Monday, December 31, 2012

3 January Knowledge History - Science, Engineering and Management

1 January Knowledge History - Science, Engineering and Management


Happy New Year to all readers


Patents Issue



Birthdays - Nobel Prize Winners
1941 Sir Martin Evans
Nobel Lecture: Embryonic Stem Cells
http://www.nobelprize.org/nobel_prizes/medicine/laureates/2007/evans-lecture.html

Birthdays
1894 - Satyendra Nath Bose  - Boson is named after him
1954 - Gary Hamel
           http://www.garyhamel.com/
           Gary Hamel on Innovating Innovation - 11 December 2012
           http://www.forbes.com/sites/stevedenning/2012/12/04/gary-hamel-on-innovating-innovation/
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May 2011 video
____________

Nobel prize winners with birthdays in January
http://www.nobelprize.org/nobel_prizes/lists/birthdays.html

Management Knowledge Revision



Economics of Advertising - Economics for the CEO - Managerial economics

Managerial Economics of Basic Price - Joel Dean


Knowledge News 2013

3D Printing application Making a statue of yourself. Interesting possibility.

Science, Engineering and Management Knowledge History of the Day - Index for the Year

Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center

4 January Knowledge History - Science, Engineering and Management



Patents Issue

1921 - Battery Tray - to Edison - 1,364,358
           http://www.google.com/patents/US1364358
         
2011 - Tire - Assigned to Goodyear
           http://www.strutpatent.com/patent/d0630160/tire (d indicates design)



http://www.strutpatent.com/date/2011/january/04/all

Birthdays

Nobel Prize Winners

1940 Brian David Josephson
        The Discovery of Tunneling Superccurrents
         Nobel Lecture http://www.nobelprize.org/nobel_prizes/physics/laureates/1973/josephson-lecture.html

1940 Gao Xingjian
         The Case of Literature
          Nobel Lecture - http://www.nobelprize.org/nobel_prizes/literature/laureates/2000/gao-lecture-e.html

1945 Richard R. Shrock
        Multiple Metal Carbon Bonds for Catalytic Metathesis Reactions
        http://www.nobelprize.org/nobel_prizes/chemistry/laureates/2005/schrock-lecture.html 

Management Knowledge Revision


Operations Strategy and Competitiveness - Review Notes

Optimizing the Use of Resources with Linear Programming


Science, Engineering and Management Knowledge History of the Day - Index for the Year

Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center

5 January Knowledge History - Science, Engineering and Management

Issue of Patents

1892 - Art of Electrolytic decomposition - Edison - 466,460
           http://www.google.com/patents/US466460

2010 Patent issued for the cartridge and the method of preparation of beverages in a machine. Kraft Foods
        http://www.google.com/patents/US7640843
2010 Robot Arm - D0607477
        http://www.strutpatent.com/patent/d0607477/robot-arm
2010 Automobile wheel - D0607396
        http://www.strutpatent.com/patent/d0607396/automobile-wheel (D indicates design patent)

Birthdays

1855 King C.Gillette - inventor - safety razor

Nobel Prize Winners

1846 - Rudolf Christof Eucken
           Naturalism or Idealism
            http://www.nobelprize.org/nobel_prizes/literature/laureates/1908/eucken-lecture.html

1874 - Joseph Erlanger
           Some Observations on the Responses of Single Nerve Fibers
           http://www.nobelprize.org/nobel_prizes/medicine/laureates/1944/erlanger-lecture.html


Management Knowledge Revision


Learning Curves - Review Notes

Operations Project Management


Science, Engineering and Management Knowledge History of the Day - Index for the Year

6 January Knowledge History - Science, Engineering and Management



Patents Issued
1914 - Insulating compound - Edison - 1,083,354
1914 - Art of forming chemical compounds - Edison - 1,083,355
1914 - Storage Battery - Edison - 1,083,356

1925 Cosmetic and Process of Producing the Same;  - Goerge Washington Carver - 1,522,176
         http://www.google.com/patents/US1522176

http://www.tomedison.org/patent.html



Birthdays - Nobel Prize Winners

1944 Rolf M. Zinkernagel

Management Knowledge Revision


Process Analysis - Operations Management

Product Design - Review Notes


Science, Engineering and Management Knowledge History of the Day - Index for the Year

Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center


10 January Knowledge History - Science, Engineering and Management




Patents issued

1978 - Typewriter carriage movement mechanism - James L. Wienhold - No. 4067430
           http://www.google.com/patents/US4067430

2012   10 January Wheel bearing apparatus for a vehicle
     www.google.com/patents/US8092096
2012   10 January Complete machining center and method
     www.google.com/patents/US8091191



Birthdays - Nobel Prize Winners

1916 Sune K. Bergstrom
1936 Robert Woodrow Wilson

Management Knowledge Revision


Supply-Chain Strategy - Review Notes

Strategic Capacity Management

Science, Engineering and Management Knowledge History of the Day - Index for the Year

Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center

Saturday, December 29, 2012

12 January Knowledge History - Science, Engineering and Management



Patents issued

1954 - Biochemical Processes for the 11-Hydroylation of Steroids - Gregory G. Pincus and Oscar Hechter - 2,666,015
           http://www.google.com/patents/US2666015


2005 - 12 January NC Lathe
     www.google.com/patents/EP1495833A2?cl=en



Birthdays - Nobel Prize Winners
1899 Paul Muller


Management Knowledge Revision


Aggregate Sales and Operations Planning - Review Notes

Inventory Control - Review Notes for Chase et al.

2011
News
Researchers at the University of New South Wales, Australia developed the world's fastest solar car that travelled at the speed of 88 kmph. It is named Sunswift IVy

Science, Engineering and Management Knowledge History of the Day - Index for the Year

Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center

13 January Knowledge History - Science, Engineering and Management

14 January Knowledge History - Science, Engineering and Management




Patents Issued

1873 - Automatic Telegraph instruments - 134,867
1873 - Electro-magnetic adjusters - 134,868

1913 - Art of Separating Copper from other metals - Edison - No. 1,050,629, and 1,050,630

1964 - Foil Electret Microphone - Gerhard M. Sessler - 3,118,022
          http://www.google.com/patents/US3118022

2004 - 14 January Water soluble tooling materials for composite structures
     www.google.com/patents/EP1379367A1?cl=en

Birthdays

1914 Thomas John Watson Jr. IBM

Management Knowledge Revision


Simulation - Review Notes

Synchronous Manufacturing and Theory of Constraints


Science, Engineering and Management Knowledge History of the Day - Index for the Year

Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center

15 January Knowledge History - Science, Engineering and Management



Patents issued

1985 - Feeback control - Amar Bose - 4,494,074

1861 - Improvement in Hoisting Apparatus Elevator Brake - Elisha Graves Otis - 31,128
          http://www.google.com/patents/US31128

Birthdays - Nobel Prize Winners

1895 Artturi Ilmari Virtanen




Management Knowledge Revision


Financial Analysis - Review Notes

Operations Technology - Review Notes

Science, Engineering and Management Knowledge History of the Day - Index for the Year

Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center

17 January Knowledge History - Science, Engineering and Management

18 January Knowledge History - Science, Engineering and Management

19 January Knowledge History - Science, Engineering and Management

20 January Knowledge History - Science, Engineering and Management

Friday, December 28, 2012

21 January Knowledge History - Science, Engineering and Management



Patents Issue


1919 - Edison - Swaging machine - 1,292,277
1930 - Edison - Mounting for diaphrams of sound boxes - 1,744,534
1930 -  Edison - Production of moulded articles - 1,744,534

1969 - Lyophilized Reaction Mixtures - Emmett W. Chappelle -  3,423,290
           http://www.google.com/patents/US3423290

Birthdays - Nobel Prize Winners
1912 Konrad Bloch



Management Knowledge Revision

Managing Economies of Scale in the Supply Chain

Managing Uncertainty in the Supply Chain: Safety Inventory

Science, Engineering and Management Knowledge History of the Day - Index for the Year

Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center

22 January Knowledge History - Science, Engineering and Management

24 January Knowledge History - Science, Engineering and Management

26 January Knowledge History - Science, Engineering and Management

27 January Knowledge History - Science, Engineering and Management

28 January Knowledge History - Science, Engineering and Management

29 January Knowledge History - Science, Engineering and Management

30 January Knowledge History - Science, Engineering and Management

Thursday, December 20, 2012

How to Respond to Price Attack by Aggressive Competitor?





1. Estimate the sales loss and profit loss that would be suffered by the company if price is reduced to maintain the market share.

2. Find out response alternatives and see if any alternative would lower sales and profit sales.

3. Assess, if you reduce the price, whether competitor will reduce the price further to capture his market share target. (This requires assessment of cost data of competitors and see whether competitors can still reduce price).

4. Think of multiple responses that protect higher price and margin sales.

5. If competitor is attacking in a particular market, assess its effect on the geographies and other product markets.



How to manage an aggressive competitor
George E. Cressman, Jr.
Senior Pricer and Director, Strategic Pricing Group, Inc., Waltham, Massachusetts
Thomas T. Nagle
Chairman, Strategic Pricing Group, Inc., Waltham, Massachusetts
(www.strategicpricinggroup.com)

Business Horizons / March-April 2002, Pp.23-30

Business Marketing Management
Michael D. Hutt and Thomas W. Speh
2012
http://books.google.co.in/books?id=8lMAWJXtf6QC


Tuesday, December 11, 2012

Career Opportunities for General Managers - Profit Center Managers


General management is profit center management. It is management of both marketing-sales and operations or supply chain function and the necessary support functions.

What is the scope for this activity in corporate sector?

In the Book Meta Analytic Organization, by Lex Donaldson, http://books.google.co.in/books?id=KwE5hMr-2YsC  page 115, it is mentioned that an average firm has 50 profit centers.

ABB has 5000 profit centres.

Career Opportunities for General Managers - Profit Center Managers


General management is profit center management. It is management of both marketing-sales and operations or supply chain function and the necessary support functions.

What is the scope for this activity in corporate sector?

In the Book Meta Analytic Organization, by Lex Donaldson, http://books.google.co.in/books?id=KwE5hMr-2YsC  page 115, it is mentioned that an average firm has 50 profit centers.

ABB has 5000 profit centres.

Career Opportunities for General Managers - Profit Center Managers


General management is profit center management. It is management of both marketing-sales and operations or supply chain function and the necessary support functions.

What is the scope for this activity in corporate sector?

In the Book Meta Analytic Organization, by Lex Donaldson, http://books.google.co.in/books?id=KwE5hMr-2YsC  page 115, it is mentioned that an average firm has 50 profit centers.

ABB has 5000 profit centres.

Career Opportunities for General Managers - Profit Center Managers


General management is profit center management. It is management of both marketing-sales and operations or supply chain function and the necessary support functions.

What is the scope for this activity in corporate sector?

In the Book Meta Analytic Organization, by Lex Donaldson, http://books.google.co.in/books?id=KwE5hMr-2YsC  page 115, it is mentioned that an average firm has 50 profit centers.

ABB has 5000 profit centres.

Career Opportunities for General Managers - Profit Center Managers


General management is profit center management. It is management of both marketing-sales and operations or supply chain function and the necessary support functions.

What is the scope for this activity in corporate sector?

In the Book Meta Analytic Organization, by Lex Donaldson, http://books.google.co.in/books?id=KwE5hMr-2YsC  page 115, it is mentioned that an average firm has 50 profit centers.

ABB has 5000 profit centres.

Career Opportunities for General Managers - Profit Center Managers


General management is profit center management. It is management of both marketing-sales and operations or supply chain function and the necessary support functions.

What is the scope for this activity in corporate sector?

In the Book Meta Analytic Organization, by Lex Donaldson, http://books.google.co.in/books?id=KwE5hMr-2YsC  page 115, it is mentioned that an average firm has 50 profit centers.

ABB has 5000 profit centres.

Career Opportunities for General Managers - Profit Center Managers


General management is profit center management. It is management of both marketing-sales and operations or supply chain function and the necessary support functions.

What is the scope for this activity in corporate sector?

In the Book Meta Analytic Organization, by Lex Donaldson, http://books.google.co.in/books?id=KwE5hMr-2YsC  page 115, it is mentioned that an average firm has 50 profit centers.

ABB has 5000 profit centres.

Career Opportunities for General Managers - Profit Center Managers


General management is profit center management. It is management of both marketing-sales and operations or supply chain function and the necessary support functions.

What is the scope for this activity in corporate sector?

In the Book Meta Analytic Organization, by Lex Donaldson, http://books.google.co.in/books?id=KwE5hMr-2YsC  page 115, it is mentioned that an average firm has 50 profit centers.

ABB has 5000 profit centres.

Career Opportunities for General Managers - Profit Center Managers


General management is profit center management. It is management of both marketing-sales and operations or supply chain function and the necessary support functions.

What is the scope for this activity in corporate sector?

In the Book Meta Analytic Organization, by Lex Donaldson, http://books.google.co.in/books?id=KwE5hMr-2YsC  page 115, it is mentioned that an average firm has 50 profit centers.

ABB has 5000 profit centres.

Friday, December 7, 2012

What is a Business Model and How do You Develop One?



A business model has a demand curve for the product of the company and a supply curve for the product of the company. The company has to derive the demand curve based on market research of customers and competitors.

The company has to derive the supply curve based on its operations plan, that includes product/service design, location, technology and its further development, human component-capital component choices, resource maintenance ability, cost management ability, learning ability and its supply chain.

Any acceptable business plan must have the required profit visible in this combination of demand and supply curves.

The business model is presented with the demand for the price the company wants specify and the corresponding supply.


How do you develop one?

You have to develop the concept of your product and distribution channel. You need to define your customer or the target market. The credit terms you plan to give have to be specified You need to specify your marketing communication effort. Then you have do market research to come out with demand estimate. To start-up financiers you have to give all the details. Some of them are going to assess your business model logically. Some of them may do some actual market research as a sample in a small space.

Similarly you need to develop various details of your operations plan. Develop cost estimates for your operations chain. Give the details to financiers so that they recheck whether you will be able to supply at the estimated cost the product or service to the market.

Why Business Models Matter?
Joan Magretta
Harvard Business Review, 2002

Do Some Business Models Do Better Than Others - MIT Working Paper - 2005
http://ccs.mit.edu/papers/pdf/wp226.pdf

From Strategy to Business Models to Tactics
Ramon Casadesus- Masanell and Joan Enric Ricart
HBS Working Paper 10-036

How to Design a Winning Business Model?
Ramon Casadesus- Masanell and Joan Enric Ricart
Harvard Business Review, January 2011


Business Model Reengineering


Business Model Reengineering is the New Buzzword


Michael Hammer proposed Business Process Reengineering (BPR)

Venkat N Venkatraman is reminding business leaders the new imperative - Business Model Reengineering.


For Hammer, the base for BPR was technology.

For Venkatraman, the base for Business Model Reengineering is Web. Now it is cloud. People across the globe are now connected through the cloud and are in instant touch. Communication and transactions are now taking place instantly in the cloud. The bandwidth available to users will still further increase and cloud or web based interaction will increase exponentially and time delays will decrease further substantially.

Just as Hammer told business people don't automate business process but reengineer them. Obliterate the current processes and design radically new processes by understanding the power of the new technology.

Venkatraman gives similar call. Don't transfer the work under the current business model to a cheaper location using cloud. Radically reengineer your business models. You can build more effective and efficient business models.

Has any body done it?  Yes. You have totally digital technology based businesses like Google, Amazon, Facebook, Twitter. Yes, they created radically new business models. But the surface of the scope is yet to be scratched. Businesses have not yet grasped the potential.

Venkatraman says, don't look at your current competitors with the same business model and be complacent.  There are many small players in the shadows experimenting with digital technology business models. If you don't take initiatives now, you may face a sudden challenge that you can't survive.

Five Web Framework


Venkatraman formulated the five web framework as Mobile Web, Social Web, Media Web, Real-time Weba and Machine Web.  These five webs are interconnected also.

Mobile web has 5 billion mobile phones. Social web has users on Facebook and Google+ and many others. Media Web has YouTube and many blogs on various platforms apart traditional media now offering e-editions Real time web has twitter. Machine web is the connected machines communicating with each other and taking actions through digital communications.

In the digital economy and infrastructure, advertising has become an important revenue source and permission has become a marketing step. Consumer has more involvement in product creation as well as product promotion.


To Understand More the Five Web Model
http://www.slideshare.net/Venkat101/venkatraman-five-webs

Globalization 3.0 - A talk by Prof Venkatraman on Importance of Expertise
http://management.bu.edu/blog/2010/02/22/professor-n-venkatraman-on-globalization-3-0-and-the-shift-from-economies-of-scale-to-expertise/

Interview with Venkatraman - Economic Times - 7 December 2012
http://economictimes.indiatimes.com/features/corporate-dossier/time-is-right-for-indian-it-companies-to-change-the-way-the-world-sees-them-venkat-n-venkatraman/articleshow/17506823.cms

Digital Technologies - What does it mean for CIOs - October 2011 Presentation
http://www.slideshare.net/Venkat101/it-everywherewhat-does-it-mean-for-future-cios

Relation between Business and IT - October 2002
http://www.sieberpartners.ch/storage/cno-2012/cno12-prof-venkatraman.pdf




IT-Enabled Business Transformation: From Automation to Business Scope Redefiniton.
Venkatraman, N
Sloan Management Review; Winter 1994; 35, 2; Pp. 73-87


Journal of Management - Prof Venkatraman is the 22 most downloaded management researcher.



Related Articles and Reports

Business Transformation and New Business Model - Accenture Presentation
YouTube Video upload by Accenture

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Accenture
How to Transform the Business Model: Analog to Digital
http://www.accenture.com/us-en/outlook/Pages/outlook-journal-2012-from-analog-to-digital-how-to-transform-business-model.aspx

IBM
Digital Transformation - Creating New Business Models
http://www-935.ibm.com/services/us/gbs/thoughtleadership/ibv-digital-transformation.html


When and How to Innovate Your Business Model? - IBM Institute for Business Value
ftp://public.dhe.ibm.com/common/ssi/ecm/en/gbe03260usen/GBE03260USEN.PDF

Friday, November 30, 2012

1 December Knowledge History - Science, Engineering and Management


1913 -  The continuous moving assembly line was introduced by Ford in his Highland Park plant, Detroit, Michigan. The factory was capable of delivering a car every 2-min 38-sec and the chassis was pushed from station to station.
http://www.pbs.org/wgbh/aso/databank/entries/dt13as.html
Ford took the support of Frederick Taylor, the creator of "scientific management," to do time and motion studies to determine the exact speed at which the work should proceed and the exact motions workers should use to accomplish their tasks.


1977, the isolation of the bacterium Legionella pneumophila that was the cause of Legionnaire's Disease, was described in a scientific paper published in The New England Journal of Medicine by scientists at the Centers for Disease Control (CDC) in Atlanta, Georgia,


Birthdays

http://www.famouswhy.com/Born_Today/Month/12.html


Management Revision

Strategies, Policies, and Planning Premises - Review Notes

Decision Making - Review Notes

Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center

2 December Knowledge History - Science, Engineering and Management



1982 - Dr. William C. DeVries replaced the diseased heart of Barney Clark with the Jarvik-7, the first permanent artificial heart ever used for a human patient.

Birthdays




1761 - Nicolas Louis Robert -  French inventor of the continuous paper-making machine.

1885 - George Richards Minot -  American physician - shared the Nobel Prize for Physiology or Medicine in 1934 for the introduction of a raw-liver diet in the treatment of pernicious anemia.

           Nobel lecture, address, biography
           http://www.nobelprize.org/nobel_prizes/medicine/laureates/1934/minot-lecture.html

1930 - Gary S. Becker

Management Revision

Summary - Principles of Planning

Planning Function of Management - Global Issues


Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center

3 December Knowledge History - Science, Engineering and Management




1922  - First successful Technicolor motion picture film was released. The movie - The Toll of the Sea - was  shown at the Rialto Theatre in New York City.

1967, in Cape Town, South Africa, Dr. Christiaan Barnard, with his team of 20 surgeons, performed the first human heart transplant on a South African businessman, 54-yr-old Louis Washkansky.

Birthdays


1933 - Paul Josef Crutzen - Dutch chemist - 1995 Nobel Prize for Chemistry for demonstrating that chemical compounds of nitrogen oxide accelerate the destruction of stratospheric ozone.


 1942. - Peter C. Schultz - American ceramicist - worked Robert Maurer and Donald Keck and made optical fiber, capable of carrying 65,000 times more information than conventional copper wire, a practical reality.


Management Article revision


The Nature of Organizing - Review Notes

Departmentation in Organizations - Review Notes


Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center



4 December Knowledge History - Science, Engineering and Management

1894 - George Parker was issued a U.S. patent for a fountain pen design. It was major success for Parker Company


Birthdays

1908 - Alfred Day Hershey - American biologist -  Nobel Prize for Physiology or Medicine in 1969 for research done on bacteriophages (viruses that infect bacteria).
           http://www.nap.edu/html/biomems/ahershey.html

         http://www.nobelprize.org/nobel_prizes/medicine/laureates/1969/hershey-lecture.html





Management Review for the Day

Line-Staff Authority and Decentralization - Review Notes

Effective Organizing and Organizational Culture - Review Notes


Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center

5 December Knowledge History - Science, Engineering and Management


1969 - The nacent ARPANET grew to four nodes


Birthdays


1932 - Sheldon Lee Glashow - American theoretical physicist - the Nobel Prize for Physics in 1979 for contribution in formulating the electroweak theory.
          http://www.nobelprize.org/nobel_prizes/physics/laureates/1979/glashow-lecture.html




Management Theory Review

Summary - Principles - Organizing

Organizing - Global Management Issues - Review Notes

Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center

6 December Knowledge History - Science, Engineering and Management

1877 - Thomas Edison demonstrated the first sound recording.




Birthdays

1920 - Sir George Porter - English chemist - the 1967 Nobel Prize for Chemistry, for studies of extremely fast chemical reactions, effected by means of very short pulses of energy -the flash-photolysis method.
           http://www.nobelprize.org/nobel_prizes/chemistry/laureates/1967/porter-speech.html




http://www.computerhistory.org/tdih/December/6/




Management Theory Review

Human Resource Management and Selection

Performance Appraisal and Career Strategy


Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center

7 December Knowledge History - Science, Engineering and Management


1909 - Leo Baekeland of Yonkers, New York, received the first U.S. patents for a thermosetting artificial plastic - Bakelite.


1926 - The first U.S. patent issued for a household refrigerator operating on gas -  The Electrolux Servel Corporation.


Birthdays

1955 - Noam Chomsky
          http://www.computerhistory.org/tdih/December/7/


Management Theory Review



Manager and Organization Development

Summary - Principles - Staffing

Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center

8 December Knowledge History - Science, Engineering and Management

1994 -   A team of German scientists claimed to have created element 111. Its atom has 111 protons and 161 neutrons in its nucleus, giving it a mass number of 272.



Birthdays

1947 -  Thomas Robert Cech - American biochemist - the 1989 Nobel Prize for Chemistry for  discoveries concerning RNA (ribonucleic acid).
            http://www.nobelprize.org/nobel_prizes/chemistry/laureates/1989/cech-lecture.html
            http://www.hhmi.org/biointeractive/rna/lectures_legacy.html

Management Knowledge Revision

Staffing - Global Management Issues

Human Factors and Motivation


2012
New Blog Posts

Business Model Reengineering

What is a Business Model and How do you Develop One?

Two Kinds of Technology of Industrial Systems


Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center

9 December Knowledge History - Science, Engineering and Management



1968-  The first demonstration of the use of a computer mouse was given.




Birthdays

 1926 - Henry Way Kendall - American nuclear physicist - the 1990 Nobel Prize for Physics - Experimental evidence for the existence of the subatomic particles known as quarks.
            http://www.nobelprize.org/nobel_prizes/physics/laureates/1990/kendall-lecture.html


2012

Nobel Media Event

The Genetic Revolution and Its Impact on Society - Nobel Media Event
http://www.nobelweekdialogue.org/event-info/overview/



Management Revision

Leadership - Koontz and O'Donnell Review Notes
Committees and Group Decision Making - Review Notes

2012
New Blog Post

$2 Trillion Waste In IT Systems? What are we doing?


Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center


Cost Management - The Process





WHAT IS COST MANAGEMENT?






Horngren, Foster and Datar explain that cost management comprises of the activities of managers in short-run and long-run planning and control of costs. Information from accounting systems help managers make such decisions. But the systems and the information by themselves are not cost management.

Planning is deciding on organization goals and developing programs to achieve them.  The term organization implies a section or a department also. To develop programs to achieve organization goals, various alternative ways are to be identified first and results from them are to be predicted. Based on the estimated or predicted results from various alternative ways, programs are finalised to attain the desired goals.

Control is taking actions to see that desired results are coming out of the programs. Control comprises of targets and standard procedures, performance evaluation, and feedback mechanisms that change the way of things are being done to attain the planned results instead of the current actual results which are not  in line with the planned results.

Management Process

The process of management involves five steps (Koontz and O'Donnell):

Planning
Organizing
Staffing
Directing
Controlling

Narayana Rao advocated that resourcing is more appropriate term in the place of staffing. By adding resourcing to the list and removing staffing we can write the process of management as:

Planning
Organizing
Resourcing
Directing
Controlling

The objectives of  an organization headed by a manager are decided during the planning stage. The term organization is a generic term and it can imply  single-man business or activity, a section within a department, a department, a SBU or a whole company.

In any business organization, the mission will be to serve the customers by providing certain products or services that provide benefits to the customers. The objectives  can be many and include customer satisfaction and profitable operations. The goals for a period include certain revenue targets, cost targets and the resulting profit targets. Every manager in a business organization has a revenue target and cost target. Naturally, the cost target is related to the revenue target.

Cost management involves the planning of the cost in relation to the output target planned by the managers. It may be allotted to him by the top management. But once he accepts it,  it is part of his planning output. He needs to organise his section or department to achieve the revenue or output target and this organization will consume resources and incurs cost. Managers need to design organizations that meet profit goals of the organization. Hence cost management activity starts during planning and organizing. Cost estimating needs to be done during the organization stage to find out costs of various alternatives. Resourcing is  the step in which resources planned in the organization design are acquired. There have to be efforts to acquire resources within the estimated costs. Directing is the stage wherein the resources are allocated to subdivisions within the organization and various persons are given authority to use these resources. Acquisition of additional short term resources like raw materials and services do take place during the operations of the organization. Directions have to be given to various personnel to conduct operations within the estimated costs. Budgeting helps in this regard.

Controlling is observing the actual happenings and taking control actions. Observation in the orgnaizational context refers to various measurements as well as reports. Cost accounting department is recording the various cost transactions and informing the summary information to all concerned. Any out of control situation, which means deviations of actual results from the planned or estimated costs needs replanning, reorganizing, additional acquisition or disposal of resources and redirecting.

Managers of any organization are continuously engaged in cost management. Cost management information systems helps them at all steps in the cost management process.


Articles - Cost Management Process

(Numbers knol numbers to give links)


Cost Management - Planning and Control of Costs 
Cost Management - Activities - Job Positions - 503
The Need for Cost Facts

Cost Accounting - Introduction - 265
Cost Terms and Concepts - 1210
Concept of Cost Objective - 442
The Role of Accounting in Organizations - search knol backup
Project Cost Accounting - 577



Accounting for Material Receipts and Issues - 1415

Job Costing - 1212
Activity based costing - 788
Activity based costing (ABC) - 12


Budget, Budgeting and Budgetary Control - search knol backup
Activity based budgeting - 787

Customer Cost Analysis - 64


Contribution Analysis - 63
Economic Analysis of Costs -
Overhead Costs
Analysis of Overhead Cost
Setting Expense Budgets

Strategic Cost Management -

Material Cost Management - 700

Activity based management - 789
Kaizen Costing and Kaizen Cost Management - 381
Target Costing and Target Cost Management - 380

Building Cost Estimating, Planning, Controlling and Reducing - 430
Software Cost Management - 573
Software Cost Management - Resources and Bibliography - 571
Supply Chain Cost Reduction - 460


ERP Systems in Cost Management - 382

Cost Accounting, Costing and Cost Management - Article Directory - 1205
Knol Sub-Directory - New Knols - Cost Accounting and Management - 1652

Cost, Economic, and Financial Analysis for Operating Executives - 383
Economic, Accounting, Cost Control and Financial Analysis Skills for Technical Personnel - 1915
Strategic Cost Management - Course - 379



BIBLIOGRAPHY



Cost Management - Chapter
http://www.stsc.hill.af.mil/resources/tech_docs/gsam4/chap6.pdf

The Supply Chain Cost Management
Jimmy Anklesaria
AMACOM
http://books.google.co.in/books?id=N0WtfE6JPnkC
http://www2.amanet.org/training/books/9780814474754.aspx

A Preliminary Checklist for Software Cost Management, Jorgenson
http://www.ifi.uio.no/forskning/grupper/isu/INCO/Papers/a_preliminary.pdf

Army Cost Manual
http://archive.asmconline.org/files/PDI/armycost.ppt


Reports of Leading Consultants

Accenture - 2010 report.
Contains survey results on various cost reduction initiatives taken up by companies and initiatives they would like to take in the future.
http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture_Cost%20Management.pdf

Thursday, November 29, 2012

12 December Knowledge History - Science, Engineering and Management


1957 - The first total artificial heart implantation in an animal - It kept a dog alive for 90 minutes in a pioneering experiment at the Cleveland Clinic by Dr. Willem Kolff and Dr. Tetuzo Akutsu.


Birthdays


1866 -   Alfred Werner - Swiss chemist - research into the structure of coordination compounds -  the 1913 Nobel Prize for Chemistry. He demonstrated that stereochemistry exists in compounds other than that of carbon also.
Stereochemistry - Introduction
http://www.nobelprize.org/nobel_prizes/chemistry/laureates/1913/werner-bio.html 
http://www.nobelprize.org/nobel_prizes/chemistry/laureates/1913/werner-lecture.html


1918 - Igor Ansoff

1927 -   Robert Noyce - American engineer and inventor - He along with Jack Kilby invented the integrated circuit. He held sixteen patents for semiconductor devices, methods, and structures. In 1968, he and Gordon E. Moore founded N.M. Electronics. It was later renamed Intel Corporation. Noyce was  Intel's president and chairman during 1968-75, then served as vice chairman until 1979.
http://www.invent.org/hall_of_fame/113.html









Management Theory Revision


Control Techniques and Information Technology

Productivity Control

Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center

Zig Ziglar - Sales Trainer and Motivational Speaker



Zig Ziglar 6 November 1926 - 28 November 2012

He is a motivational maestro, wrote Washington Times News correspondent.

His 1975 motivational book, “See You At The Top,” went on to sell more than a quarter of a million copies and is still in print.  10 of his 30 books have appeared on best-seller lists and have been translated into more than 36 different languages.

http://www.washingtontimes.com/news/2012/nov/28/motivational-maestro-zig-ziglar-dies-86/



Some YouTube Videos featuring Zig Ziglar
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Uploaded by Successmagazine - YouTube partner

13 December Knowledge History - Science, Engineering and Management





1938 The first  - U.S. patent was issued for casein fibre (No. 2,140,274)


Birthdays

1897 - Erich Gutenberg - Theory of the firm


1923 - Philip Warren Anderson - USA - the 1977 Nobel Prize for Physics - Research contribution on semiconductors, superconductivity, and magnetism.
http://www.nobelprize.org/nobel_prizes/physics/laureates/1977/anderson-lecture.html




Management Revision




Overall Control and Preventive Control - Review Notes

Summary - Principles of Controlling
http://nraomtr.blogspot.com/2011/12/summary-principles-of-controlling.html

Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center

Wednesday, November 28, 2012

Quality Management, Assurance, Control - Biblography

25 December Knowledge History - Science, Engineering and Management

1914 - The thyroid hormone, thyroxine, was first crystallized by biochemist Edward C. Kendall. He was with the Mayo Foundation in Rochester, NY.


About thyroid problems
________________

________________



Birthdays - Nobel Prize Winners


1876 - Adolf Windaus
Nobel lecture
http://www.nobelprize.org/nobel_prizes/chemistry/laureates/1928/windaus-lecture.html
1904 - Gerhard Herzberg
Nobel lecture
http://www.nobelprize.org/nobel_prizes/chemistry/laureates/1971/herzberg-lecture.html
1906 Ernst Ruska
Nobel lecture
http://www.nobelprize.org/nobel_prizes/physics/laureates/1986/ruska-lecture.html


Management Knowledge Revision


Time Value of Money Calculations

Cash Flow Estimation for Expenditure Proposals


Videos for the day
Rethinking College Carnegie Corporation NewYork Video
______________

______________

Knowledge History of the Day - Index for the Year

Management Theory Review Blog
Management Knowledge Center
Engineering and Technology Knowledge Center
Science Knowledge Center
Social Science Knowledge Center

Friday, November 23, 2012

What is Political Economy?



The term "Political economy"  was used to denote the subject that examined production,  exchange(the acts of buying and selling), and distribution (factor incomes) and their relationships to laws, customs and and activities of government.

It was described as wealth of nations by Adam Smith and other writers like John Stuart Mill.

It developed in the 18th century as the study of the economies of states (states were known as polities, hence the word "political" in "political economy").

Even though it is wealth of nations, in a capitalist economy it is the actions of individual consumers and producers that would be come ultimately the gross domestic product. Therefore, principles of political economy developed principles of decision making by individual producers and consumers first.

http://www.martinfrost.ws/htmlfiles/polical_economy.html

What is General Management?


General management is managing sales and production or supply activities simultaneously. It is also being termed as output and throughput functions. A general manager can be assisted by functional managers in marketing/sales and in other operations functions like product design, production, purchasing , maintenance, accounting, finance etc.

General management can also be explained as profit center management.  All MBA programs provide inputs in the area of general management. But functional specializations get more attention as many would start their career in functional managerial roles before taking up profit center responsibility.

  

Sunday, November 4, 2012

What is Innovation?



Oxford Dictionary gives the meaning as bring in novelties; make changes.

For invent the meaning is given as to create by thought, originate new method, instrument etc.


In business literature, innovation is associated with novelty and business success or novelty aimed at business success.

Saturday, November 3, 2012

ADR/GDR/FCCB Issues - Indian Regulations



Circulars, Notifications Related to ADR/GDR/FCCB Issues

2.7.2012

Master Circular 2 July 2012 on Foreign Investment in India

STUDENT RESEARCH PROJECT - Depository Receipts: Comparison of Regulatory Frameworks in Taiwan, Brazil, Hong Kong, and India - 2012 - NSE supported

1.7.2011

Master Circular on Foreign Investment in India
Includes issue of shares by Indian companies under ADR/GDR
http://rbidocs.rbi.org.in/rdocs/notification/PDFs/15MFI300611F.pdf


1.3.2011
Government of India - Consolidated FDI Policy (under which ADRs/GDRs/FCCBs are issued). Department of Industrial Policy and Promotion, Ministry of Commerce and Industry Promotion,

22.9.2009

Takeover norms revised; ADRs at par with domestic shares

The Securities and Exchange Board of India revised takeover norms by bringing ADRs/GDRs with voting rights on par with the domestic shares, which makes an open offer mandatory if 15 per cent stake is bought in a company through these securities with voting rights.
Regarding Voting Rights of ADRS/GDRs RBI clarification
vii)  Voting rights on shares issued under the Scheme shall be as per the provisions of Companies Act, 1956 and in a manner in which restrictions on voting rights imposed on ADR/GDR issues shall be consistent with the Company Law provisions. Voting rights in the case of banking companies will continue to be in terms of the provisions of the Banking Regulation Act, 1949 and the instructions issued by the Reserve Bank from time to time, as applicable to all shareholders exercising voting rights.
This clause is mentioned in the recent master circular of RBI given below.

The Recent Master Circular

July 2009

 

 

 

20 Jan 2000
RBI gives General permission for issue of ADRs/GDRs
July 20, 2000
GDRs / ADRs issues by FIs
A.P. (DIR Series) Circular No.52
November 23, 2002
03 Feb 2003
ADR/GDR Sale Proceeds can be held in Foreign Currency
October 01, 2004
No RBI Permission for ADR/GDR linked ESOPs
Notification No.FEMA.132/2005-RB dated March 31, 2005
Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2005
31 May 2005
Scheme for issue of ADR/GDR Linked Stock Option for employees of software companies in India
September 05, 2005
FCCBs and Ordinary Shares [Through Depository Receipt Mechanism] Scheme, 1993 Amended
July 2, 2007
Master Circular on Foreign Investment in India
July 2008
Master Circular on Foreign Investment in India
July 2009

SEBI Ciculars Related to ADR/GDRs



December 11 , 2003
Format for submitting monthly report on Two-way fungibility of ADRs/GDRs.
January 5, 2009
Revisions in submission of reports on two way fungibility of ADRs/GDRs
_______________________________________________________________________

Speculation Regarding ADR/GDR/FCCB Regulations



29th August 2009

Companies May be Allowed to Issue Level-1 ADRs


Level-1 ADRs are sponsored ADRs wherein the shares held by existing investors in the domestic market are gathered and sold in US market through over the counter markets. Secondary trading occurs in the OTC markets. So no fresh capital accrues to the company. But the company's name gets established in the capital market of US.  Such issues are exempt from SEC reporting under Rule 12g3-2(b) of 1934 Act. The exemption is must be requested and obtained and the company has to provide to the SEC in English the same information that was provided to domestic shareholders.

Presently Level-1 ADR issue is not allowed under Indian regulations, but companies and investment bankers are pleading for permitting such issues and they say the present prohibition is a handicap in global financial markets.
(Source: The Economic Times, 29th August, 2009, Page 1 and 17).
________________________________________________________________________________

Issue of Shares by Indian companies under ADR / GDR  - The Process


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Depositary Receipts (DRs) are negotiable securities issued outside India by a Depository Bank, on behalf of an Indian company, which represent the local Rupee denominated equity shares of the company held as deposit by a Custodian Bank in India. DRs are traded in Stock Exchanges in the US, Singapore, Luxembourg etc. DRs listed and traded in the US markets are known as American Depository Receipts (ADRs) and those listed and traded elsewhere are known as Global Depository Receipts (GDRs). In the Indian context, DRs are treated as FDI.



Indian companies can raise foreign currency resources abroad through the issue of ADRs/GDRs, in accordance with the Scheme for issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993 and guidelines issued by the Central Government thereunder from time to time.

 

The company can issue ADRs/GDRs if it is eligible to issue shares to persons resident outside India under the FDI Scheme. However, an Indian listed company, which is not eligible to raise funds from the Indian Capital Market including a company which has been restrained from accessing the securities market by the Securities and Exchange Board of India (SEBI) will not be eligible to issue ADRs/GDRs.



Unlisted companies, which have not yet accessed the ADR/GDR route for raising capital in the international market would require prior or simultaneous listing in the domestic market, while seeking to issue such overseas instruments. Unlisted companies, which have already issued ADRs/GDRs in the international market, have to list in the domestic market on making profit or within three years of such issue of ADRs/GDRs, whichever is earlier.

 

ADRs/GDRs are issued on the basis of the ratio worked out by the Indian company in consultation with the Lead Manager to the issue. The proceeds so raised have to be kept abroad till actually required in India. Pending repatriation or utilisation of the proceeds, the Indian company can invest the funds in -

  • Deposits with or Certificate of Deposit or other instruments offered by banks who have been rated by Standard and Poor, Fitch, IBCA or Moody's etc. and such rating not being less than the rating stipulated by Reserve Bank from time to time for the purpose,
  • Deposits with branch outside India of an authorised dealer in India, and
  • Treasury bills and other monetary instruments with a maturity or unexpired maturity of the instrument of one year or less.
  •  

There are no end use restrictions except for a ban on deployment / investment of such funds in Real Estate or the Stock Market. There is no monetary limit upto which an Indian company can raise ADRs / GDRs.

 

Voting rights on shares issued under the Scheme shall be as per the provisions of Companies Act, 1956 and in a manner in which restrictions on voting rights imposed on ADR/GDR issues shall be consistent with the Company Law provisions. RBI regulations regarding voting rights in the case of banking companies will continue to be applicable to all shareholders exercising voting rights.

 

Erstwhile OCBs who are not eligible to invest in India through the portfolio route and entities prohibited to buy, sell or deal in securities by SEBI will not be eligible to subscribe to ADRs / GDRs issued by Indian companies.

 

The pricing of ADR / GDR issues should be made at a price not less than the higher of the following two averages: 

(i) The average of the weekly high and low of the closing prices of the related shares quoted on the stock exchange during the six months preceding the relevant date;

(ii) The average of the weekly high and low of the closing prices of the related shares quoted on a stock exchange during the two weeks preceding the relevant date.

The "relevant date" means the date thirty days prior to the date on which the meeting of the general body of shareholders is held, in terms of section 81 (IA) of the Companies Act, 1956, to consider the proposed issue.

 

The ADR / GDR proceeds can be utilised for first stage acquisition of shares in the disinvestment process of Public Sector Undertakings / Enterprises and also in the mandatory second stage offer to the public in view of their strategic importance.





Two-way Fungibility Scheme



A limited Two-way Fungibility scheme has been put in place by the Government of India for ADRs / GDRs.



Under this scheme, a stock broker in India, registered with SEBI, can purchase shares of an Indian company from the market for conversion into ADRs/GDRs based on instructions received from overseas investors.



Re-issuance of ADRs /GDRs would be permitted to the extent of ADRs / GDRs which have been redeemed into underlying shares and sold in the Indian market.



Sponsored ADR/GDR issue



An Indian company can also sponsor an issue of ADR / GDR. Under this mechanism, the company offers its resident shareholders a choice to submit their shares back to the company so that on the basis of such shares, ADRs / GDRs can be issued abroad.



The proceeds of the ADR / GDR issue is remitted back to India and distributed among the resident investors who had offered their rupee denominated shares for conversion. These proceeds can be kept in Resident Foreign Currency (Domestic) accounts in India by the resident shareholders who have tendered such shares for conversion into ADR / GDR.

 

Reporting of ADR/GDR Issues



The Indian company issuing ADRs / GDRs has to furnish to the Reserve Bank, full details of such issue in the form enclosed in Annex-8, within 30 days from the date of closing of the issue. The company should also furnish a quarterly return in the form enclosed in Annex-9, to Reserve Bank within 15 days of the close of the calendar quarter.


June 29, 2006

The government has allowed unlisted Indian companies, which have earlier done an ADR or GDR issue, to undertake sponsored issues without getting listed for some time.

The government had earlier banned companies not listed in India from listing overseas, and directed those listed on foreign markets to list in India.

Unlisted companies that have not issued FCCBs, ADRs/GDRs prior to August 31, 2005, would require prior or simultaneous listing on the domestic stock exchanges for issuing FCCBs, ADRs/GDRs, or sponsoring such issues against existing shares under the scheme.

An official release said unlisted companies that had issued FCCBs, ADRs or GDRs before August 31, 2005, and were not making profits would be permitted to sponsor issues against existing shares held by its shareholders.

Such companies would be permitted to comply with listing conditions on domestic stock exchanges within three years of their starting to make profits.

The permission to companies not listed in India to float sponsored issues overseas could  a provision of an exit route to venture capital and private equity investors in such companies.



http://www.rediff.com/money/2006/jun/29adr.htm

 



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MBA Knowledge Revision articles project is  migrated from Knol to
Management Theory Review Blog
http://nraomtr.blogspot.com


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Original version posted at 
http://knol.google.com/k/adr-gdr-fccb-issues-indian-regulations