What can we learn from Rosa Parks Essay Example | Topics and Well Written Essays - 250 words

What can we learn from Rosa Parks - Essay Example Additionally, there is need for the modern society to understand that the dark past of racism took a lot of effort and time to deal away with. People, therefore, should learn to advocate for equality in the society (Theoharis 46). Rosa Park conformed to the African American model of success through learning, which enlightened her, on what African Americans were going through. She then used this enlightenment to fight for the rights of black people. During this time, most of the African Americans who were fighting for equal rights for all Americans were scholars. Having been brought up in a poor family, Park joined other activists such as Martin Luther King and Rev. Ralph Abernathy to form the Montgomery Improvement Association. When Park was arrested, her fellow activists used this movement to advocate for equal rights to all people in America by planning the Montgomery Bus Boycott. She therefore transformed into the model through her education and activism (Theoharis

Diabetes Case Study Essay Example | Topics and Well Written Essays - 500 words

Diabetes Case Study - Essay Example The reduced wound healing time of the individual can be related to the production of granulocytes which require glucose as their source of energy and as glucose as is not entering the cells energy is not being provided to the cells for the uptake of amino acids. Because of this proteins cannot be synthesized in the cells. All these factors lead to reduced wound healing in the tissues. In polyuria the urinary output of a person is increased in diabetes, in polydipsia the person gets thirsty again and again and lastly polyphagia increases the appetite of the person (Lawal 2008 & Deshpande et al 2008). Diabetes mellitus is said to be working as a slow poison in the body and it can affect many processes in the body. It is noted that Diabetes Mellitus can further cause a huge damage to the different systems of the body. Neuropathy, nephropathy, retinopathy, cardiovascular stroke and peripheral vascular diseases are common diseases caused by the chronic processes of diabetes. In neuropathy the nerve cells of the body are damaged because of which the autonomic nervous system is affected usually. In retinopathy the macular retina of an individual is destroyed and this can lead to blindness. In nephropathy it can be seen that diabetes causes an alteration in the structure of the kidneys. And this may also lead to kidney failures in the long term if not treated properly. It is also seen that diabetes is related to the blood pressures as it is a major cause of hypertension nowadays. Because of hypertension the individuals also tend to develop ischemic heart diseases which further lead to hypoxia in the heart muscles and thus cardiac failure or cardiac stroke may occur. Peripheral Vascular Disease is another major disease caused by diabetes in the body. Diabetes can directly act on the blood vessels and narrow them. The most affected blood vessels by diabetes are the ones leading to the stomach, legs, arms and kidneys.

Using The Macro External Environment Analysis

Using The Macro External Environment Analysis Macro external environment here includes the factors such as issues related to politics, economical reforms and achievements, social behaviour, technological enhancements and inventions, environmental changes and environmental concerns and legislation and legislative changes. All these factors bear a significant effect on any industry and business. A business has take into consideration all such effects and then formulate its strategies and policies to work along with them and prosper. PESTEL analysis tool helps in determining the effect of all such factors on an industry and businesses. With the help of PESTEL analysis we will be seeing the affects of such factors on Indian Bakery and Dairy Industry. PESTEL analysis is a technique for identifying and listing the political, economic, social, technological, environmental and legal factors in the general environment most relevant to an organisation. (Boddy, D (2005). Management An Intoduction. 3rd ed. UK: Pearson Education. 88.) Type of Factors Effecting Factors Political Economical Social Technological Environmental Legal Exemption on Customs on Sugar Raw Material Import Shortage of Milk Need for Healthy Eating Habits Cloning of Livestock Change in the Climatic Conditions Raising the Norms for the Probiotic Food VAT on Biscuits Rise in Sugar Production and Duty Free Sugar Imports Problems with Cloned Livestock New Age Packaging Removal of Import Duty on Dairy Products Globalization Incentives to Build Cold Storage Facilities Requirement for Logistics Political Exemption on Customs Duty on Sugar Raw Material Import Due to the shortage in the production of sugar the deadline for the exemption on customs duty on raw sugar imports has been extended by the government to April 1, 2011 (Dey, A Jha, Dilip K (2010) Duty-free sugar imports extended till April 2011, Business Standard). Since sugar is a major input in the bakery, the price of sugar highly influences the price of inputs of the bakery industry. Exemption on customs duty will help in purchasing sugar at lower cost, which in turn will control the cost of production. VAT on Biscuits The VAT of 12.5% on Biscuits, being the only processed food item to attract such high VAT rates, will affect the pricing of the product (Bhushan, R (2009) Biscuit prices to rise by 10%, The Economic Times). Price of the biscuits might need to be increased due to the high VAT rates which may result in switch of brands due to the highly competitive market. Removal of Import Duty on Dairy Products The whole-sale price based inflation indicates that the milk prices have moved up by 14.73% over the last year. Worried about the rising prices government announced the removal of duty on Skimmed Milk Powder (SMP) and other dairy products (Govt removes import duty on dairy products (2010), Business Standard). The imports at cheaper rate would help in reduce the cost factor for dairy products. Incentives to Build Cold Storage Facilities Wastage of food items due to lack of cold storage facilities lead to a loss of Rs. 500 billion every year. The government announces schemes and incentives to attract investments in cold storage warehousing (Union Budget 2010: Cold-storage incentives to attract fresh funds (2010), The Economic Times). Increase in the number of cold storage facilities would help in preserving products better and reduce the wastage cost. Economical Shortage of Milk Even though the milk production has risen by 4.6% compound annual average growth rate, it still cannot match up with the increasing demand. The demand for milk has been growing at a faster rate than the growth rate of milk production resulting in the shortage of milk supply (Milk output would stagnate (2010) The Economic Times). India cannot meet its expected demand if the demand and supply rise at the same rate. For the same the reason, the milk prices are on a constant rise. Price of milk increased by 12.6% to 13.6% (Goyal, K (2010) Indias Food-Price Inflation Holds Near 11-Year High- Business Week). This can cause an increase in the input cost for the dairy products and which in turn can lead to hike in price or lower profit margins. If the company increases the price of its products, it may affect the sales as it might lose on consumers. Rise in Sugar Production and Duty Free Sugar Imports The total sugar production in the first six months ending September 2010 is expected to be 22% more than the output in the unchanged phase last season, the total production expected is at 16.7 million (Press Trust India (PTI) (2010) Sugar output rises 22% in first half of 2009-10, Business Standard). Due to the shortage in the production of sugar the deadline for the exemption on customs duty on raw sugar imports has been extended by the government to April 1, 2011 (Dey, A Jha, Dilip K (2010) Duty-free sugar imports extended till April 2011, Business Standard). The increase in sugar production and the duty exemption on raw sugar can help in purchasing sugar at lower prices and this in turn can help in producing goods at lower prices. Globalization Globalization a universal phenomenon is affecting each and every industry. The world is coming closer, the communication gap is closing and the businesses are going global. This can serve as an opportunity to expand the business to a global level but on the other hand there is a threat of new entrants from international market. Requirements for Logistics Logistics in India suffer due to the poor infrastructure and other limitations. There is a high demand for sophisticated third party logistics so the domestic logistics service providers are trying to improve their service. International participation is also expected in the logistics industry (Pandey, S Basu, A (2010) Logistics cos ramp up supply chain to meet rising demand, The Economic Times). Sophiscticated logistics system will help in proper supply chain management and on time delivery of goods, which help in maintaining the shelf life of goods on meeting the demand on time. Social Need for Healthy Eating Habits Studies say that Indians are more prone to Coronary Artery Disease (CAD), which is the major independent risk factor causing Cardiovascular diseases, due to the smaller calibred arteries found in Indians (Isalkar, U (2009) Indians more prone to heart disease, The Times of India). This suggests that Indians should move towards more healthy food and diet. This could be a new area to explore for Britannia with its new health associated products like Nuti-Choice biscuits and Actimind flavoured milk. Problems with Cloned Livestock Cloned animals are supposed to be suffering from large-offspring syndrome. The mother cows face a problem in giving birth to the cloned animals as they are larger than normal. Also these cloned animals suffer from health issues (Gogoi, P (2007) The case against cloning, BusinessWeek). It is morally wrong to clone animals as they cause problems to the mother during the birth and moreover the cloned livestock suffer from health issues which might make unsafe to consume the produce from them. Technological Cloning of Livestock India, a late entrant in cloning research, is now moving with a great pace in cloning technology. Hand guided cloning technique, a technique very different from the conservative cloning practice has been a successful venture (Mahalakshmi, BV Chowdhary, S (2009) Cloning Glory, The Financial Express). New Age Packaging The new packaging systems help in protecting food from micro-organisms by creating shelter layer. It uses new technologies like oxygen scavenging function, atmosphere control, biodegrability etc. and is low cost (Han, J Packaging Innovations, Bakers Journal). The packaging technology helps in preserving food for longer by protecting them from micro-organisms with the help of new technologies, thus resulting in longer shelf life of the food. The advantage of low cost packing and longer shelf life could be very beneficial for the company in increasing its profit margin. Environmental Change in the Climatic Conditions Climate plays an important role in the agriculture process. The change in the rainfall pattern has been a matter of concern now in India. The agriculture sector in areas which are monsoon dependent suffered badly due to the change in the rainfall pattern. The sector suffered a huge loss in terms of total output (Bhosale, J (2009) Farmers worried over climate disturbances, The Economic Times). The loss in crop will affect the input supply and this might delay or cause problems in the production. So the industry might not be able to meet the demands resulting in the loss of customers. Legal Raising the Norms for the Probiotic Food There is a need for setting the standards for probiotic food. Clinical tests should be conducted on the probiotic foods before they could reach the market for sale. The Indian Council of Medical and Research has submitted the proposal for the same to the government (Das, S (2009) Probiotic food likely to come under clinical trial ambit, The Financial Express). Strict norms will help in raising the quality standards but on the other hand the cost and time of production might subsequently increase. Micro External Environment Analysis Factors that influence the micro external environment are Competitor Rivalry, Threat of New Entrants, Threat of Substitutes, Buyers Power and Suppliers Power. These factors play a vital role in determining the current situation of the business and to plan strategies accordingly. With the help Porters Five Forces we will be analysing these factors and their immediate effect on the company. Five forces analysis is a technique for identifying and listing those aspects of the five forces most relevant to the profitability of an organisation at that time. (Boddy, D (2005). Management An Intoduction. 3rd ed. UK: Pearson Education. 83.) Competitor Rivalry: BIL has a market share of 38% and has been growing at 27%, compared to the industry growth rate of 20% (Saxena, R (2007) Battle-scarred Britannia on expansion spree, Business Standard) and has many competitors based on the nature of product. Parle and ITC (Sunfeast) pose a great competition to BIL (Biscuit Industry: India (2010), Market Research India). BIL earning major of its income from the biscuits (Britannia Annual Report 2007-08 (2008)), and Parle and ITC are the other major players in biscuit market. BIL is also into the production of dairy products, where the two major players in market are Amul and Nestle. Amul is the leader in the dairy industry. There is also a high level of competition from the unorganised baking sector. Overall rivalry is high. Threat of New Entrants: The entry on a small scale dairy industry and in the unorganised baking sector is easy. But on the other hand to enter the large scale dairy industry and organised baking sector a huge amount of investment is required in terms acquiring assets and to establish supply and distribution chains. Government regulations pertaining to food norms and others may also seem to be unattractive. Looking at the latest trends, the bakery industry is expected to earn huge revenues which might attract new entrants (Vijay, N (2008) Indian Bakery sector foresees high growth and increasing interest in product offering, FnBNews.com). So the threat of new entrants is moderate. Threat of Substitutes: Savoury snacks, crisps, cereals, fruits and other fast food can be substituted for biscuits. Dairy products are dubious to be replacing with other products as they key ingredients of majority of peoples diet. So the threat is a very moderate threat of substitutes. Buyers Power: The buyers of these products could be a retailer or the consumer. Both the dairy and bakery industry are price sensitive, so a little increase in price might lead the consumer to shift other brand or product. So the buyers power is calculated to be very strong. Suppliers Power: The major supplies for a bakery industry include wheat, sugar and other agriculture products. And the major supplies for dairy product is milk. Its difficult to bargain with the suppliers of the above mentioned inputs as the price of these inputs is majorly influenced by the production of these inputs. The prices tend to be high as the demand for these products is rising at much faster rate than supply. The secondary supplies include the packaging material. The secondary supplies can be easily substituted with the low-cost ones to save on cost. Overall the suppliers power is assessed to be moderate. Conclusion of Five Forces Analysis: There is an existence of major players in the market with a moderate level of threat of new entrants and substitutes. The suppliers power is moderate but the buyers power is measured to be strong. So the rivalry is suggested to be high. Stakeholders and Corporate Social Responsibilities (CSR) Freedman (1984) defines a stakeholder as any individual or group who can affect, or is affected by, the achievement of the organisations objectives. Further in addition to that, Clarkson (1995), stated that the government and the other communities that effect the working of the business and the market also form as a part of stakeholders. Stakeholders, except the employees, have a high power over the strategic change ideas (Hayes, J (2007). The Theory and Practice of Change Management. 2nd ed. UK: Palgrave Macmillan. 153). Internal Stakeholders The internal stakeholders are the ones associated with the company internally. For BIL its internal stakeholders would be: The Shareholders The Board of Directors, and The Employees Currently, nearly 51% of shares are held by Corporate Bodies and the rest 49% is held by the public (Statement showing shareholding pattern (2009), Britannia Industries Limited). The board consists of 11 members (Company Overview, Britannia Industries Limited) and employees nearly 2000 people (Britannia Industries Ltd. Overview, MarketLine). External Stakeholders The external stakeholders are the ones who are not immediately associated with company but influence the decision making of the company. To BIL the external stakeholders are as follows: Customers Suppliers Contractors Government Regulatory Agenices (like Food Safety and Standards Authority of India, etc.), and Society Britannia being the leader in the baker industry of India has a huge amount of customers to cater. Britannia has to keep up the tastes and quality preferences of its customers. The government plays an important in influencing the market by creating and changing the policies. BIL has to adhere to the rules and regulations formulated by the regulatory agencies. The suppliers and contractors form an important part of a business. Britannia completely relies on its suppliers and contractors for its raw materials. Corporate Social Responsibility (CSR) For years corporate entities followed the practice of providing goods and services and maximizing wealth. But the trends have changed over the period of years. The companies are now expected to be more socially responsible. The company now has to be responsible to the stakeholders, society and environment. They are expected to pay back to the environment and society for all the affects that are caused due to its operations (Idowu, S Filho, W (2009) Global Practices of Corporate Social Responsibility. Berlin: Springer. 1-2). BIL believes in working with the society and the culture. It gives a premier importance to the nation and its policies. It believes in being a good corporate citizen by not just adhering to the rules and regulations but also by helping the community to improve the quality of life. BIL involves itself in initiating and providing support to community health and family welfare, water management, vocational training, educating people and encouraging the application of modern techniques and technologies. BIL believes in ethical behaviour.

Greek Art :: essays research papers fc

Greek Art The portals to immortality-Greek Grave Steles To us who live in modern times the ‘melancholic look’ that we find in the sculpture of cemeteries throughout the world is something we take for granted. Although its authenticity has been lost to us, this so-called look can be traced back to 5th century Greek funerary sculpture. For us it is only natural to associate such a look with death. However, as the above verse elaborates, the Greeks viewed death somewhat differently from the way we do. To them death freed their souls and brought true happiness: then why does their grave sculpture look so pensive and thoughtful? It is because unlike today where the dead are only represented figuratively in a sobbing angel or mournful cherub, the Greeks depicted their dead as they were in life - life which was full of uncertainties and burdens but also with simple pleasures that made it all worth while. The Greeks successfully combined these two juxtaposed experiences, and harmonized it s contradictions to portray in steles the individual, whose simplicities and complications was a reflection of the bitter-sweetness of life. No where is this combination more successful than in the Greek grave stele of the 5th century before Christ. The 5th B.C. encompassed two distinct periods: the early classical and the high classical. However both these periods shared the uniquely contradicting, constantly explorative, and modestly idealistic vision of life, which made the subjects of the stele, at their moment of death, all the more human to the observer. Neither the previous Archaic period, nor the following 4th century, or the preceding civilizations quite so convincingly capture for the observer the poignancy of death the way a fifth century BC stele could. The period of the 5th century B.C. is sometimes referrd to as the golden age, which is the height for Greek art and civilizations; and ironically has its beginning and ending in war! â€Å"The 480 B.C. marked the defeat of the Persians and 404 B.C. the beginning of the pelopannasian war and the collapse of Athenian democracy. † Perhaps the culturally significant buildings and sculptures that were destroyed and the many lives that were lost during the long war with Persia might made grave monuments and stele all the more personal to the Greeks during this time. For whatever reason Greek stele of this particular period, between two historically significant moments (480-404), stand-alone in more ways than one.

Comparison of ‘flight’ and ‘your shoes’ Essay

â€Å"Flight† by Doris Lessing & â€Å"Your shoes† by Michele Roberts deals with conditions of growing up, relationship between generations and most importantly issues of daughter leaving home and how leaving house can affect the whole family. The story â€Å"Flight† revolves around the grandfather who doesn’t want his only granddaughter, Alice to get married with love of her life, Steven as deep down he is afraid she will leave him and he might have to suffer from loneliness. In â€Å"Your Shoes†, a depressed mother imagines a pair of shoes to be her missing daughter who ran away from home after an argument with her father and is describing the memories she had with her daughter. Both the stories shares similar theme over daughter leaving home and growing up. The grandfather in the beginning ignores the reality of children leaving away and he thinks selfishly discarding others happiness. This is because he had only seen his other granddaughters leaving home and they are not always there to stay by his side. Therefore, he is severely affected by the decision of his granddaughter to get married. This is most clearly shown when he says. â€Å"She’s the last one, he mourned. Can’t we keep her a bit longer?†. Similarly, In â€Å"Your Shoes† the mother thinks she knows what is best for her fifteen years old teenager daughter who is getting involved in drugs and sex. She never considered her daughter’s feeling when she was present. In â€Å"Flight† there is a relationship among the grandfather, granddaughter and her boyfriend. He appears to be jealous of Steven knowing that he is going to lose his granddaughter to him as Alice is preparing to marry him. He also feels rejected when his granddaughter goes out him despite he being against it. By the end of the story we gradually see how he begins to accept the reality after seeing the maturity shown by Alice and Steven by gifting him a bird. It is then he realizes that she is no longer a little girl and she is growing up. Similarly, In â€Å"Your Shoes† there is a relationship between mother and daughter. The mother realizes she never really understood her daughter until she’s gone. â€Å"Now I realize how you kept yourself away from me, didn’t know you at all.† This quote explains she was constantly rejected by her daughter because she was being overprotective all the time and never tried to understand her daughter feelings. The theme of jealousy is shown from the comparison she makes of her daughter with her mother. She didn’t get on well with her mother and now it is the same with her daughter. Like the grandfather, she doesn’t accept the reality of daughter leaving home. For example she shuts her daughter’s shoes in wardrobe and always keeps an eye on them. But at the end of the story, she feels a failure as a mother and thinks that her daughter will return which appears to be hope. Languages used in both the stories are very descriptive of bodies and atmosphere to make it easier to understand. For example, â€Å"Above the old man’s head was the dovecote, a tall wire-netted shelf on stilts, full of strutting, preening birds†. This sentence from â€Å"Flight† (line 1) gives good description of the dovecote as well as natural behavior of birds which we are clearly able to visualize what is happening in the scenario. â€Å"Your shoes† is narrated in monologue from first person point of view . Contrastingly â€Å"Flight† is narrated from third person point of view which is why it has dialogues included. The way story is told also makes differences in how recognize the characters. The narrator of â€Å"Your Shoes† is telling her sides of the story .We don’t know whether she is telling the truth or not and have no idea how the other character feels so she could be considered as an unreliable narrator. Both the stories have got their own good narrating style to allow the reader to connect with the character. In â€Å"Flight† pigeon are used as imagery as it has the ability to fly away and leave .The use of this imagery suggest concept of children leaving home and getting married at their certain phase of life. In â€Å"Your shoes†, Shoes symbolizes missing daughter and the way she treats the shoes also describe her as she’s mentally disturbed and has become paranoid. â€Å"Hold you like my mother never rocked me.† This quote implies she is holding it like a baby imagining she is holding her daughter and is trying to show her love she didn’t get from her own mother. Both the stories enlighten a message that growing up as we see it is not simple as it seems. It is more than that. It is as complicated as this world seems to be. Like In â€Å"Your shoes†, daughter running from home affected her mother but we can’t blame the daughter as it is her parents who have failed to understand her and take her in right track. And in Flight grandfather realises his mistake and repent it by accepting his granddaughter’s new relationship. This is a result of children showing more responsible side. Both the stories give us idea that as we grow up we start to develop relationship, go through happiness and sorrows and decisions that sometimes might affect our loved ones and bring profound changes in lives.

Control cycles-a general model Essay

A general model of organizational control includes four components that can operate in a continuous cycle and can be represented as a wheel. These elements are: 1. Setting a goal. Project goal setting goes beyond overall scope development to include setting the project baseline plan. The project baseline is predicated on an accurate. Work Breakdown Structure (WBS) process. Remember that WBS establishes all the deliverables and work packages associated with the project, assigns the personnel responsible for them, and creates a visual chart of the project from highest level down through the basic task and subtask levels. The project baseline is created as each task is laid out on a network diagram and resources and time durations are assigned to it. 2. Measuring progress. Effective control systems require accurate project measurement mechanisms. Project managers must have a system in place that will allow them to measure the ongoing status of various project activities in real time. We need a measurement system that can provide information as quickly as possible. What to measure also needs to be clearly defined. Any number of devices allow us to measure one aspect of the project or another; however, the larger question is whether or not we are getting the type of information we can really use. 3. Comparing actual with planned performance. When we have some sense of the original baseline (plan) and a method for accurately measuring progress, the next step is to compare the two pieces of information. A gap analysis can be used as a basis for testing the project’s status. Gap analysis refers to any measurement process that first determines the goals and then the degree to which the actual performance lives up to those goals. The smaller the gaps between planned and actual performance, the better the outcome. In cases whe re we see obvious differences between what was planned an what was realized, we have a clear-cut warning signal. 4. Taking action. Once we detect significant deviations from the project plan, it becomes necessary to engage in some form of corrective action to minimize or remove the deviation. The process of taking corrective action is generally straightforward. Corrective action can either be relatively minor or may involve significant remedial steps. At its most extreme, corrective action may even involve scuttling a nonperforming project. After corrective action, the monitoring and control cycle begins again. The control cycle is continuous. As we create a plan, we begin measurement efforts to chart progress and compare stages against the baseline plan. Any indications of significant deviations from the plan should immediately trigger an appropriate response, leading to a reconfiguration of the plan, reassessment of progress, and so on. Project monitoring is continuous, full-time cycle of target setting, measuring, correcting, improving, and remeasuring. MONITORING PROJECT PERFORMANCE As we discovered in the chapters on project budgeting and resource management, once we have established a project baseline budget, one of the most important methods for indicating the ongoing status of the project is to evaluate it against the original budget projections. For project monitoring and control, both individual task budgets and the cumulative project budget are relevant. The cumulative budget can be broken down by time over the project’s projected duration. The Project S-Curve: A Basic Tool As a basis for evaluating project control techniques, let us consider a simple example. Assume a project (Project Sierra) with four work packages (Design, Engineering, Installation, and Testing), a budget to complete of $80,000, and an anticipated duration of 45 weeks. To determine project performance and status, a straightforward time/cost analysis is often our first choice. Here the project’s status is evaluated as a function of the accumulated costs and labor hours or quantities plotted against time for both budgeted and actual amounts. We can see that time (shown on the x, or horizontal, axis) is compared with money expended (shown on the y, or vertical, axis). The classic project S-curve represents the typical form of such a relationship. Budget expenditures are initially low and ramp up rapidly during the major project execution stage, before starting to level off again as the project gets nearer to its completion. Cumulative budget projections for Project Sierra have been plotted against the project’s schedule. The S-curve figure represents the project budget baseline against which budget expenditures are evaluated. Monitoring the status of a project using S-curves becomes a simple tracking problem. At the conclusion of each given time period (week, month, or quarter), we simply total the cumulative project budget expenditures to date and compare them with the anticipated spending patterns. Any significant deviations between actual and planned budget spent reveal a potential problem area. Simplicity is the key benefit of S-curve analysis. Because the projected project baseline is established in advance, the only additional data shown are the actual project budget expenditures. The S-curve also provides real-time tracking information in that budget expenditures can be constantly updated and the new values plotted on the graph. Project information can be visualized immediately and updated continuously, so S-curves offer an easy-to-read evaluation of the project’s status in a timely manner. (The information is not necessarily easily interpreted, however, as we shall see later.) Our Project Sierra example can also be used to illustrate how S-curve analysis is employed. Suppose that by week 21 in the project, the original budget projected expenditures of $50,000. However, our actual project expenditures totaled only $40,000. In effect, there is a $10,000 budget shortfall, or negative variance between the cumulative budgeted cost of the project and its cumulative actual cost. In the table it shows the track of budgeted expenditures with actual project costs, including identifying the negative variance shown at week 21. In this illustration, we see the value of S-curve analysis as a good visual method for linking project costs (both budgeted and actual) over the project’s schedule. S-CURVE DRAWBACKS When project teams consider using S-curves, they need to take the curve’s significant drawbacks into consideration as well as their strengths. S-curves can identify positive and negative variance (budget expenditures above or below projections), but they do not allow us to make reasonable interpretations as to the cause of variance. Consider the S-curve shown. The actual budget expenditures have been plotted to suggest that the project team has not spent the total planned budget money to date (there is negative   variance). However, the question is how to interpret this finding. The link between accumulated project costs and time is not always easily resolved. Is the project team behind schedule (given that they have not spent sufficient budget to date) or might there be alternative reasons for the negative variance? Assume that your organization tracks project costs employing an S-curve approach and uses that information to assess the status of an ongoing project. Also assume that the project is to be completed in 12 months and has a budget of $150,000. At the six-month checkup, you discover that the project S-curve shows significant shortfall; you have spent far less on the project to date than was originally budgeted. Is this good or bad news? On the surface, we might suppose that this is a sign of poor performance; we are lagging far behind in bringing the project along and the smaller the amount we have spent to date is evidence that our project is behind schedule. On the other hand, there are any number of reasons why this circumstance actually might be positive. For example, suppose that in running the project, you found a cost-effective method for doing some component of the work or came across a new technology that significantly cut down on expenses. In that case, the time/cost metric may not only be misused, but might lead to dramatically inaccurate conclusions. Likewise, positive variance is not always a sign of project progress. In fact, a team may have a serious problem with overexpenditures that could be interpreted as strong progress on the project when in reality it signals nothing more than their inefficient use of project capital resources. The bottom line is this: Simply evaluating a project’s status according to its performance on time versus budget expenditures may easily lead us into making inaccurate assumptions about project performance. Milestone Analysis Another method for monitoring project progress is milestone analysis. A milestone is an event or stage of the project that represents a significant accomplishment on the road to the project’s completion. Completion of a deliverable (a combination of multiple project tasks), an important activity on the project’s critical path, or even a calendar date can all be milestones. In effect, milestones are road markers that we observe on our travels along the project’s life cycle. There are several benefits to using milestones as a form of project control. 1. Milestones signal the completion of important project steps. A project’s milestones are an important indicator of the current status of the project under development. They give the project team a common language to use in discussing the ongoing status of the project. 2. Milestones can motivate the project team. In large projects lasting several years, motivation can flag as team members begin to have difficul ty seeing how the project is proceeding overall, what their specific contribution has been and continues to be, and how much longer the project is likely to take. Focusing attention on milestones helps team members become more aware of the project’s successes as well as its status, and they can begin to develop greater task identity regarding their work on the project. 3. Milestones offer points at which to reevaluate client needs and any potential change requests. A common problem with many types of projects is the nature of repetitive and constant change requests from clients. Using project review milestones as formal â€Å"stop points,† both the project team and the clients are clear on when they will take midcourse reviews of the project and how change requests will be handled. When clients are aware of these formal project review points, they are better able to present reasonable and well-considered feedback (and specification change requests) to the team. 4. Milestones help coordinate schedules with vendors and suppliers. Creating delivery dates that do not delay project activities is a common challenge in scheduling delivery of key project components. From a resource perspective, the project team needs to receive supplies before they are needed but not so far in advance that space limitations, holding and inventory costs, and in some cases spoilage are problems. Hence, to balance delays of late shipments against the costs associated with holding early deliveries, a well-considered system of milestones creates a scheduling and coordinating mechanism that identifies the key dates when supplies will be needed. 5. Milestones identify key project review gates. For many complex projects, a series of midterm project reviews are mandatory. For example, many proj ects that are developed for the U.S. government require periodic evaluation as a precondition to the project firm receiving some percentage of the contract award. Milestones allow for appropriate points for these review. Sometimes the logic behind when to hold such reviews is based on nothing more than the passage of time (â€Å"It is time for July 1 review†). For other projects, the review gates are determined based on completion of a series of key project steps (such as the evaluation of software results from the beta sites). 6. Milestones signal other team members when their participation is expected to begin. Many times projects require contributions from personnel who are not part of the project team. For example, a quality assurance individual may be needed to conduct systems tests or quality inspection and evaluations of work done to date. The quality supervisor needs to know when to assign a person to our project, or we may find when we reach that milestone that no on e’s available to help us. Because the QA person is not part of the project team, we need to coordinate his or her involvement in order to minimize disruption to the project schedule. 7. Milestones can delineate the various deliverables developed in the work breakdown structure and therefore enable the project team to develop a better overall view of the project. You then are able to refocus efforts and function-specific resources toward the deliverables that show signs of trouble, rather than simply allocating resources in a general manner. For example, indications that the initial project software programming milestone has been missed allows the project manager to specifically request additional programmers downstream, in order to make up time later in the project’s development. Problems with Milestones Milestones, in one form or another, are probably the simplest and most widely used of all project control devices. Their benefits lie in their clarity; it is usually easy for all project team members to relate to the idea of milestones as a project performance metric. The problem with them is that they are a reactive control system. You must first engage in project activities and then evaluate them relative to your goal. If you significantly underperform your work to that point, you are faced with having to correct what has already transpired. Imagine, for example, that a project team misses a milestone by a large margin. Not having received any progress reports up until the point that the bad news becomes public, the project manager is probably not in a position to craft an immediate remedy for the shortfall. Now, the problems compound. Due to delays in receiving the bad news, remedial steps are themselves delayed, pushing the project farther behind. EARNED VALUE MANAGEMENT An increasingly popular method used in project monitoring and control consists of a mechanism that has become known as Earned Value Management (EVM). The origins of EVM date to the late 1960s when U.S. government contracting agencies began to question the ability of contractors to accurately track their costs across the like of various projects. As a result, after 1967, the Department of Defense imposed 35 Cost/Schedule Control Systems Criteria that suggested, in effect, that any future projects procured by the U.S. government in which the risk of cost growth was to be retained by the government must satisfy these 35 criteria. In the more than 30 years since its origin, EVM has been practiced in multiple settings, by agencies from governments as diverse as Australia, Canada, and Sweden, as well as a host of project-based firms in numerous industries. Unlike previous project tracking approaches, EVM recognize that it is necessary to jointly consider the impact of time, cost, and project performance on any analysis of current project status. Put another way: Any monitoring system that only compares actual against budgeted cost numbers ignores the fact that the client is spending that money to accomplish something-create a project. Therefore, EVM reintroduces and stresses the importance of analyzing the time element in project status updates. Time is important because it becomes the basis for determining how much work should be accomplished at certain milestone points. EVM also allows the project team to make future projections of project status based on its current state. At any point in the project’s development we are able to calculate both schedule and budget efficiency factors (the efficiency with which budget is being used relative to the value that is being created) and use those values to make future projections about the estimated cost and schedule to project completion. We can illustrate the advance in the project control process that Earned Value represents by comparing it to the other project tracking mechanisms. If we consider the key metrics of project performance as those success criteria discussed in Chapter 1 (scheduling, budget, and performance), most project evaluation approaches tend to isolate some subset of the overall success measure. For example, project S-curve analysis directly links budget expenditures with the project schedule. Again, the obvious disadvantage to this approach is that it ignores the project performance linkage. Project control charts such as tracking Gantt charts link project performance with schedule but may give budget expenditures short shrift. The essence of a tracking approach to project status us to emphasize project performance over time. While the argument could be made that budget is implicitly assumed to be spent in some preconceived fashion, this metric does not directly apply a link between the use of time and performance factors with project cost. Earned value, on the other hand, directly links all three primary project success metrics (cost, schedule, and performance). This methodology is extremely valuable because it allows for regular updating of a time-phased budget to determine schedule and cost variances, as identified by the regular measurement of project performance. Terminology for Earned Value Following are some key concepts that allow us to calculate Earned Value and use its figures to make future project performance projections. PVPlanned value. A cost estimate of the budgeted resources scheduled across the project’s life cycle (cumulative baseline). EVEarned value. This is the real budgeted cost, or â€Å"value,† of the work that has actually been performed to date. ACActual cost of work performed. The cumulative total costs incurred in accomplishing the various project work packages. SPISchedule Performance Index. The earned value to date divided by the planned value of work scheduled to be performed (EV/PV). This value allows us to calculate the projected schedule of the project to completion. CPICost Performance Index. The earned value divided by the actual, cumulative cost of the work performed to date (EV/AC). This value allows us to calculate the projected budget to completion. BACBudgeted cost at completion. This represents the total budget for a project. Creating Project Baselines The first step in developing an accurate control process is to create the project baselines against which progress can be measured. Baseline information is critical regardless of the control process we employ, but baselines are elemental when performing EVM. The first piece of information necessary for performing earned value is the planned value; that is, the project baseline. The PV should comprise all relevant project costs, the most important of which are personnel costs, equipment and materials, and project overhead, sometimes referred to as level of effort. Overhead costs (level of effort) can include a variety of fixed costs that must be included in the project budget, including administrative or technical support, computer work, and other staff expertise use (such as legal advice or marketing). The actual steps in establishing the project baseline are fairly straightforward and require two pieces of data: the Work Breakdown Structure and a time-phased project budget. 1. The W ork Breakdown Structure identified the individual work packages and tasks necessary to accomplish the project. As such, the WBS allowed us to first identify the individual tasks that would need to be performed. It also gave us some understanding of the hierarchy of tasks needed to set up work packages and identify personnel needs (human resources) in order to match the task requirements to the correct individuals capable of performing them. 2. The time-phased budget takes the WBS one step further: It allows us to identify the correct sequencing of tasks, but more importantly, it enables the project team to determine the points in the project when budget money is likely to be spent in pursuit of those tasks. Say, for example, that our project team determines that one project activity, Data Entry, will require a budget of $20,000 to be completed, and further, that the task is estimated to require 2 months to completion, with the majority of the work being done in the first month. A ti me-phased budget for this activity might resemble the following: Activity| Jan| Feb| †¦| Dec| Total| Data Entry| $14,000| $6,000| | -0-| $20,000| Once we have collected the WBS and applied a time-phased budget breakdown, we can create the project baseline. The result is an important component of earned value because it represents the standard against which we are going to compare all project performance, cost, and schedule data as we attempt to assess the viability of an ongoing project. This baseline, then, represents our best understanding of how the project should progress. How the project is actually doing, however, is, of course, another matter. Why Use Earned Value? Assume that it is now week 30 of the project and we are attempting to assess the project’s status. Also assume that there is no difference between the projected project costs and actual expenditures; that is, the project budget is being spent within the correct time frame. However, upon examination, suppose we were to discover that Installation was only half-completed and Project Testing had not yet begun. This example illustrates both a problem with S-curve analysis and the strength of EVM. Project status assessment is only relevant when some measure of performance is considered in addition to budget and elapsed schedule. Consider the revised data for Project Sierra. Note that as of week 30, work packages related to Design and Engineering have been totally completed, whereas the Installation is only 50% done, and Testing has not yet begun. These percentage values are given based on the project team or key individual’s assessment of the current status of work package completion. The question now is: What is the earned value of the project work done to date? As of week 30, what is the status of this project in terms of budget, schedule, and performance? Calculating the earned value for these work packages is a relatively straightforward process. We can modify the previous table to focus exclusively on the relevant information for determining earned value. The planned budget for each work package is multiplied by the percentage completed in order to determine the earned value to date for the work packages, as well as for the overall project. In this case, the earned value at the 30-week point is $51,000. We can compare the planned budget against the actual earned value using the original project budget baseline. This process allows us to assess a more realistic determination of the status of the project when the earned value is plotted against the budget baseline. Compare this figure with the alternative method, in which negative variance is calculated, with no supporting explanation as to the cause or any indication about whether this figure is meaningful or not. Recall that by the end of week 30, our original budget projections suggested that $68,000 should have been spent. Instead, we are projecting a shortfall of $17,000. In other words, we are not only showing a negative variance in terms of money spent on the project, but also in terms of value created (performance) of the project to date. Unlike the standard S-curve evaluation, EVM variance is meaningful because it is based not simply on budget spent, but value earned. A negative variance of $10,000 in budget expenditures may or may not signal cause for concern; however, a $17,000 shortfall in value earned on the project to date represents a variance of serious consequences. Steps in Earned Value Management There are five steps in Earned Value Management (EVM): 1. Clearly define each activity or task that will be performed on the project, including its resource needs as well as a detailed budget.As we demonstrated earlier, the Work Breakdown Structure allows project teams to identify all necessary project tasks. It further allows for each task to be assigned its own project resources, including equipment and materials costs, as well as personnel assignments. Finally, coupled with the task breakdown and resource assignments, it is possible to create the budget figure or cost estimate for each project task. 2. Create the activity and resource usage schedules. These will identify the proportion of the total budget allocated to each task across a project calendar. Determine how much of an activity’s budget is to be spent each month (or other appropriate time period) across the project’s projected development cycle. Coupled with the development of a project budget should be its direct linkage to the project schedule. The determination of how much budget money is to be allocated to project tasks is important. Equally important is the understanding of when the resources are to be employed across the project’s development cycle. 3. Develop a â€Å"time-phased† budget that shows expenditures across the projects life.The total (cumulative) amount of the budget becomes the project baseline and is referred to as the planned value (PV). In real terms, PV just means that we can identify the cumulative budget expenditures planned at any stage in the project’s life. The PV, as a cumulative value, is derived from addin g the planned budget expenditures for each preceding time period. 4. Total the actual costs of doing each task to arrive at the actual cost of work performed (AC).We can also compute the budgeted values for the tasks on which work is being performed. This is referred to as the earned value (EV) and is the origin of the term for this control process. 5. Calculate both a project’s budget variance and schedule variance while it is still in process.Once we have collected the three key pieces of data (PV, EV, and AC), it is possible to make these calculations. The schedule variance is calculated by the simple equation: SV = EV – PV, or the difference between the earned value to date minus the planned value of the work scheduled to be performed to date. The budget, or cost, variance is calculated as: CV = EV – AC, or the earned value minus the actual cost of work performed. USING EARNED VALUE TO MANAGE A PORTFOLIO OF PROJECTS Earned Value Management can work at the portfolio level as well as with individual projects. The process simply involves the aggregation of all earned value measures across the firm’s entire project portfolio in order to give an indication as to the efficiency with which a company is managing its projects. Other useful information contained in the Portfolio Earned Value Management table includes the total positive variances for both budget and schedule, as well as determination of the relative schedule and cost variances as a percentage of the total project portfolio. The use of Earned Value Management for portfolio tracking and control offers top management an excellent window into the firm’s ability to efficiently run projects, allows for comparisons across all projects currently in development, and isolates both the positive and negative variances as they occur. All of this is useful information for top-level management of multiple projects.