Break-even analysis Essay

INTRODUCTION Every company’s corporate managers have a goal of maximizing shareholder wealth. However, given that no obvious, single course of action leads to fulfillment of that goal, managers must choose speciï ¬ c course of action and develop plans and controls to pursue that course. Because planning is future oriented, uncertainty exists and information helps reduce that uncertainty. Controlling is making actual performance align with plans, and information is necessary in that process. Much of the information managers’ use to plan and control reï ¬â€šects relationships among product cost, selling prices, and sales volumes. Changing one of these essential components in the sales mix will cause changes in other components. Focuses on analyzing how volume, cost, proï ¬ t helps in predicting future conditions (planning) as well as in explaining, evaluating, and acting on results (controlling). Before generating proï ¬ t a company must ï ¬ rst reach its break-even point, which means that it must generate suï ¬Æ'cient sales revenue to cover all cost? .By linking cost behavior and sales volume, managers can use the break even analysis. Information provided by these BEP analyses helps managers focus on the implications that volume changes would have an impact on organizational proï ¬ tability analysis. My objective is to analyze the term BEP analysis in a boarder sense with different costs concepts and other related matters which are needed to calculate BEP, providing the broad overview about BEP analysis and its implication in different aspect, which will ultimately help us to take different manageme nt decisions. METHODOLOGY I have collected the information for this term paper about BEP analysis by library work from different books, journals, articles, internet browsing, papers of professional’s degrees and different BEP practice of different company with online logging into their sites. ABSTRUCT Breakeven point analysis sometimes called cost volume-profit analysis, stresses the relationships between the factors affecting profits. Traditional break-even analysis is a relatively common managerial tool used in a wide variety of purposes for nearly all types of decision-making. Break-even analysis (sometimes called profit contribution analysis) is an important tool, which allows comparative studies between costs, revenues, and profits (Pappas and Brigham, 1981). This analytical technique facilitates the evaluation of potential prices, the impact of price changes and fixed/variable costs on profitability (Powers, 1987). This analysis can also be used to expedite decisions on investment return criteria, required market shares, and distribution alternatives (Kotler, 1984). Break-even is the sales volume at which revenue and total cost are equal, resulting in no net income or loss. It is typical to graphically depict break-even as the point where a firm’s total cost and total revenue curves intersect. This is the sales point where both variable and fixed costs are covered by the sales volume for the relevant range. If the break-even point is not achieved, that business will (or should) eventually go out of business. The breakeven point the profit is zero that is; the contribution margin is equal to the fixed costs. If the actual volume of sales is higher than the break-even volume there will be profit. FINDINGS BREAK-EVEN ANALYSIS Definition Details Break-even analysis An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even analysis calculates what is known as a margin of safety, the amount that revenues exceed the break-even point. This is the amount that revenues can fall while still staying above the break-even point. Investopedia explains ‘Break-Even Analysis’ Break-even analysis is a supply-side analysis; that is, it only analyzes the costs of the sales. It does not analyze how demand may be affected at different price levels. Moore & jaedicke The break-even point of the company or a unit of a company is the level of sales income which will equal the sum of its fixed costs and its variable costs. These costs are also referred to as â€Å"out of pocket costs† and â€Å"period costs†. (Source: ACCA, paper F, CVP analysis, page #47) ASSUMPTION OF BEP ANALYSIS The break-even analysis is based on the following assumptions: 1. Costs segregation: It is based on the assumption that all costs can be segregated into fixed costs and variable costs. 2. Constant Selling Price: The selling price remains constant. That is, selling price does not change with volume or other factors. 3. Constant Fixed costs: Fixed costs are constant, at all levels of activity. They do not change, with change in sales. 4. Constant Variable costs: Variable cost per unit is constant. So, variable costs fluctuate, directly, in proportion to changes in volume of output. In other words, they change in direct proportion to sales volume. 5. Synchronized production and sales: It is assumed production and sales are synchronized. That is, inventories remain the same in the opening stock and closing stock. 6. Constant sales mix: Only one product is manufactured. In case, more than one product is manufactured, sales mix of products sold does not change. 7. No Change in operating efficiency: There is no change in operating efficiency. 8. No other factors: The volume of output or production is the only factor that influences the cost. No other factors have any influence on break-even analysis. BREAK-EVEN ANALYSIS COMPONENTS To fully appreciate the break-even theory and related graphical depictions, it is necessary to have a basic understanding related to cost, revenue and profit. In order to facilitate this, one must first know the following components of break- even: Total cost Contribution margin Total revenue Semi variable costs Fixed costs and variable costs Relative range Margin of safety Net profit Selling Price per Unit: The amount of money charged to the customer for each unit of a product or service Total cost: is the sum of fixed cost and variable costs. Total revenue: is that amount of gross income received from product sales or a service rendered, and is equal to the price of a unit times the number of units sold. Forecasted Net Profit: Total revenue minus total cost. Enter Zero (0) if you wish to find out the number of units that must be sold in order to produce a profit of zero (but will recover all associated costs). Fixed costs: These are costs that are the same regardless of how many items you sell. All start-up costs, such as rent, insurance and computers, are considered fixed costs since you have to make these outlays before you sell your first item. Examples of fixed costs: – Rent and rates – Depreciation – Research and development – Marketing costs (non- revenue related) – Administration costs Variable costs: These are recurring costs that you absorb with each unit you sell. For example, if you were operating a greeting card store where you had to buy greeting cards from a stationary company for $1 each, then that dollar represents a variable cost. As your business and sales grow, you can begin appropriating labor and other items as variable costs if it makes sense for your industry. Direct variable costs are those which can be directly attributable to the production of a particular product or service and allocated to a particular cost centre. Raw materials and the wages those working on the production line are good examples. Indirect variable costs cannot be directly attributable to production but they do vary with output. These include depreciation (where it is calculated related to output – e.g. machine hours), maintenance and certain labor costs. Semi variable costs: often stay constant for a certain time period during production increases, then â€Å"step up† to a higher cost level at specific points of increased volume. An example of this is an insurance premium, which covers production to a certain level, which if exceeded, is changed to a new fixed level. To simplify the analysis process, semi variable costs are generally calculated and split into appropriate fixed and variable costs. Margin of Safety: The margin of safety is the units sold or the revenue earned above the break-even volume. For example, if the break-even volume for a company is 200 units and the company is currently selling 500 units, then the margin of safety is 300 units (500-200). The margin of safety can be expressed in sales revenue as well. If the break-even volume is $200,000 and current revenues are $350,000, then the margin of safety is $150,000 ($350,000-$200,000). In addition, margin of safety sales revenue can be expressed as a percentage of total sales dollars, which some Managers refer to as the margin of safety ratio. Contribution margin: is that amount which contributes to the fixed costs of the company and to its profits, after deducting the variable costs. Total variable costs are subtracted from total revenue to yield the contribution margin. The contribution margin can be expressed in total dollars, in dollars per unit, or as a percentage. Relative range: is the limit of production or output levels over which fixed costs remain constant. Above the relative range cost evaluations and respective relationships are no longer applicable. For instance, if a construction firm’s work doubled or tripled, the company would have to hire more people, rent more office space, and acquire more equipment thus increasing fixed costs and altering the entire break-even cost and revenue structure. PROCESS OF BEP ANALYSIS There are 3 steps of BEP analysis; these are started after each and every steps is finished. The sequence of the BEP analysis is: 1. Conduct a cost/income analysis of the construction firm to determine: 1. Fixed costs 2. Variable costs 3. Total costs 4. Total revenue 2. Calculate contribution margin and perform break-even analysis (Moore & Jaedicke). Variations of break-even: 3. Preparing different graphs charts statements. Cost volume chart Profit volume chart METHODS OF BEP ANALYSIS Break-even point can be determined by 4 ways with the break-even analysis. These methods are given bellow: 1. Break-even schedule. 2. Break-even charts 3. Algebraic formula 4. Income statement methods 5. Linear program. A detail overview has been given about the different methods of the break-even analysis. Break-even schedule: we can determine the break-even point with break-even schedule. The procedure of preparing break-even schedule is given follow: (with imaginary figure) Production We can observe the schedule that, when the production and sales is 4000 units then there is no profit and loss. So in break-even point the sale is 4000 units or 40000 taka. Break-even charts: The break-even point can be presented graphically. The pictorial presentation gives a better view of the relationship of cost, volume and profit. Graphical presentation gives immediate and clear understanding of the picture. This type of presentation always impresses the management as it gives instantaneous understanding of the situation The graphical chart of break-even analysis looks like this: Break-even chart Following are the steps involved in preparing break-even chart: 1. Sales volume is plotted on the horizontal line i.e. X-axis. Sales volume may be expressed in terms of units, taka or as a percentage of capacity. 2. Vertical line i.e. Y-axis is used to represent revenue, fixed costs and variable costs. 3. Both horizontal and vertical lines are spaced, equally, with the same distance. 4. Break-even point is the point of intersection between total cost line and sales line. 5. Sales revenue at the break-even point can be determined by drawing a perpendicular line to X-axis from the point of above intersection. 6. Total sales line and Total cost line intersect forming an angle known as ‘Angle of Incidence’. Break-even with profit volume chart: Profit-volume graph visually portrays the relationship between profits operating income and units sold. Proï ¬ t -volume (PV) graph provides a depiction of the amount of proï ¬ t or loss associated with each sales level horizontal, or x, axis on the PV graph represents sales volume; the vertical, or y, axis represents dollars of proï ¬ t or loss. Amounts shown above the x-axis are positive and represent proï ¬ t; amounts shown below the x-axis are negative and represent losses. Two points can be located on the graph: total ï ¬ xed cost and break-even point. Total ï ¬ xed cost is shown on the y-axis below the sales volume line as a negative amount. If no products were sold, the ï ¬ xed cost would still be incurred and a loss of that amount would result. Location of the BEP in units may be determined algebraically and is shown at the point where the proï ¬ t line intersects the x-axis; at that point, there is no proï ¬ t or loss. Amount of proï ¬ t or loss for any sales volume can be read from the y-axis. Slope of the proï ¬ t (diagonal) line is determined by the unit contribution margin and the points on the line represent the contribution margin earned at each volume level. Line shows that no proï ¬ t is earned until total contribution margin covers total ï ¬ xed cost. The profit-volume chart is simply the conventional break-even chart re-arranged to show changes in profit or loss which occur through volume changes either of sales or output. It is less detailed since it does not show separate curves for costs and revenues, but its virtue lies in the fact that it reduces any changes down to two key elements-volume and profit. For this reason, the volume-profit chart is useful for illustrating the results of different management decisions BEP Analysis with Algebraic Formula: Single product BEP equations: Breakeven Point = Fixed Costs / (Unit Selling Price – Variable Costs) Breakeven Sales Point = Fixed Costs / (1 – (Variable Costs – Unit Selling Price)) Breakeven Point= BEP (sales value in taka)/ sales in units Breakeven Point( in taka)= (Total fixed cost/CM per units)* Unit sales Break-even Sales (in taka) = Price per Unit Ãâ€" Break-even Sales Units The formula to calculate the breakeven point in units is: = Fixed expenses + operating income Unit contribution margin The formula to calculate the breakeven point in dollars is: = Fixed expenses + Operating income Contribution margin ratio Or = Target Profit Point in Units= Multiple product BEP analysis: Breakeven Point in Units: = BEP Analysis with income statement method: Breakeven can be computed by using either the income statement approach or the contribution margin formula approach. With the income statement equation approach, breakeven sales in units is calculated as follows: = (unit sale price x units sold) – (variable unit cost x units sold) – fixed expenses = operating income (solve for units sold to get breakeven unit sales). At the breakeven point, a sale minus variable expenses equals fixed expenses (there is no operating income at breakeven). So we can show the statement for BEP analysis with imaginary figures: Income statement (for BEP) Descriptions Taka Sales (at $16 per Unit) Less Variable Costs (at $12 per Unit) Contribution Margin Less Fixed Costs 3,840,000 2,880,000 960,000 960,000 Operating Profit 0,000 The observing figure indicating that contribution margin is 960,000 is equal to the fixed cost 960,000. So it has fulfilled the condition of break-even point at 24,000 units of sales. Break-even point analysis with linear programming method (multiple products): With the use of linear programming, break-even analysis proves to be much more useful. In fact, linear programming stretches the CVP relationships inherent in BP analysis into a fairly realistic quantitative approach to the incremental cost and revenue concept of microeconomics. There is no doubt that more businessmen and accountants will begin to consider the possibility of using LP to express CVP relationships and to drive the optimum combination of costs, volumes, profits. One need not worry about the size of the equations or the numbers of equations since computers are readily available to use the â€Å"simplex method† of solving linear equations. Furthermore, there is the possibility that the number of factors and equations could be loss in some situations. The process of BEP analysis in LP is following: Objective function: maximization or minimization. Production constraints determination. Sales constraints identification. Non negativity constraints. The objective function represents the fact that we are seeking the combination of products which when multiplied by their respective profit contributions will maximize the total profit contribution and thus profits. The constraints represent the facts there are limits on the available combination of products. A sales constraint indicates the upper limits of possible sales and production constraints indicate upper limits of production possibilities. Linear programming method is applied to the study of a real case in a small enterprise. The characteristics of this method are to make it necessary to use integer linear programming. Cash break-even point analysis: Many a time, it is difficult for the industrial units to become break-even in the initial years. From that environment, the concept of cash-breakeven point has emerged. The Cash break-even point may be defined as that point of sales volume, where cash revenues are equal to cash costs. In other words, if we eliminate non-cash items from revenues and costs, the break- even analysis on cash basis can be computed. Depreciation is, generally, a fixed cost. However, when plant and machinery is used for additional shifts, the additional depreciation is a variable cost. Reason for treating the additional depreciation as variable cost is the firm can avoid additional shift, at any time, and in such circumstances this cost would not be incurred. To calculate cash- breakeven point, depreciation is to be removed from fixed costs. Additional depreciation, component, treated as variable cost, is also to be excluded from variable costs. Similarly, deferred expenses are to be excluded from the fixed cost. Thus, cash-breakeven point may be calculated as below: Cash Fixed Cost Cash break-even Point (in terms of units) = Cash Contribution per unit BREAK-EVEN ANALYSIS FOR PARTS OF THE FIRM One can use break-even analysis for parts of the firm by recognizing the fact that many firms are multiproduct, multiplant, and multiterritory operations. In recognizing these complexities of modem-day business activities, the problems of cost allocation are quickly brought to the fore. Substantial amounts of factory overhead, distribution costs, and administrative costs are not traceable to individual products, product lines, manufacturing plants, and even sales territories. These no traceable costs are normally fixed costs such as factory administrative costs and general administrative costs. In order to illustrate the consequences of nonallocation of common fixed costs, the following types of companies will be considered: One product—one plant Two products—one plant One product—two plants Two products—two plants One product—one plant—two territories Two products—one plant—two territories Two products—two plants—two territories. One Product-One Plant Company In a company such as this, all costs are traceable to the product and to the plant. Thus there is no problem of allocation. With the facts given le1ow, the contribution per unit and break-even point can be calculated as shown: (with imaginary figure) Fixed costs †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦$265,000 Variable costs †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦$4.00 per unit Sales price †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ $8 .50 per unit Contribution per unit = $8.50 – 4.00 = $4.50 Break-even point = = 58,888 units. Two Product-One Plant Company In a two product-one plant situation, some costs will not be traceable to products. These are the common fixed costs. The fixed costs which are traceable to each product can be described as direct fixed costs. With the data given, break-even calculations can be made as shown below. Break-even Data Descriptions Product A Product B Direct fixed costs†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Variable costs†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Sales prices†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Common fixed costs†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Break-even point Product A Product B Contribution per unit†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Break-even to cover direct fixed costs†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Two Product-Two Plant Company In a more complex situation with two products and two plants, there arise three layers of common fixed costs. These layers represent the costs common to products A and B in plant I and in plant 11 and the costs common to the entire operation of all products and all plants. Below are shown break-even data and break-even calculations to illustrate the two product—two plant situation. Break-even Data Descriptions Plant I Plant II Product A Product B Product A Product B Direct fixed costs†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Variable costs per unit†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Sales prices per unit†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Fixed costs common to products. †¦ Fixed costs common to total operations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Break-even Calculations Descriptions Plant I Plant II Product A Product B Product A Product B Contribution per unit†¦Ã¢â‚¬ ¦. Break-even to cover direct fixed cost†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. One product one Plant—Two Territory Company When sales territories are considered in a break-even situation, there aulses the possibility of fixed costs common to the sales territories as well as the possibility of dealing with variable costs segregated by sales and production. Descriptions Eastern territory Western territory Plant Direct fixed costs†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Variable costs per unit s†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Sales prices per unit†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Common fixed costs†¦ Common to both territories†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Common to all operations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Break-even Calculations Descriptions Eastern territory Western territory Contribution per unit (sales price minus all variable costs)†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Break-even to cover direct fixed costs of each Territory†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Two Product-One Plant—Two Territory Company The two product-one plant—two territory situations are very similar to the preceding illustration. Actually, the only differences are the extra layers of common fixed costs. Descriptions Eastern territory Western territory Plant Product A Product B Product A Product B Product A Product B Direct fixed costs†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Variable costs per unit†¦. Sales prices per unit. Common fixed costs: Common to Products†¦. Common to territory†¦.. Common to all operations†¦ APPLICATIONS OF BEP ANALYSIS IN SERVICE INDUSTRIES While many of the examples used have assumed that the producer was a manufacturer (i.e., labor and materials), break-even analysis may be even more important for service industries. The reason for this lies in the basic difference in goods and services: services cannot be placed in inventory for later sale. What is a variable cost in manufacturing may necessarily be a fixed cost in services. For example, in the restaurant industry, unknown demand requires that cooks and table-service personnel be on duty, even when customers are few. In retail sales, clerical and cash register workers must be scheduled. If a barber shop is open, at least one barber must be present. Emergency rooms require round-the-clock staffing. The absence of sufficient service personnel frustrates the customer, who may balk at this visit to the service firm and may find competitors that fulfill the customer’s needs. The wages for this basic level of personnel must be counted as fixed costs, as they are necessary for the potential production of services, despite the actual demand. However, the wages for on-call workers might be better classified as variable costs, as these wages will vary with units of production. Services, therefore, may be burdened with an extremely large ratio of fixed-to-variable costs. Service industries, without the luxury of inventor able products, have developed a number of ways to provide flexibility in fixed costs. Professionals require appointments, and restaurants take reservations; when the customer flow pattern can be predetermined, excess personnel can be scheduled only when needed, reducing fixed costs. Airlines may shift low-demand flight legs to smaller aircraft, using less fuel and fewer attendants. Hotel and telecommunication managers advertise lower rates on weekends to smooth demand through slow business periods and avoid times when the high-fixed-cost equip ment is underutilized. Retailers and banks track customer flow patterns by day and by hour to enhance their short-term scheduling efficiencies. Whatever method is used, the goal of these service industries is the same as that in manufacturing: reduce fixed costs to lower the break-even point. Break-even analysis is a simple tool that defines the minimum quantity of sales that will cover both variable and fixed costs. Such analysis gives managers a quantity to compare to the forecast of demand. If the break-even point lies above anticipated demand, implying a loss on the product, the manager can use this information to make a variety of decisions. The product may be discontinued or, by contrast, may receive additional advertising and/or be re-priced to enhance demand. One of the most effective uses of break-even analysis lies in the recognition of the relevant fixed and variable costs. The more flexible the equipment and personnel, the lower the fixed costs, and the lower the break-even point. (Source: www.assignmentpoint.com) CVP ANALYSIS VS BEP ANALYSIS CVP analysis is the boarder sense but BEP is the part of the whole system of CVP analysis. CVP analysis is differ from BEP analysis since former takes into account the amount of profit earned by a concern at present level of output and sales. But there is also those who feel that BEP analysis is just another name of CVP analysis. There are others who feel that BEP analysis is appropriate up to the point at which costs become equal to revenue and beyond this point, it is the study of CVP relationship. CVP is not static but BEP is fundamentally a static analysis the graph and charts are used can be changed with management decisions. The purpose of CVP analysis is to examine the effect of change in costs, volume, and price on profits. This is a comprehensive study. Break-even analysis is a part of CVP analysis. CHANGES IN BEP There are 5 common reasons of changing in BEP analysis. These are given bellow: 1. If there is any change in variable cost P/V ratio and BEP also changed. 2. If there is change in sales price of the product then the BEP also changes. 3. If sales mixed is changed than the P/V ratio & BEP changes. 4. If fixed costs changes the P/V ratio is not change but BEP ratio changes. 5. If the variable costs and fixed costs change at a time and in the same direction than the BEP also changes quickly. (Source: Marginal costing- CVP analysis by Prof. Mukbul Hossen) USES OF BEP ANALYSIS Break even analysis enables a business organization to: Measure profit and loss at different levels of production and sales. T o predict the effect of changes in price of sales. To analysis the relationship between fixed cost and variable cost. To predict the effect on profitability if changes in cost and efficiency. The break even analysis has different application in the business. In planning stage, the analysis is used in sales projection to determine how many units will have to be sold for the company to cover the cost associated with the production. Sales above breakeven point will results into profits. The analysis can be used by financiers to access the viability of business by accessing the units required to be sold before turning the venture into profitable business. Breakeven point can also be used by investors to determine the selling price of an investment at price which will not result into loss due to the sale of investments. LIMITATIONS OF BREAK-EVEN ANALYSIS Despite many advantages, break-even analysis and charts suffer from the following limitations: 1. Number of Assumptions: Break-even analysis is based on several assumptions and they may not hold well, under all circumstances. Fixed costs are presumed to be constant, irrespective of the level of output. It does not happen. When the production increases, above the installed capacity, fixed costs change as new plant and machinery has to be installed for increased production. Variable costs do not vary in direct proportion to the change in volume of output, due to the laws of diminishing returns. Selling price that is supposed to be constant also changes due to increased competition. 2. Application in Short Run: Break-even analysis is a short run analysis. In long run, the cost analysis may not hold good as the assumptions may vary and situation may be, totally, different. 3. Applicable in Single Product line: This analysis is applicable for a single product only. If break-even point for each product is to be calculated, fixed costs have to be allocated to different products, which is a practical problem in the real life. Otherwise, BEP for the overall firm only is possible to calculate. 4. No Remedial Action: It does not suggest any remedy or action to the management for solving the problem. 5. Other Factors Ignored: Other important factors such as amount of investment, problems of marketing and policies of Government influence the problem. Break-even analysis does not consider them. This analysis focuses only on cost volume profit relationship. 6. Limited Information: Break-even charts provide limited information. If we want to study the effects of changes in fixed costs, variable costs and selling prices on profitability, a number of charts have to be drawn. It becomes rather more complicated and difficult to understand. 7. Static View: More often, a break-even chart presents a static view of the problem under consideration. CONCLUSION This term paper is introduced on basics of economic break-even analysis. There are two primary beneficial uses for break-even analysis. These include techniques in company evaluation of desired profit levels and cost reduction impact analysis. Also, the decision making process can be enhanced by using break-even analysis in combination with other analytical tools such as Break-even Default Ratios, graphical, linear programming, income statement method (a sensitivity analysis on the limit of decreasing unit prices) and Degree of Operating Leverage (analysis on how a change in volume affects profits) for both single and multiple products. Inclusion of these tools to the BEP analysis’ in companies for business position and profitability analysis assist in enhancing the critical thinking process. It also provides these future managers of manufacturing and service with another tool to produce safe and sound managerial decisions, a typical requirement of graduate level students entering the workforce needed in the critical analysis of the connection between theoretical knowledge and with practice. Though the BEP analysis has the different limitation but it is widely using in managerial decision making. REFRANCES i. â€Å"Marginal costing –cost volume and profit analysis† Cost and Management Accounting, by Prof. Mukbul Hossen. ii. â€Å"Cost volume and profit relationships† Management Accounting by Moore & Jaedicke. iii. â€Å"Break-even analysis† Management Accounting by L. Wayne. Keller. iv. Cost accounting principles& practice by S.P. Iyanger. v. Management Accounting by Garrison. Noreen, Brewer. vi. Practical Business Application of Break Even Analysis in Graduate Construction Education by Charles W. Berryman, PhD. Journal of Construction Education Spring 1999, Vol. 4, No. 1, pp. 26-37. vii. â€Å"Experience managerial decision† by Boyne Resorts. viii. â€Å"Break-even analysis† by Jon Wittwer. ix. â€Å"Break-Even Analysis and Forecasting† by Professor Hussein Arsham. x. â€Å"Break-Even Point and Cost-Volume-Profit Analysis† chapter 9, page# 381 xi. Accounting for manager, costing for decision making , chapter 18, page #429 xii. â€Å" How to Do a Breakeven Analysis† â€Å"Breakeven analysis helps determine when your business revenues equal your costs† by Daniel Richards xiii. â€Å"Importance of Break Even Analysis† by Kaveh M, Thursday, January 05, 2012 xiv. Break-even analysis | Business plan template. www.Google.com xv. ACCA, Paper F. Cost and profit volume analysis. Page# 47. xvi. Student accountant issues 14/2010. ACCA .paper F5.

A Comparison of Two Poems by Black Poets Essay

Countee Cullen and Langston Hughes are two of the most recognized African American poets of the Harlem Renaissance. Countee Cullen’s â€Å"Yet Do I Marvel† and Langston Hughes’ â€Å"I, Too† are comparable poems in that their similar themes are representational of the authors’ personal tribulations of racial inequality. By comparing these two poems, we get a glimpse of the reality of the injustices of racism during the 1920’s by two prominent Black poets. Cullen and Hughes were born within a year of each other, and consequently wrote these poems in the same year (1925). This is significant because it reflects the time in which racial inequality was prominent. Both poets were struggling with their emotions of being African American minorities in a society of White superiority. Their poems reflect the injustice of racism, which is especially revealed in Langston Hughes’ poem â€Å"I, Too†. Most poems are filled with symbolism and abstract ideas, and â€Å"I, Too† is an example of such. This poem does not rhyme, nor meter patter truly be measured. In order to understand and grasp the meaning behind this poem, it needs to be read a few times. Sometimes certain aspects of a poem can be overlooked. For example, in the first line of the poem, â€Å"I, too, sing America† (line 1), Hughes cleverly uses an allusion as he is referring to Walt Whitman’s, â€Å"Song of Myself†, which entails similar themes. In Hughes’ poem, the speaker is addressing the country as a whole. Hughes’ use of excellent language and vivid imagery effectively expresses the speaker’s feelings towards racism. This poem explores the injustices of racism through the eyes of a black servant working for a white family. He tells us that he is sent to the kitchen when company comes. Every time he is sent away, instead of demonstrating anger, he laughs. This demonstrates that the speaker is a strong character with self poise. Hughes’ uses metaphor when he says â€Å"tomorrow† (line 8). He is indicating that the word â€Å"tomorrow† implies the future. He has faith that in the course of time, everyone will become equal, â€Å"Tomorrow, /I’ll be at the table /When company comes. /Nobody’ll dare/Say to me, /†Eat in the kitchen,†/Then.† (lines 8-14). The speaker then explains that America will be ashamed of having discriminated against him and other  African Americans. The point that Hughes is trying to make clear is that African Americans are Americans too, thus they should not be discriminated against for the color of their skin. The themes represented in Hughes’ poems are similar to those exemplified in Countee Cullen’s poem, â€Å"Yet Do I Marvel†. However, a major difference between the poems lies in the format. Cullen’s poem is a sonnet, with a rhyming scheme of ABAB BCBC DD EE FF GG (every other line rhymes, with the exception of the last two which rhyme consecutively). The natural flow of this poem helps us (the reader) become more engaged in Cullen’s anguish filled portrayal of racial injustices. Like Hughes’ poem, Cullen’s poem is also about the battle of racial identity, yet in addition, he uses religion and mythology to further express the speaker’s struggle with racial injustices. Although the theme of racial inequality is common in both poems, Cullen’s poem focuses more on the speaker’s continual reference to religion and the justification of Gods will. Unlike the hope that the speaker explicated in Hughes’ poem, the speaker in Cullen’s poem starts out having faith in God, â€Å"I doubt not God is good, well-meaning, kind,† (line 1). However, he later contradicts his faith in God due to the hardships of discrimination that African Americans endured in the last lines of the poem, â€Å"Yet do I marvel at this curious thing: /To make a poet black, and bid him sing!† (lines 13-14). We see the speaker’s lack of faith in God throughout the poem, which emphasizes his frustration and affliction with having to endure the everyday struggles of being discriminated against for being black. He uses mythology to further depreciate God’s actions by disagreeing with His punishments, â€Å"†¦declare/ If merely brute caprice dooms Sisyphus/ To Struggle up a never-ending stair.† (lines 6-8). The narrator is essentially symbolizing that God’s punishments are unfair cruelty, not only towards figures from Greek mythology, but towards him as well. The speaker considers God’s actions to be unreasonable, and we see this in his bitter words, â€Å"Inscrutable His ways are, and immune/ To catechism by a mind too strewn† (lines 9-10). The comparison of Cullen’s â€Å"Yet do I Marvel† and Hughes’ â€Å"I, Too† lies strongly in the last two lines of Cullen’s poem. He finally tells us, straightforward, where his animosity lies. In the last two lines, he vehemently tells us that he finds it unfair that because he is a black poet, his voice will not be heard; he will be ignored and pushed aside, just like the speaker in Hughes’ poem. However, the two poems also contrast with each other in that Cullen’s poem concludes with the speaker reiterating his unequivocal feelings of inferiority and lack of faith. Hughes’ poem closes in a more positive manner wherein the speaker asserts his faith and pride in declaring his right to be treated equal. Even with all of the contrasting aspects of these two poems, they do share a principle theme of racial inequality. Additionally, in these two poems Hughes and Cullen were addressing the mass society. They wanted to voice their concerns with racial discrimination. With Hughes’ use of vivid imagery and Cullen’s use of symbolism, they collectively utilized the art of poetry to effectively illustrate and express personal hardships of African Americans.

Enuma Elish vs. Genesis Essay

As a whole, the creation myth of Enuma Elish is quite different from the other myths in the Primal Myths book. The story of Genesis is an exception however, where there are more similarities than differences. The creation stories of Genesis and Enuma Elish have a similar framework, but do vary in several ways. This essay aims to compare and contract these two creation myths while looking for common themes and possible cultural connections. Enuma Elish contains several gods who played a distinct role in the creation, most importantly Apsu and Tiamat. After Apsu and Tiamat, the other gods are created, and reside in the body of Tiamat. Enuma Elish is a story of how the gods interact and go through a dramatic power struggle. The world is created as a result of the gods’ actions and decisions. In a similar way, but with notable differences, Genesis consists of just one god who simplistically creates the world, with no drama or power struggles. In Genesis, â€Å"God† decides to make the world, and in seven â€Å"days† (sometimes known as long periods of time) creates all that we know of, with great emphasis on man. Enuma Elish also places great importance onto man, and for a similar reason. The Enuma Elish story ends with the creation of man to do the physical work instead of the gods, a prime example being the construction of Babylon. Genesis does not describe the purpose of man in an indentured sense but instead says that it is for man to â€Å"be fruitful and multiply†¦have dominion†¦over every living thing†¦Ã¢â‚¬  (Sproul, 124). â€Å"God† also rested on the seventh day, the day after he created man. Most similar are the physical creations in both myths. Both are kindled through the medium of â€Å"divine speech†, or the language of the gods. Each day and each generation are linked together if closely examined. In Enuma Elish, we have the six generations of Tiamat and Apsu, Lahamu, Kishar, Anu, Ea, and Marduk, respectively. In the story of Genesis, we have the six main days of creation, and both stories have the time of rest (or seventh day). In the initial st ate of the creation stories, we have a time when earth was void, or as some prefer to call it, chaos. Simply, a lack of order enclosed by darkness, as shown by â€Å"When there was no heaven,/no earth, no height, no depth, no name,/when Apsu was alone† (92) and â€Å"The earth was without form and void, and darkness was upon the face of the deep†¦Ã¢â‚¬  (123). The first two developments in both stories included light, followed by the creation of the  firmament, â€Å"the lines of sky and earth/stretched where horizons meet to separate/cloud from silt† (92). In the third development, dry land was fabricated, then the skies were developed â€Å"He projected positions†¦in the sky, he gave them a starry aspect as constellations†¦Ã¢â‚¬  (102), and in the sixth development, men and women were created. As a finishing touch, Genesis reads â€Å"†¦God rested from all his work which he had done in creation.† (125) and in Enuma Elish, â€Å"When all the gods sat down together there was wine and feasting and laughter†¦Ã¢â‚¬  (106). If one studies the background behind The Bible, one would know that the Babylonians held the Jewish people in exile. One might conclude that the story of Genesis might be a derivative of the Babylonian story Enuma Elish via cultural influences. In addition, Enuma Elish is dated to be older than the story of Genesis, leaving this theory as a sound possibility. In a Christian dominated world, many would deny the fact that the story of Genesis is unoriginal, because of the possibility that accepting a story as unoriginal would make it inferior; thus leading many skeptics to further question the validity of Judaist teachings. In conclusion, Enuma Elish and Genesis have a distinctly akin nature, with the possibility of mutual cultural influences. Through deep auditing, the two creation myths are found to be comparable in many respects. Each goes through equivalent developments, but not without important differences. From here, we leave it to future archeological discoveries to uncover the truth of these stories and their origins.

Impact of Other Industries on Power Tools Industry Essay

Impact of Other Industries on Power Tools Industry - Essay Example Hand Tools are tools that are powered manually (U.S. Department of Labor, 2002). These tools are powered solely by the person using it and do not use motors (Wikipedia, 2007). These include hammers, screw drivers, hand drills, saws and knives etc., that require manual power to operate. The Hand Tools industry can be a threat for power tools. Though outdated and used less frequently, yet they can be the tools of choice by some consumers due to their lesser costs and supposedly longer lives. Hand Tools offer some benefits as compared to power tools, these don't rust easily, there is no expenditure required for purchasing batteries etc., electricity is not required to operate these and there are no essential scheduled maintenance requirements. Hence, hand tools can provide a cost competitive alternative for some people, mainly the Do-It-Yourself (DIY) type of customers. The forecasting for the hand tools industry depends upon the value the user derives from the use of these tools. The estimations can be obtained using customer surveys that show preferences of customers who are using hand tools. The surveys can provide valuable information about the features that power tools manufacturers should try to incorporate in their design if possible. In addition, some estimates can be developed by analyzing the revenues and sales data of various companies providing hand tools and then comparing this data with the power tools sales information to identify the extent of competition hand tools providers are posing for power tools industry. Bench Mounted Tools Bench Mounted tools are those that are not portable; these are fixed (mounted) at a place. Usually, these are required in small industries where tools like Thickness Planer, Saw Table etc. (Mitre 10, 2007) are used by a group of workers at the same time. These are mainly used where a number of people are involved in doing a single task like an assembly line where all workers follow similar procedures. In these kinds of situations, using portable tools is cost ineffective; instead the bench-mounted tools are used for efficiency and effectiveness gains. These are also used in metal working environments. The Bench Mounted tools industry provides competitions to the portable electric power tools industry because a large number of industries have now installed fixed tools instead of providing portable tools to all its workers. The forecasts can be derived by analyzing the historical industrial data for new technology deployment and from sales figure of these tools. Air Driven (Pneumatic) Tools Pneumatic tools are powered by compressed air and include chippers, drills, hammers and sanders (U.S. Department of Labor, 2002). These tools are usually used in the mechanical and automotive industries which require high power tools. They may pose a competition to the portable electric tools market where the electric tools face the threat of substitution. The relevant forecasts and statistics can be obtained by analyzing the market size and segmentation. Liquid Fuel and Hydraulic Power Tools These tools are operated by generating power from liquid fuel like gasoline or water. These are used in environments where there is a need of extremely high power to operate the tool. The industry data can be obtained for estimating the market size and usage level and then an estimate can be made regarding

Open innovation is a phenomenon in search of a theory. (Birkinshaw) Essay

Open innovation is a phenomenon in search of a theory. (Birkinshaw). Critically evaluate this statement, examining current aca - Essay Example Can open innovation be introduced at McDonalds at the fry cook level, or is it only feasible among people with Ph. Ds? Does every individual personality work with open innovation, or are some personality types more effective under closed system? Might open and closed be points on a continuum that should be shifted for different circumstances? Might there be hybrid approaches, such as beginning a project using open innovation and finishing it using closed? How can open innovation be balanced against the needs of management? Does open innovation reduce or increase transparency? Many of these questions have been answered only summarily, some not at all, and some might be in principle beyond the present ability to answer. Yet theory guides research just as research guides theory: Creating a theory of open innovation, however tentative and likely to change, could help to create hypotheses that could be tested, models that could be explored, and predictions that could be proven or disprove n. This paper advances a theory of open innovation that claims that open innovation is in fact a more specific case of a general balance between the costs and benefits of command and control, and that open innovation is from an organizational behavior and institutional theory perspective a shift to bottom-up practices; as such, it depends crucially on loyalty to the institution, involvement in decision-making, corporate culture, management avoiding chilling effects, and other factors. I identify open innovation as a solution to the intellectual property version of the tragedy of the commons problem and as the internal flipside of the open source movement. Open innovation will be defined for the purposes of this paper as â€Å"a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology† (Chesbrough, 2003). Open innovation involves firms creating institut ional practices to reap the benefits of internal innovation, such as with â€Å"innovation time† initiatives, and external innovation. Open innovation is in essence the model of most universities. Within the university system, a researcher's data is owned by the university and/or by the companies or stakeholders that funded or initiated the study, yet they also retain some copyright and control. The information is made publicly accessible, either subsidized to be free or for a nominal fee, so that research can be facilitated. Researchers have tremendous latitude to experiment and investigate down their own lines of inquiry. Open innovation, then, alongside the parallel but distinct concept of open source, is an attempt to replicate the intellectual output of the university and of similar institutions that allow information to be more freely created and disseminated. Albert (2008) points out how antithetical this is to many traditional notions of corporate capitalism: The assu mption made is that companies both reap 100% of the benefit of communal intellectual property yet retain 100% in-house, which are contradictory assumptions. In practice, firms are faced with a difficult dilemma. Both internally and externally, they must control access to their information to remain competitive and prevent competitors from harming them, yet doing so reduces the net amount of innovation. Innovation depends on cross-referencing. Knowledge doesn't occur in a vacuum: If someone looks at a problem and can't be sure what

Commerce law in the land of Middle Kingdom Research Paper

Commerce law in the land of Middle Kingdom - Research Paper Example In order to successfully conduct business in China, the IBs must traverse a, at times, thorny path of ethical and social culture challenges. Elements that influence Differences in Social Culture Values, and ethics drive what shape the social culture of given country will be in. Culture is a collection of widely accepted values, ethics, and beliefs held by the group. For example, Chinese culture is very heavily influenced by Confucius beliefs and values of collectivism, group over individualism. Chinese culture takes a very hierarchical structure of social life, cultivation of morality and self-restraint, and the emphasis on hard work and achievement (Fogel, 2010).  With each country, place or group, these elements change which results in a variation or difference in social culture. However as time goes by, whether through external factors or driven by necessities of survival, these values, beliefs and ethics will evolve which will result in a change within the social culture. Busin ess and economic implications of differences in culture and values How business and economics function is different in every place. Differences in culture and values are one of the primary reasons behind this simple fact. What is considered acceptable in one country is not acceptable in another (most stated example, bribes). Economic policies are driven by culture and values while business conduct is governed by cultural norms and common practices found within the group. At times the difference in culture and values can become a barrier to conducting business. International business and trade is similar to dancing a very carefully choreographed dance except that one dance is interpreted different in each country. A failure to adhere to the steps in that dance in a given country could be the difference between a disastrous business venture and a successful entry into an international market. Culture and values drive the principals and influence the manner in which business is conduct ed and economics are established. Social culture’s influence on work place values Social culture will define what is considered acceptable and appropriate at a work place. It will shape the policy at work and define the roll of given individuals and importance of their place amongst the ranks, as well as guidelines for conducting business. Given the hierarchical nature of Chinese culture, the rank of an individual employee plays a very important role within the organization (Fogel, 2010).  Social culture and aspects of social life norms will also influence how business is conducted on the domestic and international stage. The principal of Guanxi – concept of drawing on connections – is an important aspect of Chinese culture. It’s based on the principal of creating a personal network on the basis of favors, associations (belonging to the same trade association or group) and other social connections (same city of origin, close association through years of working together). At times companies have been unable to conduct business with some form of guanxi. Luo (2007, p 7) talks about how cosmetics manufacturer Avon, initially, unable to convince the Chinese government about the viability of its direct marketing method, requested the assistance of Hong Kong’s Bank of East Asia director David Li. Li is known for having a very well known and influential guanxi with ties into the central Chinese government, which he used to assist Avon in establishing a communication link and push through a deal between Avon and

Dialectical Journal - The Importance of Being Earnest by Oscar Wilde Assignment - 1

Dialectical Journal - The Importance of Being Earnest by Oscar Wilde - Assignment Example However, Algernon alludes that not bearing a mother’s likeness is also tragic. However, this is true if related to the Oedipus Complex. Wilde intended to show the kind of attributes that would influence a man. After noting that Miss Prism bears such attributes, he went ahead to amplify how such attributes would factor into influencing Jack’s brother. The amplification makes the attributes vivid, and exemplifies Miss Prism’s knowledge. Wilde used these ironical and sharply contradicting statements to criticize writings that end happily, as they supposedly are predictable, and do hence to make the readers happy. The device also injected humor into the statement. Wilde used the words to intentionally expose Jack’s intent of lying about the death of his brother. This element of foreshadowing inspires the reader to imagine the events that would unfold when Jack tells the lie. The words are used to make reference to the action of escorting, or accompanying. In this sense, jack projects his intent to accompany Miss Fairfax to a destination, out of the house. Taken literarily, Jack’s statement may also imply an intention of observing Miss Fairfax when she is out of the house. The metonymy has been used to inspire the readers imagination beyond the contexts of the actions of the characters. Chasuble preferred to elaborate the practices in the Primitive Church, in an exemplified manner. As such, his statement stands out amongst the several made by other people. Considering that Chasuble is a doctor, the words were chosen by Wilde to project his social status and level of education. Wilde restructured Algernon’s phrase from ‘as long as’ to ‘so long as’ to create an element of humor. It is the reminder that Jack’s mourning which has been taken seriously even by Algernon, is false. Algernon intended to tell

The future of natural medicine Essay Example | Topics and Well Written Essays - 2500 words - 1

The future of natural medicine - Essay Example The future of heÐ °lth cÐ °re Ð °nd medicine cÐ °n not be predicted, but it will certÐ °inly be developing into Ð °n InformÐ °tion Ð °ge, evolving in itself. PÐ °rticulÐ °rly, the medicÐ °l services will be delivered through the Internet Ð °nd other innovÐ °tive meÐ °ns of communicÐ °tion providing quÐ °lity Ð °nd cÐ °re whenever Ð °nd wherever needed. In the following pÐ °per I will discuss the future of nÐ °turÐ °l medicine emphÐ °sis on e-medicÐ °l services. I will Ð °lso tÐ °lk Ð °bout conventionÐ °l medicine Ð °nd its plÐ °ce in the future of heÐ °lth cÐ °re. E-medicine refers to the use of telecommunicÐ °tion thÐ °t provides medicÐ °l informÐ °tion Ð °nd services. It mÐ °y be Ð °s simple Ð °s two heÐ °lth professionÐ °ls discussing Ð ° cÐ °se over the telephone, or Ð °s sophisticÐ °ted Ð °s using sÐ °tellite technology to broÐ °dcÐ °st Ð ° consultÐ °tion between providers Ð °t two distÐ °nt locÐ °tions, using videoconferencing equipment.† (Gustke et Ð °l., 20000) The simplest definition of E-Medicine is thÐ °t it uses multimediÐ ° technology (voice, video Ð °nd dÐ °tÐ °) to deliver medicÐ °l services. The lower cost of bÐ °nd- width Ð °nd improvement in video Ð °nd dÐ °tÐ ° compression stÐ °ndÐ °rds hÐ °ve increÐ °sed the number Ð °nd types of medicÐ °l services thÐ °t cÐ °n be delivered from Ð ° distÐ °nce to include virtuÐ °lly every speciÐ °lty. E-Medicine is Ð °n Ð °pplicÐ °tion Ð °nd not Ð ° technology. It uses Ð ° hybrid technology incorporÐ °ting elements of television, telecommunicÐ °tion, computers, engineering Ð °nd medicine. Services cÐ °n be delivered on Ð ° combinÐ °tion of technologies with Ð ° vÐ °riety of equipment. The objective of E-medicine â€Å"is not Ð °n evolutionÐ °ry concept but Ð ° revolutionÐ °ry concept Ð °nd Ð °t the heÐ °rt of every revolution, there is the need for Ð ° sudden mÐ °ssive chÐ °nge, Ð °t the core of which is the humÐ °n mind.† (Merrell, 2004). E-medicine in the future will bring mÐ °ny benefits to

Mterials & manufacture 2 Essay Example | Topics and Well Written Essays - 1000 words

Mterials & manufacture 2 - Essay Example Metal matrix composites have been receiving significant attention in recent years, particularly in the area of processing techniques. In many instances the properties of a reinforced metal have been shown to provide a performance advantage over monolithic metal, but the high cost of producing the composite has prohibited widespread commercial use. Of the many potential metal matrix systems, aluminum alloy matrix composites have been the object of much research, primarily due to the light weight, low cost, and ease of fabrication of aluminum. Within the class of Aluminum alloy matrix composites there exist two distinct material systems, namely (i) discontinuously reinforced composites, with the reinforcement taking the form of a particle, a platelet, a whisker, or a chopped fiber, and (ii) continuously reinforced composites, with the reinforcement being a unidirectional or a multidirectional array of continuous fibers. Discontinuously reinforced aluminum alloys have been fabricated by various means, including solidstate processes, such as powder metallurgy techniques (blending of metal and ceramic powders followed by hot pressing) [2], and liquid-state processes, such as compocasting (blending ceramic powder and molten aluminium, agitating and casting) and pressurized liquid-metal infiltration. During this practice work, we had study a Metal Matrix Composite (MMC). This MMC contains 10% of Aluminium oxide or Alumina (reinforcement) and 90% of Aluminium alloy matrix (2618A). The aim of MMC is to improve the properties of this material. Indeed, Aluminium is ductile and Alumina (Al203) is stiff and strong. When we combine these two materials we obtain a composite with better properties. The aim of this laboratory it’s to compare the â€Å"green† density with the sintered density. Moreover, we can see the different structures, between â€Å"green† and sintered density, by an electron microscope available in the

Plagiarism & taking credit Essay Example for Free

Plagiarism taking credit Essay Plagiarism is taking credit for work performed by others. This type of academic dishonesty can take many forms. The most obvious example would be cutting and pasting information from a web-site and turning the paper in as one’s own work. Another obvious example would be working with someone else on a paper. If the student claims sole authorship of the paper in question, it would be plagiarism because he/she had the help and input of another person in the writing of the paper. Also, any time exact words (more precisely, strings of three or more words) are taken from an outside source they must be placed inside quotation marks and correctly cited. Failure to do so would constitute plagiarism. Incorrect citations – where one author is credited with the idea when in fact the idea belongs to a second author – constitute plagiarism. Additionally, citing a work that you have not actually read would be an example of plagiarism. Plagiarism and academic dishonesty in general carry heavy consequences. These consequences include losing marks on assignments, receiving a failing grade, losing personal integrity, and being subject to disciplinary sanctions. These consequences can have severe negative impacts on a student’s future career. Professors would not be willing to write recommendations for students who have been convicted of academic misconduct, and the university administration would be able to alert people contacting the university that a particular student has been convicted of this serious offence. These consequences are particularly serious in fields where personal integrity and honesty are of great importance. In order to avoid the charge of plagiarism, certain protocols must be followed. Whenever information or ideas is taken from an outside source, the source of this information must be cited using an appropriate citation style (such as APA). These outside sources must be cited within the text itself and in the reference list. Students must also be sure that they actually read any source that they cite in a paper. In order to ensure that this is done, students must submit the first page of any outside source they consulted in the preparation of a research paper. Students must also be sure that they do not incorrectly attribute authorship. For example, if a source that the student consulted supplied information taken from another source, the student must actually obtain, read, and cite this second source if they want to include that information in their paper. If a student has any questions about possible plagiarism on a paper, the student must ask the professor before the paper’s deadline. I have reviewed the attached documents, and I understand them.

Defining And Evaluating Existentialism

Defining And Evaluating Existentialism Existentialism is a Humanism, to be human is defined by an existence (physical existence) that precedes its essence (true nature). As such, if existence is problematic, and it is towards the development of a full existentialist theory of what it is to be human that Sartres work logically evolves. In relation to what will become Being and Nothingness, Sartres early works can be seen as providing important preparatory material for an existential account of being human. But the distinctiveness of Sartres approach to understanding human existence is ultimately guided by his ethical interest. Thus the nature of Sartres topics of analysis, his theory of the ego and his ethical aims all characterise the development of an existential phenomenology. The general concern of existentialism is to give an account of what it is like to exist as a human being in the world. Existentialism is a philosophical movement emphasizing individualism, individual freedom, and subjectivity. Epistemologically, it is denied that there can be an absolutely objective description of the world as it is without the intervention of human interests and actions. The world is a given and there is no epistemological scepticism about its existence; it has to be described in relation to ourselves. There is no fixed essence to which beings have to conform in order to qualify as human beings; we are what we decide to be. The issue of freedom and choice are of crucial importance in existentialism. Sartre thinks that authentic choices are completely undetermined. If we make our decisions merely by reference to an external moral code or set of procedures, then we are, similarly, not arriving at authentic choices. Key Points of Jean Paul Sartres (1905 1980) existentialist Philosophy: 1.Existence precedes and rules essence Satires ethical behavior acknowledges our freedom in the world. We cannot hide behind the safety of tradition, culture and the moral code. Among the most famous and influential existentialist propositions is Sartres dictum, existence precedes and rules essence, which is generally taken to mean that there is no pre-defined essence to humanity except that which we make for ourselves. Since Sartrean existentialism does not acknowledge the existence of a god or of any other determining principle, human beings are free to do as they choose. To live according to these principles means to live in bad faith and is unethical Since there is no predefined human nature or ultimate evaluation beyond that which humans project onto the world, people may only be judged or defined by their actions and choices, and human choices are the ultimate evaluator. The concept of Existence preceding essence is important because it describes the only conceivable reality as the judge of good or evil. If things simply are, without directive, purpose or overall truth, then truth (or essence) is only the projection of that which is a product of existence, or collective experiences. For truth to exist, existence has to exist before it, making it not only the predecessor but the ruler of its own objectivity. 2. Anguish In Sartres Existentialism, anguish is the feeling one gets when one recognizes that one is responsible not only for oneself, but for all of mankind. Along with many of the other emotional states described by existentialists, anguish can be paralytic, and one of the goals of existentialism is to push people toward action even in the face of these emotions. 3. Bad faith Satre basically not acknowledging that as a human being our existence precedes our essence in the world and so not acknowledging our own ability create our self through our choices. The bad faith stories, young woman and a waiter, the young woman delaying her moment of choice in a way that for inauthentic and the waiter failing to acknowledge to be a waiter and he has his choice to choose not to be a waiter. Both the young woman and the waiter put essence before existence but they are slightly different in their choices. 4. Being in itself Being in itself is the self-contained and fully realized being of objects. It is to be contrasted with the being, or existence, of people. from the young woman story Ivich treats both Delarue and her own body as being-in-itself. According to Sartre, human beings want to attain being in itself while retaining their freedom, a tendency he dubs the desire to be God. 5. Being for others Being for others, in Sartrean existentialism, is that part of human existence that is social and socially defined. From the story of waiter he treat him/her self first and primarily as a being-for-others. One path to bad faith is to view all of ones existence as disclosed through others. 6. Being for self To act in good faith we must treat self and others primarily. Existentialism is not a complete philosophy and many arguments can be made against it. An accountant also a human being, sometimes he do accounting and sometimes do other things. A Existentialism, is that part part, though inseparable from the rest of human existence that is self-defined. Viewing human existence as entirely self-defined is one way toward bad faith. 7. Despair Sartre defines despair the feeling resulting from the realization that there is no sure footing in the world, and we can never know the results of our actions beforehand. Criticisms Existentialism is not a perfect and complete philosophy and many arguments can be made against it. The philosopher Marcues criticized that if avery one is already free and they are walking on the roads they why bother to fight for freedom? The opponents of existentialism assert that it fosters the particularization of human beings, stripping them of a universal sense of identity, which is entirely consistent with the claims of existentialists that the only universal allowed for human beings is their fundamental freedom. An another view is simply that existentialists are insane, which, many existentialists would reply, is correct, but, they would retort, only if you considered a lack of desire to live the traditional office life as reducible to insanity. Conclusion The existentialism is not a complete philosophy. It is philosophy which combines with Virtue ethics and deontology. Existentialist understanding of what it is to be human can be summarised in his view that the underlying motivation for action is to be found in the nature of consciousness which is a desire for being. It is up to each agent to exercise his freedom in such a way that he does not lose sight of his existence as a facticity, as well as a free human being. In so doing, he will come to understand more about the original choice which his whole life represents, and thus about the values that are thereby projected. Such an understanding is only obtained through living this particular life and avoiding the pitfalls of strategies of self-deceit such as bad faith. This authentic option for human life represents the realisation of a universal in the singularity of a human life. Existentialism declares that the individual must choose his way; there is no predetermination. Since the universe is meaningless and absurd, people must set their own ethical standards. The universe does not predetermine moral rules. Each person strives toward a unique moral perfection. Existentialists believe that morality depends on the individual, rather than a supreme being.

Largest shoe manufacturer

Largest shoe manufacturer Q1. a) The reasons that prompted Nike to change its approach to demand forecasting: Nikes growth from being the 12th largest shoe manufacturer in 1984 to the world leader in the footwear industry by mid 1990s increased the intricacy of its manufacturing schedules. The demand forecasting adopted by Nike prior to considering the new approach saw the retailers placing an order six months ahead of the delivery. Due to the six months lag in delivery Nike could not forecast whether the ordered shoes would be in demand after six months once they reach the store shelves[1]. The existing forecasting technique failed in identifying the quantity of order to be placed with such a long lead time. And had to depend solely on their brand name and hoped that the product would sell. The expanding market demanded a faster delivery, thus pressurizing Nike to shorten the lead time from the standard shipping time of six months. The 27 order management systems that formed Nikes supply chain crumbled under pressure to develop accurate demand forecasts, these factors lead Nike to implement a new demand forecasting. b) Outcomes of the new demand forecasting system. The vigorous demands indirectly affected the new demand forecasting system, resulting in excess manufacturing of some products while developing inventory shortages for others as they struggled to cope up with the customer demands. Nike ended up ordering US $90 million worth of shoes which were in low demand like Air Garnett II, also a shortfall of US$80 million to US$100 million on popular models, like Air Force One. Nike filled the back orders that were to be supplied and disposed of excessive inventory through discount sales and bargain basement prices through its outlet stores. This continued for about 6-9 months to neutralize the incorrect proportions in inventory and two years to overcome the financial losses. Nikes share prices dropped considerably due to the losses and faulty forecasts. Costing Nike more than US$100 million in lost sales, there by lowering its stock prices by 20% and also leading it to a series of legal battles. Q2. a) The reasons that resulted in such a huge gap between demand and supply at Nike: The implementation of i2 had adverse effects for Nike, since I2 were inexperienced in providing supply-chain systems for the footwear and apparel industry. Nikes higher demand data meant heavy customisation was done on i2 this clogged up the software thus by slowing it considerably to such an extent that a single screen would take 3 minutes to load[2]. Further analysts stated that Nike was installing SAP software to help take orders from customers and get those orders through manufacturing. This led to queuing which led to the complexity in matching up of information from SAP and i22. Thus Nike had erroneous orders being sent to the manufacturers and was unable to recover from the errors until it was too late. b) According to my opinion this situation could have been avoided: If Nike would have considered the facts of acquiring actual data from retailers like direct point-of-sale integration rather than software algorithms. By developing a better collaboration with the far east manufacturers to reduce the overall lead time there by converting the supply chain from make-to-sell to make-to-order. Nestlà © and Nike: How they almost failed by Gene LeshinskyFebruary 18th, 2008 Long Strange Trip: Nike Finally Regains Footing: By Larry Barrett

Archimedes Essay examples -- Biographies Bio Biography

People have been aware of objects floating on water or sinking since before recorded history. It was not until Archimedes of Syracuse came along, that the theory of flotation and the buoyancy principle were defined. Archimedes was born at Syracuse on the island of Sicily in 287 BC. His father, Phidias, is thought to have been an astronomer who discovered the size and distances of the sun and moon. Archimedes might have been related to King Hieron the second, King Hieron definitely favored Archimedes as his first philosopher. As a young boy, Archimedes developed a life-long interest in the study of the heavens. As a teen he traveled to Egypt where he studied at the great Library of Alexandria, possibly under the followers of Euclid. Archimedes is often described as being absentminded, self-absorbed, and somewhat eccentric. Despite these personal attributes, he was recognized in his own time as a genius, and is revered today as one of the greatest figures in the history of science and mathematics. It is not known if Archimedes did marry or if he had any kids, Archimedes' first love was always mathematics. He is also known today to have been an experimental physicist, legendary philosopher, artistic engineer and a wise inventor. He would often spend days so intently fixed on solving a problem that he neglected both food and himself to a point that his friends would carry him kicking and fighting to the bath. He often stooped to the ground to work mathematical problems by drawing figures in the dirt. He is even said to have carried a small wooden tray filled with sand, which he used to draw his figures and work on his mathematical problems. You might think of this tray as our modern day lap-top or another recording device. Of course,... ... felt guilty to be so stupid to have send a soldier to get Archimedes from his studies. In his triumph he provided Archimedes with an honorable burial and befriended his dead relative. On Archimedes grave stone there is an inscription of Pi, I think his most famous discovery. Finally a sphere with a cylinder and the 2:3 ratio of the volumes (the solution to the problem), which he took pride as his greatest achievement. Finally, Archimedes lived from 287B.C to 212 B.C, spending most of his life in his home land. Not much is known about his childhood or about him growing up but without him or modern world wouldn't be the same. Thanks to him we have improved inventions and theories and/or formulas. Such as, the determination of circular area, he approximated more precisely than anyone to date, near development of the Calculus, Quadrature of the parabola, and many more.

Hucks Conflicted Nature in Mark Twains The Adventures of Huckleberry

Huck's Conflicted Nature in Mark Twain’s The Adventures Of Huck Finn Continuing what he had started in the first eleven chapters, Twain further develops Huck Finn's character through a series of events where Huck's decisions indicate his moral struggle. Adventures shows the dynamic movement of Huck's internal difficulty, illustrating his conflicted nature. As juxtaposition to the fantasy of Tom Sawyer's gang, Huck encounters real robbers and murderers on the wrecked Walter Scott steamboat. After hearing their plans, Huck tells Jim, â€Å"If we find their boat we can put all of 'em in a bad fix -- for the Sheriff ’ll get 'em† (262); despite his developing nihilism , Huck decides to trap the men by stealing their boat. Here Huck has drastically affected the fate of the men, whether it be dying or being arrested, and eventually he realizes his responsibility: â€Å"I begun to worry about the men...I begun to think how dreadful it was, even for murderers, to be in such a fix† (263). To remedy the situation in response to his sudden guilt, Huck employs (deceives) the captain of the ferryboat to rescue the men. Huck applauds his altruism, saying â€Å"I was feeling ruther comfortable on accounts of taking all this trouble for that gang, for not many would have done it† (265) but fails to realize his irony: â€Å" not many [people] would have† boarded the wreck in the first place, much less trapped the men. Regardless, Huck has shown he can act freely, but not free from his conscience, which will prove important later in the novel, specifically at the climax. Prior to chapter twenty-five, the king and the duke had committed mild schemes, towards which Huck had been indifferent; once they plan to swindle the Wilks girls’ inheritance, however, Huc... ...ndons his effort to escape society and its imposition (by becoming Tom Sawyer’s sidekick again). His conflicted nature serves as the novel’s tragic aspect: although he had resolved to decide his morality independent from society, Huck’s freedom will be limited once Aunt Sally adopts him, a result of his choice to comply with Tom instead of freeing Jim and leaving on the river, where they have both lived freely throughout the novel. Works Cited and Consulted Clemens, Samuel. Adventures of Huckleberry Finn. The Heath Anthology of American Literature. Ed. Paul Lauter, et al. 2nd ed. Vol. 2. Lexington: Heath, 1994. 236-419. Kaplan, Justin. "Born to Trouble: One Hundred Years of Huckleberry Finn." Mark Twain Adventures of Huckleberry Finn: A Case Study in Critical Controversy. Eds. Gerald Graff and James Phelan. Boston: St. Martin's, 1995. 348-359. Huck's Conflicted Nature in Mark Twain's The Adventures of Huckleberry Huck's Conflicted Nature in Mark Twain’s The Adventures Of Huck Finn Continuing what he had started in the first eleven chapters, Twain further develops Huck Finn's character through a series of events where Huck's decisions indicate his moral struggle. Adventures shows the dynamic movement of Huck's internal difficulty, illustrating his conflicted nature. As juxtaposition to the fantasy of Tom Sawyer's gang, Huck encounters real robbers and murderers on the wrecked Walter Scott steamboat. After hearing their plans, Huck tells Jim, â€Å"If we find their boat we can put all of 'em in a bad fix -- for the Sheriff ’ll get 'em† (262); despite his developing nihilism , Huck decides to trap the men by stealing their boat. Here Huck has drastically affected the fate of the men, whether it be dying or being arrested, and eventually he realizes his responsibility: â€Å"I begun to worry about the men...I begun to think how dreadful it was, even for murderers, to be in such a fix† (263). To remedy the situation in response to his sudden guilt, Huck employs (deceives) the captain of the ferryboat to rescue the men. Huck applauds his altruism, saying â€Å"I was feeling ruther comfortable on accounts of taking all this trouble for that gang, for not many would have done it† (265) but fails to realize his irony: â€Å" not many [people] would have† boarded the wreck in the first place, much less trapped the men. Regardless, Huck has shown he can act freely, but not free from his conscience, which will prove important later in the novel, specifically at the climax. Prior to chapter twenty-five, the king and the duke had committed mild schemes, towards which Huck had been indifferent; once they plan to swindle the Wilks girls’ inheritance, however, Huc... ...ndons his effort to escape society and its imposition (by becoming Tom Sawyer’s sidekick again). His conflicted nature serves as the novel’s tragic aspect: although he had resolved to decide his morality independent from society, Huck’s freedom will be limited once Aunt Sally adopts him, a result of his choice to comply with Tom instead of freeing Jim and leaving on the river, where they have both lived freely throughout the novel. Works Cited and Consulted Clemens, Samuel. Adventures of Huckleberry Finn. The Heath Anthology of American Literature. Ed. Paul Lauter, et al. 2nd ed. Vol. 2. Lexington: Heath, 1994. 236-419. Kaplan, Justin. "Born to Trouble: One Hundred Years of Huckleberry Finn." Mark Twain Adventures of Huckleberry Finn: A Case Study in Critical Controversy. Eds. Gerald Graff and James Phelan. Boston: St. Martin's, 1995. 348-359.

Early Puritan and Pilgrim Literature Essay

The Puritans and the Pilgrims both migrated to North America to escape religious persecution due to their views about the Church of England. They created very little literature because writing was viewed as satanic in both cultures. All that was written in Puritan New England were works to glorify God and record journeys for historical purposes. The most famous poets of this period include Anne Bradstreet and Edward Taylor. William Bradford, the governor of the Plymouth Colony, kept a journal of the events that took place on the journey over on the Mayflower and life within the colony. Jonathan Edwards, a minister during the Great Awakening wrote the sermon â€Å"Sinners in the Hands of an Angry God.† These authors illustrated the following religious beliefs in their works: natural depravity, irresistible grace, and unconditional election. Puritans believed that all men sinned and that all men were of an evil nature. Ministers instructed them to search their souls for sins and ask God for forgiveness. In the 1730’s and 1740’s the Puritan religion began to lose followers. Several ministers went to extreme measures to get their followers to adhere to the teaching in the Bible more sternly. â€Å"There are in the souls of wicked men those hellish principles reigning, that would presently kindle and flame out into hell fire, if it were not for God’s restraints.†(101). The prior excerpt demonstrates the natural depravity of men. Puritans were instructed to frequently search through their souls for instances of which they had done evil doings. The act of constant soul searching wore many puritans down and caused them to convert to a different faith while others were driven in to a psychotic state. Edwards also stated that â€Å"Your wickedness makes you as it were heavy as lead and to tend downwa rds with great weight and pressure towards Hell;†¦Ã¢â‚¬ (103). The passage refers to the wickedness of men. Hearing every Sunday that you possess natural wickedness which drags you down towards hell is one of the reasons the Puritan faith became unpopular and eventually died out. In his sermon, he also stated â€Å"So that thus it is, that natural men are held in the hand of God over the pit of Hell; they have deserved the fiery pit, and are already sentenced to it;†¦Ã¢â‚¬ (103). Edwards and other preachers of the Great Awakening depict God as an angry and cruel man and end up losing many followers of the Puritan faith in the end as members of the faith viewed God as mean and inhumane and  they felt he was inaccessible to them. Another Puritan belief that was prominently displayed in their literature was unconditional election. Unconditional election states that God decides whether a man will go to heaven or hell before he or she is even born. The poet, Anne Bradstreet illustrates the theme in her poem â€Å"Upon the Burning of Our House† â€Å"And, when I could no longer look,/ I blest His name that gave and took,/ That laid my goods no in the dust:/ Yea so it was, and so ’twas just./ It was his own: it was not mine;/ Far be it that I should repine.†(53). This example states that even though her house and earthly possessions are ruined she can take comfort in the fact that the Lord has a house waiting for her in heaven. In another one of her poems,† To My Dear and Loving Husband†, Anne represents the same theme â€Å"Thy love is such I can no way repay;/ The heavens reward thee manifold, I pray./ Then while we live, in love let’s so persever,/ That when we live no more we may live ever.† (51). Edward Taylor, another poet of the colonial era, writes poem in the mindset of being one of the unconditionally elect. He states in the poem â€Å"Huswifery† â€Å"Then cloath therewith mine Understanding, Will,/ Affections, Judgment, Conscience, Memory/ My Words, and Actions, that their shine may fill/ My wayes with glory and thee glorify./ Then mine apparel shall display before yee./ (70). Taylor proclaims he is asking God to clothe him in knowledge of the next life and that he believes he is of the unconditionally elect for asking for this understanding. Yet another reoccurring theme in the writings of the puritans was irresistible grace. Irresistible grace states men survive by the grace of God. William Bradford uses this theme many times in his account of the Pilgrims journey to the new world titled Of Plymouth Plantation. Bradford wrote, â€Å"But herewith they broke their mast in three pieces and their sail fell overboard in a bery grown sea, so as they had like to have been cast away. Yet by God’s mercy they recovered themselves, and having the flood with them struck into the harbor.†(34). He indicates that the Pilgrims were at the mercy of God and by his grace they found the harbor and survived. Bradford later refers to an instance when some Pilgrims were exploring the  area around a possible camp site. â€Å"Men, Indians! Indians!† And withal, their arrows came flying amongst them. Their men ran with all speed to recover their arms, as by the good providence of God they did.† (33). Here Bradford glorifies God for allowing the Pilgrims to get to their weapons before them all fell victims to the arrows of the Indians. Bradford greatens the name of God once more in the account of John Howland. â€Å"†¦as they thus lay in a mighty storm, a lusty young man called John Howland, coming upon some occasion above the gratings was, with a seele of the ship, was thrown into sea; but it pleased God he caught hold of the topsail halyards†¦Ã¢â‚¬  (28). Unlike the man who feel overboard and drowned, for taunting the sick and poor, John Howland had the graces of God extended to him and was rescued from the stormy waters. Throughout the Colonial Age Puritans and Pilgrims emphasized three major themes in their literature. They wrote of irresistible grace, the natural depravity existing in all of man kind, and predestination for those among the unconditionally elect. Three writers of the period, Bradstreet, Taylor, and Bradford, use their works to glorify God and announce themselves among the unconditionally elect. The fourth, Jonathan Edwards wrote a sermon in an attempt to scare followers in to the more strict puritans ways of past in an attempt to save the religion.

Oxfordshire Go Active Project Health And Social Care Essay

Over the old ages a positive correlativity between physical activity and wellness has been shown in many surveies. Physical activity has been known to forestall certain medical conditions like cardiovascular diseases, non-insulin-dependent diabetes mellitus ( NIDDM ) , Colon malignant neoplastic disease and it likely gives protection against osteoporosis and mental unwellness ( USDOHHS 1996 ) . There is 1.2-2.0 fold comparative hazard of mortality in sedentary people than in physically active population USDOHHS 1996 ) . There is a greater hazard of being unfit than being fit in populating a sedentary life style ( Blair et al 1989 ) . A five fold hazard of mortality in unfit adult females and a threefold hazard in inactive and unfit work forces compare to does that are most fit has been shown by Blair et Al. ( 1989 ) . Harmonizing to the WHO ( 2002 ) 6 % of all deceases for work forces and 6.7 % for adult females are cause by physical inaction in the developed universe. Too small phys ical activity has been shown to be the cause of 3.3 % and 3.2 % of all lost DALY every bit good as an estimated 33 % of all deceases from Coronary bosom disease ( CHD ) , colon malignant neoplastic disease and NIDDM ( Powell and Blair, 1994 ) . The bulk of population in most developed states like the UK is non as physically active as necessary from a wellness position point ( Engstrom, 1997 ) . Obviously there are several grounds for a society to advance physical activity and from a public wellness position PA has the potency to better the state ‘s wellness. Sedentary life has become a public wellness job particularly in the developed universe. This is chiefly due to people passing tonss of clip driving autos watching telecasting, playing electronic games and so on. Until of recent PA has non been in the bow forepart of national policy, nevertheless in the last decennary it is going recognized and it is mentioned in most of the national service frame works ( DOH 1999, DOH 2000 and DOH 2001 ) . Peoples are hence progressively encouraged and advised by the primary wellness attention in England to acquire involved in visible radiation or heavy physical activity plans through referral strategies ( Fox et al 1997, Riddock et al 1998 ) . In the UK it is the primary attention trusts ( PCT ) in coaction with Sports England who are the chief boosters and suppliers of such referral strategies and Oxford PCT is no freedom to this. Objectively the strategy is designed to assist keep the wellness and good being of the public and they recommend all grownups ( 16years and supra ) to accomplish at least a sum of 30 proceedingss a twenty-four hours of moderate to intensive physical activity on 5 or more yearss a hebdomad. In 2004 the Oxford shire PCT in acknowledging this vision made a corporate determination to travel towards a new county Sports partnership: ( a partnership which jointly includes a web of bureaus, groups and persons who are committed to accomplishing a shared vision for the county ) which is to better the physical activity degrees of their public through PA referral strategies. Sports England who was the first provokers of this alteration was willing to financially and logistically back up all the 49 counties ‘ athleticss partnerships within England under the umbrella of †GO Active † . The chief purpose of the Oxford shire Go active undertaking is to better the wellness and good being of the dwellers of Oxfordshire by increasing and widening engagement by grownups ( 16+ ) in athletics and active recreational plans. The partnership nucleus squad was approached by the Oxfordshire PCT in June 2007 for them to work together to debar the increasing dainty of fleshiness i n the community due to inaction. As a start the PCT allocated funding for two stations to this undertaking to acquire started in 2008 which will co-occur with the launch of the new †Oxfordshire Fleshiness Strategy Program † . The logic was to pull the two plans together under one streamer to maximise added value and impact while minimising cost on undertaking direction, selling every bit good as the cost monitoring and rating. This brings us to the chief subject of this thesis which is intended to measure the cost effectivity of this physical activity referral strategy: †The Oxfordshire Go-Active Undertaking † over a period of a twelvemonth since it was commissioned. The potencies of physical active to better the wellness of the state from a public wellness position have been copiously manifested and yet at that place have non been equal economic ratings of such PA intercessions. From experience, Jackie and Jane ( 2006 ) , have shown that people working in the wider field of public wellness does non see rating as their chief precedence and may even see it striping them of valuable clip that could be better utilized in bettering wellness. However late economic rating has become an built-in portion of most undertakings little or large due to the fact that most undertakings have legion interest holders all with different dockets, involvements and positions about what result constitutes a successfu l undertaking. Evaluation is designed to find the value or worth of an activity ( Graney 2002 ) .Chapter 2: LITERATURE REVIEW2.1 IntroductionThis chapter gives an overview of cardinal literature on the economic rating of physical activity referral strategies ( PARS ) or Exercise referral Schemes ( ERS ) . Over the past decennary the United Kingdom and most industrialized states have progressively recognized the function of physical activity in bettering public wellness and this resulted in a big figure of research and policy development aimed at physical activity publicity ( DOH 2004, DOH 2005, NICE 2006 ) . The function primary health care in undertaking increasing degrees of physical activity within the general population has late been reemphasized by the UK authorities ( Taylor A 2003 ) . US surgeon general ( 1996 ) reported on the chief effects of physical activity ( PA ) on wellness and disease and the effects highlighted were: lower entire mortality rates and lessening hazard of cardiovascula r mortality, colon malignant neoplastic disease and non insulin dependant diabetes ( NIDD ) . It was stipulated that regular PA besides delays or prevents high blood force per unit area ( HBP ) , reduces blood force per unit area in hypertensive sick persons and relieves the symptoms of depression and anxiousness. A meta analysis of PA in relation to the bar of coronary bosom disease ( CRD ) concluded that the comparative hazard of CRD in the least active compared to the most active is 1.9, Berlin et Al. ( 1990 ) . Physical activity in bettering the wellness and well-being of the people can non be ignored. The rational for this reappraisal is to determine what is known about such plans as respect to what benefits are gained, cost effectivity of intercessions and what indexs are used to mensurate effectivity ; qualitatively, quantitatively, morbidity or mortality rates or economically. The relevant literature will besides be used in all subdivisions of this thesis which is chiefly ge ared to measuring the cost effectivity of â€Å" Oxfordshire GO Active undertaking † run by Oxfordshire Primary Care Trust ( PCT ) . Literature from all facets and changing signifiers of PARS and or Erbiums from assorted parts of the universe were looked at and the sum of literature was poetry. The reappraisal standard was based on the PICOS system, Greenhalph ( 1997 ) and Oxman et Al. ( 1994 ) , so as to guarantee lucidity, quality, truth and cogency. In this reappraisal a sum of 15 undertaking documents on physical activity referral strategies were studied and a mix March of assorted survey types and plans were considered runing from: randomized control tests, systematic reappraisals, cost effectiveness Socio-demographic patterning of referral surveies, strategies to advance physical activity in grownups, community based exercising programmes, primary attention based referral strategies, ethnically based referral strategies and so on. Due to the big figure of research documents found the reappraisal for the intent of thesis sweep from 1998 to 2010. A survey by Stevens et Al. ( 1998 ) did a cost-effectiveness analysis of a primary attention based physical activity intercession in the 45-74 twelvemonth old work forces and adult females in London. In the survey two west London general patterns ( GP ) together with an exercising development officer ( EDO ) invited 714 inactive people aged 45-74 to their audiences and offered them a individualized 10 hebdomad physical activity ( PA ) plan to increase their degree of exercising ; through combined place based and leisure Centre activities. The chief aim was to measure the cost effectivity of the intercession ; by comparing the cost of the PA in intercession group to that of the control group. The control group was merely sent information on local leisure centres. The initial choice procedure involved directing self assessment questionnaires to everyone in the surgery list aged between 45-74 old ages. The questionnaire asked for basic demographic informations ; ( instruction, ethnicity, matrimonial position and socioeconomic activity ) and a self appraisal of the figure of episodes of either mild or vigorous PA undertaken for at least 20 proceedingss per hebdomad in the last 4 hebdomads. A list of moderate activities including alert working, heavy horticulture, cycling for pleasance. Heavy DIY and swimming for leisure were given and vigorous activities like jogging/running, competitory athleticss, swimming lengths briskly, mounting stepss and fast cycling were included in questionnaire. Out of 2253 baseline questionnaires sent 1288 ( 57 % ) were returned of these 63 % were adult females and 46 % work forces, 827 were inactive, 113 excluded on medical evidences and the 714 left were randomized into 363 for intercession and 351 as control. Exercise development officer ( EDO ) through the GP invited the intercession group to a audience in a local leisure Centre. At the first audience merely 126 attended, 2nd audience 91 came and after 8 months 200 returned the follow up questionnaire. The control group, ( who were merely sent exercising publicity stuffs but non invited for any audiences ) , returned 215 questionnaires for the 8 months follow up appraisal. The consequences after 8 hebdomads showed a net 10.6 % ( 95 % Confidence Interval ( CI ) 4.5- 16.9 ) decrease in sedentary life and a corresponding increased 1.52 episodes of PA ( 95 % , CI 1.14 -1.95 ) among the intercession group. Response rate was highest in topics aged 65-74 old ages old ( 64 % ) followed by 55-64 twelvemonth olds ( 54 % ) and the youngest group 45-54 twelvemonth olds ( 37 % ) Stevens et Al. ( 1998 ) calculated the cost of each single intercession to be about ?650 pieces the cost of traveling person from the control group to the recommended degree of PA would be about ?2500, a difference of ?1750. However Steven et Al. ( 1998 ) realized the cost of the enlisting procedure is the highest hence a high uptake rate of participant would cut down cost markedly. However the bettering wellness additions of PA reduced mortality rate ( particularly from cardiovascular conditions, colon malignant neoplastic disease and diabetes ) , Regular PA besides delayed HBP, reduced BP in hypertensive sick persons and releases symptoms of depression and anxiousness. Statistically the Two by Two tabular arraies applied to compare the sedentary topics for intercession and the control group in the survey. The 95 % CI calculated utilizing the formulary: antilog ( log OR + 1.96SE ) where the standard mistake ( SE ) = ( 1/A+1/B +1/C +1/D ) 1/2 for a standard two by two tabular array. In ciphering the cost effectivity three steps were used: First the cost of bring oning one sedentary individual to set about more physical activity ( the chief intended out semen of the test ) was calculated and found to be ?623 per individual. Second the cost of traveling person who is active but below the lower limit needed PA degree was calculated and cost at merely under ?2500 per individual. Third the cost of accomplishing any addition in an persons degree of PA cost ?327 to motion to a higher group or less so ?200 for an absolute addition in PA. The survey undertaken by Steven et Al. ( 1998 ) has shown that it is possible to cut down sedentary life at a moderate PA strength in work forces and adult females between 45-74 through a primary attention trust based intercession. The enlisting procedure has besides been observed as the most of import facet of the intercession and they concluded that maximising cost effectivity is reciprocally relative to a higher uptake rate, the higher the uptake the more cost effectual the intercession. Another cost effectivity survey carried out by Munro et Al. ( 2004 ) at the university of Sheffield, was a clustered randomised test of a community based exercising plan in the over 65 twelvemonth olds in Sheffield. The chief aim of this survey is to measure how cost effectual a community based exercising plan for older grownups is as a population broad public wellness intercession. The survey was based on the rule that those with active life styles enjoy better physical and mental wellness than sedentary people, Fentem et Al. ( 1998 ) and Nicholl et Al. ( 1994 ) . The benefits of exercising in the aged over 65 old ages were assumed to include improved cardiovascular position, functional ability and mental operation every bit good as decreased hazards of ; CHD, shot, hip breaks, mortality rate, type II diabetes and depression, ( Paffenbarger et al. 1993, Morris et Al. 1973, Solonen et Al. 1982, Herman et al. 1983, Boyce et Al. 1988 and Wickham et Al. 1989 ) . In add-on to some of the expected additions in mortality and nest eggs from reduced usage of wellness services there is an estimated cardinal cost per Quality Adjusted Life Years ( QALY ) of a‚ ¬17,172, ( Raftery J. NICE:2001 ) . Twelve pattern list all patients with day of the month of birth before 1/4/1930In this survey 13 patterns in Sheffield were ab initio approached to take part but one opted out. The staying 12 patterns who agreed to take part, four were indiscriminately selected as intercession group ( through a computing machine random totaling plan ) and the staying eight patterns were allocated as vitamin E control. All people aged 65 or over were sent a base line postal physical activity Questionnaires ( PAQ ) , for the aged ( Vorrips et al. 1990 ) to find their current degree of accustomed PA and general wellness position utilizing ( SF-36 ) . Those with PA mark of fewer than 20 % were notified and allowed to take part. Letterss from the research squad were sent to respondents run intoing the inclusion standards ask foring them to bespeak an involvement in go toing local exercising Sessionss twice hebdomadally. To get down with 9897 people ( those born on the 1st of April 1930 ) were sent the baseline study letters, 8117 ( 82 % ) of them completed the studies, 126 ( 1.2 % ) went off, there was no response from 1461 ( 14 % ) and 192 ( 2 % ) refused to finish the study signifiers. Out of the 8117 people who completed the studies 29 of them died before the 1st of August 1995, the most active 1612 and an 56 losing active mark were excluded go forthing 6420 least active people to be randomized as 2283 topics in intercession group and 4137 people in the control group. By the terminal of the intercession period 590 ( 26 % ) of those invited attended at least one session and the staying 74 % ( 1693 ) attended nor session at all. However it is of import to observe that the test had twice every bit many controls as intercessions and the ground for this is because the comparative cost of including controls was much smaller. After the survey design was in topographic point and allotments done to put to death the survey a timetable was arranged and a 2nd missive sent to all respondents ask foring them to the first session. This survey was similar to the 1 by Steven et Al. ( 1998 ) but the difference was the manner the intercession was introduced to the participants. It really clearly spelt out as a locally organized free twice hebdomadal exercising categories for the participants for two old ages. Besides the benefits to be derived and the chief purpose of the undertaking were clearly stated. The scope of activities on offered were clearly noted in with a specified clip edge ( 75minutes ) ; 45 proceedingss allocated for physical activity and the staying 30 proceedingss spent on other leisure and gratifying activities like: bowling, swimming, state walking, and tea dances. The locale for most categories were to be held in church halls, community centres and or sometimes in residential places. In a nut shel l the intercession was matter-of-fact, specific, inexpensive and easy organized for a big population by a public wellness bureau. The economic analysis was taken from a wellness service position and designed to make a wellness use analysis ; comparing costs and benefits of the intercession, as sing QALY, to other purchased wellness services on offer. The result nevertheless provided adequate counsel to the policy shapers in offering exercising to the aged with the apprehension that most of the cost involved was from enlisting, disposal, payment to exercising leaders, the locale, participant ‘s clip spent and refreshment. The one-year cost of the exercising was about ?128,302 giving a average cost of about ?125.78 and a cost per attendant per session of ?9.06 ( i.e. a sum of 2040 Sessionss were done in the two old ages, ensuing into 27 800 individual Sessionss with an estimated cardinal cost of ?267,033 ) . There was purpose to handle ( ITT ) for no topic was to be excluded from the survey by their general practicians. However QALY benefits were merely calculated based on 3149 participants who completed the SF-36 at all three appraisals ( 2097 control and 1052 intercession ) so in ciphering QALY three different attacks were examined: Entire cost of plan divide by the QALY gained for study completers merely ( i.e. n = 1052 ) ; Entire cost for study completers merely divided by their QALY addition ( i.e. n = 1052 ) , and the entire cost divided by QALY gained presuming all the participants in the intercession arm experience the mean addition ( i.e. n = 2283 ) . The entire cost of â€Å" merely the study completers † divided by QALY gained ( n=1052 ) was assumed to be the cardinal estimation and when combined with the cardinal cost estimation it yields a average cost per QALY of ?17,172 ( 95 % ) CI = ( 8300 – 87115 ) . When these premises were changed it resulted into the cost effectivity of the exercising plan varying between ?4 739 and ?32 533 per QALY, Munro et Al. ( 2004 ) , Mortality rate was down following the 2-3 old ages intervention period but non by a important border, statistically ( p = 0.50 ) Munro et Al. ( 2004 ) . Between the intercession and control group there was no important difference in the usage of wellness services and the intercession group were estimated to hold less diminution in wellness than the control, ( Munro et al. 2004 ) . To reason it was recommended that for a more accurate appraisal of the plan to be undertaken the follow up period has to be extended and the trouble in quantifying the cost of QALY must be appreciated for merely a good estimation can be made. However it is believed that the cost uncertainness could be reduced with higher degrees of participants and lower degrees of losing informations ( Munro et al. 2004 ) . The plan farther supported Morris ‘ contention that †exercise is a best bargain † in public wellness footings ( Morris, 1994 ) and besides as envisaged by the UK ‘s National Services Framework for older people ( DOH 2001 ) and it might be developed into a worthwhile consequence. Another more recent survey on the cost effectivity of a community-based physical activity intercession was carried out in the United States by Larissa et Al. ( 2008 ) . The background of this survey emphasized the association of PA with the addition hazard of many chronic diseases and with the premise these hazards lessening with increasing physical activity. The survey was a PA publicity intercession among American grownups, conducted from a social position and intended to gauge the life-time costs, wellness additions and cost effectivity ( Dollars per QALY gained ) compared to no intercession. The difference between the sum expected cost of intercession and the sum expected cost of no intercession would be the cost effectivity ; which is the ratio of the incremental costs ( dollars ) to incremental QALY. The incremental QALYs are the differences between entire expected QALYs associated with the intercession and those associated with no intercession. The cost effectivity analysis was of a cohort survey of US grownups who were aged 25 -64 by 2004 and were stratified by age, gender and degree of physical activity. The standard for inclusion is for: All cohort members at the beginning of the survey to be good ( i.e. to be free from the five most common diseases associated with physical inaction ( i.e. CHD, Ischemic shot, type 2 diabetes, chest malignant neoplastic disease and colorectal malignant neoplastic disease ) USDHHS ( 1996 ) , Kasaniemi et Al. ( 2001 ) ; An elaborate survey protocol for bing must be available ; PA outcome step must be available and a survey period of at least 3 months must be carried out. Seven intercession surveies were chosen: usage of personal trainers, standard behavior-therapy Sessionss, fiscal inducements, phone calls to participants to increase PA, school based plans or the 6years Stanford five metropolis integrated community based wellness instruction intercession for bettering PA through mark poster, media, community walking events and worksite were used. The cost effectivity of each intercession was estimated utilizing methods consistent with the guidelines established by the panel on cost-effectiveness in wellness and medical specialty Gold et Al. ( 1996 ) . The life-time costs were projected in both life-years ( endurance ) and QALYs associate with the seven evaluated PA publicity intercessions and with the non intercessions scenario. The mean comparative public presentation of each intercession was assessed compared to no intercession utilizing the ration of any extra expected cost of each plan. The figure of disease averted were besides estimated and one-way, bipartisan and probabilistic sensitiveness analysis conducted to assist find the hardiness of the concluding consequences. The mean individual old ages cost effectivity of the seven wellness publicity intercessions cumulated over a 40 twelvemonth clip skyline for the whole US population, aged 25-74years were summarized and reported. The deliberate norm discounted quality adjusted life anticipation ( QALE ) was 14.77 old ages and the entire life clip costs were approximately $ 195,000. Engagement in the intercessions per hebdomad improved the mean QALYs by 0.7 to 5.3. and these are tantamount to 0.014 to 0.102. ( i.e. 14.781-14.767 to 14.869-14.767 ) comparison to no intercession. Those participants in the enhanced entree intercession group by Linenger ( 1991 ) with the highest ( 0.102 ) and those in the community broad run survey by Young ( 1996 ) with the least addition ( 0.014 ) addition QALYs. The Participants of the societal support schemes intercession group, studied by Lombard ( 1995 ) had QALE of 14.79 old ages and a cost of $ 27,370 per QALY gained comparative to no intewrvention. In another inte rcession ; PA constituent of diabetes bar group ; â€Å" separately adapted wellness behaviour changed † studied by Knowler ( 2002 ) had a cost effectivity ratio of $ 46,910 when compared to no intercession. It was evident all the intercessions reduced diseases incidence and the decrease ranged from 5 to 15 instances per 100,000 for colorectal malignant neoplastic diseases ; 15 to 58 instances per 100,000 for chest malignant neoplastic disease ; 59 to 207 instances per 100,000 for type 2 diabetes and to every bit many as 140 – 476 instances per 100,000 for CHD. Ischemic stroke which is really much age related did non follow the same decrease tendency, likely due to increase in length of service by the intercessions. One interesting observation was that as the analytical clip skyline was shortened the higher the cost of QALY gets eg cost of QALY ( when the clip skyline reduced from 40-years to 10-years, in Lambard ‘s societal support intercession ) increased form $ 27,000 to $ 147,000. This literature reappraisal found illustrations of cost effectual analysis intercessions from assorted parts of the universe and they all seem to be based on either advice, behavior alterations, exercising or a combination of them. Evidence of cost effectivity in intercessions aimed at those whose merely hazard factor for unwellness was sedentary life style was missing. However, even though limited, there is more grounds for the cost effectivity of intercessions aimed at bad groups or those who manifest hapless wellness related to physical wellness. For a much better and a complete cost effectual analysis of publicities of PA intercessions to be achieved it is indispensable to near it from a social position ; e.g. is the intercession gratifying, is it making new friends, and is it bettering the mental and physical wellness of the people every bit good as their socioeconomic well-being. This becomes hard and more or less impossible due to miss of resources ; quantitative and qualitati ve informations and non plenty follow up clip is usually allotment.