Identify the statutory and voluntary agencies who may work together at the scene of an emergency incident Essay

P3 – place the statutory and voluntary bureaus who may work together at the scene of an exigency incident Statutory and voluntary bureaus:Statutory bureaus are services like the constabulary. fire and ambulance. These will ever fall in an exigency incident. However at some incidents they will be helped by voluntary bureaus like: St John Ambulance – St John Ambulance is a charitable administration staffed by trained voluntaries. The administration responds to 100s of exigency incidents ( including major incidents ) such as inundations. fires. route traffic hits and train clangs. The service supports and aids those in demand. and is an first-class resource in footings of trained staff. medical assistance and exigency vehicles. It can besides supply emptying Centres. The St John ambulance has helped the statutory bureaus during the implosion therapies 2007 in York. â€Å"Throughout June and July 2007 our voluntaries worked indefatigably to assist back up communities hit by heavy inundation Waterss. We have provided a 24-hour support with voluntaries and vehicles in a command to assist people struck by the catastrophe and set up many remainder Centres for those evacuated from their homes† . As you can see St John Ambulance makes a immense difference when they help the other exigency services at a major incident as it says above ‘set up many remainder Centres for those evacuated from their home’ . By them making that they have helped out the constabulary services which saved them plentifulness of clip. British Red Cross – The British Red Cross is a voluntary administration that provides all kinds of things for illustration: First Aid. Emergency Response. Heal and Social Care. happening losing household. fixing for catastrophes and last but non least refugees support. During an incident the administration can supply emotional support. support with the attention of kids and pets use of shower and lavatory installations. proviso of toilet articless. vesture. light refreshments. usage of a telephone and last but non least first assistance. â€Å"As a prima voluntary administration for exigency response. the Red Cross has 1000s of specially trained voluntaries who provide a scope of services to people in exigencies. including practical and emotional support and first assistance services. The Red Cross besides has well-equipped fire and exigency support service ( FESS ) vehicles which play a critical function in back uping local fire and ambulance services. Before the implosion therapy began. we launched a coordinated response to assist vulnerable people across countries threatened by deluging in the UK. Our response included: Emptying. staffing remainder Centres. support to the statutory services. distribution of exigency commissariats. support from across the administration. supplies and information. The British Red Cross have done a immense favor non merely to the populace but to the statutory bureaus by back uping them on first assistance and emptying ECT. In my sentiment without the British Red Cross it would of been 10 times harder to work out the major incident. non merely that hundreds more of casualties would of died if it weren’t for the British Red cross. Mountain deliverance – Mountain deliverance. a voluntary service that is train to deliver people who may hold an accident it the mountain or lake country where there is limited ways to reach anybody for aid. The Mountain Rescue squad has supported the statutory bureaus during the Grayrigg train clang at 2007. â€Å"Mr Farron. MP for South Lakes. said: â€Å"It’s merely suiting that Network Rail’s mulct goes to assist those who were foremost to supply aid on the dark. Sadly it is all excessively true that these fantastic voluntary services do hold to keep out a manus for windfalls and without them they could non survive† . As you can see the mountain deliverance squad was a immense support. It been said above without them they could non last that proves a point that mountain deliverance squad is a difficult working and organized administration. BibliographyBourley. A. ( 2012. May 24 ) . Give MOUNTAIN RESCUE TEAMS GRAYRIGG FINES CASH. SAYS CUMBRIAN MP. Retrieved october 8. 2013. from newsandstar: hypertext transfer protocol: //www. newsandstar. co. uk/news/give-mountain-rescue-teams-grayrigg-fines-cash-says-umbrian-mp-1. 957516? referrerPath= # Dymond. H. ( n. d. ) . Emergency response. Retrieved 10 8. 2013. from sja: hypertext transfer protocol: //www. sja. org. uk/sja/what-we-do/emergency-response. aspx Gray. D. ( 2010 ) . oublic services level 3 btec subjects book 2. Society. T. B. ( 2007. august 2 ) . How the UK inundations crisis unfolded. Retrieved january 10. 2013. from redcross: hypertext transfer protocol: //www. redcross. org. uk/What-we-do/Emergency-response/Past-emergency-appeals/National-Floods-Appeal-2007/How-the-crisis-unfolded

Breakfast Club Analysis

Ask anyone who was a teenager during the 80s who John Hughes is, they’ll start reciting every movie he has been involved in. He has dabbled in writing, directing and even producing. He will forever be remembered as an icon of the 80s. John Hughes was a writer for National Lampoon magazine in 1979. He was inspired by the success of â€Å"National Lampoon’s Animal House†, written by an associate of National Lampoon Magazine Harold Ramis, Mr. Hughes took a shot at screenwriting. National Lampoon’s Class Reunion, National Lampoon’s Vacation and Mr. Mom were his first screenwriting credits. These films allowed him to direct his first feature film, â€Å"Sixteen Candles†. His films such as â€Å"Weird Science†, †Pretty In Pink† and â€Å"Ferris Bueller’s Day Off† helped him become synonymous with â€Å"teen movies†. He focused on middle class life, which helped his films to be believable and interesting. He portrayed teens in a way that was relatable to his audience. According to Hollywood insiders, if a movie was to be made depicting teenagers and their emotions, John Hughes was the man to create it. Nowhere is this more evident than in â€Å"The Breakfast Club†. Hughes portrayed his characters in five types: the brain, the jock, the princess, the misfit and the criminal. Everyone who has seen this movie can see themselves in one of these characters. I fell somewhere between the jock and the brain. At the beginning of the movie, the characters had little interaction, unless it was hurling insults at each other. Cliques just don’t mix, and they felt like there wasn’t any common ground between them. Then Brian (themisfit), Andrew (the jock), Clare (the princess), Allison (the misfit) and John (the criminal) are forced to spend detention together on a Saturday Morning. That’s when things start to get interesting. During the course of the movie, the characters spend time talking and relating to one another. Each one feels different and alienated. In their own worlds, they have been neglected, abused, bullied, or even ignored by both their families and their other friends. Throughout the movie they realize that although they may seem completely different on the outside, on the inside they are all experiencing the same things. Although this movie is twenty plus years old, the themes of commonality is still true today. It speaks directly to young people. Kids/Students are still trying to find their way and fit in. The character’s of â€Å"The Breakfast Club† makes the audience think, learn, and grow. The film shows that people are wasting time hating someone they don’t know. It shows that if you take time to get to know someone, you may find they are more like you than you thought. You may find empathy for them, and you may find you can learn from them. You may even find that you like them. A reviewer at Reel. com called the movie â€Å"almost quaint in its depiction of disaffected high school students. That is true; parts of the movie is dated. If it was made today, Clare would have a baby. John would have done time for gang activity. Andrew, the jock would be on steroids. Brian and the kid who was beat up by Andrew would have formed the Trench Coat Mafia, and the flare gun in the locker would have been an assault rifle. Allison would not have even made it into the movie beca use she would have hung herself in her bedroom closet waiting to be discovered. Later â€Å"teen flicks† adjusted to the growing sophistication of teenage sensibility. This movie had a message of tolerance, acceptance, and understanding. The Breakfast Club continues to be a classic because the issues presented in the movie about social class and acceptance remains hot topics for high school students. Although the movie is funny, it handles teenage issues with a bit of maturity. The set the standard for other teenage movies. It has made such an impact that MTV honored it with a Silver Bucket of Excellence award. The cultural significance of the movie can also be seen in the recent JC Penny commercial.

The manufacturing and service operations, their differences, and the Essay

The manufacturing and service operations, their differences, and the operation processes and systems that may be common to the two - Essay Example The quality of a service is realized when it consumed and this quality is quickly lost if the service is not received as fast as possible (Artige Company, 2005). It is almost difficult to provide or claim ownership of a service. Rather, it can just be lent temporarily. A product can be a physical item (goods), non-tangible items (services), or a combination of both the categories. Manufacturing operations involves creation of goods whereas service operations involve creation and delivery of services to consumers. A number of differences occur between the operations in the service industry and those in the manufacturing industry, which translate to a difference in some operation management techniques. Firstly, the service industry is labor-intensive (Zhou, Park & Yi, 2009) as it involves many manual processes characterized by interaction between human beings. This is contrary to the manufacturing processes where most functions are mechanized. As such, it is difficult to use standardiz ed and automated systems to improve operational efficiency in service industry (Zhou, Park & Yi, 2009). Besides, the employees have their own preferences and different processes may require varying amount of labor at a given time. This calls for a more integrated system for scheduling and control. The service industry is characterized by simultaneous production and consumption of the service products (Abilla, 2010; Zhou, Park & Yi, 2009). In manufacturing process, the goods are manufactured at some earlier dates and some lead-time is created in readiness for risks and uncertainties that may be encountered in future. The buffer is not possible in the service industry, which will just apply a Just-In-Time (JIT)... This paper illustrates that business organizations are engaged in the creation of products to be offered to their clients. These products can be good or services or a combination of both. Effective development of these products requires operations management, which is concerned with the ‘design, and management of products, processes, services, and supply chains’. Operations management will entail all the processes involved in obtaining these resources, their development, and final usage by the organization. The roles in operations management take different dimensions. Strategic roles involve making some long-term operations plan for the organization, especially at the onset of a given business project. Operations management applies for both a manufacturing company and a service company. A manufacturing operations manager may be required to determine the size of a manufacturing plant and its convenient location. Similarly, an operations manager may be required to determin e the appropriate type of service to be provided and to develop the technology supply chain that will be used. OM also involves tactical roles like choosing on the appropriate resources that are to be used in a given operation. Operational roles like inventory management, quality control and inspection, or production scheduling and control are the other category of operations management. The service processes are not that distinct from the manufacturing processes and some of the operations management roles applicable in manufacturing can be extended to the service industry.

The Betrayal in Hamlet Essay Example | Topics and Well Written Essays - 2500 words

The Betrayal in Hamlet - Essay Example Hamlet's insanity is philosophical, the result of brooding upon his father's death and learning the truth about it. Ophelia's insanity is often portrayed as the result of being a woman, a person for whom emotion trumps reason, who cannot be held accountable for her actions as a result of her gender. Although this is true as Showalter explains it, modern readers can still create a new picture of Ophelia, as an intelligent woman who defies society's expectations by thinking for herself, even as others manipulate her for their own gain. Ophelia's first appearance in the play is at her brother Laertes's side; the time and place of her life requires that, if Ophelia is to be a good girl, she will always be governed by trusted men. Her brother engages in the family pastime of giving unwanted advice in long, lofty monologues. He says straight off, "For Hamlet and the trifling of his favor, Hold it a fashion and a toy in bloodnot permanent, sweet, not lasting" (I. iii. 5-8). Laertes anticipates Hamlet's betrayal of his sister, and Ophelia seems to understand what he is saying. But we can assign a degree of independence to Ophelia in his conversation; she accepts his warning lightly and then turns it around, suggesting that Laertes is giving good advice, which he himself needs to follow. When her father, Polonius, quizzes her on the same subject, she is slightly more forthcoming, but she also argues in Hamlet's favor, calling his wooing of her "honorable" (I. iii. 110) and "holy" (I. iii. 114). At the end of the scene, P olonius tells her to avoid Hamlet, and she promises to do so. Modern readers are left to wonder the men's motivations. Do they care for Ophelia, or is she a commodity whose worth could be compromised They do not trust her to make the right decision on her own, but force her into dangerous situations for their own reasons. When next we see Ophelia, she is reporting to her father on Hamlet's frightening behavior. Although she has tried to avoid him, he bursts in on her private quarters and acts crazy, grabbing her arm staring at her in a scary way. Ophelia is still behaving essentially according to expectation, coming to her father for help. She tells him she has acted "as you did command" (II. i. 108), and even Polonius believes it may be his advice that has provokes such a response. Not long after that, everyone starts to worry about Hamlet's bizarre behavior. The king, with Polonius, decides to set up a situation in which the two men can observe the young people together and determine whether Ophelia is the reason for Hamlet's madness, and in this scene, Shakespeare plants the beginnings of Ophelia's madness in Hamlet's lies and contradictions. Here her mind turns to melancholy. She sees herself "of all ladies most deject and wretched" (III. i. 158), but not before she laments the poison that infect s Hamlet. Meanwhile, her father and the king disagree on the effect of their pawn sacrifice, not considering the extent to which they have really sacrificed her. Without this external manipulation, Ophelia might have been safer. Again, in Ophelia's next scene, she is forced to contend with Hamlet's changing madness, as he flirts outrageously with her in front of both of their families and actually

Stagnation in India (1965 To 1980) Was Due To Sharp Reductions in Essay

Stagnation in India (1965 To 1980) Was Due To Sharp Reductions in Public Investments in the Mid-1960s - Essay Example The period of mid-1960s as well as early 1970s has been found to be facing numerous economic problems. The reasons behind such problems stemmed from the fact that since India faced wars with its neighboring countries, huge amount of resources were spend towards defense which reduced the amount of public investment, thus significantly affecting the growth of India. The other reason behind the stagnation was the issues related to foreign exchange situation that forced the country to devalue its currency in the year 1966. The production of the food was insufficient because of the rising demand and therefore it became necessary for India to import the food items from other countries (FAO, â€Å"India†). It was observed that there was decline in the growth rate of public investment which can be identified as one of the significant factors in the decline of the industrial growth rate after the mid-1960s. The paper tries to identify the state of economy of India during the period of 1965-1980. It will review the impacts of low public investment in the mid-1960s on India and the steps taken by the political leaders to combat the problems (Sridharan, E., â€Å"The Political Economy Of Industrial Promotion: Indian, Brazilian, And Korean Electronics In Comparative Perspective 1969-1994†). Indian Economy since Independence and During the Period of Stagnation The main question that arises is related to the performance of India since 1947, the year of its independence. It has been believed that the economy of India was stuck from the times of independence; during that period ‘Hindu rate of growth’ was nearly 3.5% per annum. The period of seventies was commonly referred to as ‘Hindu rate of growth period’. It was revealed that the reason behind the decline in the gross domestic product (GDP) growth during the period of sixties have been due to sharp decline in the growth of agriculture from the middle of sixties. After Green Revolution was introduced, there were important changes in the growth possibility of agriculture. During the period of 1965-1980, the policies were generated as a result of immediate crisis in the economy of India as well as political suitability rather than by economic logic. It has been observed that this period saw disconnectedness in the policies and the procedures of the government. It was found that various strategies adopted by the country for the purpose of the development of the nation failed miserably before the reforms of the nineties. The three components such as too much controls and inward-looking policies as well as substantial and inefficient public sector suppressed the growth during the seventies and to a certain extent in the eighties as well (Virmani, â€Å"India’s Economic Growth: From Socialist Rate of Growth to Bharatiya Rate of Growth†). The decline in the growth rate of industries in the economy of India during the sixties has been characterized as provis ional downward deviation in relation to trend. However, in the present times, the scenarios are being reflected as long-run tendencies leading to stagnation

Genetics Article Example | Topics and Well Written Essays - 250 words

Genetics - Article Example Atherogenesis and increased afterload and left ventricular hypertrophy are identified as the two ways that link hypertension and coronary heart disease. Physical activity and healthy lifestyle behaviors are some of the nonpharmacological interventions to the treatment of hypertension in patients who have coronary heart disease. The pharmacological interventions discussed are the agents of antihypertensives that include beta-blockers and angiotensin-converting enzyme. The article also proposes a combinational therapy that uses different antihypertensives and other therapies in the treatment of hypertension. It concludes that the goal of hypertension treatment should be to reduce mortality and morbidity that is caused by hypertension and coronary heart disease (Olafiranye et al 9). This article could help researchers study the different hypertension treatment alternatives and their effectiveness. It could help doctors and nurses offer better care to patients who have hypertension. In addition, the article establishes a basis for evidence based research and evidence based practice for managing hypertension, and is therefore applicable researchers in the healthcare profession. Olafiranye, Oladipupo, Zizi, Ferdinand, Brimah, Perry, Jean-louis, Girardin, Makaryus, Amgad, McFarlane, Samy & Ogedegbe, Gbenga. Management of Hypertension among Patients with Coronary Heart Disease. International Journal of Hypertension, 2011: 1 – 6, 2011. Print. Retrieved September 25, 2014 from

The Devil Wears Prada Media Analysis Movie Review

The Devil Wears Prada Media Analysis - Movie Review Example Andrea knows nothing about fashion and people at the magazine makes fun of her. Throughout the film, her sense of style changes and she becomes a true fashionista. But as everything comes with a price, her relationships with friends and boyfriend starts falling apart. At the end of the movie, Andy understands that life is made of hard choices and she needs to go after what she wants. This movie represents the fashion industry as a world full of narcissistic and shallow people. An example is the way that everyone at Runway Magazine starts treating Andy differently when she decides to dress â€Å"accordingly†. She became respected by Emily, the first Assistant, and only after the makeover that she started to get thinks right that Miranda asked her. The fact is that the movie emphasizes the change of her behavior on the fact that she gave in into the fashion world, but the truth is that she changed her perspective and decided to have a positive attitude towards the things she needed to do. To create this high fashion atmosphere, the use of costuming is indispensable. As Stutesman would argue, â€Å"[costume] must express something far beyond the outfit: the costume designer must use clothes to create basic movie elements† (Stutesman 20). If the right clothes were not used, then the movie would not make as much sense, or it would not make the same impact as it did when it first came out.

How are social relations expressed in consumption practices Use Essay

How are social relations expressed in consumption practices Use detailed ethnographic examples in your answer - Essay Example They get socially attached to other people by doing these activities. The understanding level of relation between consumption practices and social relationship is complex because it has become a very common part in the society. People do not bother to remember the experiences that are gained through real life activities. Acknowledgement is a powerful mode of communication and it creates positive relationship among human beings in society. Many anthropologists have observed the change in human nature from the past era to recent contemporary era. They share knowledge to the society regarding socio-culture, archaeology and biological anthropology based on the relevant observations. In the modern world, consumers not only make decisions based on service or product attributes but also based on several emotional elements, such as joy, anxiety, fear and feelings. This essay explains how social relations are expressed in consumption practices with the help of case-studies and ethnographic ex amples. In the modern world, it is believed that betterment of a society or country is directly proportional to the enhancement of consumption process. Though it might seem that it is only based on economic perspective but there are scenarios, where it has been observed that consumption processes have integrated the social relationship within human society. Human experiences are valuable and exchange of knowledge is possible only by communication processes. People communicate with each other in general contexts and it helps them to enhance their own knowledge and skills. For an example, according to Kabyle of Algeria in the ‘Outline of a Theory of Practice’ there is an important significance that provides the understanding of a social anthropological study. According to the study, social influence is imposed on an individual through education and socialization and is expressed through cultural practices, such as consumption (Barnard, 2001, p.570). Knowledge about anything is

History of Ireland Essay Example | Topics and Well Written Essays - 2750 words

History of Ireland - Essay Example In 1973 Ireland became a member of the European Union. [01] The heart of the country is limestone- floored lowland bounded on the south by the Armorican ridges and on the north and west by the Caledonian mountains. This lowland is open to the Irish Sea for a distance of 90 km between the Wicklow Mountains and the Carling ford peninsula, giving easy access to the country from the east. It also extends westwards to reach the Atlantic Ocean along the Shannon Estuary, in Galway Bay, in Clew Bay and again in Donegal Bay. Numerous hills break the monotony of the lowland which rises westward towards the coast in County Clare where it terminates in the cliffs of Moher, one of the finest lines of cliff scenery in Western Europe. [02] Much of Ireland was covered by ice during the Pleistocene period. This ice finally melted away about twelve thousand years ago, leaving behind evidence of its former presence in most of the minor physical features of the landscape. Throughout the greater part of the lowland the bedrock is hidden by glacial deposits which, in the north central part of the country, form a broad belt of small hills (drumlins). The glacial cover also modified the early drainage pattern and in places created groundwater conditions which facilitated the growth of peat bogs. [02] Caught in the recede and flow of the last Ice Ages over the last ... The sea level dropped 130 m (426 feet) or more during the interval from around 30,000 to 15,000 years ago, when Ireland became part of continental Europe [again], and sea levels have been generally rising ever since, albeit at a much slower rate. The image to the left represents the land mass of Europe near the time of the last glacial maximum (minus the ice sheets and the ocean water). Take a close look at the "British peninsula" and the outline of Ireland and Great Britain upon it. [05] In and around 20,000 years ago the area that would later reform the British Isles was mainly covered by a thick sheet of ice. This was during the last maximum expansion of the polar ice caps when sea levels were about 120 meters lower than today. To get another view of the British Isles when they were not islands, see this Pleistocene age reconstruction (circa 18000 radiocarbon years ago) of the outline of the European continent, or also see here. After about 9000 BC, the climate again warmed, the juniper spread, and the birch appeared in large numbers for the first time. Pine, elm and other forest trees also appeared, and Ireland began a long-term process of forestation. Other plants and animals crossed the land bridges as well. Red deer, wild boar, possibly bears, red squirrels, pine-martens, Wolves, foxes, stoats, and eagles and other birds of prey took up residence. Fish and game birds were soon present in abundance. [05] The first definite evidence of human settlement in Ireland dates from 8000 to 7000 BC. They are known from early archaeological findings to have made an appearance in the far north in the lower Bann valley near present-day Coleraine and in the southwest in the Shannon estuary. Later they are thought to spread northeast along the coast of

Enterprise Resource Planning Article Example | Topics and Well Written Essays - 4250 words

Enterprise Resource Planning - Article Example While there has been detailed analysis and interpretation in the forth coming sections, a few basic definitions have also been added to facilitate the study here. It is important that companies have an absolutely clear understanding regarding what is enterprise resource planning before contemplating on its implementation as the urgency to acquire results in a limited time frame most often defeat the very purpose of investing in ERP. While we are aware ERP accelerates results and speed is one of the key drivers, the faster it is implemented the quicker and better are the advantages and delivery in terms of results, however this early process has a huge hindrance, the returns are sought at a shorter period which may blind the companies to foresee long term effects. This deviation from the conventional practice is being largely implemented as far as many companies are concerned. Business process reengineering played a vital role with respect to its implementation. One needs to know the components of Enterprise resource planning beyond the definition to further the interest of ERP . The most natural outcome of this effort lead to development of gaps between the actual results and the one derived during the process of foreseeing or at planning stage. Customizing ERP without a thought through analysis, merely at the slightest requirement of various stakeholders in the organization, molding of practices followed in the company would inevitably drag the assessment of results beyond the time limits permitted to evaluate its success. Let alone the huge monetarily impact, it also damages basic customer's trust. It is also necessary to understand that mere ERP planning does not guarantee the benefit of ERP. It has to be implemented as planned project after understanding the components of enterprise resource planning. In spite of having improved the implementation issues what remains static is the manner in which companies go ahead with ERP implementation. The objectives regarding why ERP, need to be very clear to any firm that is planning to implement it. The key ones are listed in the diagram below with enhanced customer service at the top of it as increased customer service is directly proportional to additional business and growth in revenue. Why ERP 2. Enterprise Resource Planning Approach The section above briefly explains the key drivers an organization need to consider prior to using the ERP approach. It can be increasingly difficult to manage and measure effectiveness and success of the approach if it is implemented as a need of the times exercise, just for name sake without following systematic procedures. It is important to

Operational Management at Mcdonald Essay Example for Free

Operational Management at Mcdonald Essay One aspect of facilities layout for McDonalds is that when customers come into the building, they line up in one of several lines and wait to be served. In contrast, customers at Wendys are asked to stand in one line that snakes around the front of the counter and to wait for a server to become available. a) What is the rationale for each approach? b) Which approach do you favour from (1) a customers perspective and (2) managements perspective? Explain. A Rationale for McDonald approach McDonalds success had been built on four pillars: limited menu, fresh food, fast service and affordable price. Intense competition and demands for a wider menu drive-through and sit-down meals encouraged the fast food giant to customize product variety without hampering the efficacy of its supply chain. McDonalds use assembly line procedures in their kitchen for mass production so as to keep prices low. Speed, service and cleanliness is one of the critical success factors of the business. Lining up in one of the several lines tied into McDonald’s capability statement on speedy service, efficiency and good customer service. Each staff at McDonald is trained to change roles within shifts and this makes resource management during peak and off peak hours manageable. At all times there is enough staff on hand to take care of business and overall effectiveness is improved Drawback to this approach includes huge rental space to accommodate large operational facility. It could also become very costly on staff training. Workforce productivity are not usually related to the number of staff working on a task, and productivity variance may tilt negatively for McDonalds on this. Operating cost are very high and unless this is well managed, it may not necessarily be profitable. Rational for Wendy’s approach The rationale for Wendys old fashioned hamburgers could be traced to the history of unsuccessful attempts to outperform the competition which created the low profile structure. Wendy’s headquarters shifted to Dublin after a merger with Triac, Arby’s parent company and the very conservative style of  European business. Structure of business is very simple and easier to manage; it does not envisage much growth and cater mainly for the bottom line. It will require less space and resources to manage. Also less inventory and therefore less operating cost, however this will also impact on profitability. Drawback to this approach includes disorganized premises during peak hours, unsatisfied customers due to longer wait times for service. Wendy at some point was also suspect for cleanliness and this approach would add more to the problem. Managers Perspective The two approaches shows different business and strategic objectives. McDonald approach depicts a growth oriented organisation that wants to create market dominance in the sector. Wendy concentrates on its core traditional product, so that those who appreciate the product will be kept in the customer chain. The McDonalds style will require acquisition of new business skills and technology while Wendy traditional styles will require less technology. Looking at the management styles, McDonalds is poised to remain the leader in the food chain industry with concentration on their supply chain system and product differentiation methods. McDonalds work with farmers to ensure that produce are sized right and grow to specification, while Wendy concentrates mostly on the beef. With these different styles, McDonalds will be my preference for growth and bottom line. Wendy cannot compare to Mac in the business because more and more happy customers are trooping to Mac for what they see as 21 cent ury improvements.

Graffiti Art Essay Example for Free

Graffiti Art Essay Graffiti is the art of regular people; these people are not considered artists but the criminalised voice of the populace. For most artists, gaining recognition and selling their works for high-prices is a life-long aspiration and for the most recognition doesn’t happen before death. Graffiti artists don’t have these ambitions and from city to coast we can admit to admiring the aesthetic value and eccentric expressions that are portrayed by Graffiti artists. They portray quirky, humorous artworks and provide a political voice for the lower class people of the world. Largely emerging in the late 1970’s and the early 1980’s, Graffiti was the people’s way of expressing their feelings about anti-consumerism, anti-war, feminist and political issues. It is the art that has attitude and makes every surface of a city an installation that brings people together and provokes thought about the world as it is. A largely popular quasi-anonymous graffiti artist that is supposedly from Bristol, England is Banksy. As his artworks were considered criminal he ensured that his real name was not discovered by the media and to this day remains anonymous. Inspired by local artists and the Bristol underground scene, Banksy initially employed freehand and stencilling techniques to create his pieces but later converted to stencilling entirely after â€Å"realising how much less time it took to complete a piece† (Wikipedia, 2008). He used graffiti to â€Å"promote alternative aspects of politics from those promoted by mainstream media† (Sewell, 2010) and provided a voice for people affected by political issues that could not express their emotions. It is highly debated as to whether graffiti is in fact art or vandalism with many people regarding the work of Banksy and similar artists such as Blek le Rat and Jef Aerosol as straight up criminal destruction. In regards to Banksy’s work being vandalism he states that â€Å"Some people become cops because they want to make the world a better place. Some people become vandals because they want to make the world a better looking place† (Vidar, 2011). Though, to this day graffiti that is not approved legally is considered a criminal act that is punishable, instead of being seen as art brightening the bland streets of this world. Above: Artwork by Banksy of a police officer snorting cocaine. Not only does Banksy regard his pieces to be artworks, Terrance Lindall an artist and executive director of the Williamsburg Art and Historic Centre also made a tatement about graffiti, he says, Graffiti is revolutionary, in my opinion and any revolution might be considered a crime. People who are oppressed or suppressed need an outlet, so they write on walls—its free (Ciuraru, 2006) Despite the social and economic status of the people holding these high opinions of graffiti art, be the lower class or even highly educated, Banksy remains an artistic fugitive in hiding and graffiti still remains illegal. Banksy is essentially a modern day, anonymous Andy Warhol that has the clear capacity to insult, irritate and mock, in the most educated way possible. He is the representation of everyone, he remains anonymous as there is no need to meet such an artist; we would simply have to look in the mirror and we would find Banksy. He has the ability to delve deep into the thoughts of common society and voice the feelings that people are afraid to exploit publicly, which makes him an incredibly powerful figure. His artworks promote the underdogs, the suppressed mentality of an entire societal collective, the mentality of the corrupt and the moral deterioration that continues to spread like an uncontrollable wild fire. Even though Banksy is rebelling against not only the law, but politics and those in society who disagree with his creations he was also rebelling against the movements of other artists at the time.

Principles of Human Resource Management

Principles of Human Resource Management 1. Introduction I will attempt to explain, research, apply the knowledge to my organisation make recommendations, and provide new knowledge for the following five key learning points: A company/business cannot grow without, until its leaders grow within  [3]  , The key to retention of the right people is role sculpting, Mentoring is not coaching, The rate at which an organisation learns may become the only sustainable source of competitive advantage  [4]  , and Diversity is inclusivity. 2. Key Learning Points 2.a) Key Learning Point A company/business cannot grow without, until its leaders grow within  [5]   Synthesis The premise of John Maxwells statement and this key learning point is that leaders growth precedes company growth and the companys growth is directly related to that of its leaders growth. Leaders growth is also be extended to growth of managers and employees, creation of a learning organization. Research Research on this key learning point indicates the following process to grow the business by growing its leaders: Creating a climate for potential leaders  [6]  , The environment has to be conducive for change, an environment in which people will excel, an environment which will automatically produce individual growth and therefore company growth, and most importantly of all, a positive environment. Identifying potential leaders  [7]  , The right person for the job has to be selected that has / will have the ability to influence people to achieve company goals. This is not an easy task. The potential downside is if the wrong person is hired you are committed and reversing the decision is costly is all respects. Nurturing potential leaders  [8]  , According to John C Maxwell, nurturing is not only about rewarding with money / shares etc. but its also about changing the person life by believing in them, encouraging them, sharing with them and trusting them  [9]   Equipping potential leaders  [10]  , The person is given the given the ongoing training they require for their current roles and responsibilities Developing potential leaders  [11]  , The person is given the given the ongoing development they require for the position with the focus being gearing up for the future. Coaching potential leaders  [12]  , The employee is equipped, empowered in their current roles and responsibilities Realizing the value to and from potential leaders  [13]  . Harnessing the growth in the employees to achieve company growth. It is important that the growth is perpetuated throughout the organization, a learning culture. Application Our business is a family owned property development, construction and property investment business. It grew organically to a point where an executive management team was appointed (sourced internally externally) to take the business forward, as the owners felt that they did not have the skills to do so. This management team has had the necessary training. Development is currently being undertaken by WBS MAP and a mentorship program; however, this is in reality a coaching program. The following issues have been identified: Learning / growth is only happening at an executive management level and not below, The owners are battling to let go. This creates uncertainty in the executive management team and is not a positive environment conducive to change, Nurturing has taken place but trust remains an issue, and Coaching has taken place albeit under the guise of mentorship. The following are the recommendations: A learning culture should be created throughout the organization, For learning and change to take place, confidence is needed in the executive management team. This will require the owners to let go and trust in their appointees, Systems, procedures together with levels of authority are required for decision making to alleviate the trust issue, and A properly structured mentorship program is required. New Knowledge We need to develop and surround ourselves with leaders as we are only as good as those that report to us. This will form the basis of a very good team. Doing this will enhance our effectiveness by creating leverage through staff. This will enable us to drive the strategies of the organisation. 2. Key Learning Points (contd) 2.b) Key Learning Point The key to retention of the right people is role sculpting Synthesis Retaining the right people (talent war) for the right position and employee mobility is a worldwide problem as people below the age of 35 years move jobs every 5 years and in South Africa every 2.5 years  [14]  . Job sculpting is the art of matching people to roles that allows: 1) Their deeply imbedded life interests, 2) Their abilities, and 3) Their values. This is expressed in work satisfaction and commitment, and leads to growth and success.  [15]   Research Business environments are continually changing and consequently the role of the employee needs to follow suit. Strategically and using the HR Database, a GAP analysis is performed of where we are now versus where we want to be. A decision is then made as to the role of the employee (with employee engagement and employee consent [positive buy-in]). Implementation is then planned and executed. It is a given and of paramount importance that career management and career development have and are still taking place. It is also a given that the right person, at the right time, with the right complimentary talents is required. Once again this comes from the HR Database. It is also a given that Role description and role specification are required. The sculpted role is then monitored through performance management. Application Role sculpting does not exist within the organisation for which I work. Retention of talent is done by paying above market salaries and talent mobility has not been a problem since the world economic crisis started in 2008. GAP analyses are performed resulting in changed employee roles, however employee consultation requires attention. Strategies are effective executed but there is need for a HR Database. There is also a need for career management and career development have and are still taking place. Role description and role specification are done. The new role is monitored through performance management. New Knowledge The retention of the RIGHT people is hugely important due to the skills shortages being experienced in the country. What I have found personally is that skills available out there have become more expensive than the existing skills we have bought over the past 3 to 5 years. What Im raising here is that companies are paying above market salaries for an average skill due to the shortage thereof. Staffing and retention of staff has become challenging and complex, hence the importance of the key to retention of the right people is role sculpting. 2. Key Learning Points (contd) 2.c) Key Learning Point Mentoring is not coaching Synthesis Mentoring IS NOT the same coaching as is often confused by organizations. Mentoring is voluntary process focusing on relationships, guidance and advice. The outcome of mentoring is EMPOWERMENT. A mentor does not teach. Coaching is a compulsory process with the focus on teaching within the employees roles and responsibilities. The outcome of coaching is TRANSFORMATION. A coach teaches. Mentoring and coaching form part of training and development and both build peoples confidence through their successes. Research Per the CIPD (Chartered Institute of Development), London, surveys  [16]  the use of mentoring and coaching as part of a broader HR personal developmental tool is on the increase, with 72% of companies surveyed using mentoring and 63% using coaching. The use of mentoring and coaching is used as part of a broader HR personal developmental tool. Mentoring refers to a developmental relationship with a more experienced expert and a less experienced (and usually younger) protà ©gà ©. The use of the term coaching on the other hand (as in the art of coaching people) has its origins in English traditional university cramming in the mid 19th Century.  [17]   Per an article written by Jo Lamb on 24 April 2008, Workplace Coaching and Mentoring, Exploring the Key Differences to Maximise Personal Development  [18]  , Mentoring and coaching are similar in light of enabling employees (therefore employers) to try and gain full potential by leverage with the employee. However, the fundamental differences are 1) Timing mentoring does not have a time frame and can go on indefinitely (even through career changes) but coaching does have a very specific time frame, 2) Experience and qualifications mentors are experienced in the field they are mentoring in whereas coaches are not necessarily experienced in this field, and 3) Focus in mentoring is not as specific as that of coaching. The success of the coaching and mentoring programs were questioned as they were more often than not left to managers who did not always have the time and sometimes ability to see the process through to fruition. I dont necessarily agree with the fundamental timing difference 1) above as mentors within an organisation are bound by time. You could however have an outside mentor who could mentor you across many employments. I also dont agree with experience and qualification in 2) above. My opinion is that this is the reverse; coaches have specific knowledge whereas mentors may have specific knowledge but the mentoring takes place on a generalist level and specific job knowledge is not required. Application Mentoring takes place within the organization for which I work, but I feel that the mentors were not properly trained. This was key to the process not working as intended. There was only one mentor for each mentee and confidentiality was an issue. Coaching does take place, but it is ad hoc and informal. There is a need for coaching to be formalized. New Knowledge There is an ongoing argument that mentoring and coaching can be viewed as the same within training and development. I do however feel that the mentoring is empowering and coaching is transforming. The biggest downfall of mentoring and coaching programs is the whether they take place correctly, or if at all (monitoring and feedback sessions would be required, and whether the coaches and mentors are properly qualified to mentor and coach respectively. 2. Key Learning Points (contd) 2.d) Key Learning Point The rate at which an organisation learns may become the only sustainable source of competitive advantage  [19]   Synthesis (15) Research (30) Application (30) New Knowledge (20) 2. Key Learning Points (contd) 2.e) Key Learning Point Diversity is inclusivity Synthesis (15) Research (30) Application (30) New Knowledge (20)

the crime :: essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Chad   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã¢â‚¬Å"The Bahamas,† it was a trip of a lifetime. I went there with my girlfriend and a couple of other friends. We were all nervous because it was the first time any of us have flown. We finally got a chance to start boarding, after we arrived at the airport five hours early. Before boarding, we had to show the airport attendants our birth certificate. When I went to show them my birth certificate, they wouldn’t let me board because mine was a copy and not the original. Luckily, after waiting for twenty minutes, they made a few calls and let me go.   Ã‚  Ã‚  Ã‚  Ã‚  As we flew over the ocean the water was crystal clear and the sky was beautiful. I couldn’t wait to get there, but after two and a half hours, we finally arrived in Nassau, Bahamas. We got off the plane and the weather was beautiful, it was 90 degrees and sunny. We walked in, got our luggage and had to go through customs. We went outside caught our bus and off we went to our resort. When arrived there everyone was very nice and respectful.   Ã‚  Ã‚  Ã‚  Ã‚  Our first day their we planned to take a boat over to the Atlantis resort on Paradise, Island. The Atlantis is a resort known to have movie stars and athletes stay. I was only twenty years old when we went there, so I have never been to a casino. We all got to gamble, and I won $300 playing blackjack, it was a blast. The resort also had an underground aquarium with sharks and lots of other odd looking fish.   Ã‚  Ã‚  Ã‚  Ã‚  The next few days we sat around the resort and went parasailing, and lots of other activities. Parasailing was an adrenaline rush and probably one of the funnier things I had done in my life. We also went downtown Nassau and that is where they have a big flea market. The flea market had a lot of neat and different things down there. We spent the whole day downtown and later that night went out to a few dance clubs.   Ã‚  Ã‚  Ã‚  Ã‚  The last two days we were there a hurricane was roaring in, while we were trying to get out.

To Kill a Mockingbird by Harper Lee Essay -- essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  Each character’s personality in the book To Kill A Mockingbird by Harper Lee is intricately described, therefore giving the reader an image or idea of the kind of person he or she is. A picture of the character is formed in the mind with maybe rough edges but a soft heart on the inside. A character’s personality may be oversimplified by drawing shapes in symbolism, but the shapes may be helpful in perceiving the general extent of the characteristics. With a little help from Lee’s descriptions, I have been able to form images in my mind (and draw them on paper) of the personalities of Scout, Jem, Atticus, Dil, Calpurnia, Boo Radley, and Bob Ewell.   Ã‚  Ã‚  Ã‚  Ã‚  Scout’s shape has a green half-heart bottom, two green finger-like extensions that reach out from the top, one toward Atticus and the other toward Jem, and another green finger-like extension projecting from the side toward everyone else in Maycomb. The green in each of the finger-like extensions and the half-heart bottom represents her youth and innocence which affect her outlook on life. In the center of the shape, a red core represents the love and passion that fill her heart and is the inspiration for her actions and reasoning. Atticus is connected to Scout by the finger-like extension because Scout looks up to him, trusts him, and learns both moral and academic lessons from his actions and words. When Scout narrates, she says, â€Å"As Atticus had once advised me to do, I tried to climb into Jem’s skin and walk around in it: if I had gone alone to the Radley Place at two in the morning, my funeral would have been held the next afternoon. So I l eft Jem alone and tried not to bother him†(57). This shows her respect toward Atticus and demonstrates her real trust in his advice. The other finger-like extension reaching from the top, toward Jem, shows their connection and her natural admiration, love, respect, and trust in her older sibling. â€Å"Jem gave a reasonable description of Boo: Boo was about six-and-a-half feet tall, judging from his tracks; he dined on raw squirrels and any cats he could catch, that’s why his hands were bloodstained- if you ate an animal raw, you could never wash the blood off. There was a long jagged scar that ran across his face; what teeth he had were yellow and rotten; his eyes popped, and he drooled most of the time† (13). This sho... ... like Calpurnia and Boo, has a quality, not to be proud of, but different from the others: he is a drunk. He is small because he rarely shows up in the novel, but does play a significant role as the opposite of the innocent mockingbird.   Ã‚  Ã‚  Ã‚  Ã‚  Each shape generalizes the personalities and connections of the characters, although not in depth. Atticus is shown to have a big influence on the entire community, always maintaining his maturity and dignity. Scout’s respect is shown, as well as her special understanding connection with Boo Radley. Jem’s big heart and development of maturity can be seen in his shape and the colors designated for each part. Dill’s confident appearance and true insecurity is expressed through the edges of the shape. Calpurnia is shown as a mature caretaker that leads through example, and Bob Ewell is shown as the opposite of every moral the novel is meant to express. When the shapes are put together to create a picture with meaning, the outcome would show the different types of people, not as individuals in Maycomb, but as the actual town of Maycomb, showing that, no matter how old or how young, each person in Maycomb matters.

Fitzgeralds The Great Gatsby as Commentary on the Failure of Society E

Fitzgerald's Corrupt View of Society in The Great Gatsby       "What people are ashamed of usually makes a good story," was said of Fitzgerald's novel, The Great Gatsby. The Great Gatsby is about the American Society at its worst and the downfall of those who attempt to reach its illusionary goals. The idea is that through wealth and power, one can acquire happiness. To get his happiness Jay Gatsby must reach into the past and relive an old dream. In order to achieve his dream, he must have wealth and power. Fitzgerald was wrong in the way he presented Gatsby's American Society because of the way Gatsby made money, found love, and lived his life.    The way in which Gatsby made money was a despicable practice. Gatsby's bootlegging business made him millions. The time during Prohibition in the 1920's was a opportune time to take advantage of the lack of alcohol and sell it for those who would pay large sums for it. Organized criminals catered to the needs of the drinking public by illegally supplying them with liquor. The book and Fitzgerald didn't reference straight to t...

Operational Performance Measurement: Sales and Direct-Cost Variances

Chapter 14 Operational Performance Measurement: Sales and Direct-Cost Variances, and the Role of Nonfinancial Performance Measures Case 14-1: Pet Groom and Clean Company Readings 14-1: â€Å"Standard Costing Is Alive and Well at Parker Brass† by D. Johnsen and P. Sopariwala, Management Accounting Quarterly (Winter 2000), pp. 12-20. The Brass Products Division of the Parker Hannifin Corporation is a world-class manufacturer of tube and brass fittings, valves, hose, and hose fittings. Despite the introduction of popular new costing systems, the Brass Product Division operates a well-functioning standard costing system.Discussion Questions: 1. What features in the firm's standard costing that make it a success? 2. In addition to variances seen in the textbook Parker Brass created several new variances. Describe these variances. Why are these variance added at Parker Brass? 14-2: â€Å"Redesigning Cost Systems: Is Standard Costing Obsolete? † by Carole B. Cheatham and Leo B . Cheatham, Accounting Horizons (December 1996), pp. 23-31. The article shows some new ways to analyze standard cost data, going beyond the traditional emphasis on production costs variances that focus on price and efficiency.Variances for product quality are developed and explained, as well as sales variances based on sales orders received and orders actually shipped. There is also a discussion of how to incorporate activity-based costing, and continuous standard improvement, including benchmarking and target costing. The main premise of the article is that standard cost systems are the most common cost systems in use, and while there are a number of limitations to these systems, a careful and creative effort can transform them into more useful cost systems. Discussion Questions: 1.What are the main criticisms of traditional standard cost systems? 2. What is meant by â€Å"push through† production? Is it preferred to â€Å"pull through† production, and why? 3. What ar e the best ways to make standard cost systems more dynamic? 4. Considering the suggestions make in this article, in contrast to the chapter presentation of standard costing, which ideas make the most sense to you and why? 14-3: Can Variance Analysis Make Media Marketing Managers More Accountable? by Ted Mitchell and Mike Thomas, Management Accounting Quarterly (Fall 2005), pp. 51-61.This article discusses, within the context of a marketing application, an alternative method for decomposing a total standard cost variance. The authors posit that in such applications the joint variance (that in conventional practice is assumed to be small) can be significant in amount and therefore invalidate conventional methods that include the joint price-cost variance as part of the price variance. However, the treatment proposed by the authors for the joint price-quantity variance differs from the â€Å"three-variance† solution found in some cost/managerial accounting texts. Discussion Ques tions: . Explain what is meant by the term â€Å"joint variance† as this term is used in standard cost systems used for control purposes. 2. Explain what the authors of this article mean when they describe their proposed approach for standard cost variance decomposition as a â€Å"geometric solution. † 3. Explain the term â€Å"Minimum Potential Performance Budget† model. How is this concept employed in the variance decomposition process recommended by the authors? 4. What are the primary advantages and primary disadvantages of the variance decomposition model recommended by the authors of this paper? 4-4: Helping Students See the ‘Big Picture of Variance Analysis by Neal VanZante, Management Accounting Quarterly, Vol. 8, No. 3 (Spring 2007), pp. 39-47. This paper presents two examples that can be used to reinforce concepts and procedures students learn in text Chapters 14 through 16. The first example, Fernandez Company, can be used as a comprehensive rev iew of all three chapters; the second example, Roger Company, can be used in conjunction with Chapter 14 if additional coverage of the joint price-quantity variance for direct materials (DM) is desired.The Fernandez Company example requires students to first calculate the total flexible budget variance (in operating income) for a period and then breakdown this variance into its constituent parts (selling price variance, various cost variances, etc. ). Discussion Questions: 1. What is meant by the total operating-income variance for a given accounting period? What alternative names are there to describe this variance. 2. What would be a first-level breakdown of the total variance described above in (1)? 3. How can the total flexible-budget variance be broken down (i. . , what are the constituent parts of this total variance)? 4. Explain the total sales volume variance for a period. How can this total variance be decomposed? 5. Explain the meaning of the joint price-quantity variance that is the basis for the discussion in the Roger Company case. 14-5: Are ABC and RCA Accounting Systems Compatible with Lean Management? by Larry Grasso, Management Accounting Quarterly, Vol. 7, No. 1 (Fall 2005), pp. 12-27. This paper provides a critical analysis of several alternative cost systems to traditional cost accounting systems.It then evaluates these alternatives in terms of how they might support, or not, companies that adopt a lean philosophy. An example of nonfinancial performance indicators that support a lean philosophy is offered in Tables 1 and 2. This discussion in the article of the historical development of management accounting systems reinforces in the minds of students the evolving nature of cost system design: as the environment changes, so should management accounting systems. (Note: this reading could also be used in conjunction with Chapter 15 of the text. ) Discussion Questions: . Describe what is meant by the term lean manufacturing. 2. According to th e author of this article, what are the primary uses (or roles) of management accounting data within organizations today? 3. According to the author of this article, what are the primary implications of adopting a lean philosophy in terms of the design of management accounting systems? 4. Explain the importance of the examples provided in Tables 1 and 2 of this article. 14-1 Pet Groom & Clean (PG) David Green is considering his operating statement for 2010, which is displayed in the table below.David is the manager of store number 88, where he began as one of the staff 6 years ago, and through hard work has risen to become manager of the store. The operating report shows his budgeted performance for the year and the actual results, showing a net improvement of 9% over budget–$405. While his results are positive, the small improvement over the budget does not qualify David for the bonus program which awards a $3,000 bonus for store managers who improve their performance over th at of the budget by 20% or more. David manages one store in a 110 store chain of pet grooming stores owned by Pet Groom & Clean Company (PG&C).As for other PG stores, his store is open Monday through Saturday each week; the only service provided at the store is a service in which a pet, dog or cat, is groomed and cleaned, typically while the customer waits. The budgeted price for the service at the beginning of 2010 was $25. Budgeted variable costs were $2 for materials and $9 labor cost per service, as well as other variable costs of $1. 50 per service. Materials are purchased by local store managers, and all staff are hired and supervised by the local store managers.Other budgeted and actual information for 2010 are shown in the table below. David is an ambitious and hard working manager, who has applied himself to the job and has looked for different ways to attract customers and to reduce costs. For example, he noticed that most of the company’s customers brought their pe ts in on Friday, Saturday, and Monday, and the number of customers was significantly lower on Tuesday through Thursday. In fact, David budgeted that 80% of total demand for 2010 would be in the Friday-Monday period, and only 20% would be in the Tuesday-Thursday period.So at the start of 2010 David began a promotion that reduced prices on Tuesday through Wednesday to $18 in an effort to draw in more business during these three days. Also, noting the strong demand in the Friday-Monday period, David decided to increase the price during those days from $25 to $30. An experienced manager, David was able to manage labor costs so that staff were not idle, even on slow days; David scheduled the number of staff to meet the expected demand on each day, and because of his experience (and because his store encouraged appointments), his forecast of demand was usually quite accurate.Thus, labor cost is fairly treated as a variable cost for David’s store. Labor costs consists of 3 staff who are budgeted to work 2,500 hours per year at a budgeted pay rate of $12 per hour, thus the total budgeted labor costs of $ 90,000 (= 3 x $12 x 2,500). Through his careful scheduling of staff, and his effective management style, Dave was able to save labor time so that each of the three employees worked only 2,250 hours in 2010.Other expenses include training expenses –each staff employee is expected to have at least 6 hours of training at the PG&C headquarters during the year; the local store is charged $250 per hour for this training. The local store manager determines the amount of training time for each staff. Other expense also includes advertising expense, which is controlled by the local managers; PG&C recommends that advertising should be about 1% of total sales. Service development is the cost of studying new products for use in he stores and for the study of potential new ways to improve the services provided at PG&C stores. Service development is charged to each st ore based on the allocation rule of 10% of store sales. Accounting, insurance costs, taxes, and management overhead (which includes store rent and manager’s pay) are paid at the home office of PG&C and are allocated based upon a formula which combines store size, store sales, and the age of the store. Employee benefits accrue to staff at the rate of 20% of total pay. These benefit payments are contributed to a 401(k)-type retirement plan for each employee.The result of David’s promotional price for the Tuesday-Thursday period was successful, as total sales increased from 10,000 to 10,500 and the Tuesday-Thursday sales increased from 20% to 30% of total sales. Required: From David Green’s perspective, develop an analysis which explains your performance for the year ended December 31, 2010. [pic] 14-1: STANDARD COSTING IS ALIVE AND WELL AT PARKER BRASS by David Johnsen and Parvez Sopariwala Many people have condemned standard costing, saying it is irrelevant to th e current just-in-time based, fast-paced business environment.Yet surveys consistently show that most industrial companies in the United States and abroad1 still use it. Apparently, these companies have successfully adapted their standard costing systems to their particular business environments. In addition, many academics have contributed ideas on how the standard costing system could be and has been made more responsive to the needs of companies operating in this new economy. 2 The Brass Products Division at Parker Hannifin Corporation (hereafter, Parker Brass), a world-class manufacturer of tube and brass fittings, valves, hose and hose fittings, is one of the tandard costing success stories. It operates a well-functioning standard costing system of which we will show you some highlights. WHAT’S SPECIAL ABOUT THE STANDARD COSTING SYSTEM AT PARKER BRASS? Parker Brass uses its standard costing system and variance analyses as important business tools to target problem areas so it can develop solutions for continuous improvement. Here are some examples of these standard costing-related tools: (Disaggregated product line information. Parker Brass has been divided into Focus Business Units (FBUs) along product lines.Earnings statements are developed for each FBU, and variances are shown as a percentage of sales. If production variances exceed 5% of sales, the FBU managers are required to provide an explanation for the variances and to put together a plan of action to correct the detected problems. To help the process, a plant accountant has been assigned to each FBU. As a result of these steps, each unit is able to take a much more proactive approach to variance analysis. ( Timely product cost information.In the past, variances were reported only at month-end, but often a particular job already would have been off the shop floor for three or more weeks. Hence, when management questioned the variances, it was too late to review the job. Now exception repor ts are generated the day after a job is closed (in other words, the day after the last part has been manufactured). Any jobs with variances greater than $1,000 are displayed on this report. These reports are distributed to the managers, planners or schedulers, and plant accountants, which permits people to ask questions while the job is still fresh in everyone’s mind. Timely corrective action. Because each job is costed (in other words, transferred out of Work-in-Process and into Finished Goods) 10 days after the job has closed, there is adequate time for necessary corrective action. For example, investigating a large material quantity variance might reveal that certain defective finished parts were not included in the final tally of finished parts. Such timely information would allow management to decide whether to rework these parts or to increase the size of the next job.This kind of corrective action was not possible when variances were provided at the end of each month. (An effective control system. Summary reports are run weekly, beginning the second week of each month, to show each variance in total dollars as well as each variance by product line and each batch within the product line. In addition, at the end of each month, the database is updated with all variance-related information. As a result, FBU managers can review variances by part number, by job, or by high dollar volume. (Employee training and empowerment.Meetings are held with the hourly employees to explain variances and earnings statements for their FBU, thereby creating a more positive atmosphere in which the FBU team can work. These meetings help employees understand that management decisions are based on the numbers discussed and that if erroneous data are put into the system, then erroneous decisions may be made. For example, a machine may not be running efficiently. An operator may clock off of the job so that his or her efficiency does not look bad. Because the machine’ s efficiency is not adversely impacted, no FIGURE 1 | |PANEL A: THE FACTS | |Standard production in 1 hour (units) |50 | |Standard batch quantity (units) |2,000 | |Standard hours needed for 2,000 units |40 | |Standard time needed for 1 setup (hours) |4 | |Standard labor rate per hour |$10 | |Actual quantity produced (units) |1,200 | |Actual setup hours for 1 setup |4 | |Actual productive labor hours to make 1,200 units |24 | |Actual labor cost for 28 hours at $10 per hour |$280 | | | |PANEL B: WORKINGS | | Setups |Production |Total | |Standard time per unit: | | | | |Standard setup time ( hours) |4 | | | |Standard production time (hours) | |40 | | |Standard batch size (units) |2,000 |2,000 | | |Hence, standard time per unit (hours) |0. 002 |0. 020 |0. 022 | | | | | | |Standard time charged for 1,200 units: | | | | |Standard time per unit (hours) |0. 002 |0. 020 |0. 22 | |# of units actually produced |1,200 |1,200 |1,200 | |Standard time charged (hours) |2. 40 |24. 00 |26. 40 | | | | PANEL C: SOLUTION | |If SRQV is determined, the journal entry would be: | | | |Work in process [(26. 40)($10)] |$264 | | |SRQV [(4. 00 – 2. 0)($10)] |$16 | | | Accrued payroll | |$280 | |If SRQV is not determined, the journal entry would be: | | | |Work in process [(26. 40)($10)] |$264 | | |LEV [{28. 00 – (1 . 200)(0. 022)}{$10}] |$16 | | | Accrued payroll | |$280 | maintenance is done to that machine, and the inefficiency continues. In addition, because the operator is not charging his/her cost to a job, the cost is being included in indirect labor, and manufacturing costs increase.If the operator had reported the hours correctly, management would have questioned the problem, and the machine would have been fixed or replaced based on how severe the problems were. WHAT NEW VARIANCES HAS PARKER BRASS DESIGNED? In addition to the aforementioned innovations that Parker Brass has made to adapt its standard costing system to its particular business environment, the company has created the following new variances: (The standard-run quantity variance to explain situations where the size of a lot is less than the optimal batch quantity. (The material substitution variance to evaluate the feasibility of alternative raw materials. ( The method variance to assess situations where different machines can be used for the same job. THE STANDARD RUN QUANTITY VARIANCEThe standard run quantity variance (SRQV) represents the amount of setup cost that was not recovered because the batch size was smaller than the earlier determined optimal batch size. Because setup costs are included in the standard labor hours for a standard batch quantity is likely to create an unfavorable labor efficiency variance (LEV). Unless, |FIGURE 2 | |PANEL A: THE FACTS | |Standard price per pound of material Ml |$10 | |Standard price per pound of material M2 |$11 | |Standard material quantity (Ml & M2) to make 100 units (lbs. |2 | |Actual quantity produced (units) |2,000 | |Actual pounds o f M2 purchased and used |43 | | | |PANEL B: WORKINGS | |Standard quantity to produce 2,000 units: | | |Standard material quantity to make 100 units (lbs. ) |2 | |Actual quantity produced (units) |2. 00 | |Hence, standard quantity to produce 2,000 units |40 | | | |PANEL C: SOLUTION | |If MSV is determined, the journal entry would be: | | | |Work in process [(40. 00)($10)] |$400 | | |MEV [(43. 00 – 40. 00)($11)] |$33 | | |MSV [(40. 00)($11 – $10)] |$40 | | | Material—M2 [(43. 0)($11)1 | |$473 | | | | | |If MSV is not determined, the journal entry might be: | | | |Work in process [(40. 00)($11)] |$440 | | |MEV [(43. 00 – 40. 00)($11)] |$33 | | | Material—M2 [(43. 00)($11)] | |$473 | owever, the impact of actual production inefficiencies is separated from setup-related inefficiencies, the LEV reflects the combined impact of these two causes of inefficiencies and is not really useful for taking the necessary corrective action. See Figure 1 for an illust ration of this issue. Panel A shows that standard batch quantity is 2,000 units, the standard production during one hour is 50 units, and, hence, 40 standard hours are needed to produce 2,000 units. In addition, it takes four standard and actual hours to set up one batch. Panel B reveals that standard hours for setup and production labor are 0. 002 and 0. 020 per unit, respectively, for a total of 0. 022 per unit.In addition, because actual quantity produced is 1,200 units, the total standard hours chargeable to these 1,200 units is 26. 40 [(0. 002 + 0. 020)(1,200)]. Finally, Panel C shows the recommended journal entry whereby an SRQV is created. This SRQV represents the unrecovered setup costs because 1,200 units were manufactured instead of the standard batch quantity of 2,000 units. Thus, because the company expected to spend $40 [(4 hours)($10 per hour)] on each setup, the setup cost relating to the 800 (2,000 – 1,200) units not produced, or $16 U, is considered an unfavo rable SRQV or the cost of producing small lots. On the other hand, using traditional standard costing, this amount of $16 U would most likely have been categorized as an LEV.Yet there really is no LEV,3 and the variance of $16 U attributed to labor efficiency is merely the unabsorbed portion of the setup cost attributable to the 800 units that were not produced. The advantages of extracting the standard run quantity variance are many. First, the SRQV ordinarily would be included in the LEV and could provide a misleading impression of labor’s efficiency. Second, because just-in-time practices recommend smaller lots and minimal finished goods inventory the SRQV is essentially the cost of adopting JIT Third, to the extent that setup cost and the cost of carrying inventory are competing undesirables, a determination of the cost of small lots could be used in the trade-off analysis against the cost of holding and carrying inventories.Finally, to the extent that this variance can b e separated for each customer, it would reveal how much of a loss was suffered by allowing that customer to purchase in small lots. Such information could be used in future bids. If a customer’s schedule required a smaller lot, then that customer’s job cost could be enhanced appropriately. THE MATERIAL SUBSTITUTION VARIANCE The material substitution variance (MSV) assumes perfect or near perfect substitutability of raw materials and measures the loss or gain in material costs when a different raw material is substituted for the material designated in the job sheet. Substitutions may be made for many reasons. For example, the designated material may not be available or may not be vailable in small-enough quantities, or the company may want to use up material it purchased for a product that it has since discontinued. The usefulness of MSV is discussed in Figure 2. Panel A shows that both materials, M1 and M2, can be used to manufacture a product, and it is assumed that t wo pounds is the standard input per unit for both materials. Material M1 is the material designated in the job sheet, but material M2 can be substituted for M1. The standard cost of M2 ($11 per lb. ) is higher than that for M1 ($10 per lb. ), and M2 is used because M1 is currently not available and a valued customer needs a rush job. 4 Panel B reveals that the standard quantity needed to manufacture 2,000 units is 40 lbs.For the purposes of this illustration, we assume that material price variance (MPV) is detected when material is purchased (in other words, the material account is maintained at standard cost). Hence, Panel C reveals the recommended journal entry whereby MSV is created. The MSV represents the benefit obtained by substituting a more expensive material (M2) for the less expensive material (M1) and hence represents the loss through substitution. The MSV is $40 U because (1) 40 lbs. is the standard quantity of M1 and M2 needed to manufacture 2,000 units, and (2) M2 cost s $1 more per lb. than M1. In addition, the material efficiency variance (MEV) is $33 U because 43 lbs. instead of the standard quantity of 40 lbs. ere used to manufacture 2,000 units. In contrast, the traditional standard costing system might ignore the substitution, and the job might be charged with the standard cost of using 40 lbs. of M2. In that scenario, the job would cost $40 more and could have an impact on customer profitability analysis even though the customer did not request the substitution. Now Parker Brass is evaluating an extension that would be to relax the simplifying assumption that both materials require the same standard input. See Figure 3. It adopts the facts from Figure 2 except that 1. 9 lbs. of material M2 are required for 100 units instead of 2 lbs. for both materials in Figure 2.In this situation, we have two MSVs, one for the price impact called â€Å"MSV-Price† and the other for the efficiency impact, called â€Å"MSV-Efficiency. † Panel C shows the recommended journal entry whereby two MSV variances are created. First, MSV-Price is unfavorable because M2, a more expensive material, is being substituted for M1. As a result, MSV-Price is $40 U as material M2 costs $1 more per lb. than material M1. On the other hand, as you might expect, the MSV-Efficiency is favorable because only 1. 9 lbs. of M2 are required to make 100 units as compared to 2 lbs. required for M1. Thus, MSV-Efficiency is $22 F because each batch of 100 units requires 38 lbs. of M2 against 40 lbs. of M1. The net result of the MSV variances is $18 U [(38 lbs. )($11) – (40 lbs. ($10)], suggesting that, barring any other complications, the substitution of M2 for M1 is not likely to be profitable under existing circumstances. Finally, the MEV using material M2 is $55 U, reflecting the fact that 43 lbs. of material M2 actually were used whereas only 38 lbs. of material M2 should have been used. This variance could have been caused by the fact that M 2 was a new material and required initial learning and other nonrecurring costs. In such a case, the standard quantity of 38 lbs. for 2,000 units may not need to be changed. On the other hand, the MEV variance may have been caused because of the inherent difficulty in working with material M2. In such a case, the standard of 38 lbs. for 2,000 units may need to be amended.In contrast, as was shown in Panel C of Figure 2, the journal entry that is likely to be made using traditional standard costing would completely ignore the impact of material substitution and would likely inflate the cost of this particular job. The advantages of extracting the MSV are as follows. First, determining MSV lets the company assign the MSV cost to a customer whose rush job may have required using a more expensive material like M2. On the other hand, the MSV could be written off if the substitution were made to benefit the company. Also, creating an MSV and breaking it up into its price and efficiency co mponents allows the company to evaluate whether the substitution of M2 for M1 is a profitable one.While all these calculations can also be performed off the accounting system, creating the MSV makes the process a part of the system so a history of such evaluations is available for future reference. METHOD VARIANCE A method variance occurs when more than one machine can be used to manufacture a product. 5 For example, a plant may have newer machines that it normally would expect to use to manufacture a product, so its standards would be based on such new machines. Yet the same plant may also keep, as backups, older and less efficient machines that also could manufacture the same product but would require more inputs in the form of machine and/or labor hours. For this example, we assume that labor hours and machine hours have a 1:1 relationship. 6 As FIGURE 3 | |PANEL A: THE FACTS | |Standard price per pound of material M1 |$10 | |Standard price per pound of material M2 |$11 | |Standa rd material quantity of M1 to make 100 units (lbs. ) |2 | |Standard material quantity of M2 to make 100 units (lbs. ) |1. | |Actual quantity produced (units) |2,000 | |Actual pounds of M2 used |43 | | | |PANEL B: WORKINGS | | |Material M1 |Material M2 | |Standard quantity to produce 2,000 units: | | | |Standard material quantity for 100 units (lbs. ) |2 |1. | |Actual quantity produced (units) |2,000 |2,000 | |Hence, standard quantity to produce 2. 000 units |40 |38 | | | |PANEL C: SOLUTION | |If MSV is determined, the journal entry would be: | | | |Work in process [(40. 00)($10)] |$400 | | |MEV [(43. 00 – 38. 00)($11)] |$ 55 | | |MSV-Price [(40. 0)($11 – $10)] |$ 40 | | |MSV-Efficiency [(40. 00 – 38. 00)($11)] | |$ 22 | |Material—M2 [(43. 00)($11) | |$473 | | | | | |If MSV is not determined, the journal entry might be: | | | |Work in process [(38. 0)($11)] |$418 | | |MEV [(43. 00 – 38. 00)($11)] |$55 | | |Material—M2 [(43. 00)($11 )] | |$473 | a result, the method variance becomes pertinent because the traditional LEV from operating the older machines could potentially include the following two impacts. First, an older machine may need additional labor hours to perform the same task, and the additional hours would be reflected in the LEV. Second, the LEV would include the workers’ efficiency or lack thereof on the older machine.We evaluate the usefulness of the method variance in Figure 4. Panel A shows that both machines, A and B, can be used to manufacture a product. Machine A is the more efficient machine and the one used for setting the standard time. Machine B is the backup. Panel B shows that the standard machine hours needed to produce 1,800 units are 30 on machine A and 36 on machine B, which can be compared to the 35 hours actually used to manufacture 1,800 units on machine B. Panel C of Figure 4 reveals the recommended journal entry whereby a method variance is created. This method variance represents the loss incurred by substituting the backup machine B for machine A.Because machine B’s standard of 36 labor hours is greater than machine A’s standard of 30 hours, there is an unfavorable method variance of $120. On the other hand, because machine B took 35 hours to manufacture 1,800 units instead of its standard of 36 machine hours, there is a favorable LEV of $20. As you can see, while there was a loss incurred by using machine B instead of machine A, the actual usage of machine B was efficient. In contrast, assuming the traditional costing system recognizes that machine B was used, it is likely to charge the job $720 [(36 hours) x ($20 per hour)] instead of the $600 [(30 hours) x ($20 per hour)] that would have been charged if machine A had been used. Here are the advantages of extracting the method variance.First, the impact of the method variance ordinarily would be included in the LEV and would provide a misleading impression of labor’s productivity. Sec ond, the method variance could be used to isolate the additional cost that was incurred during the year by operating machine M2. This could permit a trade-off between purchasing a new machine |FIGURE 4 | |PANEL A: THE FACTS | |Machine A: standard time needed for one unit (minutes) |1. 0 | |Machine B: standard time needed for one unit (minutes) |1. | |Labor rate per hour |$20 | |Actual quantity produced (units) |1,800 | |Actual labor hours used to make 1,800 units using machine B |35 | |Actual labor cost |$700 | | | |PANEL B: WORKINGS | | |Machine A |Machine B | |Standard hours needed for 1. 800 units on: | | | |Standard time needed for one unit (minutes) |1. 0 |1. | |Actual quantity produced (units) |1,800 |1,800 | |Hence, the standard hours needed |30 |36 | | | |PANEL C: SOLUTION | |If method variance is determined, the journal entry would be: | | | |Work in process [(30. 00)($20)] |$600 | | |Method variance [(36. 00 – 30. 00)($20)] |$120 | | |LEV [(36. 00 – 35. 0)($2 0)] | |$ 20 | |Accrued Payroll | |$700 | | | | | |If method variance is not determined, the journal entry might be: | |Work in process [(36. 00)($20)] |$720 | | |LEV [(36. 00 – 35. 0)($20)] | |$ 20 | |Accrued Payroll | |$700 | and continuing to maintain the older machine, especially if tight delivery schedules are not the norm. Finally, the product cost would still be based on the standards for the more efficient new machine, and the job would not be charged a higher cost merely because a less efficient machine was used. That means a job that was completed on the older machine would not be penalized. 7 RELEVANT, NOT IRRELEVANT As you can see from the Parker Brass examples, standard costing has not become irrelevant in the new rapid-paced business environment.Parker Brass not only has managed to modify its standard costing system to achieve disaggregated and timely cost information for timely corrective action, but it has also designed additional variances to determine how set up time relating to small batches should be absorbed, whether an alternative raw material is economically feasible, and how a product’s cost might reflect the use of alternate production facilities. 1Studies reporting on the widespread use of standard costing in the U. S. , the U. K. , Ireland, Japan, and Sweden are summarized by Horngren, Foster, and Datar on page 225 of the 9th edition of their cost accounting text published by Prentice-Hall in 1997. 2C. Cheatham, â€Å"Updating Standard Cost Systems,† Journal of Accountancy, December 1990, pp. 57-60; C. Cheatham, â€Å"Reporting the Effects of Excess Inventories,† Journal of Accountancy, November 1989, pp. 131-140; C. Cheatham and L. R.Cheatham, â€Å"Redesigning Cost Systems: Is Standard Costing Obsolete,† Accounting Horizons, December 1996, pp. 23-31; H. Harrell, â€Å"Materials Variance Analysis and JIT: A New Approach,† Management Accounting, May 1992, pp. 33-38. 3The standard production hou rs needed for 1,200 units were 24 [(1,200) x (0. 020)], whereas the actual labor hours used have been intentionally set at 24. In addition, the standard and actual labor hours for one setup have been intentionally set at four. 4An alternative scenario could have the cost per pound of M2 ($9 per lb. ) being lower than that for M1 ($10 per lb. ) because M2 is used to manufacture other products as well and the company obtains quantity discounts for large purchases of M2. To a limited extent, the rationale behind the method variance is similar to that for the material substitution variance (MSV) discussed earlier. 6That is, the machine does not work independent of the worker. Hence, the labor hours spent on the machine are the same as the number of hours the machine was operated. 7A similar reasoning is applied in situations wherein the routing for the manufacture of a product is amended during the year, possibly because the customer wants an additional processing step. In such a case, the resulting process variance could be charged to the customer. 14-2: Redesigning Cost Systems: Is Standard Costing Obsolete? By Carole B. Cheatham and Leo B. Cheatham, Professors at Northeast Louisana University.SYNOPSIS: Since the early 1980s standard cost systems (SCSs) have been under attack as not providing the information needed for advanced manufacturers. In spite of its critics, SCSs are still the system of choice in some 86 percent of U. S. manufacturing firms. This paper discusses the criticisms of SCSs that (1) the variances are obsolete, (2) there is not provision for continuous improvement, and (3) use of the variances for responsibility accounting result in internal conflict rather than cooperation. Updates for SCSs in the form of redesigned variances, suggestions for dynamic standards, and refocused responsibility and reporting systems are presented. The compatibility of SCSs and its main competitor as a cost system, activity-based costing (ABC), is examined.The auth ors discuss when it is appropriate to use ABC or SCS or some combination of the two. Since Eli Goldratt’s (1983) charge that cost accounting is the number one enemy of productivity in the early 1980s, traditional cost systems have been under attack. Although Goldratt subsequently softened his stand to say that cost rather than accounting was the culprit (Jayson 1987), others were quick to jump on the bandwagon to condemn the cost systems in use. New systems were proposed of which the most popular was activity-based costing (ABC). In spite of all the criticism, a 1988 survey shows 86 percent of U. S. manufacturers using standard cost systems (Cornick et al. 988). A survey by Schiff (1993) indicates that 36 percent of companies use activity-based costing, but only 25 percent of those use it to replace their traditional cost system. It would seem that only about 9 percent (25 percent of the 36 percent) of companies are using ABC as their main system while the vast majority use a standard cost system (SCS). This is not to say that traditional SCSs could not benefit from being updated. However, accountants in industry (as well as academia) seem unaware that a redesigned SCS can provide the information they need, and that updating their present system is an easier process than adopting a new system.The SCS is one vehicle of articulation among managerial, financial and operations accounting, and it is a control system while the candidates for its replacement typically are only cost accumulation systems. In this article the major criticisms of SCSs are examined along with ways that the weaknesses can be remedied or ameliorated. The criticisms relate to the use of specific variances, the lack of provision for continuous improvement, and the fact that administration of the system results in internal competition rather than cooperation. The appropriate use of ABC systems in conjunction with SCSs is also discussed. UPDATING THE VARIANCES IN AN SCSConcerning the var iables analyzed in an SCS, most criticisms center on the overemphasis on price and efficiency to the exclusion of quality. Other criticisms center on the use of the volume variance to measure utilization of capacity while ignoring overproduction and unnecessary buildups of inventory. In making such charges, critics fail to realize variance analysis is not â€Å"locked-in† to a particular set of variables. Standards are only benchmarks of what performance should be. The particular variables used can be changed as the need arises. The following discussion focuses on concerns of the new manufacturing environment—raw material ordering and inventory levels, quality, production levels, finished goods inventory levels and completion of sales orders.Variances Pertaining to Raw Materials The set of variances in Figure 1 centers on the function of raw material ordering and inventory levels (Harrell 1992). The Raw Material Ordering Variance gives information about the effectivene ss of suppliers. It contrasts the raw materials ordered with the raw materials delivered (purchased). Any variation may be considered unfavorable because the goal is to have orders delivered as placed. Too much delivered will result in unnecessary buildups of raw material stocks. Too little delivered is unfavorable because production delays may result. The Price Variance in Figure 1 is the traditional price variance computed on materials purchased.This variance has been criticized on the grounds that over-emphasis on price leads purchasing managers to ignore quality. However, price is a legitimate concern that should not be overlooked. This system also uses a Quality Variance (presented in a following section). If low quality materials are purchased in order to gain a low price, this will result in an unfavorable Quality Variance. Variances Pertaining to Material Inventories and Efficient Use The set of variances in Figure 2 focuses on raw material inventory levels and quantity or e fficiency of material use. The Raw Materials Inventory Variance (Harrell 1992) shows either more material purchased than used (an inventory buildup) or more material used than purchased (an inventory decrease).With the JIT philosophy, purchasing more than used causes an unfavorable variance, while decreasing previous buildups causes a favorable variance. The Efficiency Variance in Figure 2 is based on the difference between the actual pounds of material used and the standard amount for total production. The traditional Efficiency or Quantity Variance is the difference between the actual pounds of material used and the standard amount for good production. The traditional variance is actually as combination of quality and efficiency factors. As can be seen in the next section, quality is better treated in a separate variance. Variances Pertaining to Production Levels and QualityThe next set of variances (Figure 3) turns from input analysis to output analysis and relates to production levels and quality. All cost factors are included in the â€Å"standard cost per unit† including labor and overhead. The Quality Variance is the standard cost of units produced that did not meet specifications (the difference between total units produced and good units produced). In traditional variance analysis, this variance is buried in the efficiency variances of the various inputs. Ignoring labor and overhead, suppose a company used two pounds of material per finished unit at a standard cost of $1. 00 per pound. Further assume they used 4,900 pounds in the production of 2,500 total units, of which 100 were defective.Traditional variance analysis would show an unfavorable Efficiency Variance of $100 computed on the difference between the standard cost of the 4,800 pounds that should have been used to produce the 2,400 good units and the 4,900 pounds actually used. A better breakdown of the traditional variance shows a favorable Efficiency Variance of $100 and an unfavorab le Quality Variance of $200. The Production Department did use only 4,800 pounds to produce 2,500 units that should have taken 5,000 pounds. The fact that some of these units were defective should appear as a Quality Variance, as it does in this analysis. The Quality Variance is $200 unfavorable representing $2. 00 per unit invested in 100 defective units.This analysis also yields a Production Variance based on the difference between the standard cost of good units produced and the scheduled amount of production. The goal in advanced manufacturing environments is to produce exactly what is needed for sales orders (scheduled production). A variance from scheduled production either way is unfavorable because too much production results in unnecessary buildups of inventory while too little results in sales orders not filled. As is the case with the Raw Material Inventory variance, the critical factor is the cost of the capital invested in excess inventories. It is desirable to highligh t this cost in responsibility reports by applying a cost of capital figure. o the excess (Cheatham 1989). For simplicity’s sake, the above illustrations of input analysis pertain to materials. Labor and volume-related variable overhead can be analyzed in a similar manner. Since there is no difference between labor purchased and labor used in production, the labor input variances would include the traditional Rate Variance and the updated Efficiency Variance. Other than showing a budget variance for the various elements of fixed overhead, there is no point in further analysis in terms of a Volume Variance. The updated Production Variance serves the same purpose in a far better fashion. VARIANCES PERTAINING TO SALES ANALYSISThere are various ways to analyze sales. One method is to use price, mix and volume variances. A further analysis is to break down the volume variance into market size and market share variances. The analysis in Figure 4 is presented because it articulates w ell with the output analysis for production. The sales variances indicate customer service as well as the cost of lost sales. The variances use budgeted contribution margin as a measure of opportunity cost. The Finished Goods Variance indicates the opportunity cost associated with orders completed but not shipped. A delay in shipment causes a loss because of subsequent delay in receiving payment.The Sales Order Variance represents the opportunity cost associated with sales orders that could not be filled during the time period for whatever reason—lack of capacity, scheduling problems, etc. The above discussion presents a variety of variances that are not used in a traditional standard cost system. The variances can be used for control purposes alone or can be integrated into the financial accounting records (Cheatham and Cheatham 1993). The system is not intended to be a generic solution for any company’s needs. It is intended to demonstrate that, with a little creativ ity, it is possible to redesign SCSs to measure variables that are important to a particular company in today’s manufacturing environment. UPDATING THE SCS FOR CONTINUOUS IMPROVEMENTIn a manufacturing environment in which continuous improvement is a goal of most companies, the charge has been made that SCSs do not encourage positive change. However, static standards based on engineering studies or historical data are not an essential part of an SCS. Standards can be adjusted to be dynamic, or changing, by any of several methods. Using Prior Periods’ Results as Standards One way to have dynamic standards is to use last period’s results as standards. This idea has been advocated in the past as a way for small business to have the benefits of standards without the expense of engineering studies (Lawler and Livingstone 1986; Cheatham 1987).The objection can be made that last period’s results may not make very good standards if last period was unrepresentative for whatever reason. If this is the case, last period’s results can be modified. Another variation on using past performances as standards is the use of a base period. Comparisons can be made with the base period and all subsequent periods, if desired. Boer (1991, 40) describes a system of using a base year as a â€Å"pseudo flexible budget† from which unit costs are developed. He comments that the system â€Å"encourages continuous improvement and never implies that a level of performance is adequate. Instead, it encourages managers to improve continuously. † Still another variation on using prior periods’ results as standards is the use of best performance-to-date (BP).BP is a rigorous standard for self-improvement because it motivates workers as well as managers to exceed all past performance. Using Benchmarking Although past performance costs may be used in a variety of ways to formulate dynamic standards, any such system has an inward focus. Benchma rking looks outside the firm to the performance of industry leaders or competitors. Benchmarking typically is applied to performance measures rather than standard costs. However, using the performance of industry leaders as a standard provides motivation to become world-class in much the same fashion. The primary barrier to use of benchmarking standards is, of course, lack of information. Edward S.Finein (1990), former vice president and chief engineer of Xerox, lists the following sources of information when using benchmarking for performance measures: (1) external reports and trade publications; (2) professional associations; (3) market research and surveys; (4) industry experts; (5) consultants’ studies; (6) company visits; and (7) competitive labs. In the absence of hard information, an approach may be taken to estimate the performance of industry leaders. Trying to meet the supposed standards of industry leaders (or other competitors) can have results that are useful as long as the company is striving toward beneficial goals. Using Moving Costs Reductions Still another way to have dynamic standards is through use of predetermined cost reductions. Horngren et al. 1994) describe a system of what they call a â€Å"continuous improvement standard cost† or a â€Å"moving cost reduction standard cost. † This system reduces the standard cost by a predetermined percentage each time period, such as a one percent reduction in standard cost per month computed by setting the new standard at 99 percent of the previous month’s standard. The question that their system raises is how to determine the amount of the cost reduction. One possibility is the use of cost improvement curves. Cost improvement curves are a new variation of the old learning curve idea. Learning curves were based on reduction of direct labor costs due to learning by the workers.With a large percentage of product conversion being brought about by automated equipment rather than laborers, potential cost reductions relate to the experience factor for the organization as a whole which may be measured by cost improvement curves. Pattison and Teplitz (1989) calculate the new rate of learning for an organization that replaces labor with automated equipment as: Ratenew = Rateold + (1 – Rateold) * L * R where Rateold is the rate of learning for the old system, L is the proportion of learning attributed solely to direct labor stated as a percentage, and R is the proportion of direct labor being replaced. The formula actually reduces the learning rate applicable to labor only, the assumption being that workers can learn but not machinery.An updated version of the formula is needed which encompasses factors such as managers’, supervisors’ and engineers’ experience. The Japanese stress the formula 2V=2/3C, or if volume is doubled, the cost should be two-thirds of what it was originally. This formula equates to a 67 percent learning cur ve which represents a high degree of learning. However, their attitude is that learning does not just happen—it should be made to happen. Using Target Costs Another idea borrowed from the Japanese is the use of target costs based on the market. Target costs are used in Japan primarily for new products that are still in the design stage. The idea is to set a cost that is low enough to permit a selling price that is viable on the market.The price is the starting point for calculating costs, and the various costs are backed out from the price. Typically, the target cost is very low. Hiromoto (1988) describes the use of target costs at the Daihatsu Motor Company. First, a product development order is issued. Then an â€Å"allowable cost† per car is calculated by taking the difference between the target selling price and the profit margin. Then each department calculates an â€Å"accumulated cost† based on the standard cost achievable with current technology. Finally , a target cost is set somewhere between the allowable and accumulated cost. All this takes place before the product is designed.The design stage typically takes three years. When the product is finally in production, the target cost is gradually tightened on a monthly basis. Later the actual cost of the previous period is used to drive costs down further. Market-based target costs have a strong appeal on a basis for standard costs because they focus on the customer rather than on internal engineering capabilities. However, using target costs is easiest with new products because as much as 90 percent of product costs are set in the design stage (Berliner and Brimson 1988). The way a product is designed determines the way it has to be manufactured and sets the stage for further cost reductions.Standard costs do not have to be static. Dynamic standards can be formulated using a variety of methods including past performance, industry leader’s performance, or target costs based o n predetermined reductions or the market. Market-based target costs have the most intuitive appeal because the focus is on the future and on the customer. However, they may work better for new products rather than for established products. UPDATING MANAGEMENT RESPONSIBILITY AND REPORTING Besides revamping the SCS to better reflect today’s concerns in terms of variables to be measured and continuous improvement, there needs to be improved reporting of variances.Old reporting systems tended to foster internal competition and arguments about whose department was to blame for unfavorable variances. There needs to be an attitude of cooperation among workers, managers and departments. Revised lines of responsibility used with new plant layouts are improving some of the competitive attitudes that once prevailed in manufacturing organizations. Plants that used to feature â€Å"push through† production with large masses of raw materials and semi-finished product moving from one process to another are changing to work cells or similar arrangements. The work cell arrangement features equipment that can process a product from start to finish. Workers in the work cell typically can operate all or several types of machinery.This leaner â€Å"pull through† approach allows a sales order to be rapidly processed within the work cell which decreases cycle time and holds work in process and finished goods inventories to a minimum. The work cell arrangement allows a team of workers to be responsible for the entire product and reduces the likelihood that defects will be passed along to the next department. Along with the work cell arrangement many companies are decentralizing functions such as engineering and making these personnel responsible for a particular work area or product line. With the decentralization, there is more focused responsibility. Decentralization and a team approach to production eliminate many conflicts that once existed.In addition to the new attitudes about responsibility, there needs to be improved reporting. The variances outlined in this paper can be reported in two types of management reports. The report illustrated in Fig. 5 shows the trade-offs between price, efficiency and quality. This type of report can be done on a plant level or department level as well as a work cell level. The price variance for work cells or departments should be computed on material used rather than purchased because this gives a better picture of the trade-offs involved. Upper-level management reports should probably show both types of price variances if there are significant differences between purchases and use.The report illustrated in Fig. 6 shows the effects of variances related to inventories. Raw material excesses at cost, related to both current and past purchases, are listed along with the related cost of capital. In this case it is assumed the excess was held the entire month and the cost of capital was one percent. Work-i n-Process excesses are measured in terms of the Production Variance. This variance measures the difference between scheduled and actual production. Presumably if there were excesses from the previous month, there was an adjustment made in the scheduled production. Cost of capital figures show the effect of holding these excess inventories.In the case of Finished Goods, the crucial factor is the opportunity cost of sales orders not filled measured by the lost contribution margins. Therefore, if orders are completed but not shipped or there is an inability to fill a sales order because of lack of capacity, this is indicated by the Finished Goods Variance or the Sales Order Variance. The illustration assumes a favorable Finished Goods Variance because more sales orders were filled than units produced, indicating a decrease in previous finished goods stock. Although a reporting system such as that illustrated in Figures 5 and 6 may not eliminate all conflicts, it is certainly