WALL FOCUS - 124

(News collection for Management studies)

Volume: 02           Issue: 124         27-November, 2010 – Saturday   Pages:15

Focus on Zero based Budgeting for new periods
ZERO-BASED BUDGETING - (Contributed by G.Priyadarshini,09D61E0008)

A method of budgeting in which all expenses must be justified for each new period

The budgeting process is an essential component of management control systems and has been an effective system by which management can successfully plan, coordinate, and control. The process involves the creation and implementation of the broad objectives of an organization, the detailed objectives, and a short-term and long-term financial plan. The philosophy and procedures used to implement zero-base budgeting in industry and government settings are quite similar, only slightly differing with the  basic process of zero-based budgeting is to justify budget requests every budgeting cycle, regardless of prior period budgets. The following sections address the specifics including the history, implementation, drawbacks and solutions, and behavioral impacts

HISTORY OF ZERO-BASED BUDETING

Government budgeting was established in Great Britain in the late 17th century. The enactment of the 1689 Bill of Rights gave taxing authority to Parliament as opposed to the King. Parliament gradually established spending programs and by the 1820s published detailed annual financial statements showing revenues and expenditures and a projected surplus or deficit. The usage of budgets by the United States government did not begin until 1800 when a law was passed for the Secretary of the Treasury to submit an annual financial report to Congress. This action was not taken by the Treasury department, and instead, federal government agencies developed their own reports and Several attempts were made in the early 1900s to implement federal budgeting and financial management, but each failed, even though 44 individual states had already passed laws concerning budgets. Congress passed the Budgeting and Accounting Act in 1921 along with the creation of a centralized Bureau of the Budget. Although created in 1921, it was not until the mid-1940s that the federal budget included identification of the major goals and program objectives, a systematic analysis of supplies and needs for both military and civilian purposes, and a long-range plan of projects. In the 1960s, the Planning-Programming-Budgeting System (PPBS) was adopted by President Lyndon B.

Johnson to be implemented throughout the federal government.

The PPBS was short-lived, however. In the 1970s, every federal department except for the Defense Department abandoned the system. The concept of zero-based budgeting gained notoriety in 1977 when President Jimmy Carter announced he was introducing zero-based budgeting into the federal budgeting process. The term, "zero-based budgeting," and the techniques for carrying out these budgeting processes had been previously introduced in an article written by Peter A. Pyhrr in the Harvard Business Review in 1970, but former President Carter adopted this method at the federal level, President Carter, while still governor of Georgia in 1973, contracted with Pyhrr to implement the system for the entire executive budget recommendations for the state of Georgia. However, when the system was applied to governmental budgeting, it failed due to the great amount of effort and time required development and implementation.

With further refinement, however, zero-based budgeting was largely hailed as a success Early business budgets focused on controlling costs and little emphasis on measuring effectiveness. In the early 1900s, the use of budgets increased due to the necessity for industries to implement more careful factory planning. A systematic plan of budgeting arose from two areas: industrial engineering and cost accounting. Scientific methods were used by industrial engineers to arrive at production standards, which could then be used to estimate future operations and performance standards. Cost accountants used budgeting to establish standard costs and to estimate future expected costs in a budgetary form. Also at this time, texts on budgeting and managerial accounting began.

As zero-based budgeting gained traction in the 1970s among public budgeting

constituents, it also gained popularity among private enterprises, and during this

time a number of organizations modified and implemented the system. An example

of an organization successfully implementing this system is the Florida Power and

Light Company. In 1977 zero-based budgeting became required for all Florida Power and Light general office staff departments. Ben Dady, the company's director of management control, favored the system because when managers develop the zero- based budget, they begin with nothing in terms of budgeted dollars, and have to justify or prove why they need to spend money on each activity or project for all the dollars they expect to spend. New and old problems are treated equally. Every managerial activity is properly identified and then evaluated by analyzing more efficient ways and alternative levels of performing the same activity. These alternatives are then ranked.

The publicity in the 1970s surrounding zero-based budgeting gave the impression that the system was a relatively new technique, although the system was not new at all.

Zero-based budgeting is quite similar to the Planning-Programming-Budgeting system, implemented in the 1960s. Both systems involve evaluating the inputs and outputs for specific activities, as opposed to the traditional line-item format.

IMPLEMENTATION OF ZERO-BASED BUDGETING

The zero-based budgeting system puts the burden of proof on the manager, and

demands that each manager justify the entire budget in detail and prove why he or she should spend the organization's money in the manner proposed. A "decision package" must be developed by each manager for every project or activity, which includes an analysis of cost, purpose, alternative courses of action, measures of performance, consequences of not performing the activity, and the benefits.

This approach is different than traditional budgeting techniques due to the analysis of alternatives. Managers must identify alternative methods of performing each activity first, such as evaluating the costs and benefits of making a project or outsourcing it, or centralizing versus decentralizing operations. In addition, managers must identify different levels for performing each alternative method of the proposed activity. This means establishing a minimum level of spending, often 75 percent of the current operating level, and then developing separate decision packages that include the costs and benefits of additional levels of spending for that particular activity. The different levels allow managers to consider and evaluate a level of spending lower than the current operating level, giving decision-makers the choice of eliminating an activity or the ability to choose from a selection of levels of effort including tradeoffs and shifts in The decision packages must be ranked in order of importance once they have been created. This allows each manager to identify priorities, combine decision packages for old and new projects into one ranking, and allows top management to evaluate and compare the needs of individual units or divisions to make funding allocations. In this respect, zero-based budgeting is quite different than traditional rolling budgets.

Rolling budgets often appeal to people who prepare budgets because they make budget development much easier. Managers can add an inflation factor to the previous year's budget and then include any adjustments for major changes. Rolling budgets also give management a concrete number to help make comparisons from year to year.

However, traditional rolling budgets have a tendency to create conflict; they can create an incentive to spend money carelessly in order to justify the next year's budget. They can also create inefficient operations due to the fact that individual departments or units do not have to justify expenditures based on operations, but only on the prior year's Zero-based budgeting addresses such problems that can occur with traditional rolling budgets. In zero-based budgeting, each dollar spent by management must be justified with a detailed account of what will be purchased, how many labor hours are needed, what problems will be faced, and so forth. This allows management an opportunity to review operations in depth and make recommendations for changes to if necessary. The zero-based budgeting process helps managers identify redundancies and duplications among different departments, concentrating on the dollars needed for proposed programs as opposed to percentage increases or decreases form the previous year.

Specific priorities of departments and divisions are identified more easily in zero-based budgeting. The process also allows for the comparability of different departments as to the respective priorities funded. Zero-base budgeting enables a performance audit to determine whether each project or activity has been performed as efficiently as planned.

ZERO-BASED BUDGETING DRAWBACKS AND SOLUTIONS

One drawback to zero-based budgeting is cost in terms of managerial time; it takes

a considerable amount of time to go through the process of reviewing operations in

enough detail to justify costs each budget cycle without relying on past expenditures.

One solution to this problem is to create a rolling budget every year and perform a

zero-based budget every three to five years, or when a major change occurs within the operation. This allows an organization to benefit from the advantages of zero-based budgeting without an excessive amount of work. Likewise, traditional rolling budgets should never strictly rely on a prior-year budget plus a percentage; consideration should always be given to past numbers. In some cases, a zero-based budget may rely on some prior numbers where it is overwhelming to create a budget from scratch. Ultimately, the process gives top management the opportunity to judge the performance of managers in terms of allocating resources efficiently and effectively, and gives managers more.

An organization should not feel that all budgets must be developed in entirely the

same manner. Some departments can utilize an in-depth study of a zero-based budget while others can use a rolling budget. This is a way to spread the extensive work over a number of years instead of concentrating on one certain year. Many organizations have implemented the system in some form or another and found that it did not work.

If properly implemented, however, the process could have a considerable improvement over traditional rolling budgets. The number and nature of decision packages varies from organization to organization; it is not uncommon for large organizations to identify several thousand packages. Furthermore, it is often hard or even impossible for top executives to have the necessary knowledge or time to develop and rank priorities for To alleviate this problem, managers, after ranking their own packages, can have their top executives rank the packages of all the managers that report to them. This approach is used by one of zero-based budgeting's pioneers, Texas Instruments.

Another solution is for each level of management to rank a certain percentage of packages within its own area of responsibility. In this solution, the first level of management may rank 40 percent of the proposed packages; the next level may rank the next 40 percent of packages, while top management may concentrate on the remainder of the budget.

SPECIAL FOCUS

Human Recourses – Personal Interviews
50 COMMON INTERVIEW Q&A  ( Contributed by K.Mounica, 09D61E0030)

1.         Tell me about yourself:
The most often asked question in interviews. You need to have a short
statement prepared in your mind. Be careful that it does not sound
rehearsed. Limit it to work-related items unless instructed otherwise.
Talk about things you have done and jobs you have held that relate to
the position you are interviewing for. Start with the item farthest
back and work up to the present.

2.         Why did you leave your last job?
Stay positive regardless of the circumstances. Never refer to a major
problem with management and never speak ill of supervisors, co-workers
or the organization. If you do, you will be the one looking bad. Keep
smiling and talk about leaving for a positive reason such as an
opportunity, a chance to do something special or other forward-looking
reasons.

3.         What experience do you have in this field?
Speak about specifics that relate to the position you are applying for.
If you do not have specific experience, get as close as you can.

4.         Do you consider yourself successful?
You should always answer yes and briefly explain why. A good
explanation is that you have set goals, and you have met some and are
on track to achieve the others.

5.         What do co-workers say about you?
Be prepared with a quote or two from co-workers. Either a specific
statement or a paraphrase will work.

6.         What do you know about this organization?
This question is one reason to do some research on the organization
before the interview. Find out where they have been and where they are
going. What are the current issues and who are the major players?

7.         What have you done to improve your knowledge in the last year?
Try to include improvement activities that relate to the job. A wide
variety of activities can be mentioned as positive self-improvement.
Have some good ones handy to mention.

8.         Are you applying for other jobs?
Be honest but do not spend a lot of time in this area. Keep the focus
on this job and what you can do for this organization. Anything else is
a distraction.

9.         Why do you want to work for this organization?
This may take some thought and certainly, should be based on the
research you have done on the organization. Sincerity is extremely
important here and will easily be sensed. Relate it to your long-term
career goals.

10.       Do you know anyone who works for us?
Be aware of the policy on relatives working for the organization. This
can affect your answer even though they asked about friends not
relatives. Be careful to mention a friend only if they are well thought
of.

11.       What kind of salary do you need?
A loaded question. A nasty little game that you will probably lose if
you answer first. So, do not answer it. Instead, say something like,
That’s a tough question. Can you tell me the range for this position?
In most cases, the interviewer, taken off guard, will tell you. If not,
say that it can depend on the details of the job. Then give a wide
range.

12.       Are you a team player?
You are, of course, a team player. Be sure to have examples ready.
Specifics that show you often perform for the good of the team rather
than for yourself are good evidence of your team attitude. Do not brag,
just say it in a matter-of-fact tone. This is a key point.

13.       How long would you expect to work for us if hired?
Specifics here are not good. Something like this should work: I’d like
it to be a long time. Or As long as we both feel I’m doing a good job.

14.       Have you ever had to fire anyone? How did you feel about that?
This is serious. Do not make light of it or in any way seem like you
like to fire people. At the same time, you will do it when it is the
right thing to do. When it comes to the organization versus the
individual who has created a harmful situation, you will protect the
organization. Remember firing is not the same as layoff or reduction in
force.

15.       What is your philosophy towards work?
The interviewer is not looking for a long or flowery dissertation here.
Do you have strong feelings that the job gets done? Yes. That’s the
type of answer that works best here. Short and positive, showing a
benefit to the organization.

16.       If you had enough money to retire right now, would you?
Answer yes if you would. But since you need to work, this is the type
of work you prefer. Do not say yes if you do not mean it.

17.       Have you ever been asked to leave a position?
If you have not, say no. If you have, be honest, brief and avoid saying
negative things about the people or organization involved.

18.       Explain how you would be an asset to this organization
You should be anxious for this question. It gives you a chance to
highlight your best points as they relate to the position being
discussed. Give a little advance thought to this relationship.

19.       Why should we hire you?
Point out how your assets meet what the organization needs. Do not
mention any other candidates to make a comparison.

20.       Tell me about a suggestion you have made
Have a good one ready. Be sure and use a suggestion that was accepted
and was then considered successful. One related to the type of work
applied for is a real plus.

21.       What irritates you about co-workers?
This is a trap question. Think real hard but fail to come up with
anything that irritates you. A short statement that you seem to get
along with folks is great.

22.       What is your greatest strength?
Numerous answers are good, just stay positive. A few good examples:
Your ability to prioritize, Your problem-solving skills, Your ability
to work under pressure, Your ability to focus on projects, Your
professional expertise, Your leadership skills, Your positive attitude

23.       Tell me about your dream job.
Stay away from a specific job. You cannot win. If you say the job you
are contending for is it, you strain credibility. If you say another
job is it, you plant the suspicion that you will be dissatisfied with
this position if hired. The best is to stay genetic and say something
like: A job where I love the work, like the people, can contribute and
can’t wait to get to work.

24.       Why do you think you would do well at this job?
Give several reasons and include skills, experience and interest.

25.       What are you looking for in a job?
See answer # 23

26.       What kind of person would you refuse to work with?
Do not be trivial. It would take disloyalty to the organization,
violence or lawbreaking to get you to object. Minor objections will
label you as a whiner.

27.       What is more important to you: the money or the work?
Money is always important, but the work is the most important. There is
no better answer.

28.       What would your previous supervisor say your strongest point is?
There are numerous good possibilities:
Loyalty, Energy, Positive attitude, Leadership, Team player, Expertise,
Initiative, Patience, Hard work, Creativity, Problem solver

29.       Tell me about a problem you had with a supervisor
Biggest trap of all. This is a test to see if you will speak ill of
your boss. If you fall for it and tell about a problem with a former
boss, you may well below the interview right there. Stay positive and
develop a poor memory about any trouble with a supervisor.

30.       What has disappointed you about a job?
Don’t get trivial or negative. Safe areas are few but can include:
Not enough of a challenge. You were laid off in a reduction Company did
not win a contract, which would have given you more responsibility.

31.       Tell me about your ability to work under pressure.
You may say that you thrive under certain types of pressure. Give an
example that relates to the type of position applied for.

32.       Do your skills match this job or another job more closely?
Probably this one. Do not give fuel to the suspicion that you may want
another job more than this one.

33.       What motivates you to do your best on the job?
This is a personal trait that only you can say, but good examples are:
Challenge, Achievement, Recognition

34.       Are you willing to work overtime? Nights? Weekends?
This is up to you. Be totally honest.

35.       How would you know you were successful on this job?
Several ways are good measures:
You set high standards for yourself and meet them. Your outcomes are a
success.Your boss tell you that you are successful

36.       Would you be willing to relocate if required?
You should be clear on this with your family prior to the interview if
you think there is a chance it may come up. Do not say yes just to get
the job if the real answer is no. This can create a lot of problems
later on in your career. Be honest at this point and save yourself
future grief.

37.       Are you willing to put the interests of the organization ahead of your own?
This is a straight loyalty and dedication question. Do not worry about
the deep ethical and philosophical implications. Just say yes.

38.       Describe your management style.
Try to avoid labels. Some of the more common labels, like progressive,
salesman or consensus, can have several meanings or descriptions
depending on which management expert you listen to. The situational
style is safe, because it says you will manage according to the
situation, instead of one size fits all.

39.       What have you learned from mistakes on the job?
Here you have to come up with something or you strain credibility. Make
it small, well intentioned mistake with a positive lesson learned. An
example would be working too far ahead of colleagues on a project and
thus throwing coordination off.

40.       Do you have any blind spots?
Trick question. If you know about blind spots, they are no longer blind
spots. Do not reveal any personal areas of concern here. Let them do
their own discovery on your bad points. Do not hand it to them.

41.       If you were hiring a person for this job, what would you look for?
Be careful to mention traits that are needed and that you have.

42.       Do you think you are overqualified for this position?
Regardless of your qualifications, state that you are very well
qualified for the position.

43.       How do you propose to compensate for your lack of experience?
First, if you have experience that the interviewer does not know about,
bring that up: Then, point out (if true) that you are a hard working
quick learner.

44.       What qualities do you look for in a boss?
Be generic and positive. Safe qualities are knowledgeable, a sense of
humor, fair, loyal to subordinates and holder of high standards. All
bosses think they have these traits.

45.       Tell me about a time when you helped resolve a dispute betweenothers.
Pick a specific incident. Concentrate on your problem solving technique
and not the dispute you settled.

46.       What position do you prefer on a team working on a project?
Be honest. If you are comfortable in different roles, point that out.

47.       Describe your work ethic.
Emphasize benefits to the organization. Things like, determination to
get the job done and work hard but enjoy your work are good.

48.       What has been your biggest professional disappointment?
Be sure that you refer to something that was beyond your control. Show
acceptance and no negative feelings.

49.       Tell me about the most fun you have had on the job.
Talk about having fun by accomplishing something for the organization.

50.       Do you have any questions for me?
Always have some questions prepared. Questions prepared where you will be an asset to the organization are good. How soon will I be able to be productive? and What type of projects will I be able to assist on? are
examples.

Focus on Patent Rights
Patent Rights Information   (Contributed by B.Raghavendra, 09D61E0003)

Definition of Patent Right

v     The term patent usually refers to a right granted to anyone who invents or discovers any new and useful process, machine, article of manufacture, or composition of matter, or any new and useful improvement thereof. The additional qualification utility patent is used in the United States to distinguish it from other types of patents (e.g. Design patentIn the United States, a design patent is a patent granted on the ornamental design of a functional item. Design patents are a type of industrial design right. Ornamental designs of jewelry, furniture, beverage containers and computer icons are examples of objects that are covered by designs) but should not be confused with utility model.

v     A utility model is an intellectual property right to protect inventions. This right is available in a number of national legislations, as described below.

v     The Patents are granted by other countries. Examples of particular species of patents for inventions include Bioloogical patents, Business method PatentsBusiness method patent

v     Business method patents are a class of patents which disclose and claim new methods of doing business. This includes new types of e-commerce, insurance, banking, tax compliance etc. Business method patents are a relatively new species of patent and there have been several reviews investigating the...s, Chemical Patents and Software Patents.

v     History of Patent rights

v     In 500 BC, in the Greek city of Sybaris. Sybaris was an ancient city of Magna Graecia on the western shore of the Gulf of Taranto. The wealth of the city in the 6th century BC was such that the Sybarites became synonymous with pleasure and luxury... (located in what is now southern Italy), "encouragement was held out to all who should discover any new refinement in luxury, the profits arising from which were secured to the inventor by patent for the space of a year."

v     The Florentine architect Filippo BrunelleschiFilippo Brunelleschi

v     Filippo Brunelleschi was one of the foremost architects and engineers of the Italian Renaissance. All of his principal works are in Florence, Italy... received a three-year patent for a barge with hoisting 'Hoist' (device).A hoist is a device used for lifting or lowering a load by means of a drum or lift-wheel around which rope or chain wraps. It may be manually operated, electrically or pneumatically driven and may use chain, fiber or wire rope as its lifting medium. The load is attached to the hoist by means of a gear, that carried marble along the Arno riverArno River

v     The Arno is a river in the Tuscany region of Italy. It is the most important river of central Italy after the Tiber.- Source and route :The river originates on Mount Falterona in the Casentino area of the Apennines, and takes initially a southward curve... in 1421. In 1449, King Henry VI granted the first patent with a license of 20 years to John of Utynam for introducing the making of colored glass to England.

v     Patents in the modern sense originated in 1474, when the Republic of veniceRepublic of Venice

v     The Most Serene Republic of Venice , or ) or Venetian Republic was a state originating from the city of Venice in Northeastern Italy. It existed for over a millennium, from the late 7th century AD until the year 1797... enacted a decree that new and inventive devices, once put into practice, had to be communicated to the Republic to obtain the right to prevent others from using them.

v     England followed with the Statute of MonopoliesStatute of Monopolies 1623

v     The Parliament of England's Statute of Monopolies of 1623 provided strict rules on the circumstances in which the first inventor of a given item could be given exclusive rights to that invention, provided that it was not “contrary to the law nor mischievous to the state by raising prices of... in 1623 under King James I of England.Anne became Queen regnant of England, Scotland and Ireland on 8 March 1702, succeeding her brother-in-law and cousin, William III of England and II of Scotland James VI & I was King of Scots as James VI from 1567 to 1625, and King of England and Ireland as James I from 1603 to 1625, which declared that patents could only be granted for "projects of new invention." During the reign of Queen

v     Anne(1702–1714), the lawyers of the

English Court

developed the requirement that a written description of the invention must be submitted. The patent system in many other countries, including Australia, is based on British law and can be traced back to the Statute of Monopolies.

v     In France, patents were granted by the monarchy and by others institutions like the "Maison du Roi". The academy French Academy of Sciences is a learned society, founded in 1666 by Louis XIV at the suggestion of Jean-Baptiste Colbert, to encourage and protect the spirit of French scientific research examined novelty. Examinations were generally done in secret with no requirement to publish a description of the invention. Actual use of the invention was deemed adequate disclosure to the public. The modern French patent system was created during the Revolution in 1791. Patents were granted without examination since inventor's right was considered as a natural one

v     In the United States, during the so-called colonial period and Articles of confederationArticles of Confederation

v     The Articles of Confederation and Perpetual Union, customarily referred to as the Articles of Confederation, was the first constitution of the United States of America and legally established the union of the states. The Second Continental Congress appointed a committee to draft the Articles in... years (1778–1789), several states adopted patent systems of their own. The first Congress adopted a Patent ActPatent Act of 1790

v     The Patent Act of 1790 was the United States' first patent statute. It was titled An Act to promote the progress of useful Arts, and passed on April 10, 1790..., in 1790, and the first patent was issued under this Act on July 31st (to Samule HapkinsSamuel Hopkins (inventor)

v     Samuel Hopkins was an American inventor from Philadelphia, Pennsylvania, and Pittsford, Vermont. On July 31, 1790, he was granted the first U.S. patent, under the new U.S. patent statute just signed into law by President Washington on April 10, 1790... of Vermont for a Potash For the hamlet in Suffolk, England see Potash, Suffolk.Potash is the common name for potassium carbonate and various mined and manufactured salts that contain the element potassium in water-soluble form production technique.

DAY FOCUS:  (Focused by B.Raghavendra, 09D61E0003)

Banking & Finance
Central Bank launches doorstep banking

Taking banking services to customers’ homes, public sector lender Central Bank of India on Saturday launched a service through which a bank’s representative will visit customers for carrying transactions and collecting cheques and drafts.

The service, christened Door Step Banking, will entail a representative going to the customer’s address for picking- up and delivering cash through an arrangement with a service provider, the bank said in a press release issued here.

“As a complementary service, the bank also proposes to pick-up instruments like cheques/drafts from the customer’s residence/office at the time of pick-up/delivery of cash,” it added.

The scheme will be initially available in Delhi and Mumbai, it said, adding the bank already provides services like Internet banking, mobile banking and SMS alerts for the benefit of customers.

“The bank is technologically well equipped to provide cost-effective and convenient services,” the bank’s Chairman and Managing Director, Mr S Sridhar, said.

Satellite jointly built by ISRO successfully launched

Advanced communication satellite HYLAS, built by ISRO on a commercial basis in partnership with Europe’s space leader EADS-Astrium, was on Saturday successfully launched from French Guyana.

Thirty five minutes after the lift-off (00.09 hrs IST) at Guyana Space Centre at Kourou in European Ariane-5 V198 launch vehicle, HYLAS separated from the launch vehicle after reaching its intended geosynchronous transfer orbit, an ISRO press release sai d.

ISRO’s Master Control Facility at Hassan in Karnataka successfully received radio signals transmitted by HYLAS (Highly Adaptable Satellite) and the satellite’s health is normal, it said.

HYLAS, developed for Avanti Communications, UK, comprises 10 high power transponders that use eight Ka and two Ku band frequencies.  It is designed to deliver high-speed broadband services through its spot beams over Europe, the release said, adding that the HYLAS is expected to operate from 33.5 deg West longitude for European coverage.

The contract to build it was won in 2006 after stiff competition with leading manufacturers in US and Europe through the strategic alliance worked out between Antrix/ISRO and M/s EADS Astrium of France, the space agency said.  The alliance was formed to jointly develop communication satellites with ISRO platforms and Astrium payloads and market these internationally.

HYLAS weighing 2,541 kg at lift-off is the heaviest satellite built by ISRO for I-2K bus and is capable of operating for over 15 years mission life as demanded by the customer. Its solar panels generate a maximum of about 3,200 watts of power. Antrix/ISRO is also responsible for the post launch operations of HYLAS, being conducted from Hassan. The operations include firing of its Liquid Apogee Motor (LAM) in three phases to place the satellite in geo-stationary orbit.

Kaiga-4 atomic power plant becomes operational

The country’s 20th nuclear power plant became operational here on Saturday taking the total installed atomic power capacity in the country to 4,780 MW.
The indigenously-developed 220-MW capacity Unit 4 of the Kaiga Atomic Power Station attained criticality at 8.07.22 am making India the sixth country in the world to have 20 or more nuclear power plants in operation. A nuclear reactor is said to have attained criticality when it is ready to maintain stability of the chain reaction indicating that the unit has achieved a steady output of power.
The Kaiga-4 was built a few years ago but was unable to start power production for want of fuel. India’s exemption from the Nuclear Suppliers’ Group guidelines in 2008, which facilitated its return to global nuclear trade, made the access to fuel possibl e.
The announcement of Kaiga-4 attaining criticality was made by the Atomic Energy Commission Chairman, Mr Srikumar Banerjee, in the presence of the Nuclear Power Corporation of India Ltd (NPCIL) Chairman-cum-Managing Director, Mr Shreyans Kumar Jain, and a number of senior officials at the plant site.
“I announce that Unit 4 has attained criticality,” Mr Banerjee said. He said that it would be the endeavour of the department to ensure that the new unit is connected with the grid as early as possible which could be followed by commercial production of power.
The Kaiga Unit 4 will now undergo a series of checks from the Atomic Energy Regulatory Board (AERB) before being synchronised with the grid. The commercial production will begin thereafter.
The entire process from criticality to commercial production takes about two months. Three units of 220 MW each are already generating electricity at the Kaiga nuclear station at about 60 per cent of their capacity. Kaiga is NPCIL’s sixth nuclear power p lant site.

MANAGEMENT TIPS: -  COMMUNICATING WITH CLIENTS

Whether you're a business owner or a manager carrying out a project, one thing is always the same: The client is dominant voice in decision-making. Learn to communicate with them effectively and you'll set a good example for the people you supervise.

Remember that the customer is the boss. At the end of the day, your job is to make the customer happy. Act accordingly.Differentiate your products. Don't get lost in a sea of products and services like yours. Make sure you stand out from your competitors.Retain customers as much as you recruit new ones. While you always want to bring in new business, it's very important to maintain relationships with loyal customers.Provide effective channels of communication. Make sure your clients can contact you easily and quickly if they have a problem, concern or question. They can also provide a valuable source of feedback.Maintain customer data. Use this data to make your customers feel special by remembering occasions like birthdays and anniversaries. It's also helpful for keeping track of purchasing preferences.Segment your customers. Not all customers are alike. Divide your customers into groups that allow you to provide attention and services that meet each customer's unique needs.Provide effective after-sales services. Don't let contact fall off after the work is complete. Make sure your client stays happy.Listen attentively. Pay attention to exactly what clients are asking for to help you better meet their needs.Don't be afraid to say you don't know. It's OK not to know the answer to every question. It's better to say you don't know and get back to a customer than to try to bluff your way through a conversation and have to backtrack later.

FOCUS - CASE STUDY

PERSPECTIVES OF MANAGEMENT

The division manager had recently heard a lecture on management by objectives. His enthusiasm, kindled at that time, tended to grow the more he thought about it. He finally decided to introduce the concept and see what headway he could make at his next staff meeting.

He recounted the theoretical developments in this technique, cited the advantages to the division of its application, and asked his subordinates to think about adopting it.

It was not as easy as everyone had thought. At the next meeting, several questions were raised. ..Do you have division goals assigned by the president to you for next year?.. the finance manager wanted to know. ..No, I do not, ..the division manager replied. ..I have been waiting for the president.s office to tell me what is expected, but they act as if they will do nothing about the matter.....What is the division to do, then?.. the manager of production asked, rather hoping that no action would be indicated.

..I intend to list my expectations for the division,.. the division manager said. ..There is not much mystery about them. I expect $ 30 million in sales; a profit on sales before taxes of 8 percent; a return on investment of 15 percent; an ongoing program in effect by June 30, with specific characteristics I will list later, to develop our own future managers; the completion of development work on our XZ model by the end of the year and stabilization of employee turnover at 5 percent...

The staff was stunned that their superior had thought through to these verifiable objectives and stated them with such clarity and assurance. They were also surprised about his sincerity in wanting to achieve them.

..During the next month I want each of you to translate these objectives into verifiable goals for your own functions. Naturally they will be different for finance, marketing, production, engineering and administration. However you state them, I will expect them to add up to the realization of the division goals...

(a) Can a division manager develop verifiable goals, or objectives, when the president has not assigned them to him or her? How? What kind of nformation or help do you believe is important for the division manager to have from headquarters?

(b) Was the division manager setting goals in the best way? What would you have done?

Focus – Day Tip True education is that which removes the pollution of the mind and develops character .