Ethical issues relating to ife Essay Example | Topics and Well Written Essays - 750 words

Ethical issues relating to ife - Essay Example 83 per cent of these abortions are conducted in the underdeveloped countries while the developed countries account for 17 per cent of these abortions. In such circumstances, study of ethics revives the need to behave ethically. A sound awareness of the principles of ethics is fundamental to the development of morally responsible people who would choose not to abort their children. Sterilization is the term used for killing. Generally, sterilization is used for killing microbes in eatables so that they can be made more hygienic. Killing the fetus is also sterilization. Two drugs, namely Methotrexate & Misoprostol which were previously used for the treatment of cancer and ulcer respectively are now increasingly being used for abortion. Methotrexate poisons the fetus. This is followed by the action of Misoprostol that empties the fetus’s uterus. Methotrexate is a very toxic drug which can kill the mother along with the baby. Hence, this is a very unethical act. Ethics is the study of principles, norms and values that are standardized and mutually accepted by scholars as conducive for the overall betterment of the society. Ethics inculcates a sense in people to make well-informed decisions in critical situations. Ethics tells how things should be manipulated in a given setting so that the individual and collective losses can be minimized and profitability of the job can be enhanced both for the individual and the nation as a whole. Ethics compels an individual to respect others’ rights while accomplishing his/her individualistic goals. Ethics disallows the use of such toxic drugs for conducting abortion. Contraception is the name of controlling pregnancy. Ethics committee plays a very important role in contraception in that it devises the methods to control pregnancy without any loss to the mother. â€Å"In the broadest general terms an ethics committee, satisfies the condition of the Federal Sentencing

The integrating earned value management

The integrating earned value management 3.3 EARNED VALUE PROJECT MANAGEMENT 3.3.1 Basics of Earned Value Project Management Project Management is often defined as the integrated management and control of Time, Cost, Resources and Quality for the successful on time and on budget completion of projects. Traditional approaches to PM ranged from simple Gantt Charts which help in representing the work to be done on a time scale to techniques likes CPM and PERT that addresses the needs of deterministic and probabilistic scheduling. All of these techniques tend to be used primarily for managing time. Cost is often measured independently by the accountants. This separation between cost and time is often the cause of project failure because the executing team is often unable to detect cost overruns until they are well past the point where they can change the outcome of the project. 3.3.2 Illustrative Explanation Earned Value Project Management (EVPM) is a concept that helps Project Managers seamless link Time and Cost for more effective control. Despite the difficult sounding title and the typical jargon associated with EVPM the basic idea is very simple and can be used effectively in a wide variety of situations. The best way to under stand EVPM is to walk through a sample project, so I am going to take you through a software project. Lets say we are working on the ERMS (enterprise resource management system) that has 10 deliverables/modules each to be completed in one month with a budget of 10 Lac Rupees each. The total project span works out to 10 months at a budget cost of Rs. 100 Lacs (Rs. 1 crore). We are at the end of the first three months and the Project Manager is busy preparing his project report. He starts up by reviewing progress and finds that two deliverables are fully complete while the third one is 80% complete. He checks with accounts and finds out that that a total of Rs. 28 Lacs have been spent so far. With this information he is ready to assign values to the three basic variables required to perform EVPM. These are as follows- 3.3.2.1 BCWS / Planned Value (PV) Budget Cost for Work Scheduled, also known as ‘Planned Value in the amount of money that should have been spent at this point in the life of the project if the project was proceeding as per plan. It is time phased budget baseline (figure). It is the approved budget for accomplishing the activity, work package or project related to the schedule. It can be viewed as the value to be earned as a function of project Work accomplishments up to a given point in time [12]. In our case we had planned to complete three deliverables in three months so we should have spent Rs. 30 Lac. A word of caution here, most projects dont proceed in a linear fashion (i.e. total budget/total duration in months). Correct BCWS values can be obtained from a resource loaded project plan that takes in account the actually work to be done in each period. Budget Cost for Work Scheduled is also called ‘Planned Value. 3.3.2.2 Budget at Completion (BAC) This is the total budget baseline for the activity, work package or project. It is the highest value of PV as shown in Figure-1 i.e. 100 Lac. 3.3.2.3 ACWP / Actual Cost (AC) This is the cumulative AC spent to a given point in time to accomplish an activity, work-package or project [12]. Actual Cost for Work Performed is the amount of money that we have actually spent on the project. Accounts have told us that we have spent Rs. 28 Lac. 3.3.2.4 BCWP / Earned Value (EV) This is the cumulative earned value for the work completed up to a point in time. It represents the amount budgeted for performing the work that was accomplished by a given point in time [12]. To obtain EV of an item, simply multiply its total budget by its completed proportion. Budget Cost for Work Performed is the assessment of the value of work that we have completed. Think of this as the worth of the work that we have completed, so if we had completed three deliverables we would have Completed 30 Lac Rupees worth of work. But we have only fully completed two deliverables so we have Rs. 20 Lac and we have 80% of the third deliverable. Partial completion is a tricky issue, because partial estimates generally vary from person to person depending on how optimistic or pessimistic they are. There are rules of the thumb (Heuristics) to deal with this situation. The common ones are 0-100 (give no credit till the task is complete), 20-80 (give 20% credit when the task is underway and the remaining 80% when it is completed), 50-50 (give 50% credit for starting the task and the balance on completion). The selection of method is up to you, but you need to ensure that you will use the same measure across the project for all tasks. In our case lets say we go with the 50-50 rule, so well give Rs. 5 Lacs credit for the third deliverable which brings the BCWP to Rs. 25 Lacs (20+5). Note that BCWP is also referred to as the Earned Value (EV). Lets start by calculating the two basic measures of performance SPI and CPI -3.3.2.5 3.3.2.5 Schedule Performance Index (SPI) Schedule Performance Index is an indicator for accessing our performance relative to the plan. SPI = BCWP/BCWS = 25/30 = 0.83. We know we are behind schedule, what SPI is telling us is that we have only completed 83% of the work that we originally planned to complete. 3.3.2.6 Cost Performance Index (CPI) Cost Performance Index shows us how much value we are getting for each Rupee that we spend on the project. CPI= BCWP/ACWP 25/28 = 0.89. We are over budget because, for producing Rs. 25 Lacs of work we have spent Rs. 28 Lacs. So we are only getting 89 Paisas of value for each Rupee that we spend. Just looking at SPI and CPI we know that we have a problem in that we are both over budget and behind schedule. A lot of work has been done on the use of SPI and CPI early in the project to predict the final outcome. Most of the work has been done in the US defense industry where researchers have looked at dozens of completed projects and tried to correlate their outcome with the status of their SPI and CPI early on during the project. Most studies show that the value of SPI and CPI when the project is only 20% complete can very accurately predict the final outcome. Using heuristics developed from these studies we can predict the following- Projected Project Duration = Planned Duration / SPI = 10 / 0.83 = 12 Month. So we are expecting that the project will be completed two month behind schedule, Projected Project Cost = Planned Cost / CPI = 100 / 0.89 = 112 Lacs. We are expecting a Rs. 12 Lacs overrun on the budget. Recovery Cost This is the cost that we will incur if we need to complete the project within the originally specified time by adding additional resource to the project. Projected Project Cost = Planned Cost / CPI*SPI = 100 / 0.89*0.83 = 135 Lacs Rupees. We should be ready to exceed the budget by 35% if we want to complete the project in time. Conventional wisdom says that your ability to change the outcome of a project is maximum at the start or the project and minimum near the end of the project. So it makes good sense to detect problems early and take action when you have room for maneuver. If you think about the 20% point intuitively, youll note that the any estimation errors that are leading to low CPI (i.e. budget overrun) are likely to effect the remaining activities of the project at the same rate, similarly the performance of your resources in execution is unlikely to get any better than what they have proven capable of in the first fifth of the project. Given the importance of early detection, think about conventional project management and how little it can tell you from the fact that you have completed two deliverables and 80% of the third and spent 28 Lac Rupees, Because of this, problems often evade early detection and by the time someone detects the problem its too late in the project to do much about it i.e. in a stage where the project is controlling the project manger instead of vice versa. 3.3.4 Integrating EVM Risk Management In todays uncertain business environment there is understandable pressure to improve the quality of decision-making at all levels in the organization. A number of techniques have been developed to address this concern, in an attempt to introduce some rational framework to the decision-making process. Two of the leading approaches are Earned Value Management (EVM) and Risk Management (RM). These stand out from other decision support techniques because both EVM and RM can and should be applied in an integrated way across the organization. Starting at the project level, both EVM and RM offer powerful insights into factors affecting project performance. Another key similarity between the two techniques lies in the word â€Å"management†. It is possible to conduct â€Å"Earned Value Analysis† and â€Å"Risk Analysis† to expose underlying drivers of performance. But both techniques emphasize the need to move from analysis to management, using the information to support proactive decision-making. Consequently, both EVM and RM encourage those using the techniques to take appropriate management action based on the results, and not to stop at mere analysis. Since both EVM and RM address the same problem space (performance of projects, programs, portfolios and businesses), and both provide management information to provide a basis for decisions and action, there has been considerable interest in the possibility of developing a combined approach to create synergistic benefits. Currently EVM and RM operate as parallel coexisting processes without systematic integration (although good project managers may intuitively link the two in practices). Much of the discussion to date on the relationship between EVM and RM has been rather theoretical, addressing the key principles underlying the two techniques. The objective is to analyze steps that can be implemented to combine EVM and RM in order to gain maximum benefit for projects and the organization. 3.3.4.1 Weakness in EVM and RM The strength of EVM RM has already been described, as their proponents seek to encourage wider update use. Each technique however has atleast one key weakness which presents a significant danger to those relying on the output to support strategic or tactical decision-making. For EVM, one of the main perceived weaknesses is its reliance on a key assumption, that future performance can be predicted based on past performance. Calculated performance measures (CPI, SPI, CV, SV etc) are used to predict forwards and estimate cost at completion or overall duration. Unfortunately there is no guarantee that the basic EVM assumption will be true, and it is likely that the future will deviate from that predicted by simply extrapolating from past performance. The strength of EVM lies in its rigorous examination of what has already occurred on the project, using quantitative metrics to evaluate project past performance. It goes on however to predict future performance by extrapolating from the past. But it is not possible to drive a car by only looking in the rear-view mirror. A forward view is also required, and this Is what RM offers. While project planning looks at the next steps which lie immediately ahead, RM has a horizon further into the future, It acts as forward-looking radar, scanning the uncertain and unclear future to identify potential dangers to be avoided, as well as seeking possible additional benefits to be captured. However this undoubted strength of being resolutely and exclusively future-focused is also one of the key weaknesses in RM. Any thing which occurred in the past is of little or no interest to the risk process, since there is no uncertainty associated with past events. RM starts with todays status quo and looks ahead. How the project reached its current position is not relevant to the risk process, unless one is seeking to learn lessons to assist RM on future projects. As a result RM as commonly implemented often lacks a meaningful context within which to interpret identified risks, since it has no means of capturing past performance and feeding this into the decision-making process. If EVM is weakened by assuming that future performance can be predicted from past performance, and if RM is weakened by looking only forwards with no real awareness of the past, a useful synergy might be obtained if a combined EVM-RM approach were able to address these weaknesses. Combining a rear-view mirror with forward-looking radar would use the strengths of complementary approaches to compensate for the weaknesses inherent in using each alone. Consequently it is possible to produce significant benefits by using RM to provide the forward view required by EVM, and by using EVM to provide the context required for RM. 3.3.4.2 Synergies from a Combined Approach Given the common aims of EVM and RM to examine and expose drivers of project performance in order to focus management attention on achievement of objectives, and given their differing perspectives towards the past and the future, a number of areas of possible synergy exist between the two techniques. The steps required to implement these synergies are [18]: Creating the baseline spend plan Predicting future outcomes Evaluating risk process effectiveness 1. Creating the baseline spend plan The foundation for EVM is the baseline plan of expected spend over time, creating the profile of â€Å"Budgeted Cost of Work Scheduled† (BCWS) or â€Å"Planned Value† (PV) against which project performance is measured. This baseline is derived from a costed and resourced project plan, including fixed and variable costs arising from financial and human resources. The BCWS profile is typically presented as a cumulative curve, or S-curve, as in Figure below. The baseline BCWS exists as the benchmark against which project performance will be measured. However one of the first things a project manager learns is that reality will never precisely match the project plan. As soon as work starts, there are variations in productivity, resource and information availability, delivery dates, material costs, scope etc. This is why a rigorous change control process is vital to successful project management. Although not all changes can be foreseen before the project starts, it is possible to assess the degree of uncertainty in a project plan, in both time and cost dimensions. This is the domain of RM. One of the first contributions that RM can make to EVM is to make explicit the consideration of uncertainty and risk when constructing the baseline BCWS. By undertaking a full risk assessment of the project plan before the project starts, addressing uncertainties in both time and cost, it is possible to evaluate the degree of risk in the baseline project plan. Quantitative risk analysis techniques are particularly useful for this, especially the use of Monte Carlo simulation on integrated models which include both time and cost uncertainty. These risk models take account of variability in planned values, also called â€Å"estimating uncertainty† (for example by replacing planned single-point estimates of duration or cost with three-point estimates or other distribution types), and they should also model the effect of discrete risks to reflect their assessed probability of occurrence and the subsequent impact on project time and/or cost. Both threats and opportunities should be addressed in the risk model, representing the possibility of exceeding or failing to meet the project plan. The results of the risk analysis allow the best case project outcome to be determined, representing the cheapest and. quickest way to reach project completion. Similarly a worst case profile can be produced, with highest cost and longest duration. All other possible outcomes are also calculated, allowing the â€Å"expected outcome† within this range to be identified. These can be shown as a set of three related S-curves, as in Figure below, which take account of both estimating uncertainty (variability in planned events) and discrete risks (both positive opportunities and negative threats). The ellipse at the end of the curves represents all possible calculated projects outcomes (90% confidence limit), with the top-right value showing worst-case (highest cost, longest schedule), the bottom-left giving best-case (cheapest and Quickest), and the centre of gravity of the ellipse being at the expected outcome of project cost and duration. The existence of this set of possible project outcomes raises the question of where the baseline spends profile for EVM should be set. The recommendation from a combined approach to EVM and RM is to use the expected value cumulative profile from a quantitative time-cost risk analysis as the baseline for BCWS. In other words, the central S-curve in Figure 2 would be used as the baseline instead of the S-curve in Figure 1. This ensures that the EVM baseline fully reflects the risk associated with the project plan (including an appropriate amount for contingency which is automatically incorporated in the risk analysis results), rather than measuring performance against the raw â€Å"all-goes-to-plan† plan. 2. Predicting future outcomes Both EVM and RM attempt to predict the future outcome of the project, based on information currently known about the project. For EVM this is achieved using calculated performance indices, with a range of formulae in use for calculating Estimate At Completion (EAC). Most of these formulae start with the Actual Cost of Work Performed to date (ACWP, or Actual Cost AC), and add the remaining budget adjusted to take account of performance to date (usually using the Cost Performance Index CPI, or using a combined Performance Efficiency Factor based on both CPI and SPI). These calculations of the Estimate To Complete (ETC) are used to extrapolate the ACWP plot for the remainder of the project to estimate where the project might finally end (EAC), as shown In Figure 3 below. RM predicts a range of possible futures by analyzing the combined effect of known risks and unknown uncertainty on the remainder of the project. When an integrated time-cost risk model is used, the result is a set of S-curves similar to Figure 2, but covering the uncompleted portion of the project, as In Figure 4. It is also possible to use risk nalysis results to show the effect of specific risks(threats or opportunities) on project performance as measured by earned value. Since the risk analysis includes both estimating uncertainty discrete risks, the model can be used to perform â€Å"what-if† scenario analysis showing the effect of addressing particular risks. 3. Evaluating risk process effectiveness A risk can be defined as â€Å"any uncertainty that, if it occurs, would have a positive or negative effect on achievement of one or more project objectives†. RM aims to address this uncertainty proactively in order to ensure that project objectives are achieved, including completing on time and within budget. As a result, if RM is fully effective, actual project performance should closely match the plan. Since EVM performance indices (CPI, SPI) measure deviation from plan, they can be used to indicate whether the risk process is being effective in addressing uncertainty and controlling its effects on project performance. If CPI and/or SPI are below 1.0 indicating that project performance is falling short of the plan, then one of the most likely underlying causes is that the risk process is failing to keep the project on course. An Ineffective risk process would fail to avoid adverse risks (threats) proactively, and when threats materialize into problems the project incurs delay and/or additional cost. Either the risk process is not identifying the threats, or it is not preventing them from occurring. In this situation, management attention should be directed to the risk process, to review its effectiveness and consider whether additional resources are required, or whether different techniques should be used. Conversely, if CPI and/or SPI are above 1.0 indicating that project performance is ahead of plan, the risk process should be focused on exploiting the opportunities created by this situation. Best-practice RM addresses both threats and opportunities, seeking to minimize threats and maximize opportunities. When EVM indicates that opportunities exist, the risk process should explore options to capture them and create additional benefits for the project. It should also be noted that if CPI and/or SPI far exceed 1.0, this may indicate other problems in the project and may not simply be due to the existence of opportunities. Typically, if actual performance is much greater than expected or planned, this could indicate poor planning or incorrect scoping when setting up the initial baseline plan. If this highly anomalous behavior continues, a baseline re-planning effort should be considered, which of course will involve the need for further risk management. Similarly if CPI and/or SPI are well below 1.0, this may not simply be due to the impact of unmanaged threats, but may indicate problems with the baseline plan or scope. Figure 5 illustrates the relationship between the values of EVM indices (CPI and/or SPI) and RM process effectiveness. The key to using EVM indices as indicators of RM effectiveness is to determine appropriate thresholds where action is required to refocus the risk process. Clearly some variation of EVM indices is to be expected as the project unfolds, and it would not be wise to modify the risk process in response to every small change in CPI /or SPI. However if a trend develops crosses the thresholds of â€Å"common variance†, action should be considered. Figure 6 illustrate this, with the thresholds of â€Å"common variance† for CPI /or SPI set at = 0.9 and =1.25. A further â€Å"warning threshold† is set at 0.75, suggesting that an adverse trend is developing and preparatory steps should be taken. The thresholds of 0.75, 0.9 and 1.25 used in Figure 6 are illustrative only, and organizations may be able to determine more appropriate threshold values by reviewing historical trend data for CPl and SPI, and identifying the limits of â€Å"common variance† for their projects. Plotting the trend of CPI and SPI over time against such thresholds also gives useful information on the type of risk exposure faced by the project at any given point. For example Figure 6 Indicates that the project schedule is under pressure (SPI trend is consistently below 1.0), suggesting that the risk process should focus on addressing sources of time risk. The figure also suggests that cost savings are possible which might create opportunities that can be exploited, and the risk process might be able to maximize these. These recommended action types are illustrated in Figure 7, corresponding to the following four situations: Both CPI and SPI high (top-right quadrant), creating opportunities to be captured Both CPI and SPI low (bottom-left quadrant), requiring aggressive action to address threats High SPI but low CPI (top-left quadrant), requiring focused attention to cost risk, with the possibility of spending additional time to address High CPI but low SPI (bottom-right quadrant), where attention should be paid to addressing schedule risk, and cost trade-offs can be considered Figure 7 also suggests that if either CPI or SPI (or both) remain abnormally high or low, the baseline plan should be re-examined to determine whether the initial scope was correct or whether underlying planning assumptions were unfounded. It is important to note that these action types should be viewed only as 1st options, since other considerations may lead to different actions. For example in projects with high schedule-constraints (e.g. product launch, event management etc), the trade-off between time cost may be prioritized differently than in cost-constrained projects. 3.3.4.3 Discussion Both Earned Value Management (EVM) and Risk Management (RM) seek to improve decision-making by providing a rational framework based on project performance. EVM examines past performance against clearly-defined quantitative metrics, and uses these to predict the future outcome for the project. RM looks ahead to identify and assess uncertainties with the potential to affect project performance either positively or negatively, and develops responses to address each risk proactively. Both techniques share a focus on project performance, and have the same purpose of developing effective actions to correct unwelcome trends in order to maximize the Likelihood of achieving project objectives. One (EVM) does this by looking back at past performance as an indicator of likely future performance. The other (RM) looks ahead at possible influences on future project outcomes. These two approaches are not in conflict or mutually exclusive. Indeed their commonalities imply a powerful synergy, which i s available through combining the complementary strengths of each technique and using insights from one to inform the application of the other (as summarized in Table 5). 1. Creating the baseline spend plan (BCWS/PV) Develop costed WBS to describe scope of work, without hidden contingency Produce fully costed and resourced project schedule Assess estimating uncertainty associated with initial time/cost estimates Perform risk identification, risk assessment and response development Quantify time and cost risk exposure for each risk, taking account of the effect of agreed responses Create integrated time/cost risk model from project schedule, reflecting both estimating uncertainty (via 3-point estimates) Select risk-based profile as baseline spend profile (BCWS/PV); it is most common to use the â€Å"expected values†, although some other confidence level may be selected (say 80%) 2. Predicting future outcomes (EAC) Record project progress and actual cost spent to date (ACWP), and calculate earned value (BCWP) Review initial time/cost estimates for activities not completed, to identify changes, including revised estimating uncertainty Update risk identification, assessment and quantification, to identify new risks and reassess existing risks Update integrated time/cost risk mode! with revised values for estimating uncertainty and discrete risks, taking account of progress to date and agreed risk responses Select risk-based calculation as estimate of final project duration and cost (EAC), using either â€Å"expected values†, or some other confidence level (say 80%) Use risk-based profile as updated expected spend from time-now to project completion 3. Evaluating risk management process effectiveness Determine threshold values for CPI and SPI to trigger corrective action in risk process (or use default values of 0.75, 0.90 and 1.25) Calculate earned value performance indices (CPI and SPI), plot trends and compare with thresholds Consider modifications to risk process if CPI and/or SPI cross thresholds, enhancing the process to tackle opportunities more effectively if CPI and/or SPI are high, or refocusing the process on threat reduction if they are low Take appropriate action either to exploit opportunities (high CPI/SPI), address threats (low CPI/SPI), spend contingency to recover time (high CPI/low SPI), or spend time to reduce cost drivers (high SPI/low CPI) Consider need to review initial baseline, project plan or scope if CPI and/or SPI persistently have unusually high or low value Table-5: Summary of steps to integrate EVM and RM http://support.sas.com/documentation/cdl/en/orpmug/59678/HTML/default/evm_sect3.htm http://www.tech-archive.net/Archive/Project/microsoft.public.project/2007-05/msg00594.html http://www.allpm.com/index.php?name=Newsfile=articlesid=2184 http://www.allpm.com/index.php?name=Newsfile=articlesid=2184theme=Printer http://www.freepatentsonline.com/4424121.html http://www.ustreas.gov/tigta/auditreports/reports/094602fr.html http://www.ustreas.gov/tigta/auditreports/reports/094602fr.html http://www.dcma.mil/communicator/spring_summer04/evm.cfm http://www.parm.com/index.php?option=com_contenttask=viewid=171Itemid=35 http://www.parm.com/index.php?option=com_contenttask=viewid=177Itemid=35 http://www.scribd.com/doc/4614499/Project-Performance-Measurement http://www.baz.com/kjordan/swse625/htm/tp-py.htm http://guidebook.dcma.mil/79/evhelp/what.htm http://www.acq.osd.mil/pm/faqs/evbasics.htm http://commdocs.house.gov/committees/bank/hba57680.000/hba57680_0.HTM http://www.allbusiness.com/management/risk-management/8945762-1.html http://www.parm.com/index.php?option=com_contenttask=viewid=171Itemid=35 http://www.bcs.org/server.php?show=ConWebDoc.5912 http://www.plannerlife.info/2007/07/what-is-earned-value.html http://evm.nasa.gov/tutoriala.html Earned Value Management (EVM) Tutorial http://glossary.tenrox.com/earned-value.htm http://support.sas.com/documentation/cdl/en/orpmug/59678/HTML/default/cpm_sect42.htm http://www.ombudsman.forces.gc.ca/rep-rap/sr-rs/sf-ts/rep-rap-02-eng.asp http://www.freepatentsonline.com/6006060.html http://www.pmi.org/Search/GenieRedirector.aspx?genieID=6685iss=1 http://www.pmi-cpm.org/pages/events/IPM06/Practice_Symposia.html http://edgar.sec.gov/about/oig/audit/337fin.htm http://www.scribd.com/doc/4614499/Project-Performance-Measurement http://www.acq.osd.mil/pm/faqs/evbasics.htm http://www.baz.com/kjordan/swse625/htm/tp-py.htm http://www.parm.com/index.php?option=com_contenttask=viewid=177Itemid=35 http://www.dcma.mil/communicator/spring_summer04/evm.cfm http://guidebook.dcma.mil/79/evhelp/what.htm

Camel Advertisements :: essays research papers

Camel Advertisements   Ã‚  Ã‚  Ã‚  Ã‚  It’s no big secret, the producers of the Jerry Springer talk show knew exactly what would happen when they put the Ku Klux Klan and the Black Panther Party on the same stage. The two groups started fighting and much of the nation tuned in to watch it. In the same manner, Camel Cigarettes Company released an advertisement that parodied that kind of TV program. The advertisement, titled â€Å"Bizarre Bigfoot Love Triangle,† shows the kind of scene that would be typical in a Jerry Springer episode. The characters consist of Bigfoot in the middle, two women fighting with bouncers attempting to hold them back, a host who pretends to look confused, and a cheering audience. â€Å"viewer discretion advised† label that is put on Camel advertisements. This is also a parody in itself of the new rating system that has evolved for TV, movies, and music recently. One of the abbreviations listed is BR which stands for â€Å"Big Ratings,† another comme nt that applies to Jerry Springer.   Ã‚  Ã‚  Ã‚  Ã‚  Anybody who has seen â€Å"Jerry Springer† knows the true reaction of most of the audience. Many people think that the show is funny, outrageous, and sometimes obscene. Sometimes, it is even considered comical, and that is what this ad is doing; it is appealing to people who are familiar with Jerry Springer and his show. When people see this ad they immediately think about the show, and that is what makes it work. It has little to do with the cigarettes; and except for the fact that Sasquatch is smoking one, there is no relation between the Jerry Springer show and the experience of smoking Camel cigarettes. There just isn’t a correlation. One thing it could be implying, however, is that if one smokes Camel cigarettes, that person will have scantily clad women fighting over him.   Ã‚  Ã‚  Ã‚  Ã‚  As for the target audience, it is directed primarily at men who like to watch or see stuff like the Jerry Springer show. In reality, this includes the age group that are younger than 18. In fact, this age group is indeed a big part of the target audience whether or not cigarette companies would like to admit. Many teens like Springer’s show and since this ad is similar to that, it causes the reader to be amused. In a way, this amusement causes the reader to not think about all the negative aspects of smoking.

Food Log Analysis Essay

5 day food analysis During the 5 day span I met the calorie requirement of 2850 in daily food intake due to my high activity level. I pretty much had a balanced diet in terms of having each food group represented in my daily intake. I plan on to keeping my muscle mass, so I pretty much had a diet plan before. But going through the calorie tracker in the website made me realize that I was eating too much junk food than intended. It really didn’t have any adverse on my physique due to my early mentioned level of activity but by cutting down on my junk food intake for the week I was recording this log I was able to enjoy good wholesome food, without spending a lot of money in college cafeteria. Not only was I able to do this I was able to feel the effect of having healthy food in my daily workouts. I was more energized to do work and felt the energy throughout the day. I did not need coffee or any other types of energy drink to keep me going through the day. I also was able to watch and track how much of what I was eating during this time period. I usually overeat on the food groups such as meat and fruits while skipping vegetable and grains that are needed for a balanced body. Now I made sure that everything was in proportion and also introduced new foods my daily routine. I plan on to implementing the above mentioned findings on to my diet from now on so that I could avoid the mistakes that I used to commit before.

Imaging System Division Essay

3 of them were: * Imaging System Division (ISD) sold ultrasound and magnetic imaging system * Heidelberg Division (Heidelberg) sold high resolution monitors, graphics controllers and display subsystems 50% served ISD, 50% outside customer * Electronic Component Division (ECD) sold application specific integrated circuits and subassemblies. It was established as a captive supplier to other Zumwald divisions but now served outsider also * Total revenue â‚ ¬ 3 billion * Highly decentralized basis management * Division performance indicators were achievement of budgeted target Return on Invested Capital (ROIC) and sales growth * Partially vertical integrated * Each division allowed to outsource the component Imaging System Division (ISD) is going to launch new product namely X73 The characteristic of X73 was as follow: * It was a new ultrasound Imaging system * The product was faster, cheaper and more compact * Design was supported by Heidelberd division’s engineers at full cost of time compensation. To get a best price for its component, ISD did a bidding which involved Heidelberg. Unfortunately Heidelberg bidding price was much higher than outsider company, therefore ISD decided to buy from Display Technology Plc Here is the bidding: Supplier | Cost per X73 System (â‚ ¬) | Heidelberg Division | 140,000 | Bogardus NV | 120,000 | Display Technologies Plc | 100,500 | The decision triggered a dispute since Heidleberg felt that ISD did not show a team work in this case. 1. What sourcing decision for the X73 materials is in the best interest of a. The Imaging Systems Division? Base on the pricing structure X73 below are the calculation of Contribution Margin base on each suppliers’ bidding price: Item| Bidding Supplier| | Heidelberd| Bogardus| Display Tech| Price X 73| 340,000 | 340,000 | 340,000 | | | | | Direct Material| 140,000 | 120,000 | 100,500 | Other Component| 72,000 | 72,000 | 72,000 | Conversion cost| | | | Variable overhead| 27,000 | 27,000 | 27,000 | Fixed cost| 117,000 | 117,000 | 117,000 | | | | | Total cost| 356,000 | 336,000 | 316,500 | | | | | Profit Margin| (16,000)| 4,000 | 23,500 | In this case Display Tech is the best sourcing for ISD since by pricing at 340,000 per unit of X73, ISD would get highest profit compared to other offers. Heidelberg offered its standard price to ISD which would give ISD negative profit. b. The Heidelberg Division? In bidding, Heidelberg has to estimate how its competitors bid prices would be before determining its price. Hiedelber has to put only relevant cost plus a certain markup for profit to win. Bidding is a close price offer and the ethic is clear that there should be no more negotiation after the price opened. The proper price bidding for X 73 Heidelberg offers should be as follow: Item| Heidelberg| | Current Bid| Competitive Bid| Direct Material| 21,600 | 21,600 | | | | Conversion cost| | | Variable overhead| 28,400 | 28,400 | Fixed cost| 55,000 | | | | | Total cost| 105,000 | 50,000 | | | | Markup (33%)| 35,000 | 16,500 | | | | Price to Offer| 140,000 | 66,500 | Fixed cost which consisted of labor cost was not relevant cost for the bidding price since even Heidelberg awarded for X73 or not, Heidelberg should pay it anyway. As its capacity currently was 70%, there was no opportunity cost to be added. Therefore the actual lower bound Heidelberg could offer was â‚ ¬ 50,000. However that price would give zero profit to Heidelberg. To make the profit positive, Heidelberd could do some markup (eg. 33%). This profit was beneficial for Heidelberg to cover some fixed cost. c. The Electronic Components Division? ECD has been set as internal supplier whose pricing has been standardized to that purpose. with 20% marked up from Absorption cost. This was actually the proper transfer pricing for the company in supplying to other division. Item| ECD Current| | | Manufacturing cost | 18,000 | | | Profit Margin (20%) | 3,600 | | | Price Component for X 73 | 21,600 | | | d. Zumwald AG? Since Display Tech was the one who win bidding, from the launching of X73, Zumwald would get profit only from ISD Division amounting of â‚ ¬ 23,500, as describe on the Calculation below Item| Supplier | | Display Tech| Price X 73| 340,000 | | | Direct Material| 100,500 | Other Component| 72,000 | Conversion cost| | Variable overhead| 27,000 | Fixed cost| 117,000 | | | Total cost| 316,500 | | | Profit Margin| 23,500 | There are 2 more calculation scenario we could add if Heidelberg win the bid: 1. Heidelberg and ECD with current price offer Item| ISD| Heidelberg| ECD| Total| | | | | | Price X 73 & component| 340,000| 140,000| 21,600| | | | | | | Direct Material| 140,000| 21,600| | 161,600| Other Component| 72,000| | | 72,000| Conversion cost| | | 18,000| 18,000| Variable overhead| 27,000| 28,400| | 55,400| Fixed cost| 117,000| | | 117,000| | | | | | Total cost| 356,000| 50,000| 18,000| 424,000| | | | | | Profit Margin| (16,000)| 90,000| 3,600| 77,600| 2. Heidelberg & EDC with Transfer price, Price X73 = â‚ ¬ 340,000 Item| ISD| Heidelberg| ECD| Total| | | | | | Price X 73 & component| 340,000 | 66,500 | 21,600 | | | | | | | Direct Material| 66,500 | 21,600 | | 88,100 | Other Component| 72,000 | | | 72,000 | Conversion cost| | | | – | Variable overhead| 27,000 | 28,400 | | 55,400 | Fixed cost| 117,000 | | | 117,000 | | | | | | Total cost| 282,500 | 50,000 | 18,000 | 350,500 | | | | | | Profit Margin| 57,500 | 16,500 | 3,600 | 77,600 | Analysis: 1. For Zumwald AG it was important for Hedielberg to win the bidding, since it would generate more profit either Heidelberg offered current price or transfer price, 2. With first scenario ISD division would suffer for a â‚ ¬16,000 lost 3. If Display Tech win, Zumwald would lost â‚ ¬ 54,100 (â‚ ¬77,600 – 23,500) profit 4. The first scenario it looked ISD would be the loser but in second scenario ISD would generate biger profit (assuming X73 would be priced at â‚ ¬ 340,000) 5. With the second scenario, ISD actually could review the X73’s price it’s, since the transfer cost allowed ISD to lower the price so that X73 could better compete in the market 6. Vertical integration rules should be set up and applied in Zumwald AG 2. What should Mr. Fettinger do regarding the X73 sourcing issue? Considering some factors as mentioned below: a. ICD has announced Display Tech as the winner. b. There was a decentralized policy among the division that Fettinger has to be respect for c. Credibility issue of the company in the eyes of outside suppliers if Fettinger intervene in this case by changing the decision and winning Heidelberg Mr Fettinger should let ICD to source its X73 component to Display Tech as the winner. It could become a learning for him and management. However this consideration should not base on the amount of the business which was estimated to be small, because in my opinion for a competitive product such as X73, pricing was one of important part to success. If ICD could get any better price from other division, ICD may consider a lower price to the market X73 and the revenue may be double or triple. Then Mr Fettinger has to gather his division heads with a standard policy on transfer price among the divisions. 3. Can a system be designed to motivate each of Zumwald’s division managing directors to take actions that are not only in the interest of their division but also in the best interest of Zumwald? Explain. It can. The Top Management should set a TRANSFER PRICES for internally transferred goods. However in decentralized organization such as Zumwald AG, the managing directors and his teams often have considerable autonomy in deciding whether to accept or reject orders or whether to buy inputs from inside the organization or from outside. Therefore the transfer pricing rule should promote a GOAL CONGRUENCE among the managing directors involved in the transfer Please refer to the schematic below: Top Management Zumwald AG ECD Heidelberg ISD Components transferred at a transfer price Components transferred at a transfer price Assuming the transfer price is made, the transfer price will not affect the company’s overall profit, however it does affect the profit associated with each division. As a consequence, the trasnfer pricing policy can affect the decisions of autonomous managing directors who are deciding whether to make the transfer Purchase of productive inputs from vendors outside the organization Sales of finished goods to customers outside the organization Top Management Zumwald AG ECD Heidelberg ISD Components transferred at a transfer price Components transferred at a transfer price Assuming the transfer price is made, the transfer price will not affect the company’s overall profit, however it does affect the profit associated with each division. As a consequence, the trasnfer pricing policy can affect the decisions of autonomous managing directors who are deciding whether to make the transfer Purchase of productive inputs from vendors outside the organization Sales of finished goods to customers outside the organization There are general rules that will promote Goal congruence which are divided into scenario: 1. No excess capacity The transfer price = Outlay cost + Opportunity cost Outlay cost : standard variable production cost Opportunity cost : forgone contribution margin from the lost sales Goal congruence maintain because the selling company transfer its product to another division at equal price as if it sells to external customers. The buyer division just needs to pay for the above relevant costs. While Zumwald AG as the holding company would get benefit from both. 2. With Excess Capacity Transfer price= Outlay costs (no opportunity cost to add) Outlay cost : standard variable production cost General congruence: * The seller will get zero contribution since it sells the product at its outlay cost, to make it goal congruence it is advisable to allow the seller to add a markup to this lower bound in order to provide a positive contribution margin * The buyer will get price at outlay costs which allow it to price lower to compete the market * The Holding company off course would get more beneficial since the both division could get profit. In this case if the transfer price policy applied among Zumwald AG’s divisions, actually the bidding is only away to compare or there is no need to do bidding at all. Heidelberg should use the above formula plus a reasonable markup to get a positive contribution margin, therefore ISD will launch X73 on its price with sufficient profit which then beneficial to Zumwald AD as the holding company. General Transfer Pricing rule provide a good conceptual model for the managerial accountant to use in setting transfer prices and in most cases it is implementab le. However when the general rule cannot be implemented, it is advisable to use a transfer price based on market price, costs or negotiation.