...Pareto was born of an exiled noble Genoese[->0] family in 1848 in Paris, the centre of the popular revolutions of that year. His father, Raffaele Pareto (1812–1882), was an Italian civil engineer and Ligurian marchese who had left Italy much like Mazzini and other Italian nationalists.[3] His mother, Marie Metenier, was a French woman. Enthusiastic about the 1848 German revolution[->1], his parents named him Fritz Wilfried, which became Vilfredo Federico upon his family's move back to Italy in 1858.[4] In his childhood, Pareto lived in a middle-class environment, receiving a high standard of education. In 1869, he earned a doctor's degree in engineering from what is now the Polytechnic University of Turin[->2].[3] His dissertation was entitled "The Fundamental Principles of Equilibrium in Solid Bodies". His later interest in equilibrium analysis in economics[->3] and sociology[->4] can be traced back to this paper. From Civil engineer to liberal, and then to economist[edit[->5]] For some years after graduation, he worked as a civil engineer[->6], first for the state-owned Italian Railway Company and later in private industry. He was manager of the Iron Works of San Giovanni Valdarno and later general manager of Italian Iron Works.[3] He did not begin serious work in economics until his mid-forties. He started his career a fiery liberal[->7], besting the most ardent British liberals with his attacks on any form of government intervention in the free market[->8]. In 1886 he became...
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...Problem1. No breakfast in the morning There is no breakfast provided during the morning time in the restaurant. According to the manager, the chef only works from 10:00 am to11:00 pm in the daytime. Considering that hiring extra staff to cook in the morning will increase the restaurant’s operating cost, they mainly focus on lunch and dinner, which could result in a loss of potential customers. The restaurant should seize every possible opportunity to expose itself to business and interact with the customers to enhance its promotion, especially for it has just opened recently. People who pass the restaurant in the morning and find it not operating may leave an impression that it is closed for the whole day and probably will not come for lunch or dinner. This causes a negative impact on their promotion. Therefore providing breakfast is important for impressing its potential customers and maintaining customer relationship. Solution The placement of the restaurant locates near the student hall of the Hong Kong Polytechnic University (PolyU). So many students may pass by the restaurant in the morning to the PolyU campus. Usually students do not stay in the restaurant to have breakfast as they are in a hurry for classes. Instead, they buy the take-out to eat in school. So the restaurant does not need a chef to cook special breakfast. They can have their normal staff to make simple sandwiches and soya-bean milk for people to buy as a take-out. This not only increases their revenue...
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...OPERATIONS MANAGEMENT 1.1 Outline the steps involved in Benchmarking. Introduction Benchmarking is the process of measuring an organisation’s internal processes then identifying, understanding and adapting outstanding practices from other organisations considered to be best – in – class. The essence of benchmarking is the process of borrowing ideas and adapting them to gain competitive advantage. It is a tool for continuous improvement, for e.g the Ministry of Civil Service and Administrative reform initiatives and maintains links with other organisations at national and international levels, so as to keep track of latest development in public management practices. BENCHMARKING CONCEPT Benchmarking is a way to go backstage and watch another company’s performance from the wings where all stage tricks and realignments are visible. This can be illustrated as follows: What is our performance level? How do we do it? What are others performance levels? How did they get there? Creative Adaptation Adapted from the Benchmarking Concept : Institute of Industrial Engineers (Page 208), 1995. Breakthrough Performance Benchmarking involves setting standards for business operations based on the best practice that can be found. For example, a business targeting rapid and significant growth may choose comparisons with an established market leader. The term “benchmarking” emerged when the idea took ground in US during 1980s when Xerox, Ford...
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...PARETO ANALYSIS Category: Analysis Tools ABSTRACT Pareto Analysis(G) is a statistical technique in decision making that is used for the selection of a limited number of tasks that produce significant overall effect. It uses the Pareto Principle (also know as the 80/20 rule) the idea that by doing 20% of the work you can generate 80% of the benefit of doing the whole job. Or in terms of quality improvement, a large majority of problems (80%) are produced by a few key causes (20%) KEYWORDS Pareto Analysis, Pareto Paradigm, Pareto Chart(G), Pareto Principle, Quality Control, organizing data, frequency of impact of problems, process improvement OBJECTIVES A Pareto chart has the following objectives: Separate the few major problems from the many possible problems so you can focus your improvement efforts. Arrange data according to priority or importance. Determine which problems are most important using data, not perceptions. FIELD OF APPLICATION Pareto diagrams could be applied in: designing of medical processes in order to identify errors, faults, incidents or in the construction of a system that reduces the risk of medical care. analyzing performance data in health organizations. RELATED TOOLS Fishbone diagram, Scatter Diagram, Run Charts, Flow Charts DESCRIPTION The Pareto diagram is named after Vilfredo Pareto, a 19th-century Italian economist who conducted a study in Europe in the early 1900s on wealth and poverty. He found that...
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...Our company’s merged to avoid the bankruptcy, a Pareto Efficient outcome. Given we essentially had a negative bargaining zone (dispute context), as total resources I was owed and needed immediately, were less than Sandy could pay, integrative bargaining provided full disclosure and an optimal solution. Power is evident from the ability to force bankruptcy based on my contract rights, however, in court this power would prove useless if Sandy went bankrupt. Sandy has the power to declare bankruptcy and the right to argue rights due to Fawn’s actions. It was necessary to put aside a heated power and rights debate, to achieve our interests. We agreed bankruptcy was not an option, so became completely honest. A merger allowed us to maximize gains for both parties and even increase the ‘pie’. Together we can make profits from investments and carpeting. Furthermore, with combined resources, I can make all future investments and benefit from any carpeting work. This is a source of competitive advantage. I was also pleased with the level of cooperation from Sandy, who did not complain about Fawn. This developed trust, which clearly did not exist, lending us to a merger. I invited criticism and advice on this to develop the solution and relationship. By doing a merger, trust became implied, thereby disclosing all relevant information (and knowing whether one of us lied prior) to reach the Pareto Efficient equilibrium. With such collaboration, I was pleased with the ability to...
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...opening chapter/salvo, discusses the reasonableness of a price system, whereby price—the neon billboard—“dictates” the movements of goods and services. Price is a summary of market conditions. It informs both producers and consumers. Without this information, estimates of cost, of expected returns, of distribution, of budget, etc. are distorted. Allocation by price is contrasted against cronyism and a first-come-first-serve breadline. In the former, inefficiency is guaranteed (or your money kept). In the latter, inefficiency is also guaranteed. Inefficiency, as it is used here, is a euphemism for deprivation. Yes, the troika is a cruel mistress when mismanaged. A price allocative system, according to Wheelan, reaches nearest Pareto Efficiency. The Law of Supply and Demand is covered with an example; in this case, the offending example is a fish—a tuna fish. How is it that the amount and availability of tuna increase when demand for tuna increases? [Presumably, we’re talking about shifts, rather than movements]. The answer, again, is a free market predicated on price. How...
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...WORK LIFE TIME MANAGEMENT POST TRAINING ASSIGNMENT 1. What are the areas of learning that you acquired from the training? 2. Provide some recommendations on how you can apply the learning to your workplace. Elaborate. The area of learning that I acquired from the training is Pareto Principle – “80% percent of the value comes from 20% of the items.” Of the things we do during the day, only 20% really matters, therefore at work, I should prioritize the main items to be done everyday and avoid wasting time on the 80% that are not important. For example, fillings of unimportant documents do not need to be done straight away. It can be done during tea break and utilized the normal working time to complete other more important tasks. Another area of learning from the training is Murphy’s law – “If things can go wrong, they will go wrong.” There are areas that are beyond our control therefore for any occasion, we would need to perceive that there will be uncertainty in life and estimate more time for completion. For example, when work assigned need to be completed within the day, I should complete as much as I can in the morning because there might be disruptions during the day or new assignment that is urgent to be completed first but still cannot delay the proposed tasks. The last area of learning is to understand on task values. One should aim to schedule 60% of your time for proactive tasks, leaving the other 40% for reactive and maintenance tasks. One should...
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...Prompt #11: I believe that the eighty/ twenty rule that Malcolm Gladwell discusses in the novel, meaning that eighty percent of work is done by twenty percent of people, is very relatable to the real world. This 80/20 rule is known mainly as Pareto's Law. Founded by Vilfredo Pareto in 1906, the formula was established to describe the inequal distribution of wealth in Pareto's home country of Italy. He stated that 20% of the people owned 80% of the countries wealth and hence the eighty/ twenty rule was established. The 80/20 rule has been changed from its strictly economical meanings to purely mean that in anything a few (20 percent) are vital and many(80 percent) are trivial. Two modern day examples where this rule is clearly visible are in the classroom and also in athletics. In sports the eighty twenty rule could be displayed in many different ways. One example would be the salaries of players. If you look at the roster of the New York Knicks, a basketball team in the Eastern Conference of the NBA, you will find that they have had a total of 21 players this season. Between those 21 athletes the team as a whole was set to make over eighty-one million dollars. If you look at the individual player salaries though you will find that not all players make an even amount. In fact, the top four earners on the team (Carmelo Anthony, Amare Stoudemire, Andrea Bargnani, and Jose Caledron) were set to earn almost 63 million dollars alone. That's almost 77% of the teams total...
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...The Quality Contributions of Joseph Juran Team 6 October 13, 2015 This report will cover a short biography of Joseph Juran, as well as his principles and quality contributions. These will include the ideology behind the Juran Trilogy, publications, and his present day impact on quality practices. Executive Summary Joseph Juran is one of the leading contributors to quality theory. He established “The Juran Trilogy” to identify the three main components of quality improvement: planning, control, and improvement, as well as writing multiple books, and “Juran’s Quality Handbook.” His concepts have helped define quality analysis to reduce waste caused by quality inefficiencies, and are still used in quality improvement models today. The Juran Handbook is a compilation of Juran’s theories as well as other quality professionals to establish an overall explanation of quality concepts, and areas of improvement. This handbook elaborates on concepts such as strategic deployment, total quality management, and how to train for quality improvements. Published in 1998 by McGraw-Hill, Juran’s Handbook is used as an excellent tool to describe and implement quality improvements in any organizational function. Joseph Juran featured writings add the human dimension to quality, they clarify processes, theories, and models to individuals and firms. The writing listed in the Joseph Juan publication sections are just a few of the many writing in his life, but each brought an extraordinary...
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...list of Frequently Used Symbols and Notation A text such as Intermediate Financial Theory is, by nature, relatively notation intensive. We have adopted a strategy to minimize the notational burden within each individual chapter at the cost of being, at times, inconsistent in our use of symbols across chapters. We list here a set of symbols regularly used with their specific meaning. At times, however, we have found it more practical to use some of the listed symbols to represent a different concept. In other instances, clarity required making the symbolic representation more precise (e.g., by being more specific as to the time dimension of an interest rate). Roman Alphabet a Amount invested in the risky asset; in Chapter 14, fraction of wealth invested in the risky asset or portfolio AT Transpose of the matrix (or vector)A c Consumption; in Chapter 14 only, consumption is represented by C, while c represents ln C ck Consumption of agent k in state of nature θ θ CE Certainty equivalent CA Price of an American call option CE Price of a European call option d Dividend rate or amount ∆ Number of shares in the replicating portfolio (Chapter xx E The expectations operator ek Endowment of agent k in state of nature θ θ f Futures position (Chapter 16); pf Price of a futures contract (Chapter 16) F, G Cumulative distribution functions associated with densities: f, g Probability density functions K The strike or exercise price of an option K(˜) Kurtosis of the random variable x x ˜ L A lottery...
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...Based on our findings, we recommended the following: * Replenish all inventories at picking locations at the end of every night shift. * Use continual off-line replenishment of picking location stock throughout the night. * Implement "inventory-by-location" at receiving, warehouse and shipping operations * Move transactional processing and posting receipts, issues, and inventory balance updates from the office to the functional locations at receiving, warehouse, and shipping. * Implement bar coding applications within receiving, warehouse, and shipping. * Begin cycle counting during downtime to increase balance accuracy to 98% * Develop written operating policies, procedures, job instructions, and job descriptions for warehouse operations to stabilize operations, provide sustainability, and to be used to train workers. * Convert the job of the person in the office posting transactions to a full time inventory auditor * Use a separate audit team during monthly physical inventories checking 10% of counts, and requiring a recount when physical count discrepancies are found * Program the current system to automatically produce shipping/delivery invoices * Program the current system to include manual transactions such as pick-up and reship memos, and to sort them with picking lists. The results from the implementation of our recommendations were: * Productivity improvements of 20-30% in warehouse receiving, picking, and...
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...Although aspects of quality in the manufacturing environment have been around from the early 1900s, what one has come to know about quality today is that it was achieved through a process of evolution or continual improvement. Quality has always been driven by what the consumer wants or needs, but that provides a wide berth of true meanings. This paper will review some of the meanings, elements of quality and one of the pioneers in this area. As mentioned quality is based on one’s demands on the manufacturer or service provider that then takes into account the quality of the manufacturer’s employees, the processes to manufacture, and the environment in which products are produced. The goal of quality is to ensure that the manufacturer is producing a product that meets or exceeds its customer expectations and the ability to keep the customer for the long term. At the same time quality-driven practices help the company reduce productivity errors by empowering the employees, reduce their costs by requiring suppliers to do the same, and deliver the product on time based on a strategic plan. Of course, quality standards in the United States may and are different from other parts of the world. The origins of quality in the United States took much of its shape from Japan in the mid-1900s when it was realized that most consumers referred to Japanese made products as poor quality; by taking charge of their manufacturing destiny quality in Japan turned a 180 degrees....
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...Table of Contents 1.0 Introduction 2 1.1 Total Quality Management 2 1.2 Quality Improvement Strategy 2 1.3 Key Tools for Quality Improvement 2 1.4 Problem Statement 2 1.5 The main Objective 2 1.6 Specific Objectives 2 2.0 Literature Review 2 2.1 Pareto Analysis 2 3.0 Methodology 2 3.1 Data Collection 2 4.0 Results and Findings 2 5.0 Recommendations 2 5.1 Response 2 5.2 Limitations 2 5.3 Conclusion 2 References: 2 CHAPTER ONE 1.0 Introduction This paper aims at demonstrating the use of total quality management Pareto Analysis technique tool at Customs Department in Tanzania Revenue Authority to improve the process of clearing imported cargo through the Dar es salaam Port. One of the focal points in international trade is the country’s borders and the performance of customs and other border agencies, in particular their efficiency in clearing goods. In the modern business environment of just-in-time production and delivery it has become ever more important for traders to be guaranteed fast and predictable release of imported goods. 1.1 Total Quality Management TQM stands for Total Quality management. It is one of the most effective and least understood corporate strategies. It can affect every level, procedure and every person in a company. It is a most comprehensive process that can bring a company to the forefront of the global market. TQM has been defined in many ways by various authors. Some of them are being...
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...‘The price mechanism can be relied upon to provide efficiency’ Discuss. The price mechanism is the phenomenon where the market forces of supply and demand interact to reach an equilibrium price and quantity such that the quantity demanded by the buyers is exactly equal to the quantity supplied by the sellers. In a free market economy, where there is no government intervention, the allocation of all resources happens through the price mechanism. Meaning that the price mechanism is what balances the production and consumption of goods. When the demand for a particular good increases, its price will increase since the increase in demand means that there is currently a shortage of the good in the market. The new higher rate works as an incentive for sellers to supply more of the good with the expectation of increasing their profits. However, the increase in supply will lead to a fall in the price, and the sellers will reduce the quantity of the good produced. Thus, the price will eventually be pushed back to the equilibrium market price. In contrast, should the demand for a particular product fall, then there will be an excess supply in the market for the specific commodity. The producers of the product will then be forced to reduce the market price to eliminate the surplus of the good. The new lower price will indicate to the sellers that they should produce less of the particular product since they can’t make as much profit as before by selling it. The fall in the supply...
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...In Islam there is no conflict between matter and soul, as there is no separation between economy and religion. Although Islamic economics is young in comparison with conventional economics, its characteristics, value and essence are appreciated by Muslims and the non-Muslims. The over-arching values of Islamic economics lie in the principle that it is an economic strategy that can achieve unity and harmony between the material and the spiritual life of the people. To ensure the true well-being of all individuals, irrespective of their sex, age, race, religion and wealth, Islamic economics does not seek to abolish private property, a practice done by communism, nor does it prevent individuals from serving their self-interest. It recognizes the role of the market forces in the efficient allocation of resources. It seeks to promote brotherhood, socio-economic justice and well-being of all through an integrated role of moral values, market mechanism and good governance. The differences between conventional and Islamic economics are as listed below. 1. The Role of Moral Values While conventional economics generally considers the behavior, tastes and preferences of individuals as given, Islamic economics does not do so. It places great emphasis on individual and social reforms through moral uplift. This is purportedly to be the purpose for which God’s messengers have come to this world. Moral uplift aims at changing the behavior, tastes and preferences of the individuals, and...
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