Outsourcing in the Hotel Industry

Outsourcing in the Hotel Industry 1.1 Introduction Outsourcing is one of the growth industries of our time (Winterton 2000).   Today, the outsourcing of selected organisational activities is an integral part of corporate strategy (Lankford and Parsa 1999).   Outsourcing has become a significant facet of modern hotel management (Sieburg 1992).   Unfortunately there is shortage of prior research in the hospitality management literature concerning outsourcing or maintaining internally business processes in hotel sector. This paper seeks to present critical analysis of factors, varieties, aims and results of outsourcing within hotel industry. The first chapter will begin with stating the problem which is vital in hospitality industry.   It will then continue with the presentation of background literature and the purpose of study.   Thirdly, rationale will be explained. Subsequently research questions will be raised.   Furthermore a definition of terms will identify the key words within the study and how the writer defines them within it.   A number of limitations will indicate specific areas in which the research will not be definitive.   Finally a summary of the chapter will be provided indicating the main points discussed. 1.2 Statement of the Problem Historically as the kind of contractual relations and commercial activity outsourcing has appeared in 1962 when the successful businessman Ross Perro, whose firm EDS carried out calculations for banks, renting night time on mainframes, has brought  «General Motors » annual economy in 44 % more than 4 billion dollars (Nureev 2002).   Over the last few years, the idea of outsourcing noncore business functions has gained huge popularity (Winterton 2000).   Nowadays different types and forms of outsourcing are putting into practice and developing in various businesses. Tourism in its turn is a rapidly growing phenomenon and has become one of the largest industries in the world.   But also hospitality industry is very unique, and very sensitive to every internal and external changes.   And such innovation as outsourcing should have affect the industry in general and the development of hotel sector in particular. As it has been mentioned above, outsourcing within hotel industry has been the subject of minimal literature research.   And a question: whether outsourcing will work in hotels and make notable profit still opened for reasoning and conclusions.   And if yes or no, how it will be affected by financial crisis which came less than year ago.   Just that very case of crisis can cardinally change the relation of business to outsourcing.   After all in a crisis situation it is more important not tactical, but the strategic part of the business. In general, up to now the quantity of questions more than answers.   And it is very important to understand, why hotels outsource.   And what form for them is most attractive and far-sighted. 1.3 Background Literature According to Lankford and Parsa (1999), outsourcing is defined as the procurement of products or services from sources that are external to the organisation.   This leads to allowing outsiders to take responsibilities for some aspects of financial management (Winterton 2000).   After definition and explanation of previous authors, it is possible to say that outsourcing is something similar to service and support services though it is differs essentially from them.   It is not short-term service, on once, given by one company to another.   Outsourcing gives longer support, not single.   Outsourcing is transfer of certain processes or functions from one company to another.   The Company recipient should specialise in this branch.   From here it is possible to create one of outsourcings principles:  «I leave to myself only that I can do better than others, I give to the external executor that it does better than others ».   Other principles and the most practical ty pes and forms of outsourcing will be considered in second chapter. Outsourcing has become an important strategic tool in todays competitive business environment (Zhu, Hsu and Lillie 2001).   As any tool of business it has its own advantages and disadvantages. Outsourcing offers several advantages, such as enabling existing staff to concentrate on core activities on organisational specialisations, focusing on achieving key strategic objectives, lowering or stabilising overhead costs, and thereby gaining cost advantage over the competition, providing flexibility in response to changing market conditions, and reducing investment in high technology (Kliem, 1999; Quinn 1999 cited Kakabadse, N. and Kakabadse, A. 2000).   Thus it is possible to ear-mark three big advantages of outsourcing in general, not only for hotels and hospitality industry.   The first advantage outsourcing allows to pay almost all attention and resources to the core direction of the business and to charge to foreign company noncore functions.   Thereby, company will have competitive advantage.   Also redistribution and optimisation of human resources of the company will be possible.   The second advantage is decreasing of material input.   Very often attractio ns of the foreign executor essentially cheaper than the maintenance of own department for execution of certain job.   It is caused by lower price cost of outsourcers job since the chosen direction is its specific specialisation.   And the third advantage using outsourcing, companies can get technologies and the decisions of higher quality level which might be absent at the organisation.   Besides this there is a possibility of using specialised functions which only experts can perform.   Also it is important to remember about transfer of all responsibilities of the assigned functions to outsourcer. But besides these pluses there are also some disadvantages of outsourcing.   Schniederjans and Zuckweiler (2004) introduce very helpful summary of those.   They suggested that it is possible to divide this lacks in four groups: Managerial implications. Such as loss of control over critical functions and suppliers. Financial implications. Such as failure to realise cost savings. Operational implications. Such as dependence on suppliers and responsibility for quality of their work. Human resource implications.   Such as lower morale of permanent employees. Thus after confrontation these disadvantages and meaning of the process it is possible to ear-mark one of the most important shortcoming of outsourcing.   It is possible to criticise it for loss of workplaces.   As the result of such process, the company can release many workplaces, replacing the in-house workers with more professional (or cheaper) from other company.   As the result of this, first of all, workers are getting in the worst position because very often there is no labour contract or any guarantees about their future job between them and the employer. Remembering all the minuses, lacks and disadvantages but aspiring to benefits, pluses and advantages of outsourcing hotels should understand the reasons, right time and business situation when to outsource.   According to William and Faramanz (1999), firms should consider outsourcing when it is believed that certain support functions can be completed faster, cheaper, or better by an outside organisation.   Tasks that are not core competencies of the hotel human resources, payroll and benefits, information systems, even food service are ripe for being contracted out.   Moreover, Blake (1997) gave three main reasons for organisations for turning to outsourcing: Where others do it better To focus on their core business To reduce their cost base. Therefore the hotels should use outsourcing to concentrate on the primary activity, instead of to be engaged in management of dining rooms, cleaners or catching of computer viruses.   Another factor to exploit the outsourcing within hotel industry is the situation when the external provider of services is capable to provide economy and/or higher level of services because of specialisation or cheaper labour.   Outsourcing can help to save resources of the hotel. One more not very visible objective to use outsourcing within hotels is to study from the service provider. Consequently, Milgrom and Roberts (1992 cited Lamminmaki 2005) said that understanding hotels motivation for outsourcing is important, as organisation is as important as technology, cost, and demand in determining success. To conclude this part of the chapter, it is useful to remember statement of Kotler (1988): â€Å"Entrust others that what they will make easier and more cheaply†. 1.4 Purpose of Study The purpose of this study was to examine factors that influence on hotel sector for outsourcing or maintaining internally business processes.   By analysing existing studies related to outsourcing in general, it can be valuable in applying to the outsourcing within hotel sector where there is little research.   In additional, there are few management accounting studies concerned with the hotel sector (Collier and Gregory 1995).   Furthermore, the research will evaluate advantages and disadvantages of using outsourcing for hotels.   This study will critically assess the innovative part of outsourcing for hotels and what type and form of internal business processes is going to be more successful for them. Specifically, literature will be within the hospitality sector.   Moreover, how will outsourcing affect costumers and their needs will be analysed. Finally, based on the findings of the study, solutions for the hotel sector will be provided. 1.5 Rationale This research is about outsourcing or internal business processes within hotel industry.   And it is significant for several reasons: Hospitality industry is one of the fastest developing industries.   And In many countries, tourism industry is the leading industry, which stimulates development of other sectors. Outsourcing relatively new business idea but it has been used already in numerous sectors of economy including hospitality. Using outsourcing or internal business processes hotels can cut their production cost. There is a high potential to improve quality of hotels services. Most of the hotels have to find some new ideas for their development and reduction of risks during the financial crisis period.   And outsourcing could be one of them. 1.6 Research Questions This study aim is to answer following Research Questions: What is considered ‘outsourcing process within the hotel sector? To begin with, it is vital for the research to explain and to make it clearer, what is outsourcing in todays economy.   Also it is important to elucidate if this term is innovative method for the business or it is just a new expression of existing already processes within hotel sector. What are the advantages and disadvantages of outsourcing for hotel sector? As any type of business relationship, outsourcing should have not only advantages and positive moments but also disadvantages and obstacles.   To be more objective, it is vital to compare both to be able to make a conclusion whether outsourcing is a big opportunity for the hotels or it will bring more difficulties rather than profitability. In addition, it is significant to understand the specific type of action of outsourcing within hotels and its the most widespread forms What are the factors for outsourcing or maintaining internally business processes within hotel sector? Internal and external factors of using outsourcing for the hotels will be examined.   And the research will emphasise specific reasons of starting using outsourcing within hotel industry.   Moreover, ‘financial crisis as one of the factors will be discussed. What are the main aims of outsourcing within hotel sector? And last but not least, it will be achievable to acquire the main aims and results of outsourcing within hotel sector.   Additionally, after analysing the interview and questionnaires, preferred types and the specific benefits from outsourcing for the hotels will be seen. 1.7 Definition of Terms Core business: Core business means the commercial activity from which the company derives most of its profits (www.resourceconservation.mb.ca).   According to Alexander and Yong (1996), there are four main points to define ‘core activities: Activities which traditionally performed in-house; Activities which critical to business performance; Activities which create current or potential competitive advantage; Activities which will drive further growth, innovation, or rejuvenation. Financial Crisis: There is no precise definition of financial crisis, but a common view is that disruptions in financial markets rise to the level of a crisis when the flow of credit to households and businesses is constrained and the real economy of goods and services is adversely affected (opencrs.com). Hotel Sector: Outsourcer:The service provider (outsourcer) is responsible for delivering the contracted services, resolving day-to-day operational problems and managing the request and implementation of routine changes in accordance with the framework of contracts, standards (Kent 1998). Outsourcing: Greaver (1999) defined outsourcing as the act of transferring some of an organizations recurring internal activities and decision rights to outside providers, as set forth in a contract.   Later Beaumont and Sohal (2004) explained outsourcing as having work that was formerly done inside the organisation performed by an external organisation.   The vendor (hereafter the outsourcer and outsource are, respectively, referred to as vendor and client) may be an independent entity or a wholly owned subsidiary. 1.7 Limitations This study will limit itself to surveying and interviewing hotels only from two countries Greece and Russia and most probably will not represent the complete situation of European hotel industry as well as worldwide hotel industry.   Moreover it will not represent the whole situation even in both chosen countries for the reason that researcher sampled only those who have agreed to be sampled. The convenience sampling procedure decreases the generalisation of findings.   This study cannot be generalised to populations but may relate to other defined contexts with caution. For the purpose of this study the mixed approach was used, which include utilisation of both quantitative and qualitative data analysis which are always connected with sensibility, reliability and validity.   But on the other hand it has also its advantages such as expansion and collaboration. Furthermore, this study will concentrate on outsourcing within hotel sector, but at the same time there may be other factors that influence and affect business processes in the hotels. 1.9 Summary This chapter has introduced the thesis by outlining the topic of this study, the statement of the problem, background literature, purpose of this study, its rationale, presented research questions, definition of the terms and limitations of the study. In this first chapter the studys main focus was identified as examining and understanding the importance of outsourcing within hotel sector.   A critical examination of meaning of outsourcing, its advantages and disadvantages should be able to assist in determining how the hotel industry can be affected or altered by using outsourcing process.   Finally, this study would determine reasons and forms of outsourcing which are the most recent, available and useful within hotel sector. Afterward, Chapter Two will discuss the theoretical framework and conceptual models of factors for outsourcing or maintaining internally business processes within hotel sector.   The analysis will be connected with four Research Questions.   Finally, next chapter will classify particular insufficiencies in the literature leading to the need of the present study. Chapter 2: Literature Review 2.1 Introduction The purpose of this chapter is to critically analyse the existing literature on outsourcing or maintaining internally business processes within hotel sector.   Based on the research questions discussed in the first chapter of the given study, four general areas have been established.   More specifically this chapter will begin with a general description of related texts and then gradually concentrate on the precise areas in which the study has a focus on. The studies in the four major areas provided the theoretical foundation for the research conducted in this study.   The areas are: Consideration and explanation of outsourcing processes within the hotel industry.   This area relates to Research Question #1 What is considered ‘outsourcing process within the hotel sector? Advantages and disadvantages of outsourcing for the hotel industry.   This area relates to Research Question #2 What are the advantages and disadvantages of outsourcing for hotel sector? Factors and motives of using outsourcing processes within hotel industry.   This area relates to Research Question #3 What are the factors for outsourcing or maintaining internally business processes within hotel sector? Aims and results of outsourcing for hotel sector. This area relates to Research Question #4 What are the main aims of outsourcing within hotel sector? The general areas were supported by the literature are all directly related to this study.   The purpose of the literature review for the author was to obtain a greater understanding and depth of knowledge by having critically analysed all areas pertaining to the Research Questions.These Research Questions are achievable as the researcher has a close and continual contact with the industry and has sufficient access to the information in numerous hotels in Greece and Russia. 2.2 Review of General Area I: Consideration and explanation of outsourcing processes within the hotel industryThis section provides the theoretical framework for Research Question # 1. The hotel industry is one of the formidable business in the world but it does not mean that they are strict in incorporating business strategies in their business (http://www.outsourcing-weblog.com).   Also, according to Burgess (2007), financial controllers in their turn consider that departmental and general managers do not have enough business skills and finance skills in particular to optimise costs and revenues and hence maintain profits.   Thus outsourcing practice might be a very useful and successful way in order to help owners of the hotels nowadays as well as in future. According to Kakabadse, N. and Kakabadse, A. (2000), outsourcing practice dates back to eighteenth-century England and has been in continuous use in numerous industry sectors.   However, the term ‘outsourcing English neologism has appeared in the American explanatory dictionaries only in the beginning of 80th (Ostrovsy 2009).   Since then this expression is strongly located in a business lexicon of the majority of the world languages.   Traditionally, outsourcing has concentrated on activities which are remote from the heart or nerve centre of the company (Brown 1997). Greaver (1999) defined outsourcing as the act of transferring some of an organisations recurring internal activities and decision rights to outside providers, as set forth in a contract.   Consequently, outsourcing it is one of interaction form between two organisations which is determined by the contract.   And following this contracts experts of one company accomplish duties of other company. ‘Out-sourcing — can be understood as ‘use of anothers resources.   Moreover, according to Lankford and Parsa (1999) outsourcing is defined as the procurement of products or services from sources that are external to the organisation.   In other words outsourcing is a transfer of some functions of the organisation to external highly skilled executors — outsourcers.   Also it is refusal of own business process, and acquisition of services in realisation of this business process at specialised organisation. For the hotels outsourcing is a transfer to the external contractor of some business functions or parts of business processes of the company.   The contractor (outsourcer) adapts his universal means and knowledge, considering this specific business of the customer, and uses them in interests of the customer for payment, more often defined in the cost of services, instead of shares of profit. According to Beaumont and Sohal (2004), wide variety of business process is now outsourced.   The use of outsourcing is becoming more sophisticated; more organisations are outsourcing responsibility for business processes.   Glickman et al. (2007) in his turn noted that outsourcing is becoming more widely accepted and the argument for outsourcing versus in-house operations is gaining more support.   As a result Beaumont and Sohal (2004) confirmed that today outsourcing is a fashionable management technique. Hence, it is possible to mention that the outsourcing market endures rapid growth.   The growing demand and supply mutually accelerate each other.   Specialised outsourcing companies of cleaning and service of hotels are developing.   Outsourcing leads to growth of some professions for hotel sector.   More often, it is either low paid and not enough prestigious jobs (such as tidying and cleaning), or very specialised trades where maintenance of necessary professional level of employees or their work-load for the organisation is problematic (an example can be service of computer systems and IT). Consequently, as Glickman et al. (2007) stated, outsourcing has become a widely accepted practice that provides substantial cost-saving benefits for different organisations in general and hotels particular.   And hotels will always outsource some activities (the supply of water and electricity) but insource others (Beaumont and Sohal 2004). Therefore, there is a question: what kind of activities should hotels outsource key business processes or non-core functions? As outsourcing is a means of improving the performance of the company (Brown 1997).   And the overlay supplier is providing financial expertise which is difficult and expensive to create within a corporate treasury. The overlay provider, by offering the expertise to a broad range of clients, is able to provide it to each client at a lower cost than it would be for them to create their own capability (Winterton 2000).   Today outsourcing is considered as the business technology which is transferring to outsourcing companies processes and functions from the in-house business and hence, it is possible to make a conclusion, responsibility for result of performance of these processes as well.   So, for how big can be this shifting off responsibility for the hotel sector? The majority of authors consider that core activities should stay in-house, whilst non-core activities can be outsourced, in order to preserve core competencies (Prahalad and Hamel 1990, Bettis et al. 1992, Lacity et al. 1995, Quinn and Hilmer 1994, Rothery and Robertson 1995, Kelley 1995, Peisch 1995, Mullin 1996 cited Kakabadse, N. and Kakabadse, A. 2000).   From here it is possible to draw a conclusion that the sense of outsourcing comes to the simple formula: to concentrate all resources to that kind of activity which is the core for the company, and to transfer the other (supporting, accompanying) functions to the reliable and professional partner. But Struebing, (1996) argued that especially relevant is the outsourcing of key business processes and financial functions.   Nevertheless, Lankford and Parsa (1999) in their turn stated that focus on core business activities, companies can no longer assume that all organisational services must be provided and managed internally.   Competitive advantage may be gained when products or services are produced more effectively and efficiently by outside suppliers.   Thus, outsourcing is a direct transfer of non-core business processes of the company to the external organisation outsourcer, for their further performance within the limits of the signed contract.   And there may be big benefit for the company if transferred business processes are the exact specialisation of outsourcer. Consequently, outsourcing is management strategy because of which hotels can optimise in-house processes and, without distracting on minor functions, completely concentrate on core activities.   As a matter of fact outsourcing is attraction of external sources with the purpose of the decision of internal problems of the hotel.   Outsourcing can also be characterised, as the sale to hotels services for maintenance of their activity, i.e. outsourcer can take on the balance almost all non-core activities of the hotel.   As a result of that the client can give all his time only to the core business, thus occurs minimisation of risks concerning to not profile kinds of activities (a corporate meal, IT-service, transportation service, installation works, cleaning etc.). In hotels, outsourcing has been used for many years for some operational tasks such as cleaning, but only recently (Cline and Warner 2001, Lamminmaki 2006 cited Burgess 2007), has been considered for accounting, following the example of other industries (Burgess 2007). Holiday Inn for instance created its hotel reservations business as a separate entity based on its relationship with IBMs ISSC to serve the entire hotel and hospitality market (Venkatraman, 1997). Other examples of outsourcing within hotel sector could be: cleaning, laundry service, human resource management, employees meal, IT-service and support, marketing, statistics, security service, creating web-sites, organisation of celebrating and conferences via an event company and many others which are not core competences of business, and could very easily and more economically be contracted out to service companies (Winterton 2000). Nevertheless, according to Lamminmaki (2006), an activity will tend not to be outsourced if it results in a subcontractor being placed in a position enabling it to (wittingly or otherwise) inflict damage on the reputation of the hotels business. Now it is an appropriate and good point to understand how innovative the outsourcing model is.   In general, outsourcing is just the variety of cooperation. Outsourcing of the hotel activities is definitely not a new phenomenon.   In 1963, for example, Storey (2001 cited Glickman et al. 2007) examined outsourcing in the military (Glickman et al. 2007). From the previous part of the chapter it is possible to mention that benefit of outsourcing consists in more quality and less spend of accomplishment of the transferred function.   Higher quality explained by availability of highly paid professionals who have a wide experience in the given problematic.   As outsourcer has big amount of works in the specific sphere, he has a possibility to receive solid experience and on its basis to create various workings out for completing the transferred function.   When the work is outsourced, the overlay traders are immersed in the market (Winterton 2000).   Outsourcer is engaged in this sphere, and not for only one company.   Hence, professional specialisation is taking place.   And as a result expenses decrease and accordingly, the effect of accumulation begins: the bigger and better specialisation the easier management, easier management cheaper the whole process.   Moreover, Glickman (et al. 2007) noted that outsourcers who p rovide the same functions to a number of different hotels are able to purchase larger quantities at lower prices.   Thus, expenses become lower using outsourcing, than at independent accomplishing of matching function. On the other hand one of the biggest problems of this statement is that using by the hotel highly paid professionals will not allow to achieve this with small money.   And it is really not so easy to operate this process.   So actually, what kind of innovation is here?   There were always contract and subcontract works, there was a specialisation of both workers and enterprises, there was a strict selection of suppliers.   And can it be differently with modern development of techniques and business?   The settled word ‘outsourcing goes today as a new method of work.   And this word has become extremely useful. Also, it is relevant to know what place outsourcing takes in the quality management.   In standards ISO series 9000:2001 (http://ds1.twirpx.com) this word (not even this but only the verb) ‘outsource has been found by researcher just once in point 4.1.   That is why it is especially appropriate to remember the statement of Lonsdale and Cox (2000) with the note that it is some kind of substitute for the once fashionable enthusiasms for conglomeration, horizontal integration, vertical integration, and internal integration. Consequently, considering outsourcing as the business phenomenon of the modern world, it is possible to allocate its pluses and minuses.   Also it is possible to separate core services and to understand, by what principles they work and what bring as a result to the hotels: benefit or losses.   In addition, it is possible to analyse a situation of loosing work places because of outsourcing processes within the hotel sector, increasing percent of unemployment or, on the contrary, allows hotels to develop and grow faster, increasing their weight in the market. 2.3 Review of General Area II: Advantages and disadvantages of outsourcing for the hotel industry This section provides the theoretical framework for Research Question # 2. According to Beaumont and Sohal (2004), outsourcing is used because it supposedly advantages the organisation.   The advantages and disadvantages can be categorized as strategic or tactical, long-term or short-term, and tangible or intangible. The advantages in outsourcing can be operational, strategic, or both.   Operational advantages usually provide for short-term trouble avoidance, while strategic advantages offer long-term contributions in maximizing opportunities (Lankford and Parsa 1999).   When services are outsourced, it may become easier to handle problem situations because it is possible to go straight to the provider and have them work out the problem instead of having to figure out what went wrong internally (Glickman et al. 2007). For hotels, benefits are substantial: reduced costs, expanded services and expertise, improved employee productivity and morale, and a more positive corporate image (Lankford and Parsa 1999).   Moreover, the hotel does not enlarge staff, removes from itself cares on personnel recruiting, and saves on social taxes.   At the same time if hotel organise his processes in correct way, quality of work of the personnel remains high.   Also hotels can leave taxes, administrative costs, worries about replacing equipment, warehousing, maintenance,

Lawyers’ Role in Dispute Resolution Essay -- Law Legal Lawyer

Lawyers’ Role in Dispute Resolution Modern American culture provides an inconsistent vision of the role of lawyers in dispute resolution. Lawyers are alternately portrayed as greedy, corrupt people without morals or as necessary and competent allies in protecting individuals against larger and better-funded opponents. In reality, while lawyers have the definite capability to change the outcome of a dispute in a negative way, they ultimately have a positive effect by allowing citizens access to the legal system. By its very nature, the legal system is confusing, puts the inexperienced at a disadvantage, and can be difficult to access for claimants with little authority. Lawyers provide a way to overcome these obstacles. They are beneficial because they effectively use their experience and education to help their clients, facilitate their client’s freedom in trial, aid in the formation of cases, and add authority and weight to a claim. The experience and education lawyers have is invaluable in providing legal access for their clients. Their knowledge and skill allow lawyers to effectively interpret the legal system and therefore help their clients navigate it. The American legal system, in the two hundred years it has been in existence, has become extremely complex and confusing to the uninitiated. The trial process alone can become a Byzantine series of motions, objections, briefs, and rulings. Despite the fact that defendants are allowed to represent themselves, the very structure of the system is so complicated that being or employing a professional lawyer is all but necessary. Legal documents, too, are so confusing that even non-trial disputes can be impossible for a layman to handle. A lawyer’s training i... ...nore, Peter d’Errico, Ethan Katsh, Ronald M. Pipkin, Janet Rifkin (Boston: Houghton Mifflin, 2002) 76-83. Langum, David J. â€Å"William M. Kunstler: The Most Hated Lawyer in America, Introduction to Legal Studies: A Reader, ed. Thomas Hilbink, 2005, 83-97. Haltom, William. Michael McCann, â€Å"Distorting the Law: Politics, Media, and the Litigation Crisis,† Introduction to Legal Studies: A Reader, ed. Thomas Hilbink, 2005, 23-46. Menkel-Meadow, Carrie. â€Å"The Transformation of Legal Disputes by Lawyers: What the Dispute Paradigm Does and Does Not Tell Us,† Before the Law: An Introduction to the Legal Process. Ed. Stephen Arons, John J Bonsignore, Peter d’Errico, Ethan Katsh, Ronald M. Pipkin, Janet Rifkin (Boston: Houghton Mifflin, 2002) 478-480 Toobin, Jeffrey. â€Å"Killer Instinct,† Introduction to Legal Studies: A Reader, ed. Thomas Hilbink, 2005, 251-260.

Founder/Ceo

Wangoh Dynamics Technologies Network and Telecommunication Services and Solutions Memo To: The Government of Sierra Leone (West Africa) From: Saa E. Fillie-Founder/CEO and Network Engineer Date: March 20. 2013 Ref: The Cost Benefit of Virtualization Technology Many enterprising companies are looking for ways to better IT departments, improve business models and create lower operating costs. Until a few years ago, it seemed as if an all-encompassing solution to those problems has been taken care of by virtualization that is now a reliable, efficient and customizable solution to those business requests and more.Whether used to provide better customer service, to be more eco-friendly or to gain more company memory, the virtualization technology of today offer many benefits to enterprising companies all over the world, creating innovative solutions to work based problems on a daily basis. Virtualization has not only captured the business world by storm with its innovative and creative so lutions but it also offers proven advantages in several areas of industry, IT and service. Below is a list of a few of the advantages and solutions that virtualization technology can offer the enterprise around the globe.Virtual Desktops Many corporations and enterprises are looking to reduce their footprint and create more efficient operating systems. This can be done with one aspect of virtualization, virtual desktops. Virtual desktops have the ability to create more space within a desktop computer or on actual desk space through the use of software which expands a desktops environment beyond physical limits through virtualization. This can create a more eco-friendly environment with less computers using energy and lower operating costs as well as offering continuous transitions between multiple operating system.Enhanced System Security A fear of many enterprises considering virtualization in their business is that all the advantages of this technology will compromise the security of sensitive, private and legal company information. However, that is not the case; in fact virtualization in business provides enhanced security, making it more difficult for hackers to find key information. Unlike other security systems, virtualization has the ability to single out and trace requests.If a request seems fishy or unsuitable, virtualization security technologies will reroute hackers to another location, securing and keeping enterprising business information safe from harm. Better System Reliability Non-virtualized networks and systems are more prone to crashes and memory corruption due to software installments such as device drivers. Through virtualization, I/O resources can be isolated providing better security (see above,) reliability and even availability across devices for business purposes. Disaster RecoveryAlong the same lines as better system reliability, virtualization also provides enterprising businesses with better, faster and more secure disaster recover y. This is possible because this technology is able to take a virtual image or information and transfer it to another server in the instance that the original server may be crashing. This prevents information loss and provides a constant stream of secure and safe information. Space and Server Consolidation When an organization has a physical database, it can take up to ten machines to provide the same amount of workload to one virtual machine.This means that up to ten applications can be ran on a solitary virtual machine, consolidating physical space as well as server use, therefore saving energy usage, operating costs and server expenses. Scalability One advantage of virtualization technology is its unique ability to be scalable. What this means is that unlike purchasing X amount of computer memory or RAM for a company, the possibilities with virtualization are endless. The workload and space needed one month may change in the next and virtualization accommodates those changes by f luxuating to fit the needs of an enterprise at the time of use.This also saves on energy consumption and operating costs because virtualization service providers oft will only charge for what was used. Endless Memory and Accessibilities One aspect of scalability is virtualization’s advantage of seemingly endless memory. Enterprising businesses can take advantage of limitless memory to house business information, client details, invoices and financial records all in an accessible, crash protected and secure place. Virtualization is accessible anywhere there is an internet connection, allow for access to important company information anywhere in the world.This is great for traveling business owners, work from home employees or access away from work. This also allows companies to offer better customer service to clients because of the ease of access as well as the quick pull up of saved information stored in a limitless memory location. Many enterprising companies are looking fo r ways to better IT departments, improve business models and create lower operating costs, all of which can be accomplished with the modern marvel technology that is virtualization.Whether used to provide better customer service, to be more eco-friendly or to gain more company memory, the virtualization technology of today offer many benefits to enterprising companies all over the world, creating innovative solutions to work based problems on a daily basis. Return on Investment School of thoughts have argued in various platform about the huge capital investment return in virtualization, there are multiple factors which determine how to go about deciding what type of monitoring an Information Technology (IT) department should embark on.In order to properly evaluate a specific IT environment, one must first determine whether or not to virtualize. Virtualization can be stressed as a life saver for countless IT departments over the past few years. What first needs to be determined howev er, is if in fact an organization really needs to virtualize. Perhaps database, application servers, network services, etc don’t truly need to become virtualized, maybe they do. What we are trying to determine today is the Return on Investment (ROI) for virtualization.Technologist, Researchers and Students helps quantify virtualizing an IT infrastructure. If an organization is in the process of acquiring a new company (or being liquidated) and subsequently moving locations, they must first take a look in their server room*. If it is overcrowded, under powered or outdated, then yes†¦ virtualization is probably important. What everyone in the IT department wants to know then, is virtualization right for my organization and more importantly my department? [pic]The resources being saved on just power and hardware along are staggering. Keeping costs lower for the overall organization is obviously crucial, especially when it comes to things such as never having to redeploy app lication solutions*. This will save you time and subsequently money: no server hardware refreshing costs, limited annual server-related power costs*. The greater questions then arise, how much time will it take a department to make the complete switch? Will the ROI be worth the increased labor hours to become fluent with the virtualized world?What types of challenges will come about from the overall business perspective? |Reducing Infrastructure Costs Through Virtualization | | |   | | |Introduction | | |Nowadays, we live in uncertain times all around the world.When it comes to architecture | | |and design, we must think a lot more in costs—unlike in other times, when we used to think| | |first of the solution and then in costs. If we had a streamlined and defined return on | | |investment (ROI), only then did the project get the green light. Today, if we think about | |projects, it is necessary to have a precise budget and defined cost first before we can | | |start to t hink about the project. | | |Upon brief reflection of what IT architecture is, one finds that the model that the whole | | |world favors (because of costs and the evolution of technologies) is the virtualization | | |model.Ten years ago, it was all about decentralization—both in data centers and servers, | | |and in communication and desktops. When we thought of an application, we always tried to | | |have the layers of such an application as close to the client as possible; data centers, | | |databases, and e-mail servers were distributed all over. | |This situation was the result of being unable to face the huge cost of having hardware | | |equipment of multiple large capabilities (such as an eight-processor server and lots and | | |lots of RAM gigabytes) or having redundant point-to-point communication links with good | | |bandwidth—the cost of which only large companies could consider including in their | | |architecture.All of this encouraged a decentralized IT ad ministration model that required| | |specialists in the different platforms of each site. | | | | |   | | |The Original Model | | |Although this model worked for years, many things were not considered that today have | | |rendered this model not as efficient as was initially thought. | |[pic] | | | | | |Figure 1.Typical scheme | | |   | | |Taking as an example the analysis of a distributed application that was devised 10 years | | |ago, there was an architecture in which it was important to have the data near the client,| | |which led to the following scheme: | | |A database in the central office in which the information from the different sites, the | | |database from each site, the application server from each site, and the local applications| | |that were installed on each desktop were all consolidated. | | |A replication scheme among the databases was used for the distribution of information. | |This drove us to have database administration for each site, besides havi ng on each site | | |an infrastructure administrator who had thorough knowledge. | | |Initially, this had (as variables within the equation) high communication-link costs, | | |large servers that represented a very high cost, and operative systems that were neither | | |very solid nor rigid with regard to changes and also had little functionality—that is, | | |they offered very few functions or roles within the operative system. | |For many of the needs of the company, it was necessary to add software that could comply | | |with that functionality. In addition, in order to carry out the tiniest of changes, it was| | |necessary to set the server offline and have IT personnel who represented an average cost. | | |The variable that was not really considered was the updating and maintenance of the whole | | |structure, which at the time—due to the fact that technology did not evolve in the way | | |that it does today—was not such an important aspect. | |If we consid er basic accounting principles (which I have learned during recent years), one| | |should always see the IT personnel as an asset to the company, with both amortization time| | |(which is the time that it takes to shape the person, according to the culture and needs | | |of the company) and an updating cost (which is what must be invested to have a person | | |trained in the different technologies as they evolve). | | |Over time, all of this changed; the variables in this equation also changed, and the | | |updating and maintenance variable (which in many cases had not been taken into account) | | |started to gain more and more importance. | |This is the equation that we face nowadays: | | |Average to low communication-link costs (taking into account the virtual private network),| | |large servers with many RAM gigabytes at average to low cost, operative systems that had | | |hundreds of embedded and flexible options and lots of functionality (many things already | | |come solved an d embedded in the operative system, so that in general it is not necessary | | |to set the server offline to make these changes), average to high personnel costs, and | | |average to high updating and maintenance costs. | |Within the scheme that is encouraged today, many things must be considered; it is | | |necessary, therefore, to have the whole scheme in mind—not just a part of it—to avoid | | |making the same mistakes that we incurred in the past. | | |Nowadays, when uncertainty (crises, corporate mergers, acquisitions, and constant changes)| | |is all around, it is vital to work toward an environment that would basically support | | |constant dynamic changes. More than ever, it is necessary to think about platform and | | |application updating, growth, and corporate and budget contractions.This, of course, will| | |highly influence the model that is to be chosen, and that model (taking into account the | | |aforementioned equation) should be based mainly on the up dating and maintenance variable. | | |When we consider all of the preceding, we will see that the model that best fits is the | | |virtualization model applied to all of the possible levels, where all of the equation | | |variables are considered in order to determine feasibility and total cost of ownership | | |(TCO). | |There will be infinite virtualization scenarios—from choosing cloud computing in specific | | |services and virtualizing (or outsourcing) the whole or part of the IT department to using| | |virtualization for servers, applications, or desktops. | | |   | | |Server Virtualization | | |Today, there are many important players and technologies that have been widely tested, | | |such as Microsoft Hyper-V and VMWare.The hardware costs have gone considerably down: If | | |we were to compare four- to eight-processor equipment of the past to one today, it would | | |result in an important cost margin that would be an improvement, and it would be necessary| | |to a dd the progress that has been made in technologies and redundancy within equipment, | | |board, hot-plug memories, and so on. | | |Generally speaking, almost all the components of the server can be changed without having | | |to take the server offline.The same thing applies to operative systems. This means that | | |we can do away with the theory that was used in the past, according to which we used to | | |divide into different hardware pieces the different business applications. In addition to | | |this, the advantages of tolerance to failure in the virtualization schemes that are used | | |today make it possible to take a physical server offline without affecting the virtual | | |server that is running in that physical server.This, of course, means that from a simple | | |technical point of view, there is already a huge advantage in the use of server | | |virtualization. | | |From an architectural point of view, this allows us to respond to organizational changes | | |quickly. A bove all (and this is something to consider nowadays), this also enables us to | | |achieve substantial savings at the time of shaping a data center. There will also be | | |savings in the electrical bill, refrigeration costs, physical space, and hardware. | | |Moreover, deployment and disaster recovery will be much simpler. | |All of this will result in lower maintenance costs—whether we have our own IT department | | |in 100 percent administration of this platform or a virtualized environment of the IT | | |department (later, we will develop the IT department cost, as well as the options and the | | |reasons behind virtualizing it). This all leads to there not being almost any scenario in | | |which virtualization is not applied and which will not result in a much lower TCO. | |   | | |Desktop Virtualization | | |In this regard, it is also possible to find very well-developed and well-tested | | |technologies, such as Microsoft Terminal Server, Citrix, and so on. This k ind of | | |virtualization was previously thought about for remote points or links that had a | | |relatively small bandwidth.Nowadays, it is used as a method to reduce | | |desktop-administration expenses, because (thanks to this technology) it is possible | | |technically to have tolerance to failures, add it to the server-virtualization scheme, and| | |create a pool of servers. There is substantial reduction of the desktop-maintenance cost | | |and the cost of desktops themselves, because with equipment that has smaller hardware, it | | |is possible to run any kind of application and still have centralized control and | | |deployment of applications and security policies. | |   | | |Virtualization of the IT Department | | |In the past, there was a relatively low or not-so-significant IT department cost, compared| | |to the one nowadays. Today, there is a high IT department cost, and it is necessary to | | |consider the following variables: training in new technologies, trainin g in the company | | |environment, the cost of personnel search, and the time during which the search takes | | |place. All of this leads to the IT department not being able to respond with the speed | | |that the company needs. In ddition, we currently experience a high labor turnover, which | | |means that many times this process has to start again—which, of course, drives the cost | | |upwards. | | |If we consider all of these factors, especially the costs and the time that the search | | |involves, we will see that having a virtualized IT department results in a lower TCO and | | |in every possible advantage. With virtualization, all of these IT-department problems are | | |moved to an external company that is exclusively devoted to IT, particularly as it refers | | |to specialists in technology or in specific technologies.This would mean that there is no| | |point in having a specialist as part of the internal IT department. | | |   | | |Cloud Computing | | |Currentl y, there an infinite number of services are available on the Web, from e-mail | | |services (as has been the case for a very long time) to CRM, ERP, Document Managers, and | | |other services.This solution naturally offers a world of advantages: It is unnecessary to| | |have a specialist in this technology within our IT department, it is equally unnecessary | | |to maintain that technology from either the hardware or the software point of view, and | | |keeping security copies of the information is no longer required. Depending on the kind of| | |hired service and service-level agreement (SLA), it will be possible to have a redundant | | |and always-online service. In some cases, the cost for this kind of service can be | | |high—depending on both the number of users within our organization who require this | | |service and the characteristics of the service—and is worth considering. | |   | | | | | | | | | | | | | | | | | | | | | | | | | | |Example of Archit ecture | | |(Example based on a company with 500 employees. ) | | |[pic] | | | | | |Figure 2.Current architecture | | |   | | |As an example, we will use a virtualization architecture that uses such Microsoft | | |technologies as Hyper-V and Terminal Server. Number of servers: 15. | | |Typical structure of IT department: One manager, two IT administrators, one database | | |administrator (DBA), and five Help Desk employees. | | |Based on everything that was explained previously, we will take the best of each | | |virtualization technology to carry out a cost reduction. | |Server Virtualization | | |It will be possible to reduce approximately 15 noncritical servers into 4 physical servers| | |that will be able to support these 15 virtual servers. It will be necessary to carry out a| | |load analysis and distribute the servers and business applications correctly. Nowadays, | | |given the kind of roles of a typical company server, there are not many servers that have | | |a high p rocessing consumption; thus, it will be necessary to isolate these kinds of | | |servers, so that a resource competition conflict is not generated.It will also be | | |necessary to include (if we do not already have it) an external storage in which our | | |virtualization scheme will be stored (so that it is possible to work on it in a cluster) | | |and which will have tolerance to failure of all of the virtual equipment. All of this will| | |be possible by using Microsoft Windows Server 2008 64 bits and Hyper-V System Center | | |Virtual Machine Manager to carry out the P2V conversions. | |Cost Reduction | | |Within this example, it will be possible to reduce approximately 70 percent of the energy | | |consumption, as a result of less consumption on the part of the servers. In addition, | | |there will also be a reduction of approximately 70 percent in the refrigeration | | |consumption, as a result of the use of storage. | | |The licensing cost will also decrease (when we use Micr osoft licensing) very | | |substantially. The Microsoft licensing scheme is based on Table 1. In the table, we can | |see that by using Windows Server 2008 data-center server licensing, it will be possible to| | |obtain a reduction in licensing from 15 servers (which will be able to use different | | |versions of Windows Server 2008, depending on the processor and RAM needs) to only 4 (with| | |data-center or enterprise licenses). Depending on the versions of Microsoft Windows that | | |are used, in the least favorable scenario, we will achieve a reduction in cost of 50 | | |percent. | |Version of Windows Server 2008 host | | |Covered virtual servers | | | | | |Standard | | |1 | | | | | |Enterprise | | |4 | | | | | |Data center | | |Unlimited | | | | | |Table 1.Microsoft Licensing Scheme | | |   | | | | | | | | |Desktop Virtualization | | |Depending on the memory consumption of the applications, it will be possible to implement | | |approximately five virtual servers for Terminal Server— typically, in five physical | | |servers to cover 500 work positions.The main advantage of having virtualized servers is | | |that this will automatically commute to any other, in case of a failure in any physical | | |equipment. | | |In this way, we will be able to have a desktop with fewer resources, and it will be | | |possible to update the applications more rapidly, as with deployment, management of | | |printers, and any other desktop problem. In turn, this will also enable us to make the | | |desktop of the user available to remote or external users. | |Cost Reduction | | |If we consider, on the one hand, the cost of updating 500 desktops as a result of the | | |installation of some business application and, on the other hand, the purchase of five | | |32-GB RAM servers and two Quad Core processors each, we will obtain a cost reduction of | | |approximately 90 percent. | | |Virtualization of the IT Department | | |It is first necessary to analyze the c ritical and noncritical applications; it is | | |important also to analyze the IT labor market in the country in which it is applied. | | |Generally speaking, the advice that is given is to virtualize whatever is difficult to get| | |in the market and to have partial virtualization of the IT department.For this | | |example—and considering the current work market—we will opt to virtualize (for example) | | |only one IT administrator and one DBA; the Help Desk, one IT Administrator, and the IT | | |manager will continue to be physical. By having an SLA with external suppliers and a | | |framework work contract, it will be possible to increase rapidly the IT department or | | |change swiftly the scheme without a great increase in initial costs. It will also be | | |possible to decrease training costs, hiring costs, and so on. | |[pic] | | | | | |Figure 3. Virtual-server scenario | | |   | | |Cost Reduction | | |If we consider the TCO, hiring costs, training costs, an d salaries, we will obtain a cost | | |reduction of approximately 55 percent. | |Cloud Computing | | |Let us take an application that will not be worth having internally, because of the size | | |of the company. For this example, we will use a CRM. Ten CRM licenses will be hired | | |online. In this way, no costs will be associated to the initial licensing, administration | | |training, CRM server deployment, disaster-recovery policies, or anything that pertains to | | |administration of the CRM. | | |Cost Reduction | |Based on online services, there will be a cost reduction of approximately 80 percent—based| | |on 10 licenses, and considering the initial cost of having a server, trained personnel, | | |backup policies, and so on. | | | | | | | | |Financial Benefits of Virtualization | | |. | |â€Å"Leveraging virtual computer environments has increased the opportunities for teaching and| | |learning. This particular solution is cost effective and sustainable in many diffe rent | | |ways. Tech related costs have reduced by a little over $250,000 a year. That is a | | |combination of lower software costs, app software costs, and extending the life of the | | |hardware. That in turn reduces the cost of the hardware by about 35-40% when they do | | |replace it.Computers can be renewed with hardware that is much more cost efficient | | |because it does not need to be the latest and greatest machine. The computers that are | | |replaced cost around $500 or less. | | |IT staff numbers are down, mainly because of a reduction in PC technicians. Everything is | | |moving back towards the data center and, because of the way they implement their | | |environment, every time a user accesses an app or a desktop they are actually accessing a | | |copy of a perfect image.Every time you open up Word it is a brand new fresh copy and when| | |you are done using it that image goes away so you are not really re-using it. SCC does | | |manage their profile information so if they create custom shortcuts it will be applied | | |over that virtual application. This way they still get that customized personalized | | |environment. Pooling resources reduced hardware and software costs while extending the | | |life of current hardware resources. This lowers the school’s total cost of ownership and | | |makes a very significant difference. | | |To read the rest of this report, Desktop Virualization for the Real World, IMF members can| | |log-in | | | | | | | | | | | | | | | | | |   | | |Conclusion | | |The virtualization scenario makes it possible to make structural changes in the IT | | |department with the speed that the market actually needs. | | |We can have strong cost reduction, because with a physical structure, we often do not use | | |all of the resources—hardware, software, employees, and so on—at 100 percent.On the other| | |hand, with virtualization we have the opposite case: We use and push the resource | | |utilizat ion as far as possible, and then we add more resources to virtualize. | | |In our example, we can see the individual cost reduction; if we look at it globally, | | |however, the cost reduction is more significant. | | |   | | |   | |

The Human Genome Project Research - 1422 Words

Human Genome Project Research Paper Research Leading Up to the Human Genome Project Many genetic studies leading up to the start of the human genome project include some of the first research done on the structure of human DNA: In 1952, Rosalind Franklin created Photograph 51 using X-ray crystallography: the first evidence of DNA’s helical structure. Using this evidence, in 1953, James Watson and Francis Crick were the first to model the true structure of DNA as a double helix with sugars and phosphates forming the backbone and the base pairs A-T and C-G pointing inward to the center. They also showed in their model that the base pairs are connected by hydrogen bonds and that the two strands of DNA run in opposite directions but are parallel (Genome unlocking life’s†¦). Following the discovery of DNA’s structure, the research possibilities that could be conducted on the DNA that makes up all of life was endless. In 1961, the genetic code for protein synthesis was discovered by Marshall Nirenberg. Also in 1977, Frederick Sanger developed the â€Å"rapid DNA sequencing† technique to determine the bases’ order in a DNA strand; this would later be known as the Sanger method. Huntington’s disease was the first genetic disease to be mapped in 1983, and was later isolated in 1993. Also, polymerase chain reaction (PCR), the technology still used today to amplify DNA, was developed in 1983. 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The Human Genome Project is a worldwide research effort with the goal of analyzing the structure of humanRead More The Human Genome Project Essay941 Words   |  4 Pages The Human Genome Project is a worldwide research effort with the goal of analyzing the structure of human DNA and determining the location of the estimated 100,000 human genes. The DNA of a set of model organisms will be studied to provide the information necessary for understanding the functioning of the human genome. The information gathered by the human genome project is expected to be the source book for biomedical science in the twenty-first century and will be of great value to the field of

Women s Reproductive Rights Essay - 1199 Words

Corah Hauser Miss Windish English II 3 October 2017 Women’s Reproductive Rights What if a sixteen year old decided to apply to adopt a child? She’d be denied that from the get-go, right? Of course, she’s way too young, not nearly mature enough, can’t support herself on her own, etc. If all of this is true, then why should a sixteen year old rape victim have to raise a child she didn’t plan for? Even women who aren’t ready to start a family or any other reason, shouldn’t have to. All women deserve true information and the access to safe and legal abortions. The case of Roe v. Wade is basically what started the political side of things. In 1969 a divorced Norma McCorvey was seeking abortion for an unwanted pregnancy. At this time, it†¦show more content†¦This benefitted the US in that it was more available to women in need. The downfall was that it brought about a division in the public. Many states are still restricting the availability of abortion even after this ruling because of how hard the pro-life group is working to overturn it (Bailey 5). Pro-life groups can view abortion as murder. Since the cells of the fetus in the very beginning of the pregnancy are technically living things, they can be considered â€Å"alive.† (Should Abortion be Legal?) While these cells are technically alive, they are still completely dependent on the mother for absolutely everything. The cells couldn’t develop at all if it weren’t in the uterus. â€Å"Human life in its fullest sense includes the ability to exist as a separate being and to be conscious - aware of one’s surroundings and to be able to think, feel, and respond to them.† (Bailey 6) The decision to terminate the pregnancy should be decided well before the point where the fetus could survive outside of the uterus besides in the extreme cases. It’s also argued that everyone can prevent pregnancy. 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Buddhism Buddhist Belief Of The Beginning - 1342 Words

Buddhism Provide your response in this column. According to Buddhist cosmology, â€Å"there are multiple possible states of existence, including hell beings, hungry ghosts, animals, humans, and gods† (Fisher, 2014, p. 148). However, these reincarnations are temporary and flawed because they are trapped in a cycle of samsara (Fisher, 2014, p. 149). Buddhist also teaches that â€Å"the creation of the universe isn’t known. Instead, they teach that when a universe is destroyed, then another will form and take the place of the previous one (Buddhist Belief of the Beginning, n.d.). Buddhist believes â€Å"the pattern of death and rebirth is eternal, and so it is pointless to single out any one beginning† (Buddhist Belief of the Beginning, n.d.). Buddhist Belief of the Beginning. (n.d.). Retrieved July 22, 2016, from http://peopleof.oureverydaylife.com/buddhist-belief-beginning-3365 Fisher, M. P. (2014). Living Religions (Ninth ed.). Pearson: Upper Saddle River, N.J. Provide your response in this column. Buddhism is a nontheistic (does not believe in god or gods) religion (Fisher, 2014). They believe that there is no particular God who had created the world (Fisher, 2014). Buddha himself is not worshipped as well. â€Å"Buddhism is not centered around the concept of God or an universal supreme being, who is responsible for the creation and dissolution of the world and the existence of sentinel beings† (V, J., 2016). Fisher, M. P. (2014). Living Religions (Ninth ed.). Pearson: Upper SaddleShow MoreRelatedBuddhism, Religion, And Religion1155 Words   |  5 PagesMany wars have been fought based on religion. Countless Disputes, debates, and lives. But, there is one religion that doesn t concern wars, or even violence. Buddhism. 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Academic Goal Essay Example For Students

Academic Goal Essay The Goal in 885 Words Here are the principles behind the dramatic turnaround story in The Goal, in 885 words. Ready? Start counting now: The goal of a manufacturing organization is to make money. Jonah poses this as a question: What is the goal? and Rogo actually struggles with it for a day or two, but any manager or executive that cant answer that question without hesitation should be fired without hesitation. But then again, the goal isnt clear to everyone. One of the characters in the book, an accountant, responds to an offhand comment about the goal with a confused The goal? You mean our objectives for the month? Thats sure to strike a chord with a lot of readers. At an operational level, measure your success toward the goal with these three metrics: Throughput The rate at which the system generates money through sales. Inventory The money that the system has invested in purchasing things which it intends to sell. Operational expense The money the system spends in order to tur n inventory into throughput. You could rephrase it this way and someone does, a bit later in the book: Throughput Goods out; the money coming in. Inventory Materials in; the money currently inside the system. Operational expense Effort in; the money going out. Obviously, your job is to minimize expense and inventory and maximize throughput. Adjust the flow of product to match demand. In particular, dont trim capacity to match demand. Its a standard cost-cutting procedure, sure. But youll need that capacity later, if youre serious about increasing throughput. Find bottlenecks. If manufacturing is whats limiting your throughput, then the problem isnt that people arent working hard enough. You have bottlenecks in your manufacturing processes that are holding up everything else. Find the bottlenecks and do everything you can to fix them. Increase their efficiency, even at the expense of efficiency in non-bottleneck places, because the efficiency of a bottleneck directly determines t he efficiency of the entire process, all the way through final payment. In the book, a variety of steps are taken to elevate and circumvent the bottlenecks. This is where the results start showing up on the bottom line. Soon the plant can actually use information from the bottleneck to do an effective job of scheduling work and (for the first time) reliably predicting when orders will be ready to ship. Dont be afraid to have resources idle. Its better than putting them to work producing excess inventory that you cant sell. Decrease the unit of work. If youve got people idle, you can afford to have them do their work in smaller chunks. Under a cost-accounting model, this hurts their efficiency by removing certain economies of scale. But you have much faster turn-around time. Everyones more flexible. Work flows more smoothly. (Well, this is what the book says.) jorendorff.com ; Articles ; The Goal The Goal A Process Engineering Novel I read Eliyahu M. Goldratts novel The Goal the oth er night, instead of sleeping. The book has two parts. In the first 264 pages, a manufacturing plant manager turns his failing plant into a tremendous success. That part of the book ends with the managers promotion to a position with oversight over several failing plants. In the second part of the book (73 pages), the manager prepares for his new job by trying to deduce a repeatable process of ongoing improvement. Hes trying to make sense of what happened in the first part of the book so hell have half a chance of repeating that success on a greater scale. For now, Ill set aside considerations of why The Goal is a novel, how effective it is as a book, whether it succeeds as literature, and so on. This article is primarily about the ideas behind the book, and why some are valuable while others are probably quite useless. How to Turn Around a Failing Plant The first part of the book is about a manufacturing plant. The protagonist, plant manager Alex Rogo, turns around a failing plant by following the advice of his guru, Jonah, a physicist turned university professor and corporate consultant. The guru is a very busy man, and he casts his pearls sparingly. Rogo plays the tough role of figuring out what they mean (i.e. explaining them to the reader) and putting them in action (i.e. convincing the reader that they could really work). The essence of this first part of the book is found in the gurus occasional pronouncements. I believe The Goals success stands mainly on the strength of these insights. Heres what the guru has to say. (The parts in maroon are direct quotes from the book.) The goal of a manufacturing organization is to make money. At an operational level, measure your success toward the goal with these three metrics: Throughput The rate at which the system generates money through sales. Inventory The money that the system has invested in purchasing things which it intends to sell. Operational expense The money the system spends in order to turn invent ory into throughput. Adjust the flow of product to match demand. Find bottlenecks. Dont be afraid to have resources idle. Decrease the unit of work. Thats it. The Goal in 87 words. (If you prefer to have The Goal in 885 words, read this more expanded summary.) In just two words, The Goal would be summarized like this: product flow. The plant management approach advocated by the book is based on a fundamentally new way of looking at the problem: think of your plant as a machine through which product flows. Your job is to overhaul the machine to maximize its throughput, minimize the buildup of pressure (inventory) within it, and minimize the cost (operational expense) of running it. In short, or so I gather, all of this is a scathing indictment of, and alternative to, the cost accounting method of measuring plant efficiency and success. It sounds dead-on to me, although this isnt my field. The portrayal of cost accounting given by the book is probably a bit of a straw man. But thats p ar for the course. How to Solve Problems in Management After the plant becomes tremendously profitable and there are promotions all around, something a bit extraordinary happens. Rogo and his crew decide to look back over the successes of the first part of the book and see if they can figure out why it succeeded?and whether it can be repeated. Eventually they distill it down to this (written on a whiteboard): Identify the systems constraint(s). Decide how to exploit the systems constraint(s). Subordinate everything else to the above decision. Elevate the systems constraint(s). Warning!!!! If in the previous steps a constraint has been broken, go back to step 1, but do not allow inertia to cause a systems constraint. A constraint is the generalization of a bottleneck. It might not always be a manufacturing bottleneck. Sometimes the constraint is weak demand, or some other unrelated problem. Im an engineer by training, and this reminds me of something. I hope you dont mind if I go off on a huge tangent, because thats what Im about to do. The Scientific Method In grade school, I was taught that theres a single scientific method that is followed in all scientific research. I had quizzes where I had to write down the scientific method verbatim, as it was in the textbook. It was as though it mattered that the scientific method was exactly six steps, although in a few years the school would get new textbooks and suddenly there would be only four steps. Different formulations of the scientific method would emphasize different parts of the process. Heres one formulation I just grabbed from a Web site: Observe a phenomenon. Hypothesize an explanation for the phenomenon. Predict some measurable consequence that your hypothesis would have, if it turned out to be true. Test your predictions experimentally. Heres another one: Purpose Determine what you want to learn. Research Find out as much as you can about the subject. Hypothesis Make an educated guess at the answer t o the problem. Experiment Test your hypothesis. Analysis Record and consider the results of the experiment. Conclusion Determine whether your hypothesis is correct. Report your results so that others can benefit from your work. The first formulation seems to be written from a scientists rather abstract point of view. The second is more oriented toward grade school or high school students. But the essence of the scientific method is one step: experiment. People are always observing weird phenomena and then speculating about what causes them, coming up with new off-the-wall explanations. It comes naturally. What doesnt come naturally is finding ways to rigorously test those explanations to see if theyre actually worth anything. Thats what the scientific method does. By experiment alone, science ruthlessly divides the wheat from the chaff, the potentially true from the provably false. No other step of the processes listed above is really fundamental. Experiment is the scientific met hod. The Seven-Step Problem-Solving Paradigm Once I got out of grade school, I thought I had left behind the rather pedantic insistence on specific steps of the scientific method. Then, at university, I took a class from the dean of the physics department. He insisted that every problem on every test be solved according to the seven-step problem-solving paradigm. I want to and I can. Define the situation. State the objective. Explore the options. Plan your method of attack. Solve the problem. Look back. The irony of a problem-solving process in which one of the steps is Solve the problem was not lost on me. But thats not why the seven-step problem-solving paradigm is stupid. Over the course of my college career, there was not one problem that I solved because I applied the seven-step paradigm. It therefore had no value to me. I had my own paradigm, which was much more direct. Here it is, with the benefit of hindsight. For easy problems: Read the problem. Write down the answer. For h arder problems: Understand the problem. Figure out the solution. After I manage to crack the problem in my head, finish writing down whatever is needed to get credit for it. This worked fine. There are two problems with the seven-step paradigm. First, its largely unnecessary. In most cases, most of the steps can be dropped. So Occams Razor hacks it to bits. Second, and more damning, is that the paradigm doesnt model the way people really think. Figuring things out is an unstructured activity. You bring all your experience and knowledge to bear, you look at the problem from several angles, you draw some diagrams, and you think you see an approach. So you try it. And it doesnt work. Or it starts to get really involved and you think, Surely this isnt what the professor intended me to do. So you start over. In my experience, this is the most effective way to attack small problems. iD5? I graduated and got a job as an engineer with a software consulting company. Astoundingly, this compan y had a five-step project paradigm. In this case, however, it served a purpose: to separate our clients from their money. (Arguably, the company had its eyes on the goal.) The paradigm was called the iD5 methodology. I dont remember what the i stood for?probably the name of the company?but here are the 5 Ds. Discover Define Design Develop Deploy This was purely a marketing tool. There was nothing behind these five words. But unfortunately, they did have an impact. The problem is that the real process of software engineering is iterative by nature. You must deploy something simple very early, or you risk spending too much effort on something your customer doesnt want. But by the time any engineer came in contact with a client, the client had already been sold on our companys magical iD5 methodology. So the engineers hands were tied. Today, the successor to that company has a new methodology, called by a different name, with three phases: Conceive, Architect, Engineer. To me, it seems this is better, inasmuch as its even more vague and therefore less constraining. The Point of It All My point with all these examples is that general problem-solving paradigms are 90% fraud. Its great to have an organized mind, but following some kind of vague process by rote doesnt help anyone keep things straight. Still, in some cases theres a kernel of something important at the heart of the process. Lets return to the whiteboard in The Goal: Identify the systems constraint(s). Decide how to exploit the systems constraint(s). Subordinate everything else to the above decision. Elevate the systems constraint(s). Warning!!!! If in the previous steps a constraint has been broken, go back to step 1, but do not allow inertia to cause a systems constraint. Is there anything important here? Whats the bottom line? This boils down to: Find the problems. Fix the problems. Make sure you dont create other problems. It seems to me theres no special insight here after all. But that doesnt mean there arent broader lessons to be learned from the first half of The Goal. Its just that Rogo and his team didnt find the lessons that most readers really need to learn. And since Im so smart, heres what I think those lessons are. Keep the goal in mind. In The Goal, starting over from the first principle yielded a lot of surprising results. Question your systems and your metrics. If your metrics look great but youre not profitable, youre measuring the wrong things. Aggressively hunt down and identify your problems. Stay focused. If you have a lot of problems, maybe theres a common root cause. Dont settle for treating the symptoms: cure the disease. In the book, Rogo doesnt really understand the problems at all until Jonah points them out, and several times during the book the team at first fails to make some key distinction about what the problem really is. Once youve found the real problem, aggressively pursue every solution possible. The idea is that youve found a block thats pre venting you from reaching your goal. Have the courage of your convictions. Question everything again after youve fixed it. You have a chance to foresee the next problem. Rogos team misses this chance once or twice, and Rogo kicks himself for it later. (Something else remarkable happened in The Goal. Success bred on success. Rogos courage in re-evaluating everything, discarding the old rules, and taking action empowered the rest of his team. It started them thinking. Each time one problem was solved, it gave somebody on the team an idea for how things could be improved further. They started showing the initiative to pursue ideas that they would otherwise have dropped and forgotten. I think this really happens in business. Leadership makes a difference.) The general lessons of The Goal are about coping with new ideas, staying focused, questioning everything, and boldly addressing problems. By the end of the book, Rogo has internalized these lessons. But they are never presented as a w hole to the reader. The Goal as a Book Ill add a few last comments about The Goal as a novel and why it was framed this way. The Goal is extremely readable. Its all written in the present tense, using small words and a conversational tone. Theres a harmless little subplot involving Rogos disintegrating family life, which provides a nice change of pace once in a while. (Goldratt vaguely implies that the theory of constraints can be effectively used in ones home life, but the book doesnt really pursue it.) The characters are bland but likeable. Goldratt mentions in a preface to the second edition of The Goal that he believes a persons own thought processes are the best teacher. To that end, he uses something like the Socratic method in his novel. But unlike Platos Socratic dialogues, in which the hapless victim is overwhelmed by the dizzying force and speed of Socrates penetrating lines of questioning, Goldratt has Jonah ask a question and then abandon Rogo to struggle through to the answer on his own. Rogo puts the pieces together very slowly, so an astute reader will suspect many of the answers before Rogo discovers them. This is an interesting teaching method. I think it is probably quite effective. Nonetheless, I would have preferred The Goal as an 18-page white paper. So why was The Goal a novel? Bottom line: its easy to sell ideas in novel form. There were already a dozen essays or articles on manufacturing management paradigms; you couldnt sell those. Novels sell better than essays. Theyre more readable. Once you realize that managers will buy thousands of copies of a business novel and make it required reading for their subordinates, a novel is the only way to go. (Also, The Goal was originally intended as marketing for Goldratts plant management software company.) My main objection to The Goal is that its fiction. Rogo makes a few changes, and his problems miraculously go away. It just works. Granted, the policies seem like good sense. But the unrealist ic points are glossed over. Maybe plant managers in real life have the authority to adopt dramatic changes in the way they operate, the way Rogo did. Maybe its easy to convince your top accountant that all his models are wrong, even though you have no accounting experience yourself. Maybe the average plant has an IT department that can create new scheduling software out of thin air in a few days. Maybe not. Goldratt claims a lot of real-life plant managers say theyve turned The Goal into a documentary. Thats a book I havent read yet. .u48a359f438a928205a2f821cc4984f0a , .u48a359f438a928205a2f821cc4984f0a .postImageUrl , .u48a359f438a928205a2f821cc4984f0a .centered-text-area { min-height: 80px; position: relative; } .u48a359f438a928205a2f821cc4984f0a , .u48a359f438a928205a2f821cc4984f0a:hover , .u48a359f438a928205a2f821cc4984f0a:visited , .u48a359f438a928205a2f821cc4984f0a:active { border:0!important; } .u48a359f438a928205a2f821cc4984f0a .clearfix:after { content: ""; display: table; clear: both; } .u48a359f438a928205a2f821cc4984f0a { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u48a359f438a928205a2f821cc4984f0a:active , .u48a359f438a928205a2f821cc4984f0a:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u48a359f438a928205a2f821cc4984f0a .centered-text-area { width: 100%; position: relative ; } .u48a359f438a928205a2f821cc4984f0a .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u48a359f438a928205a2f821cc4984f0a .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u48a359f438a928205a2f821cc4984f0a .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u48a359f438a928205a2f821cc4984f0a:hover .ctaButton { background-color: #34495E!important; } .u48a359f438a928205a2f821cc4984f0a .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u48a359f438a928205a2f821cc4984f0a .u48a359f438a928205a2f821cc4984f0a-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u48a359f438a928205a2f821cc4984f0a:after { content: ""; display: block; clear: both; } READ: Just before the beginning of World War II, Albert Essay We will write a custom essay on Academic Goal specifically for you for only $16.38 $13.9/page Order now