Tag: Advanced Accounting Notes

The concept of plant layout is not static but dynamic one. It is on account of continuous manufacturing and technological improvements taking place necessitating quick and immediate changes in production processes and designs. A new layout may be necessary because of technological changes in the products as well as simple change in processes, machines, methods and materials”.

A new layout also becomes necessary when the existing layout becomes ineffective and poor or is not conducive to the changed circumstances. There are certain indications which raise alarm for immediate changes in the existing layout of plant.

These indications may be in the form of excessive manufacturing time, improper storage, lack of control over materials and employees, poor customer service, excessive work in progress and work stoppages etc.

Objectives of Plant Layout:

• Maintaining high turnover of in-process inventory
• Streamline flow of materials through the plant
• Effective utilisation of men, equipment and space
• Minimise material handling
• Facilitate manufacturing progress by maintaining balance in the processes
• Reduce hazards affecting employees
• Maintain flexibility of arrangements and of operation
• Increase employee morale
• Minimise interference (i.e. interruption) from machines
• Hold down investment (i.e. keep investment at a lower level) in equipment.

Principles of Plant Layout:

(i) Principle of Space Utilization:

All available cubic space should be effectively utilized – both horizontally and vertically.

(ii) Principle of Minimum Movement:

Materials and labour should be moved over minimum distances; saving cost and time of transportation and material handling.

(iii) Principle of Interdependence:

Interdependent operations and processes should be located in close proximity to each other; to minimize product travel.

(iv) Principle of Flexibility:

Layout should be flexible enough to be adaptable to changes required by expansion or technological development.

(v) Principle of Overall Integration:

All the plant facilities and services should be fully integrated into a single operating unit; to minimize cost of production.

(vi) Principle of Safety:

There should be in-built provision in the design of layout, to provide for comfort and safety of workers.

(vii) Principle of Smooth Flow:

The layout should be so designed as to reduce work bottlenecks and facilitate uninterrupted flow of work throughout the plant.

(viii) Principle of Economy:

The layout should aim at effecting economy in terms of investment in fixed assets.

(ix) Principle of Supervision:

A good layout should facilitate effective supervision over workers.

(x) Principle of Satisfaction:

A good layout should boost up employee morale, by providing them with maximum work satisfaction.

A statement of intent, the design brief states the problem to be addressed. It serves as a starting point from where the design team can orient themselves. By itself however, it does not offer sufficient information with which to begin the actual design process.

The Product Design Specification (PDS)

A vitally important but often overlooked and misunderstood stage, the PDS document lists the problem in detail. Before working on producing a solution, there needs to be a deep understanding of the actual problem identified. This document should be designed after conversations with the customer and an analysis of the market and competitors. The design team should refer back to it often for correct orientation at later stages.

The Concept Design

With the PDS document as a guide, the design team will now begin to outline a solution. At this stage, the design is largely conceptual, with a framework of key components in place with details to a later stage.  The details included at this stage will depend on the type of product being designed. It is important to understand both upstream and downstream concerns relating to the product at this point. These may include activities such as manufacturing, sales and production costs among other things. This early understanding of the value chain will help eliminate or reduce rework and multiple iterations.

In this stage, concept generation and evaluation are both a vital consideration. Multiple concepts, each fulfilling the product requirements previously identified are identified and then evaluated to decide the best way forward.

The Concept Generation

At this point, a design team may involve a larger audience to help brainstorm the details of concepts drawn up in the previous stage. A group that includes various expertise may end up being the most successful in terms of creative ideas and solutions. It is pertinent to encourage all ideas to be voiced as this increases the chances of innovation.

The Concept Evaluation

With a number of potential concepts in hand, a suitable design now needs to be chosen that fulfills the product design specifications previously generated. This document should serve as a basis for final design decisions. Again, a multi skilled team should be involved here so that all angles of the chosen design can be evaluated. The concept that is closest in solving the problem identified and fulfills the most design requirements will now be developed in detail.

The Detailed Design

At this point, the final concept has been chosen and most obvious kinks have been worked out. The concept is now designed in detail with the necessary dimensions and specifications. At this stage, it may be important to produce one of more prototypes to test the product in close to real scenarios. It becomes vital for the design team to work in close cooperation with other units such as manufacturing and logistics to ensure the practical aspects of production and supply.

Eliminating Design Iterations

Although traditionally sequential, multiple iterations within these stages can be reduced by asking the following questions:

• Manufacturing: Can we make the product at our existing facility?
• Sales: Are we able to produce what the customer wants?
• Purchasing: Do we have required parts available or do they need to be ordered?
• Cost: What will the design cost us to make?
• Transport: is the product sized for available transportation methods? Will there be any special transportation needs?
• Disposal: How will the product be disposed of at the end of its life?

Product Design Types

Two basic categories encompass most product designs. These are:

Demand: Pull Innovation

Demand: Pull happens when a product design can directly take advantage of an opportunity in the market. A new design works towards solving an existing design issue. This happens either through a new product or a variation of an existing product.

Invention: Push Innovation

This innovation occurs with an advancement in technology or intelligence. This is driven through research or a creative new product design.

Process

Following stage process for product development.

• The 1st stage is idea generation that is the search for new products. Companies pay a particular focus on customer needs and demands to decide on the new product. Idea generation can also be done by studying competitor’s product. Companies try to learn why competitor’s product ticks with consumer or what more customers want from that product. Companies also look at top management for idea generation. For example, Steve Jobs of Apple is known to participate actively in an idea generation. Research groups comprising of scientist, patent holders, colleges and universities also serve as the base for idea generation.
• The 2nd stage is idea screening. Not all new ideas proposed can be converted into products. Companies list ideas into three categories promising ideas, marginal ideas and rejects. Promising ideas are further process by screening committee to be ready for the next stage. Screening should avoid the error where good ideas are dropped due to bias towards the idea generator. Another commonly occurring error is encouragement to a commercially unviable idea. Therefore, extra precautions are necessary during the screening process.
• The 3rd stage begins when ideas move into the development process. Here a product idea is converted into several product concepts. Out of several product concepts, the one which looks fit is then placed against competitors to finalize marketing and positioning strategy. Product concept is introduced to a focus group of customer in a form of proto-type to understand their reaction.
• The 4th stage involves developing of marketing strategy for new product. The marketing strategy involves evaluation of market size, product demand, growth potential, profit estimate in first few years. Further marketing strategy plan is developed with the launch of product, selection of distribution channel and budgetary requirements for the 1st year.
• The 5th stage involves the development of the business model around the new product. Business models start with estimation of sales, frequency of purchase, and nature of business. Next estimation of cost and expense involve in production and distribution of new product. In that basis profit estimations are reached. Discounted cash flow and other methods are used to understand feasibility of new product.
• The 6th stage involves the actual production of new product. Here more than one possible product are created, from proto-type to finalized products are produced. Decisions are taken from operation point of view whether is technically and commercially feasible to continue production. If analysis is showing cost not within the estimate then project is abandoned.
• The 7th stage involves market testing of new product. The new product is ready with brand name, packaging, price to capture space in consumer’s mind.
• The 8th stage involves launching of product across target market backed by a proper marketing and strategy plan. This stage is called commercialization phase.

The term “reporting” mean different things as follows:

• Furnishing data at regular intervals in standardized forms,
• Submitting specific information for particular purpose upon specific request instruction.
• Narrating some facts.
• Reviewing certain matter with its merits and demerits and offering comments,

Proper Form

In order to facilitate decision-making, the information supplied should be in proper form. The style and layout of a report depend upon the needs of the individual who will use the same. The report may be submitted in the form of narration [written statement of facts], statisti­cal tabulations, graphs, charts, etc.

Accuracy of Facts

Information contained in a report must be based on accurate fact.

Since decisions are taken on the basis of report information, any inaccurate information or statistics will lead to wrong decision. It will hamper to achieve the organizational goal.

Privileged or Non-Privileged:

Reports can be further classified into privileged or non-privileged. A Privileged Report is that which contains statements or remarks made by some people which may be defamatory to some others but permitted to be spoken under privilege in speech.

A report on proceedings of a case in a court of law or in Assembly or Parliament session, etc. is allowed to be published in newspapers or otherwise. But such a privi­lege is a ‘qualified’ privilege and will be allowed provided the report is accurate and meant for public interest.

But the report containing privileged speeches on a private meeting like the annual general meeting of a company, cannot be published as a privileged report.

Every other kind of report is a Non-privileged Report. Reports in general are non-privileged.

Precision

In a good report, the report writer is very clear about the exact and definite purpose of writing the report. His investigation, analysis, recommendations and others are directed by this central purpose.

Precision of a report provides the unity to the report and makes it a valuable document for best usage.

General or Confidential:

A General Report is that which is for distribution among many, like the members of an organisation- Such reports may be printed in large numbers or even published in newspapers for the public information. The Government publishes reports of different committees or commissions and places them on sale to the public.

A Confidential Report is meant for some superior person or persons and is not for general information. Sometimes the report may be so confidential that the secretary or any other person pre­paring it. Writes it by hand or types it out him-self.

Reader-Orientation

While drafting any report, it is necessary to keep in mind about the person who is going to read it. That’s why a good report is always reader oriented.

Readers knowledge and level of understanding should be considered by the writer of report. Well reader-oriented information qualifies a report to be a good one.

Relevancy

The facts presented in a report should not be only accurate but also be relevant. Irrelevant facts make a report confusing and likely to be misleading to make proper decision.

Conciseness

A good report should be concise but it does not mean that a report can never be long.

Rather it means that a good report or a business report is one that transmits maximum information with minimum words.

It avoids unnecessary detail and includes everything which are significant and necessary to present proper information.

Simple Language

This is just another essential features of a good report. A good report is written in a simple language avoiding vague and unclear words.

The language of the report should not be influenced by the writer’s emotion or goal. The message of a good report should be self-explanatory.

Unbiased Recommendation

Recommendation on report usually make effect on the reader mind.

So if recommendations are made at the end of a report, they must be impartial and objective. They should come as logical conclusion for investigation and analysis.

Grammatical Accuracy

A good report is free from errors. Any faulty construction of a sentence may make its meaning different to the reader’s mind. And sometimes it may become confusing or ambiguous.

Attractive Presentation

Presentation of a report is also a factor which should be consider for a good report. A good report provides a catchy and smart look and creates attention of the reader.

Structure, content, language, typing and presentation style of a good report should be attractive to make a clear impression in the mind of its reader.

Clarity

Clarity depends on proper arrangement of facts. A good report is absolutely clear.

Reporter should make his purpose clear, define his sources, state his findings and finally make necessary recommendation.

To be an effective communication through report, A report must be clear to understand for making communication success.

Summery

A good report should have a summery by which the reader of the report can take a decision at all or stand on a decision what to do next in such condition. So, it is an important feature of a good report.

Ethics are broadly the set of rules, written and unwritten, that govern our expectations of our own and others’ behaviour.

Effectively, they set out how we expect others to behave, and why. While there is broad agreement on some ethical values (for example, that murder is bad), there is also wide variation on how exactly these values should be interpreted in practice.

As in other aspects of business, all parties in research should exhibit ethical behavior. The goal of ethics in research is to ensure that no one is harmed or suffered adverse consequences from research activities.

This objective is usually achieved. However, unethical activities are pervasive and include violating non-disclosure agreement, breaking respondent confidentiality, misrepresenting results, deceiving people, invoicing irregularities, avoiding legal liability, and more.

As research is designed, several ethical considerations must be balanced:

• Protect the rights of the participant or subject.
• Ensure the sponsor receives ethically conducted and reported research
• Follow ethical standards when designing research
• Protect the safety of the researcher and team
• Ensure the research team follows the design

Research must be designed so a respondent does not suffer physical harm, discomfort, pain, embarrassment, or loss of privacy. Begin data collection by explaining to respondent the benefits expected from the research. Explain that their rights and wellbeing will be adequately protected and say how that will be done. Be certain that interviewers obtain in the inform consent of the respondent. The use of deception is questionable; when it is used, debrief any respondent who has been deceived.

Honesty and Integrity

This means that you need to report your research honestly, and that this applies to your methods (what you did), your data, your results, and whether you have previously published any of it. You should not make up any data, including extrapolating unreasonably from some of your results, or do anything which could be construed as trying to mislead anyone. It is better to undersell than over-exaggerate your findings.

Carefulness

Take care in carrying out your research to avoid careless mistakes. You should also review your work carefully and critically to ensure that your results are credible. It is also important to keep full records of your research. If you are asked to act as a peer reviewer, you should take the time to do the job effectively and fully.

Objectivity

You should aim to avoid bias in any aspect of your research, including design, data analysis, interpretation, and peer review. For example, you should never recommend as a peer reviewer someone you know, or who you have worked with, and you should try to ensure that no groups are inadvertently excluded from your research. This also means that you need to disclose any personal or financial interests that may affect your research.

Confidentiality

You should respect anything that has been provided in confidence. You should also follow guidelines on protection of sensitive information such as patient records.

Respect for Intellectual Property

You should never plagiarise, or copy, other people’s work and try to pass it off as your own. You should always ask for permission before using other people’s tools or methods, unpublished data or results. Not doing so is plagiarism. Obviously, you need to respect copyrights and patents, together with other forms of intellectual property, and always acknowledge contributions to your research. If in doubt, acknowledge, to avoid any risk of plagiarism.

Legality

You should always be aware of laws and regulations that govern your work, and be sure that you conform to them.

Confidentiality means that disclosed financial interests marked “Confidential” shall be kept in a locked cabinet accessible only to the Director of Research Integrity and Compliance and /or as encrypted files on a password protected computer. To the extent permitted by law, all records of financial interest submitted by an Investigator shall be made available only to the Conflict-of-Interest Committee and to others on a “need to know” basis with clear understanding of the confidentiality of the information. Records will be destroyed once the record retention period expires.

Objectivity is difficult because experience, our main source of information, is inherently subjective. Generally speaking, we eliminate subjectivity by comparing notes about what we experience with other people who might have been in a position to experience the same thing.

Objective are the persistent patterns of agreement about aspects of experience. The things that everyone agrees one, at least in theory. In practice we sometimes stipulate that any observer will see the same thing after many checks.

For example, anyone who does a thorough job of observing the universe will eventually discover atoms. Atoms are objective, despite not being apparent to the naked senses, because, at least in principle, any suitably skilled observer will observe the evidence that makes atoms seem real.

Thus, objectivity is ensured by comparing notes or having other people look at your data, your methods, and your conclusions. If they make the same inferences then the likelihood of objectivity is higher, if they do not then it is lower. Objectivity is thus never an absolute. We seek it, we approach it, but we never personally attain it. Communities of researchers working together attain much higher degrees of objectivity than individuals, though we may also fall into biases and fallacies that result in collective delusion. Hence a network of communities is ideal so that no one individual or one community dominates the field.

Confidentiality in Research

Confidentiality refers to a condition in which the researcher knows the identity of a research subject, but takes steps to protect that identity from being discovered by others. Most human subjects research requires the collection of a signed consent agreement from participants, and the collection of other personally identifiable data, and thus researchers are aware of the identity of their subjects. In such cases, maintaining confidentiality is a key measure to ensure the protection of private information.

Researchers employ various methods to keep their subjects’ identity confidential.  Foremost, they keep their records secure through the use of password protected files, encryption when sending information over the internet, and even old-fashioned locked doors and drawers. They frequently do not record information in a way that links subject responses with identifying information (usually by use of a code known only to them). And because subjects may not be identified by names alone, but by other identifiers or by combinations of information about subjects, researchers will often only report aggregate findings, not individual-level data, to the public.

Anonymity in Research

Anonymity is a condition in which the identity of individual subjects is not known to researchers. Because most human subjects research requires signed documentation of consent, subject anonymity is not as common in human subjects’ research.  Federal law does allow an IRB to waive the requirement for signed consent documents in cases where the collection of that document is the only identifying information linking the subject to the project.  Such documentation is most often waived for projects such as online survey that present no more than minimal risk to subjects.

Anonymity means that there is no way for anyone (including the researcher) to personally identify participants in the study. This means that no personally-identifying information can be collected in an anonymous study. Personally-identifying information includes, but is not limited to, names, addresses, e-mail addresses, phone numbers, government-issued ID numbers (e.g., social security numbers), photographs, and IP addresses. This also means that any study conducted face-to-face or over the phone cannot be considered anonymous; this rules out virtually all qualitative research that involves interviews.

As you develop your human subjects review application, please be certain you understand the distinction between confidentiality and anonymity, and that you use the appropriate terms in your project description and consent documents.