BUDGET, BUDGETING & BUDGETARY CONTROL:
1. BUDGET: A budget is a blue print of a plan expressed in quantitative terms.
2. BUDGETING: is technique for formulating budgets.
3. BUDGETARY CONTROL: refers to the principles, procedures & practices of achieving given objectives through budgets.
REQUISITIES FOR A SUCCESSFUL BUDGETARY CONTROL SYSTEM:
Clarifying objectives.
Proper Delegation & Responsibility.
Proper Communication System.
Budget Education.
Participation of All Employees.
Flexibility.
Motivation.
1. CLARIFYING OBJECTIVES
Objectives must be clearly spelt out.
In the absence of clear goals, the budgets will also be unrealistic.
2. PROPER DELEGATION OF AUTHORITY & RESPONSIBILITY
Involve every level of management.
Finalized by the top management.
3. PROPER COMMUNICATION SYSTEM
Information regarding budgets should be quick
4. BUDGET EDUCATION
Employees should be properly educated.
Educated about the role.
BC is not a control device should be used as a tool to improve their efficiency
5. PARTICIPATION OF ALL EMPLOYEES
For every segment of the business.
Require active participation & involvement all employees.
On the basis of past experiences.
6. FLEXIBILITY
Budgets are prepared for the future, which is always uncertain.
Flexibility will make the budgets more appropriate and realistic.
7. MOTIVATION
Implemented by the human beings.
Successful budgets depend upon the interest shown by the employees.
All persons should be motivated.
CLASSIFICATION & TYPES OF BUDGETS:
A. CLASSIFICATION ACCORDING TO TIME:
1. Long-term budgets.
2. Short-term budgets.
3. Current budgets.
B. CLASSIFICATION ON THE BASIS OF FUNCTIONS:
1. Operating Budgets.
2. Financial Budgets.
3. Master Budgets.
CLASSIFICATION ACCORDING TO TIME:
LONG-TERM BUDGETS:
Represent long term planning of the business.
Done by the top-management.
Not known to lower-levels of management.
Lt’s are prepared such as CB, R&D & LTF.
SHORT-TERM BUDGETS:
Generally for one or two years.
Consumer goods industries like Sugar, cotton, textile etc
CURRENT BUDGETS:
Budgets is generally of months and weeks.
Current activities of the business.
CLASSIFICATION ACCORDING TO THE FUNCTIONS:
OPERATING BUDGETS:
Sales budget.
Production budget.
Production cost budget.
Purchase budget.
Raw material budget.
Labour budget.
Manufacturing expenses.
Administrative & selling expenses, budget.
PROGRAMME BUDGET:
Expected revenue &
Costs of various products or projects.
Budget can be prepared for each product line or project showing revenues.
PB useful in locating areas where efforts may be required to reduce costs & increase revenues.
FINANCIAL & MASTER BUDGET
FINANCIAL BUDGET
Cash Budget.
Working Capital Budget.
Capital Expenditure.
Income statement budget.
Balance Sheet
MASTER BUDGET:
Various functional budget are integrated into master budget.
ZERO BASED BUDGETING:
At the time of preparation of annual budget, a base is determined from which the budgeting process is started.
Sunday, December 26, 2010
Budgetary Conrol
BUDGET, BUDGETING & BUDGETARY CONTROL:
1. BUDGET: A budget is a blue print of a plan expressed in quantitative terms.
2. BUDGETING: is technique for formulating budgets.
3. BUDGETARY CONTROL: refers to the principles, procedures & practices of achieving given objectives through budgets.
REQUISITIES FOR A SUCCESSFUL BUDGETARY CONTROL SYSTEM:
Clarifying objectives.
Proper Delegation & Responsibility.
Proper Communication System.
Budget Education.
Participation of All Employees.
Flexibility.
Motivation.
1. CLARIFYING OBJECTIVES
Objectives must be clearly spelt out.
In the absence of clear goals, the budgets will also be unrealistic.
2. PROPER DELEGATION OF AUTHORITY & RESPONSIBILITY
Involve every level of management.
Finalized by the top management.
3. PROPER COMMUNICATION SYSTEM
Information regarding budgets should be quick
4. BUDGET EDUCATION
Employees should be properly educated.
Educated about the role.
BC is not a control device should be used as a tool to improve their efficiency
5. PARTICIPATION OF ALL EMPLOYEES
For every segment of the business.
Require active participation & involvement all employees.
On the basis of past experiences.
6. FLEXIBILITY
Budgets are prepared for the future, which is always uncertain.
Flexibility will make the budgets more appropriate and realistic.
7. MOTIVATION
Implemented by the human beings.
Successful budgets depend upon the interest shown by the employees.
All persons should be motivated.
CLASSIFICATION & TYPES OF BUDGETS:
A. CLASSIFICATION ACCORDING TO TIME:
1. Long-term budgets.
2. Short-term budgets.
3. Current budgets.
B. CLASSIFICATION ON THE BASIS OF FUNCTIONS:
1. Operating Budgets.
2. Financial Budgets.
3. Master Budgets.
CLASSIFICATION ACCORDING TO TIME:
LONG-TERM BUDGETS:
Represent long term planning of the business.
Done by the top-management.
Not known to lower-levels of management.
Lt’s are prepared such as CB, R&D & LTF.
SHORT-TERM BUDGETS:
Generally for one or two years.
Consumer goods industries like Sugar, cotton, textile etc
CURRENT BUDGETS:
Budgets is generally of months and weeks.
Current activities of the business.
CLASSIFICATION ACCORDING TO THE FUNCTIONS:
OPERATING BUDGETS:
Sales budget.
Production budget.
Production cost budget.
Purchase budget.
Raw material budget.
Labour budget.
Manufacturing expenses.
Administrative & selling expenses, budget.
PROGRAMME BUDGET:
Expected revenue &
Costs of various products or projects.
Budget can be prepared for each product line or project showing revenues.
PB useful in locating areas where efforts may be required to reduce costs & increase revenues.
FINANCIAL & MASTER BUDGET
FINANCIAL BUDGET
Cash Budget.
Working Capital Budget.
Capital Expenditure.
Income statement budget.
Balance Sheet
MASTER BUDGET:
Various functional budget are integrated into master budget.
ZERO BASED BUDGETING:
At the time of preparation of annual budget, a base is determined from which the budgeting process is started.
1. BUDGET: A budget is a blue print of a plan expressed in quantitative terms.
2. BUDGETING: is technique for formulating budgets.
3. BUDGETARY CONTROL: refers to the principles, procedures & practices of achieving given objectives through budgets.
REQUISITIES FOR A SUCCESSFUL BUDGETARY CONTROL SYSTEM:
Clarifying objectives.
Proper Delegation & Responsibility.
Proper Communication System.
Budget Education.
Participation of All Employees.
Flexibility.
Motivation.
1. CLARIFYING OBJECTIVES
Objectives must be clearly spelt out.
In the absence of clear goals, the budgets will also be unrealistic.
2. PROPER DELEGATION OF AUTHORITY & RESPONSIBILITY
Involve every level of management.
Finalized by the top management.
3. PROPER COMMUNICATION SYSTEM
Information regarding budgets should be quick
4. BUDGET EDUCATION
Employees should be properly educated.
Educated about the role.
BC is not a control device should be used as a tool to improve their efficiency
5. PARTICIPATION OF ALL EMPLOYEES
For every segment of the business.
Require active participation & involvement all employees.
On the basis of past experiences.
6. FLEXIBILITY
Budgets are prepared for the future, which is always uncertain.
Flexibility will make the budgets more appropriate and realistic.
7. MOTIVATION
Implemented by the human beings.
Successful budgets depend upon the interest shown by the employees.
All persons should be motivated.
CLASSIFICATION & TYPES OF BUDGETS:
A. CLASSIFICATION ACCORDING TO TIME:
1. Long-term budgets.
2. Short-term budgets.
3. Current budgets.
B. CLASSIFICATION ON THE BASIS OF FUNCTIONS:
1. Operating Budgets.
2. Financial Budgets.
3. Master Budgets.
CLASSIFICATION ACCORDING TO TIME:
LONG-TERM BUDGETS:
Represent long term planning of the business.
Done by the top-management.
Not known to lower-levels of management.
Lt’s are prepared such as CB, R&D & LTF.
SHORT-TERM BUDGETS:
Generally for one or two years.
Consumer goods industries like Sugar, cotton, textile etc
CURRENT BUDGETS:
Budgets is generally of months and weeks.
Current activities of the business.
CLASSIFICATION ACCORDING TO THE FUNCTIONS:
OPERATING BUDGETS:
Sales budget.
Production budget.
Production cost budget.
Purchase budget.
Raw material budget.
Labour budget.
Manufacturing expenses.
Administrative & selling expenses, budget.
PROGRAMME BUDGET:
Expected revenue &
Costs of various products or projects.
Budget can be prepared for each product line or project showing revenues.
PB useful in locating areas where efforts may be required to reduce costs & increase revenues.
FINANCIAL & MASTER BUDGET
FINANCIAL BUDGET
Cash Budget.
Working Capital Budget.
Capital Expenditure.
Income statement budget.
Balance Sheet
MASTER BUDGET:
Various functional budget are integrated into master budget.
ZERO BASED BUDGETING:
At the time of preparation of annual budget, a base is determined from which the budgeting process is started.
Interbational Organiation for standards ISO
The ISO 9000 series of standards is generic in scope. By design, the series can be tailored to fit any organizational needs, whether it is large or small, a manufacturer or a service organization. It can be applied to construction, engineering, health care, legal, and other professional services as well as the manufacturing of any thing front nuts and bolts to space craft.
It purpose is to unify quality terms and definitions used by industrialized nations and use those terms to demonstrate a supplier’s capability of controlling its processes.
ISO 9000:2000 – Quality management systems (QMS) – fundamentals and vocabulary discusses the fundamental concepts related to the QMS and provides the terminology used in the other two standards.
ISO 9001:2000 – Quality management systems (QMS) – requirements is the standard used for registration by demonstrating conformity of the QMS to customers, regulatory, and the organization’s own requirements.
ISO 9004:2000 - Quality Management Systems (QMS) – guidelines for performance improvement provides guideline that an organization can use to establish a QMS focused on improving performance.
It purpose is to unify quality terms and definitions used by industrialized nations and use those terms to demonstrate a supplier’s capability of controlling its processes.
ISO 9000:2000 – Quality management systems (QMS) – fundamentals and vocabulary discusses the fundamental concepts related to the QMS and provides the terminology used in the other two standards.
ISO 9001:2000 – Quality management systems (QMS) – requirements is the standard used for registration by demonstrating conformity of the QMS to customers, regulatory, and the organization’s own requirements.
ISO 9004:2000 - Quality Management Systems (QMS) – guidelines for performance improvement provides guideline that an organization can use to establish a QMS focused on improving performance.
Thursday, December 23, 2010
FMEA-2
1.Determining the effects that any failure will have on other items in the product or process and their functions.
2.Determining those parts of the product or the process whose failure will have critical effects on product or operation (those producing the greatest damage), and which failure modes will generate these damaging effects.
3.Calculating the probabilities of failure in assemblies, sub-assemblies, products, and processes from the individual failure probabilities of their components and the arrangements in which they have been designed. Since components have more than one failure mode, the probability that one will fail at all is the sum of the total probability of the failure modes.
4.Establishing test program requirements to determine failure mode and rate data not available from other sources.
5.Establishing test program requirements to verify empirical reliability predictions.
6.Providing input data for trade-off studies to establish the effectiveness of changes in a proposed product or process or to determine the probable effect of modifications to an existing product or process.
7.Determining how the high-failure-rate components of a product or process can be adapted for higher-reliability components, redundancies, or both.
8.Eliminating or minimizing the adverse effects that assembly failures could generate and indicating safeguards to be incorporated if the product or the process cannot be made fail-safe or brought within acceptable failure limits.
9.Helping uncover oversights, misjudgments, and errors that may have been made.
10.Helping reduce development time and cost of manufacturing processes by eliminating many potential modes prior to operation of the process and by specifying the appropriate tests to prove the designed product.
11.Proving training for new employees.
12.Tracking the progress of a project.
13.Communicating to other professionals who may have similar problems
FMEA--Failure Mode Effect Analysis
FMEA is a “before – the – event” action requiring a team effort to easily and inexpensively alleviate changes in design and production
Reliability may be defined as the probability of the product to perform as expected for a certain period of time, under the given operating conditions, and at a given set of product performance characteristics.
One important consideration when performing reliability studies is the safety of the product or the process. The criticality of a product or process changes drastically when human safety considerations are involved. Reliability test and studies can form the basis for safety studies.
It is the engineer’s task to define all of the previously –stated items, and in many instances, the engineer has only past experience and personal knowledge of like systems to define these different aspects of failure accurately.
Wednesday, December 22, 2010
40 unusual websites
1. BugMeNot – instantly get disposable login details for any popular website that forces you to register.
2. DailyLit – read your favorite books by email (on your PC, mobile, etc.).
3. FranceRadio – neat MP3 Search Engine that lets you Find, Play and Download favorite MP3s for FREE.
4. Google SMS – provides mobile users with a quick access (via SMS) to a wide range of practical information and tools (i.e. business listings (pizzerias, shops, etc.), weather, movie listings, driving directions, currency converter and lots more.
5. Podlinez – listen to your favorite podcasts from any phone. Just enter the RSS feed URL for the desired podcast and get a free-toll number to access it from a phone.
6. RetailMeNot – locate fresh discount coupons for thousands of web merchants and services right from your browser toolbar. Video demo.
7. SoLow – on a daily basis SoLow auctions 4 different items (iPhones, HD Screens, etc.). Anyone with a mobile/PC can participate in the auctions by placing their bids via text-messaging. The user with the lowest unique bid wins the auction.
8. TeleFlip – auto-forward your emails to your cellphone as text messages. Video demo.
9. UrbanDictionary – hilarious (and practical) 100% user-maintained dictionary where users provide and vote on definitions for urban words (slangs).
10. Yak4Ever – make free international calls from US, UK and Ireland to 50+ countries.
Mobile related
2. DailyLit – read your favorite books by email (on your PC, mobile, etc.).
3. FranceRadio – neat MP3 Search Engine that lets you Find, Play and Download favorite MP3s for FREE.
4. Google SMS – provides mobile users with a quick access (via SMS) to a wide range of practical information and tools (i.e. business listings (pizzerias, shops, etc.), weather, movie listings, driving directions, currency converter and lots more.
5. Podlinez – listen to your favorite podcasts from any phone. Just enter the RSS feed URL for the desired podcast and get a free-toll number to access it from a phone.
6. RetailMeNot – locate fresh discount coupons for thousands of web merchants and services right from your browser toolbar. Video demo.
7. SoLow – on a daily basis SoLow auctions 4 different items (iPhones, HD Screens, etc.). Anyone with a mobile/PC can participate in the auctions by placing their bids via text-messaging. The user with the lowest unique bid wins the auction.
8. TeleFlip – auto-forward your emails to your cellphone as text messages. Video demo.
9. UrbanDictionary – hilarious (and practical) 100% user-maintained dictionary where users provide and vote on definitions for urban words (slangs).
10. Yak4Ever – make free international calls from US, UK and Ireland to 50+ countries.
Mobile related
11. Bitbom – schedule free text message reminders to your phone. Schedule online or using mobile. (Similar PingMe.)
12. Flurry – follow up on your emails (send, receive) and receive latest articles from favorite blogs/websites on your mobile.
13. Foonz – place group calls and send messages to multiple people for free (from your mobile or any other phone).
14. GameJump – lots of free games for mobile phones.
15. GrandCentral – single phone number for all your phones and a web-based centralized voicemail system. (Similar: YouMail, GotVoice)
16. IQzone – post your classified ad to a number of online and print classified networks directly from your mobile.
17. Jott – simple and convenient service for leaving yourself notes and ToDo reminders using your mobile.
18. Mosio – text any question from your mobile phone and shortly receive up-to 4 answers.
19. mShopper – instantly check up on the bargain deals for any product (or even order) right from your mobile phone. Video demo.
20. NoPhoneTrees – simple phone directory that lists direct human access numbers to support employees in hundreds of companies.
21. Nutsie – takes a copy of your iTunes library file and creates an online copy of your library. Access this library from PC or mobile phone.
22. Google SendToPhone – forward anything you find on the web (maps, address, text, etc.) to any mobile phone for free (US only).
23. Qipit – take quick document pictures and turn them into properly formatted PDFs. Save online, email, or fax documents right from mobile.
24. Soonr – handy application that lets you access your PC remotely using your mobile or any other PC (work, school, etc.). Video demo.
25. TelePixie – quickly schedule and receive daily (or one time) wake up phone calls, reminders, weather forecast calls, jokes, and more.
26. TellMe – free local directory service for business listings (Car Repair Shops, Pizzerias, Restaurants, etc.), maps, and directions.
27. PhoneZoo – convert your MP3s to custom-length ringtones and forward them to your phone. Plus 1000s of free ringtones from other users.
Other s
28. BossBitching – fun and active community where people can bit*h about their bosses anonymously.
29. eSnailer – send free postal mail letters (to anywhere in the US) right from the desktop. From Canada? Check out EasyPost.
30. Yapta – get a refund (or credit) from the airlines on a purchased ticket in case its price drops.
31. ListenToaMovie – lets you ‘listen to a movie’, i.e. stream the audio part of various movies and some TV-shows.
32. OpenDNS – provides a safer, faster, smarter and more reliable way to navigate the Internet. More details + video demo.
33. PodioBooks – search, subscribe and browse through a variety of totally free audio books (100% legal).
34. PriceProtectr – tracks the price of items you bought online and notifies in case of price-drops, so you can request a refund.
35. RateMyDrawings – excellent place to draw, share your drawing creations, learn to draw, and watch other people drawing. Video demo
36. SwitchPlanet – cool and active marketplace where you can switch (or trade) used DVDs, CDs, Video Games and Books. Video demos.
37. Scribd- search, browse, rate, share various types of documents (jokes, facts, stories etc.). It’s like Youtube for text documents.
38. ViaTalk – make up-to 10 minutes long free phone calls to anywhere in the US and Canada. You don’t even need to sign-up.
39. VideoSift – popular Digg-like voting community for user-submitted videos.
40. Wordie – make lists of words (words you love, words you hate, or whatever) and share them with others.
Tuesday, December 21, 2010
Banking --Customer Royalty==Brand Royalty
Customer loyalty and brand image decline among retail banking customers for fourth consecutive year
Loyalty to banks wanes, particularly among customers of larger institutions. Study finds that customers may be highly satisfied even when they are charged bank fees, provided that they perceive they are receiving sufficient value in exchange.
-->Poor customer service-the most common reason given for switching banks-is cited by 37 % of customers who changed their primary bank in 2010.
For a fourth consecutive year, customer loyalty and perceptions of brand image among retail banking customers continue to decline, while satisfaction has leveled off, according to the U.S. Retail Banking Satisfaction Study.
In addition, the percentage of customers who say they "definitely will not" switch banks during the next twelvemonths has decreased significantly during the past three years to 34 per cent in 2010 .
The gap in loyalty intent between customers of larger and smaller banks is considerable, with 41 per cent of customers at smaller banks who say they "definitely will not" switch, compared with 32 per cent at larger banks.
Higher customer satisfaction with in-person service and attention is an important contributor to increased loyalty at smaller banks. Acquisition rates are also improving at smaller banks, with new customers accounting for eight per cent of the customer base, compared with an industry average of six per cent.
"As retail banking customers become considerably less loyal, banks need to focus on getting the fundamentals right," . "Banks that get back to the basics-such as maintaining a clean branch and greeting customers upon entering-may help to alleviate some of the distress customers are experiencing and increase their overall satisfaction."
"While fees have a significant impact on customer satisfaction, banks may mitigate this effect by giving customers choices," said Beird. "Customers tend to be considerably less dissatisfied when they have different overdraft options, such as the ability to transfer funds from a savings account or receive a balance alert. Proactive communication may also help to lessen the negative impact of fees, as satisfaction is more than 100 points higher among customers who are aware of changes in fees ahead of time, compared with customers who are taken by surprise."
The study also finds that customers may be highly satisfied even when they are charged bank fees, provided that they perceive they are receiving sufficient value in exchange. When satisfaction with fees is above average, customer's ratings for branch access and appearance, promptness of being served, and the bank's website navigation and range of services are also higher than average.
The study analyses customer satisfaction with the retail banking experience based on six factors: account activities; account information; facility; fees; problem resolution; and product offerings.
Loyalty to banks wanes, particularly among customers of larger institutions. Study finds that customers may be highly satisfied even when they are charged bank fees, provided that they perceive they are receiving sufficient value in exchange.
-->Poor customer service-the most common reason given for switching banks-is cited by 37 % of customers who changed their primary bank in 2010.
For a fourth consecutive year, customer loyalty and perceptions of brand image among retail banking customers continue to decline, while satisfaction has leveled off, according to the U.S. Retail Banking Satisfaction Study.
In addition, the percentage of customers who say they "definitely will not" switch banks during the next twelvemonths has decreased significantly during the past three years to 34 per cent in 2010 .
The gap in loyalty intent between customers of larger and smaller banks is considerable, with 41 per cent of customers at smaller banks who say they "definitely will not" switch, compared with 32 per cent at larger banks.
Higher customer satisfaction with in-person service and attention is an important contributor to increased loyalty at smaller banks. Acquisition rates are also improving at smaller banks, with new customers accounting for eight per cent of the customer base, compared with an industry average of six per cent.
"As retail banking customers become considerably less loyal, banks need to focus on getting the fundamentals right," . "Banks that get back to the basics-such as maintaining a clean branch and greeting customers upon entering-may help to alleviate some of the distress customers are experiencing and increase their overall satisfaction."
"While fees have a significant impact on customer satisfaction, banks may mitigate this effect by giving customers choices," said Beird. "Customers tend to be considerably less dissatisfied when they have different overdraft options, such as the ability to transfer funds from a savings account or receive a balance alert. Proactive communication may also help to lessen the negative impact of fees, as satisfaction is more than 100 points higher among customers who are aware of changes in fees ahead of time, compared with customers who are taken by surprise."
The study also finds that customers may be highly satisfied even when they are charged bank fees, provided that they perceive they are receiving sufficient value in exchange. When satisfaction with fees is above average, customer's ratings for branch access and appearance, promptness of being served, and the bank's website navigation and range of services are also higher than average.
The study analyses customer satisfaction with the retail banking experience based on six factors: account activities; account information; facility; fees; problem resolution; and product offerings.
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