Preservation of Organs for Transplant Research Paper - 1

Substitute Goods Essay Example For Students

Substitute Goods Essay In financial aspects, one sort of good (or administration) is supposed to be a substitute useful for another sort to the extent that the two sorts of merchandise can be devoured or utilized instead of each other in probably a portion of their potential employments. Great instances of substitute merchandise incorporate margarine and spread, or oil and gaseous petrol (utilized for warming or power). The way that one great is substitutable for another has quick monetary results: to the extent that one great can be fill in for another, the interest for the two sorts of positive attitude be bound together by the way that clients can exchange off one useful for the other on the off chance that it gets worthwhile to do as such. We will compose a custom article on Substitute Goods explicitly for you for just $16.38 $13.9/page Request now Accordingly, an expansion in cost for one sort of good (ceteris paribus) will bring about an increment sought after for its substitute products, and an abatement in cost (ceteris paribus, once more) will bring about a diminishing popular for its substitutes. Along these lines, market analysts can foresee that a spike in the expense of wood will probably mean expanded business for bricklayers, or that falling PDA rates will mean a tumble off in business for open compensation telephones. Note that when talking about substitute products we are talking around two various types of merchandise; so the substitutability of one useful for another is constantly a matter of degree. One great is an ideal substitute for another in particular in the event that it tends to be utilized in the very same manner, at the very same expense, and with the very same nature of result; that is, when there is no specific impetus for a client to lean toward one over the other. Obviously, there are generally not many ideal substitutes aside from between two merchandise of a similar kind. Substantially more typical is for products to be flawed substitutes for each other. Minimized plates and tapes, for instance, can both be utilized for a similar reason (as media for recording and replaying sound), however there are huge contrasts between the two as far as strength, sound quality, and the expense of the account media and the gear used to record on it. Accordingly the two can be fill in for each other, yet there are critical exchange offs associated with choosing to substitute one for the other: on the off chance that you purchase a tape rather than a CD, you may save money, yet you will get lower sound quality and a less strong great; on the off chance that you purchase a CD rather than a tape, you may show signs of improvement sound quality yet you will pay more and you will be unable to tune in to the CD in your vehicle. By the by, CDs and tapes are substitute merchandise (however just incompletely): thus if changes in the market will in general dissolve the points of interest f picking tapes over CDs, (for example, a reduction in CD costs or expanded accessibility of vehicle CD players) it will in general increment the interest for CDs and decline the interest for tapes. Something contrary to a substitute decent is a supplement decent. As it were, acceptable replacement is a monetary idea where two products are of practically i dentical worth. Vehicle brands are a model. While somebody could contend that Ford trucks are vastly different from Toyota trucks, If the cost of Ford trucks goes up enough, a few people will purchase Toyota trucks.

Cal Bar Essay Samples - Get Yourself Prepared For the Exam

Cal Bar Essay Samples - Get Yourself Prepared For the ExamCal Bar Essay samples can be found on various websites, in the US and elsewhere. They are designed to help you prepare for your Cal Bar exam.The BS test is usually taken by law students. In many places, the exam is a collaboration between the law school and the test company. Hence, it makes sense to work closely with these two parties, rather than taking the exam alone and suffering from headaches and other such stress related issues.For that reason, it is important to have Cal Essay samples at hand so that you do not forget or make mistakes during the exam. It helps if you do not cram during this period of time. You should be relaxed and concentrate more on your written answers rather than the timing and so on.The question banks for these exams are the same as those used in the government's quiz sites. The tests are typically five to ten minutes long and contain two sections, which include long-form essays and short-form essa ys. Most of the questions are posed to you in pairs or groups of two.Once you have answered some questions, you will then be given a prompt to write an essay. Do not spend too much time on this portion of the exam as it is not a test. Just go through the essay until you reach the last part that asks for your answer.After writing the essay, you can mark it or leave it as it is. Most questions are straightforward and do not require you to rewrite. If you get stuck while answering one or two questions, you can try to put forward a complete thought rather than rambling on.When the exam is over, you can either get help from the website of the Federal Judicial Center or ask the organizers for an alternate location to present your essay. The main goal is to learn the material so that you can sit for the actual exam in a few months.Cal Bar Essay samples are designed to guide you through the process of preparing for the test. There are many resources on the internet to help you prepare for t his exam, but a lot of it is just general advice and should not be considered as a replacement for your real preparation.

Reflection Paper On Storytelling - 1696 Words

Storytelling: A Reflection of Ourselves What’s the first thing that pops into your head when you think of storytelling? Is it the countless nights you laid in bed as a child listening intently to stories that made you believe you could be and do anything; you could be a pirate day and an astronaut tomorrow or even a detective outsmarting the bad guys like Sherlock Holmes and Watson or Nancy Drew. Or perhaps you think of that lecture in your high school or college history class when your professor showed you a documentary or a movie that introduced you to a part of the world, group of people, or a movement like The Black Power Mixtape 1967-1975 or Rob Marshall’s adaptation of Arthur Golden’s Memoirs of a Geisha that left you with a hunger†¦show more content†¦I grew up as a Pastor’s grandchild, a wholly different experience than my mom’s complicated experience as the â€Å"Preacher’s kid†. As a pastor my grandmother has what I always thought was an unwavering belief system in which God is everything, school wouldn’t get you to heaven, men were meant to sow their wild oats, and women were meant to diligently wait for their return. These were the lessons, the stories she impressed upon her children and left whispers upon the grandkids. However, I saw a remarkable change in my grandmother as she retold the sparse narratives of our family history to my sister and me. What I saw in my grandmother was self-reflection, reflection of the seemly unending cycle of uneducated women with babies to feed, no men insight, and grandsons toddling behind. In Why Stories Matter Marshall Ganz states that there are three parts to building stories that create social change, change that propels us forward not alone but together: â€Å"a leadership story is first a story of self, a story of why I’ve been called†¦the second story is the story of us†¦what experiences and values do we share as a community†¦ [then] there’s the story of now† (Ganz, pars. 13-15). These three stories can be found in my grandmother’s transformation. She found the story ofShow MoreRelatedStorytelling As A Form Of Storytelling1008 Words   |  5 PagesFurthermore, storytelling becomes a form of physical and psychological torture that the characters try to escape. There are two perspectives that torture illustrates in the plays. Torture as a form of storytelling is sharing the stories, but also how stories are told. The Pillowman forms storytelling as torture when the Tupolski and Ariel interrogate Katurian to expose his ide ntity through his stories. The push of storytelling as torture becomes a central focus when the use of language and wordsRead More`` Twilight Zone Of The Digital Age ``1032 Words   |  5 Pagesdistinct plot devices and storytelling patterns, making for a viewership experience that is discomforting, eerie, and ultimately, familiar in both medium and message. This paper will thus examine the narrative delivery structure of Black Mirror and explain how through its complex storytelling, it has been successful in creating a dynamic experience of spectatorship that implicates the viewer by engaging their self-reflection regarding its thematic contents. For this paper, I will examine the technicalRead MoreThe Role Of Storytelling In The Pillowman And Antigone In New York1416 Words   |  6 PagesThe Pillowman and Antigone in New York illustrate storytelling as a central role regarding the character truth. The impact of storytelling influences the actions and behaviour that the police officer’s observation affects the way the characters perceive themselves. Katurian in The Pillowman and the homeless, Anita, Sasha and Flea, in Antigone in New York represent the act of storytelling as a way to escape their realities. Storytelling examines the influence from the past to represent the problemsRead MoreNative American Paper1353 Words   |   6 PagesNative American Storytelling Paper Rashmi Price ENG/301 August 26, 2013 Dr. Gregory Beatty Native American Storytelling Paper Native American literature is considered by many as the traditional written and oral literature of Native cultures around the world. Many of these literatures are transmitted over periods of time by storytellers. This particular literature has many features that includes a mixture of oral tradition techniques along with tribal mythology. The majorityRead MoreAnalysis Of Postcolonial Politics Of Academic Writing815 Words   |  4 Pageshas readings covering Noxolo (2009), Jazeel Colin (2009) and Nagar (2012). What these authors have in common is that, they are all feminist geographers. Generally, Noxolo (1999) tries to answer a question posed in her article titled my paper, my paper: reflections on the embodies production of postcolonial geographical responsibility in academic writing, what are the responsibilities of as a postcolonial geographical writer? And in her attempt to answer that, Noxolo refers to three extracts fromRead MoreReflection Paper: Primitive Religion666 Wo rds   |  3 PagesReflection Paper: Primitive Religion Reflection Paper: Primitive Religion Hearing a religion deemed primitive does make one think that religion may not have much to offer, or may need many improvements. However, that is not really the case. Primitive religions are more focused on the oral traditions and storytelling that were common before technology essentially came along and took over everything. Now it is possible to find all kinds of information about different religions online. Some ofRead MoreThe Wife Of Bath s Tale931 Words   |  4 Pagesto be governed by their wives. The knight lets the poor and unappealing lady decide for them. From the beginning of the story, it shows that women have a power in their marriage. (ASSESSMENT) This article was found in AVL. (REFLECTION) This article fits into the research paper because it deals with the role of a woman and want she wants. The source was helpful to me it helped me understand the story better. I could use this source describe how the women is the head of the marriage, even though sheRead MoreMy Firs t Encounters With Writing921 Words   |  4 Pageshad hated me) made me inspect my writing closer than ever. I started to think that maybe writing was my gift, and that I just naturally excelled at it. As a junior in high school, I entered a writing workshop and always scored a 97 or above on any paper; except, despite the success, I still had not discovered my own voice. All the writing I had ever done was aimed towards formatting and facts rather than my own thoughts. It wasn’t until this year at Truman that I was introduced to the writer insideRead MoreThe Importance Of Guidance For Leaders And Employees1097 Words   |  5 Pagesenvironment for all that can destroy an organization. The purpose of this paper is to provide a sense of guidance for leaders and employees to employ when faced with volatile situations within their work environment. Such will foster team building and empowerment with quality patient care executed. This paper reflects on conflict resolution that is guided by evidence –based principles in order that resolution is a reflection of the high standards set forth by evidence-based practices. A case studyRead MoreHow Personality Testing Is Used On A Daily Basis822 Words   |  4 PagesSuch assessments as the Thematic Apperception Test, Neuroticism, Extroversion, and Openness inventory and the Psychopathic Personality Inventory are instruments, which assist the psychologist in assessing an individual’s personality. The following paper will discuss each of these tests. Thematic Apperception Test Thematic Apperception Test (TAT) is a personality assessment instrument. Created in 1935 by Henry Murray and Christiana Morgan the purpose of the test is to reveal the participants emotions

African American History Essay - 2129 Words

African American History During my early years of school, I remember being taught white accomplishments and wondering if blacks and other people of color had made any significant contributions to todays world. I noticed that television consist of all white people. Throughout my research paper I hope to cover certain aspects of African American heritage. Aspects such as blacks making up the largest minority group in the United States, although Mexican-Americans are rapidly changing that. The contributions blacks have provided to our country are immeasurable. Unfortunately though rather than recognizing these contributions, white America would rather focus on oppressing and degrading these people. As a consequence American†¦show more content†¦Individuality was not stressed but rather the importance of the extended family. I believe that African Americans suffering through the hardships of slavery strengthened the idea of kinship even further. The unity of the African culture became strong due t o a series of trials and tribulations. The majority of the slaves were employed in agricultural areas in the South. By the mid-19th century, a large number of slaves worked in urban areas as well, and about 5% worked in more industrial occupations. The hours of the slave workers were long. The average life expectancy of African slaves was at least 12% lower than whit Americans in 1850 and the infant mortality rate was 25% higher for slaves. Oftentimes slave marriages and families dissolved due to separation. This concept is horrible when you take under consideration that family was the entire basis of African culture. Although frequent separation occurred slaves were very careful to pass on the surnames of their black family of origin to their children. Kinship again is an importance in African society. Although the first steps towards in improvements for African-American culture began in the North, social and economic conditions didnt improve much at all. The racial attitudes of whites were still obvious among the white society. Laws banning interracial marriage and voting among free blacks accompanied every northern state emancipation. These laws were supposedly designed toShow MoreRelatedAfrican Americans And African American History959 Words   |  4 PagesAs African Americans we need to know the history of our ancestors in order to make the next generation better. African Americans need to know the struggles and hardships that our ancestors had to go through that pave the way for my generation and the generations after me. It is important to know how our ancestors had to endure slavery. If the older generation does not continue to pay homage to the history of our ancestors, the younger generation will lose sight of what our ancestors have been throughRead MoreAfrican American History : African Americans Essay2004 Words   |  9 PagesAfrican-American history originates before the development of the United States as an autonomous nation, and Afric an-American writing has correspondingly profound roots. The African-American writers kept the subject of southern slavery at the top and wrote about their experiences in 18th century America. The slave accounts were vital to African-American writing. Exactly 6,000 previous slaves from North America and the Caribbean composed records of their lives, with about 150 of these distributedRead MoreAfrican American History : African Americans1269 Words   |  6 PagesThere are countless examples of how African Americans have transformed history or made a mark on our country. 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It was founded on the belief that black survivalRead MoreEssay on African American History in America1064 Words   |  5 Pagesrepresents one of the major themes in the history of African Diaspora in the Americas† (para. 1). African American history plays an important role in American history not only because the Civil Rights Movement, but because of the strength and courage of Afro-Americans struggling to live a good life in America. Afro-Americans have been present in this country since the early 1600’s, and have been making history since. We as Americans have studied American history all throughout school, and took one MonthRead MoreThe History Of Police And African Americans Essay1434 Words   |  6 PagesAfrican Americans in modern America have bound together in unity against inequality to help end the unnecessary murders and unjust police beatings. However, where did these tensions between police and African Americans begin? 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It’s essential that a class like African American history becomes more diverse. Most assume that this class is aiming for an African American audience. This assumption is completely misleading, but most fall the underdog to. The homogeneity society amongst the students is bare and should be altered. I’m currently enrolled in African American history. I’ve noticedRead MoreAfrican American History 122001 Words   |  9 PagesDuring the years of 1873-1923 was the worse for African American history. After 1877, blacks’ political rights were taken away through many occasions such as: fraud, intimidation, and murder. In 1890, legislators in Mississippi called a constitutional convention, implementing poll taxes, literacy requirements, and banned voting for people convicted of theft, perjury, arson, bribery, and burglary. Whites thought if they could put a limit to the educational achievements of Negroes, they could alsoRead MoreNational African American History Year876 Words   |  4 Pagesyear, February is to be known as the Black History Month, or formally known as National African American History Month. It is an annual commemoration of achievements by African Americans and a time for recognizing the central role of African Americans in United States histo ry. Black History Month had its origins in 1915 when Dr. Cater G. Woodson and his colleagues founded the Association for the Study of Negro Life and History (African American History Month, 2014). This organization is now known

Create Products And Services Customers Want -Myassignmenthelp.Com

Question: Discuss About The Create Products And Services Customers Want? Answer: Introduction This marketing management report is comprised of analysis of customer behavior of the target customer segment and strategies to change it to the desired product. The high involvement nominated product is Samsung Gear VR and the compared product is HTC Vive VR. Both the products are categorized as an entertainment product, which comes under esteem, needs stage of Maslows need theory. Further details of the products are mentioned in the description section of the report. These are high involvement products, which undergoes various steps of decision marketing by the customers. Various factors regulates the decision making process of the customers that are discussed in the report. The purpose of the report is to change the preferences among the target customers segment of Roy Morgan identified in the individual report. The first part of the report is comprised of the customer description and insight. As a matter of specification, the report would focus on the customers, who are aware of the specialties of Roy Morgan. Therefore, one of important components here is prior purchase experience. Theory of customer behaviour is included in the process to identify the selection process. This section would peek into the behavioral approach of these customers, when their peers and relatives offer them suggestions about the newly launched models of Roy Morgan. Here, there would be variations in the behavior of the customers. Some would just ignore the suggestions, as they think that what they know is enough. Some others would be interested to know more about the new models, offers and schemes on the purchase of the Roy Morgan model. This section of customers wants to enhance their buying behavior. The following part of the report discusses about the nominated products value proposition and the marketing mix strategy used by the company. The goals and objectives of the report identified in the next section for the competing product along with the value proposition and marketin g mix strategy to achieve the proposed goals. The report ends with the justification of selecting the strategies selected and the chances of success using the proposed strategies the marketing of the company. Target Customer - Description and insight Marketing theories identify the customers differently based on their purchasing behavior. Several behaviors are identified which can be like, amount of money, post purchasing behavior spending attitude and peer influence. The selected target customer for the purpose of study is the socially aware segment of Roy Morgans value segmentation. The segment of people holds this thinking pattern falls under the highest socioeconomic group in the Australian community. Age based demography of this group in Australia ranges from 18-40-years-old. Customers behaviour on purchasing any product could be described using the Maslows hierarchy theory of need that identifies five kinds of need visible in human kind. They are psychology, security, social, esteem and self-actualization need (Lester, 2013). Physiological needs identify the basic needs where the consumers are reluctant to think about the price and where the quality of the product is of main importance. Security needs comes after completion of physiological needs that covers safety, stability and law and order. Social needs on the other hand are the needs belongingness to feel the essence of ones presence as a social being. Esteem needs comes at fourth stage that seeks for achievement, respect, independence and prestige. The final stage varies person to person as per their personality and life goal. People aim to achieve the targets in this stage (Block, 2011). The product under study for the given target segment comes under the esteem need which is a psychological need; hence need more verification before consideration. Consumers Decision-making Decision making process goes under a several stages where stage of purchasing a product is the need recognition where the nominated product is already identified as esteem need. It is due to the satisfaction it provides to the consumer by the mode of achievement. The second stage is information search where the customer seeks for the details of the product. Next one is the alternative searching where the consumer seeks for alternative products available in the market. Purchasing decision is the final decision of the consumer based on the analysis of the previous stages. Post purchase where the consumer justifies their purchase (Solomon, 2014). Purchasing Behaviour Pricing level, risk level, quality feature, and high and low involvement are the factors that plays curtail role in decision-making. Pricing level The socially aware consumers are concerned about money and takes longer time in taking decision. However, they take less time in physiological products and longer time in esteem needs. Risk level Risk level is associated with the relation between accurate price and quality of the product. The esteem needs requires verification and confirmation before making decision. Quality feature It comes in accordance to every product starting from physiological to esteem ones. High and low Involvement Low involved products are those that requires less time in decision making such as the physiological products. Whereas, esteem product requires longer time and process for decision making this is why it is considered as high-ended product (Schiffman et al., 2013). Nominated Product Nominated Product Samsung Gear VR Manufacturer Samsung and powered by Oculus Price $ 99 USD Colour Black Features Supreme comfort Convenient control Super AMOLED display Light Weight Sensor: Accelerometer, Gyro Sensor, Proximity Sensor Availability Available in Samsung stores, third party stores and online market Compatibility Samsung Note 5, S6, S6 Edge and S6 Edge+ (Gear VR, 2017) Table No. 1 Value Proposition The value proposition of Samsung Gear VR focuses on the promotion of the features of the products. Various features like comfort, easy to use features have been highlight in their website. Compatibility with other devices and other inbuilt features are mention in details. The company also focuses on the benefits of using Gear VR and the experience the consumers can have from using it in their value proposition. The presentation of value proposition is up to mark as Samsung has followed the golden rules of value proposition for their Gear VR product. However, they failed to highlight the target population and explain who can use their Gear VR. Moreover, Samsung did not use any of the boosters of value proposition for their product (Lindi? Marques da Silva, 2011). Marketing Mix This is the combination of tactics and strategies used by a company to promote product in the target market. Traditionally the marketing mix is comprised of 4Ps that are product, price, place, and promotion. Additional 3Ps are added in recent year that are process, physical environment and people. Product Samsung launched their product in November 2015 along side of Galaxy s7 and s7 edge. The product was build for everyday consumers. The product is capable with multiple Samsung devices of their own brand like Samsung Note 5, S6, S6 Edge and S6 Edge+. One can find their Gear VR in any of the Samsung Stores in the market. Besides their own stores, Samsung made it available in other third party stores, supermarket and in various online stores. The device provides a supreme level of comfort to their consumers. Like their easy to use Smartphone that are available in the market, they made the device keeping the same perspective in mind. Super AMOLED provided in the Gear VR aims to provide an experience that they never had. Moreover, they made the device lightweight for distinguishing their product from the available devices in the market (Chikweche Fletcher, 2012). Price The price of the product kept under $100 USD to attract customers from every economic background. Moreover, the other similar devices that are available in the market have higher price range with greater facility. However, the product of Samsung is to target the lower and middle class population. Place Samsung Gear VR is available in every corner of the world. One can find a Samsung store almost in every corner of the world. However, the product is also available in the third party retailers and in e-markets too such as Amazon. The product is also made available in the companys own official website (Ataman, Van Heerde Mela, 2010). Promotion Samsung applies the price skimming theory in every one of their product. It is to attract and build the customer base before others can enter the market. Afterwards, they turn back to their actual promotion to keep up in the market increasing their sale. Even in the existing market, they use this policy to pull the customers towards them in the first days of the product launch. This case is no different from the case of smartphones. Moreover, the sample promotion is opted for the promotion that let the customers to experience the product before purchasing. The company also uses social media marketing as a primary marketing process of the product to attract the customer. It is also justified in case of Australian market as most of their population shows their noticeable presence in the social networks. Social media other than networking is also used as primary promotional activity (Yasanallah Bidram, 2012). Table No 2 Competing Product Compared Product HTC Vive VR Manufacturer HTC Valve Corporation Price $ 999 AUD Colour Black Features Lightweight Deluxe Audio Strap Vive tracker Real world awareness 110 field view 360 motion tracking 1080 x 1200 resolution with 90Hz refresh rate Dual AMOLED 3.6 diagonal Availability Available in HTC stores, third party stores, HTC official website and online market Compatibility Bluetooth, SD Card, wire connection with PC (vive.com, 2017) Table No. 3 Goal and Objective Goals are the principles set by the companies to take the necessary decisions for the betterment of the company. Whereas, the objectives are the specific and measurable steps that are taken by any company to meet their goals. HTC needs something out of line to sell their new product, HTC Vive kit in the market. Goal over three years set for the company for competing the nominated product in the market. They are Objectives Goals Measuring Unit 2018 2019 2020 Brand awareness Percentage of the target market aware of the product 25% 45% 70% Growth Annual increase in sales ($) 3m 5m 8m Image Percentage of the target market likes the product 25% 35% 55% Brand Loyalty Percentage of people suggest the product to others 10% 25% 50% Table No. 4 If HTC personnel conduct consistent evaluation of the achieved growth and the steps taken to achieve this growth, estimations regarding the effectiveness, feasibility and appropriateness of Vive Kit would seem to be an easy task. Moreover, evaluation would bring to the forefront the drawbacks of Vive Kit if any. This would enhance the awareness of the personnel regarding the additional steps needed to upgrade the standard and quality of Vive Kit for achievement of large scale customer satisfaction. Value Proposition A proper value proposition of HTC Vive can help HTC to turn the target segments interest from Samsung Gear VR to their product. The analysis of Samsung Gear VR shows that they have failed to specify the target population and who can use their product. HTC can utilize that in their value proposition along side with their product description. Their product serves range of purposes, which they should highlight in their value proposition and make clear distinction form Samsung Gear VR. Moreover, boosters of value proposition like free shipping, fast shipping, and bonus for the customers and many more could be utilize in their value proposition to grab the customers attention and make them think for it. Besides, they can also offer some free trial of their apps and games included in their Vive kit for a specific period after purchase to provide the extra benefit of purchasing their product (Osterwalder et al., 2014). Marketing Mix Product The product is available in any HTC stores and HTC official websites. Besides, it is also available in any third party stores and in the online market. It is lightweight with deluxe audio strap that makes it comfortable to use. New vive tracker helps one to keep track of their activities in the device. A front facing camera provides real world awareness while using the device. 110 field views with 360 motion tracking give one experience of supreme quality of virtual reality. 1080 x 1200 resolution with 90Hz refresh rate and Dual AMOLED 3.6 diagonal brings the extreme quality VR effect for the consumers. It is not limited to watching videos in VR. One can play games, attend virtual meeting, parties with HTC Vive kit. Application of this device is limitless (Khan, 2014). Price The price of the product is $ 999 AUD targeting the upper income group in the target market. There are many competitors providing similar product in low price where the features are also limited. The new HTC Vive VR brings all in one package of VR device that enables the customers to use every aspects of VR in one single device. The complete HTC Vive kit with controller is available in the price with extra benefit purchasing from the HTC official website. Place The product is available in every corner of the target market and available in in every third party retail store to reach out most of the target population. It is also exclusively available in HTC official website and other online stores (Armstrong et al., 2015). Promotion The company should utilize every possible aspect of social media marketing to attract the target customer segment with special focus on the social networking. Social networking is use by every age group in Australia, which enables them to address the larger population segment in a single shot. Moreover, they should provide sample to the retail store to let the consumers experience the features of the product before making decisions. Customers should be included in HTCs promotion, where the buyers will be sharing their experience and satisfaction using the product (Gordon, 2012). Table No. 5 Justification The value proposition proposed for the HTC Vive kit will definitely draw attention of the customers as they are set different from Samsung in more than one cases and provide more information of he benefits thee customers will have using the product. The features are well distinguished from the Samsung Gear VR where the customers are given opportunity to judge themselves the extra benefit they can have out of it. HTC specifies the particular segment of the population the product is made for which will give extra benefit to the company. Last but not the least, the booster proposed for the value proposition of HTC will draw more attention and make the customers think twice before going for Samsung Gear. It will supplement in building customer loyalty for the product. The high price is well cover with the extra benefits customers are getting from the product. The marketing strategy of HTC is set unique in promotion that will help them meeting their goal of brand loyalty and image. Goals of awareness, image, and loyalty are meet with the value proposition and marketing strategies, which will facilitate in generating growth of product sale. Conclusion The report successfully demonstrates the value proposition and marketing strategy for HTC Vive kit to compete Samsung Gear VR in the Australian market. The company will be able to attract the target segment and change their preference with the proper implementation of the proposed strategies. The goals and objectives set are easy to achieve with the unique value proposition and strategy as mention above. The justification section in the report could be considered as the evidence of its success of the strategies suggested. However, certain recommendations would expand the scope and arena of HTC business. These are: Adopting search engine optimization for conduct market research for enhancing the network chain Providing access to the customers by letting them test the samples of the Kit in the local stores. For this, the company needs to possess a good stock of Vive Kit. Here, stable relations with the suppliers and distributors would be crucial. For the promotion of the Vive Kit, the customers needs to be included, as they as the keystone for the company to achieve success. In order to avert encountering instances of inflation, fluctuation in the prices of the raw materials, the managers of HTC need to indulge in meetings with the members of Trade Union. This is important for providing the middle class customers with an opportunity to fulfill their passion of buying branded products like Vive Kit. The means of survey and feedbacks need to be adopted for gaining an insight into the customer approaches towards the newly launched Vive Kit. This can be done through the means of social media. Putting the survey and feedback forms on the social networking sites and official websites would increase the supply network of HTC. Constant evaluation of the undertaken steps is needed in order to assess their effectiveness, feasibility and appropriateness in terms of the identified and specified goal of business expansion. References Armstrong, G., Kotler, P., Harker, M., Brennan, R. (2015).Marketing: an introduction. Pearson Education. Ataman, M. B., Van Heerde, H. J., Mela, C. F. (2010). The long-term effect of marketing strategy on brand sales.Journal of business-law,47(5), 866-882. Block, M. (2011). Maslows hierarchy of needs. InEncyclopedia of child behavior and development(pp. 913-915). Springer US. Chikweche, T., Fletcher, R. (2012). Revisiting the marketing mix at the bottom of pyramid (BOP): from theoretical considerations to practical realities.Journal of Consumer Marketing,29(7), 507-520. Gear VR, 2017. Samsung . Retrieved from https://www.samsung.com/global/galaxy/gear-vr/ simplypsychology.org. 2017.Maslow's need theory. Retrieved 23 September 2017, from https://www.simplypsychology.org/maslow.html Gordon, R. (2012). Re-thinking and re-tooling the social marketing mix.Australasian Marketing Journal (AMJ),20(2), 122-126. Khan, M. T. (2014). The concept of'marketing mix'and its elements (a conceptual review paper).International journal of information, business and management,6(2), 95. Lester, D. (2013). Measuring Maslow's hierarchy of needs.Psychological Reports,113(1), 15-17. Lindi?, J., Marques da Silva, C. (2011). Value proposition as a catalyst for a customer focused innovation.Management Decision,49(10), 1694-1708. Osterwalder, A., Pigneur, Y., Bernarda, G., Smith, A. (2014).Value proposition design: How to create products and services customers want. John Wiley Sons. Schiffman, L., O'Cass, A., Paladino, A., Carlson, J. (2013).Consumer behaviour. Pearson Higher Education AU. Solomon, M. R. (2014).Consumer behavior: Buying, auditing, and being(Vol. 10). Upper Saddle River, NJ: Prentice Hall. Vive.com 2017, HTC Vive. Retrieved 22 September 2017, from https://www.vive.com/au/product/ Yasanallah, P., Bidram, V. (2012). Studying the Status of Marketing Mix in Consumer Cooperatives at Ilam Province from Members' Perspectives.American Journal of Industrial and Business Management,2(4), 194.

Pay Motivating Employees

There are many ways to motivate employees to perform highly. Amongst the common approaches used to motivate employees perform well is financial incentive. It is the common belief of employers that high salaries and commissions motivate employees to perform highly.Advertising We will write a custom essay sample on Pay Motivating Employees specifically for you for only $16.05 $11/page Learn More This theory has worked in some cases since pay increases have generated desirable outcomes such as high performance, low turnover rates and high demand in the labor market. When employees perceive that they will be well remunerated for performing in a certain manner, they strive to achieve the targets set by their employers. The theory that ‘pay generates motivation in employees’ originated from the belief that workers go to work so as to earn money. This means that the primary drive for laborers is money since that is the reason why they go to work. W hat has been established so far from past studies is that pay indeed motivates employees to perform highly (Cameron, 2006). Pay does not however guarantee that there will be high performance from all employees since people react differently to stimuli. Whereas some respond favourably to pay packages, others want job security, recognition or improved working conditions. Pay therefore without a doubt motivates employees to perform highly but it does not work a hundred percent on all workers. It cannot be used as the only motivational factor that is applied so as to bring about high performance in the workplace. Pay does not successfully bring about desired outcomes because it shifts focus from the job to money. If employers make it a rule that high performance is rewarded with increased pay, employees perceive that the only reason why they work hard is to receive high income. Hence those employees who are contented with their pay get no reason to put in additional effort in their jobs . Pay as opposed to other sources of motivation is money centered and not job centered. Even though pay increases performance in the short term, it cannot be relied upon for long term sustenance of performance. Eisenberger, Rhoades and Cameron (1999) brought out that if performance reward expectancy is to be relied upon, there must also be high levels of job satisfaction amongst employees. If employees do not show interest in their day to day routines, then only those who desire to remain controlled will respond to pay incentives. This is not desirable for companies that try to instigate employees to practice self leadership.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The motivating effects of the organization’s compensation programs can be measured through a three stage action plan that includes: setting standards, measuring employee performance and giving feedback (Neely, 2001 ). Measuring the effect of a motivational program starts with the setting of objectives and standards against which performance can be compared. Comparing performance vis-a-vis standards should be done regularly and accurately so that the results can be reliable when used for rewarding employees. Giving of feedback is also particularly important during appraisals. Regular feedback ought to be given to employees so that they can be aware of their progress or weaknesses throughout their performance record. When measuring the motivating effects of the organization’s compensation programs, it is important to set challenging standards which are realistic, achievable and related to the company vision. In summary, the role of compensation plans in the motivation of employees is dependent on the nature of job, employees and effectiveness of their implementation. Pay motivates employees if it is used strategically to boost performance related employee appraisals. The motivating effect s of the organization’s compensation programs can be measured through setting standards, measuring employee performance and giving regular feedback. References Cameron, J. (2006). Rewards and intrinsic motivation: resolving the controversy.  Charlotte: Information Age Pub Inc Eisenberger, R., Rhoades, L. Cameron, J. (1999). Does pay for performance increase or decrease perceived self-determination and intrinsic motivation? Journal of Personality and Social Psychology, 77(5): 1026-1040 Neely, A. (2001). Business performance measurement: theory and practice.  Cambridge: Cambridge University Press This essay on Pay Motivating Employees was written and submitted by user Rene Dillard to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Individual Needs in Health Social Care Essays

Individual Needs in Health Social Care Essays Individual Needs in Health Social Care Paper Individual Needs in Health Social Care Paper Essay Topic: Health What is this unit about? The aim of this unit is to the aim of this unit is to enable learners to gain the knowledge, understanding and skills related to meeting individual needs. Knowledge and understanding of the needs of individuals is fundamental to delivering effective health and social care. Assessment of the needs of individuals is necessary before a plan can be developed to meet their needs. In this unit learners will explore different needs in relation to MASLOWS hierarchy of needs and consider how needs may vary at different life stages. The unit requires learners to gather relevant information from an individual to enable identification of the general needs of an individual and to use the information from this assessment to develop a plan to improve the individual’s general health and wellbeing. Scenario: you are a trainee health and social care support worker. You have been asked your supervisor to prepare a presentation detailing an action plan created by you for an individual that will help them to improve their overall health and well being. Learning outcomes: On completion of this unit a learner should: Know everyday needs of individuals. Understand factors that influence the health and needs of individuals. Be able to plan to meet the health and wellbeing needs of an individual. Section 1: p1 outline the everyday needs of individuals All human beings have needs. Some of these needs are universal but others vary according to life stag. According to Abraham Maslow, all individuals have five main hierarchy needs which are required for development and survival. This is shown in his hierarchy of needs. All humans being have physical, intellectual, emotional, social and spiritual needs (pies) that very across P.I.E.S.S Physical needs: Physical aspects are all the needs we have to keep our bodies working as well as they can. Everyone’s bodies are different, there are certain we all share, such as good and nutritious food, clean water, shelter and an unpolluted environment to live in. sometimes we take part in activities which can be harmful to us physically, such as taking drugs, smoking, drinking alcohol excessively or not taking enough exercise. These damage our bodies so that our physical needs are not met. Intellectual needs: this needs develop and keep our brains working as well as possible. They include mental activity and stimulation to keep us motivated and interested, rather than bored. Children meet their intellectual needs by constantly exploring and questioning the world around them. With intellectual achievements and learning throughout our lives to keep our brain active. Emotional needs: emotional needs are met when we experience things that make us feel happy and wanted and give us a positive self-concept, such as affection, good relationships, fulfilment, love and respect. Emotional needs changes as we grow and develop. We need to be able to feel, express and recognise different emotions in order to cope with different situations that arise throughout our lives. Sometimes these emotions can be sad, such as grief after the death of a friend or relative. Social needs: these are the aspect of our life that enables us to develop and enjoy good relationships and friendships with others. It is important that we have family and friends, and belong to groups or are part of a community, in order to have a sense of belonging and to feel that we are accepted. Spiritual needs: spirituality means different things to different people. That will include religion or what providers a sense of personal meaning throughout your life. Spiritual needs are needs based on our personal beliefs and are unique to each of us. Needs in relation to life stages Human have similar needs however needs are very even though at every single stage of life we have the same needs, (as shown in Maslow’s hierarchy). In order to develop positively, the way we fulfil these needs vary according to age. The information below is a summary of our P.I.E.S.S at different life stages. Infants(0 to 3 years) They like to be fed to have everything done for them. To have lots of sleep. Have toys and books help them to learn and develop their cross and fine motor. Children(4 to 10) On this age children are learning to be more independent so they need to have the opportunities to develop independence in all aspect of PIES needs. They are further developing their motor skills and will be playing with more advanced toys. Adolescents(11 to 18) It when you are usually going trough puberty and starting to change into an adult. Friendship needs become particularly important as you form more intimate relationships associated with your sexual and emotional development. Adulthood(19 to 65) Adulthood is the stage of life when most people start to feel that they understand and accept themselves and begin to feel more settled. Adults tend to spend a lot of time making decisions, such as where to live, who to live with, whether to get married and have children, what job to do. In any age group the importance of different health needs changes with time but, because the different stages of adulthood are longer, so adults have more varying needs. Later adulthood (old age) In this age peoples bodies gradually change and start to wear out little. They will have more needs as they get older, such as access to convenient health and leisure facilities. They can retire from work and their children have usually moved out so they can spend their days doing the things they have always to do, provided they remain healthy and have saved for retirement.

A Teen Author Success Story - Interview With Anna Caltabiano

A Teen Author Success Story - Interview With Anna Caltabiano A Refreshing Teen Author Success Story - Interviewing Anna Caltabiano While the good folks of the â€Å"publishing industry† are discussing trends, numbers, and predictions over at the DBW conference, we thought we would give the readers of the Reedsy blog a sneak peek of what the future could actually hold.Today, we interview Anna Caltabiano, a rising teen author who self-published her first novel, All that is Red at the age of 14. She did things her own way because she didn’t know how a book was supposed to be written or published. And guess what? She nailed it. She now has a three-book deal with Hachette, and published the first of those last year.Whatever the future of publishing is, authors will always be at its core. And It is today’s teen author community that will ultimately shape it, a community we don’t know too well†¦Hi Anna, great to have you here. I loved reading your story in The Guardian, particularly because, as a young author, you offer a fresh view on writing and publishing.  Is there something, in y our opinion, that characterises a â€Å"teen author†? Something you, for example, would do very differently from your elder peers?Thanks for having me on the Reedsy blog! One of the things I love the most about being an author my age is that I don’t have to look back on my teenage years to write from that perspective. Adults can look back on their experiences and give advice they wish they had heard when they were our age. Though I’m too young to do that quite yet, I can talk about things as I experience them- the good, the bad, and the plain messy.You said you did things â€Å"your own way† for your first novel, because you didn’t know how you were supposed to do them. Now that you’ve been through the â€Å"traditional† process (signing with a publisher), which â€Å"way† do you prefer? What have been, so far, the pros and cons of having a publisher?At their core, both traditional and self-publishing are actually very similar. Though it sounds obvious, most of the effort is in actually writing the book. The other essential common ingredient of both approaches is that turning a raw story into a finished novel requires seeking out and learning from a network of editors, cover artists, publicists, and proof readers. In a traditional publisher, the network is, for the most part, â€Å"in house,† while in self-publishing, you must take the initiative to create your own network. Both paths are exciting journeys.Usually, when you start from nothing, with no knowledge, and have to learn on your own and do things â€Å"your own way†, you actually end up discovering a smarter way to do it (that’s often how startups are born). Does that apply in your case? Have you done some particularly innovative things that have sparked your success?When I started my writing journey, I clearly did not know anything. I trolled the internet to learn what I could, but I also found experienced writers, publisher s, and various people in the book business who were willing to share their experience and give advice. There are so many â€Å"how-to† books, and so much â€Å"established wisdom† in this industry, but in the end the right path to writing and publishing is not the same for everyone. For example, I live in Northern California, but my initial breakthroughs have tended to come from London, and then later migrating to the US. I am not sure why, but it could be that my writing style and subject matter is closer to English tastes, or it could be that simply through chance, I happened to first find people that believed in my writing in England.You have a three-book deal with your current publisher. But do you see yourself going back to self-publishing after that? Or become a fully hybrid author?It’s really exciting! As for the future, it’s hard to tell even what type of novels I will be working on. I think the most important thing is to work with a team thatâ₠¬â„¢s as excited as you are to tell the story you want to tell, whether that leads you to self-publishing or traditional publishing.How did you self-publish? Did you basically replicate the steps of traditional publishing, hiring several editors and a cover artist?As I mentioned, the basic steps in writing a novel are quite simple, and the same whether done through a traditional publisher or self-publishing. You have to write the novel, go through a very extensive editing process to make the novel as good as possible, make sure that it is carefully proof read, and design an attractive cover. I found great people to help me in all of these areas, but also did much of it myself, so I felt a huge sense of accomplishment when it was all done. When I moved on to traditional publishers for my trilogy, I found I was actually more experienced in all of these aspects of creating a novel because I had to directly manage and participate so deeply in all aspects during the publishing process of my first book.You wrote most of your first novel on your iPad, with some bits of dialogue on your iPhone (texting yourself). This actually reminded me of some  Japanese novels that were written in SMS in the 2000s. We often hear that the future of content consumption is mobile, do you think the future of long-form writing can also be mobile?Definitely! As a reader, when I’m in the middle of a good book and I can’t wait to get home to finish the rest of it, I’ll download a copy on my phone to finish it during a break at school or in line at lunch. For the longest time, my dad thought I was crazy, but even he has started reading poetry on his phone.When I’m writing, I’ll have a quick idea I’ll want to write down before I forget. This often leads to me writing a scene or an entire chapter on my phone. Writing and reading can both be mobile. Whatever feels comfortable. There’s no wrong way to do either.How do you go about the writing p rocess? Do you first plot, outline and define the structure? Or do you dive straight into it?  Though every book is a bit different, I tend to be an outliner. I’ll start with a few characters in mind, and a mental image of what I want the end of the book to leave the reader with. I’ll write starting from the beginning of the story, following my outline, but inevitably my story veers off into an unexpected direction and I change my outline to follow it.You have a particularly awesome website in terms of design. At Reedsy, we have a particular focus (like most startups out there) on design, as we believe it is going to play a much more important role in the future of internet. Is that a belief you share?Thank you! I think design needs to be two things: nice to look at and easy to use. With the internet, I think we’re now more accustomed to everything being at our fingertips. Being user-friendly is a given. In our current world, I think the way to stand out from the pack is to create something visually attractive that draws in the user.Many authors, even established ones, still really struggle with social media. Teen authors have the chance to have grown up with those, understand them, etc. Do you think it is possible to be a successful author today without having a strong social media presence? Would you have any tips for other authors for that?Social media helps me connect with my readers. I hear first hand what they liked or didn’t like about my latest story, and I find myself taking that into account when I’m writing my next work. Though I’ve grown up with social media and almost everyone I know uses some form of it, I still find social media challenging at times. It can be hard to find a balance between maintaining some amount of privacy and being â€Å"with it† in terms of social media use. My biggest tip is to try to show your best self on social media, rather than try to promote your book. People follow y ou on Twitter and Facebook to learn more about you and to hopefully interact with you. If they wanted to read a summary of your book, they would look elsewhere.Finally, because it’s that time in the year, what do you wish for yourself in 2015? And for the publishing industry as a whole?That’s a hard question! With the upcoming adventure of publishing two books this summer in two different countries and finally graduating high school, I know I’ll be learning and doing a lot of new things. I hope I’ll be able to use what I’ve learned in 2014 and apply some of that this coming year. As for the publishing industry, I hope it keeps taking new changes in stride, as everything needs to continue to evolve to stay with the times.Thanks a lot for your time, Anna!You can find Anna and Reedsy on Twitter:  @caltabiano_anna  and @ReedsyHQCredit for the Japanese cell phone novel photograph goes to Tyler ShoresDo you, too, think that indie and traditional publ ishing are actually pretty much similar? Or that the future of writing is mobile? Do leave us your opinion, or any question for Anna, in the comments below!

Business Culture of Albania and Italy Essay Example | Topics and Well Written Essays - 1500 words

Business Culture of Albania and Italy - Essay Example The researcher states that language is regarded as an important part of business dealings as communication is the backbone of successful business negotiations. In case of Albania, it has been found that most government officials speak English, but the same thing cannot be said about people employed in the private sector. Use of interpreters or translators is a commonplace business practice. In case of Italy, English is also the most commonly spoken foreign language. In Italy, use of body language is as important as hand gestures and personal contacts are as dominant as speech. Avoiding excessive use of body language may be considered as an unfriendly attitude, which can, therefore, harm the business. This practice is not found in Albania. Given the difference in the official language of the two countries, need for translators will be inevitable to carry business if English is not spoken. In this case, it can be stated that misinterpretations of non-verbal gestures like, hand gestures , may act as severe intercultural communication barrier between Italy and Albania as Italians tend to use more such gestures. It has been observed that time is not considered to be an important parameter in case of Albania, but is quite important for Italy. Punctuality has been regarded as an important parameter in inter-cultural business. This is because punctuality has the notable influence on the social behavior. It is noticed that Italians expect a formal explanation if there is any delay in the business meeting and such a habit is condemnable. However, the social attitude of people in Albania makes punctuality an obsolete requirement. So, in case of business dealings between companies of these countries, it is important for the Albanians to be more particular about the time factor. Â  

Motivation and Performance Factors for Bombay Palace Essay

Motivation and Performance Factors for Bombay Palace - Essay Example ey feel with appraisal at work.questionaires were used so as to get feedback of the employees and this made the study less cumbersome for the researcher. This is important to note that was conducted in a span of month month so as to ensure that each and every staff was interviewed. Motivation of employee is one key issue that is facing every organization. It is the responsibility of every leader in an organisation to ensure employees are motivated and also create a very conducive environment for them in the workplace (Koontz 1993). Though an employee may be capable to perform his/her job description without motivation every human being needs to feel a little bit of appreciation as this will spur inner urge to work well in an organisation. It is this role of a leader that he has to ensure that his workforce is motivated and if not he should identify a strategy on how to make them moretivated as this will enable him achieve his organisational goals(Marginson 1986). Motivation cannot be understated as it is always a key ingredient to help an organisation in achieving its goals. Issuinig of instructions that are well and clealy friendly (Marginson 1986). A manager first has to understand he has the right team and after it is when he should ensure that the team is motivated so as to keep the focus on objective goals.The role to motivate employees depends on very different dimesions and they cannot be for one department like the human resource but the whole organisation.Itis thus important to understand all humans have different needs and may be motivated in different ways but one of the most important task is to ensure it is done (Alous 2002). Strong needs in directing and satisfying latent needs in employees harness them in a manner that is functional for the organization. For motivation to be successfully implemented the factors that trigger motivation should be identified and analysed properly.The goal here is to identify the causes of motivation and not the

Joseph Stalin :: Essays Papers

Joseph Stalin Joseph Stalin was born on Dec. 21, 1876 in Gori, Georgia. Joseph Stalin’s original name was Iosef Vissaronovich Ozhungashvili, but he adopted his name to Joseph Stalin which means, â€Å"man of steel† (World Book 825). His fathers’ name was Vissarion Ivanovich Djugashvili. His father was a drunk and had a job being a shoemaker. Since Joseph’s father didn’t make much money Joseph’s mom, Ekaterina Gleladaz Djugaholi, who became a washerwoman to help support her family. The Stalin’s lived in a small shack, and Joseph was an only child. When Joseph was a young boy Stalin’s father left him. In 1888 Stalin was sent to a church school in Gori (World Book 825). He spent 5 years there and was a brilliant student. Stalin received a scholarship at the religious seminary in Tbilisi. To a surprise, Stalin entered his school to study priesthood in the Georgian Orthodox Church in the year 1984 (World Book 825). In 1898, Stalin joined a secret Marxist revolutionary group (World Book 825). Stalin got expelled from his school for not appearing for an examination. Stalin joined a Marxist movement and when it split in 1903, he went with more radical Bolsheviks. In 1904 he married but his wife died of tuberculosis after 3 years (World Book 825). He married again in 1919, but his 2nd wife killed herself, leaving Stalin with a son and daughter (World Book 825). The son became an alcoholic and his daughter defected to the United States During Stalin’s underground career he was arrested at least 6 times and spent time as an exile in Siberia. He engaged in robbery, murder, labor agitation, and served as editor and writer for various newspapers, where he first used the name â€Å"Stalin† (The Red Tsar http.go2net.com). When the communist come to power in 1922 Stalin got a great position as a Secretary General of Communist Party (World Book 826). Before Lenin died he thought that Stalin was too vicious of a man. Lenin wrote a note to Leon Trotsky to succeed him. Stalin had Lenin’s note suppressed and joined with two other members the Poliboro to defeat Trotsky. Then Stalin turned on the two who helped him defeat Trotsky and by 1928 had made himself the dictator of the Soviet Union (The Red Tsar http.go2net.com). With power in his hand Stalin began his â€Å"five-year plan.† The plan was to industrialize the country, a program that went hand-in-hand with a plan to bring all agriculture under state country.

Logistic: Inventory and Total Logistics Cost

Supply chain is a network of logistic systems. Logistics concerns one company's system. Supply chain includes different companies. E. G. Dell computer – the logistics is Just their company but the supply chain includes all the part suppliers. Their logistics system is a part of dells supply chain. It includes also the retailers and supplier. Other company's logistics included in Dell's supply chain. Logistics is an early version of the supply chain. Logistics originated in the US military. Flow of cargo (people, weapon in war is logistics. ) Organizing a course/seminar – logistics needed for success.Today all the successful companies find their competitiveness from logistics, not from the product itself. E. G. Walter (retailer, wholesaler, supermarket chain) – their competitive edge comes from logistics. They are not selling anything different from others. They have a superior logistics system. Logistics make them succeed. Dell also, service is good, price attrac tive – success comes from logistics. Another definition people define logistics differently but they mean the same thing. Slide Logistics/Concept 4 Instead of saying process, they say optimization, etc. Process of location.Says movement and storage of resources instead of saying goods/services and information. They call logistic activities economic activities. Transport is one of then, port services, production, storage, distribution, etc. – take place bet. The point of origin and point of destination and consumption. Logistics is about the 5 RSI. What are the 5 RSI? Logistics is about getting right goods at right place at right time in right form at right price. Military is really about this. In commercial entities we emphasize on the price a lot. This is also the definition of logistics.Right goods, right in quality in correct quantity. Different level of logistics. In-bound, out-bound logistics. Logistics of production (table, book, car, etc. ), there are two levels of logistics. Logistics within the production process – in the factory. How do you optimize the production within the factory? We call this operational logistics or workers together. How do you put temporary storage along the assembly line? All this is logistics. E. G. WHIM library – lack of space. How to maximize space? Library space layout. It's about logistics. Different factories have different layouts – this is logistics.We are interested in logistics before the production starts. The cargo coming into the factory and when the production is finished, the cargo moving out to the next step – all towards the final consumption. This is what we call in-bound and out-bound logistics. This is what we are interested in. Maritime transport takes part in inbound and out-bound logistics than for production logistics. We are interested in how to move material to production and from production to consumers. When we try to understand logistics, we look at some lo gistics questions for example a typical question is about where to find the raw material needed.Raw material may be in different places. Some places might have different quality and prices. The difference between that place and the production might be different and therefore remonstration time and cost might be different. Where to find energy supply? Labor supply? Should you move your factory offshore to benefit cheap labor? If you do that be careful that higher prices might have to be paid on other services for example transportation. Where to set up production bases? In shipping, where should the port be located? Where to build warehouse and distribution centre. E. . Toyota car has their distribution centre for the Nordic countries at the port of Mammal. Before that they had centre in all the countries. So many distribution centre, different logistics cost than if there is a concentration of activities. Where to have branch organizations? The answers consider a lot of activities i ncluding transportation. We are in maritime transport so we are affected by the customers decision. Other types of logistics questions for ex. How to transport from A to B and choice of transport mode – air sea, road. Egg. Oslo to Mammal – road, sea. Air, rail.Different modes of transport have different logistics implications. Ex field trips – logistics question, how to transport students – sea (too long), air, road, rail. How to transport container? Hub and spoke – benefit from economies of scale. More cargo handling costs. The best solution must be a logistics solution. Best way to transport cargo from A to B. Flow and storage from point of origin to destination to comply with customers' requirement. Moving from A to B different options – different solution. When should transport start – how long should it take. Route? Storage? How, when needed?Mat of cargo to be transported at one time? Economies of scale? Packing needed? Logistics is everywhere. Farmer from southern Sweden – buy fertilizer in Sweden, buy from Germany (expensive land transport), buy from US where its much cheaper, but he has to pay more transportation cost. Where to find the material? Emphasis is on maritime transport – movement of goods. Shipping co. Transport goods – need info to do so. Port and shipping concerned with flow and storage of goods. October 28, 2008 Session 2 Slide Logistics/Concept 9 There always has to be a logistics concept. And a logistics concept is what?It's about total cost concept. This is the most important concept. It looks easy but total cost concept is not always observed, so people make mistakes as a result. It is a customer service requirement. Logistics concept is also about outsourcing, integration, global about concept, it is also about processes. The processes we call drivers. It drives the logistics process. It can't all be about concept. It has to be something tangible. Logistics is abou t processes. We are doing these everyday, ex. Manufacturing and transportation, distribution, inventory control, procurement.These are all activities, but the difference between these and logistics are that we are doing these in an integrated manner under the concept of logistics. So we have the concept and the drivers. The difference between these activities and logistics, we are doing them under the total cost and the customer service concept, so this is relatively new. Third is IT. We call IT enablers – that enables us to do the processes under the concept of logistics. Sometimes we can't do the processes (drivers) without IT. Ex. Dell computers. They obtained their competitive edge from logistics.Logistics means to get a computer from the production to the customers without any retailers. No middlemen. Order online, design own computer. The aim of logistics is to minimize the total cost. Can only do this with IT tools. So the three components have to come together using t he IT tools. We need to understand the role of IT in the whole process. Ex. Just in Time system. This is Inventory control under the concept of egoistic using information technology. The 3 components have to work together. How do we take all these functions (MFC, transportation, distribution, warehousing, etc. In an integrated manner under the concept of logistics using IT tools. Ex. Individual delivery. Concept is to minimize total cost. Total cost is manufacturing, transport, didst. , etc. How do we minimize that? Use IT. Dell used IT to find out that their total cost will be minimized if they cut out the middle man. IT enables the cutting out of the middle man. Good online service. Shipping line is not making anything – it is a part of transport. Shipping companies as a company have logistics problems also. Shipping has a double role to play.Shipping is a part of the logistics chain of a customer, but at the same time they have their own logistics problem. Shipping's logis tics problems include arranging bunkers, choosing port of call, types of service to provide, empty container management, repositioning of containers, terminal logistics, fleet logistics, agency logistics, but shipping as a service provider is part of the logistics of customers. Ex. KEA – furniture maker – shipping important. Shipping has a double role to play. Ex. Wimp's logistics service. Logistics in third world countries is not good enough. Read World Bank Report.The three components of logistics are important. Dell manages their total cost through logistics, so does Wall-Mart. All the processes have to be IT enabled. Control-implementation-control. HP has a fixed model on the shelf. Dell, make your own – different customer service. One is enabled by IT. Logistics has 3 components – concept, process, IT. Slide logistics/Concept 10 Supply chain – different sources to choose from. Take one then the next step and the next. This is the flow of cargo from origin to destination – the flow of information from user to origin. Information flow and cargo flow go in opposite directions.Ex. Dell – the information goes from the customer to Dell and the cargo from Dell to the customer. How will the producer know what kind of products the consumer will need? The consumer will have to tell. Opposite directions. Dell transport one computer to each customer so the customer pays more for transportation, but other costs like the shops and overhead related costs do not exist. If we compare this cost with the cost is very important. Total cost concept can be better understood by looking at slide Logistics/Concept 1 1 . This is a Total cost in Logistics and Supply Chain System.Marketing and logistics are closely related. This picture is very true. What is marketing? It is about the 4 As – product, price, promotion, place. So in this marketing there is one component about place which is about logistics. In the logistics about the place and the customer service (where the customer wants the cargo to be) and there are other cost elements. Ex. Related to place, transport cost has to be incurred – also warehousing cost, flow and storage. Other costs like inventory costs will be incurred. What is the difference between inventory cost and warehousing cost – inventory cost for keeping goods in stock).Inventory cost is the value of the goods. Books for new WHIM students – cost of book (inventory) plus storage (warehousing). Processing and information cost – each time we order, we have to follow procedure, fill in forms, etc. Processing cost can be high. Egg. When we are transporting our boxes home, have to have bill of lading. This has a cost (processing and information cost). Lot quantity cost – economies of scale. Purchasing/transporting/buying a big amount and will benefit from economies of scale, this is called lot quantities. Put all these 5 elements together and this is total cost.The objective of logistics is not to optimize a cost element, it's not to minimize a cost element, but rather to optimize the total cost and minimize the total cost. Minimize the total cost – this is what logistics is all about. This is easier said than done. KIT, the idea is to reduce the inventory cost to zero if possible. At the same time warehousing cost is being reduced – this is a good system. What other cost will be affected – transport cost. All these cost elements are interrelated and interdependent. So interaction and interdependence are also important.Change of inventory will affect transport cost, lot quantity cost, etc. KIT system for example – daily consumption of rice. Let's say we eat egg of rice each time. Based on KIT, each time we need rice, we should buy only egg. Do we do this? No, then against KIT principle. We buy 200 kilos – 2 cost occur – inventory cost and the money spent on the rice cannot be used (capit al tied up – cash flow problem). If this money was put in the bank it would generate some interest. Where is the rice put? The place occupied by the rice can't be used for something else.In production if you buy too much to get economies of scale from purchasing, we'll incur a high inventory cost. If we are not buying kilos, we buy a quantity in between – say 2 kilo. Optimal total cost. If we buy egg each time inventory cost is zero – have to buy each time we need to cost. That is time and transport cost. Lot quantity cost will change as there is no savings to be got through economies of scale. And each time we buy there are other costs like information and processing (maybe not in the case of rice, but generally). Put all these costs together, and find a good place in between. We do this by Cost Trade-off.Cost Trade Off Slide Ex. Manufacturing activity involves making projectors in Mammal, Sweden and need to supply them to the rest of Europe. No distribution ce ntre, or warehouses, or depots, o because we cover the entire Europe, each time we have an order from someplace in Europe, we pack the projector and send it off. What do we save – inventory, we do not keep inventory. What do we have to spend more – transportation cost will be very expensive. We therefore have to find out if we have a warehouse somewhere in them from Mammal to the customer; we send it from that storage which is closer so we save transportation cost.How many such warehouses we need to cover Europe? It depends on the elements: transport, inventory, lot quantity, warehouse costs. In optimizing all these costs together is a logistics decision. Ex. In the case of the depots, we might have 8, 10, 12 to cover the entire Europe. What cost elements we have in the case of the distribution of projectors in Europe. First the systems cost, the processing and information cost. When there is a centre there needs to be a computer system, a financial system, etc. If the re is no centre, the system cost is very low.The more centre, the higher the system cost and this is a storage cost. If there is only one storage at the headquarters in Mammal, the cost would be relatively low. As the numbers of depots are being increased the storage cost will be very high. Inventory cost – more depots, more stock – higher inventory cost. Trucking cost – tree has trunk and branches. Trunk means main transportation, branches mean local delivery. Transport cargo from production to main distribution centre = trunk transport and then from distribution centre to each individual apartments = local delivery.Trucking cost – the more centre, the more trucking cost. If there are no depots, each time to ship from mammal to each individual location will be very high. The more depots, the less the local delivery cost will be. The total distribution cost is the addition of all cost, this is what we call total logistics cost. When we have the total logi stics cost curve it corresponds to the number 8 meaning there should be eight distribution centre. So this is the solution – 8 centre. As costs change, oil, etc, the optimal numbers of centre will change. Its not static, its dynamic (the Total Didst. Curve).Logistics – one has to plan, implement, control. If the individual costs are changed then total cost will be different – high/low. E. G. If the interest becomes low – inventory cost will be affected as the capital will become cheap. If oil cost increase, interest rate decrease – could end up with more centre which means saving more rainspout cost, esp.. Local delivery cost. Transport cost in total will be less. Inventory cost is dependent on interest rates. May have 9/10 depots. # of depots depend on cost elements. Cost trade off is important. With depots total cost is lower, so this will save cost.Having depot is a cost but the cost is lower than not to have them. E. G. KEA used to rent warehou ses, now they build – benefit of depreciation. Next Slide Logistics cost in the USA Logistics cost include transportation cost, inventory, warehousing, distributing, etc. How much logistics cost people pay as a percentage of a country GAP – 10% in the US. Inventory cost increase faster than the transportation cost bet. 1980 and 2005- why? Better inventory control, interest rate lower so inventory cost lower. Interest was low in the rest of the world until about 2005. Deflation = lower inventory cost.In other countries this percentage is much higher. China – 18% of GAP spent on logistics (used to be 20%). China is more representative of developing countries. So in developing countries logistics systems are not as efficient as those in industrialized countries. 9. 5% is similar in Europe and Japan (COED countries). In developing countries it's much higher. Includes all logistics cost element – transport, inventory, etc. – big room for improvement. Ne xt slide Customer service is another concept. Customer service is the output of logistic based, performance-based, philosophy based.Activity based e. G. After sales service, marketing, public relations. Performance based – what is the standard? Ex. Dell computer is performance based, delivered in 48 hours – performance-based customer service. Can be measured. Ex. , ports – waiting time for ships – rush. Philosophy based on what customers require is the customer service – according to customers taste – before, during, and after transaction. What is transaction? Buy goods, pay. Customer service can take place before this, during, after. Changes in CSS level affect total logistics cost. Next slide CSS High, Low.Cost Low/High – the higher the customer service level, the higher the cost. No ship should wait in port for more than 3 hours. This will cost a lot of money – will have to build more berths. Define customer service level. T ry to minimize total cost based on this pre-condition. Why CSS level increase and inventory level affected. The higher the CSS, the higher the inventory level. Goal: increased SSL, so high inventory level. It's a decision the company makes – customer service level is very important. (Refers to graph on the right) Try to find a way to push the line by introducing a better way of production e. . Using IT, new production method. Reduce cost but still satisfy goal – IT, use better system. Next slide: industry norm, etc. Customer's response to stock out. Is a risk being run of losing the customer? All different ways to define the customer service level. KIT System Developed by Toyota. Called the Kanata system. When a container of parts is chosen to be used from inbound stockinet in-out in-out This is the production. Eng the assembly line how do you get different stages to work together in harmony. The system has two cards. KIT works with 2 cards – the move cards and the production cards. Hen you see the move card, time to move the container or the other card, time to produce. Work centre 1 the card moves along the production line from one work centre to the next. Toyota manage to have minimum inventory along the assembly line. They have one container of part. Cards are turning around and the parts are being moved from one centre to another. For logistics a better understanding of Just in time is very important. 9 Cot 2008 There are two circulations of cards. How do the 2 circulations make the KIT system work? Why does it work? Key elements: to reduce inventory therefore reduces the capital tied up in inventory.Planning, staff commitment including suppliers, suppliers' ability to meet the demand. Some inventory is kept because there is a container. One piece at a time is being used from the container so the rest must be inventory. What is the average inventory? What is the customer requirement? It's the size of the container. The container is fu ll – how big is the container. How is the size of the container defined? The size of the container is planned based on production. Supply 20 units at the beginning and then it's consumed and a new container comes. The container is consumed during a cycle. The cycle is the time needed.The average inventory is a half of the container what ever the amount it contains. Typical KIT, there should be no inventory so why is inventory kept? When we need egg rice why don't we get exactly that? Other costs would increase too much. KIT – to keep as little inventory as possible. The size of the container depends on what? Transportation two don't match then the size of the container needs to be changed. If the transport sakes more time then increase the size of the container and vice versa. Transport time important. Volvo had KIT between Gent and Mammal. How much inventory should be in the Volvo factory in inventory?A lot. Why? Engine parts are made in Sweden to be used in Belgium. This transport takes one week by ship. As it takes one week, there should at least be spare parts for one week. Toyota has KIT. In the city of Toyota in Japan within 30 kilometers of the factory all Toyota parts are made there. This is the perfect KIT system. KIT emphasizes the reliability of the transport system. The two containers must have the same matching size. If parts can't be produced in time, the cart must be moved earlier. At the moment one container is taken to the in stock point, another container load of part should be produced.Suppose the production takes more time than when one cart comes back? Egg. If production takes 20 hours, parts can be made in 10 hrs. The time information is sent – information flow is the key. Plan to know how long production will take. In Japan, transport is guaranteed (Toyota). What is supplier commitment? Shortcomings of the KIT system? Now we assume we only need 20 parts in 10 hours, how about if the demand change and we need 30 parts in 10 hours. If the speed of production is variable the whole system is challenged. If the demand is certain/flexed then it can be planned – production rate and transportation.But what if production rate changes? This is a challenge for some of the production down the line that may need more time and material which might have to come from far. Not easy to adjust production. Shortcomings: Does only one supplier have to be used with KIT? No, Honda uses more than one supplier. In KIT, anything that goes wrong will collapse the entire system. In KIT the entire chain has to be KIT, it can't be at only one stage of the production. If not it forces other suppliers downs the line to keep inventory. KIT of big companies push inventory down the line if the don't plan effectively.Because smaller suppliers want to satisfy big companies, they are forced to keep inventory. KIT has to be along the entire supply chain. KIT may be only at the very large suppliers who push the inventory down the line to smaller suppliers. Toyota case: 1/52 weeks car production stopped because of a fire at one supplier – ripple effect. The decision of Toyota to do nothing was based on the total minimum cost of they did various studies. CCITT Case: The reliability of transportation and the uncertainty factors make logistics system key. The importance of information. Logistics concept drivers enablers, under total cost and customer level.KIT will never work without IT. Everything works together with IT supporting the processes under total cost and customer level. The process, concept or IT cannot work separately. Information is critical for success as well as the reliability of demand. Forecast and planning important to know when demand change. Transportation is also important for this system. If the transport distance is long, the container has to be big. The size of the container is influenced by time (transport). Transport is via sea – only use air in case of emergency. If transport takes a long time or is unreliable then more inventory needs to be kept.Gent is the biggest Volvo manufacturer. Terrines transport the parts from Sweden to Belgium. The shorter the interval of the shipping service, the lower the level of inventory required. This can make the transport expensive. So it's the total cost that is important that will Supply chain 2 definitions (see slide): it's a network, not port to port. In logistics there is no procurement. The 2 key words in logistics are flow and storage. Supply chain includes manufacture. Transformation = manufacturing. 1st law of dynamics – don't create anything, only change the form. Supply chain includes much more than logistics.Logistics narrowly defined. Supply chain is broader. Procurement also concerned with about origin of the goods. Optimization Integration Collaboration Synchronization Optimization – optimize one stage, the entire thing is not optimized so integration has to take place then consol idation then synchronization (concerted manner, happening in the same time). Relationship along supply chain. Start from optimization to synchronization. The idea of supply chain is relatively recent compared to logistics. 1960/ass people start to talk about total cost. E. G. In stage one warehousing and transport are separate functions.Management focus was operations performance. No integration. Logistics integrated both to see how they can be optimized. This is called total cost management. So the focus changed to optimizing total cost and customer service. Customer service put together with cost. Organization design is a centralized function. 80,s integrated logistics function. This moved today to supply chain MGM. Put logistics together to get supply chain. Supply chain broader than logistics. Stage 1 -separately treated, not optimized. Optimization done within the company. Optimize internal functions – transportation and inventory.Intra company and intra functional. This function is a logistics function. The logistics function today is moving still in the company but inter functional. Everything in the company put together – integration. Toyota inter company – higher level of integration. Toyota owns the supplier – easier to do KIT. Companies are integrated supply chain – Inter company and inter functional. Dell and their suppliers are integrated. Also Wall-Mart. The producers don't take orders from Wall-Mart – the ‘cards' in KIT comes from individual supermarkets. Producers can check storage level of Wall-Mart outlets.Everything is totally integrated. No personal intervention to place order etc. The system is integrated – good supply chain – inter company. Next Slide From fragmented logistics to integrated supply chain. In the fist stage do one function at a time – inventory or warehouse or transport. In the later stage, intra functional – the whole function optimized. From fragm ented logistics to integrated SCM. Suppliers, manufacturer, distributor, retailer, customer are all integrated with he other functions in the company and go to the next stage you integrate between the functions in the companies and between the companies.This is interception and will become in the true sense a supply chain. Supply chain broader today than the logistics. SC have to work with other companies. To satisfy your customers require more than one company: need supplier, manufacturer, distributor, and retailer. E. G. Markers – their system integrated with some of their key customers – key client management. Copra's definition of supply chain. Within an organization there is a supply chain. Egg. WHOM, teaching, supply services, library, canteen, etc. Al depots. Work together to satisfy customer. SC decisions – have to have supply chain design and strategy.Strategic level, medium term, short term – operational, daily and based on the company's competi tive strategy. Michael porter: define competitive strategy in terms of product differentiation or cost cutting leadership. How to achieve strategy: SC strategy. Balance bet. Efficiency and responsiveness. How to respond to demand? Efficiency includes cost-effectiveness, I. E. Cheap. Fast response – this is provided at a cost. Efficiency might compromise cost. Decision making is from lower level to higher. Many competitive strategies come from SC strategy. Wall-Mart is from logistics.Dell is from Supply chain Beer game: Once demand is variable SC difficult to maintain. KIT difficult to maintain. Long time to reach an equilibrium. In the end have to keep large inventory. Once demand is unstable KIT is not suitable. SC Design. Planning is important. SC design is about planning. When suppliers design their supply chain maritime and port services is a part of that. So mapping is important. Stockholders point is storage. Horizontal line represents move. When it stops – verti cal lines = storage or waiting. Egg. BBC container tracking. This is SC mapping.Horizontal line is lead-time (time from production centre 1 to production centre 2). Lead time depends on inventory to determine when order is to be placed. SC starts from the fiber and end with the clothes on the shelf. Through this we see pipeline length and volume. E. G, coca cola. Postponement of safety stock What is postponement? H and Ezra – they use postponement principle. Clothes must be in fashion. Don't know faction of 09. Try to postpone as much as possible the manufacturing time. Forecast, ii, postpone. Dell also uses this strategy. Don't develop their machines until last moment.Can use the latest technology and the price gets cheaper. Anticipate time needed and kind of product needed. Decision is postponed to the last moment. Postponement principle can reduce stock. Has bearing on transport too. Better information flow will impact SC. Next slide Sometimes for material flow speed might not be appreciated. Transport is used as storage to adjust transport time to match with performance. Sometimes it's because of the price. E. G. Iron ore in China, there is too much now. Information speed is always good but for material sometimes it needs to be fast and other times not so fast.Compression of lead-time in manufacturing activity. Supply chain map – length (vertical) volume (horizontal) – try to compress it to see possibilities to reduce some of the variable. Ocean transport can't be adjusted as speed can't be reduced. SC design. Lead-time is transport. Port of Amsterdam case study summary Market research – likelihood to attract new carriers / guarantee – balance and supply (elasticity). When port built no congestion in Europe – more port than ships. Impossible to get firm commitment – plenty choices. More supply than demand. Demand price inelastic. Shipping companies never give guarantees.Optimization, integration, collaborati on, synchronization. Have to synchronize. Increase speed of one operations but the speed of other things remained unchanged. No synchronization. If the discharged boxes cannot be moved this is a logistics problem. The concept of logistics: most important – total cost. Port of Amsterdam forgot total cost. Typical failure case that should never have been done. Restricted berths – bigger ships cannot fit in today – size is restrictive. How wide and long should ship be. (Panama Canal has size restriction and is thus a constraint – ships in the Asian Logistic: Inventory and Total Logistics Cost Supply chain is a network of logistic systems. Logistics concerns one company's system. Supply chain includes different companies. E. G. Dell computer – the logistics is Just their company but the supply chain includes all the part suppliers. Their logistics system is a part of dells supply chain. It includes also the retailers and supplier. Other company's logistics included in Dell's supply chain. Logistics is an early version of the supply chain. Logistics originated in the US military. Flow of cargo (people, weapon in war is logistics. ) Organizing a course/seminar – logistics needed for success.Today all the successful companies find their competitiveness from logistics, not from the product itself. E. G. Walter (retailer, wholesaler, supermarket chain) – their competitive edge comes from logistics. They are not selling anything different from others. They have a superior logistics system. Logistics make them succeed. Dell also, service is good, price attrac tive – success comes from logistics. Another definition people define logistics differently but they mean the same thing. Slide Logistics/Concept 4 Instead of saying process, they say optimization, etc. Process of location.Says movement and storage of resources instead of saying goods/services and information. They call logistic activities economic activities. Transport is one of then, port services, production, storage, distribution, etc. – take place bet. The point of origin and point of destination and consumption. Logistics is about the 5 RSI. What are the 5 RSI? Logistics is about getting right goods at right place at right time in right form at right price. Military is really about this. In commercial entities we emphasize on the price a lot. This is also the definition of logistics.Right goods, right in quality in correct quantity. Different level of logistics. In-bound, out-bound logistics. Logistics of production (table, book, car, etc. ), there are two levels of logistics. Logistics within the production process – in the factory. How do you optimize the production within the factory? We call this operational logistics or workers together. How do you put temporary storage along the assembly line? All this is logistics. E. G. WHIM library – lack of space. How to maximize space? Library space layout. It's about logistics. Different factories have different layouts – this is logistics.We are interested in logistics before the production starts. The cargo coming into the factory and when the production is finished, the cargo moving out to the next step – all towards the final consumption. This is what we call in-bound and out-bound logistics. This is what we are interested in. Maritime transport takes part in inbound and out-bound logistics than for production logistics. We are interested in how to move material to production and from production to consumers. When we try to understand logistics, we look at some lo gistics questions for example a typical question is about where to find the raw material needed.Raw material may be in different places. Some places might have different quality and prices. The difference between that place and the production might be different and therefore remonstration time and cost might be different. Where to find energy supply? Labor supply? Should you move your factory offshore to benefit cheap labor? If you do that be careful that higher prices might have to be paid on other services for example transportation. Where to set up production bases? In shipping, where should the port be located? Where to build warehouse and distribution centre. E. . Toyota car has their distribution centre for the Nordic countries at the port of Mammal. Before that they had centre in all the countries. So many distribution centre, different logistics cost than if there is a concentration of activities. Where to have branch organizations? The answers consider a lot of activities i ncluding transportation. We are in maritime transport so we are affected by the customers decision. Other types of logistics questions for ex. How to transport from A to B and choice of transport mode – air sea, road. Egg. Oslo to Mammal – road, sea. Air, rail.Different modes of transport have different logistics implications. Ex field trips – logistics question, how to transport students – sea (too long), air, road, rail. How to transport container? Hub and spoke – benefit from economies of scale. More cargo handling costs. The best solution must be a logistics solution. Best way to transport cargo from A to B. Flow and storage from point of origin to destination to comply with customers' requirement. Moving from A to B different options – different solution. When should transport start – how long should it take. Route? Storage? How, when needed?Mat of cargo to be transported at one time? Economies of scale? Packing needed? Logistics is everywhere. Farmer from southern Sweden – buy fertilizer in Sweden, buy from Germany (expensive land transport), buy from US where its much cheaper, but he has to pay more transportation cost. Where to find the material? Emphasis is on maritime transport – movement of goods. Shipping co. Transport goods – need info to do so. Port and shipping concerned with flow and storage of goods. October 28, 2008 Session 2 Slide Logistics/Concept 9 There always has to be a logistics concept. And a logistics concept is what?It's about total cost concept. This is the most important concept. It looks easy but total cost concept is not always observed, so people make mistakes as a result. It is a customer service requirement. Logistics concept is also about outsourcing, integration, global about concept, it is also about processes. The processes we call drivers. It drives the logistics process. It can't all be about concept. It has to be something tangible. Logistics is abou t processes. We are doing these everyday, ex. Manufacturing and transportation, distribution, inventory control, procurement.These are all activities, but the difference between these and logistics are that we are doing these in an integrated manner under the concept of logistics. So we have the concept and the drivers. The difference between these activities and logistics, we are doing them under the total cost and the customer service concept, so this is relatively new. Third is IT. We call IT enablers – that enables us to do the processes under the concept of logistics. Sometimes we can't do the processes (drivers) without IT. Ex. Dell computers. They obtained their competitive edge from logistics.Logistics means to get a computer from the production to the customers without any retailers. No middlemen. Order online, design own computer. The aim of logistics is to minimize the total cost. Can only do this with IT tools. So the three components have to come together using t he IT tools. We need to understand the role of IT in the whole process. Ex. Just in Time system. This is Inventory control under the concept of egoistic using information technology. The 3 components have to work together. How do we take all these functions (MFC, transportation, distribution, warehousing, etc. In an integrated manner under the concept of logistics using IT tools. Ex. Individual delivery. Concept is to minimize total cost. Total cost is manufacturing, transport, didst. , etc. How do we minimize that? Use IT. Dell used IT to find out that their total cost will be minimized if they cut out the middle man. IT enables the cutting out of the middle man. Good online service. Shipping line is not making anything – it is a part of transport. Shipping companies as a company have logistics problems also. Shipping has a double role to play.Shipping is a part of the logistics chain of a customer, but at the same time they have their own logistics problem. Shipping's logis tics problems include arranging bunkers, choosing port of call, types of service to provide, empty container management, repositioning of containers, terminal logistics, fleet logistics, agency logistics, but shipping as a service provider is part of the logistics of customers. Ex. KEA – furniture maker – shipping important. Shipping has a double role to play. Ex. Wimp's logistics service. Logistics in third world countries is not good enough. Read World Bank Report.The three components of logistics are important. Dell manages their total cost through logistics, so does Wall-Mart. All the processes have to be IT enabled. Control-implementation-control. HP has a fixed model on the shelf. Dell, make your own – different customer service. One is enabled by IT. Logistics has 3 components – concept, process, IT. Slide logistics/Concept 10 Supply chain – different sources to choose from. Take one then the next step and the next. This is the flow of cargo from origin to destination – the flow of information from user to origin. Information flow and cargo flow go in opposite directions.Ex. Dell – the information goes from the customer to Dell and the cargo from Dell to the customer. How will the producer know what kind of products the consumer will need? The consumer will have to tell. Opposite directions. Dell transport one computer to each customer so the customer pays more for transportation, but other costs like the shops and overhead related costs do not exist. If we compare this cost with the cost is very important. Total cost concept can be better understood by looking at slide Logistics/Concept 1 1 . This is a Total cost in Logistics and Supply Chain System.Marketing and logistics are closely related. This picture is very true. What is marketing? It is about the 4 As – product, price, promotion, place. So in this marketing there is one component about place which is about logistics. In the logistics about the place and the customer service (where the customer wants the cargo to be) and there are other cost elements. Ex. Related to place, transport cost has to be incurred – also warehousing cost, flow and storage. Other costs like inventory costs will be incurred. What is the difference between inventory cost and warehousing cost – inventory cost for keeping goods in stock).Inventory cost is the value of the goods. Books for new WHIM students – cost of book (inventory) plus storage (warehousing). Processing and information cost – each time we order, we have to follow procedure, fill in forms, etc. Processing cost can be high. Egg. When we are transporting our boxes home, have to have bill of lading. This has a cost (processing and information cost). Lot quantity cost – economies of scale. Purchasing/transporting/buying a big amount and will benefit from economies of scale, this is called lot quantities. Put all these 5 elements together and this is total cost.The objective of logistics is not to optimize a cost element, it's not to minimize a cost element, but rather to optimize the total cost and minimize the total cost. Minimize the total cost – this is what logistics is all about. This is easier said than done. KIT, the idea is to reduce the inventory cost to zero if possible. At the same time warehousing cost is being reduced – this is a good system. What other cost will be affected – transport cost. All these cost elements are interrelated and interdependent. So interaction and interdependence are also important.Change of inventory will affect transport cost, lot quantity cost, etc. KIT system for example – daily consumption of rice. Let's say we eat egg of rice each time. Based on KIT, each time we need rice, we should buy only egg. Do we do this? No, then against KIT principle. We buy 200 kilos – 2 cost occur – inventory cost and the money spent on the rice cannot be used (capit al tied up – cash flow problem). If this money was put in the bank it would generate some interest. Where is the rice put? The place occupied by the rice can't be used for something else.In production if you buy too much to get economies of scale from purchasing, we'll incur a high inventory cost. If we are not buying kilos, we buy a quantity in between – say 2 kilo. Optimal total cost. If we buy egg each time inventory cost is zero – have to buy each time we need to cost. That is time and transport cost. Lot quantity cost will change as there is no savings to be got through economies of scale. And each time we buy there are other costs like information and processing (maybe not in the case of rice, but generally). Put all these costs together, and find a good place in between. We do this by Cost Trade-off.Cost Trade Off Slide Ex. Manufacturing activity involves making projectors in Mammal, Sweden and need to supply them to the rest of Europe. No distribution ce ntre, or warehouses, or depots, o because we cover the entire Europe, each time we have an order from someplace in Europe, we pack the projector and send it off. What do we save – inventory, we do not keep inventory. What do we have to spend more – transportation cost will be very expensive. We therefore have to find out if we have a warehouse somewhere in them from Mammal to the customer; we send it from that storage which is closer so we save transportation cost.How many such warehouses we need to cover Europe? It depends on the elements: transport, inventory, lot quantity, warehouse costs. In optimizing all these costs together is a logistics decision. Ex. In the case of the depots, we might have 8, 10, 12 to cover the entire Europe. What cost elements we have in the case of the distribution of projectors in Europe. First the systems cost, the processing and information cost. When there is a centre there needs to be a computer system, a financial system, etc. If the re is no centre, the system cost is very low.The more centre, the higher the system cost and this is a storage cost. If there is only one storage at the headquarters in Mammal, the cost would be relatively low. As the numbers of depots are being increased the storage cost will be very high. Inventory cost – more depots, more stock – higher inventory cost. Trucking cost – tree has trunk and branches. Trunk means main transportation, branches mean local delivery. Transport cargo from production to main distribution centre = trunk transport and then from distribution centre to each individual apartments = local delivery.Trucking cost – the more centre, the more trucking cost. If there are no depots, each time to ship from mammal to each individual location will be very high. The more depots, the less the local delivery cost will be. The total distribution cost is the addition of all cost, this is what we call total logistics cost. When we have the total logi stics cost curve it corresponds to the number 8 meaning there should be eight distribution centre. So this is the solution – 8 centre. As costs change, oil, etc, the optimal numbers of centre will change. Its not static, its dynamic (the Total Didst. Curve).Logistics – one has to plan, implement, control. If the individual costs are changed then total cost will be different – high/low. E. G. If the interest becomes low – inventory cost will be affected as the capital will become cheap. If oil cost increase, interest rate decrease – could end up with more centre which means saving more rainspout cost, esp.. Local delivery cost. Transport cost in total will be less. Inventory cost is dependent on interest rates. May have 9/10 depots. # of depots depend on cost elements. Cost trade off is important. With depots total cost is lower, so this will save cost.Having depot is a cost but the cost is lower than not to have them. E. G. KEA used to rent warehou ses, now they build – benefit of depreciation. Next Slide Logistics cost in the USA Logistics cost include transportation cost, inventory, warehousing, distributing, etc. How much logistics cost people pay as a percentage of a country GAP – 10% in the US. Inventory cost increase faster than the transportation cost bet. 1980 and 2005- why? Better inventory control, interest rate lower so inventory cost lower. Interest was low in the rest of the world until about 2005. Deflation = lower inventory cost.In other countries this percentage is much higher. China – 18% of GAP spent on logistics (used to be 20%). China is more representative of developing countries. So in developing countries logistics systems are not as efficient as those in industrialized countries. 9. 5% is similar in Europe and Japan (COED countries). In developing countries it's much higher. Includes all logistics cost element – transport, inventory, etc. – big room for improvement. Ne xt slide Customer service is another concept. Customer service is the output of logistic based, performance-based, philosophy based.Activity based e. G. After sales service, marketing, public relations. Performance based – what is the standard? Ex. Dell computer is performance based, delivered in 48 hours – performance-based customer service. Can be measured. Ex. , ports – waiting time for ships – rush. Philosophy based on what customers require is the customer service – according to customers taste – before, during, and after transaction. What is transaction? Buy goods, pay. Customer service can take place before this, during, after. Changes in CSS level affect total logistics cost. Next slide CSS High, Low.Cost Low/High – the higher the customer service level, the higher the cost. No ship should wait in port for more than 3 hours. This will cost a lot of money – will have to build more berths. Define customer service level. T ry to minimize total cost based on this pre-condition. Why CSS level increase and inventory level affected. The higher the CSS, the higher the inventory level. Goal: increased SSL, so high inventory level. It's a decision the company makes – customer service level is very important. (Refers to graph on the right) Try to find a way to push the line by introducing a better way of production e. . Using IT, new production method. Reduce cost but still satisfy goal – IT, use better system. Next slide: industry norm, etc. Customer's response to stock out. Is a risk being run of losing the customer? All different ways to define the customer service level. KIT System Developed by Toyota. Called the Kanata system. When a container of parts is chosen to be used from inbound stockinet in-out in-out This is the production. Eng the assembly line how do you get different stages to work together in harmony. The system has two cards. KIT works with 2 cards – the move cards and the production cards. Hen you see the move card, time to move the container or the other card, time to produce. Work centre 1 the card moves along the production line from one work centre to the next. Toyota manage to have minimum inventory along the assembly line. They have one container of part. Cards are turning around and the parts are being moved from one centre to another. For logistics a better understanding of Just in time is very important. 9 Cot 2008 There are two circulations of cards. How do the 2 circulations make the KIT system work? Why does it work? Key elements: to reduce inventory therefore reduces the capital tied up in inventory.Planning, staff commitment including suppliers, suppliers' ability to meet the demand. Some inventory is kept because there is a container. One piece at a time is being used from the container so the rest must be inventory. What is the average inventory? What is the customer requirement? It's the size of the container. The container is fu ll – how big is the container. How is the size of the container defined? The size of the container is planned based on production. Supply 20 units at the beginning and then it's consumed and a new container comes. The container is consumed during a cycle. The cycle is the time needed.The average inventory is a half of the container what ever the amount it contains. Typical KIT, there should be no inventory so why is inventory kept? When we need egg rice why don't we get exactly that? Other costs would increase too much. KIT – to keep as little inventory as possible. The size of the container depends on what? Transportation two don't match then the size of the container needs to be changed. If the transport sakes more time then increase the size of the container and vice versa. Transport time important. Volvo had KIT between Gent and Mammal. How much inventory should be in the Volvo factory in inventory?A lot. Why? Engine parts are made in Sweden to be used in Belgium. This transport takes one week by ship. As it takes one week, there should at least be spare parts for one week. Toyota has KIT. In the city of Toyota in Japan within 30 kilometers of the factory all Toyota parts are made there. This is the perfect KIT system. KIT emphasizes the reliability of the transport system. The two containers must have the same matching size. If parts can't be produced in time, the cart must be moved earlier. At the moment one container is taken to the in stock point, another container load of part should be produced.Suppose the production takes more time than when one cart comes back? Egg. If production takes 20 hours, parts can be made in 10 hrs. The time information is sent – information flow is the key. Plan to know how long production will take. In Japan, transport is guaranteed (Toyota). What is supplier commitment? Shortcomings of the KIT system? Now we assume we only need 20 parts in 10 hours, how about if the demand change and we need 30 parts in 10 hours. If the speed of production is variable the whole system is challenged. If the demand is certain/flexed then it can be planned – production rate and transportation.But what if production rate changes? This is a challenge for some of the production down the line that may need more time and material which might have to come from far. Not easy to adjust production. Shortcomings: Does only one supplier have to be used with KIT? No, Honda uses more than one supplier. In KIT, anything that goes wrong will collapse the entire system. In KIT the entire chain has to be KIT, it can't be at only one stage of the production. If not it forces other suppliers downs the line to keep inventory. KIT of big companies push inventory down the line if the don't plan effectively.Because smaller suppliers want to satisfy big companies, they are forced to keep inventory. KIT has to be along the entire supply chain. KIT may be only at the very large suppliers who push the inventory down the line to smaller suppliers. Toyota case: 1/52 weeks car production stopped because of a fire at one supplier – ripple effect. The decision of Toyota to do nothing was based on the total minimum cost of they did various studies. CCITT Case: The reliability of transportation and the uncertainty factors make logistics system key. The importance of information. Logistics concept drivers enablers, under total cost and customer level.KIT will never work without IT. Everything works together with IT supporting the processes under total cost and customer level. The process, concept or IT cannot work separately. Information is critical for success as well as the reliability of demand. Forecast and planning important to know when demand change. Transportation is also important for this system. If the transport distance is long, the container has to be big. The size of the container is influenced by time (transport). Transport is via sea – only use air in case of emergency. If transport takes a long time or is unreliable then more inventory needs to be kept.Gent is the biggest Volvo manufacturer. Terrines transport the parts from Sweden to Belgium. The shorter the interval of the shipping service, the lower the level of inventory required. This can make the transport expensive. So it's the total cost that is important that will Supply chain 2 definitions (see slide): it's a network, not port to port. In logistics there is no procurement. The 2 key words in logistics are flow and storage. Supply chain includes manufacture. Transformation = manufacturing. 1st law of dynamics – don't create anything, only change the form. Supply chain includes much more than logistics.Logistics narrowly defined. Supply chain is broader. Procurement also concerned with about origin of the goods. Optimization Integration Collaboration Synchronization Optimization – optimize one stage, the entire thing is not optimized so integration has to take place then consol idation then synchronization (concerted manner, happening in the same time). Relationship along supply chain. Start from optimization to synchronization. The idea of supply chain is relatively recent compared to logistics. 1960/ass people start to talk about total cost. E. G. In stage one warehousing and transport are separate functions.Management focus was operations performance. No integration. Logistics integrated both to see how they can be optimized. This is called total cost management. So the focus changed to optimizing total cost and customer service. Customer service put together with cost. Organization design is a centralized function. 80,s integrated logistics function. This moved today to supply chain MGM. Put logistics together to get supply chain. Supply chain broader than logistics. Stage 1 -separately treated, not optimized. Optimization done within the company. Optimize internal functions – transportation and inventory.Intra company and intra functional. This function is a logistics function. The logistics function today is moving still in the company but inter functional. Everything in the company put together – integration. Toyota inter company – higher level of integration. Toyota owns the supplier – easier to do KIT. Companies are integrated supply chain – Inter company and inter functional. Dell and their suppliers are integrated. Also Wall-Mart. The producers don't take orders from Wall-Mart – the ‘cards' in KIT comes from individual supermarkets. Producers can check storage level of Wall-Mart outlets.Everything is totally integrated. No personal intervention to place order etc. The system is integrated – good supply chain – inter company. Next Slide From fragmented logistics to integrated supply chain. In the fist stage do one function at a time – inventory or warehouse or transport. In the later stage, intra functional – the whole function optimized. From fragm ented logistics to integrated SCM. Suppliers, manufacturer, distributor, retailer, customer are all integrated with he other functions in the company and go to the next stage you integrate between the functions in the companies and between the companies.This is interception and will become in the true sense a supply chain. Supply chain broader today than the logistics. SC have to work with other companies. To satisfy your customers require more than one company: need supplier, manufacturer, distributor, and retailer. E. G. Markers – their system integrated with some of their key customers – key client management. Copra's definition of supply chain. Within an organization there is a supply chain. Egg. WHOM, teaching, supply services, library, canteen, etc. Al depots. Work together to satisfy customer. SC decisions – have to have supply chain design and strategy.Strategic level, medium term, short term – operational, daily and based on the company's competi tive strategy. Michael porter: define competitive strategy in terms of product differentiation or cost cutting leadership. How to achieve strategy: SC strategy. Balance bet. Efficiency and responsiveness. How to respond to demand? Efficiency includes cost-effectiveness, I. E. Cheap. Fast response – this is provided at a cost. Efficiency might compromise cost. Decision making is from lower level to higher. Many competitive strategies come from SC strategy. Wall-Mart is from logistics.Dell is from Supply chain Beer game: Once demand is variable SC difficult to maintain. KIT difficult to maintain. Long time to reach an equilibrium. In the end have to keep large inventory. Once demand is unstable KIT is not suitable. SC Design. Planning is important. SC design is about planning. When suppliers design their supply chain maritime and port services is a part of that. So mapping is important. Stockholders point is storage. Horizontal line represents move. When it stops – verti cal lines = storage or waiting. Egg. BBC container tracking. This is SC mapping.Horizontal line is lead-time (time from production centre 1 to production centre 2). Lead time depends on inventory to determine when order is to be placed. SC starts from the fiber and end with the clothes on the shelf. Through this we see pipeline length and volume. E. G, coca cola. Postponement of safety stock What is postponement? H and Ezra – they use postponement principle. Clothes must be in fashion. Don't know faction of 09. Try to postpone as much as possible the manufacturing time. Forecast, ii, postpone. Dell also uses this strategy. Don't develop their machines until last moment.Can use the latest technology and the price gets cheaper. Anticipate time needed and kind of product needed. Decision is postponed to the last moment. Postponement principle can reduce stock. Has bearing on transport too. Better information flow will impact SC. Next slide Sometimes for material flow speed might not be appreciated. Transport is used as storage to adjust transport time to match with performance. Sometimes it's because of the price. E. G. Iron ore in China, there is too much now. Information speed is always good but for material sometimes it needs to be fast and other times not so fast.Compression of lead-time in manufacturing activity. Supply chain map – length (vertical) volume (horizontal) – try to compress it to see possibilities to reduce some of the variable. Ocean transport can't be adjusted as speed can't be reduced. SC design. Lead-time is transport. Port of Amsterdam case study summary Market research – likelihood to attract new carriers / guarantee – balance and supply (elasticity). When port built no congestion in Europe – more port than ships. Impossible to get firm commitment – plenty choices. More supply than demand. Demand price inelastic. Shipping companies never give guarantees.Optimization, integration, collaborati on, synchronization. Have to synchronize. Increase speed of one operations but the speed of other things remained unchanged. No synchronization. If the discharged boxes cannot be moved this is a logistics problem. The concept of logistics: most important – total cost. Port of Amsterdam forgot total cost. Typical failure case that should never have been done. Restricted berths – bigger ships cannot fit in today – size is restrictive. How wide and long should ship be. (Panama Canal has size restriction and is thus a constraint – ships in the Asian