Overview of qualities and standards of global employment

The challenges and opportunities associated with overseas positions are as follows: the cultural differences create the assimilation process somewhat lengthy; the expectations of the management personnel, as well as employees, are in high regard, according to the increase of the company’s production or output.Advertising We will write a custom case study sample on Overview of qualities and standards of global employment specifically for you for only $16.05 $11/page Learn More The opportunities are based on the contribution of knowledge and acquisition of unique set of skills that the new setting will provide but also, on the changes that can be implemented on social and individual levels. The problem of the cultural difference is one of the major ones, as the person has to learn the traditions of intricate beliefs of the society. Usually, people are involved within the norms from very young age and are able to learn and absorb the rules and regula rities of society over a long amount of time. The fact that an employee from another part of the world has little time to study the unique culture creates a stress and constraints on the abilities to get familiarized with the society. The expectations are on the highest level, as the person invited is considered knowledgeable and of high professionalism, as to conduct own mastery and management in the new setting. The process of increasing the company’s productivity and the development of the personal skills of employees is the goal of every superior and so, a close understanding on the organizational level is needed for success. The opportunity to increase personal knowledge of the culture and understanding of the company politics creates an advantage for an international employee. The set up of new and more advanced techniques and process will ensure the prosperity and positive direction of the business. The qualifications of a person coming abroad are very important for th e way they will adopt to the new culture and vice versa. The employee must be very flexible in the transition, as to make it unnoticeable for the employees and other managers of the company. The local representatives, as well as customs and governments must be consulted, so that no ethically disrespectful behaviors are exhibited. The employee and the company, including the social setting, must function as a unit, so that there are no disturbances in the normal activities of the worker’s and company’s work. An intellectual and responsible approach must be used by the employee, so that the trust and understanding of the new company is gained.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The social customs, traditions, religious values, business standards and other experiences must be analyzed in precision, in order to avoid any missing links and details. Also, the politi cal and economical qualities of the nation or country must be studied, so that business technique and general morale of the country are well known and are used to an advantage. If a business functions on an international level, the policies and procedures according to other countries must be studied as well. This creates an environment filled with learning and pressure, and the employee must be able to withstand the stress. Not only must the culture of one country and people be learned but also a number of different world views and norms. So, the employee must have great attention to details and an ability to correctly interpret and use the information received. The overall qualities are related to hard work, determination and respect towards the people and the country (Plessis, 2010). Reference Plessis, A. (2010). International human resource management: An overview of its effect on managers in global organisations. Interdisciplinary Journal Of Contemporary Research In Business, 2( 4), 178-182. This case study on Overview of qualities and standards of global employment was written and submitted by user Lillianna Suarez 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.

Rectal Cancer essays

Rectal Cancer essays Rectal Cancer is a disease where cancer cells are found in the tissues of the rectum. It is a highly treatable cancer if localized. The rectum is the last eight to ten inches of the large intestine in the digestive system, and has two muscle mechanisms involved in expelling fecal matters, the internal and external sphincter. The experience of rectal cancer may begin with your doctor discovering it first, or by discovering the symptoms. People assume that they have piles or hemorrhoids when they have discomfort in the rectal area. Sometimes, this just is not the case. In fact, the Hemorrhoid Care Medical Clinic said, 90% of people that have rectal cancer assumed they had hemorrhoids instead of cancer.(Hemorroid.net) Besides hemorrhoids, there are many symptoms to rectal cancer. These signs may help a person find it before it is too late. Some symptoms are: Changes in bowel movements like narrow stool, bloody stool, black stool, diarrhea, constipation, and bowel obstruction. Also, there could be fever and pain, rectal bleeding, stomach pains and cramps, nausea, vomiting, weight loss, fatigue, anemia (low red blood cell count), constant visits to the restroom, pain in genital tissue, and an urgent need to urinate.(Colon and Rectal Cancer) Before going any further, there are some important facts to know about rectal cancer. 90 percent of all rectal cancer deaths are preventable, when found early; survival can be increased from 62% to 81% that means that 56,000 patients will live. 1 in 17 Americans will get rectal cancer and it is the second most common cancer death in America. The five year survival rate is 90% if the patient takes medication and makes the needed visits to the doctor.(Hemorroid.net) Cancer that begins in the colon is called colon cancer and cancer that begins in the rectum is called rectal cancer. Cancer affecting any of these areas is referred as colorectal cancer. Cancer in these parts oc...

Evaluate the risk exposure to commercial bank whilst they endeavour to Essay

Evaluate the risk exposure to commercial bank whilst they endeavour to maximize their revenues within profitable lending - Essay Example It is the most common risk experienced by banks in lending. It occurs when customers are unable to meet their obligations, fall due and causes the bank to suffer a loss. Different bank transactions that cause the credit risk may result from the lending made to the governments, individuals, and companies. Second, it may result from lending money in exchange for security bonds. Commercial banks also exchange lending with shares, swaps, trade finance transactions, and other items. The probability of risk increased due to the different items that may cause the credit risk. The risk increase in the event, the bank fails to evaluate the customer credit worthiness. It is more probable to lose a huge sum of money when commercial banks offer huge loans to customers without proper credit rating. The risk results from market rate fluctuations. Normally, the banks allow customers to deposit money in the bank at a certain rate. Subsequently, banks give out the money in the form of loans at a rate higher than the one paid to depositors. Commercial banks risk a loss when the government control lowers the lending interest rates. If the lending interest’s rates decrease below the interest rate provided to depositor’s commercial banks may experience difficulties paying back the money to the depositors. The probability and the severity of loss increase when the government exercises serious controls in the monetary market. The interest rate risk affects the currents earnings of a firm and the present value of the future cash flows due to changes in the interest factor value. The depositors in a bank may withdraw their deposits from the bank any time as long as they do not violate the terms agreed. At the same time, the bank may offer huge sums of loan against few deposits made by customers. In case the customers decide withdraw their deposits, the funds will be unavailable. The liquidity risk is the probability that the bank will

IKEA and India Assignment Example | Topics and Well Written Essays - 4000 words

IKEA and India - Assignment Example During 1960s-1970s, it became the prominent furniture manufacturer in Sweden. In the 1980’s, IKEA expands dramatically into new markets such as USA, Italy, France and the UK (Ikea, 2012). At present, Ikea has operations in more than 40 countries in the world. However, it has no business units in India at present even though India is one of the most rapidly developing economies in the world. Many people believe that India may become a superpower both in terms of economic growth as well as military power in near future itself. Moreover, it is often said that global wealth is currently shifting from less heavily populated American and European continents to the more heavily populated Asian continent because of the rapid growth witnessing in India and China like countries. Prominent international companies are currently competing each other in establishing business units in India like emerging markets. Under such circumstances, it is difficult for Ikea like MNC’s to avoid I ndia completely while formulating their international business strategies. This paper analyses the merits and demerits of India as a market for Ikea’s international business operations. Analysis and justification of Indian market Porter’s Five forces Model Michael Porter has identified five competitive forces which may affect the competitive power of an organization. They are; Threat of substitute products, Threat of new entrants, Intense rivalry among existing players, Bargaining power of suppliers and Bargaining power of Buyers (Porter’s Five Forces Model, 2009). The figure given below illustrates Porter’s five forces theory. (Porter’s Five Forces Model, 2009) Threat from new entrants is the first force in Porter’s five forces model. â€Å"Microeconomics teaches that profitable industries attract new competition until the downward pressure on prices has squeezed all the economic profit from the firms. New firms in an industry put downward pressure on prices, upward pressure on costs and an increased necessity for capital expenditures in order to compete† (Porter’s Five Forces- Threat of New Entrants, 2012). Furniture market in India is not much competitive because of the absence of prominent companies. In fact furniture manufacturing is a small scale industry in India and hence MNC’s like Ikea can easily overcome the resistance of small scale furniture manufacturers in India. In other words, Indian furniture industry is highly fragmented and Ikea can exploit such situation to their favor. Less threat from new entrants or competitors will help Ikea to increase their profits in Indian market. â€Å"Competitive rivalry will be high if there is little differentiation between the products sold between customers† (For Marketing Learners Globally, n. d). As mentioned earlier, Nokia may not face much competition in Indian market because of the absence of any furniture manufacturing MNC’s in Indian market. Small scale furniture manufacturers in India may not have the financial capabilities to compete with Ikea like big companies. â€Å"Supplier power exists when there are only few suppliers. It also exists when the switching cost becomes more for the organization to move from one supplier to another† (For Marketing Learners Globally, n.d). Availability of wood for manufacturing furniture is different at different locations in India. For example, India’s southernmost states such as Kerala have immense forest resources whereas North India has

Cloud service technology and how is improving e-business Research Paper

Cloud service technology and how is improving e-business - Research Paper Example Cloud resources are usually shared by multiple users and dynamically reallocated per demand. This works for allocating resources to users. For instance, a cloud computer facility serving the entire Asian continent users during working hours with a specific Application like email is likely to reallocate the same resources to serve North African users during the working hours with a different application like web server (Armbrust et al., 2013). This approach maximizes the computer power usage hence decreasing environmental damage as less usage of power among other necessary requirements like air conditioning and rack. Cloud service technology enables multiple users to access a single server to be retrieved and update its data without necessarily purchasing various licenses for various applications (Armbrust et al., 2013). Cloud service technology has made it possible for companies to avoid upfront infrastructure costs. Instead, the companies have focused on projects that differentiate their businesses instead of infrastructure. In addition, the technology has allowed enterprises to get their applications up and running faster with less maintenance and improved manageability to enable information technology to adjust resources rapidly and meet the unpredictable and fluctuating demands of business (Bowen, 2011). The pay as you go model is the preferred model for cloud service technology. The model cautions administrators to adapt the cloud pricing model; otherwise, they are likely to pay high charges unexpectedly. The technology has enabled the production of hosted services. Cloud computing sells hosted services through application service provision. The application is run by client server software in remote locations. Some of the services are Software as a Service (SaaS) and Platform as a Service (PaaS) among others (Bowen, 2011). End users can access cloud based applications via thin client, mobile applications and web browsers among

Manufacturing Resource Planning Models

Manufacturing Resource Planning Models Manufacturing Resource Planning Models under Uncertainty and Commonality for Multi-products Multi-period Multistage Production Environment Chapter 3: Literature Review In this chapter, the following areas of research are investigated to lay the foundation for the intended mathematical models: manufacturing resources planning background, benefits and limitations; manufacturing resources planning models under different uncertainties; and commonality in manufacturing resources planning models. 3.1 Evolution of manufacturing environment The field of production planning and control has undergone tremendous change in the last 50 years. Prior to the 1960s, inventory was controlled by a manual system, utilizing various techniques: stock replenishment, reorder points, EOQ (economic order quantity) (McGarrie, 1998), and ABC classifications, to name a few (Ptak, 1991). Gilbert and Schonberger (1983) provide a history of production control, while Lee (1993) comments that by the mid-1970s, enough experience of material requirements planning (MRP) had been gained and the importance of the master production schedule (MPS) was realized. In the 1950s, MRP were the first off-the-shelf business applications to support the creation and maintenance of material master data and bill-of-materials (demand-based 14 planning) across all products and parts in one or more plants. These early packages were able to process mass data but only with limited processing depth (Klaus et al., 2000). From the 1940s to the early 1960s, material control consisted of basic ‘order point formulae used to maintain a level average inventory balance. In 1965, Joseph Orlicky of the J. I. Case Company devised a new approach to material management, called material requirement planning (MRP) to serve as a platform to answer four questions, known as the ‘Universal Manufacturing Equation (Towers et al., 2005): What are we going to make, What does it take to make, What do we have and What do we have to get. The respective answer of the first three questions lie in the blueprint of production plan: the master production schedule (MPS), the bill of material (BOM) and the physical inventory records themselves. While MRP was certainly a vast improvement over simple manual method, the potential to stretch its boundary even further was soon recognized. A companys production is constrained by not only its inventory need but also by equipment and personnel capacity, facet of the plant not considered in the Universal Manufacturing Equation. MRP at its core is a time phased order release system that schedules and releases manufacturing work orders and purchase orders, so that sub-assemblies and components arrive at the assembly station just as they are required. As competitive pressures increased and users became more sophisticated, MRP evolved and expanded to include more business functions such as product costing and marketing. In 1975 the next generation system, Closed-Loop MRP, integrated capacity factors into the MRP structure and used feedback on production status to maintain the validity of planning decisions as requirements changed. One crucial link in the manufacturing decision chain was still missing- the financial point of view. With advent of computer system in the early 1980s the development of effective shop-floor scheduling tools had at that time been dominated by the top down approach of manufacturing resource planning known as MRP II for controlling production operations (Towers et al., 2005). The introduction of MRP II five years later served to bridge the gap. The operational Closed-Loop MRP plan, presented in material units such as pieces and pounds, was translated into financial dollar terms, enabling the entire organization to work off a single set of data. Simulation capability was also developed to answer ‘what if planning questions with action oriented replies. A major purpose of MRP II is to integrate primary functions (i.e. production, marketing and finance) and other functions such as personnel, engineering and purchasing into the planning process to improve the efficiency of the manufacturing enterprise (Chen, 2001, Chung and Snyder, 2000, Mabert et al., 2001). MRP II has certain extensions like rough cut capacity planning and capacity requirements planning for production scheduling on the shop floor as well as feedback from manufacturing shops on the progress of fabrication. Since the 1980s, the number of MRP II installations has continued to increase, as MRP II applications became available on mini and micro computers (Siriginidi, 2000). Like MRP, MRP II focused on the manufacturing process. Then MRP II was extended towards the more technical areas that cover the product development and production processes. Computer Integrated Manufacturing (CIM) supplied the entire conceptual framework for the integration of all business administrative and technical functions of a company, such as finance, sales and distribution, and human resources (Klaus et al., 2000). The next stage of MRP II evolution was just-in-time (JIT) methodology that combined with the plummeting price of computing to create the islands of automation in late 1980s. Over the last 60 years, many PPC systems and philosophies have been developed. These include material requirements planning (MRP), manufacturing resource planning (MRP II), enterprise resource planning (ERP), just in time (JIT), optimized production technology (OPT), advanced production scheduling (APS), supply chain management (SCM) and customer relationship management (CRM), either used individually or jointly (Koh, 2004). 3.1.1 Material requirement planning (MRP) Kulonda (2000) descried the evolution of MRP, dividing it in three different worlds. In the first world, MPS items typically are finished end items made to stock; MPS is stated in terms of forecast item demand converted to a series of production lots via time-phased order points or other rules. In the second world, the MPS could conceivably be stated as end items built entirely to order. If response time were not an issue, this approach would work quite well. Competitive force, however, often require shorter response times and inevitably some stocking of at least the longest lead time items occur. A relatively large number of different components are assembled to complete an end product that may have many specific variants. The third world of MRP has all the complexity of the second world with the additional complication that relatively numerous end items are built from relatively few raw materials. This can be visualized in part level count charts shown in 3.1. Within the MRP system a number of rules need to be specified. They include: acceptable lot sizes, safety stocks and reject allowances. There are three principles of MRP. They are: dependent on demand for the final product; netting of inventory with expected deliveries and open orders to give a balance on-hand; and time phasing by using information on lead times and needs. Three basic MRP inputs to the system are: master production schedule (MPS); the structured BOM for the MPS; and information on inventories, open orders and lead times. The aim of MRP systems is to minimize cost of inventories and maintain customer service levels. MRP benefits include the ability to rapidly re-plan and re-schedule in response to changes in a dynamic environment. It is flexible and responsive to the customer needs (Hines, 2004). The successes and disappointments of MRP as well as the key shortcomings of MRP (material requirement planning) are studied by Plenert (1999). He investigates consequences of the deficiencies means if they are not corrected. The difficulties encountered by firms in the implementation process of MRP may be traced back to a number of factors. The complexity of MRP systems, which, of course, is a relative concept varying according to the level of knowledge and experience available inside the firm prior to implementation (Wortmann, 1998, Wilson et al., 1994, Luscombe, 1994). There are usually several parameters to be initiated when implementing standard software. A considerable amount of intensive training is required. In fact, even though end-users are usually trained on a limited amount of functionality, key users need to acquire considerable technical competence. The organizations simply under-estimate the extent to which they have to change in order to accommodate their purchase. The effective management of technological change requires transformational leadership (Brown, 1994). One of the issues largely felt as critical concerns the resistance of managers and personnel to the organizational change that is induced by the adoption of new technologies. To this regard, several authors have underlined the importance of a sound involvement of shop-floor workers (Sommer, 1998, Weill et al., 1991). Valuable relevance has also been placed in the referring literature to technological problems, such as the unsuitability of MRP systems to optimize the internal workflow. In fact, frequent changes in schedules, a problem referred to as production nervousness, is an obstacle to successful implementation of MRP systems (Duchessi et al., 1998). Material Requirements Planning (MRP) has fallen into disfavor in 1980s, as demonstrated by the extensive literature and conference material coming out of organizations like the American Production and Inventory Control Society (APICS) which discuss its shortcomings (Berger, 1987). MRP has received strong challenges of its effectiveness from Japan. It is believed that the only thing which is still keeping so many manufacturers with MRP is the difficulty in converting to other (Plenert, 1999). Looking at MRPs basic philosophy, we should be able to focus our scheduling only on what materials are needed, and when they are needed (Plenert, 1990b, Ritzman et al., 1984, Chase and Aquilano, 1995, Lee and Schniederjans, 1994, Nahmias, 1997, Schroder et al., 1981). MRP allows greater flexibility in product customization. The most obvious shortcoming in MRP usage is its focus on labor efficiency. Labor is not the resource that we need to be efficient at, especially since it causes inefficiencies in our most critical resource, materials. We need to minimize our routings, shortening lead times as much as possible. We need to do our buffering using safety capacity (labor and machine capacity buffers), not safety stock (materials capacity buffers) (Plenert, 1999). We should minimize the non-value-added steps to make them as efficient as possible. The other big builders of inventory are time and the large batch size. 3.1.2 Manufacturing Resource Planning (MRP II) The theory of MRPII has been well discussed in the literature and focuses are normally put on concept, methodology, application and future development (Ip and Yam, 1998). MRP II (Manufacturing Resource Planning) is a hierarchically structured information system which is based on the idea of controlling all flows of materials and goods by integrating the plans of sales, finance and operations. The levels in an MRP II concept as outlined are applied to two plans in particular (Zapfel, 1996): Business Planning including Resource Requirements Planning (RRP) and Master Production Scheduling (MPS) including Rough-cut Capacity Planning (RCCP). Business planning level of a company identifies its objectives. The business plan integrates the plans from sales, finance and operations. The planned aggregate sales income, the planned cost of sales and operations, and all other expenses per planning period provide a basis for calculating the planned net income of the firm. The planning horizon is often a year or longer and a planning period a month or longer. To be feasible, the production plan is examined by the so-called resource requirements planning (RRP); that is, the resources required by a given aggregate production plan can be calculated. MRP II offers simulation capabilities and marries the operating system with the financial system so that what-if questions can be answered using the software system. If the business plan leads to resource requirements which are not feasible or which are unsatisfactory, the user can change the plan and a new simulation run is started to calculate the modified resource requirements. These s teps can be repeated until a feasible and satisfactory business plan is achieved. The aggregate production plan, accepted by the user, forms an important basis for master production scheduling. MRP II tends to link manufacturing, engineering, marketing, finance and management (Yusuf and Little, 1998); production operations-inventory production control, purchasing with production planning, Capacity Planning and Master Scheduling (Turbide, 1990); sales, logistics, production, engineering and supporting functions, the broad ingredients of almost all Manufacturing organization (Ip and Yam, 1998). It may also include costumer service- order entry, sales analysis, forecasting- with financial applications. The total is a single information control system that shares data among the various applications for the mutual benefit (Turbide, 1990). MRP II operates in a â€Å"pull† manner at the planning level. It is used for high-level planning of demand and inventory functions and preliminary capacity evaluations. Ip and Yam (1998) afford a master plan which integrates the technology and management of the strategic elements, problem definition, MRP II solutions, technical and procedural design, and implementation management in order to minimize the frustration and conflicts universally found in MRP II implementation process as well as to reduce disconnection amongst different stages of the implementation process. Ideally MRP II addresses operational planning in units; financial planning in money terms, and has simulation capability to answer â€Å"what-if† questions. It is made up of a variety of functions, each linked together: business planning, production planning, master production scheduling, material requirements planning, capacity requirements planning and the execution systems for capacity and priority. Outputs from these systems would be integrated with financial reports, such as the business plan, purchase commitment report, chipping budget, inventory production in money terms, etc. Manufacturing Resource Planning is a direct outgrowth and extension of a Material Resource Planning (MRP) (Higgins et al., 1998). 3.1.2.1 MRP II definitions: ‘If I had to sum up MRP II in one word, the word I would choose is discipline. Allowed three words, they would be discipline/performance measurement Sheldon (1991). He detailed the total implementation process, from inception to completion and divided the process into six steps, namely, education, common goal, fitness for use, accountability, performance measurement and systems/tools. In Table 3.1, the definition of MRP II is summarized. Table 3.1: Definition of MRP II Definition Reference MRP II is a well-defined process or set of calculations that is used to develop plans for the acquisition of the materials needed for production. (Turbide, 1990) MRP II is an information control philosophy that is often translated into software products containing, among other capabilities the MRP calculation function. MRP II is a system designed for managing all the resources of a manufacturing company. It consists of a comprehensive set of planning tools and techniques which integrate all functional areas of an organization (Tremblay, 1991) MRP II is a method for the effective planning of all resources of a manufacturing company. (Dougherty and Wallace, 1992) Manufacturing resource planning (MRP II) is a long promising method that simplifies all the complex tasks of manufacturing management. (Chambers, 1996) MRP II is a hierarchically structured information system which is based on the idea of controlling all flows of materials and goods by integrating the plans of sales, finance and operations. (Zapfel, 1996) Manufacturing Resource Planning (MRP II) is a structured approach to optimize a companys internal Supply Chain. (Higgins et al., 1998) MRP II is a method for the effective planning of all resources of the manufacturing company. MRP II is an effective management system that has excellent planning and scheduling capability which can offer dramatic increases in customer service, significant gains in productivity, much higher inventory turns, and greater reduction in material costs. (Ip and Yam, 1998) MRP II system is a proactive materials strategy. It is a dynamic system and can adapt to change as it reflects upon the latest information in its planned order releases. (Towers et al., 2005) 3.1.2.2 MRP II benefits: The potential benefits those may receive from the MRP II are summarized below: Empirical research suggests that companies able to implement MRP II successfully report enhanced competitive positions, improved customer service levels, a better financial position, increased plant efficiency, heightened morale in production, more effective co-ordination with marketing and finance, more efficient production scheduling and reduced inventory levels, fewer component shortages, reduced manufacturing costs and lead times and improvements in inventory turnover (Humphreys et al., 2001, Brown and Roberts, 1992, Roberts and Barrar, 1992). When customers and suppliers (internal or external) request information that have been fully integrated throughout the Supply Chain or when executives require integrated strategies and tactics in areas such as manufacturing, inventory, procurement and accounting, MRP II systems collate the data for analysis and transform the data into useful information that companies can use to support business decision-making (Broatch, 2001). MRP II systems, if implemented successfully, enhance and redesign business processes to eliminate non-value-added activities and allow companies to focus on core and truly value-added activities (Broatch, 2001). The focus of MRP II computer systems is on the efficiency and effectiveness of the internal processes. It offers a way to streamline and align business processes, increase operational and manufacturing efficiencies and bring order out of chaos (Nah, 2002). MRP II systems minimize the time and effort required to process business data and maximizes the application of that information. By facilitating data exchange throughout the organization, a MRP II system enables to coordinate such crucial activities as production planning, material planning, capacity planning and shop floor control (Plenert, 1999). MRP II is concerned mainly with scheduling of activities and the management of inventories. It is particularly useful where there is a need to produce components, items or sub-assemblies, which themselves are later used in the production of a final product. Organizations can improve their overall customer service through consistently meeting delivery promises, shortening delivery times and having products on hand when customer orders are received. MRP II can provide the necessary management information to ensure delivery promises can be kept. Where there is volatility in demand with unpredictable customer requirements and complex product structures, the information management capability of MRP II is particularly relevant (Towers et al., 2005). A well implemented MRP II system can: provide an organization with reliable lead times; meet its service delivery performance requirements; contribute to stable and consistent lead times and well informed decision-making; maintain lower level of safety stock; reduce the average inventory level and reduce inventory investments to a minimum (Towers et al., 2005). The uncertainty of demand can be minimized due to the fact that MRP II can provide an organization with a clear picture of the demand for a particular item and when organizations know their future needs they can negotiate their purchase agreements with suppliers and receive quantity discounts improving their financial position (Towers et al., 2005). Successful MRP II users have typically reported as much as 15 percent gain in manufacturing productivity, 50 percent reduction in overtime, 33 percent reduction in inventory investment and 80 percent reduction in inventory shortages (Towers et al., 2005). MRP II provides better control over the quantity and timing of deliveries of raw materials, parts, sub-assemblies and assemblies to production operations. 3.1.2.3 Pitfalls of MRP II: The main pitfalls of MRP II from various authenticated literature are listed below: Impressive though the benefits are, there is evidence suggesting that, as with so many similar technologies, few companies are able to maximize them. White et al. (1982) consider that 50 per cent of organizations do not achieve their objectives. Archer (1991) has said that 70 per cent of systems may be regarded as failures. Ho et al. (1992) has stated that ‘few firms have been able to realize the full potential offered by MRP II. While relative percentages of successful and unsuccessful implementations differ from study to study, each demonstrates a surprisingly high failure rate. Implementation of MRP II system requires major managerial innovations and organizational changes in addition to the installation of computer hardware and software (Lau et al., 2002). The heart of an MRP II system is MRP. MRP II does consider resource capacity level when generating the POR schedule. If an overload is identified, it will flag and recommend the user to reschedule. The question is how frequent should the user reschedule? Both Ho et al. (1995) and Sridharan and LaForge (1989) showed that rescheduling induces system nervousness, which leads to further underperformance. MRP II has been criticized by a number of authors on the grounds that few benefits accrue for high implementation costs (Burns et al., 1991, Sum and Yang, 1993). Unsuccessful MRP II implementation not only deprives companies of potentially huge benefits but also results in financial losses and disruptions in operations (Towers et al., 2005). MRP II concept is only partially suited to production planning in the case of uncertain demand. There is little help with the necessary aggregation and disaggregation process, especially when demand uncertainty exists. It is difficult for the user of MRP II to find a robust aggregate plan for master production schedule (Zapfel, 1996). Critics of MRP II points to the rigidity of the process: the logic that demands batches and multiple; the fixed lead time which takes no account of current capacity; the standard queue concept in front of a work center etc. Increasing competitive pressure, manifested by reduced lead times, smaller batch sizes, lower stocks and ever more demanding customers have pushed MRP II to its limits (Porter et al., 1996). 3.1.2.4 Reasons for failure: One of the principal reasons for the failure of MRP II and other large technologically sophisticated systems is that organizations simply underestimate the extent to which they have to change in order to assimilate what is in reality a new way of running the company (Humphreys et al., 2001). MRP II failure have embraced technical problems; the difficulties involved in selecting and evaluating cost effective MRP II packages and a host of historical, cultural, structural and managerial issues (White, 1980, Kinnie et al., 1992, Wight, 1990, Wilson et al., 1994); expertise needed to implement and use effective MRP II systems; lead times management; design of the production environment, routing and quality information; Infinite capacity availability; batch and lot sizing (Higgins et al., 1998). An accurate demand forecast is an essential foundation for the successful operation of an MRP II system. Poor sales forecasting had been identified by senior management as one of the main reasons for the MRP II implementation failure (Humphreys et al., 2001). 3.1.3 Enterprise Resource Planning (ERP) The Gartner Group of Stamford, CT, USA, coined the term ERP in the early 1970s to describe the business software system. The name ERP was derived from the terms material requirements planning (MRP) and manufacturing resource planning (MRP II). The maturity stage of ERP occurred in the mid-1990s. ERP is the third generation of planning software. Material requirements planning (MRP) was the first generation, manufacturing resource planning (MRP II) the second and ERP the third. The primary purpose of ERP is to create a seamless integration of interrelated information throughout the business organization. A system of software programs is used to develop the necessary links between the various business functions so that needed information is readily available. There are 8 (eight) major functions and 33 (thirty three) sub-functions, as well as 22 (twenty two) primary modules and several sub-modules (Umble et al., 2001). A typical ERP implementation takes anywhere from one to five years (M abert et al., 2003). ERP system is not just a pure software package to be tailored to an organization but an organizational infrastructure that affects how people work and that it â€Å"imposes its own logic on a companys strategy, organization, and culture† (Shehab et al., 2004, Davenport, 1998, Lee and Lee, 2000). 3.1.3.1 Definition of ERP When customers and suppliers request information that have been fully integrated throughout the value chain or when executives require integrated strategies and tactics in areas such as manufacturing, inventory, procurement and accounting, ERP systems collect the data for analysis and transform the data into useful information that companies can use to support business decision-making. They allow companies to focus on core and truly value-added activities (Nah, 2002). These activities cover accounting and financial management, human resources management, manufacturing and logistics, sales and marketing, and customer relationship management. Table 3.2 shows definitions of ERP, cited in different literatures. Table 3.2: Definition of ERP Definition Reference ERP systems are enterprise-wide on-line interactive systems that support cross-functional processes using a common database. ERP systems are designed to provide, at least in theory, seamless integration of processes across functional areas with improved workflow, standardization of various business practices, and access to real-time up-to-date data. (Davenport, 1998) ERP systems are complex and implementing one can be a challenging, time consuming and expensive project for any company. ERP is not only an IT solution, but also a strategic business solution. As an IT solution, ERP system, if implemented fully across an entire enterprise, connects various components of the enterprise through a logical transmission and sharing of data. (Norris et al., 2000) ERP is a commodity, a product in the form of computer software. (Klaus et al., 2000) ERP is a development objective of mapping all processes and data of an enterprise into a comprehensive integrative structure. ERP is a key element of an infrastructure that delivers a solution to business. ERP a method for the effective planning and controlling of all the resources needed to take, make, ship and account for customer orders in a manufacturing, distribution or service company. (Nah, 2002) ERP system is a packaged business software system that allows a company to automate and integrate the majority of its business processes, and share common data and practices across the entire enterprise. (Seddon et al., 2003) ERP is a â€Å"do it all† system that performs everything from entry of sales orders to customer service. It attempts to integrate the suppliers and customers with the manufacturing environment of the organization. (Shehab et al., 2004) 3.1.3.2 Benefits of ERP ERP systems have certain advantages such as low operating cost and improving customer service (Shehab et al., 2004). In implementing an ERP solution, an organization can quickly upgrade its business processes to industry standards, taking advantage of the many years of business systems reengineering and integration experience of the major ERP vendors (Myerson, 2002). The practical benefits of ERP are divided into five aspects by Seddon et al. (2003): operational, managerial, strategic, IT infrastructure, and organizational (Table 3.3). Table 3.3: Benefits of ERP Operational benefits: By automating business processes and enabling process changes, they can offer benefits in terms of cost reduction, cycle term reduction, productivity improvement, quality improvement, and improved customer service. Managerial benefits: With centralized database and built-in data analysis capabilities, they can help an organization achieve better resource management, improved decision making and planning, and performance improvement. Strategic benefits: With large-scale business involvement and internal/external integration capabilities, they can assist in business growth, alliance, innovation, cost, differentiation, and external linkages. IT infrastructure benefits: With integrated and standard application architecture, they support business flexibility, reduced IT cost and marginal cost of business units IT, and increased capability for quick implementation of new applications. Organizational benefits: They affect the growth of organizational capabilities by supporting organization structure change, facilitating employee learning, empowering workers, and building common visions. 3.1.3.3 Disadvantages of ERP: ERP systems have some disadvantages due to the tight integration of application modules and data. Huge storage needs, networking requirements and training overheads are frequently mentioned ERP problems. However, the scale of business process re-engineering (BPR) and customizations tasks involved in the software implementation process are the major reasons for ERP dissatisfaction. ERP projects are large, costly and difficult and that they require large investment in capital and staff and management time (Adam and ODoherty, 2000). Yen et al. (2002) identified the following disadvantages of ERP: Its high cost prevents small businesses from setting up an ERP system The privacy concern within an ERP system Lack of trained people may affect ERPs efficiency Implementation of an ERP project is painful Customization is costly and time-consuming. Some of these shortcomings have been discussed by OConnor and Dodd (2000). Implementation of an ERP system is an extensive, lengthy and costly process, typically measured in millions of dollars. An ERP implementation can take many years to be completed and cost tens of millions of dollars for a moderate size firm and upwards of $100 million for large international organizations (Mabert et al., 2000). Even with significant investments in time and resources, there is no guarantee of a successful outcome (Mabert et al., 2003). According to Shehab et al. (2004), the ERP systems are complex and implementing one can be difficult, time-consuming and expensive project for a company. It costs tens of millions of dollar for a medium sized company and $300-500 million for large international corporations. There are also some possible hidden costs that may include losing some very intelligent employees after the initial implementation is done, continual imp Manufacturing Resource Planning Models Manufacturing Resource Planning Models Manufacturing Resource Planning Models under Uncertainty and Commonality for Multi-products Multi-period Multistage Production Environment Chapter 3: Literature Review In this chapter, the following areas of research are investigated to lay the foundation for the intended mathematical models: manufacturing resources planning background, benefits and limitations; manufacturing resources planning models under different uncertainties; and commonality in manufacturing resources planning models. 3.1 Evolution of manufacturing environment The field of production planning and control has undergone tremendous change in the last 50 years. Prior to the 1960s, inventory was controlled by a manual system, utilizing various techniques: stock replenishment, reorder points, EOQ (economic order quantity) (McGarrie, 1998), and ABC classifications, to name a few (Ptak, 1991). Gilbert and Schonberger (1983) provide a history of production control, while Lee (1993) comments that by the mid-1970s, enough experience of material requirements planning (MRP) had been gained and the importance of the master production schedule (MPS) was realized. In the 1950s, MRP were the first off-the-shelf business applications to support the creation and maintenance of material master data and bill-of-materials (demand-based 14 planning) across all products and parts in one or more plants. These early packages were able to process mass data but only with limited processing depth (Klaus et al., 2000). From the 1940s to the early 1960s, material control consisted of basic ‘order point formulae used to maintain a level average inventory balance. In 1965, Joseph Orlicky of the J. I. Case Company devised a new approach to material management, called material requirement planning (MRP) to serve as a platform to answer four questions, known as the ‘Universal Manufacturing Equation (Towers et al., 2005): What are we going to make, What does it take to make, What do we have and What do we have to get. The respective answer of the first three questions lie in the blueprint of production plan: the master production schedule (MPS), the bill of material (BOM) and the physical inventory records themselves. While MRP was certainly a vast improvement over simple manual method, the potential to stretch its boundary even further was soon recognized. A companys production is constrained by not only its inventory need but also by equipment and personnel capacity, facet of the plant not considered in the Universal Manufacturing Equation. MRP at its core is a time phased order release system that schedules and releases manufacturing work orders and purchase orders, so that sub-assemblies and components arrive at the assembly station just as they are required. As competitive pressures increased and users became more sophisticated, MRP evolved and expanded to include more business functions such as product costing and marketing. In 1975 the next generation system, Closed-Loop MRP, integrated capacity factors into the MRP structure and used feedback on production status to maintain the validity of planning decisions as requirements changed. One crucial link in the manufacturing decision chain was still missing- the financial point of view. With advent of computer system in the early 1980s the development of effective shop-floor scheduling tools had at that time been dominated by the top down approach of manufacturing resource planning known as MRP II for controlling production operations (Towers et al., 2005). The introduction of MRP II five years later served to bridge the gap. The operational Closed-Loop MRP plan, presented in material units such as pieces and pounds, was translated into financial dollar terms, enabling the entire organization to work off a single set of data. Simulation capability was also developed to answer ‘what if planning questions with action oriented replies. A major purpose of MRP II is to integrate primary functions (i.e. production, marketing and finance) and other functions such as personnel, engineering and purchasing into the planning process to improve the efficiency of the manufacturing enterprise (Chen, 2001, Chung and Snyder, 2000, Mabert et al., 2001). MRP II has certain extensions like rough cut capacity planning and capacity requirements planning for production scheduling on the shop floor as well as feedback from manufacturing shops on the progress of fabrication. Since the 1980s, the number of MRP II installations has continued to increase, as MRP II applications became available on mini and micro computers (Siriginidi, 2000). Like MRP, MRP II focused on the manufacturing process. Then MRP II was extended towards the more technical areas that cover the product development and production processes. Computer Integrated Manufacturing (CIM) supplied the entire conceptual framework for the integration of all business administrative and technical functions of a company, such as finance, sales and distribution, and human resources (Klaus et al., 2000). The next stage of MRP II evolution was just-in-time (JIT) methodology that combined with the plummeting price of computing to create the islands of automation in late 1980s. Over the last 60 years, many PPC systems and philosophies have been developed. These include material requirements planning (MRP), manufacturing resource planning (MRP II), enterprise resource planning (ERP), just in time (JIT), optimized production technology (OPT), advanced production scheduling (APS), supply chain management (SCM) and customer relationship management (CRM), either used individually or jointly (Koh, 2004). 3.1.1 Material requirement planning (MRP) Kulonda (2000) descried the evolution of MRP, dividing it in three different worlds. In the first world, MPS items typically are finished end items made to stock; MPS is stated in terms of forecast item demand converted to a series of production lots via time-phased order points or other rules. In the second world, the MPS could conceivably be stated as end items built entirely to order. If response time were not an issue, this approach would work quite well. Competitive force, however, often require shorter response times and inevitably some stocking of at least the longest lead time items occur. A relatively large number of different components are assembled to complete an end product that may have many specific variants. The third world of MRP has all the complexity of the second world with the additional complication that relatively numerous end items are built from relatively few raw materials. This can be visualized in part level count charts shown in 3.1. Within the MRP system a number of rules need to be specified. They include: acceptable lot sizes, safety stocks and reject allowances. There are three principles of MRP. They are: dependent on demand for the final product; netting of inventory with expected deliveries and open orders to give a balance on-hand; and time phasing by using information on lead times and needs. Three basic MRP inputs to the system are: master production schedule (MPS); the structured BOM for the MPS; and information on inventories, open orders and lead times. The aim of MRP systems is to minimize cost of inventories and maintain customer service levels. MRP benefits include the ability to rapidly re-plan and re-schedule in response to changes in a dynamic environment. It is flexible and responsive to the customer needs (Hines, 2004). The successes and disappointments of MRP as well as the key shortcomings of MRP (material requirement planning) are studied by Plenert (1999). He investigates consequences of the deficiencies means if they are not corrected. The difficulties encountered by firms in the implementation process of MRP may be traced back to a number of factors. The complexity of MRP systems, which, of course, is a relative concept varying according to the level of knowledge and experience available inside the firm prior to implementation (Wortmann, 1998, Wilson et al., 1994, Luscombe, 1994). There are usually several parameters to be initiated when implementing standard software. A considerable amount of intensive training is required. In fact, even though end-users are usually trained on a limited amount of functionality, key users need to acquire considerable technical competence. The organizations simply under-estimate the extent to which they have to change in order to accommodate their purchase. The effective management of technological change requires transformational leadership (Brown, 1994). One of the issues largely felt as critical concerns the resistance of managers and personnel to the organizational change that is induced by the adoption of new technologies. To this regard, several authors have underlined the importance of a sound involvement of shop-floor workers (Sommer, 1998, Weill et al., 1991). Valuable relevance has also been placed in the referring literature to technological problems, such as the unsuitability of MRP systems to optimize the internal workflow. In fact, frequent changes in schedules, a problem referred to as production nervousness, is an obstacle to successful implementation of MRP systems (Duchessi et al., 1998). Material Requirements Planning (MRP) has fallen into disfavor in 1980s, as demonstrated by the extensive literature and conference material coming out of organizations like the American Production and Inventory Control Society (APICS) which discuss its shortcomings (Berger, 1987). MRP has received strong challenges of its effectiveness from Japan. It is believed that the only thing which is still keeping so many manufacturers with MRP is the difficulty in converting to other (Plenert, 1999). Looking at MRPs basic philosophy, we should be able to focus our scheduling only on what materials are needed, and when they are needed (Plenert, 1990b, Ritzman et al., 1984, Chase and Aquilano, 1995, Lee and Schniederjans, 1994, Nahmias, 1997, Schroder et al., 1981). MRP allows greater flexibility in product customization. The most obvious shortcoming in MRP usage is its focus on labor efficiency. Labor is not the resource that we need to be efficient at, especially since it causes inefficiencies in our most critical resource, materials. We need to minimize our routings, shortening lead times as much as possible. We need to do our buffering using safety capacity (labor and machine capacity buffers), not safety stock (materials capacity buffers) (Plenert, 1999). We should minimize the non-value-added steps to make them as efficient as possible. The other big builders of inventory are time and the large batch size. 3.1.2 Manufacturing Resource Planning (MRP II) The theory of MRPII has been well discussed in the literature and focuses are normally put on concept, methodology, application and future development (Ip and Yam, 1998). MRP II (Manufacturing Resource Planning) is a hierarchically structured information system which is based on the idea of controlling all flows of materials and goods by integrating the plans of sales, finance and operations. The levels in an MRP II concept as outlined are applied to two plans in particular (Zapfel, 1996): Business Planning including Resource Requirements Planning (RRP) and Master Production Scheduling (MPS) including Rough-cut Capacity Planning (RCCP). Business planning level of a company identifies its objectives. The business plan integrates the plans from sales, finance and operations. The planned aggregate sales income, the planned cost of sales and operations, and all other expenses per planning period provide a basis for calculating the planned net income of the firm. The planning horizon is often a year or longer and a planning period a month or longer. To be feasible, the production plan is examined by the so-called resource requirements planning (RRP); that is, the resources required by a given aggregate production plan can be calculated. MRP II offers simulation capabilities and marries the operating system with the financial system so that what-if questions can be answered using the software system. If the business plan leads to resource requirements which are not feasible or which are unsatisfactory, the user can change the plan and a new simulation run is started to calculate the modified resource requirements. These s teps can be repeated until a feasible and satisfactory business plan is achieved. The aggregate production plan, accepted by the user, forms an important basis for master production scheduling. MRP II tends to link manufacturing, engineering, marketing, finance and management (Yusuf and Little, 1998); production operations-inventory production control, purchasing with production planning, Capacity Planning and Master Scheduling (Turbide, 1990); sales, logistics, production, engineering and supporting functions, the broad ingredients of almost all Manufacturing organization (Ip and Yam, 1998). It may also include costumer service- order entry, sales analysis, forecasting- with financial applications. The total is a single information control system that shares data among the various applications for the mutual benefit (Turbide, 1990). MRP II operates in a â€Å"pull† manner at the planning level. It is used for high-level planning of demand and inventory functions and preliminary capacity evaluations. Ip and Yam (1998) afford a master plan which integrates the technology and management of the strategic elements, problem definition, MRP II solutions, technical and procedural design, and implementation management in order to minimize the frustration and conflicts universally found in MRP II implementation process as well as to reduce disconnection amongst different stages of the implementation process. Ideally MRP II addresses operational planning in units; financial planning in money terms, and has simulation capability to answer â€Å"what-if† questions. It is made up of a variety of functions, each linked together: business planning, production planning, master production scheduling, material requirements planning, capacity requirements planning and the execution systems for capacity and priority. Outputs from these systems would be integrated with financial reports, such as the business plan, purchase commitment report, chipping budget, inventory production in money terms, etc. Manufacturing Resource Planning is a direct outgrowth and extension of a Material Resource Planning (MRP) (Higgins et al., 1998). 3.1.2.1 MRP II definitions: ‘If I had to sum up MRP II in one word, the word I would choose is discipline. Allowed three words, they would be discipline/performance measurement Sheldon (1991). He detailed the total implementation process, from inception to completion and divided the process into six steps, namely, education, common goal, fitness for use, accountability, performance measurement and systems/tools. In Table 3.1, the definition of MRP II is summarized. Table 3.1: Definition of MRP II Definition Reference MRP II is a well-defined process or set of calculations that is used to develop plans for the acquisition of the materials needed for production. (Turbide, 1990) MRP II is an information control philosophy that is often translated into software products containing, among other capabilities the MRP calculation function. MRP II is a system designed for managing all the resources of a manufacturing company. It consists of a comprehensive set of planning tools and techniques which integrate all functional areas of an organization (Tremblay, 1991) MRP II is a method for the effective planning of all resources of a manufacturing company. (Dougherty and Wallace, 1992) Manufacturing resource planning (MRP II) is a long promising method that simplifies all the complex tasks of manufacturing management. (Chambers, 1996) MRP II is a hierarchically structured information system which is based on the idea of controlling all flows of materials and goods by integrating the plans of sales, finance and operations. (Zapfel, 1996) Manufacturing Resource Planning (MRP II) is a structured approach to optimize a companys internal Supply Chain. (Higgins et al., 1998) MRP II is a method for the effective planning of all resources of the manufacturing company. MRP II is an effective management system that has excellent planning and scheduling capability which can offer dramatic increases in customer service, significant gains in productivity, much higher inventory turns, and greater reduction in material costs. (Ip and Yam, 1998) MRP II system is a proactive materials strategy. It is a dynamic system and can adapt to change as it reflects upon the latest information in its planned order releases. (Towers et al., 2005) 3.1.2.2 MRP II benefits: The potential benefits those may receive from the MRP II are summarized below: Empirical research suggests that companies able to implement MRP II successfully report enhanced competitive positions, improved customer service levels, a better financial position, increased plant efficiency, heightened morale in production, more effective co-ordination with marketing and finance, more efficient production scheduling and reduced inventory levels, fewer component shortages, reduced manufacturing costs and lead times and improvements in inventory turnover (Humphreys et al., 2001, Brown and Roberts, 1992, Roberts and Barrar, 1992). When customers and suppliers (internal or external) request information that have been fully integrated throughout the Supply Chain or when executives require integrated strategies and tactics in areas such as manufacturing, inventory, procurement and accounting, MRP II systems collate the data for analysis and transform the data into useful information that companies can use to support business decision-making (Broatch, 2001). MRP II systems, if implemented successfully, enhance and redesign business processes to eliminate non-value-added activities and allow companies to focus on core and truly value-added activities (Broatch, 2001). The focus of MRP II computer systems is on the efficiency and effectiveness of the internal processes. It offers a way to streamline and align business processes, increase operational and manufacturing efficiencies and bring order out of chaos (Nah, 2002). MRP II systems minimize the time and effort required to process business data and maximizes the application of that information. By facilitating data exchange throughout the organization, a MRP II system enables to coordinate such crucial activities as production planning, material planning, capacity planning and shop floor control (Plenert, 1999). MRP II is concerned mainly with scheduling of activities and the management of inventories. It is particularly useful where there is a need to produce components, items or sub-assemblies, which themselves are later used in the production of a final product. Organizations can improve their overall customer service through consistently meeting delivery promises, shortening delivery times and having products on hand when customer orders are received. MRP II can provide the necessary management information to ensure delivery promises can be kept. Where there is volatility in demand with unpredictable customer requirements and complex product structures, the information management capability of MRP II is particularly relevant (Towers et al., 2005). A well implemented MRP II system can: provide an organization with reliable lead times; meet its service delivery performance requirements; contribute to stable and consistent lead times and well informed decision-making; maintain lower level of safety stock; reduce the average inventory level and reduce inventory investments to a minimum (Towers et al., 2005). The uncertainty of demand can be minimized due to the fact that MRP II can provide an organization with a clear picture of the demand for a particular item and when organizations know their future needs they can negotiate their purchase agreements with suppliers and receive quantity discounts improving their financial position (Towers et al., 2005). Successful MRP II users have typically reported as much as 15 percent gain in manufacturing productivity, 50 percent reduction in overtime, 33 percent reduction in inventory investment and 80 percent reduction in inventory shortages (Towers et al., 2005). MRP II provides better control over the quantity and timing of deliveries of raw materials, parts, sub-assemblies and assemblies to production operations. 3.1.2.3 Pitfalls of MRP II: The main pitfalls of MRP II from various authenticated literature are listed below: Impressive though the benefits are, there is evidence suggesting that, as with so many similar technologies, few companies are able to maximize them. White et al. (1982) consider that 50 per cent of organizations do not achieve their objectives. Archer (1991) has said that 70 per cent of systems may be regarded as failures. Ho et al. (1992) has stated that ‘few firms have been able to realize the full potential offered by MRP II. While relative percentages of successful and unsuccessful implementations differ from study to study, each demonstrates a surprisingly high failure rate. Implementation of MRP II system requires major managerial innovations and organizational changes in addition to the installation of computer hardware and software (Lau et al., 2002). The heart of an MRP II system is MRP. MRP II does consider resource capacity level when generating the POR schedule. If an overload is identified, it will flag and recommend the user to reschedule. The question is how frequent should the user reschedule? Both Ho et al. (1995) and Sridharan and LaForge (1989) showed that rescheduling induces system nervousness, which leads to further underperformance. MRP II has been criticized by a number of authors on the grounds that few benefits accrue for high implementation costs (Burns et al., 1991, Sum and Yang, 1993). Unsuccessful MRP II implementation not only deprives companies of potentially huge benefits but also results in financial losses and disruptions in operations (Towers et al., 2005). MRP II concept is only partially suited to production planning in the case of uncertain demand. There is little help with the necessary aggregation and disaggregation process, especially when demand uncertainty exists. It is difficult for the user of MRP II to find a robust aggregate plan for master production schedule (Zapfel, 1996). Critics of MRP II points to the rigidity of the process: the logic that demands batches and multiple; the fixed lead time which takes no account of current capacity; the standard queue concept in front of a work center etc. Increasing competitive pressure, manifested by reduced lead times, smaller batch sizes, lower stocks and ever more demanding customers have pushed MRP II to its limits (Porter et al., 1996). 3.1.2.4 Reasons for failure: One of the principal reasons for the failure of MRP II and other large technologically sophisticated systems is that organizations simply underestimate the extent to which they have to change in order to assimilate what is in reality a new way of running the company (Humphreys et al., 2001). MRP II failure have embraced technical problems; the difficulties involved in selecting and evaluating cost effective MRP II packages and a host of historical, cultural, structural and managerial issues (White, 1980, Kinnie et al., 1992, Wight, 1990, Wilson et al., 1994); expertise needed to implement and use effective MRP II systems; lead times management; design of the production environment, routing and quality information; Infinite capacity availability; batch and lot sizing (Higgins et al., 1998). An accurate demand forecast is an essential foundation for the successful operation of an MRP II system. Poor sales forecasting had been identified by senior management as one of the main reasons for the MRP II implementation failure (Humphreys et al., 2001). 3.1.3 Enterprise Resource Planning (ERP) The Gartner Group of Stamford, CT, USA, coined the term ERP in the early 1970s to describe the business software system. The name ERP was derived from the terms material requirements planning (MRP) and manufacturing resource planning (MRP II). The maturity stage of ERP occurred in the mid-1990s. ERP is the third generation of planning software. Material requirements planning (MRP) was the first generation, manufacturing resource planning (MRP II) the second and ERP the third. The primary purpose of ERP is to create a seamless integration of interrelated information throughout the business organization. A system of software programs is used to develop the necessary links between the various business functions so that needed information is readily available. There are 8 (eight) major functions and 33 (thirty three) sub-functions, as well as 22 (twenty two) primary modules and several sub-modules (Umble et al., 2001). A typical ERP implementation takes anywhere from one to five years (M abert et al., 2003). ERP system is not just a pure software package to be tailored to an organization but an organizational infrastructure that affects how people work and that it â€Å"imposes its own logic on a companys strategy, organization, and culture† (Shehab et al., 2004, Davenport, 1998, Lee and Lee, 2000). 3.1.3.1 Definition of ERP When customers and suppliers request information that have been fully integrated throughout the value chain or when executives require integrated strategies and tactics in areas such as manufacturing, inventory, procurement and accounting, ERP systems collect the data for analysis and transform the data into useful information that companies can use to support business decision-making. They allow companies to focus on core and truly value-added activities (Nah, 2002). These activities cover accounting and financial management, human resources management, manufacturing and logistics, sales and marketing, and customer relationship management. Table 3.2 shows definitions of ERP, cited in different literatures. Table 3.2: Definition of ERP Definition Reference ERP systems are enterprise-wide on-line interactive systems that support cross-functional processes using a common database. ERP systems are designed to provide, at least in theory, seamless integration of processes across functional areas with improved workflow, standardization of various business practices, and access to real-time up-to-date data. (Davenport, 1998) ERP systems are complex and implementing one can be a challenging, time consuming and expensive project for any company. ERP is not only an IT solution, but also a strategic business solution. As an IT solution, ERP system, if implemented fully across an entire enterprise, connects various components of the enterprise through a logical transmission and sharing of data. (Norris et al., 2000) ERP is a commodity, a product in the form of computer software. (Klaus et al., 2000) ERP is a development objective of mapping all processes and data of an enterprise into a comprehensive integrative structure. ERP is a key element of an infrastructure that delivers a solution to business. ERP a method for the effective planning and controlling of all the resources needed to take, make, ship and account for customer orders in a manufacturing, distribution or service company. (Nah, 2002) ERP system is a packaged business software system that allows a company to automate and integrate the majority of its business processes, and share common data and practices across the entire enterprise. (Seddon et al., 2003) ERP is a â€Å"do it all† system that performs everything from entry of sales orders to customer service. It attempts to integrate the suppliers and customers with the manufacturing environment of the organization. (Shehab et al., 2004) 3.1.3.2 Benefits of ERP ERP systems have certain advantages such as low operating cost and improving customer service (Shehab et al., 2004). In implementing an ERP solution, an organization can quickly upgrade its business processes to industry standards, taking advantage of the many years of business systems reengineering and integration experience of the major ERP vendors (Myerson, 2002). The practical benefits of ERP are divided into five aspects by Seddon et al. (2003): operational, managerial, strategic, IT infrastructure, and organizational (Table 3.3). Table 3.3: Benefits of ERP Operational benefits: By automating business processes and enabling process changes, they can offer benefits in terms of cost reduction, cycle term reduction, productivity improvement, quality improvement, and improved customer service. Managerial benefits: With centralized database and built-in data analysis capabilities, they can help an organization achieve better resource management, improved decision making and planning, and performance improvement. Strategic benefits: With large-scale business involvement and internal/external integration capabilities, they can assist in business growth, alliance, innovation, cost, differentiation, and external linkages. IT infrastructure benefits: With integrated and standard application architecture, they support business flexibility, reduced IT cost and marginal cost of business units IT, and increased capability for quick implementation of new applications. Organizational benefits: They affect the growth of organizational capabilities by supporting organization structure change, facilitating employee learning, empowering workers, and building common visions. 3.1.3.3 Disadvantages of ERP: ERP systems have some disadvantages due to the tight integration of application modules and data. Huge storage needs, networking requirements and training overheads are frequently mentioned ERP problems. However, the scale of business process re-engineering (BPR) and customizations tasks involved in the software implementation process are the major reasons for ERP dissatisfaction. ERP projects are large, costly and difficult and that they require large investment in capital and staff and management time (Adam and ODoherty, 2000). Yen et al. (2002) identified the following disadvantages of ERP: Its high cost prevents small businesses from setting up an ERP system The privacy concern within an ERP system Lack of trained people may affect ERPs efficiency Implementation of an ERP project is painful Customization is costly and time-consuming. Some of these shortcomings have been discussed by OConnor and Dodd (2000). Implementation of an ERP system is an extensive, lengthy and costly process, typically measured in millions of dollars. An ERP implementation can take many years to be completed and cost tens of millions of dollars for a moderate size firm and upwards of $100 million for large international organizations (Mabert et al., 2000). Even with significant investments in time and resources, there is no guarantee of a successful outcome (Mabert et al., 2003). According to Shehab et al. (2004), the ERP systems are complex and implementing one can be difficult, time-consuming and expensive project for a company. It costs tens of millions of dollar for a medium sized company and $300-500 million for large international corporations. There are also some possible hidden costs that may include losing some very intelligent employees after the initial implementation is done, continual imp

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The questions in this sample exam are mostly quantitative, but you should also expect some qualitative ones, such as true/false questions, on the exam. I did not include any here, as each true/false will require a different reasoning than others. Question 1: Consider a project with the following risk-free cash flows: t = 0t = 1t = 2 -40 20 25 Suppose that one year zero-coupon bonds yield 6% and two year zero-coupon bonds yield 8%. 1a) Find the NPV of the project. 20/(1+6%)+25/(1+8%)^2-40=0. 3014 1b) Describe the tracking portfolio for this project. FV=25 and 20 c) Describe how you could finance the project to make arbitrage profits at t = 0 (i. e. , a sure cash inflow at t = 0 without any future obligation). Please be explicit about what assets you would invest in, how much each would cost at t=0, and what each would pay at t=1 or t=2. (Hint: You will have to consider investing in the project and a portfolio at the same time). Short sell bond by 40. 3014, 18. 8679 and 21. 4335 1d) Su ppose now that instead of the zero coupon bonds described above, there are two risk-free bonds in the market (Bond A and Bond B) that can be described as follows: )  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Bond A pays a $10 coupon at t=1 and matures at t=2 when the bondholders will receive $110. Today (i. e. , at t=0) the market price of the bond is Ba = $104. 743. b)  Ã‚  Ã‚  Ã‚  Ã‚  Bond B pays a $20 coupon at t=1 and also matures at t=2 when the bondholders will receive $95. Its price today is Bb=$100. 790. Calculate the NPV of project X. (Hint: Note that the interest rates in the economy may have changed. To solve this question, you will need to form a tracking portfolio of the project). Question 2: A lot is suitable for either six or nine condominium units.Assume: †¢ Risk free rate is 10% †¢ Per unit construction costs (now or next year): $100,000 for building with six units $110,000 for building with nine units †¢ Assume that construction does not take any time; i. e. , if we d ecide to build (either now or next year), we can do so and sell the condos immediately †¢ Current price of each unit is $140,000 †¢ Per year rental rate is $10,000 per unit (to be received at the end of the year) †¢ Next year, if market conditions are: Favorable, condos sell for $186,000 Unfavorable, condos sell for $116,000 a) Suppose we decide to build this year and sell immediately. Should we build six or nine units? What is the value of the lot given that we build this year? 6*(140-100)=240 9*(140-110)=360 build 9 units 2b) Suppose we decide to wait and make the construction decision next year. Calculate the value of the lot now. 2c) Suppose that as in part a, we decide to build today, but we do not sell immediately. Instead, we rent out the condos for a year, and sell them next year. How does the value of the lot change relative to your answer in part a?Please answer without doing any calculations. Question 3: A gold mine will produce all of its output two years from now. The mine has a reserve of 100 pounds of gold. The gold can be extracted at no cost and sold in year 2. We have the following data: †¢ The two-year forward price of gold is $10,000 per pound today. †¢ In year 2, gold price will be either $14,000 per pound, or $8,000 per pound. †¢ The one-year risk-free rate is 10%. The risk-free rate will remain at 10% next year too. 3c) Now suppose that there is some uncertainty about the reserves of the mine.The mine’s reserves are either 100 pounds or zero, with each outcome equally likely. In year 1, we will learn whether the reserves are 100 pounds or zero. We receive an offer today for the mine that is conditional on the reserves. The bidder offers $1. 1 million if reserves prove to be 100 pounds, but only $55,000 if the reserve turns out to be zero. The offer is valid for two years. In either case, the payment is to be received in year 2 if the offer is accepted. What is the value of the mine today? Question 4: A diversified firm consists of two divisions, industrial equipment and beer roduction. A year from now, the industrial equipment division will produce either $150 if the economy is in expansion, or $50 if the economy is in a recession. The beer division will make $30 if the economy is in expansion, but $170 if the economy is in recession. Each state of the economy is equally likely. The firm has outstanding bonds with face value $120 to be repaid a year from now, and 100 outstanding shares. Assume that the risk-free rate is zero, all investors are risk-neutral, there are no taxes, and no bankruptcy costs. a) What is the current market value of the debt? What is the current share price? 4b) Now suppose that the firm decides to sell the beer division, and pay the proceeds to its shareholders as a dividend. How much will the beer division sell for? Immediately after this decision is announced, but before the actual sale and the dividend takes place, what is the market value of the bond s? What is the per share price? 4c) Suppose now that rather than directly selling the beer division, the firm spins it off.Specifically, for each outstanding share of the original company, one new share representing an ownership claim in the newly created beer firm is issued and is given to shareholders. The new beer company assumes half of the face value of the outstanding debt. After the spin-off, the original shares keep trading (now representing a claim only on the industrial equipment business), while the newly issued beer shares start trading separately. Immediately after this spin-off takes place, what is the market value of the debt of the industrial equipments firm?What is the market value of the debt of the beer production firm? What are the per share prices of each company? 4d) Show that the Modigliani-Miller Proposition holds, i. e. , that the total firm value is independent of the capital structure decisions of the firm in parts a, b, and c. Question 5: Hollifield Inc. has a current market value of $10,000,000, which is composed of $3,000,000 perpetual risk-free debt and $7,000,000 equity with 500,000 shares outstanding. Hollifield plans to announce that it will issue an additional $2,000,000 of perpetual bonds (also risk-free) and use these funds to repurchase equity.The bonds will have a 6-percent coupon rate, which is the risk-free rate. After the sale of the bonds and the share repurchase, Hollifield will maintain the new capital structure indefinitely. The corporate tax rate for Hollifield is 40% and there are no personal taxes. 5a) What will the stock price be immediately after Hollifield announces its plan to issue bonds and repurchase equity? What will the total market value of the firm's equity be immediately after Hollifield announces its plan to issue bonds and repurchase equity? 5b) How many shares will Hollifield repurchase?What will be the market value of Hollifield's equity after the new bond is issued and the shares are repurchased ? 5c) Suppose that after the firm announces its intention to recapitalize but before the pricing and the issuance of the new bond take place, unexpectedly, the president announces that corporate taxation will be immediately removed. Find the effect on the stock price and on the price of the current debt right after the president’s announcement is made. (Note: Assume that removal of taxes is permanent and has no other effects on the firm’s investment policy or in the economy). ———————– [pic]

Review for psychology pavlovs theory Essay

IDENTIFYING THE COMPONENTS OF A CLASSICALLY CONDITIONED RESPONSE: For each of the following identify the UCS, UCR, CS and CR. 1.Alexander is four years old. One night his parents decided to light a fire in the family room fireplace. A burning ember jumped out of the fireplace and landed on Alexander’s leg, creating a nasty burn. He cried because the burn hurt. A week later, when Alexander’s parents start to light another fire in the fireplace, Alexander begins to cry. (UCS: burn; UCR: crying; CS: fire in the fireplace; CR: crying) 2.Emily is driving to work during a heavy snowstorm when the brake lights on the car ahead of her come on. She hits her brakes but is unable to avoid hitting the car. She is badly shaken up in the accident. The next time she is driving in the snow she notices that she tenses up every time she sees brake lights come on ahead of her. (UCS: accident; UCR: shaken up; CS: driving in the snow; CR: tensing up) 3.Bill’s mom followed the same routine before serving dinner–she would put ice in the glasses and then call â€Å"come and get it, dinner’s ready†. Immediately upon hearing those words, Bill would quickly run down the stairs. After awhile, Bill would come running down the stairs when he heard the ice hitting the glasses. (UCS: mom calling â€Å"come and get it, dinner’s ready†; UCR: running down the stairs; CS: ice hitting the glasses; CR: running down the stairs) 4.Gary is the client relations officer at his firm. The phone in his office has â€Å"caller id† so that the client can be identified before he answers the phone. After receiving a call with a rude client, Gary would be very annoyed and agitated. He began to notice that the rude calls tended to come from clients that were identified by a â€Å"1-800† number on the caller id. Therefore, whenever a â€Å"1-800† number appeared, he would become annoyed. (UCS: call from a rude client; UCR: annoyance and agitation; CS: â€Å"1-800† number on the caller ID; CR: annoyance) 5.When Ann was a college freshman, she was assigned to live in a very old dormitory. The old plumbing system produced a problem when one person was taking a shower and one person need to flush the toilet–shortly after a person flushed the toilet, all of the cold water left the shower leaving only the hot water. The first time this happened, Ann was scalded by the hot water. She yelped and jumped back. The next day, as soon as she heard the toilet  flush she jumped back. (UCS: hot water on body; UCR: jumping back; CS: toilet flushing; CR: jumping back) IDENTIFYING OUTCOMES IN OPERANT CONDITIONING: Indicate whether each situation involves positive punishment, negative punishment, positive reinforcement or negative reinforcement. 1.Fred gets a speeding ticket. (positive punishment) NOTE: This example can be used to demonstrate one of the limitations of punishment–suppressing behavior but not eliminating it. Students will usually indicate that getting a speeding ticket leads some people to buy a radar detector! 2.Emily’s professor compliments her writing ability. (positive reinforcement) 3.Zachary is expelled from school for cheating on an exam. (negative punishment) NOTE: This example can be used to demonstrate that one person’s punishment is another person’s reinforcement. Expulsion from school is intended to be negative punishment–removing the privilege of attending school, presumably a pleasant stimulus. However, students could view it as negative reinforcement–removing the annoying constraint of being forced to attend school, known (at least to some students) to be an unpleasant stimulus! 4.Leon goes to the health club for a rare workout and pushes himself so hard that his entire body aches and he throws up. (positive punishment) 5.Linda buys her daughter a candy bar so that she will not be embarrassed by her daughter’s temper tantrum. (negative reinforcement for Linda, positive reinforcement for the daughter) NOTE: This example can be used to demonstrate that parents can unintentionally reinforce a child’s behavior–a nice warning for the students in class who may some day be parents. 6.George shoots up heroin to ward off the symptoms associated with heroin withdrawal. (negative reinforcement) NOTE: Some students will misidentify this as an example of positive reinforcement. They will indicate that shooting up heroin is pleasurable and presentation of a pleasant stimulus is the definition of positive reinforcement. Tell students that a situation can be viewed as either positive or negative reinforcement depending on how it is viewed. Shooting up heroin could be considered positive reinforcement if it is viewed from the perspective of producing a pleasurable â€Å"high† feeling.  However, if it is viewed from the perspective of avoiding the aversive stimulus of withdrawal symptoms then it is an example of avoidance conditioning–a type of negative reinforcement. 7.Edna constantly complains about her husband to colleagues at work. Her co-workers get tired of her and no longer provide her with sympathy. (negative punishment) TYPES OF FORGETTING: For each of the following indicate which type of forgetting is responsible for each situation: Alexander is having trouble using his new computer program because he keeps entering commands from the program he used to use. (proactive interference) Carolyn is in a serious boating accident. Afterwards, she cannot remember her name or where she lives. (retrograde amnesia) Although Scott used to drive a stick shift car, he can not remember much about how to shift gears manually since lately he has been driving an automatic car. (retroactive interference) Jerry is unable to remember the name of a restaurant when his friend, George, comes by and says, â€Å"I feel like I have died and gone to heaven because Joan has finally agreed to go out with me†. Suddenly, Jerry remembers the name of the restaurant–Taco Heaven. (lack of an appropriate retrieval cue) Robert was the passenger in a car involved in a head-on collision. He has been unable to remember anythi ng that has happened since the day of the accident. (anterograde amnesia)

Archaeology Clubs for Amateurs

Archaeology Clubs for Amateurs Archaeology clubs and societies are one of the best ways for aspiring amateur and professional archaeologists to get started in their passion: find a group of people who also want to learn about archaeology or work as volunteers on archaeological digs. Even if youre not in school, or ever plan to be a professional archaeologist, you too can explore your passion for the field and even get trained and go on excavations. For that, you need an amateur archaeology club. There are numerous local and regional clubs throughout the world, with activities that range from Saturday morning reading groups to full-fledged societies with publications and conferences and opportunities to work on archaeological excavations. Some amateurs write their own reports and give presentations. If you live in a fairly good-sized city, chances are there are local amateur archaeology clubs right near you. The trouble is, how do you find them, and how do you pick the right one for you? Artifact Collector Groups There are, at heart, two kinds of amateur archaeology clubs. The first kind is an artifact collector club. These clubs are primarily interested in artifacts of the past, looking at artifacts, buying and selling artifacts, telling stories about how they found this artifact or another. Some collector groups have publications and regular swap meets. But most of these groups are not really invested in archaeology as a science. This is not to say that collectors are bad people or not enthusiastic about what they do. In fact, many amateur collectors register their collections and work with professional archaeologists to identify unknown or endangered archaeological sites. But their primary interest is not in the events or people of the past, it is in the objects. Art Versus Science To professional archaeologists (and many amateurs), an artifact is far more interesting within its context, as a part of an ancient culture, as part of the entire collection (assemblage) of artifacts and studies from an archaeological site. That includes intensive artifact studies, like where an artifact came from (called the provenience), what kind of material it was made from (sourcing) when it was used (dating), and what it might have meant to people of the past (interpretation). Bottom line, by and large, collector groups are more interested in the artistic aspects of archaeological artifacts: nothing wrong with that, but thats only a tiny aspect of the totality of learning about the cultures of the past.   Avocational Archaeology Groups The other type of archaeology club is the avocational club. The largest of these in the United States is the professional/amateur run Archaeological Institute of America. This type of club also has newsletters and local and regional meetings. But in addition, they have strong ties to the professional community, and sometimes publish full-fledged publications with reports on archaeological sites. Some sponsor group tours of archaeological sites, have regular talks by professional archaeologists, certification programs so you can get trained to volunteer at excavations, and even special sessions for children. Some even sponsor and help conduct archaeological surveys or even excavations, in conjunction with universities, that amateur members can take part in. They dont sell artifacts, and if they talk about artifacts, it is within context, what the society who made it was like, where it came from, what it was used for. Finding a Local Group So, how do you find an avocational society to join? In every American state, Canadian province, Australian territory, and British county (not to mention almost every other country in the world), you can find a professional archaeological society. Most of them keep strong ties with the avocational societies in their region, and they will know who to contact. For example, in the Americas, the Society for American Archaeology has a special Council of Affiliated Societies, in which it maintains close contact with avocational groups that support professional archaeological ethics. The Archaeological Institute of America has a list of collaborating organizations; and in the UK, try the Council for British Archaeologys website for CBA Groups. We Need You To be perfectly honest, the archaeological profession needs you, needs your support and your passion for archaeology, to grow, to increase our numbers, to help protect the archaeological sites and cultural heritage of the world. Join an amateur society soon. Youll never regret it.

Research Paper Sample on Australia The System of Government

Research Paper Sample on Australia The System of Government As Australia prospers as a nation the debate to change from its current status of a constitutional monarchy to a Republic increasingly gains momentum. However, the 1993 referendum showed the majority of Australians don’t support this change and as John Howard an avowed monarchist colloquially argues â€Å"If it it’s not broken, don’t fix it†. Australia should stop arguing this issue and move forward as we have done so well in the past. In 1901 Australia’s separate colonies united under a constitutional monarchy embracing our independence while still respecting the cultural ties with Britain. The evolution of Australia from British colony to independent nation has seen many amendments to the constitution including The Australian Act 1986, Statute of Westminster and oath of citizenship. The Australian Republic Movement (ARM) established in 1993 by Labour Prime Minister Paul Keating argues Australia should accelerate towards a Republic despite the process is with far reaching ramifications and without substantial gains. Since the early 1900’s the pro- republic stance after 102 years advocates Australians to adopt an unclarified alternative and as Kerry Jones states, â€Å"accept an unstable system that is complex and deeply flawed†. (Article) Therefore, it can be seen that Australia’s constitutional monarchy that has matured to be a unique and effectively Australia’s system of govern ment be continued to serve us in the future as it has in the past. In 1998 a $35 million constitutional Convention comprising of 152 delegates agreed on a sole preposition (Appendix 1) being of minimal constitutional change in order for Australia to proclaim Republic. As a consequence of John Howard’s ultimatum various Republican models were not explored. In I999 a constitutional referendum costing $55 million, 54.87% of Australians voted against replacing the Queen and Governor General with a President who would be appointed by a two third majority of the members of the Commonwealth and, 60.60% of Australian voted against an insertion of a preamble into the constitution. (Appendix 2) The defeated referendum result contradicted the opinion shown in polls earlier (Appendix 1) that the majority of Australians supported a Republic. It seems in theory Australians want a Republic, albeit in practise active republicans have always been a minority. The path to a Republic debate now has little chance of being successful without John Howard’s support and when only 8 referendums out of 42 to change the constitution have succeeded. Australian’s are sceptical. Les Murray a Republican, has said Australians won’t vote for a republic unless they trust it and ‘they sure can’t trust the one they are being offered at the moment (Australian 20 September 1993) Not only has the Republic debate divided Australia, it has divided republican’s themselves. (Appendix 5) â€Å" Put any two Republicans together and they will disagree on what a republic entails† (The Defender Issue 1 May 1999 page 2) Considering, a clarified and vague republican model has been the sole proposition it is better to protect what Australia knows has already worked. To introduce an undefined Republican model Australians may possibly condemn future generations to live under an inferior system of government. A republican model must be analysed before being implemented and not after. Considering, this republican model is a blueprint it in Australia’s best interests to stay a constitutional monarchy. The ARM aimed to make minimum constitutional changes necessary to achieve a viable Federal Republic of Australia. Therefore, it’s as if Australia need sacrifice nothing in terms of the integrity of our present political institutions and the idea that a Republic is just a change in tittle. At the same time the Republicans argue, ‘Australia needs to become a republic to demonstrate its independence, identity, and maturity.’(Mark Mc Kenna republic.org.au) Australia has by far demonstrated to have cut the umbilical cord from the motherland and formed a mature independent identity while still respecting out traditional means. â€Å"Under our system of government Australia long ago achieved complete independence symbolised by the Queens title being changed, by her own consent and by Act of the Australian Parliament, to Queen of Australia.† (norepublic.com.au/) Appropriate amendments to the constitution have reflected the shift in Australian society and kept up to date with the times. In 1994 the oath of allegiance was amended to remove reference to the Crown (Appendix 3) to reflect core values in Australia. The Australian Act 1986, condensed the Queens power in Australia and proclaimed that â€Å"the United Kingdom parliament now has no legislative authority whatsoever in respect of Australia† (www.alphalink.com.au) Furthermore, the role of the Governor General a rather ceremonial position has changed from being formally a Queens’s representative appointed by the British government, into an Australian appointed by the PM who takes advice from Australian Ministers. Australia’s governor general, Guy Green from Tasmania was only recently nominated by the Prime Minister. By becoming a Republic would not be an affirmation of our nationhood as we already play an independent role. The fact Australia held the Olympic games, raises their own army and diplomatic corps, engages in their own foreign affairs, treaties, determines al one their future and makes decisions eg going to Vietnam War without Britain, proves Australian’s independence from Britain. The Commonwealth is part of our history and constitutional development that serves proudly as out own. The Republicans major argument that Australia is not independence does not exist. The Republicans have failed to consider the intricate ramifications of an Australian Republic and even what shape the new constitution should take. At the constitutional convention in 1999 no assessment of such developments were proposed and central answers are overlooked. While Republicans want to replace the Queen the enormous implication of doing so are not manufactured and new institutional foundations and restrictions of the new office established. By removing the Queen new offices must be devised and complicated mechanisms implemented. Becoming a Republic raises issues that are still not answered such as; what will become of Crown land, a resolution to the position of the states, who will be the new president, method of appointment, length of tenure, power restrictions and importantly how will be president be appointed. â€Å" A president selected by the Prime Minister would lack democratic legitimacy; a president elected by the people would have more authority than a Prime mi nister elected by MP’s†. (Quote) This de position power inturn can cause struggles for power, feasible political deadlock and mean enormous alterations to the constitution. Additionally, the Australian states individually have their own monarchist constitution and in the event of become a Republic it is unclear if monarchies remain and, if not what is required to bring them into conformity with a republican Commonwealth. It can be seen that the Republican movement is far from an improvement from a constitutional monarchy. A major flaw is that the model ignores to even recognise reconciliation, an essential component of any future republic. â€Å"To declare a republic that failed to embrace reconciliation as one of it’s founding principles would not be a republic at all- nor would it be a Republic would having† (Mark Mc Kenna) Australia should vote No to Republic that does not answer Australia’s needs and will be extremely costly financially, and emo tionally. If we became a Republic the Republican advisory Committee estimated in 1994 the election for a president would cost $45 million minimum each time. The constitutional monarchy should be accepted to incur no further financial costs to taxpayers on the Republican issue. The Federal Parliament’s time without doubt could be better spent debating more relevant and crucial issues. In practise Australia is a Republic in every sense worth worrying about, the constitution derives from the people, the government is democratically elected and the PM answers to parliament. In an Advisory Committee’s report stated Australia is a ‘crowned’ Republic. The Queen, Elizabeth II is a leading figurehead as her political responsibilities and power is very limited. In Australian she is evident on Australia’s money and far from foreign as she’s in the papers and television. There is a generation of Australian’s that take great pride in the constitution and respectably admire the Queen. (Appendix _) The Queens is an educated faithful monarch who republican admit is more appropriate for the job. â€Å"quote†. Economically a Governor General would cost far more than a Queens who only has her security paid for when in Australia. The Queens still has a place in our democratic society and to replace the Queens would create enormous upheaval with no advantage. It is the Governor- General, and not the Queen, who exercise the powers of the Head of State, so that becoming a republic means money, time lost on a constitutional re-write that will give us what we already have. â€Å"If the republicans are right and nothing will really change, why bother? If, on the other hand, they’re playing down the extent of flow-on changes, why take the risk’? (Quote) Republican base their argument on the need to being independent and have an Australian as head of state but when we already have both there is no reason to risk changing. The republican movement may be an inevitable event in Australia’s with a welcoming future generation. It is important to maintain an open mind to different Republican models. It is not out of the question undertake radical amendments to their constitutions it must be remembered in the 1890’s the dramatically changes turned out to be a successful constitution. It seems in theory Australians want a republic but not in practise, until terms offered are clarified and understood. There is a low level of public understanding on the matter and a number of hurdles to jump before Australia can even comp template implementing a Republican model. It’s only when political division is ironed out and society gains the real Republican agenda a referendum would be of no success.