong. For Investors, 1% is a very low return on their investments, so they sought out new ways to invest. For years prices in the US Housing Market hadShow MoreRelatedEffects Of The Financial Crisis Of 2007-20081763 Words   |  8 PagesFinancial crisis of 2007-2008 is widely considered to be the worst financial crisis since the Great Depression of 1930s. The origin of this big storm dated back to the high home prices of the United States. After America’s entire investment banking system was attacked, many industries such as auto industry also went bankrupt. Unfortunately, it spread quickly to the whole world, causing hug e damages to the global economy. Therefore, my study will focus on the effects of the financial crisis of 2007-2008Read MoreWhy India Recovered Quickly From The 2008 Global Crisis Essay1594 Words   |  7 PagesIndia recovered quickly from the 2008 global crisis? Vivek Shah MBA AF 629 December 12, 2016 Introduction It’s the most heard term about the global economy in the recent years and it’s the year we have been always hearing about its 2008. We all have been a part of it in some or the other way and all the major economies had been affected by the global turmoil which eventually lead to the worst situation after the Great depression of 1929. The sub-prime crisis in USA which lead to great recessionRead MoreThe 2008 Financial Crisis Essay1326 Words   |  6 Pagesintroduction The 2008 financial crisis led to a sharp increase in mortgage foreclosures primarily subprime leading to a collapse in several mortgage lenders. Recurrent foreclosures and the harms of subprime mortgages were caused by loose lending practices, housing bubble, low interest rates and extreme risk taking (Zandi, 2008). Additionally, expert analysis on the 2008 financial crisis assert that the cause was also due to erroneous monetary policy moves and poor housing policies. The federal governmentRead MoreBanking of Uk1564 Words   |  7 Pages1. The financial crisis of 2007/2008 and its impact on the UK and other economies Do you still feel vague about the causes and the effects of the financial crisis of 2007/8? Are you preparing for a job interview in either the private or public sector? The events of 2007/8 have shaped both the current UK commercial and business scene and are now having a massive effect on the public sector. Similar impacts are being felt across Europe and the wider world. Knowing a bit more about what happenedRead MoreFinancial Crisis Of A Single Country1671 Words   |  7 Pages Table of Contents Summary 2 Financial crisis 3 Impact of financial crisis 4 Effect of financial crisis on different on the economies of different countries 5 Mathematical problems 6 Conclusiom 8 References ..................................................................................................................................................9 Summary Financial crisis has long been a part of global economic recession throughout the history. Here, the purpose of this assignmentRead MoreFactors That Affects The Global Economy And Its Impact On The Nigeria And Egypt Economy1568 Words   |  7 Pageseconomy. In 2007, the financial crisis, which later extended to the global financial crisis began in the United States of America. The origin and elements of the 2007/2012 global financial crisis have been widely discussed in the literature throughout the period. The aim of this work is to, however, try to point out the reasons and also the macroeconomic effects of the financial crisis in both countries economy and the resulting policy responses. Nevertheless, the impact of this crisis on the real economyRead MoreFinancial Crisis : The Fiscal Crisis1355 Words   |  6 Pagessecond week of October in 2008 was the worst week for stock market during 75 years, Buckley (2011) state that the worst record was the Dow Jones Industrial Averages d ropped 22.1%, but it fell 44.3% then. In general, a financial crisis is not an accident; it may take several years and has complex and interlaced causes (Claessens and Kodres, 2014). The 2007-08 global financial crisis is a typical case due to long-term non-intervention policy and loose regulation for financial market from government.Read More2008 Financial Crisis: the Large Financial Institution Failed1059 Words   |  5 Pageseconomy experienced a deep recession in years of 2008 through 2009. A huge factor in this was the number of large financial institutions that failed. Also, the stock market declined significantly which can be contributed to the bailout plan that was passed by our government. Third, spreads on many different types of loans over comparable U.S. Treasury securities has expanded significantly (Chari, Christiano, amp; Kehoe, 2008). The financial crisis is the result of the collapse of the housing bubbleRead MoreModern Egyptian Economy1526 Words   |  6 Pagesta rgeting inflation, the world financial crisis of 2008 and the 25th of January revolution in 2011. With many incidents hitting the economy, accompanied by several monetary policies, the question that came to a rise is, had these policies been effective in inflation targeting and regulating of exchange rate? And what were the main effects of such policies? This paper will analyze the policies and their economic effect as well as the effects of the economic crisis of 2008 and the 25th of January revolutionRead MoreThe Downfall Of The Subprime Mortgage Market1716 Words   |  7 Pagesboom, the subprime mortgage market enhanced the revenues of lenders, investment bankers and investors alike. While some knew the trend would come to an end many did not. When the housing bubble burst and home prices declined the effect on those involved was enormous, financial institutions who originally had low debt to equity ratios, soon found themselves on the cusp of bankruptcy. Housing Bubble Due to the U.S. Governments relaxed lending stipulations and low interest rates, the demand for houses

Systems Essay Example for College Students - Free Essay Example

Sample details Pages: 12 Words: 3505 Downloads: 2 Date added: 2017/06/26 Category Business Essay Type Report Did you like this example? Executive Summary The companys profits are falling and there is a build-up of inventory within the production process. This report considers three management systems which could rectify the situation. Considering theory of constraints, just in time and programme evaluation and review technique, the report recommends that more information regarding the cause of the problems is undertaken, and a suitable programme of revaluation of the business processes is undertaken. Introduction The role of management accounting in the organisation has become so much more that the reporting of the score to managers (Hansen, Mouritsen 2006). In the wake of the decline of Western Manufacturing and the relevance crisis of management accounting to modern business as outlined by Kaplan and Johnson in ‘Relevance Lost, the traditional cost accounting approach has been largely replaced by alternative methodologies (Kee, Schmidt 2000). The role of the management accounting in the modern firm is not only to report the score, but to seek to influence the score by using techniques and theoretical approaches to improve the business processes. As such it is important for managers to understand the use and usefulness of a variety of alternatives to traditional accounting approaches, especially traditional cost accounting and look to introduce other techniques which may have practical advantages for the firm (Dugdale, Jones 1998). There is no one size fits all approach which w ill work in any case and the application of cost accounting can and will always provide key information about how the business is doing in terms of its goals. Indeed many of the newer techniques focus on particular applications within industry and each of them has something to offer the firm in terms of improving the business processes (Plenert 1993). This report considers three approaches in the context of practical application to a range of common problems, problems which may be responsible for the inventory build-up of the firm in question and its declining profits. The approaches are the Theory of Constraints (TOC) and the attendant logic of Throughput Accounting (TA), Just in Tim Inventory Management (JIT) and wider implications to ‘Lean manufacturing methodologies and the Program Evaluation and Review Technique framework (PERT). The report outlines the main features of these methodologies and the advantages and limitations of them with specific reference to their usefulness in a variety of practical situations. The report concludes that each of the methodologies has something to offer and that any management decision must be based on the goals and objectives of the company and its strategic direction. Don’t waste time! Our writers will create an original "Systems Essay Example for College Students" essay for you Create order Theory of Constraints and Throughput Accounting Developed by E.M. Goldratt as a response to the criticisms of traditional cost accounting, the TOC states that the traditional variable costs of Cost Accounting do not apply, or rather, they apply with less rigour in a modern management situation (Bragg 2007). In the past Labour was seen as a totally variable cost, workers would work to the managements discretion and short time and layoffs were dictated by the level of production need. Goldratt argued that this was no longer the case as changes to society and legislation had meant that the workforce was more of a fixed cost for the organisation (Wei, Liu et al. 2002). The TOC states that even though modern managers are still evaluated by labour use, such efficiencies can lead to decisions which harm the organisation rather than help optimise production. This criticism led Goldratt to develop the TOC as an alternative system, identifying ‘constraint as a decision relevant concept in the service or production process (Wat son, Blackstone et al. 2007). The central idea to TOC and TA is that each organisation has a specific goal (or a set of specific goals) which can be effected by decision making, better decision making leads to better completion of the goals (Linhares 2009). If one takes the normative assumption of a profit orientated organisation as the maximisation of the owners wealth, then the ‘goal unit will be the ‘throughput contribution (TC) which is similar to the ‘total contribution marginal costing (Hansen, Mouritsen 2006). The difference in TA is that ‘throughput contribution is defined in the TOC as Sales (S), less total variable cost (TVC) which is he cost of raw materials (not labour). This is placed in the context of two further conceptual mechanisms, Investment (I), which refers to money tied up in the system in terms of inventory and work in progress, as well as with machinery and buildings and the like, the second is Operating Expense (OE) which is the money spent by the system on generating goal units, but not the cost of raw materials, so items such as utilities and wages (Davies, Mabin et al. 2005). This delineation of the costs of production and services allows the processes to be viewed in terms of a number of optimization questions. Typically firms need to ask themselves how throughput (TC) can be increased, how Investment (I) can be reduced and how Operating Expense (OE) can be reduced. These questions in turn will affect the Net Profit, Return on Investment, Productivity and Investment. Therefore it can be argued that the maximisation of throughput contribution is key to the maximisation of all of the above key performance indicators. The firm can seek to maximise TC by optimising a number of aspects of the production processes. There are five common steps associated with this process; Identify the system constraints Exploit the system constraints Subordinate everything else to the decisions made Elevate the systems constraints Restart the process if a constraint has been broken The following example illustrates the process. Company A has two workers and produces two products (Workers, A,B, Products X Y). Product Y Requires ten minutes of Worker As time, and product X requires fifteen minutes. Potential demand for X is 100 units, for Y is 50 units. If the total time available to worker A is 2000 minutes per week Worker A is not a constraint as the total time to manufacture both products is equal to the total available time (15 minutes x 100, 10 minutes x 50 = 2000 minutes). Worker B also works on the two products but takes 15 minutes on both products (15 minutes x 100, 15 minutes x 50 = 2250), assuming that Worker B has the same maximum time available (2000 minutes) there is a constraint around Worker B. Thus the constraint has been identified. Step two seeks to exploit the constraint. Concentrating on Worker B as this is where the constraint occur, the exploitation of the constraint means the company (according to its goal of maximising wealth ) needs to make a decision based on how to allocate production. To do this the managers need to know what the Throughput Contribution is for each unit. Assume that TC for product X is  £75 per unit and for product Y it is  £120 per unit. The constraint here is time, measured in units of a minute, therefore the TC per unit of constraint is found by dividing the TC by the time taken with each worker, at the point of constraint this is as follows (X, 75/15 =  £5, Y, 120/15 =  £8.33), as there are only 2000 minutes available the TOC suggests that all 50 units of product Y should be produced with a total time taken of (50 x 15 = 750, TC =  £8.33 x 750 =  £6247.5) leaving 1250 minutes to produce product X (TC 1250 x  £5 =  £6250). Net profit will therefore be (6247.5 + 6250 =  £12497.5). In this example this is how the TOC makes all other considerations subordinate to this decision. TOC does have its problems, it makes many of the normative assumptions about the behaviour of costs that traditional cost accounting does, and largely ignores costs of changing the activities of many of the business processes to suit a particular set of circumstances (Rand 2000). Yet it is a powerful decision making tool and one which, if used properly can alter the success of a manufacturing process in terms of the goal of maximising the wealth of the company . Just In Time (JIT) JIT Inventory Management is one of a set of ‘Lean manufacturing methodologies which has grown out of the Japanese Approach to management accounting (Abdul-Nour, Lambert et al. 1998). In particular much of modern JIT management is based on the Kanban system of Inventory management which is a part of the Toyota Production System (TPS) which is famous the world over for its efficiency and speed to market with new products (Houghton, Portougal 1997). JIT as a part of a Lean system relies upon the pull of the market rather than the push of production targets and generally states that investment in inventory, both in terms of raw materials and work in progress, also finished goods, represents a waste to the company (White, Prybutok 2001). JIT requires the accurate organisation of the production process in terms of both processes and components of production and finds a minimum level of stock holding at every level of the process. The original Kanban system was based around a set of two cards which accompanied an individual component through the production process. At each point where a component was removed from stock to be used in a process of manufacturing one of the cards would be returned to the previous process to alert that process that another was required. This meant that without the aid of sophisticated computers the TPS managed to cut its value of stock in the factory to a fraction of what it had been, requiring less investment of working capital, lower overheads in terms of storage and warehousing, and less risk of over production of any components or of finished goods (Abdul-Nour, Lambert et al. 1998). JIT is a system which has largely been adopted in many of the larger production facilities which have adopted ‘Lean technology. These range from most car manufacturers to manufacturers of high technology. But there is growing evidence that it may be very useful in terms of the smaller manufacturer, and even the service industry, especially as the cost of raw materials is rising in the face of increased demand for core materials (Abdul-Nour, Lambert et al. 1998, Khan, Sarker 2002). JIT is difficult to implement and requires considerable investment in the production processes (Hansen, Mouritsen 2006, Houghton, Portougal 1997). It is impossible to implement JIT unless there has been a programme of business process redesign to allow such minimum stock levels to be held, and this can present a large investment cost in the firm which may or may not ultimately benefit from such an inventory management programme. JIT requires the firm to invest heavily in partnerships with suppliers as well and to evaluate the supply chain from almost every angle to prevent a total collapse of the production system (David, Eben-Chaime 2003). This is because there is little room for error in the process, if demand is poorly predicted and is higher than expected then the firm will run out of the raw materials of production and may lose custom (Kelle, Al-khateeb et al. 2003). If lower than predicted the firm will not have the capacity to store inventory (die to process redesign). Further if suppliers fail to deliver for any reason the process will come to an abrupt halt. JIT therefore requires a significant amount of managerial information from both the external market and the internal processes to get right and there have been many cases of difficult implementation, especially in smaller companies (Abdul-Nour, Lambert et al. 1998). Notwithstanding this there is a lot of evidence that with more and sophisticated modelling techniques from increasingly advanced technology, JIT systems are getting easier to implement (White, Prybutok 2001, Yasin, Small et al. 1997). Therefore as long as the systems are set up correctly there are major advantages in reducing the waste of inventory throughout the process of manufacturing. Because of its requirements, and making everything subordinate to the level o f inventory, it is not applicable for JIT systems to be used in conjunction with the Theory of Constraints, as managers are unable to subordinate all decisions within the production process to a ‘bottleneck. Therefore some would argue that JIT systems are less flexible, or certainly allow less flexibility that TOC does (Yasin, Small et al. 1997). Programme Evaluation and Review Technique (PERT) Put simply a PERT map is a model of complex processes which occur to facilitate an outcome (Castro, Gà ³mez et al. 2008). The PERT framework is very similar and often used in conjunction with a critical pathway diagram which shows the key processes involved in such an outcome (Mummolo 1997). PERT modelling makes a number of assumptions and has many conventions. In drafting a PERT chart the processes will be numbered in tens, to allow for further additions as the model grows. Further the model assumes that there is a linear relationship between the processes and therefore a number of key relationships (critical pathways) are determined (Cox 1995). These are often termed predecessor events and successor events. The PERT model deals with time in a number of ways giving an optimistic time and a pessimistic time for the completion of a process. It allows managers to view a project, task or process in a way which will help to maximise the efficiency of such a task in terms of a nu mber of variables (Shipley, de Korvin et al. 1997). Implementation of PERT requires a significant investment of time and expertise and so can have an impact on the costs of an activity, which must be weighed with the advantages or benefits such analysis brings to the process redesign (Azaron, Katagiri et al. 2006). Often PERT is a useful way to implement ‘Lean techniques of production as it allows the mapping of existing processes to look for ‘slack in the system. But its complexity can also be a disadvantage in terms of the time it takes to complete and the risk of errors in the model having unintended consequences to any new or redesigned process (Azaron, Katagiri et al. 2006). PERT is most useful at outlining the dependencies of a process and the identification of the critical pathways which affect the outcomes of a process. Further the methodology allows for the identification of the benefits of early, late and slack starts or a process (Cox 1995). It is a lso a way of organising a large and complex amount of information I a way which is relatively easy to understand by non-specialist managers, and as such allows the input of many areas of speciality in the redesign process, some of which may not be heard in terms of purely operations or accounting systems such as JIT and TOC. Yet PERT can have a number of significant disadvantages when used. First and foremost is the possibility of thousands of critical and interrelated aspect of a singly process (Mummolo 1997). The time taken to map out all of them can be considerable and even if they are all mapped out the subtle interrelationships are often difficult to place into such a restrictive framework. It is a given that in real life the process will not always work in the way in which it is modelled, and small changes across a few key aspects can vastly change the outcomes and behaviours of many of the assumptions behind PERT analysis. PERT is very useful in terms of initial inv estigation of a process or event, but it takes both art and science to appreciate how something will work in the real world situations of manufacturing or service industries. In this respect PERT should be seen only as an aid to understanding and not a ‘right answer (Castro, Gà ³mez et al. 2008). Conclusions The three managerial tools which have been outlined in this report are all powerful providers of decision relevant information. Further all three allow the management to view not only the outcomes at the current time, but also to make significant changes to the processes of production or provision of services which can dramatically improve performance. The case given points to both poor profits and returns on investment and poor inventory management as problems for the company, as such it is important before any decisions are made about the implementation of new management practices, as to why these are occurring. If the drop in profits are due to a slackening of demand, a change to JIT and the attendant redesign of the business along ‘Lean philosophy may be significantly advantageous, as it will allow tight control over inventory and allow the company to respond to the needs of the market more effectively. By removing overproduction and inventory as wastes to the busin ess, profits would be expected to recover, as long as the business is still a going concern (Hansen, Mouritsen 2006). If, however, the company still has similar levels of demand for its products then the company will need to investigate where the problems in the existing processes are. TOC would be one way of looking at this problem, so too would JIT. It is felt if the levels of demand are broadly similar it may well be worth the management of the company undertaking some analysis of the business processes with a view to coming to a decision about the suitability of either TOC or JIT, but it must be appreciated that each of these approaches carry some significant costs and risk if the analysis is not well thought out. PERT analysis will map out the internal process and identify the various problems with slack and time, but it does not look in much detail at costs. Other methodologies the company may like to consider as a part of any process redesign are the Activity Based a pproaches to costing, management and budgeting, these fit well with JIT management, but not so well with TOC. TOC has significant limitations because it subordinates everything to the constraint, and as new constraints appear the process has to be restarted from scratch. This criticism also gives it the flexibility that the other systems mentioned herein do not possess. This report recommends that managers identify the reason for the falling profits, and look to find out why inventory is building up (are these a symptom of slack demand, or of inefficiencies within the business). Based on these findings a decision as to what further systems are needed can be made. References Abdul-Nour, G., Lambert, S. and Drolet, J., 1998. Adaptation of jit phylosophy and kanban technique to a small-sized manufacturing firm; a project management approach. Computers Industrial Engineering, 35(3-4), pp. 419-422. Azaron, A., Katagiri, H., Sakawa, M., Kato, K. and Memarianai, A., 2006. A multi-objective resource allocation problem in PERT networks. European Journal of Operational Research, 172(3), pp. 838-854. Bragg, S.M., 2007. Throughput accounting: a guide to constraint management. Wiley. Castro, J., Gomez, D. and Tejada, J., 2008. A rule for slack allocation proportional to the duration in a PERT network. European Journal of Operational Research, 187(2), pp. 556-570. Cox, M., 1995. Simple normal approximation to the completion time distribution for a PERT network. International Journal of Project Management, 13(4), pp. 265-270. David, I. and Eben-Chaime, M., 2003. How far should JIT vendor–buyer relationships go? International Journal of Pro duction Economics, 81-82, pp. 361-368. Davies, J., Mabin, V.J. and Balderstone, S.J., 2005. The theory of constraints: a methodology apart?—a comparison with selected OR/MS methodologies. Omega, 33(6), pp. 506-524. Dugdale, D. and Jones, T.C., 1998. Throughout Accounting: Transforming Practices?, The British Accounting Review, 30(3), pp. 203-220. Hansen, A. and Mouritsen, J., 2006. Management Accounting and Operations Management: Understanding the Challenges from Integrated Manufacturing. In: Christopher S. Chapman, Anthony G. Hopwood and Michael D.Sheilds, ed, Handbooks of Management Accounting Research. Elsevier, pp. 729-752. Houghton, E. and Portougal, V., 1997. Trade-offs in JIT production planning for multi-stage systems: balancing work-load variations and WIP inventories. International Transactions in Operational Research, 4(5-6), pp. 315-326. Kee, R. and Schmidt, C., 2000. A comparative analysis of utilizing activity-based costing and the theory of c onstraints for making product-mix decisions. International Journal of Production Economics, 63(1), pp. 1-17. Kelle, P., Al-Khateeb, F. and Anders Miller, P., 2003. Partnership and negotiation support by joint optimal ordering/setup policies for JIT. International Journal of Production Economics, 81-82, pp. 431-441. Khan, L.R. and Sarker, R.A., 2002. An optimal batch size for a JIT manufacturing system. Computers Industrial Engineering, 42(2-4), pp. 127-136. Linhares, A., 2009. Theory of constraints and the combinatorial complexity of the product-mix decision. International Journal of Production Economics, 121(1), pp. 121-129. Mummolo, G., 1997. Measuring uncertainty and criticality in network planning by PERT-path technique. International Journal of Project Management, 15(6), pp. 377-387. Plenert, G., 1993. Optimizing theory of constraints when multiple constrained resources exist. European Journal of Operational Research, 70(1), pp. 126-133. Rand, G.K., 2000 . Critical chain: the theory of constraints applied to project management. International Journal of Project Management, 18(3), pp. 173-177. Shipley, M.F., De Korvin, A. and Omer, K., 1997. Bifpet methodology versus PERT in project management: fuzzy probability instead of the beta distribution. Journal of Engineering and Technology Management, 14(1), pp. 49-65. Watson, K.J., Blackstone, J.H. and Gardiner, S.C., 2007. The evolution of a management philosophy: The theory of constraints. Journal of Operations Management, 25(2), pp. 387-402. Wei, C., Liu, P. and Tsai, Y., 2002. Resource-constrained project management using enhanced theory of constraint. International Journal of Project Management, 20(7), pp. 561-567. White, R.E. and Prybutok, V., 2001. The relationship between JIT practices and type of production system. Omega, 29(2), pp. 113-124. Yasin, M.M., Small, M. and WAFA, M.A., 1997. An empirical investigation of JIT effectiveness: an organizational perspective. Omega, 25(4), pp. 461-471.

Operations Management Assignment - 1609 Words

Question 1: a) Learning curve equation: Y(u) = au-b u | Y(u) | Ln(u)x | Ln(Y(u))y | x2 | xy | 13 | 276 | 2.565 | 5.620 | 6.579 | 14.415 | 29 | 198 | 3.367 | 5.288 | 11.337 | 17.805 | 41 | 171 | 3.714 | 5.142 | 13.794 | 19.097 | 71 | 137 | 4.263 | 4.919 | 18.173 | 20.969 | 127 | 107 | 4.844 | 4.673 | 23.464 | 22.636 | | Sum: | 18.753 | 25.642 | 73.347 | 94.922 | x = 18.7535 = 3.751 y = 25.6425 = 5.128 m = 594.922-[18.75325.642]573.347-(18.753)2 = -0.415 c = 5.128 – (-0.415)(3.751) = 6.685 a = e6.685 = 800.311 b = -m = 0.415 Y(u) = 800.31u-0.415 b) Average learning rate: L = 2-b = 2-0.415 = 0.750 L = 75% c) Cost for the 200th unit: Y(200) = 800.31(200)-0.415 = $88.78 Question 2: a) Values of k†¦show more content†¦G3=0.25145.49-136.34+1-0.259.65=9.53 F(Feb)=F4,5=S4+G4=145.49+9.53 =155.02 F(Mar)=F4,6=S4+2G4=145.49+29.53=164.55 Month | Dt | Ft | Et | |Et| | October | 117 | 118 | 1 | 1 | November | 126 | 127.69 | 1.69 | 1.69 | December | 134 | 137.12 | 3.12 | 3.12 | January | 144 | 145.99 | 1.99 | 1.99 | | | | Sum: | 7.8 | MAD = 7.84 = 1.95 Question 4: a) Seasonal Factors: | | | Centered | | | Period | Demand(A) | MA(4) | MA(B) | Ratio(A/B) | Quarter 2010, I | 1 | 51 | | 61.437 | 0.83 | II | 2 | 56 | | 61.437 | 0.91 | III | 3 | 75 | | 61.125 | 1.23 | IV | 4 | 62 | 61 | 61.75 | 1.00 | Quarter 2011, I | 5 | 52 | 61.25 | 63.875 | 0.81 | II | 6 | 60 | 62.25 | 66.875 | 0.89 | III | 7 | 88 | 65.5 | 65.375 | 1.35 | IV | 8 | 73 | 68.25 | 65.375 | 1.12 | Ratio = Demand/MA MA(4): Period 4:51+56+75+624 = 61 Period 5: 56+75+62+524 = 61.25 Period 6: 75+62+52+604 = 62.25 Period 7: 62+52+60+884 = 65.5 Period 8: 52+60+88+734 = 68.25 MA: Period 3:61+61.252 = 61.125 Period 4: 61.25+62.252 = 61.75 Period 5: 62.25+65.52 = 63.875 Period 6: 65.5+68.252 = 66.875 Periods 1, 2: 61.125+61.752 = 61.437 Periods 7, 8: 63.875+66.8752 = 65.375 Period | Seasonal Factors | Final Seasonal Factors | 1 | 0.82 | 0.81 | 2 | 0.9 | 0.88 | 3 | 1.29 | 1.27 | 4 | 1.06 | 1.04 | Total: | 4.07 | 4.00 | Seasonal Factors: Period 1:0.83+0.812 = 0.82 Period 2: 0.91+0.892 = 0.9 Period 3: 1.23+1.352 = 1.29 Period 4: 1.00+1.122 = 1.06 Final SeasonalShow MoreRelatedOPERATIONS MANAGEMENT ASSIGNMENT8173 Words   |  33 Pages LEADSTAR COLLEGE OF MANAGEMENT AND LEADERSHIP TUTOR MARKED ASSIGNMENT (TMA) FOR OPERATIONS MANAGEMENT ASSIGNMENT WEIGHT: 50% STUDENT NAME Abreham Kelile Kaba ID LMBA0013/2014 BACTH 1ST Part I: Multiple Choice Questions (1 point each) Choose the best answer from the following Questions _C__Q1.One advantage of Just-in-Time (JIT) Management of stock is _____a. It reduces the need to plan and organize _____ b. it removes the need for delivery Quality Control _____ c. it reduces the cost of holdingRead MoreOperation Management Assignment-CDS1724 Words   |  7 Pages Operation Management Assignment Liu Zhenya(Harry) 2014.2.26 Words[1724]Question1: Why is operations management important in this company ?Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. Operations management is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization (Stevenson, W. J., amp; Hojati, M., 2007). TheRead MoreAn Assignment On Operation Management Essay3566 Words   |  15 PagesAn assignment On Operation Management Submitted by: Submitted to: Date of submission: Table of Contents Executive Summary: 3 Introduction: 4 WH Smith 4 Reasons for selecting WH Smith as the selected organization: 4 1.1 Importance of operation management: 4 1.2 Operation management of an organization: 5 1.3 Process model for operation management: 6 2.2 Importance of Three E’s: 6 Economy: 6 Effectiveness: 7 Effectiveness: 7 2.2 Impact of tension on cost and quality: 7 2.3 Significance ofRead MoreOperations Management Assignment3639 Words   |  15 PagesOPERATIONS MANAGEMENT MGCR 472 ASSIGNMENT # 1 (Total 100 points) Due on 7th October (Thursday) by 5pm Make sure to write the name, student # and section # for each student in the group on the cover page of the assignment 1. Suppose you/your group is the owner of a company that produces e-readers. The present production rate is 1000 e-readers /day and the selling price is $210/unit. It requires 200 workers working 8 hours/day to produce the e-readers and they are paid $20/hour. The materialRead MoreOperations Management Assignment2347 Words   |  10 PagesTable of Contents Case: Operations Management at Toyota 2 Conclusion 3 Case: Southwest Airlines Operation Management 3 Background: 3 Analysis of operation Management: 4 Conclusion 6 References: 7 Southwest Airlines Operations - A Strategic Perspective 7 â€Æ' Case: Operations Management at Toyota Toyota is among the leading automobile manufacturers of the world selling almost 9 million models at all the five continents. Toyota has been awarded a position in the top 10 fortune global 500 enterpriseRead MoreOperations Management Assignment - Mba 5021560 Words   |  7 Pagesefficiency with a standardized procedural approach using the single stage process instead of the before used multiple stage process. (Course Virtual Source) Each department manager deals with multiple stage processes in regards to the inventory management which starts from taking inventory, ordering the products, receiving the products, storing the products, and placing the products on the sales floor. The use of a single stage process would be more convenience and consistent with the counterpartRead MoreOperation Management Assignment : Make or Buy Decision2928 Words   |  12 Pagespracticed in the company is further investigated. By and large, this paper focuses on the central knowledge related to the make-or-buy decision. It is imperative for the decision makers to understand the process prior to their involvement in the operation managements. Awareness of such knowledge is paramount to the businesses, in order to achieve a competitive and efficient business strategy. 1.0 Introduction In our contemporary society backed by commercialization and the drive of profit-driven marketsRead MoreBus 599 Assignment 3 : Operation, Technology, and Management Plan1535 Words   |  7 PagesBUS 599 Assignment 3 : Operation, Technology, and Management Plan To Buy this Class Copy paste below link in your Brower http://homeworkregency.com/downloads/bus-599-assignment-3-part-1-operation-technology-and-management-plan/ Or Visit Our Website Visit : http://www.homeworkregency.com Email Us : homeworkregency@gmail.com BUS 599 Assignment 3 : Operation, Technology, and Management Plan Assignment 3 Part 1: Operation, Technology, and Management Plan Due Week 8 and worthRead MoreBus 430 Assignment 1: Lenscrafters Case Study1307 Words   |  6 PagesBUS 430 Assignment 1: LensCrafters Case Study http://homeworkfy.com/downloads/bus-430-assignment-1-lenscrafters-case-study/ BUS 430 Assignment 1: LensCrafters Case Study Assignment 1: LensCrafters Case Study Due Week 4 and worth 250 points This assignment requires student complete an analysis of the LensCrafters case from Chapter 6 of the text. Write a six to seven (6-7) page paper in which you: 1. Evaluate LensCrafters’ operations strategy and explain how the organization seeks toRead MoreOperations Management for Mcdonald963 Words   |  4 PagesBachelor of Science Operations Management Pre course assignment Intake: BSc14L Student Name: Wu Linlin Student Number: 10287698 Lecturer: Professor Brian Fynes Dr. Chang Chen Sheng Date of Submission: 21 February 2012 For the fast food chains, it is no doubt that McDonald s is successful in the world. It is known to all from children to elder. This is closely relevant to organization operation that produces food and services. Operation plays an important

Operations Research and Enterprise System

Question: Discuss about the Operations Research and Enterprise System. Answer: Introduction Enterprise systems refer to the large-scale application software collection that helps organization processes, the flow of information, reporting, and analysis of data to a great group. The enterprise application software systems can be modified and develop custom systems to backing specific organization requirements. In other words, from hardware approach enterprise systems are known as the servers, storage and associated that organization use as the basis for their information technology infrastructure (Pajk, et al., 2013). They are built on software platforms like SAPs NetWeaver and Oracles Fusion, and other databases. They are purposed to control a large volume of essential data about the business or organization. They are designed to scrutinize high level of transaction performance and data security. Enterprise systems for management refers to the enterprise-wide management of distributed systems influenced by network administration initiatives in telecommunications. The technol ogies include the application of assessing the management performance. The enterprise systems are used to maximize the productivity more efficiently through activity that correlates, automate system and forecast assessment of the organization performance (Roth DiBella, 2011). Large and small organizations implement enterprise systems and gain organization-wide access to business understanding, improve workers productivity and reduce the duplication of organization data. Similarly, the enterprise systems help the organization to minimize the cost of information technology and reduce the manual workforce. They enhance benefit such as the support of teamwork, an enhancement response to the marketplace, boost the worker's morale and greater employee collaboration and efficacy. Good examples of enterprise systems include enterprise resource planning, supply chain management, and customer relationship management (Ball, 2009). Customer relationship management. The CRM approach address the need to improve the sales departments productivity and make the management of the organizations consumers an excellent way to double the sales. A model is an approach to managing an organizations integration with current and future customers. The model also tries to give an overview of the data about clients history with a team. The history of the customer's help to enhance the organization relationships with their clients, mainly focusing on client retention and eventually driving sales growth. To the organization, the client relationship management impact on the compiling data forms a range of different communication channels, including a secure website, mails, marketing material, and social media. The CRM approach and the enterprise systems are used to facilitate understanding of the target customers and their needs. Nonetheless, absorbing the CRM model lead to occasional favoritism within an audience of consumers, whi ch further result to customers dissatisfaction and impeaching the role of the model. The primary element of CRM is mostly building and managing, scrutinizing relationships as they cut across different phases, and recognizing the dissemination of value of a relationship to the organization is not universal. Through building and controlling consumer relationships through marketing, firms might profit from using a diversity of tools to support organizational plan, incentive patterns, client structures, and more to augment the reach of its promotion crusade (Systems., 2014). Supply chain management. The supply chain of organizations refers to the array of people, responsibilities, data, and other resources needed to produce and move their products from a salesperson to a client. The supply chain may also describe as activities by chain supply firms in an efficient way. The supply chain activities include product improvement, material sourcing, manufacture and logistics and the information systems that synchronize those events. The information systems enable the supply chain partners to harmonize their strategic and operational plans. The natural flows involve the production, transportation and storing of goods or material. Enterprise resource planning. The model incorporates software applications as an organization incorporate business processes. The processes include purchasing, finance, workforce and account management. The enterprise resource planning system, also amalgamate software components like sales, quality management and accounts receivable. The system also helps in communication and sharing data. The components comprise applications that perform the functions required to execute particular endwise organization practices. For instance, the sales unit involve the applications essential to create and manage sales conventions, sales order, transactions invoices and sales order rating (Wazalek, 2010). Enterprise System Contribution to Organizational Performance The advancement of technology in many organizations has become of the most necessary and control organizations operations. For the organization to operate efficiently, companies tend to seek ways to improve their business activities. Progressively, organizations are adopting the technology, like enterprise systems, for improving their workflows and consumer service practices. The systems are used as the central command center to support automation of the organization and report making and decision making easier. The following are some of the contribution of the ES to organizational performance (Mike, 2011). The storage of information and data help the organization aspect of improving the customer knowledge in having data stored in a way they are easily analyzed and retrieved. An example of some data that should be stored are consumer history, place and time of the orders, and time is taken for the process of order. The organizations ability to retrieve this kind of information should be enhanced to answer clients questions hence developing customer satisfaction. The organization should prioritize using the enterprise resource planning system to rationalize their client service process. The system enables the organization to automate their consumer service experience, which aids the firm to ensure staffs have a consistent experience, and office responsibilities are efficient. The automation saves time as well as help to attend the customers request for product information and predict for new products. When workers spend less time on pursuing customers order, this develops more time on improving sustainable, beneficial client relationship (Crandall Crandall, 2015). Scale available resources as required. Organization performance can improve by employing the enterprise systems since they have abilities to scale the information technology competencies of the organization as required. It translates that organization needs to keep additional data processing power such as software as service or internet enterprise system rather than investing in IT components. Similarly, if the IT hardware is less used or explicitly not used the similar services can be scaled down. All these robust solutions help the firm to manage costs while continue meeting consumers needs. Enterprise system help to boost the employs to use the small scale IT infrastructure which ensures that the systems eradicate interruption in business operation. The solutions gather data and operate efficiently which act as essential part of an active and constant client involvement (Lacity Willcocks, 2009). Many large and small organization have secured customers data using these enterprise systems. In the past decade, the organizations have seen the need to enhance the number security breaches into business servers. Many companies have experienced significantly loses of over hundreds of million dollars. The enterprise systems have made them secure client data as a basic financial priority. Organizations have changed with time and environments hence adopting real-time information concerning a particular businesss operations using enterprise systems. When the organization has high level of access to information, this allows management to evaluate and improve upon the organizations processes to an efficient manner (M., 2010). Cutting down the cost of organization operation. Enterprise systems help in reducing the cost of running the organization, and this translates that that organization will use its excess budget to boost other operations such as customer service processes or fund client service competencies. For instance, they may fund inventory control since inventory can a significant impact on an organization. Many organizations are experiencing challenges in producing a continuously positive consumer competencies. Therefore, the collaborative comprehensive data storage and the use of enterprise resource planning, support in providing standardization of customer experience to a greater degree. The models boost organization performance by easing ways making a decision concerning retention of customers (Giachetti, 2010). Enterprise systems boost the efficiency of supply chain management by using data about the place, time ways clients order and suppliers deliver. The systems underline the importance of storing organization data in a practical formula. Eventually, the capacity to deliver products through supply chain are more reliable and cost-effective. Over the years, regulations have required investors to get the amount of data regarding organizations operations, such as information about properties, assets and inventory management. The major benefit of enterprise systems of control is that much of the information required can be gathered through computerized. Moreover, the enterprise systems can be used to make sure regulatory compliance without excluding personnel forms its core client service responsibility (GOROD, 2016). Principle drivers Supply chain management has become very demanding by many businesses though adopting its principles. However, it has been viewed as the top business management style. The following are some of the principle drivers that has led to firms adopt it. Group clients on regard to service needs. Previously, many businesses sorted customers by industry, product, and trade channels which later give them a level of service to each of them within the segment. By contrast, supply chain management system effectively, sort consumers by different service needs without t concerning the industry, and later modify service to those groups. Currently, vibrant businesses are adopting to such advanced logical approaches as a cluster to determine consumer tradeoffs and forecast the profitability of the segments. Many businesses are applying a cross-functional approach to improving supply chain programs by developing segment that amalgamates essential services for everyone hence maximizing profitability (An, 2008). Many businesses have customized the supply chain management system. The businesses have identified consumer segments that enable them to deliver services customers need. The networks have provided them with a deep overview over gaining profit. The businesses have overthrown the consistent approach and adopted supply chain management systems in shaping their warehouse and transport activities to reach standardization of their objectives. For many, they have adopted the management system to enable them to deliver the maximum service requirement to all clients (Trebilcock, 2011). Another reason is that businesses want to create differentiation regarding their product hence bringing them closer to the customers. Unlike in past years, many companies want common knowledge that enhances time in chain management system since they are fixed. The systems strengthen their capacity to reach to market and read the signal hence speeding the process to give their customer finished goods and service tailored to customer specifications. The approach, therefore, enhances dynamic to produce products configured to moment demand require (Kart, et al., 2010). Businesses also opt for supply chain management system to cut down the total cost of buying materials and service since it controls sources of supply They have also chosen for the management system for performance measurement to determine collective success in reaching the customer efficiently and smoothly. The organizations may feel that the business need an enterprise system by considering the following. If the organization experience weak business performance, the organization feel enterprise system management will help to improve and execute business processes and operation. The tools enhance delivering benefits to the functioning of the organization (Pinson, et al., 2015). When the organization needs to integrate systems across the all department, hence develop a need for using enterprise systems. Management of organization also advocates for the use of systems if they need to position an organization for growth. Especially, the large organization which has not yet implemented these systems and then you urge for a large growth spurt. Again if the management predicts an increase in future, they apply enterprise systems (Watson, 2010). However, several problems of implementing ES may be realized. Several ways may be applied to overcome them. Plan before you establish and use any ES tool. The planning will enable the software tailor to meet the organizations specific needs. Ensure to consult with other organizations that have used these tools. The consultation gives organization opportunity to contact and ask a question regarding enterprise system and converse their experiences they have (Kumar, et al., 2011). References An, H., 2008. The Construction of Green Supply Chain Management System. International Journal of Information Systems and Supply Chain Managemen, 1(3), pp. 70-79. Anon., n.d. s.l., s.n. Ball, M., 2009. Enterprise systems.. International journal of bio-medical computing, 13(1), pp. 113-118. Crandall, R. E. Crandall, W., 2015. How management programs can improve performance : selecting and implementing the best program for your organization. 2 ed. Charlotte, North Carolina: Information Age Publishing. Giachetti, R. E., 2010. Design of enterprise systems : theory, architecture, and methods. 6 ed. Boca Raton: CRC Press. GOROD, A., 2016. Case studies in system of systems, enterprise systems, and complex systems engineering.. 1 ed. Boca Raton: CRC Press. Kart, F., Moser, L. E. Melliar-Smith, P. M., 2010. An Automated Supply Chain Mnagement abd Its Performance Evaluation. International Journal of Information Systems and Supply Chain Management, 3(2), pp. 89-110. Kumar, S., Esteves, J. Bendoly, E., 2011. Handbook of research in enterprise systems. 5 ed. Delhi : SAGE. Lacity, M. C. Willcocks, L., 2009. The practice of outsourcing : from information systems to BPO and offshoring. 5 ed. Basingstoke [England] : Palgrave Macmillan,. M., M. J., 2010. Enterprise systems integration. 3 ed. Boca Raton: Auerbach,. Mike, B., 2011. The New Era of Enterprise Business Intelligence. 1 ed. Birmingham: IBM Press . Pajk, D., S?temberger, M. I. Kovac?ic?, A., 2013. Enterprise resource planning (ERP) systems : use of reference models. 3 ed. New York: Perspectives in business informatics research. Pinson, E., Valente, F. Vitoriano, B., 2015. Operations research and enterprise systems. 3 ed. Cham : Springer. Roth, G. L. DiBella, A. J., 2011. Enterprise systems. Hitchcock Pub, 13(8), p. 38. Systems., M., 2014. Enterprise systems, Chicago: Hitchcock Pub. Co.. Trebilcock, B., 2011. Achieving Supply Chain Management (SCM)-Customer Relationship Management (CRM) Synergy Through Information and Communication Technology (ICT) Infrastructure in Knowledge Economy. Logistics management, 50(3), pp. 342-357. Watson, I. D., 2010. Applying case-based reasoning : techniques for enterprise systems. 7 ed. San Francisco, Calif: Kaufmann. Wazalek, J., 2010. Enterprise systems integration. 1 ed. Boca Raton: Auerbach.

Business Law1 Essay Example For Students

Business Law1 Essay The full name of the first company I chose is Entrust Technologies Inc. The state and year of incorporation is Texas in 1996. The company was a spin-off of Nortel Networks. The worldwide headquarters for the corporation is 4975 Preston Park Blvd Suite 400 Plano, Texas 75093. The Chief Executive Officer and President of the company is John Ryan. The number of shareholders is in the 26, 000 range and the stock is traded on the NASDAQ. The ticker symbol for the corporation is ENTU. The CUSIP number is _________. The price range of Entrust Technologies from 1998 1999 was $24 upon opening on January 1, 1998 and its close was $60 on December 31, 1999 (See chart 1.1, attached to back of paper full year price range). The corporation has many subsidiaries that it recognizes: Entrust Technologies Limited, Entrust. net, Entrust Technologies (United Kingdom, Switzerland, Japan), Entrust Technologies GmbH (Germany) and CygnaCom Solutions. Entrust Technologies Inc. provides products and services to ensure secure electronic communications and transactions over the Internet, Extranets and Intranets. (http://biz.yahoo.com/p/e/entu. html) The company is ahead of its game in the Internet business. A lawsuit was filed against the company in February of 1999 by Surety technologies, Inc. The lawsuit involved the supposed infringement of patent rights on the part of Entrust Technologies. Surety said they developed a digital timestamping method using hash and sign. They claim it was their method and only theirs. The United States District Court for the Eastern District of Virginia ruled for Entrust claiming that the patent covering the special hash -and- sign method used by Surety was not a new thing. Any company could use the technology to better their communication systems by timestamping electronic documents. The lawsuit and verdict proved to the rest of the world that Entrust Technologies is ready to advance all companies with special devices to make their business run a little bit smoother. The verdict was handed down in November 1999 and gave ENTU a very strong third quarter. Their revenue increased from $13.0 million to $22.6 million in one year. The lawsuit benefited, not hampered the business practices of Entrust Technologies. There are literally hundreds of competitors in the computer services business. AutoBytel Com Inc., Agency Com LTD, Publicard Inc, Zapme Inc., Knot Inc. and Paychex Inc. are just some of the companies that compete in the business with Entrust Technologies (See 1.2, attached file regarding the competitors). VectorVest rates the long-range outlook for the stock poorly in most areas. They rate stocks well that are steady and predictable. All the stocks are rated on a 0.00 2. 00 scale, a relative safety greater than 1.00 is safe and below 1.00 is not a safe buy. ENTU was given a relative safety of 0.71, very poor. The relative value is a 0. 82, also poor. When a stock has a relative safety and value greater than 1.00 the earning rate will increase and shares will increase in value. Entrust was given a relative timing rating of 1.04, which is fair in this field. The trend established is fair and might last depending on the stocks dependability. VectorVest also suggests that ENTU is overvalued and having a high-risk dividend because it does not pay a dividend. This also shows that ENTU has not dividend growth and that indicates future outlook and past history. In conclusion, Entrust Technologies has a below average safety with below average upside potential. This reflects the stocks potential and almost ensures below average, inconsistent returns. Reesegroup.com rates ENTU as having no interest at this time. ENTU has no inventory to calculate its inventory sales and it fails the growth rate test. They claim that ENTU has grown too fast in the past three years. They do, however, give good financial strength to the company. My final analyses were given by StockConsultant.com and Zacks.com. .u59e3cd658a79c1012ab55262f601d300 , .u59e3cd658a79c1012ab55262f601d300 .postImageUrl , .u59e3cd658a79c1012ab55262f601d300 .centered-text-area { min-height: 80px; position: relative; } .u59e3cd658a79c1012ab55262f601d300 , .u59e3cd658a79c1012ab55262f601d300:hover , .u59e3cd658a79c1012ab55262f601d300:visited , .u59e3cd658a79c1012ab55262f601d300:active { border:0!important; } .u59e3cd658a79c1012ab55262f601d300 .clearfix:after { content: ""; display: table; clear: both; } .u59e3cd658a79c1012ab55262f601d300 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u59e3cd658a79c1012ab55262f601d300:active , .u59e3cd658a79c1012ab55262f601d300:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u59e3cd658a79c1012ab55262f601d300 .centered-text-area { width: 100%; position: relative ; } .u59e3cd658a79c1012ab55262f601d300 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u59e3cd658a79c1012ab55262f601d300 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u59e3cd658a79c1012ab55262f601d300 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u59e3cd658a79c1012ab55262f601d300:hover .ctaButton { background-color: #34495E!important; } .u59e3cd658a79c1012ab55262f601d300 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u59e3cd658a79c1012ab55262f601d300 .u59e3cd658a79c1012ab55262f601d300-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u59e3cd658a79c1012ab55262f601d300:after { content: ""; display: block; clear: both; } READ: The Apathy Of Generation X Essay They give ENTU a neutral rating when it comes to long term moneymaking and stock increase. Zacks.com gave it a strong buy in most areas. Entrust Technologies Inc. was a good buy. I disagree with the critics on this one. When I bought the stock on January 20th it was at $56 and it rose up and down slowly to 92 .