The 3 Elements of Project Management

7/31/2019 The 3 Elements of Project Management

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The 3 Elements of Project Management

There are three core components of Project Management. Well at least there are three "simple"components:

1. People2. Processes3. Technology

This is a naive view, but useful one for the purposes of this post.There are many voices in the project management community. I'll take a risk and put these

voices into the three categories above, for the current discussion.

1. People skills are basically the soft skills of managing projects. All those soft skillssession at PMI meetings, books on managing the people. Getting humans to engage witheach other in a cooperative process of managing the project, developing the products or

services of the project and generally moving the project toward it's end state.2. The processes are methods for managing a project. Ranging from formal to informal.

Along with these processes are other processes of assessing the people who areperforming the processes. PMBOK, Prince2, and the like.

3. Technology is the tools of project management.Scheduling, cost, risk, reporting, graphics.generally any software gadget used while managing the project.

Each of these three points of view of project are vigorously discussed (debated).But most of these voices start and end their discussion with their pet approach in the absence

of a critical set of concepts. Can these or any people, process, or technology approach answer thefollowing?

1. Can we state clearly and concisely what "done" looks like? Can we state the intermediateversions of "done?" Can we state this in some units of measure meaningful to all thestakeholders?

2. Do we know what it will cost to get to "done" or any smaller version of "done" along theway? This cost is usually measured in money. But people and other resources are part ofthe answer as well.

3. Do we know the date of when we'll see "done" or any part of "done?" What the varianceon this date? If we don't know the date of the final "done," how about a "date for thedate?"

4. Do we know we will measure progress along the way? How will we have confidence thatprogress is actually being made? What are the unit of measure for this progress?5. Can we see what is going to impede our progress toward "done?" Do we have any way toremove these impediments so we can get to "done?"

No matter what approach is being "pitched," if these questions cannot be answered in somecredible way, then the message is not about project management, it's probably about trying to sellyou something you may or may not want.


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Training Tools Certifications Books A philosophy, an idea, or some other point of view

A membership in some organization A conference

Levels of Management

he term Levels of Management refers to a line of demarcation between various managerialpositions in an organization. The number of levels in management increases when the size of thebusiness and work force increases and vice versa. The level of management determines a chainof command, the amount of authority & status enjoyed by any managerial position. The levels ofmanagement can be classified in three broad categories: -

1. Top level / Administrative level2. Middle level / Executory3. Low level / Supervisory / Operative / First-line managers

Managers at all these levels perform different functions. The role of managers at all the threelevels is discussed below:

LEVELS OF MANAGEMENT

1. Top Level of ManagementIt consists of board of directors, chief executive or managing director. The topmanagement is the ultimate source of authority and it manages goals and policies for anenterprise. It devotes more time on planning and coordinating functions.

The role of the top management can be summarized as follows -


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a. Top management lays down the objectives and broad policies of the enterprise.b. It issues necessary instructions for preparation of department budgets, procedures,

schedules etc.

c. It prepares strategic plans & policies for the enterprise.d. It appoints the executive for middle level i.e. departmental managers.e. It controls & coordinates the activities of all the departments.f. It is also responsible for maintaining a contact with the outside world.g. It provides guidance and direction.h. The top management is also responsible towards the shareholders for the performance

of the enterprise.

2. Middle Level of ManagementThe branch managers and departmental managers constitute middle level. They areresponsible to the top management for the functioning of their department. They devotemore time to organizational and directional functions. In small organization, there is onlyone layer of middle level of management but in big enterprises, there may be senior andjunior middle level management. Their role can be emphasized as -

a. They execute the plans of the organization in accordance with the policies and directivesof the top management.

b. They make plans for the sub-units of the organization.c. They participate in employment & training of lower level management.d. They interpret and explain policies from top level management to lower level.e. They are responsible for coordinating the activities within the division or department.f. It also sends important reports and other important data to top level management.g. They evaluate performance of junior managers.h. They are also responsible for inspiring lower level managers towards better

performance.

3. Lower Level of ManagementLower level is also known as supervisory / operative level of management. It consists ofsupervisors, foreman, section officers, superintendent etc. According toR.C. Davis,Supervisory management refers to those executives whose work has to be largely withpersonal oversight and direction of operative employees. In other words, they are

concerned with direction and controlling function of management. Their activitiesinclude -

a. Assigning of jobs and tasks to various workers.b. They guide and instruct workers for day to day activities.c. They are responsible for the quality as well as quantity of production.d. They are also entrusted with the responsibility of maintaining good relation in the

organization.

e. They communicate workers problems, suggestions, and recommendatory appeals etc tothe higher level and higher level goals and objectives to the workers.

f. They help to solve the grievances of the workers.g. They supervise & guide the sub-ordinates.h. They are responsible for providing training to the workers.


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i. They arrange necessary materials, machines, tools etc for getting the things done.j. They prepare periodical reports about the performance of the workers.k. They ensure discipline in the enterprise.l. They motivate workers.m. They are the image builders of the enterprise because they are in direct contact with the

workers.

HENRI FAYOLS 14 Principles ofManagement

1. DIVISION OF WORK: Work should be divided among individuals and groups toensure that effort and attention are focused on special portions of the task. Fayolpresented work specialization as the best way to use the human resources of theorganization.

2. AUTHORITY: The concepts of Authority and responsibility are closely related.Authority was defined by Fayol as the right to give orders and the power to exact

obedience. Responsibility involves being accountable, and is therefore naturallyassociated with authority. Whoever assumes authority also assumes responsibility.

3. DISCIPLINE: A successful organization requires the common effort of workers.Penalties should be applied judiciously to encourage this common effort.

4. UNITY OF COMMAND: Workers should receive orders from only one manager.5. UNITY OF DIRECTION: The entire organization should be moving towards a

common objective in a common direction.

6. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERALINTERESTS: The interests of one person should not take priority over the interests ofthe organization as a whole.

7. REMUNERATION: Many variables, such as cost of living, supply of qualifiedpersonnel, general business conditions, and success of the business, should be consideredin determining a workers rate of pay.

8. CENTRALIZATION: Fayol defined centralization as lowering the importance of thesubordinate role. Decentralization is increasing the importance. The degree to whichcentralization or decentralization should be adopted depends on the specific organization

in which the manager is working.

9. SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Eachmanager, from the first line supervisor to the president, possess certain amounts ofauthority. The President possesses the most authority; the first line supervisor the least.Lower level managers should always keep upper level managers informed of their workactivities. The existence of a scalar chain and adherence to it are necessary if the


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16.These definitions emphasize the difference between Personnel Management as defined inthe second paragraph and human resource management as described in the thirdparagraph. To put it in one sentence, personnel management is essentially workforcecentered whereas human resource management is resource centered. The keydifference is HRM in recent times is about fulfilling management objectives of providing

and deploying people and a greater emphasis on planning, monitoring and control.17.Whatever the definition we use the answer to the question as to what is HRM? is that itis all about people in organizations. No wonder that some MNCs (Multinationals) call

the HR managers as People Managers, People Enablers and the practice as peoplemanagement. In the 21st century organizations, the HR manager or the people manager isno longer seen as someone who takes care of the activities described in the traditionalway. In fact, most organizations have different departments dealing with Staffing,Payroll, and Retention etc. Instead, the HR manager is responsible for managingemployee expectations vis--vis the management objectives and reconciling both toensure employee fulfillment and realization of management objectives.

18.In conclusion, this article has briefly touched upon the topic of HRM and served as anintroduction to HRM. We shall touch upon the other topics that this field covers in otherarticles.

Importance of HRM for Organizational Success

We have discussed the basic concept of HRM and the ways in which it helps the organizationmeet its goals. In this article, we discuss the reasons for organizations to have a HRM strategy aswell as the business drivers that make the strategy imperative for organizational success. It is afact that to thrive in the chaotic and turbulent business environment, firms need to constantlyinnovate and be ahead of the curve in terms of business practices and strategies. It is from this

motivation to be at the top of the pack that HRM becomes a valuable tool for management toensure success.

The Evolving Business Paradigm

One of the factors behind organizations giving a lot of attention to their people is the nature ofthe firms in the current business environment. Given the fact that there has been a steadymovement towards an economy based on services, it becomes important for firms engaged in theservice sector to keep their employees motivated and productive. Even in the manufacturing andthe traditional sectors, the need to remain competitive has meant that firms in these sectorsdeploy strategies that make effective use of their resources. This changed business landscape hascome about as a result of a paradigm shift in the way businesses and firms view their employeesas more than just resources and instead adopt a people first approach.


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Financial Management - Meaning, Objectives and Functions

Meaning of Financial Management

Financial Management means planning, organizing, directing and controlling the financial

activities such as procurement and utilization of funds of the enterprise. It means applyinggeneral management principles to financial resources of the enterprise.

Scope/Elements

1. Investment decisions includes investment in fixed assets (called as capital budgeting).Investment in current assets are also a part of investment decisions called as working capital

decisions.

2. Financial decisions - They relate to the raising of finance from various resources which willdepend upon decision on type of source, period of financing, cost of financing and the returns

thereby.

3. Dividend decision - The finance manager has to take decision with regards to the net profitdistribution. Net profits are generally divided into two:

a. Dividend for shareholders- Dividend and the rate of it has to be decided.b. Retained profits- Amount of retained profits has to be finalized which will depend upon

expansion and diversification plans of the enterprise.

Objectives of Financial Management

The financial management is generally concerned with procurement, allocation and control of financial

resources of a concern. The objectives can be-

1. To ensure regular and adequate supply of funds to the concern.2. To ensure adequate returns to the shareholders which will depend upon the earning capacity,

market price of the share, expectations of the shareholders.

3. To ensure optimum funds utilization. Once the funds are procured, they should be utilized inmaximum possible way at least cost.

4. To ensure safety on investment, i.e, funds should be invested in safe ventures so that adequaterate of return can be achieved.

5. To plan a sound capital structure-There should be sound and fair composition of capital so that abalance is maintained between debt and equity capital.

Functions of Financial Management

1. Estimation of capital requirements: A finance manager has to make estimation with regards tocapital requirements of the company. This will depend upon expected costs and profits and

future programmes and policies of a concern. Estimations have to be made in an adequate

manner which increases earning capacity of enterprise.

2. Determination of capital composition: Once the estimation have been made, the capitalstructure have to be decided. This involves short- term and long- term debt equity analysis. This


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will depend upon the proportion of equity capital a company is possessing and additional funds

which have to be raised from outside parties.

3. Choice of sources of funds: For additional funds to be procured, a company has many choiceslike-

a. Issue of shares and debenturesb. Loans to be taken from banks and financial institutionsc. Public deposits to be drawn like in form of bonds.

Choice of factor will depend on relative merits and demerits of each source and period of

financing.

4. Investment of funds: The finance manager has to decide to allocate funds into profitableventures so that there is safety on investment and regular returns is possible.

5. Disposal of surplus: The net profits decision have to be made by the finance manager. This canbe done in two ways:

a. Dividend declaration - It includes identifying the rate of dividends and other benefits likebonus.

b. Retained profits - The volume has to be decided which will depend upon expansional,innovational, diversification plans of the company.

6. Management of cash: Finance manager has to make decisions with regards to cashmanagement. Cash is required for many purposes like payment of wages and salaries, payment

of electricity and water bills, payment to creditors, meeting current liabilities, maintainance of

enough stock, purchase of raw materials, etc.

7. Financial controls: The finance manager has not only to plan, procure and utilize the funds buthe also has to exercise control over finances. This can be done through many techniques like

ratio analysis, financial forecasting, cost and profit control, etc.

Role of a Financial ManagerFinancial activities of a firm is one of the most important and complex activities of a firm.Therefore in order to take care of these activities a financial manager performs all the requisitefinancial activities.

A financial manger is a person who takes care of all the important financial functions of anorganization. The person in charge should maintain a far sightedness in order to ensure that thefunds are utilized in the most efficient manner. His actions directly affect the Profitability,growth and goodwill of the firm.

Following are the main functions of a Financial Manager:

1. Raising of FundsIn order to meet the obligation of the business it is important to have enough cash andliquidity. A firm can raise funds by the way of equity and debt. It is the responsibility ofa financial manager to decide the ratio between debt and equity. It is important tomaintain a good balance between equity and debt.


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At the turn of the 20th century, the economic structure in most of the developed countries oftoday was fast changing from a feudalistic economy to that of an industrial or capitalisticeconomy. The nature of the industrial workers was changing and methods of exercising controlover the workers, to get the desired output, had also to be changed. This changed economicclimate produced the new techniques and concepts.

Individual Efficiency:

Fredric W Taylor studied the simple output to time relationship for manual labor such as brick-laying. This formed the precursor of the present day time study. Around the same time, Frank

Gilberth and his leaned wife Lillian Gilberth examined the motions of the limbs of the workers(such as the hands, legs, eyes etc) in performing the jobs and tried to standardize these motionsinto certain categories and utilize the classification to arrive at standards for time required toperform a given job. This was the precursor to the present day motion study. Although to this

day Gilberths classification of movements is used extensively, there have been variousmodifications and newer classifications.

Collective Efficiency:

So far focus was on controlling the work output of the manual laborer or the machine operator.The primary objective of production management was that of efficiencyefficiency of theindividual operator. The aspects of collective efficiency came into being later, expressed throughthe efforts of scientists such as Gantt who shifted the attention to scheduling of the operations.Even now, we use the Gantt charts in operations scheduling. The considerations of efficiency inthe use of materials followed later. It was almost 1930, before a basic inventory model waspresented by F W Harris.

Quality:After the progress of applications of scientific principles to the manufacturing aspects, thoughtprogressed to control over the quality of the finished material itself. Till then, the focus was onthe quantitative aspects; later on it shifted to the quality aspects. Quality which is an importantcustomer service objective came to be recognized for scientific analysis. The analysis ofproductive system, therefore, now also included the effectiveness criterion in addition toefficiency. In 1931, Walter Shewart came up with theory regarding Control Charts for quality orwhat is known as process control. These charts suggested a simple graphical methodology to

monitor the quality characteristics of the output and how to control it. In 1935, H F Dodge andHG Romig came up with application of statistical principles to the acceptance and/or rejection ofthe consignments supplied by the suppliers to exercise control over the quality. This field, whichhas developed over the years is now known as; acceptance sampling.

Effectiveness as a Function of Internal Climate:

In addition to effectiveness for the customer, the concept of effectiveness as a function ofinternal climate dawned on management scientists through the Hawthorne experiments whichactually had the purpose of increasing the efficiency of the individual worker. These experimentsshowed that worker efficiency went up when the intensity of illumination was gradually


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increased, and even when it was gradually decreased, the worker efficiency still kept rising. Thispuzzle could be explained only through the angle of human psychology; the very fact thatsomebody cared, mattered much to the workers who gave increased output. Till now, it wasTaylors theory of elementalisation of task and thus the specialization in one task which foundmuch use in Henry Fords Assembly Line.

Advent of Operations Research Techniques:

The birth of Operations Research (OR) during the World War II period saw a big boost in theapplication of scientific techniques in management. During this war, the Allied Force took thehelp of statisticians, scientists, engineers etc to analyze and answers questions such as: What isthe optimum way of mining the harbors of the areas occupied by the Japanese? What should bethe optimum size of the fleet of the supply ships, taking into account the costs of loss due toenemy attack and the costs of employing the defense fleet? Such studies about the militaryoperations was termed as OR. After World War II, this field was further investigated anddeveloped by academic institutions. Various techniques such as linear programming game

theory, queuing theory and the like developed by people such as George Dantzig A Charnes andW.W Cooper have become indispensable tools for management decision making today

more athttp://www.citeman.com/4795-brief-history-of-the-production-and-operations-management-

function.html#ixzz1xJ24wd5G

Marketing is "the activity, set of institutions, and processes for creating, communicating,delivering, and exchanging offerings that have value for customers, clients, partners, and society

at large."[1]

For business to consumer marketing it is "the process by which companies create value forcustomers and build strong customer relationships, in order to capture value from customers inreturn". For business to business marketing it is creating value, solutions, and relationships eithershort term or long term with a company or brand. It generates the strategy that underlies salestechniques, business communication, and business developments.[2]It is an integrated processthrough which companies build strongcustomer relationshipsand create value for theircustomers and for themselves.[2]

Marketing is used to identify thecustomer, satisfy the customer, and keep the customer. With thecustomer as the focus of its activities,marketing managementis one of the major components ofbusiness management. Marketing evolved to meet the stasis in developing new markets caused

bymature marketsandovercapacitiesin the last 2-3 centuries.[citation needed]

The adoption ofmarketing strategies requires businesses to shift their focus fromproductionto the perceivedneeds and wants of their customers as the means of stayingprofitable.[citation needed]

The term marketing conceptholds that achieving organizational goals depends on knowing theneeds and wants oftarget marketsand delivering the desired satisfactions.[3]It proposes that inorder to satisfy its organizational objectives, an organization should anticipate the needs andwants of consumers and satisfy these more effectively than competitors.[3]
http://www.citeman.com/4795-brief-history-of-the-production-and-operations-management-function.html#ixzz1xJ24wd5Ghttp://www.citeman.com/4795-brief-history-of-the-production-and-operations-management-function.html#ixzz1xJ24wd5Ghttp://www.citeman.com/4795-brief-history-of-the-production-and-operations-management-function.html#ixzz1xJ24wd5Ghttp://www.citeman.com/4795-brief-history-of-the-production-and-operations-management-function.html#ixzz1xJ24wd5Ghttp://en.wikipedia.org/wiki/Marketing#cite_note-0http://en.wikipedia.org/wiki/Marketing#cite_note-0http://en.wikipedia.org/wiki/Marketing#cite_note-0http://en.wikipedia.org/wiki/Marketing#cite_note-kotler-a-1http://en.wikipedia.org/wiki/Marketing#cite_note-kotler-a-1http://en.wikipedia.org/wiki/Marketing#cite_note-kotler-a-1http://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Marketing#cite_note-kotler-a-1http://en.wikipedia.org/wiki/Marketing#cite_note-kotler-a-1http://en.wikipedia.org/wiki/Marketing#cite_note-kotler-a-1http://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Marketing_managementhttp://en.wikipedia.org/wiki/Marketing_managementhttp://en.wikipedia.org/wiki/Marketing_managementhttp://en.wikipedia.org/wiki/Outline_of_business_managementhttp://en.wikipedia.org/wiki/Outline_of_business_managementhttp://en.wikipedia.org/wiki/Mature_markethttp://en.wikipedia.org/wiki/Mature_markethttp://en.wikipedia.org/wiki/Mature_markethttp://en.wikipedia.org/wiki/Overcapacityhttp://en.wikipedia.org/wiki/Overcapacityhttp://en.wikipedia.org/wiki/Overcapacityhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Profit_%28accounting%29http://en.wikipedia.org/wiki/Profit_%28accounting%29http://en.wikipedia.org/wiki/Profit_%28accounting%29http://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Target_marketshttp://en.wikipedia.org/wiki/Target_marketshttp://en.wikipedia.org/wiki/Target_marketshttp://en.wikipedia.org/wiki/Marketing#cite_note-kotler-b-2http://en.wikipedia.org/wiki/Marketing#cite_note-kotler-b-2http://en.wikipedia.org/wiki/Marketing#cite_note-kotler-b-2http://en.wikipedia.org/wiki/Marketing#cite_note-kotler-b-2http://en.wikipedia.org/wiki/Marketing#cite_note-kotler-b-2http://en.wikipedia.org/wiki/Marketing#cite_note-kotler-b-2http://en.wikipedia.org/wiki/Marketing#cite_note-kotler-b-2http://en.wikipedia.org/wiki/Marketing#cite_note-kotler-b-2http://en.wikipedia.org/wiki/Target_marketshttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Profit_%28accounting%29http://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Overcapacityhttp://en.wikipedia.org/wiki/Mature_markethttp://en.wikipedia.org/wiki/Outline_of_business_managementhttp://en.wikipedia.org/wiki/Marketing_managementhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Marketing#cite_note-kotler-a-1http://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Marketing#cite_note-kotler-a-1http://en.wikipedia.org/wiki/Marketing#cite_note-0http://www.citeman.com/4795-brief-history-of-the-production-and-operations-management-function.html#ixzz1xJ24wd5Ghttp://www.citeman.com/4795-brief-history-of-the-production-and-operations-management-function.html#ixzz1xJ24wd5G


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The term developed from an original meaning which referred literally to going to a market to buyor sell goods or services. Seen from a systems point of view,sales process engineeringmarketingis "a set of processes that are interconnected and interdependent with other functions,[4]whosemethods can be improved using a variety of relatively new approaches."

Operations management

Operations management is an area ofmanagementconcerned with overseeing, designing,controlling the process of production and redesigningbusiness operationsin the production ofgoods and/or services. It involves the responsibility of ensuring that business operations areefficientin terms of using as few resources as needed, andeffectivein terms of meetingcustomer requirements. It is concerned with managing the process that converts inputs (in theforms of materials, labor, and energy) into outputs (in the form of goods and/or services). Therelationship of operations management tosenior managementin commercial contexts can becompared to the relationship ofline officersto highest-level senior officers inmilitary science.

The highest-level officers shape thestrategyand revise it over time, while the line officers maketacticaldecisions in support of carrying out the strategy. In business as in military affairs, theboundaries between levels are not always distinct; tactical information dynamically informsstrategy, and individual people often move between roles over time.

According to the U.S. Department of Education, operations management is the field concernedwith managing and directing the physical and/or technical functions of a firm or organization,particularly those relating to development, production, and manufacturing. Operationsmanagement programs typically include instruction in principles of general management,manufacturing and production systems, plant management, equipment maintenancemanagement, production control, industrial labor relations and skilled trades supervision,

strategic manufacturing policy, systems analysis, productivity analysis and cost control, andmaterials planning.[1][2]Management, including operations management, is likeengineeringinthat it blends art withapplied science. People skills, creativity, rational analysis, and knowledgeof technology are all required for success.

Production (economics)From Wikipedia, the free encyclopedia

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Ineconomics,production is the act of creatingoutput, agood or servicewhich hasvalueandcontributes to theutilityof individuals.[1]The act may or may not includefactors of productionother than labor. Any effort directed toward the realization of a desired product or service is a"productive" effort and the performance of such act is production. The relation between theamount of inputs used in production and the resulting amount of output is called theproductionfunction.
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Five Differences Between Service and Manufacturing Organizations

There are five main differences between service and manufacturing organizations: the tangibilityof their output; production on demand or for inventory; customer-specific production; labor-intensive or automated operations; and the need for a physical production location. However, in

practice, service and manufacturing organizations share many characteristics. Manymanufacturers offer their own service operations and both require skilled people to create aprofitable business.

Goods

The key difference between service firms and manufacturers is the tangibility of their output.The output of a service firm, such as consultancy, training or maintenance, for example, isintangible. Manufacturers produce physical goods that customers can see and touch.

Inventory

Service firms, unlike manufacturers, do not hold inventory; they create a service when a clientrequires it. Manufacturers produce goods for stock, with inventory levels aligned to forecasts ofmarket demand. Some manufacturers maintain minimum stock levels, relying on the accuracy ofdemand forecasts and their production capacity to meet demand on a just-in-time basis.Inventory also represents a cost for a manufacturing organization.

Customers

Service firms do not produce a service unless a customer requires it, although they design and

develop the scope and content of services in advance of any orders. Service firms generallyproduce a service tailored to customers' needs, such as 12 hours of consultancy, plus 14 hours ofdesign and 10 hours of installation. Manufacturers can produce goods without a customer orderor forecast of customer demand. However, producing goods that do not meet market needs is apoor strategy.

Labor

A service firm recruits people with specific knowledge and skills in the service disciplines that itoffers. Service delivery is labor intensive and cannot be easily automated, although knowledgemanagement systems enable a degree of knowledge capture and sharing. Manufacturers can

automate many of their production processes to reduce their labor requirements, although somemanufacturing organizations are labor intensive, particularly in countries where labor costs arelow.

Location

Service firms do not require a physical production site. The people creating and delivering theservice can be located anywhere. For example, global firms such as consultants Deloitte use


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communication networks to access the most appropriate service skills and knowledge fromoffices around the world. Manufacturers must have a physical location for their production andstock holding operations. Production does not necessarily take place on the manufacturer's ownsite; it can take place at any point in the supply chain.

Service Operations vs. Manufacturing Operations

Service and manufacturing operations have differences, but also similarities. For example, bothcreate mission statements and a vision for how the organization will be run and perceived bycustomers. Each provider or manufacturer wants to lead the market in its specific industry.However, manufacturing and service operations answer different questions and formulatedifferent strategies when it comes to planning and managing the way in which an organization isrun.

Characteristics

Manufacturing operations produce tangible goods, which are physical products that can be heldand seen. Manufacturing can be broken down into two branches: process and discretemanufacturing. While process manufacturers produce goods that typically use a formula andingredients, such as soda pop or pharmaceutical drugs, discrete manufacturers produce goodsfrom parts, such as electronics, appliances and automobiles. On the other hand, serviceoperations provide certain intangible services that may not be easily identifiable. Serviceoperations can be classified into many industries, such as banking, hospitality, advertising andconsultancy.

Customization vs. Standardization

In general, manufacturers have a standardized way of producing goods. Goods are produced enmasse in a factory or warehouse-type environment. One finished product is generally the same asthe next. Service operations, by contrast, have more opportunities to customize the services theyprovide. For example, beauticians and hairdressers must customize the styling and treatments tomatch the customer's hair, shape of face and other characteristics. Even in service operationswhere you receive a tangible product, the service you receive from workers may not always bethe same.

Production Environment

Manufacturing and service operations both plan the environment in which work takes place, butthey focus on different elements. Manufacturing operations, for instance, consider themanufacturing layout. For example, the manufacturing layout can be fixed, process-focused orproduct-focused, such as in an assembly line factory. These issues affect the manufacturer'sworkforce performance and total output. Service operations, by contrast, plan the environmentaccording to how it affects customers. For example, service operations are concerned with howthe atmosphere appears to customers. Dimensions of the service environment include the layout


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of furnishings, arrangement of signs and tangible cues, such as colors and sounds designed toenhance the customer experience.

Operations Management

In a manufacturing environment, operations managers oversee the activities required to producegoods from raw materials. Issues managers in this environment face include managing the spaceto store raw materials, the flow of materials through the manufacturing process, how muchproduct to produce and quality of output. In a service operation, operations managers scheduleworkers to handle customer demand. They must coach and train employees to provide optimalservices to customers. Service operations that also sell physical goods also face inventory controlissues, such as how much to stock and when to order.

Similar Issues

Service and manufacturing organizations face many similar issues that affect the end result of the

operation. For example, both face issues of cost control. Manufacturing operations must findsuppliers of raw materials at the lowest cost -- and highest quality -- possible. Likewise, serviceoperations' indirect cost of providing services must be kept low so that the organization canprovide competitive prices to customers and still turn a profit. Other issues both types ofoperations face include forecasting demand for products and services and staying competitive inthe marketplace.

Manufacturing operations concern the operation of a facility, as opposed to maintenance,

supplyanddistribution,health, andsafety, emergency response,human resources,security,information

technologyand otherinfrastructuralsupportorganizations.

A service operation is an open transformation process of converting inputs (consumers) todesired outputs (satisfied consumers) through the appropriate application of resources (family,material, labor, information, and the consumer as well). More simply, services are economicactivities that produce time, place, form, or psychological utility. A meal in a fast food restaurantsaves time. A meal with a date in an elegant restaurant with superior service provides apsychological boost. Wal-Mart attracts millions of customers because they can find departmentstore merchandise, groceries, gasoline, auto service, dry cleaning, movie rental, hair styling,eyeglasses and optical services, and nursery items all in one place

Read more:Service Operations - strategy, organization, system, examples, model, hierarchy,business, systemhttp://www.referenceforbusiness.com/management/Sc-Str/Service-Operations.html#ixzz1xJ95EpIU
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Cotton Industry Situationer, Crop Year 2004/05

After suffering from dwindling production over the past decade, the Philippine cotton industry isonce again upbeat as prospects for positive business opportunities continue to manifest. CY2004/05 brought new optimism for the industry, as a new cotton program, aptly titled "The

Philippine Cotton Industry Road Map", was put into action.

Highlighted in the Road Map is the ever-important role of the private-sector in paving the wayfor the growth, stability and progress of the industry. In fact, development theories have alwaysemphasized the pivotal role of the private sector in building-up the national economy in asustainable and efficient way. The road map adhered to this principle, with strategies that focuson: 1) industry restructuring - aimed at organizing key industry segments to resolve problemsassociated with asymmetric information and inefficiencies, 2) industry build-up - focused ondeveloping a sizeable production base to increase the relevance and contribution of the industryto the national economy, and 3) industry promotionwith the objective of moving thePhilippine Cotton Industry towards the international front.

Milestones

Modest outputs have been attained in line with the Cotton Road Map. These achievements,however, are crucial in building up the foundation for the new program, and in reshaping theindustry towards our vision of a private-led cotton industry. Initially, we have:

Organized the private sector in an effort to harmonize production, processing andmarketing operations, to encourage private sector investments and promote the equitabledistribution of gains among stakeholders. Specifically, four private cotton integratorswere formed (1 in Luzon, 1 in Visayas and 2 in Mindanao) to carry out production

operations and provide the necessary support services to cotton farmers, while thePrimatex Fibre Corporation, an established international cotton merchant, acts as thenational merchandizing entity.

In line with the Philippine Governments streamlining program, we prepared the CottonDevelopment Administration (CODA) rationalization plan to make operations andgovernment provision of services such as R&D, extension, policy support, andinformation support more efficient and effective.

Established nucleus cotton production areas, which shall serve as our production base.Area clustering was introduced to enhance provision of support services.

Worked-out an expanded production credit for cotton with the Quedan Rural Credit andGuarantee Corp. (QUEDANCOR), a government financing institution. This crop year,

PhP 21 million (US$ 381,818) was released to the cotton program. Changed our extension approach adopting the Food and Agriculture Organization (FAO)

scheme of utilizing participatory and experiential learning through the Farmer FieldSchools (FFS). Specifically, training of Cotton Development Specialists (governmenttechnicians), as well as private technicians and farmer leaders is continuously beingundertaken.

Initiated a collaborative undertaking with the Transgenic Biocentury Corp. of China onthe testing and possible commercialization of Bt cotton in the country.


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Production Performance

Despite the relatively small size of the domestic cotton industry, cotton is still considered as animportant high-value crop in the Philippines providing income, employment, and exportopportunities, as well as quality raw materials for our dollar-earning domestic textile industry.

During CY 2004/2005, the cotton sector is estimated to have contributed PhP 115 million(US$ 2 M) to the national economy (58% increase from the previous year). Primary factorfor this growth is the expansion of cotton areas reaching about 5,000 ha (153% increase from lastseason). In fact, over the last 9 years, this season posted the highest performance in terms of areacoverage. Attractive prices, credit availability and strong private sector presence are themajor factors identified to have caused the renewal of the interest of farmers to engage incotton cultivation amidst competition from other dry-season and highly supportedtraditional agricultural commodities. About 4,000 farmers participated in the cottonprogram this year, 117% increase from the last seasons figures. Most cotton farmers aresmall land-holders with farm sizes ranging from 0.5 ha to 3.0 ha (Figure 1).

Cotton is cultivated in the three major islands of the country, Luzon, Visayas and Mindanao.During the past 10 years however, production activity is concentrated in Mindanao where it hasendured less competition from other crops. For CY 2004/05 about 88% of the cotton areas arefound in the island, while Visayas and Luzon shared 8% and 4% of the total area, respectively.Among all these areas though, cotton is deemed most suitable in Luzon which explains therelatively high yields in the area. Apart from the very favorable agro-climatic conditions, onlyLuzon is irrigated, while Visayas and Mindanao are rainfed areas.

Despite the increase in the area, productivity suffered a decline posting an average farm yield of0.99 MT seedcotton per hectare (0.38 MT lint), 19% less than the previous year (Figure 2).

Highest average yield was attained in Luzon with 1,130 kg per ha (430 kg lint), followed byVisayas at 860 kg per hectare (327 kg lint) and Mindanao at 850 kg per ha (323 kg lint).Nevertheless, some farmers in Luzon have attained very high productivity almost triple that ofthe national average.

Some of the problems that adversely affected productivity are the inadequate rainfall, high pestpressure, delayed release of production loans, and inadequate technical knowledge of farmers.The latter two factors affected the application of production inputs and led farmers to deviatefrom technological recommendations resulting to poor plant stand and uncontrolled pests.

Prices

One of the main determinants of the growth of the sector this season is the favorable local marketconditions. High world market prices during the 1st quarter of 2004 resonated in the domesticmarket as middlemen provided generous commitments to cotton producers during the start of theseason. Specifically, seedcotton pegged a price of as high as PhP 23.00 per kg (US$ 0.42) inLuzon, and PhP 19.00 (US$ 0.33) in Visayas and Mindanao. Previously, prices were pegged atPhP 20.00 (US$ 0.36) in Luzon, PhP 17.00 (US$ 0.31) in Visayas, and only PhP 16.00 (US$0.29) in Mindanao. The variability of prices across islands is attributed mainly to the differences


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in marketing cost, an important component of which is transportation. Since textile mills aresituated in Manila, Luzon cotton growers enjoy proximity advantage allowing the produce to betransported cheaper than Visayas and Mindanao.

As the year progressed however, world lint price nose-dived starting the second quarter of 2004.

Domestic lint price is estimated to be equal to the landed cost of imported cotton since importedlint still holds the majority share of domestic supply. Further, since no price support is extendedby the government, domestic prices are primarily market-determined. Specifically, averagedomestic price of lint was estimated at about PhP 69.00 per kg (US$ 1.25) a large decline fromthe previous years average of about PhP 94.00 per kg (US$ 1.74).

Lint Consumption

After a slump in 2003 (at only 33,400 MT), domestic lint consumption has slightly recovered byabout 9%, reaching 36,200 MT (Figure 3). However, this value is still very modest compared tothe annual lint consumption of the domestic mills from 1999-2002, averaging 67,000 MT per

annum. The decline in consumption may be conceived as a reaction to the expected abolition oftextile quotas in 2005, prompting local mills to adjust their production structure in anticipation ofdemand contraction for their products./p

For the raw cotton producers, the impact of this decline in local lint demand is deemed veryminimal. Local cotton remains to share only a minimal portion of total demand estimated to beabout 2%.

Trade

Following the trend of lint consumption, lint imports also increased during the year reaching

about 31,500 MT valued at PhP 3.7 billion (US$ 69 million). The United States remain to be themajor source of cotton comprising 63% of total imports (Table 1).

Historically, domestic production was solely intended for the domestic market. In 2004,however, about 100 MT of lint was exported to Indonesia (51%), United States (34%), UnitedKingdom (10%) and Sri Lanka (4%) which earned the country US$ 200,000 (PhP 10.4 million)(Philippine National Statistics Office, 2005). This signals the changing sentiment of the domesticcotton industry towards an outward-looking marketing strategy with the hope of obtaining gainsfrom the international market. Contributory to this end is the prime quality of Philippine cottonwhich is considered to be of top grade (Table 2). Gossypium hirsutum and Gossypiumbarbadense are the varieties cultivated in the country.

Another dollar-earner, industrial cotton seeds which can be used for extracting oil or as animalfeeds, are exported to neighboring countries. In 2004, about 600 MT of seeds were exported toKorea (70%) and Japan (30%), valued at PhP 4.7 million or US$ 0.10 million.

Government Support to the Industry


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No subsidies and protection is extended by the government, which makes the domestic cottonindustry highly liberalized and primarily influenced by market forces. The benefit of such openpolicy is increased competition, which in turn provides for a more efficient production structureand better quality of products. Government support to the industry is primarily confined to R&Das well as extension support, notwithstanding assistance in various semi-commercial activities.

Specifically, CODA undertakes the following support services:

Production support. CODA produces quality basic cottonseeds (nucleus, breeder, andfoundation seeds) of commercial pure line cotton varieties and provides technical supportto private seed growers in the production of registered and certified seeds. Trichogrammaproduction is also undertaken to promote the use of environment-friendly pestmanagement of cotton in the country.

Market development. CODA initiates meetings and market-matching between farmersand legitimate cotton buyers to facilitate marketing agreements between the two parties.

Credit facilitation. Assistance is focused mainly on the conduct of Values OrientationSeminars (VOS) for prospective farmer creditors and processing of loan applications.

Post-harvest services. While privatization of the government ginnery facilities isunderway, ginning and warehousing services are being administered by CODA at the

moment, thru its facility in San Fabian, Pangasinan. The services are offered to farmersand other interested private business clients at competitive prices.

Extension support, education and training. Under this component, efforts focus on fiveimportant aspects, namely, industry promotion, trainings, field days, technical assistance,crop monitoring, and production/distribution of IEC materials.

Information support. CODA develops and packages information and industry data inappropriate formats for easy access and use of a multi-level audience. This includes awebsite, industry database and GIS maps.

Policy and Advocacy. CODA formulates policy recommendations and plans that aim toboost the industrys growth.


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Research and Development. A dynamic, demand-driven and problem-oriented cottonR&D agenda is being implemented with emphasis on developing quality and pest-resistant varieties, improving the pest management technology for cotton, generating

cost-efficient cultural management techniques, as well as coming up with socio-economicanalysis of the industry.


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Cebu Pacific

Cebu Air, Inc., operating as Cebu Pacific Air, is based on the grounds ofNinoy AquinoInternational Airport(Manila Terminal 3),Pasay City,Metro Manila, thePhilippines.[1]It offersscheduled flights to both domestic and international destinations. Cebu Pacific Air is currently

the country's leading domestic carrier, serving the most domestic destinations with the largestnumber flights and routes, and equipped with the youngest fleet. Its main base isNinoy AquinoInternational Airport, Manila, with other hubs atMactan-Cebu International Airport,ZamboangaInternational Airport[2],Francisco Bangoy International Airport[3]andDiosdado MacapagalInternational Airport.[4]

The airline is a subsidiary ofJG Summit Holdings. Cebu Pacific is currently headed by LanceGokongwei, presumptive heir of John Gokongwei, the chairman emeritus of JG Summit. Thecompany has 1,182 employees (as of March 2007).[3]In October 2010, the airline completed anIPO of 30.4% of outstanding shares.[5]Cebu Pacific carried more than 10 million passengers in2010.

The airline was established on August 26, 1988, and started operations on March 8, 1996. Republic Act

No. 7151, which grants franchise to Cebu Air, Inc. was approved on August 30, 1991. Cebu Air, Inc. was

subsequently acquired by JG Summit Holdings (owned by John Gokongwei). Domestic services

commenced following market deregulation by the Philippine government. It temporarily ceased

operations in February 1998 after being grounded by the government due to anaccident, but resumed

services later the next month following re-certification of its aircraft.[3]

It initially started with 24

domestic flights daily amongMetro Manila,Metro CebuandMetro Davao. By the end of 2001, its

operations had grown to about 80 daily flights to 18 domestic destinations.

Equitable PCI Bank

Equitable PCI Bank, Inc.(PSE:EPCI) was one of the largestbanksin thePhilippines, being the third-

largest bank in terms of assets. With PCIBank the largest bank before it was overtaken by Metrobank in

1995. It is the result of the merger ofEquitable Banking Corporation and Philippine Commercial

International Bank, or PCIBank. It was known for a wide range of services from savings toinsuranceand,

through its wholly owned subsidiaryEquitable CardNetwork, was the largest Philippine credit card

issuer. The bankmergedwithBanco de Oro Universal Bankin early 2007, and is now branded as "BDO"

as its new identity as part of the newBanco de Oro Unibank, Inc

Equitable PCI Bank History

The shares of the Lopez and Gokongwei Families were sold to the SSS and GSIS which acquired78% of PCI Bank shares that were bought by the Go-Led Equitable Banking Corporation and
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quitable_PCI_Bank_mergerhttp://en.wikipedia.org/w/index.php?title=Equitable_CardNetwork_Inc.&action=edit&redlink=1http://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Philippineshttp://en.wikipedia.org/wiki/Bankhttp://www2.pse.com.ph/html/MarketInformation/stockinfo.jsp?securitySymbol=EPCIhttp://en.wikipedia.org/wiki/Philippine_Stock_Exchangehttp://en.wikipedia.org/wiki/Metro_Davaohttp://en.wikipedia.org/wiki/Metro_Cebuhttp://en.wikipedia.org/wiki/Metro_Manilahttp://en.wikipedia.org/wiki/Cebu_Pacific_Air#cite_note-FI-2http://en.wikipedia.org/wiki/Cebu_Pacific_Flight_387http://en.wikipedia.org/wiki/Cebu_Pacific_Air#cite_note-4http://en.wikipedia.org/wiki/Cebu_Pacific_Air#cite_note-FI-2http://en.wikipedia.org/wiki/JG_Summit_Holdingshttp://en.wikipedia.org/wiki/Cebu_Pacific_Air#cite_note-3http://en.wikipedia.org/wiki/Diosdado_Macapagal_International_Airporthttp://en.wikipedia.org/wiki/Diosdado_Macapagal_International_Airporthttp://en.wikipedia.org/wiki/Francisco_Bangoy_International_Airporthttp://en.wikipedia.org/wiki/Francisco_Bangoy_International_Airporthttp://en.wikipedia.org/wiki/Cebu_Pacific_Air#cite_note-1http://en.wikipedia.org/wiki/Zamboanga_International_Airporthttp://en.wikipedia.org/wiki/Zamboanga_International_Airporthttp://en.wikipedia.org/wiki/Mactan-Cebu_International_Airporthttp://en.wikipedia.org/wiki/Ninoy_Aquino_International_Airporthttp://en.wikipedia.org/wiki/Ninoy_Aquino_International_Airporthttp://en.wikipedia.org/wiki/Cebu_Pacific_Air#cite_note-0http://en.wikipedia.org/wiki/Philippineshttp://en.wikipedia.org/wiki/Metro_Manilahttp://en.wikipedia.org/wiki/Pasay_Cityhttp://en.wikipedia.org/wiki/Ninoy_Aquino_International_Airporthttp://en.wikipedia.org/wiki/Ninoy_Aquino_International_Airport


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they merged in 1999 and was approved by the Bangko Sentral and other agencies that hadcreated the Third Largest Philippine Bank with Equitable as the survivor of the merger and thename Equitable PCI Bank was adopted. With Head offices at The former PCI Bank Towers I&IIthat were renamed to the Equitable PCI Bank Towers I&II and the Equitable BankingCorporation Binondo Center and at the Equitable Banking Corporation Tower also in Makati..

The Bank also played in a very important role in the impeachement trial of the former presidentJoseph Estradaof which the bank produced Fifteen Witnesses(Along with nine banks namelyCitibank, Philippine Savings Bank, Bank of the Philippine Islands, Security Bank, Land Bank ofthe Philippines, Urban Bank, Export and Industry Bank, United Asia Bank and Keppel Bank) toprove that the 'Jose Velarde' account was owned the President Estrada(which also investment onthe merger of the Equitable Banking Corporation and then the Lopez-Gokongwei led PhilippineCommercial International Bank). On August 5, 2005, theSM Group of CompaniesandBanco deOro Universal Bankannounced that they have purchased a 24.76% stake of Equitable PCI fromthe Go family(Equitable Banking Corporation), the family that founded the bank, along with a10% stake in Equitable CardNetwork. Subsequent acquisitions by Banco de Oro enabled it togain a 34% share in the bank.

On January 6, 2006, Banco de Oro Universal Bank submitted a merger offer to the bank - withBanco de Oro as the surviving entity. Under the proposed offer, Banco de Oro will swap 1.6 ofits shares for every 1 share of Equitable-PCI(Merger occurred but BDO Shareholders were toswap 1.8 BDO shares for every EPCI Share) . As a second option, Banco de Oro also offered tobase theswap ratioon the book values of both banks to be assessed by an independentaccounting firm using International Accounting Standards. With the success of this merger,Banco de Oro became the second largest bank with assets of P613 billion, just next to currentindustry leader,Metropolitan Bank and Trust Companywith assets of more than P641.5 billion.The merger demoted theBank of the Philippine Islandsdown to third place with P582 billion inassets. BDO has since surpassed Metrobank in asset, loan and deposit sizes to become the largestlender in the Philippines.

Equitable Bank History

On June 17, 1950, Equitable Banking Corporation was founded by Go Kim Pah as the firstcommercial bank in the Philippines licensed by the newly formed Central Bank of thePhilippines (nowBangko Sentral ng Pilipinas). Other commercial banks likeBank of thePhilippine Islandswere formed and licensed during the Spanish or American regimes. However,it was not until 1955 that Equitable opened its first branch in Divisoria.

In 1958, Equitable established the only direct telex service between the Philippines and Japan at

the time, with initial messages exchanged between Equitable and Chase Manhattan Bank ofTokyo.

On August 15, 1963, Equitable established its first branch outside the Philippines in Hong Kongand only International Branch, the first time a Philippine bank opened a branch in the city. Twoyears later, on March 26, 1965, Equitable opened its first provincial branch in Cebu City. By1972, Equitable emerged as the country's premier bank. In 1989, Equitable turned its credit carddepartment into a wholly owned subsidiary, Equitable CardNetwork. With three other banks,
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namelyFar East Bank and Trust Company(since merged with theBank of the PhilippineIslands,Philippine National Bank, andUnited Coconut Planters Bank, it formedMegalink, thenthe Philippines' largest ATM network. On July 27, 1996, Equitable Savings Bank wasestablished as Equitable's savings bank arm. Equitable listed on the Philippine Stock Exchangeon April 3, 1997, and in 1999, In 1977, the bank received its foreign currency license from the

BSP and in 1980, issued its first credit cards under the VISA (credit card)and Visa brand. In1987, Equitable became a universal bank and was appointed the clearing house of the MakatiStock Exchange, now the Philippine Stock Exchange.

PCIBank History

PCIBank was established on July 8, 1938 as the Philippine Bank of Commerce by sugar farmersfrom the Visayas region then it was the first Filipino-owned private commercial bank in thecountry. Then in the 1960's Benpres Holding Corp(now Lopez Holdings Corporation) bought outthe majority stake in the PBC and they renamed it to the Philippine Commercial and IndustryBank(PCIBank). Then in the 1980's the Gokongwei Group headed by taipanJohn Gokongwei

entered the Joint Venture buying about 33% of PCIBank shares then he appointed RafaelBuenaventura to head PCIBank as President and CEO. Also in the 1980's proved hard for theLopezes because all of their businesses were seized by Pres. Marcos. To this day TheRomualdez-Lopez Dispute case still remains at court. Also in the 1980's when Gokongweientered PCIBank he also owned Far East Bank and Trust Co and talks of a merger surfacedwhich would have created the largest bank in the Philippines then. PCIBank formed BancNetalong withSecurity Bank,Chinabank, RCBC,Allied Bank(Merged with PNB), Metrobank,International Corporate Bank (now part of UnionBank), and Citytrust Savings Bank formedBancNet. BancNet was also the brainchild of one of PCIBank's senior officers Mr. Ramon ArceoJr. the Senior Vice President(now works as UCPB's President). And due to pressures fromPresident Erap estrada the Lopez and Gokongwei Families sold their shares to the SSS and GSIS

and they were auctioned and the victors Equitable Banking Corp a well known crony of the Pres.Estrada had them merged with Equitable as survivor of the merger. PCIBank also had 3companies listed at the Philippine Stock Exchange namely PCIBank itself(PSE:PCI), Bankard;Now an affiliate of RCBC(PSE:BKD)and PCI Leasing and Finance(PSE:PCIL) now namedBDO Leasing and Finance(PSE:BLFI).
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The 3 Elements of Project Management

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