Reflection Essay Example | Topics and Well Written Essays - 500 words - 44

Reflection - Essay Example Indeed, as an international student from UAE, my school allocated me a class that comprised of students from other countries. Although most students came from U.K and U.S there were a significant number of students from other countries like Nigeria, Japan, and Mexico. Most uniquely, I was the only student from UAE and this posed a great challenge to my social and academic life. It was clear from the onset that most of the students came from different cultural, religious, economic, and social backgrounds. I was surprised how the differences among the new students will allow us to succeed in our academic pursuit. However, upon settling down in class, one of the administrators explained the organizational culture of the school and the need to adopt diversity in our class. The administrator defined the school’s policy and advocated for the cultural diversity and respect to the code of ethics. Indeed, he stated that English is the official language of communication and studying at the school and that all students should respect the cultural and religious backgrounds of all students. With this, the administrator guaranteed good cohesion and unity of purpose in our studies and relevant extra curriculum activities. The administrator stated that the school’s policy respects all religions and disregards any discrimination based on social and economic status. He also stated that all students have a right to interact with any students and noted that our studies will include group discussions, which will include students from different backgrounds. He therefore encouraged us to share our cultural values for purposes of adopting the cultural values that will boost our academic pursuit. This experience taught me the need to adopt cultural diversity in my studies. It also taught me that I cannot exist in isolation and that it requires the

Acids, Bases, and Neutrals Essay Example for Free

Acids, Bases, and Neutrals Essay Experiment Acids, Bases, and Neutrals Problem Are common house-hold products pH balanced and neutral? Information Gathered pH measures how acidic or alkaline a solution is. The pH scale ranges from 0-14. Solutions that range from 0-6 are considered to be acidic. Solutions that are on the acidic end of the scale are low in pH, high in hydrogen ion, and low in hydroxyl ions. An acid has a sour taste, hence, will react to metal and will be corrosive; therefore, they are considered as an electrolyte because it conducts an electrical charge. Such examples of acids that are hydrochloric acid, citric acid and vinegar. Solutions that are bases on the pH scale range from 8-14. Bases are high in pH, low in hydrogen ion and high in hydroxyl ion. Bases have a bitter taste and a slippery feel. Bases dissolve in water and are also an electrolyte. Examples of bases are sodium hydroxide and cleaning products. Solutions that are neutral have an equal amount of hydrogen ion and hydroxyl ion. An example of this is blood. Solutions that are neutral on the pH scale range are 7. Hypothesis It has been estimated that out of the first ten products, that five of them would be bases, three would be acids, and two would be neutral. It was also estimated that out of the last ten products, that nine of them would be acids and one would be a base. There was an estimation of twenty products.

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

Down At The Cross :: essays research papers

In â€Å"Down at the Cross†, James Baldwin stresses the idea that regardless of race or culture, people are human beings and should be treated equally. Baldwin criticizes racial issues. Baldwin talks about how whites and blacks don’t understand each other because both have insecurities, fears, and prejudices within their own culture that they can’t understand each other. Baldwin proposes the idea that â€Å"people can renew themselves at the fountain of their own lives† (54). This process of renewal means that people of any culture or color may eventually find a path to understanding and cooperating with each by searching within themselves. In â€Å"Communication in a Global Village†, Dean Barnlund believes that there is problem with communication in society because people of different cultures can’t communicate with each other. Barnlund criticizes that people tend to attach and associate with their own kind and do not want to branch out to learn and communicate with people of other cultures. Barnlund believes that in order for society to flourish and succeed, people must appreciate other cultures and realize that expanding knowledge of other cultures will contribute to a wholesome life. Barnlund would say that the appreciation, interaction, and understanding of other cultures are the processes of â€Å"renewal†. Robert Bellah believes that people isolate themselves from others. Bellah expresses how people tend to separate their â€Å"private† and â€Å"public† lives. He believes that this is a problem because if people keep their private life separate from public life, they will not lead a fulfilling life. Bellah believes that as private and public lifestyles interact with each other, together they create the essence to a nourishing and productive life. Bellah takes different subjects and describes details from their lives about how they â€Å"renewed† themselves by relating their private l ife to their public life. All of the authors portray social criticisms, identify the problems, and propose solutions that find ways of renewal for an individual’s life. Barnlund states, Access to the world view and the communicative style of other cultures may not only enlarge our own way of experiencing the world but enable us to maintain constructive relationships with societies that operate a according to a different logic than our own. (66) Barnlund believes that if people learn aspects of other cultures, people will be able to maintain associations and communications between different cultures within a society. The meaning of appreciation of other cultures is what Barnlund specifies as the survival of a global village.

Effects of Inflation

Inflation is defined as a sustained increase in the general level of prices which results in a decline in the purchasing power of money. Inflation is measured through the Consumer Price Index (CPI) which measures proportional changes in prices in a representative â€Å"basket† of g’n’s, weighted according to their importance in a typical Australian households budget. The RBA aims to keep inflation at an annual rate of 2-3%, and in order to do this a number of policies are available for the Australian government.Keeping Inflation under control is a primary concern for the Australian Government as it affects so many different parts of the Economy, including Economic growth, standard of living and unemployment. There are three types of inflation, depending on their causes. Firstly, demand pull inflation occurs when there is an excessive aggregate demand at or near full employment. If aggregate demand exceeds aggregate supply, prices of g’n’s rise as a rationing mechanism. This form of inflation is usually associated with periods of high economic activity.Secondly is cost-push inflation. If business costs such as the cost of wages or materials rise, businesses may aim to maintain profit levels by passing these costs onto consumers. This will result in higher prices and therefore inflation. The final type of inflation is imported inflation. Imported inflation occurs when the price of imports rises, and either adds to business costs (resulting in cost-push inflation) or feeds into the CPI as the price of final goods. Furthermore, a depreciation in the Au$ will raise import prices, also adding to imported inflation.There are a number of factors which may cause inflation in the Australian economy. A major cause of demand-pull inflation is excessive growth in aggregate demand. If aggregate demand increases from AD to AD1, aggregate supply which is the equivalent of real GDP will rise to GDP2 and the price level will rise from P to P2. This results in the inflationary gap of cd. This increase in aggregate demand may be the result of a number of factors, including increases in consumption expenditure, investment spending, net government expenditure, the money supply, or export incomes.Another major cause of inflation, this time cost-push inflation, is a decrease in aggregate supply. If aggregate supply decreases from AS to AS1, real GDP will decrease to GDP2 and the price level will rise to P1. This results in both a contraction in real GDP and a rise in inflation. The main causes of this decrease in aggregate supply is excessive wage growth not accompanied by productivity increase, a rise in the cost of raw materials, and other inputs, or a rise in government taxes or other charges that raise costs for firms.Cost-push inflation may also be the result of imported inflation it there is a rise in world prices of imported goods used in the production process (such as raw materials and intermediate goods) firms are lik ely to pass these costs onto consumers, resulting in inflation on the other hand if there is a rise in world prices of consumer goods, increased import prices will feed directly into the CPI, also resulting in inflation. Furthermore a depreciation in the Au$ in foreign exchange markets will result in a rise in the prices of imported raw materials, intermediate goods, and consumer goods, again contributing to Australia’s inflation.This is demonstrated in the stimulus when the RBA credits the decrease in inflation to the fading impact of 2000s exchange rate depreciation. A less common cause of inflation is the existence of monopolies or oligopolies. If a monopoly or oligopoly exists in an industry, the lack of competition allows producers to push up prices. This again results in inflation. The final cause of inflation in Australia is inflationary expectations. Inflationary expectations refer to the behaviour of individuals and businesses who seek to compensate for the current i nflation, as well as expected future price rises.This may be the result of either firms pushing up prices, or wage earners seeking higher nominal wages. Also, if consumers expect future prices to rise, they rather buy g’n’s now, which leads to increases in spending. This results in demand-pull inflation. Inflation can impact the economy in 3 ways. 1)By encouraging investment in speculative and unproductive activities and discouraging investment in ventures considered productive. Inflation encourages investment in real assets such as gold and real estate because they are considered ‘good shelters’ for inflation.This is because the scarcity of them often outpaces or at least keeps pace with the rate of inflation. If inflation occurs, people will seek to own such assets, shifting resources to these speculative and unproductive assets. Similarly this discourages investment in other assets. This is because entrepreneurs will not think it is financially viable t o invest and pursue a project that will only result in less profit, due to the higher costs of inflation. Similarly inflation increases the cost of production thus also discouraging entrepreneurs.For example, if inflation is high, people will invest in gold and real estate. Otherwise known as the opportunity cost, because people will allocate their resources into such ventures (gold and real estate) they must then forego investing into other ventures that are considered productive such as a new business, that may be producing capital goods or normal goods and services. Also by discouraging entrepreneurs is the rise in the costs of production that occur due to inflation, for example the raw materials.Similarly interest rates will rise, making it more expensive to borrow funds for investment purposes, making investment projects less profitable. Either way, inflation can cause a loss in production of capital goods, leading to lower living standards in the future, or a loss in the produ ction of normal goods and services, leading to lowering current living conditions, as current needs and wants go unsatisfied. Since returns from productive capital take longer to materialise, it means that entrepreneurs are also faced with a lesser return.This means that if the rate of inflation is greater than the return offered by the investment, then the project will not be considered economically viable, nor worthwhile. Similarly the risk of loss from any investment project will grow with inflation. Many small businesses take a couple of years before they start to make a profit, so if inflation is high, and is was not taken into account when the business was first planned, then the cost of production may rise, and the resulting price for the commodity will be too high for consumers. ) If inflation is present and is greater than that overseas, it reduces the overseas competitiveness of the Australian economy. This is because inflation is not only associated with a rise in prices, but also an increase to the costs of production. Therefore making overseas exports cheaper to the domestic market. Similarly the overseas firms do not have to put up with the rises in the costs of production. This provides a leakage in the circular flow (purchase of exports) and thus dampening demand in the domestic market, which if severe enough could lead to a recession, bringing with it many economic problems.An example of how inflation can lead to a recession, would be the 1970s, when high inflation averaged at 10. 4%. Which due to the high oil prices and strong domestic demand led to high inflation in the 1980s (8. 1%). This period of high inflation led to a dampening in spending and a recession in the 1990s (1990-1992) causing many problems such as unemployment. 3) It also creates many winners and losers in the economy. Those that benefit are the owners of real assets (real assets and gold), because their assets are worth more.As well as those belonging to well-organized grou ps who can demand wage increases (eg, strong trade unions. ) This can lead to rapidly rising wages, increasing the costs of production, and also discouraging investment in productive capital as mentioned above. In addition to this inflation can benefit people who have already borrowed funds because the cost of repayment, represent less as inflation rises. This is because inflation is defined by a loss in the real value of money, therefore the repayment will diminish over time.Conversely inflation disadvantages those on fixed incomes because they lose the real value of income as their money represents less purchasing power. Similarly for the same reasons it disadvantages those that keep their money in liquid form (ie, bank deposits). Also those that lend money receive less back in terms of repayment, due to the loss in value (eg, A mortgage repayment in 1960 was worth more than in 1980, where high inflation had occurred).Also since it reduces international competitiveness, inflation can disadvantage exporters who find themselves with less business opportunities. This can effect the economy, as overseas markets will not purchase Australian goods and services. Therefore the economy will not receive the injection into the circular flow that it would usually, without inflation. Without the strong domestic support that is present in Australia’s economy, the economy could have the effect of dampening economic activity, and aggregate demand.When inflation occurs in the Australian economy it usually had a number of causes. The main causes are excess aggregate demand, cost-push inflation, inflationary expectations and imported inflation. inflation disadvantages many groups in the economy, who in turn benefit other groups. This is because inflation can influence the allocation of resources in regards to encouraging and discouraging investment, the overseas competitiveness of the Australian market, as well as effecting individuals and firms, who often benefit at th e expense of others.

Field Trip Day To The Museums †Creative Writing Journal Entry

Field Trip Day To The Museums – Creative Writing Journal Entry Free Online Research Papers Field Trip Day To The Museums Creative Writing Journal Entry On Tuesday the 1st of February we went on a field trip to the Market Theatre, Museum Africa and The Goodman Gallery. We watched a play performed at the Market Theatre, we looked at lots of historical items at Museum Africa and saw a few very original artworks at The Goodman Gallery. On the Road On the way to the museums, there was graffiti on the walls of some of the buildings. This graffiti is just a way for the common people to display their own artworks and to spread their own messages to whoever looks at it. Outside of Museum Africa there was graffiti high up on a wall and it displayed three messages: Good for the soul Believe in yourself The sky is the limit Museum Africa Once inside Museum Africa we had lots to look at in little time. There were quilts, photographs, ancient cameras, paintings and sculptures. This museum was great and some of the artworks and other pieces were outstanding There were many more sections in the museum, but time was short we had to move on to the Market Theatre. The Market Theatre Inside the Market Theatre we watched a play. It was about a university created by tribesmen to bring different tribes together, to teach the young boys about their roots and how they become men. The boys who attend this university will go through the procedure of becoming men. The play was amazing, the effects and the actors really made you feel the emotions within the play! I did not understand every word, but the acting explained it all to me. The Goodman Gallery Next we went to the Goodman Gallery, a high-class museum in Rosebank. It is not up to me to decide what is art and what is not, but I can decide for myself what is good art and what is bad art. Although many will disagree, but what I saw at the Goodman Gallery did not impress me at all. One of the drawings was like a child’s drawing and it cost about R50 000†¦why? Digital Tree No, this is not an artwork, it is just a digital image that has been created and we think it is not art. â€Å"†¦why we think of Leonardo as Art and an advertisement in a magazine as Not Art.† (Pointon, 1997: 3) The whole effect with the unrealistic branches on the tree drew my attention. It is interesting the way he created it and fitted the circuit boards to the branches almost exactly in place. Conclusion It was a successful trip, we saw a lot and learnt a lot, and this will help us to expand our creativity for the future. So overall, the Goodman Gallery was terrible for me, Museum Africa was really good, but the play was definitely the highlight of the day! Sources Marcia Pointon, History of Art a Students` Handbook 4th edition, 1997 Art Street Design, www.artstreetdesign.com Research Papers on Field Trip Day To The Museums - Creative Writing Journal EntryBringing Democracy to AfricaHip-Hop is ArtAnalysis of Ebay Expanding into AsiaMind TravelAnalysis Of A Cosmetics AdvertisementStandardized TestingEffects of Television Violence on ChildrenThe Masque of the Red Death Room meaningsRelationship between Media Coverage and Social andDefinition of Export Quotas