Human Resource Management

Which are the points will you keep in mind for recruiting new personnel into your organization if you are the HR Manager of a footwear manufacturing company?

One of the most important HRM function is the appropriate recruitment and selection of suitable staff. If I will be the HR Manager of a reputed footwear company, I will surely look into many aspects to get the best suitable person for my company. Thus my selection process will be based on the following objectives,

 

1. Hire the right person.

 

2. Conduct a wide and extensive search of the potential position candidates.

 

3. Recruit staff members who are compatible with the college or university environment and culture.

 

4. Hire individuals by using a model that focuses on student learning and education of the whole person.

 

5. Place individuals in positions with responsibilities that will enhance their personal development.

 

Effective recruitment and selection procedures are critical components of an organization’s human resource management process. Having determined its staff requirements, the organization next has to ensure that it has systems in place to attract and select candidates of the right caliber. This can be done by,

 

1. Alternative sources of potential recruits are known and used and there is a process for tapping these sources.

 

2. There are systems in place that enable candidates to be assessed effectively and to ensure that vacancies are filled by the most appropriate people and in the most cost effective manner.

 

3. Any selection processes in use treat existing employees and potential recruits fairly and honestly, meet legal obligations and provide equality of opportunity.

 

4. All administrative procedures, such as obtaining references, preparing a contract of employment etc are handled efficiently.

    

The Recruitment Process

 

The various stages in the recruitment process include,

 

Identifying the need to recruit.

Identifying the job requirements.

Deciding the source of potential recruits.

Deciding the selection method.

Short listing candidates.

Selecting the successful

 

1. IDENTIFYING THE NEED TO RECRUIT

 

When a vacancy occurs, the first issue to consider is whether there is a need to fill it. There is also the question of whether it is the same job that needs to be filled. This should be based on the following alternatives,

 

A. Reorganization

 

It may be possible to reorganize the job in a particular function

 

so that the same work can be done by fewer people. This will reduce staff members and will increase productivity. When is business is tight this is easier to achieve, as people will be less willing to put their jobs at risk and may consequently be prepared to work harder for lower rewards. However, in the longer term such an approach may lead to resentment on the part of employees.

 

B. Flexible Working

 

More flexible working arrangements may achieve the same productivity with having to increase or maintain staff members. At the simplest level, increased overtime can compensate for a short-fall in staff members, although this clearly lacks a certain degree of flexibility. Flexible working hours and annual hours agreements can be particularly valuable mechanisms for covering longer daytime working hours. Teleworking can enable people to be highly productive from a home base without having to spend time and money commuting.

 

C. Using Part-Time or Casual Staff

 

Part-time staffs are actually employed on a regular basis for a set of number of hours, whereas casual staffs are hired as and when the need arises. The latter arrangement is obviously a more flexible but it needs to be remembered that casual staff can acquire the rights of permanent employees in certain circumstances. An alternative is to employ agency staffs, who are available to cover a range of functions.

 

D. Using Contractors

 

Contractors are commercial providers of services for which the organization has to pay. It makes sense to use contractors whenever the organization has a periodic rather than a permanent need for a particular service. Also there is an increasing trend of interim executives. These are experienced executives who will generally have senior level experiences of an area which they may be brought into cover. They can be employed for a period of months to cover for short term absences or to cope with peak workloads.

 

E. Staff Transfer or Promotion

 

A post can be filled by internal promotions or staff transfer rather than by seeking to fill it from outside the organization. This can have obvious benefits from the point of view of motivation and morale.

 

F. Job Sharing

 

Job sharing has some obvious benefits for those with other commitments. It opens jobs to people who might not otherwise have been able to consider applying.

 

G. Computerization

 

Computerization has been producing more information rather than trying to reduce staff efforts. This could reduce staff effort and staff costs.

 

These points will give solution for recruiting new staffs.

 

IDENTIFYING THE JOB REQUIREMENTS

 

There should be clear job description – and the need to a vacancy is an ideal opportunity to review any existing job description to ensure that it still meets the organization’s requirements.

 

Content of the Personnel or Person Specification

This can be explained by Alex Rodger’s Seven Point Plan and Munro Fraser’s Five Fold Grading System.

 

Seven Point Plan

 

1. Physical Make – up : Health, Appearance, Bearing and Speech

2. Attainments: Education, Qualifications, Experience

3. General Intelligence: Intellectual Capacity

4. Special Aptitudes: Mechanical, Manual Dexterity, Facility in use of words and figures

5. Interests: Intellectual, Practical, Constructional, Physically Active, Social, Artistic

6. Disposition: Acceptability, Influence over Others, Steadiness, Dependability, Self Reliance.

7. Circumstances: Any special demands of the job, such as ability to work unsocial hours, travel abroad etc.

 

Five Fold Grading System

 

1. Impact on Others: Physical Make-up, Appearance, Speech and Manner

2. Acquired Qualifications: Education, Vocational Training, Work Experience

3. Innate Abilities: Quickness of Comprehension and Aptitude for Learning

4. Motivation: Individual Goals, Consistency and Determination in following them up, Success Rate

5. Adjustment: Emotional stability, Ability to stand up to stress and Ability to get on with people

 

MSL / McBer Competency Cluster for Managerial Jobs

 

Integrated Competency Model

 

1. Understanding what needs to be done

A. Reasoning

B. Visioning

C. Know – how

D. Expertise

 

2. Influencing and gaining support

A. Communication

B. Interpersonal Skills

C. Personal Impact

D. Direct Influencing

E. Organizational Influencing

 

3. Producing the results

A. Directing

B. Motivating

C. Productivity

4. Achieving against the odds

A. Enterprise

B. Achievement

C. Confidence

D. Resilience

 

When a new or changed job is filled, there is likely to be a need to consider the rate of pay or the grade and the conditions of employment to be attached to the job.

   

RECRUITMENT SOURCES

 

For an effective recruitment, we should keep in mind the sources of recruitment.

 

1. The Organization Itself

 

Internal recruitments can be of motivation, morale and development. This will decrease the staff costs, but too much internal recruitments can starve the organization of fresh ideas and approaches from external candidates.

 

2. Word of Mouth

 

Jobs may be often filled by existing employees letting their friends and acquaintances know of any vacancies. While this approach will save the cost of advertising and recruiting, appointing friends and relatives of existing employees can clearly have the effect of restricting employment opportunities to certain groups only. Also, this will attract the group formation in the organization.

 

3. Newspaper and Magazine Advertisements

 

A common way of advertising is through local or national newspapers and professional journals and magazines. Applicants recruited locally can be given in the local newspapers and senior posts can be advertised in the national newspapers. For particular types of professional or specialized posts, professional journals may be appropriate.

 

4. Jobcentres and Employment Agencies

 

Jobcentres will display job vacancies and refer possible recruits to an organization. Agencies tend to specialize in one particular type of staff such as secretaries or accountants. Whereas the service provided by the jobcentres is free, agencies charge a fee if an appointment is made.

 

5. Selection Consultants

 

These people can bring considerable expertise to the selection process and can give advice on the kind of reward and benefit package. They can advertise vacancies, interview and shortlist candidates and provide assistance for the final selection. The main drawback is the high cost for these people.

 

6. Executive Search Consultants (Headhunters)

 

This can be utilized for the senior posts. In this case, the consultants will conduct a market search, targeting people in senior positions in other organizations or referring to their own database of candidates. The main drawback is that of high cost and will automatically exclude those outside the headhunter’s network.

 

7. Schools and Universities

 

The organization can recruit candidates from schools, colleges and universities, who can then be properly trained. This requires many interviews, but it is less I cost.

 

8. Internet

 

Through internet, the vacancies will be available to a number of people who can access international websites through the cheap cost a phone call. This way will increase the databank of both employees and candidates.

 

SELECTION METHODS

There are many kinds of selection methods,

 

1. Application Form or Curriculum Vitae

 

The candidates respond to an application form through a letter of application, application form or curriculum vitae. CV is mostly used for senior posts.

 

Advantages of Application Forms

 

1. As information is easily structured, it is easy to structure the candidates.

2. The organization gets information it wants.

3. The form can be used as the basis for the interview.

4. Standard of completion gives an indication of a candidate’s suitability.

5. It can form the part of personal file.

6. It reduces the likelihood of unfairness or discrimination.

7. Forms can be used to collect data for equal opportunities research purposes.

8. Information can more easily be computerized.

9. Forms can reinforce positive messages about the organization.

Disadvantages of Application Forms

 

1. Different forms may have to be prepared for different jobs.

2. There is little opportunity for the candidate to display creative flair.

3. Insufficient space is sometimes provided and additional pages have to be attached.

4. Badly designed forms could cause difficulties.

 

2. Letters of Application / CVs

 

Candidates respond to the advertisements through Letters of applications or CVs

 

Advantages of Letters of Applications or CVs

 

1. The standard of presentation will give some idea of the suitability of the applicant, although there are a number of companies who will prepare a professional CV for a fee.

 

2. There is no danger that the applicant will be discouraged by having to complete an application form.

 

3. Different aspects of background and experience can be covered as fully as the individual thinks fit.

 

4. Individual can prepare a standard CV that can be sent out very quickly.

 

Disadvantages of Letters of Applications or CVs

 

1. The fact they can be professionally produced can give a misleading impression of the applicant’s narrative skills.

 

2. The greater variability in the type and format of information provided make like for like comparisons more difficult.

 

3. The applicant will give the information that he or she wants to give, not necessarily what the organization wants.

 

3. Telephone

Inviting applications by telephone can produce a rapid response to an advertisement. This can clearly save time& effort for both the organization & the applicant.

 

4. Interviews.

 

A selection interview is a controlled conversation between an applicant for a job & the employer, or someone representing the employer, designed to test the suitability of the applicant for the job in question. In the selection process the specific aims of the interviewer are:

 

1. To find out as much job-relevant information as possible about the applicant so that his or her suitability for the job can be assessed against the pre-determined criteria for the effective job performance.

 

2. To give further information about the job & the organization.

 

3. To ensure that the process is as fair as possible& is perceived to be fair.

    

The most important criticisms against interviews are as follows:

 

1. Interviewers make up their mind about a candidate within the first 3 or 4 minutes of the interview spend the rest of the interview looking for evidence to confirm their original view.

 

2. Interviews seldom change the opinion formed from the original application & the candidate’s appearance.

 

3. There is a tendency to give more weight to unfavorable evidence than to that which is favorable.

 

4. When interviewers make up their minds early in the interview, their behavior tends to convey this to the candidate.

 

5. One overriding characteristic, such as appearance or speech, can tend to overshadow other factors.

 

6. When there are a number of interviewers, there is frequently disagreement between them about candidates, sometimes leaving the way open for everyone’s second choice.

 

7. Interviewers tend to recruit in their own likeliness.

 

Despite of these drawbacks, the interview remains popular because:

 

1. It is perhaps the best way to assess the compatibility of the candidate with his or her colleagues or boss, which is probably one of the most crucial factors affecting the success of any employment relationship;

 

2. It is a flexible and quick way of gaining information about a candidate and of giving more information about the job and the organization.

 

3. As Torrington and Hall have identified, there is also a ritualistic aspect to the interview-it is usually an expected and accepted part of the process.

 

Interviews can be formal or informal, be conducted by one individual or several, or follow one of a number of strategies or techniques.

 

A person has to follow a number of rules for a successful interview, like:

Before the Interview

 

1. Ensure that candidates are adequately briefed about the organization and the job.

 

2. Ensure that you prepare for the interview by reading through the relevant applications and have all the necessary documentations including the job descriptions and the personal

Specifications.

 

3. Arrange venue that is free from interruption and, if necessary, have telephone calls diverted.

 

4. Ensure that you, any other interviewers and the candidates know the time, date and venue.

 

5. Ensure that enough time is set aside for the interviews and allot time for discussing applicants and for a possible overrun.

 

6. Formulate some questions in advance and ensure that all important aspects are covered.

 

7. Where more than one interviewer is involved, decide who will chair the interview and who will ask the questions.

 

8. Try to ensure that all those involved in interviewing have been trained in the process.

 

9. Give some thought to the seating arrangements and to the kind of interview you wish to conduct.

10. Make appropriate arrangements for the reception of applicants in particular giving them somewhere to sit, ensuring that they are told where the cloakroom facilities are and making sure that the reception staff know they are coming.

 

During the interview

 

1. Try to stick to the timetable.

 

2. Follow a clear structure during the interview so that there is an obvious beginning, middle and end.

 

3. Start by welcoming the candidate and try to put him or her at ease, perhaps by chatting about something in consequential.

4. Introduce yourself and any other interviewers.

 

5. State the purpose of the interview and describe how it is to be conducted.

 

6. Try to ask questions that are open ended and encourage discussions.

 

7. Ensure that you avoid questions that could be construed as discriminatory.

 

8. Avoid just going back over the application forms, repeating the information that is already there.

 

9. Do not hesitate to probe if the need arises.

 

10. Listen carefully to the replies remembering that most of the talking should be done by the candidate and try to read between the lines.

 

11. Ask the interviewee to supply examples of the kinds of things he or she has done to get a clear idea of current and past experiences.

 

12. Keep notes of what is said, if a number of candidates are being interviewed.

 

13. At the end of the interview, invite the candidate to ask any questions about the job or the organization.

 

After the Interview

 

1. Discuss and record your conclusion.

 

2. Notify the candidates of the outcome as soon as possible.

 

3. Negotiate the salary and terms of the employment with the successful candidate and prepare a contract of employment.

 

4. Undertake the follow – up research through interview or by using the organization’s performance, management process to check whether the selection predictions have approved accurate.

 

5. Selection Tests

The main selection tests are:

Psychometric Tests

 

This involves procedures to applicants in such a way that their response can be quantified. Any test should be,

 

1. A sensitive measuring instrument that discriminates between subjects.

 

2. Standardized, so that individual score can be related to others.

 

3. Reliable, in that it always measures the same thing.

 

4. Valid, in that the test measures what it is designed to measure.

 

5. Acceptable to the candidate

 

6. Non discriminatory.

 

Different types of Psychometric tests are,

 

1. Intelligence Tests

 

Intelligence test, the oldest kind of psychometric test have been designed by Binet &Simon in 1905.The scores are expressed in terms of Intelligence Quotient or IQ which is the ratio of mental age to the chronological age of the individual. The main problem with the intelligence test is that they are attempting to measure something which is very complex and about which there is much disagreement. They have limited application in the selection context.

 

2. Aptitude and Attainment Tests

 

These are designed to test particular aptitudes or abilities for the job. Aptitude test measure individual’s potential to develop whereas attainment these measure skills that have already been acquired. Some of the most common attainment tests are typing test, which are widely used and accepted.

 

3. Personality Tests.

 

Personality is the integration of all of an individual’s characteristics into a unique organization that determines and is modified by his attempts at adaptation to his continually changing environment. Personality test can take different form testing like

Individual traits or characteristics, interests or values. These tests include the 16PF, Myers-Briggs, the FIRO-B & Saville and Holdsworth’s OPQ.

 

Recruitment function can become easy if it is done with enough skill and talent. This can be made successful by good team work and with good ways to find the talented ones. Otherwise it will become a total headache to the HR manager. Good employees will work for the progress of the organization and so the growth of the organization rests upon the person who recruits the personnel necessary for the organization. I will surely use all methods possible for recruitment and selection process.

Other Question

(1) International Law:
What are your perceptions on the Universal Declaration of human rights? Would you like to amend any of the articles or add a new article to the declaration?

(2) Strategic Management:
Select an appropriate generic strategy to position your printing business unit in its competitive environment (map the environment primarily as a pattern of competitive pressures from rivals, suppliers, buyers, entrants and substitutes).

(3) Business English:
Write a letter to the Chief Election Commissioner, expressing your views on the disqualification of party candidates empted from fighting elections. Express your views on the moral code of the candidates. How criminals or other offenders can be kept out of the pulling fray. What should be done to amend the laws on this by the parliament? (Your letter will belong to which category of communication)

(4) Management Information System
How will you plan a Management Information System in marketing information system taking into account the actions of antecedents or consequences of consumers, competitors, employers, institutions, suppliers, wholesalers, retailers, govt. bodies and NGO’s (NOTE: You must also take into account the physical, technological, economic factors, beside legal and social taboos) (Take an example of your choice)

Perspective Management

Q:WHICH ARE THE ASPECTS YOU WILL KEEP IN MIND ABOUT THE PERSPECTIVE OF MANAGEMENT TO BE AN EFFECTIVE STRATEGIC MANAGER IN AN INDUSTRY ?

A: FOLLOWING ARE THE VITAL ASPECTS WHICH I WILL KEEP IN MIND ABOUT   THE PERSPECTIVE OF MANAGEMENT TO BE AN EFFECTIVE STRATEGIC MANAGER IN AN INDUSTRY

1 . Planning:

Managers are responsible for the efficient Use of organizational resources including People, plant , equipment and supplies .The effective use of such resources Requires managers to devise communicate implement and monitor Plans to achieve organizational aims and objectives.

Following should be kept in mind :

A. Developing plans

Prioritizing and organizing work activities in line with organizational aims and objectives.

B.Monitoring performance

Monitoring and reviewing performance against organizational aims and objectives.

C.Focusing on results

Maintaining a focus on achieving organizational aims and objectives

D.Managing change

Planning for and implementing change to achieve organizational aims and objectives

E. Managing improvement

Taking action to improve performance by acting on the lessons from past successes and failures

2. Communication:

The principles and processes of effective communication underpin the role of the manager. Managers need to be able to communicate effectively with a range of people, including team members, colleagues, line managers, customers and suppliers. It is important that managers are able to organise, present and communicate their views, ideas and plans according to the needs of the people with whom they interact.

Following should be kept in mind:

A. Explaining clearly

Presenting ideas, plans and problems in ways that promote understanding .

B. Influencing others

Presenting views and opinions clearly and positively to others, resulting in agreement and consensus .

C. Resolving conflict

Understanding the problems and concerns of others and working towards an appropriate resolution.

D. Listening

Seeking and listening to the views and opinions of others.

3. Team-working :

Managers achieve organizational aims and objectives through the work of other people and in particular teams. Setting up and managing effective teams require managers to inspire and motivate team members, ensuring that everyone understands what the team is trying to achieve.

Following should be kept in mind :

A. Building teams

Involving team members in planning and organizing their work to meet team objectives

B. Leading teams

Providing teams with a clear understanding of their purpose and objectives

C. Encouraging team-working

Minimizing conflict and problems to enable the team to perform

D. Representing teams

Presenting a positive image of the team.

4. Leadership:

Managers are leaders of people and need to inspire commitment and enthusiasm in others in order to achieve organizational aims and objectives. To be effective, managers need to build strong working relationships which means providing clear guidance and direction, acting as a role model and respecting the views and opinions of others.

Following should be kept in mind:

A. Leading by example

Acting as a role model for others

B. Providing guidance

Providing support and advice to others in order to enable the achievement of organizational aims and objectives

C. Motivating others

Enthusing, and gaining the commitment of others to decisions and plans.

D. Building trust and respect

Maintaining confidences and honoring commitments and promises made to others.

E. Leadership style

Using different leadership styles according to the needs of people and situations.

F. Communication

Ensuring people are aware of and fully understand plans and decisions .

G. Resolving conflict

Understanding the problems and concerns of others and working towards an appropriate resolution.

5.Personal effectiveness:

Personal effectiveness enables to achieve results and meeting personal and organizational objectives. Managers are literally faced with hundreds of decisions to make every day: choices about how to priorities activities, how to allocate their time and how to communicate and present their plans and opinions to others. An important part of improving personal effectiveness is recognizing and addressing personal development needs.

Following should be kept in mind :

A. Acting assertively

Presenting views and opinions clearly and taking responsibility for initiating action

B. Managing time

Maximizing the use of time to achieve aims and objectives

C. Developing self

Improving personal performance and skills by recognizing weaknesses and areas for improvement

D. Decision-making

Obtaining and analyzing accurate information in order to make effective decisions.

6. Managing people:

Managing and developing people are perhaps the hardest part of management. Managers must be able to agree clear, measurable objectives, manage the performance of both individuals and teams and provide regular and constructive feedback on their performance. Managers must provide timely and appropriate support for people, ensuring that they possess the right knowledge and skills to achieve their objectives.

Following should be kept in mind:

A. Setting objectives

Negotiating individual and team objectives which are challenging and achievable

B. Managing performance

Reviewing individual and team performance to ensure that objectives are achieved

C. Developing others

Helping others to improve their knowledge and skills in order to achieve their objectives

D. Providing feedback

Giving individuals and teams constructive feedback designed to improve performance.

7. Managing Change:

Managers are increasingly required to not only manage, but to initiate organizational change. Managers need to be able to gain people’s commitment to change, plan and implement change and to monitor the impact of change in relation to the organization’s aims and objectives.

Following should be kept in mind:

A. Leading change

Identifying the need for change to achieve organizational aims and objectives

B.Planning change

Preparing plans to implement change programmers

C.Implementing change

Putting into practice a strategy and plans to achieve change

D. Monitoring change

Reviewing progress against change plans

8. Managing projects:

All managers manage projects whether they are large or small, short-term or long-term. Project management involves developing and agreeing a project plan and monitoring and controlling the implementation of and changes to the project plan to achieve the project’s Outcomes.

Following should be kept in mind :

A. Project planning

Determining the scope of the project and its outcomes and the required resources and critical time lines

B. Project implementation

Managing the resources to achieve the project’s outcomes on time and on budget

C. Managing project progress

Monitoring project progress and adjusting the project plan as required to achieve project outcomes .

D. Managing project closure

Confirming satisfactory project completion and identifying the lessons that can be learned for the future

9. Service Performance:

Managers need to deliver service levels as set out in their organization’s plans and strategy. Effective planning and performance management combined with a strategy of continuous improvement enables managers and organizations to consistently satisfy and exceed the needs of customers both external and internal.

Following should be kept in mind :

A. Developing plans

Prioritizing and organizing work activities in line with organizational aims and objectives

B.Monitoring performance

Monitoring and reviewing performance against organizational aims and objectives

C. Managing performance

Reviewing individual and team performance to ensure that objectives are achieved

D. Managing improvement

Taking action to improve performance by acting on the lessons from past successes

10. Developing people:

Managers deliver organizational aims and objectives through the achievements of the people they manage. To be effective, people need to have clear objectives and a sense of direction and the knowledge, skills and confidence to perform. The role of the manager in developing people is more important now than at any time in the past; managers need to be developers of people.

Following should be kept in mind :

A. Setting objectives

Negotiating individual and team objectives which are challenging and achievable

B. Managing learning

Creating a supportive learning environment where people can develop new skills and confidence

C. Performance coaching

Building confidence levels, knowledge and skills through one-to-one coaching

D. Providing feedback

Giving individuals and teams constructive feedback designed to improve performance

11. Customer Focus:

Managers need to be customer focused in order to deliver the level of service and performance that is required of their organization and team. Customer service requires an understanding of the needs of both internal and external customers, taking action to meet customer needs and implementing strategies to improve customer service levels.

Following should be kept in mind :

A. Understanding customer needs

Identifying the needs of both internal and external customers .

B. Meeting customer needs

Addressing customers needs by taking action.

C. Resolving customer issues

Taking responsibility for investigating and resolving customer issues

D. Improving customer service

Identifying and implementing strategies to improve customer service

ABOVE GIVEN ASPECTS I WILL KEEP IN MIND ABOUT THE PERSPECTIVE OF MANAGEMENT TO BE AN EFFECTIVE STRATEGIC MANAGER IN AN INDUSTRY.

Information Technology

Q: How will you create an impact of information technology in your organization and do international business?

A: In 1998 the United States exported $105 billion less in goods and services than our international trading partners were selling to us. With the latest summarized trade data in for 1999, those numbers will most likely crest the deficit past the $200 billion mark. Since the total United States economy is closing in on $8 trillion annually, there are some economists who contend that we can easily absorb these unending mega-outflows of U.S. dollars without any adverse impact on our nation as a whole.

Whether or not this view is really credible is too complex a subject to address here. Instead, let us look at the bountiful foreign trade Opportunities available to U.S. manufacturers who stay awake to the potential of Information Technology (IT) and the manufacturers’ representatives who use IT to find and sell to international customers. In order to do this, we have to start with the very perception that manufacturers have regarding manufacturers’ representative attributes.

A recent survey of United States manufacturers asked what they thought were the most important attributes an agent must possess to succeed. “Technical product knowledge” was most valuable while “Internet marketing capabilities,” even in mid1999, came in with only I percent of the vote. With the advantages of IT for the manufacturer, the agent and the foreign buyer, advocacy and praise of comprehensive technical product knowledge is misplaced and takes us in the wrong direction. Surveys such as the one cited here not only reflect the current sentiments of the people, but also perpetuate similarities and traits that make it easier for us to identify those people and companies that we want to be commercially associated with.

It is no wonder that most manufacturers are unaware of this fact – what little literature there is on the subject is not readily available. Thus, with a principal’s preconceptions fixed in a pre-IT world, they do not grasp the convergence of IT with rep agencies that combine this technology and international experience. As a result, they will have a difficult time working from the same set of assumptions about how to conduct business internationally. IT is a miraculous tool. As Copernicus, the 16th century astronomer, posthumously demonstrated, evolving knowledge inevitably trumps conventional thought. And keep in mind that this is the same type of conventional thinking that is producing our gargantuan trade deficits. The current conceit might be that the world economy will always revolve around the United States and we can remain satiated indefinitely with just our home marketplace. Knowing that this thinking is not sustainable should help in forcing us to reappraise those things that can facilitate more exports of domestic products to our international partners.

In the continental United States, the logistics of a manufacturers’ representative calling on customers to explain their line (s) of products in their limited geographic area mostly precludes the need for Internet marketing. But internationally, when one factors in eight to 16 time zone differences on multiple continents, IT inverts the above scoring of attributes. Mindful of the obvious impracticality of traveling in person to see multiple customers in far-flung locales, I have formed some guidelines concerning what lines to take on and how to interact with manufacturers:

– Category Creators – Take on lines from companies that are making unique products. These lines, if they are highly differentiated and easy to understand through your client’s Web site, give your foreign customer an immediate marketing advantage in his country and make unnecessary the need for a high degree of technical product knowledge.

– Joint Selling – If you must take on a unique but highly technical product, make sure you work out an ongoing technical assistance arrangement with your manufacturer.

– Gradualism: Domesticating the Process of International Trade

– For those principles that are still uncomfortable working with overseas customers, start by selling to the United States buying offices of your foreign buyers. It is always interesting how many client manufacturers are surprised that many international buyers are located in North America.

– Wave the Flag – Make sure your contract with manufacturers spells out that you do not want information relating to detailed product cost, production process methods or confidential business strategies. With the end of the Cold War, there has been a shift from the threat of ICBMs to economic warfare. Given the reality of industrial espionage, even amongst our own allies, by purposely keeping your company separate from the highly sensitive information of your principal, you demonstrate foresight that you have your client’s best interests in mind.

– Wave Them In – The “them” is the FBI and the National Counterintelligence Center (NACIC). The FBI can consult with your clients about protection of sensitive data, and the NACIC posts advisories that can heighten their overall awareness of possible risks. Combined, this step and the previous one will help them feel more confident that they can proceed in the export process.

– Wave Goodbye – If it becomes obvious during your meeting(s) with the manufacturer that they do not have the drive or the intent to create the infrastructure necessary for export, then Opt Out. You will be doing everyone a favor, especially your valued overseas buyers who have surmised that part of the agent’s job is the vetting of unreliable suppliers.

Now that the attributes and traits of international manufacturers’ representatives, vis-a-vis domestic representatives, have been somewhat scrambled, I want to point out how international agencies might fall under a new classification. If under the current taxonomy, domestic manufacturers’ representatives are a “species,” then international manufacturers’ representative agencies, as a “subspecies,” might best be named “International Information Brokers” (IIB). Besides selling the manufacturer’s products or services to foreign buyers, what greatly distinguishes the IIB is: They have developed the skills for the remote retrieval of information and the organization of that information for manufacturers that desire to sell internationally. Though hazy and vague to those not familiar with the process, in the hands of an IIB, resources are accessible from an ever-widening variety of sources.

Although in the dynamic of the Internet there is great flux, currently there are about 12,500 databases (most of them “user– unfriendly”) and close to 2,400 online systems that can be plowed through. And that is only a part of what the 1113 might have to traverse. When one factors in data from the consulates, trade associations, chambers of commerce, government officials, college professors, writers, international trade lawyers, statistics, lists, reports, CD,ROMs, press releases, trade journals, specialty magazines, Encyclopedias of Associations, USA government publications on trade, United Nations agreements, Trade Block agreements, a smattering of non-governmental organizations, it becomes clear how an IIB can – as an outsourced specialist – add value to the whole process of international sales.

With intimate access to this type of information, here are the attributes that an IIB can offer manufacturers who want to sell into foreign markets:

– Internet marketing capabilities

– Consultative international selling capabilities

– Niche market specialization in overseas markets

– Intelligence gathering

– Helping manufacturers clearly define exporting goals

– Training of manufacturer’s international department

– Setting up industry specific email and fax subscriptions

– Selling to foreign governments

– Working in conjunction with the United States government

– Straight, fee-based international marketing research

While international trade rules have been greatly liberalized in the last 14 years, this great transfer of wealth to other countries is only in small measure making its way back to the United States in exchange for our exports. It is an embarrassing cultural irony that the United States, the land of immigrants, is being labeled by some of our foreign competitors as not having any great enthusiasm to go after and interact with foreign customers. (We can go to the moon, but start talking Istanbul and we cannot seem to find the budget.) As cyclical booms flatten out and growth slows, domestic sales in and of themselves fail to be the plasma that circulates to all parts of our economic system. The United States government knows this and that is why they spend so much time getting the word out to manufacturers about not only the potential benefits for their own company’s bottom line, but the very real overall economic benefits for our country as a whole.

The mainstream popularity of the Internet, an American invention, formerly the province of only the military, academia and industry, gives both manufacturers and manufacturers’ representatives, through IT, an incredible tool to establish a presence in the worldwide marketplace. In the hands of specialized agents, working with forward thinking manufacturers, exporting, if not necessarily an act of citizenship, is a means of sustaining the viability of our nation as a whole. The primacy of all customers, regardless of location, can become actual with information technology. And it is none too soon. There is no denying the long-term impact on our country because of our collective squandering of trade opportunities. The terrain must be decoded – just as our foreign partners are assiduously decoding the United States marketplace.

Because of the enormous trade surplus that the Japanese economy was building LIP with its worldwide trading partners up until the mid- 1980s, and to better reflect the overall strength of the Japanese economy, the leading economic countries (then known as the G-5, now known as the G-8) signed the Plaza Accord in New York City in 1985 to raise the value of the yen against the U.S. dollar and other major currencies. The result: the United States dollar lost value that slowly but surely made us, as a country, a competitively priced exporter. But something has gone wrong. As the numbers below show, even though the U.S. Department of Commerce is assisting U.S. companies, the German and Japanese exporting communities are significantly more focused and efficient in exporting their countries’ finished products.

International Trade Management

Q: Which are the basic information you should have if you are to be an effective   International Trade Manager in an exporting firm ?

A: International Trade Management

Which is the basic information you should have?

If you are to be an effective International Trade Manager in an exporting firm?

What is International Trade?

International trade can be defined as either the buying (importing) or selling (exporting) of goods or services on a global basis.

Thanks in great measure to the Internet; many starting businesses can enrich their prospects of success by incorporating IT into their overall business plan. In some cases, a business can be enhanced by incorporating IT marketing to supplement a domestic operation. In other cases, a business can depend solely on international trade.

Let’s review some examples:

Exporting

Quality Naturally Foods, (say) ABC Inc ( say) ., in the City of Industry, manufactures prepared bakery mixes for its sister companies Yum Yum Donuts and Winchell Donuts. These and similar mixes are now sold to outlets in India. The added volume has reduced costs of production which has benefited all customers.

Assume that the xyz.com, the preeminent online marketer (and inspiration for thousands of online entrepreneurs) has a home page toolbar called “International”. The company xyz says: “Around the World, wherever you are, get what you want—fast—from our family of Web sites.”

Importing

Good Tables, Inco Indian company , formerly manufactured furniture in its plant but was losing sales due to cheaper foreign made products. The manufacturing was moved to another place in a “maquiladoras” factory.

Funrise, Inc. Woodland Hills, India, has become a world leading marketer of toys. Design, packaging and production are outsourced, primary to vendors in China.

Hollow Corporations

International trade is especially appropriate for the rapidly growing number of “hollow corporations.” Session one of this course refers to a hollow corporation as a business without a factory and with a minimum number of employees in which manufacturing is performed by outside suppliers. A hollow corporation might depend on outside suppliers for virtually all of its products, such as an American toy company importing product from China. Or, it might depend on outside suppliers for selected components in its overall product line, such as The Boeing Company. (Boeing is using Japanese firms for components of the new 787 airliner.)

Advantages and Disadvantages of International Trade

Advantages to consider:

• Enhance our domestic competitiveness

• Increase sales and profits

• Gain our global market share

• Reduce dependence on existing markets

• Exploit international trade technology

• Extend sales potential of existing products

• Stabilize seasonal market fluctuations

• Enhance potential for expansion of your business

• Sell excess production capacity

• Maintain cost competitiveness in your domestic market

•Disadvantages to keep in mind:

• We may need to wait for long-term gains

• Hire staff to launch international trading

• Modify your product or packaging

• Develop new promotional material

• Incur added administrative costs

• Dedicate personnel for traveling

• Wait long for payments

• Apply for additional financing

• Deal with special licenses and regulations

Top Ten Do’s and Don’ts

TOP TEN DO’S

1. We should take international trade classes at the college level.

2. Visit trade shows and trade missions. See http://www.tsnn.com.

3. Join an international trade association specializing in your business.

4. Personally visit our offshore suppliers (or customers).

5. Take advantage of online resources such as http://www.sba.gov/oit.

6. Inspect and approve merchandise before it is shipped.

7. Consider hiring an international trade consultant.

8. Become personally familiar with all monetary transactions.

9. Use a trade lawyer for agent and distributor agreements and licensing requirements.

10. To begin, start on a very small scale.

TOP TEN DON’TS

1. Investigate the potential opportunities and benefits of international trade.

2. Rely on a single source of supply (or customer).

3. Have an understanding of intellectual property rights.

4. Have an understanding of import/export financing.

5. Learn how our best competitors are handling international trade.

6. Provide dispute settlement provisions.

7. Make assumptions as to vendor’s compliance with your specifications.

8. Check out our suppliers/customers before establishing relationship.

9. Rely on handshake agreements.

10. Rely solely on others including employees for importing/exporting expertise.

Perspective management aspect required to be an effective strategic manager would be-

1) Real cool headed, co-operative decision maker. Should be able to make a judgment all the while accepting the teams’ advice. And since a Strategic Manager need to take up decisions during pressurized situation, it is important that he be as cool and calm to make a sound decision.

2) A strategic manager should have the knowledge about his organization. The importance is when he needs to utilize each and every of his Strategic Units together or simultaneously, for achieving the objective.

3) Decision Making should not anticipate options or other expectations. It should rather be pragmatic and result oriented.

4) Skill set is a huge requirement. Ability to size up the situation, quickly and accurately, identifying problem roots, evaluating policies that would be relevant to the prevailing environment.

5) Identifying the company’s SWOT at the prevailant environment and formulating plans and strategies accordingly.

6) Analytical skills are required in functioning areas eg. marketing , financing, etc dealing with the total company activities.

7) Tools i.e. quantitative, qualitative must be understood in proper manner.

8) Written and oral communication skills very important.

Decision making, with a perfect knowledge of the business environment (internal and external) with a winning attitude for the company as a whole is definite requirement of a strategic manager.

By being innovative and with the implementation of additional service products and by it’s readiness to invest in the latest technology to meet customer requirements ITM remains at the leading edge of Industry advances.

“We promise AND deliver” “WE BELIEVE THAT UNDERSTANDING YOUR BUSINESS IS PART OF OUR BUSINESS.”

CUSTOMER COMMUNICATION Using the latest technology, ITM provides a tracking system allowing elimination of enroute delays from source to end user. Customer satisfaction is assured with utilization of our International exposure in Air and Ocean Freight Forwarding and Customs Clearance activities.

Managing international trade policies, restructuring them according to the need of the hour, implementing the various trade polices, abiding by the norms governing international trade, all are taken into account when one speaks of international trade management.

There are many trade promotion organizations, also known as TPOs, who strive hard to manage and improve customer relationship. These trade promotion organizations assist, clients to take their trade to the international market arena. This requires the professionals of the trade promotion organizations to be well versed in their subject, to meet the demands of the changing conditions of the market economy.

Role played by the international trade management bodies:

There are many organizations or international trade promoting bodies, which assist countries in improving trade with other countries. However, most of the International trade management bodies perform the following functions.

• Gathering knowledge about the latest international trade happenings

• Imparting information to the clients in matters related to the betterment of trade with the client’s trading partners.

• Helping the client grow by providing better networking facilities.

• Help building partnership.

Given below is a list of trade promoting bodies.

Marketeers And Associates International:

Operates in:

Lower Connectors, Bangalore and New Delhi.

Services:

• Business development

• Management consultant

• Implementation of marketing strategies

Other establishments assisting in the promotion of international trade are:

• GMS, Inc-International trade consultants

• Heaps Technical Services-International consultants in trade.

International trade management is not only vital for the growth of the individual company but it also plays an important role in the growth of economy of a country.

International trade management can be referred to as the process by, which international trade is handled. Even if the international trade manifests favorable trends, there is competition to handle in the international trade market.

An economy may be very small as compared to other economies of the world, but the success of the economy lies in being able to act faster than other countries, the promptness with which the nation is able to implement trade policies efficiently.

Banking Management

Imagine yourself as the manager of a bank where automation is to be made. Explain the steps you will to do it.

            WEare in the age of the Internet, which is now an integral part of our life, like a cup of coffee every morning. It has thus far broken geographical barriers and is moving us away from the brick-and-mortar world into the wired (or should it be un-wired?) world. In turn, financial services and other support service providers should now strive to stay in touch, re-tune and re-orient service deliveries. This poses major  challenges for institutions such as banks, necessitating fundamental changes in the ways of conducting  business.

Higher levels of automation in banks decrease the load on the back-office in accounting, reconciliation and so on, and thereby set free resources for enhancing business levels.

Gone are the days when one could wait for a process to evolve, and jump in as and when business maturity  was reached. In the Internet world, there is a definite need to be a part of the evolution right from the stage  of conceptualization, and during the development process, on an ongoing basis if the vision is to emerge as a  major player.

A lot has changed in the financial realm over the last 10 years. Once bankers thought they could replace their branches with ATMs or so-called “branches in a box.” Now they realize that the branch plays an integral role in establishing and maintaining a relationship with a consumer.

Today branches are transforming by incorporating more self-service and automation. The ATM and other self-service technology are now being used in branches and financial centers throughout the world. Tellers aren’t replaced — their services are merely complemented with self-service enhancements.

IT is time to review the working of public sector banks (PSBs) as far as bank automation is concerned. Old private banks, which were not nationalised in the mid-seventies, or new private banks set up after liberalisation of the banking sector alongside multinational banks doing business in India are not in the purview of this study as also cooperative banks.

Most PSBs started computerisation of branches based on the Rangarajan Committee report in the eighties, going in for simple, isolated applications at branch level. Most of the applications were based on DOS or UNIX computers and used either COBOL or simple packages such as dBASE, FOXPRO etc. This was the learning phase of bank automation in India.

Today, different types of computer packages offering  “Total Branch Automation (TBA)” are available to automate the various activities of a typical branch. However, there is still a fair degree of confusion about what exactly TBA means, according to a sample survey of CPPD heads of the National Institute of Bank Management, Pune.

Troubled present

Being a Manager of a bank, I can identify some of the problems in bank automation in today’s
scenario thus:

Islands of applications in the branches of a bank, with dissimilar computers, operating systems and application packages. There is no integration of such applications. The interest calculation package may be different from the regular package with SB, CA, FD accounts. Partial manual processing is necessitated if a report is required from more than one isolated application.

Some PSBs have more than one dissimilar TBA package from different vendors. Though the solution looked attractive in the late eighties and early nineties, now it has created serious problems for inter-branch communications within a bank.

Most PSBs have TBA software packages running on outdated technologies, though the packages were the best available when the PSBs selected them.

Already, a large number of branches are using obsolete packages and the question is, how does one get out of this difficult situation? The RBI and the CVC are also responsible, in some measure, as they kept up pressure on banks to boost computer usage. Information technology is ever-evolving and PSBs require an intelligent technology up gradation plan to make sure that their investments will at least break even in three years.

Computerising manual systems is a general trend. Managers, typically, are busy people and a computerisation initiative makes extra demands on a manager’s time. He may simply tell the systems man to go ahead with computerisation without studying the processes involved. A hasty decision on the kind of technology required may result in more expenditure and an inefficient system.

More manpower requirement because some PSBs have parallel manual and computerised systems. This is a `least risk’ strategy for the bankers. The bank may have to double spending on computerisation projects.

The database created by transactions at branch level is backed up periodically and stored in the cupboard to make disc space available for the next period. This is hardly made use of by the bank except to produce some mandatory report (which, perhaps, nobody looks at seriously). It is not used by middle and strategic-level managers, even though such data is a gold mine for effective decision-making. Recent trends in effective information design call for varied, easy approaches to help managers make use of such data.

The top management of PSBs has also created serious problems in computerisation. The decision-makers have relatively short appointments, ranging from one to three years. Why commit to large expenditure on IT now? Why not postpone the automation? — Such a decision is typical of a PSB because of the top management’s limited knowledge of IT and its complexity.

For a smooth transition

The IT applications banks may opt for in the future will become complex for some
of the following reasons :

Bank automation will be networked so that bankers and customers can access the different applications of the bank. Such applications, based on integrating various functionalities, call for complex software development projects.

Besides dial-up leased lines and satellites, the Internet will play an important role and Internet banking will gain in popularity. With advances in communication, such an approach may be cost-effective for developing countries.

Most of the new bank products will be based on networked environments. Hence there will be new products using IT, such as mobile computing.

Investment in IT should boost a bank’s profitability. Most banks have a list of available technologies. Their relevance depends on the bank’s business strategy. Otherwise, a large sum is spent on implementing a specific IT project without much addition to the profitability of operations and customer satisfaction.

Data created by the various transactions of a bank should be available to middle and top-level managers and executives for effective decision-making using the popular concepts of Decision Support Systems (DSS), Executive Information System (EIS), Expert Systems (ES), Data Warehouse (D/W), Data Mining (D/M) etc.
Future perfect

Banks need to draw up a well-defined business plan looking 3-5 years ahead. It must be updated at least semi-annually. There are a number of techniques to help the top management evolve a suitable business plan for the bank, including SWOT, Porter’s Five Force Model, Value Chain, Strategic Grid, Balanced Score Card, Core Competence and Critical Success Factors.

The next step is to identify important IT applications based on the business plan. It is then relatively easy to identify gaps in the present IT applications, which are running, and applications that might be required in the future. They can be formulated as well-defined projects and prioritized, leading to an IT-plan for at least the next 2-3 years.

Such a plan requires periodic updation, preferably at the same time that the business plan is updated. Such a plan also gives a budget profile for future IT-applications which are in conformity with the business plan.

Such a budget proposal is also acceptable to the top management because it is based on a business plan in which they were involved during formulation.

            Banks and financial organizations often find regression test efforts too repetitive and too long to be accommodated in short test windows while upgrading software and implementing changes in an application across branches. These challenges can be addressed by deploying well-designed automated regression test suites that use the right set of automation tools.

Test automation provides us with the following benefits :

• Significant reduction in time taken per testing iteration for future application releases
• Savings in manpower & associated costs, owing to reduced manual testing efforts (potentially up to 80%).
• Improved regression test coverage within short time frames
• Flexibility, as individual modules can be tested independently
• Radical improvement in consistency and uniformity of the testing process
• Easy modification of reusable components; once created and benchmarked, the automation suite is flexible, repeatable, and stable.

We should build (and optionally, automate) Regression Test suites for testing enhancements. Our testing suites ensure that any change in code does not change the existing functionality of the software. Our Regression Test suites help us to reduce overall maintenance testing costs and timelines.

Some of them have successfully implemented test automation projects for many Global 500 Banks and clients in the financial services and insurance domains. These include automated regression testing, regression testing and performance testing for core banking implementations and enhancements.

We should provide test automation services using a wide variety of tool sets from reputed vendors like Mercury Interactive, IBM Rational and QES as well as customer proprietary tools.

Listed below are various tools one can use in the projects:

• Test Project Management – MS Project and Test Director
• Defect Management – Test Director, PVCS Defect Tracker, Bugzilla, and Rational Clear Quest
• Regression Test Automation – Win Runner, Rational Robot, Quick TestPro and QES Architect
• Coverage Management – Rational Requisite Pro and Mercury Test Director
• Performance Testing – Mercury Load Runner, Rational Performance Studio and Compuware QA
• Configuration Management – Visual Source Safe and PVCS
• Test Data – Thinksoft Test Data Manager
• Dynamic Code Coverage – Rational pure coverage

Banks and financial institutions who are enablers of commerce now need to enhance the delivery systems to support Electronic Data Interchange (EDI)and e-commerce. New channels are being defined, which require re-dimensioning of the well- accepted and practiced traditional banking principles.

For a moment, let us go into the origin of these transactions that involve businesses and consumers who are either initiators or recipients in all cases. B2B transactions are large-value, and recurring transactions, while B2C are low value, large-volume transactions. C2C transactions are low-value and low-volume. Worldwide, B2C transactions have come to the forefront due to high awareness levels and, as in any other new development, prudence has prevailed to test the waters with low-value transactions. However, the big one is B2B, which is waiting to explode.

Banks have to capture all three streams. Going by the experience at HDFC Bank so far, we have tried to create the field to achieve this, and achieved some first-level requirements such as:

• High levels of automation
• Centralized database management and processing
• Online connectivity across delivery channels
• Front-office and back-office integration
• Surveillance and security systems
• Back-up systems

Automation

Choosing a technology partner is very critical. We chose to go with CITIL (now I-Flex Solutions) to achieve the efficiencies derived out of automation such as low-processing costs, better turnaround times, ability to handle excessive volumes, zero-error rates and better customer deliveries and so on. Any bank embarking on such automation projects should ask the following questions and try to get answers for better clarity:

Is automation for –

• Reducing back-office load?
• Improving staff working conditions?
• Improving customer service?
• Enhancing business levels?

Higher levels of automation decrease the load on the back-office in accounting, reconciliation and so on and thereby set free resources for enhancing business levels. While the evaluation has to be clearly all of the above, each bank will need to look inward at its priorities and accordingly select the right system – being open-ended, Web-enabled and scalable with the right functionality is crucial.

Centralized database management and processing

The Internet clearly throws historical debates on centralization vs de-centralization out of the window. We are now talking of the flow of information and transactions through the clouds where a de-centralized environment is not conducive and hence there is a basic need to take the centralized route. This requires business process re-engineering (BPR) and creation of centralized back-offices with re-defined process flows to/from branches. The basic organizational structure needs to undergo radical changes with more emphasis on empowerment at branches with centralized control.

HDFC Bank,  had set up centralized processing, through a hub-and spoke concept, with regional processing centers at the main metros, and a national processing centre in the suburbs of Mumbai.

Online connectivity

There is a need to connect customers, front-offices, back-offices and other external agencies and determine access levels on a need-based system (real-time, batch, dial-up and so on). This requires a huge infrastructure to run alongside, and hence has to be carefully thought through. With an increasing number of delivery channels such as branches, ATMs, phones, the Internet and so on, the estimations on volumes transacted through each of these channels play a vital part in the determination of bandwidth to ensure acceptable response times.

Through a combination of terrestrial lines, VSAT and ISDN, HDFC bank have achieved total online connectivity, where all branches and other channels we use access the centralized database.

Front- and back-office integration

Workflow requires to be defined clearly with the over-riding objective of customer service, which should remain at the forefront. Processes have to be transparent, and one has to set up customer service standards, and service level agreements (SLAs) between various internal groups with strong audit systems for service quality.

Surveillance and security

All of the above will fall flat without online surveillance and security. Access control, authentication and encryption mechanisms have to be built around each of the systems. Technology, including firewalls, private and public key certifications and data encryption are available, and a judiciously blended selection is to be put in place, up-front. It is not just enough to have the security set-up. Monitoring mechanisms to tackle the hacker menace and on-going surveillance is a must.

Back-up systems

At this stage, when all of the above are running, the bank has effectively become a prisoner of technology.  What this means is that it cannot do away with these systems and it requires a near-100 per cent up-time for staying in business. Hence, the need to have adequate backup systems and telecommunications, contingency procedures during times of system un-availability, disaster recovery sites and so on.

The road ahead

The above enables banks to occupy the space where recognition comes its way as a superior deliverer of products. Is that all? Not really, as banks have to now turn their eyes to aggressive marketing. There is a need to treat ourselves as a marketing organization rather than just a bank. Once the capacity building exercise is over, it is the turn of the field staff to make it happen. To enable this, banks need to have a focussed direction in product identification, business-lines, revenue-streams, pricing strategies and cost- control. Enhancing processing capacity and endurance building has to run parallel, as and when volumes build. Efforts to prepare the bank’s customers for ‘dot coming’ their businesses and integration with their  back-end Electronic Data Interchange (ERP) systems, trading and other accounting systems will then  assume top priority.

When businesses focus on integrating their suppliers and clients, and automate their ‘buy’ and ‘sell’ sides over the Internet, banks should counter this challenge and build matching systems for the flow of funds alongside the flow of information.

Integration with EDI and e-commerce

India, unlike other countries, is undergoing a unique phenomenon. It has never seen the EDI phase in its real sense and it is seeing it happen concurrently with e-commerce. Predictions for the near-future include:

1. enabling authenticated e-commerce
2. Portal integration
3. Evolution of integrated payment systems (gateways) across banks
4. Evolution of funds settlement systems (RTGS and similar ones)
5. Evolution of EDI standards related to trade such as sales tax/excise/customs and so on.
6. Cross-border transactions

Banks play a major role in the economy, and must pioneer change in each new development. It is a matter of perception whether a new development is considered a kit for survival or an opportunity for growth.

Banks have to turn their eyes to aggressive marketing, treating themselves as marketing organizations rather than just banks.

Managerial Economics

Suppose you are the marketing manager of Bayer and company Ahmadabad which are the techniques you will apply in forecasting demand of a product yet to be manufactured?

Forecasting is the process of making projections of demand for products by examining past and present performance levels, combined with an assessment of available products and markets. This may be carried out within the government service or by individual companies in a purely commercial context. The following approaches can be used:

· Target setting;

· Growth trends;

· Growth rates adjusted for new technology adoption;

· Sampling.

Target setting this method is commonly used in developing countries where government is directly involved in planning and seed supply. In a centrally managed economy, targets are likely to be set at a national level and production plans fixed for each region.

India is an example of a more open economy where both the public and private sectors coexist in a well-developed seed industry, but where the government retains a coordinating function and has the ultimate responsibility for the security of seed supply. The Ministry of Agriculture sets the targets and organizes meetings to establish the supply situation and production plans of the various organizations involved.

Companies may opt to set a target for an ideal sales level while, at the same time, recognizing that this is unlikely to be achieved and budgeting for a more achievable situation.

Growth trends. This approach is based on the assumption that the rate of growth of seed demand as seen in past years will continue. This may give unrealistically high forecasts and will depend on the stage of market development for improved seeds. Small increases in volume in the early stages of improved seed use will represent a large increase in percentage terms, which may not be possible to sustain.

Growth rates adjusted for new technology adoption. Using this approach a given region is considered on the basis of degrees of new technology uptake and the likely speed of change. Each part of the region can then be categorized as ‘low’ to ‘medium’ or ‘high’ growth, better reflecting the overall situation.

Sampling. The accuracy of the above approaches can be improved if sample groups of farmers are questioned to gauge their anticipated demand for seed. This exercise is more reliable where there is a reasonable awareness of the benefits of using improved seeds.

Definition of Demand: The amount of a particular economic good or service that a consumer or group of consumers will want to purchase at a given price. The demand curve is usually downward sloping, since consumers will want to buy more as price decreases. Demand for a good or service is determined by many different factors other than price, such as the price of substitute goods and complementary goods. In extreme cases, demand may be completely unrelated to price, or nearly infinite at a given price. Along with supply, demand is one of the two key determinants of the market price.

Forecasting product demand has always been a crucial challenge for managers as they play an important role in making many business critical decisions such as production and inventory planning. These decisions are instrumental in meeting customer demand and ensuring the survival of the organization. This paper introduces a novel Fuzzy Cerebella-Model-Articulation-Controller (FCMAC) with a Truth Value Restriction (TVR) inference scheme for time-series forecasting and investigates its performance in comparison to established techniques such as the Single Exponential Smoothing, Holt’s Linear Trend, Holt-Winter’s Additive methods, the Box-Jenkin’s ARIMA model, radial basis function networks, and multi-layer perceptions. Our experiments are conducted on the product demand data from the M3 Competition and the US Census Bureau. The results reveal that the FCMAC model yields lower errors for these data sets. The conditions under which the FCMAC model emerged significantly superior are discussed.

If I were a Marketing Manager of Bayer & Company, Ahmadabad. I would use the following Demand forecasting method for a product yet to be manufactured.

· Growth trends. This approach is based on the assumption that the rate of growth of seed demand as seen in past years will continue. This may give unrealistically high forecasts and will depend on the stage of market development for improved seeds. Small increases in volume in the early stages of improved seed use will represent a large increase in percentage terms, which may not be possible to sustain.

1. A method for forecasting demand for a product based on sales results of the product, comprising:

Setting plural models as a neural network;

Identifying sales results of a first period;

inputting the identified sales results of the first period to each of the models to make the neural network of each model learn from inputs and produce data as close as possible to sales results of a second period following the first period:

Storing a forecast demand value of a predetermined time outputted by each of the neural networks;

selecting a model from the learned neural networks which has a forecast demand value closest to the sales results of the predetermined time; and

Inputting latest sales results identified by the learned neural network corresponding to the selected model to forecast demand.

2. A demand forecasting method of claim 1, further comprising an outputting device outputting a calculated error between the sales results and demand forecasting result.

3. A method of claim 1, wherein said model is a model incorporating position data indicating period position on a calendar as a processing element, and the position data is fed in the neural network together with the sales results.

4. A method of claim 1, wherein said model is a model incorporating the position data indicating the position of a calendar period as a processing element, and the position data is fed in the neural network together with the sales results.

5. A demand forecasting system using the method of claim 4.

6. A demand forecasting system of claim 5, further comprising an output device outputting a calculated error between the sales results and demand forecasting result.

7. A method of claim 1, wherein the sales results used in learning of the neural network of 13 months dating back from a learning point is acquired.

8. A demand forecasting system using the method of claim 7.

9. A demand forecasting system of claim 8, further comprising an output device outputting the error between the sales results and demand forecasting result.

10. A method of claim 1, wherein demand forecasting in a first period unit forecast by the neural network is reflected in the demand forecasting in a second period unit composed of a set of first period units.

11. A demand forecasting system using the method of claim 10.

12. A demand forecasting system of claim 11, further comprising an output device for outputting the error between the sales results and demand forecasting result.

13. A computer readable storage media storing a process of forecasting the demand for a product on the basis of the sales results of the product comprising:

Setting plural models as a neural network;

Identifying sales results of a first period;

inputting the identified sales results of the first period to each of the models to make the neural network of each model learn from inputs and produce data as close as possible to the sales results of a second period following the first period;

Storing a forecast demand value of a predetermined time outputted by each of the neural networks;

Selecting a model from the learned neural networks which has a demand value closest to the sales results of the predetermined time; and

Inputting a latest sales results identified by the learned neural network corresponding to the selected model to forecast a demand.

14. A recording medium of claim 13, wherein said model is a model incorporating a position data indicating position of a calendar period as a processing element, and further including program code means for causing said computer to feed the position data in the neural network together with the sales results.

15. A recording medium of claim 13, wherein the identifying sales results includes acquiring results of 13 months dating back from the learning point.

16. A recording medium of claim 13, further including causing said computer to reflect the demand forecasting in a first period unit forecast by the neural network in the demand forecasting in a second period unit composed of a set of the first period units.

17. A recording medium of claim 14, wherein identifying sales results includes acquiring results of 13 months dating back from the learning point.

18. A recording medium of claim 14, further comprising reflecting the demand forecasting in a first period unit forecast by the neural network in the demand forecasting in a second period unit composed of a set of the first period units.

19. A recording medium of claim 5, further comprising reflecting the demand forecasting in a first period unit forecast by the neural network in the demand forecasting in a second period unit composed of a set of the first period units.

20. A demand forecasting method comprising:

Creating a plurality of neural network models to forecast demand based on different time periods;

Identifying sales results of a first period and entering the results into each of the models to allow each model to learn and forecast demand for a second period;

Comparing the forecast demand from each of the models for the second period with actual sales results to compute an error of each model; and

Selecting the model with the smallest error.

21. A computer readable storage medium storing software to implement a demand forecasting method performing;

Creating a plurality of neural network models to forecast demand based on different time periods;

Identifying sales results of a first period and entering the results into each of the models to allow each Model to learn and forecast demand for a second period;

Comparing the forecast demand from each of the models for the second period with actual sales results to compute an error of each model; and

Selecting the model with the smallest error.

22. A demand forecasting system comprising:

Neural network models forecasting demand based on different time periods;

An inputting device inputting sales results of a first period into each of the models;

a comparing device comparing a forecast demand from each of the models for a second period with actual sales results to compute an error of each model; and

a selecting device selecting the model with the smallest error.

Qualitative techniques for Business Analysis

Suppose you are heading a business unit in India which are the points about statistics you will keep in mind for doing business profitably in other words what is the relevance of business statistics in you venture?

The basic objective with which Business Statistics is used for making inferences that is reaching a decision or conclusion and predictions and assumptions. In business, decision making is a very critical phase and is used in all the fields of business. The use of statistics makes comparisons and analysis easier which relatively quickens the decision-making process and also makes it a little easier. But using statistics the relationships of different variables can be studied. Statistics makes it possible to do what-if analysis. Regression analysis is used for studying the relationship between variables and the dependency of one upon the other. Research shows that the use of statistical models improves the decision making process. By using probabilities, different predictions can also be made in business

· Statistical skills enable to intelligently collect, analyze and interpret data relevant to their decision-making. Statistical concepts and statistical thinking enable them to:

-solve problems in a diversity of contexts.

-add substance to decisions.

-reduce guesswork.

It is always better to use the concepts which are already used so that it is very easy to to the head making the business profitable and a slight innovation or advancement is needed in order to prevent the idea from carbon copy.

The use of statistics is a comparison and hence comparison plays a vital role.

When a business is statistically implemented the flaws are reduced because it solves the problem very easily it helps making proper decision and reduces redundancy.

The bottom line. That’s what many business people look at to gauge the profitability of a company. While important, the bottom line doesn’t always provide the entire picture, and using it as the sole barometer of company performance could have serious fiscal repercussions.

Ratios:

Gross Profit on Net Sales

Net Profit on Net Sales

Management Rate of Return

Net Profit to Tangible Net Worth

Rate of Return on Common Stock Equity

Analytical Procedures:

Comparative Statements

Index-Number Trend Series

Common-Size Statements

Analysis of Financial Statement Components

Purpose of Profitability Analysis

A properly conducted profitability analysis provides invaluable evidence concerning the earnings potential of a company and the effectiveness of management.

II. Profitability Ratios

Profitability ratios are the most significant – and telling – of financial ratios. Similar to income ratios, profitability ratios provide a definitive evaluation of the overall effectiveness of management based on the returns generated on sales and investment.

The adequacy of your company’s earnings can be measured in terms of (1) the rate earned on sales; (2) the rate earned on average total assets; (3) the rate earned on average common stockholders’ equity; and (4) the availability of earnings to common stockholders. The most widely used profitability measurements are profit margin on sales, return-on-investment ratios, and earnings per share.

 

Gross Profit on Net Sales

You can use the following ratio to determine the percentage of gross profit on net sales:

Net Sales – Cost of Goods Sold

= Gross Profit Rate

Net Sales

Your gross profit rate helps you determine whether your average markup on goods will consistently cover your expenses, therefore resulting in the desired profit. If your gross profit rate is continually lower than your average margin, something is wrong! Be on the lookout for downward trends in your gross profit rate. This is a sign of future problems for your bottom line.

Note: This percentage rate can – and will – vary greatly from business to business, even those within the same industry. Sales, location, size of operations, and intensity of competition are all factors that can affect the gross profit rate.

Net Profit on Net Sales

Earnings after Taxes

= Net Profit Rate

Net Sales

This ratio provides a primary appraisal of net profits related to investment. Once your basic expenses are covered, profits will rise disproportionately greater than sales above the break-even point of operations.

Note: Sales expenses may be substituted out of profits for other costs to generate even more sales and profits.

Management Rate of Return

This profitability ratio compares operating income to operating assets, which are defined as the sum of tangible fixed assets and net working capital.

Operating Income

= Rate of Return

Fixed Assets + Net Working Capital

This rate determines whether you have made efficient use of your assets. You can calculate for your entire company or for each of its divisions or operations, determines whether you have made efficient use of your assets. The percentage should be compared with a target rate of return that you have set for the business.

Net Sales to Tangible Net Worth

Net Sales

= Net Sales to Tangible Net Worth Ratio

Tangible Net Worth*

This ratio indicates whether your investment in the business is adequately proportionate to your sales volume. It may also uncover potential credit or management problems, usually called overtrading and under trading.

Overtrading, or excessive sales volume transacted on a thin margin of investment, presents a potential problem with creditors. Overtrading can come from considerable management skill, but outside creditors must furnish more funds to carry on daily operations.

Under trading is usually caused by management’s poor use of investment money and their general lack of ingenuity, skill or aggressiveness.

*Tangible Net Worth = owners’ equity – intangible assets

Rate of Return on Common Stock Equity

Instead of focusing on total assets, this ratio takes a reading on the rate of return on stockholders’ equity.

Earnings after Taxes

= Rate of Return

Tangible Net Worth

III. Analytical Procedures

Procedures you can use to analyze your business’s profitability are generally broken up into two categories: (1) those based upon financial data from two or more fiscal periods, or (2) financial data from only the current fiscal period. To complete a thorough review of your company’s financial standing, we recommend you utilize both types of analytical procedures.

IV. Commonly Used Analytical Procedures

The most common types of analytical procedures are: (1) comparative statements; (2) index-number trend series; (3) common-size statements; (4) analysis of financial statement components; and (5) vertical analysis.

V. Comparative Statements

A first look at your business’s current financial figures can be quite overwhelming and, more often than not, a little confusing. But, if you were to compare that data to your business’s historical performance, it becomes significantly more meaningful. Compare your company’s current financial numbers with monthly, quarterly, or annual data from previous fiscal years. You should notice some trends that will help you map out the future of your business.

VI. Index-Number Trend Series

If you are trying to analyze financial data that span a long period of time, simply trying to compare financial statements can turn into quite a cumbersome task. If you find yourself in this boat, try to create an index-number trend series to alleviate some of your confusion.

First, choose a base year to which all other financial data will be compared. Usually, the base year is the earliest year in the group being analyzed, or it can be another year you consider particularly appropriate.

Next, express all base year amounts as 100 percent. Then state corresponding figures from following years as a percentage of the base year amounts. Keep in mind that index-numbers can be computed only when amounts are positive.

 

Example

1998

1999

2000

Sales

100,000

150,000

175,000

Index-Number Trend

100%

150%

175%

The index-number trend series technique is a type of horizontal analysis that can provide you with a long range view of your firm’s financial position, earnings, and cash flow. It is important to remember, however, that long-range trend series are particularly sensitive to changing price levels. For instance, between 1975 and 1985 the price level in the United States doubled. A horizontal analysis that ignored such a significant change might suggest that your sales or net income increased dramatically during the period when, in fact, little or no real growth occurred.

Data expressed in terms of a base year can be very useful when comparing your company’s figures to those from government agencies and sources within your industry or the business world in general, because they will often use an index-number trend series as well. When making comparisons, be sure the samples you use are in the same base period. If they aren’t, simply change one so they match.

VII. Common-Size Statements

When performing a ratio analysis of financial statements, it is often helpful to adjust the figures to common-size numbers. To do this, change each line item on a statement to a percentage of the total. For example, on a balance sheet, each figure is shown as a percentage of total assets, and on an income statement, each item is expressed as a percentage of sales.

This technique is quite useful when you are comparing your business to other businesses or to averages from an entire industry, because differences in size are neutralized by reducing all figures to common-size ratios. Industry statistics are frequently published in common-size form.

When comparing your company with industry figures, make sure that the financial data for each company reflect comparable price levels, and that it was developed using comparable accounting methods, classification procedures, and valuation bases.

Such comparisons should be limited to companies engaged in similar business activities. When the financial policies of two companies differ, these differences should be recognized in the evaluation of comparative reports. For example, one company leases its properties while the other purchases such items; one company finances its operations using long-term borrowing while the other relies primarily on funds supplied by stockholders and by earnings. Financial statements for two companies under these circumstances are not wholly comparable.

Example Common-Size Income Statement

2000

1999

1998

Sales

100%

100%

100%

Cost of Sales

65%

68%

70%

Gross Profit

35%

32%

30%

Expenses

27%

27%

26%

Taxes

2%

1%

1%

Profit

6%

4%

3%

Business Environment

Imagine yourself as a new businessman what are the objectives of business that you will keep in mind if you have to launch a new business?

Business Objectives

Objectives give the business a clearly defined target. Plans can then be made to achieve these targets. This can motivate the employees. It also enables the business to measure the progress towards to its stated aims.

The most effective business objectives meet the following criteria:

S – Specific – objectives are aimed at what the business does, e.g. a hotel might have an objective of filling 60% of its beds a night during October, an objective specific to that business.

M – Measurable – the business can put a value to the objective, e.g. €10,000 in sales in the next half year of trading.

A – Agreed by all those concerned in trying to achieve the objective.

R – Realistic – the objective should be challenging, but it should also be able to be achieved by the resources available.

T- Time specific – they have a time limit of when the objective should be achieved, e.g. by the end of the year.

The main objectives that a business might have are:

Survival – a short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis.

Profit maximization – try to make the most profit possible – most like to be the aim of the owners and shareholders.

Profit satisfying – try to make enough profit to keep the owners comfortable – probably the aim of smaller businesses whose owners do not want to work longer hours.

Sales growth – where the business tries to make as many sales as possible. This may be because the managers believe that the survival of the business depends on being large. Large businesses can also benefit from economies of scale.

A business may find that some of their objectives conflict with one and other:

Growth versus profit: for example, achieving higher sales in the short term (e.g. by cutting prices) will reduce short-term profit.

Short-term versus long-term: for example, a business may decide to accept lower cash flows in the short-term whilst it invests heavily in new products or plant and equipment.

Large investors in the Stock Exchange are often accused of looking too much at short-term objectives and company performance rather than investing in a business for the long-term.

Alternative Aims and Objectives

Not all businesses seek profit or growth. Some organizations have alternative objectives.

Examples of other objectives:

Ethical and socially responsible objectives – organizations like the Co-op or the Body Shop have objectives which are based on their beliefs on how one should treat the environment and people who are less fortunate.

Public sector corporations are run to not only generate a profit but provide a service to the public. This service will need to meet the needs of the less well off in society or help improve the ability of the economy to function: e.g. cheap and accessible transport service.

Public sector organizations that monitor or control private sector activities have objectives that are to ensure that the business they are monitoring comply with the laws laid down.

Health care and education establishments – their objectives are to provide a service – most private schools for instance have charitable status. Their aim is the enhancement of their pupils through education.

Charities and voluntary organizations – their aims and objectives are led by the beliefs they stand for.

Changing Objectives

A business may change its objectives over time due to the following reasons:

A business may achieve an objective and will need to move onto another one (e.g. survival in the first year may lead to an objective of increasing profit in the second year).

The competitive environment might change, with the launch of new products from competitors.

Technology might change product designs, so sales and production targets might need to change.

My personal objectives are:-

1. Provide a benefit. A new business stands a greater chance at success if it is responding to a need of a consumer. Your potential customers will buy your products or service if they see that it provides some benefits to them. You must be able to respond to their “what is it for me” question.

As a new business owner, your main task is to understand the difference between the features of your business and the benefits it provides. For example, if you are in the business of selling baby gift boxes, the feature and benefits are:

Feature: Baby toys, books, CDs and videos not found in department stores Benefit: The customer will be able to conveniently find in one location the baby gift items she or he wants.

Remember, customers buy on the basis of the benefits, and not the features of your products. This is what you are going to use as your main selling proposition, or what you will highlight to convince people to buy your products and services. By understanding the business and its benefit to consumers, entrepreneurs can differentiate their business and create niches in the market where they can enter and survive long enough to build

2. Determine the fit with your market. Before you can start marketing your new business, you first need to determine your target market. That’s right: not everyone is your customer. Some people erroneously think that they should sell to everybody, and that targeting will limit the scope of their pool of potential customers. Wrong! The purpose of defining your market is to make your life easier and increase the effectiveness of your promotional activities. You can’t strike anywhere: you need to focus your energy and money.

To identify your market, you need to look at your market data and personality attributes of those whom you think would most likely buy your products. Aside from the demographics of your potential customers (age, gender, income level, geographic location, etc.), you also need to determine lifestyle factors. Are there any special interest activities that they belong to? Are there any social factors and cultural involvement that govern your customers? How do you think your market will use your products or services?

3. Right timing is everything. Some new businesses are way ahead of their times. You may have a brilliant idea, but if the market is not ready for your products, the venture will fall by the wayside.

If you have a product that is so new in the market, be prepared to take on the cost of informing the buyers. Since they are not familiar with your products, show them how it will benefit their lives and demonstrate how they can use it. Infomercials, while costly, are very good vehicles for very new products.

4. Be ready to support your business. One business reality is that you need money to earn more money. You need resources to allow you to buy equipment, supplies, procure or manufacture products, package your products well and market it. Will your existing capital allow you to buy all the assets that you need in your business? How are you going to finance your inventory? If you are starting an online business, do you have the resources to create your site and pay for its upkeep? If your business does not show a profit within the year, do you have the money to support yourself?

When starting a new business, you need to consider three major expenses and plan for them accordingly: your living expenses, direct costs and overhead. Living expenses is the “salary” you must produce to support yourself and your family. Direct costs include supplies, materials, and others that you need to produce your product or deliver your service. Overhead is the cost of running a business, and it covers marketing, utilities, office furniture and equipment.

Sure, you can start a business even with little cash, but you need to be extremely creative in stretching your money and be prepared to compromise the growth of your business. You will have no choice except to build your business gradually.

However, having money is not enough to assure success. The dot-com woes, especially, showed that you can burn millions and millions of dollars only to end up a failure. Digital Convergence, for example, got $250 million of funding for investors to distribute Cue Cats barcode readers for free yet laid-off most of their staffs after their business model showed to be unsustainable. The key is to use whatever money you have– smartly.

5. Develop a blueprint for success. You cannot go into a business unprepared. It is important to have a plan. Think of going to business like going to war: you need to develop strategies to help you overcome your enemies. Without thinking through what you want to achieve and how to get there, you are a sitting duck waiting to be clobbered.

Starting a new business entails a thorough and objective analysis of both your personal abilities and the business requirements. You need to have a clear strategy for marketing and the production aspects of your business. If you are a retail store, you need to have a plan in terms of procurement and sourcing. For all the excitement of a new business, you need to know where and how you will get the funds to finance your business. Do you have the available resources to make this business a success? And a million other details.

A business plan is essential. Even if you do not want to write it all down (especially if you do not have investors), the process of preparing a business plan allows you to think through of every aspect of your business. It makes you think about the viability of your business and helps you avoid costly mistakes. When starting a business, you base your projected performance on a set of assumptions. If you have a plan, you will be able to test your planning assumptions and create fall-back measures in the event that real life proves to be vastly different from your initial visions.

If you think through your business well, you can discover problem areas early on and initiate efforts to correct the problem. Remember, the business owner with a realistic plan has the best chances for success.

6. Market, market, market. In this world dominated by hype, you must be prepared to publicize the business or its chance for success will be slim. Unless you are a nationally known name with built-in clientele or your business is located in a prime location, you need to promote customer awareness for your business. If you’re on the Web, you cannot expect to just sit in a corner and expect people to stumble on your site.

Your marketing plan should revolve around three goals. The first is to inform customers what you have. You can do this by letting customers know what you have for sale, either through press releases for possible publication in print and TV media, brochures for your customers and leaflets distributed in your neighborhood.

The second goal is to persuade potential customers to do what you want them to do – buy from you. If you’re in e-business, you do this by writing a very good sales copy on your site including testimonials from satisfied clients. If you have sales representatives, they could do the persuading in your behalf. The third function of marketing your business is to remind existing customers to come and buy again. If you are a Web marketer, you do this by sending a regular product updates, special offers and promos to customers’ emails. As a smart marketer, you know that you need to hold on to your existing customer base as it is much harder (and more expensive) to get a new customer than to sell to someone who already knows your product and the quality of your customer service.

Quality Systems Management

What are the points you will keep in mind about the concept of quality control and inspection if you are the quality systems manager of a rubber products manufacturing unit?

Quality control (QC) is a procedure or set of procedures intended to ensure that a manufactured product or performed service adheres to a defined set of quality criteria or meets the requirements of the client or customer. QC is similar to, but not identical with, quality assurance (QA). QA is defined as a procedure or set of procedures intended to ensure that a product or service under development (before work is complete, as opposed to afterwards) meets specified requirements. QA is sometimes expressed together with QC as a single expression, quality assurance and control (QA/QC).

In order to implement an effective QC program, an enterprise must first decide which specific standards the product or service must meet. Then the extent of QC actions must be determined (for example, the percentage of units to be tested from each lot). Next, real-world data must be collected (for example, the percentage of units that fail) and the results reported to management personnel. After this, corrective action must be decided upon and taken (for example, defective units must be repaired or rejected and poor service repeated at no charge until the customer is satisfied). If too many unit failures or instances of poor service occur, a plan must be devised to improve the production or service process and then that plan must be put into action. Finally, the QC process must be ongoing to ensure that remedial efforts, if required, have produced satisfactory results and to immediately detect recurrences or new instances of trouble.

In general, the application of the concept of Quality Control and Inspection for a rubber products manufacturing unit would consist of:

1. Receiving Inspection – to assure the product/material received meets the required specifications before it is manufactured.

2. In-process Inspection (On-going basis)- to assure the parts

3. Finished Goods Inspection (to ensure any secondary operations are performed to specifications and that product meets all requirements)

This is the inspection side. Keeping all of this in mind, the concept of quality is to ensure the product is manufactured correct the first time.

a. Receiving Inspection: It means as a Quality systems manager the product or the material received from various sources should be tested or evaluated to know whether it meets the specifications. If not the Raw-material should be dismissed and not to be used.

b. In process Inspection: This means the products have to be tested while on the production or while they are In-process. This will give the fair idea to the QA manager whether the products are generating the expecting outcome. If he thinks the rubber material doesn’t producing the expected outcome it should be terminated immediately.

c. Finished goods Inspection: This means the products have to be tested to assure 100% quality. The QC manager has to take the full in charge and pass the “QC test”

The above said methods are critical and it should be followed strictly without which the product may not meet the specifications of Quality control and inspection. Zero-level defect must be assured to get 100% quality of rubber goods.