Entrepreneurial Development Programme | Objectives, Phases & Importance

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Entrepreneurial Development Programme (EDP)

Contents :

  • Meaning and Definition of EDP.
  • Objectives of  EDPs.
  • Phases of EDPs.
  • Importance of EDPs.


What is EDP ?

Introduction :

Entrepreneurial Development Programme (EDP) refers to a programme which is formulated to assist the individuals in reinforcing their entrepreneurial motives, and attaining competencies and skills which is essential for performing an entrepreneurial role successfully.

Meaning and Definition of Entrepreneurial Development Programme (EDP) :


According to N. P. Singh :
“Entrepreneurship Development Programme is designed to help an individual in strengthening his entrepreneurial motive and in acquiring skills and capabilities necessary for playing his entrepreneurial role effectively. is necessary to promote this understanding of motives and their impact on entrepreneurial values and behavior for this purpose”.

EDP can also be defined as a pre-defined process that recognizes, inculcates, designs and refines the skills and proficiencies of an individual to establish his own enterprise. In recent times, EDP has become a professional task which extensively encourages the development of funded and private businesses. The programme is meant to grow entrepreneurial aptitudes among people.

Objectives of Entrepreneurial Development Programme (EDP) :


Following are the main objectives of EDPs :

  1. To make people learn compliance with law.
  2. To develop and fortify entrepreneurial quality, i.e., motivation or need for achievement.
  3. To develop small and medium scale enterprises in order to generate employment and widen the scope of industrial ownership.
  4. To industrialize rural and backward sections of the society.
  5. To understand the merits and demerits of becoming an entrepreneur.
  6. To investigate the environmental set-up relating to small industries and small businesses.
  7. To design project for manufacturing a product.
  8. To increase the supply of entrepreneurs for quick industrial development.
  9. To prepare individuals to accept the uncertainty involved in running a business.
  10. To develop managerial skills among small entrepreneurs for improving the performance of small-scale industries.
  11. To offer profitable employment opportunities to educated young men and women.
  12. To expand the sources of entrepreneurship.

Phases of Entrepreneurial Development Programme (EDP) :


All the EDPs mainly consist of three phases, which are illustrated as below:

1) Pre-Training Phase : 
This step can be considered as the introductory phase in which the entrepreneurship development programmes are launched. A wide spectrum of activities are performed in this phase arc described below :

i) Identification of suitable location where the operations can be initiated like a district.

ii) Selection of an individual as a course coordinator or project leader to coordinate the EDP activities.

iii) Organisation of basic infrastructural facilities related to the programme.

iv) Conducting the environmental scanning or industrial survey in order to look for better business opportunities.

v) Developing various plans associated with the programme, like :
a) Promotional activities by using electronic or print media, posters, leaflets, etc.
b) Contacting business experts, different agencies, NGOs that can become a part of the programme, directly or indirectly.
c) Printing the application forms and availing them in different locations with the instructions.
d) Establishing selection committee for screening of candidates.
e) Preparing budget and getting it approved from the management and arranging other activities which are related to the programme.
f) Arranging and deciding the need-based elements in the syllabus of training programme and to contact guest faculties for the training session.

vi) Looking for the assistance of various agencies such as DICs, banks, SISI, NSIC, DM and so on.

vii) Conducting industrial motivational campaigns to increase the number of applications.

2) Training Phase : 
The main function of any EDP is to impart training to future entrepreneurs and guiding them for establishing the enterprise. The normal duration of the entrepreneurship development programme is 4-6 weeks and it is usually a full time course. The objectives, training inputs and the centre of focus are explained in the programme design.
Commonly, it is considered that the trainees do not have enough information about the change because of which new programme is prepared. Each trainee should appraise himself at the termination of the training programme to have a clear view about his/her future endeavors.

Training Phase – Programme Design

Objectives

Focus

Inputs

Promoting and
sustaining the skills of entrepreneurship and building up the confidence.

Entrepreneur.

 

Behavioral inputs.

 

Helping in
establishing the new enterprise through decision-making.

Enterprise
establishment Creating enterprise.

 

Business
opportunity guidance, information and project planning inputs,
technical inputs. Guiding for enabling business opportunities. information and
project planning and technical opinions.

Successful and
profitable operation of enterprise. Industrial exposure Performing profitable
and successful operations, exposure various industrial
knowledge.

Enterprise
management, first-hand knowledge of factory layout, business sites, etc. Information
related to factory layout, plant location, organisation management and so on.

Management
inputs, plant visit/in-plant training Management suggestions industrial visit
or training.

 

 

3) Post-Training Phase : 
This phase is also referred as the phase of follow-up assistance. In this phase, the candidates who have completed their programme successfully are provided post-training assistance. This phase is very important as after the completion of training programme, most of the entrepreneurs face a lot of hardship in the business plan implementation. Thus, with the help of various counselling sessions, the training organisations try to extend their support to trainees. Members like State Financial Corporation, commercial banks, training institutions and District Industries Centre constituted all together to assist the entrepreneurs on the basis of mentioned goals :
  • To assist trainees in a meaningful manner so that trainees can realize their business plan.
  • To analyse the development made by trainees in the project implementation.
  • To evaluate the post-training approach.
  • To provide escort services to the trainees with the help of various promotional and financial institutions.

Commonly, these follow-up action meetings are conducted after every three years of training completion and the tools used for the follow-up are :
  • Postal questionnaires.
  • Telephonic follow-up.
  • Individual contact by the trainer.
  • Team meetings.

A number of government and private institutions are providing assistance in India to entrepreneurs. Some of them are listed below :
  • Small Industries Development Organisation (SIDO),
  • Commercial Banks,
  • National Alliance of Young Entrepreneurs (NAYE),
  • National Institute for Entrepreneurship and small Business Development (NIESBUD),
  • Entrepreneurship Development Institute of India (EDI),
  • India Investment Centre (LIC),
  • Small-scale industrial Development Bank Of India (SIDBI), and
  • Technical Consultancy Organisation (TCO).

Importance of Entrepreneurial Development Programme (EDP) :


The importance of EDP is as follows :

1) Formation of Employment Opportunities :
Entrepreneurial development programmes generate employment opportunities in the developing and under-developed countries. It assists and encourages individuals to establish their own business and enable them to become self-employed. By setting-up. several business enterprises, EDP also creates abundant job opportunities for other people.

2) Provides Adequate Capital : 
A large amount of capital is required to set-up a business enterprise. This financial assistance is provided by various EDP agencies. EDPs instruct the development banks such as ICICI, IDBI, IFCI, SIDCs, etc., to take initiative in promoting entrepreneurship.

3) Proper Utilization of Local Resources : 
New entrepreneurs utilize the available local resources in the most effective way. This utilization of resources plays an important role in the development of a particular area or region at minimum cost. EDPs .guide, educate and teach the entrepreneurs to exploit the local resources efficiently.

4) Increased Per Capital Income : 
Entrepreneurs have the ability to organize the factors of production and utilize them in the most productive manner by establishing an enterprise. This development leads to increased production, employment and wealth generation. As a result, overall productivity and per capital income of the economy is raised.

5) Improved Standard of Living : 
EDPs provide latest technologies and innovative methods to entrepreneurs which helps them to produce large quantity of products at lower cost. This also enables entrepreneurs to exploit the available resources and produce quality products. This automatically leads to improved standard of living.

6) Economic Independence : 
EDPs strengthen the entrepreneurs to produce variety of products in large quantities at competitive prices. It also helps an entrepreneur to develop substitutes of imported products which prevents the country from being dependent on other foreign countries. It also saves foreign exchange of the country.

7) Preventing Industrial Slums : 
Most of the developed industrial areas are facing problems related to industrial slums. This leads to over burdening of public amenities and also affects the health of people adversely. EDPs offers several subsidies, incentives, infrastructural support and financial grants to new entrepreneurs for establishing their businesses, thus, preventing the growth of industrial slums.

8) Reducing Social Tension :  
A majority of youngsters and educated individuals of the society are in the state of social unrest and tension. This social tension restricts them from finding the right direction in their careers. Most of the students feel frustrated about not getting a job after the completion of education. In such situations, EDPs helps people by providing them proper guidance, assistance, training and support for establishing new enterprises and businesses, As a consequence, social tension is reduced as they generate self-employment opportunities.

9) Facilitating Overall. Development : 
EDPs facilitate entrepreneurship which helps in the overall development of the society by producing new products, innovative services, low cost consumer goods, job opportunities, increasing the standard of living, and overall productivity. This facilitates in the overall development of the economy and the country.

Non Performing Assets | Meaning, Definition, Management & Norms for Assets Classification and Capital Adequacy

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What is Non Performing Assets (NPA) ? Meaning and Definition of Non Performing Assets (NPA) An asset is classified as non-performing asset (NPA) if dues in the form of principal and interest are not paid by the borrower for a period of 180 days. However with effect from March 2004, default status would be given to … Read more

Strategic Business Units (SBU) ? | Meaning, Need, Characteristics, Advantages & Disadvantages

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Strategic Business Units

Contents :

  1. Concept of Strategic Business Units (SBU’s).
  2. Need and Characteristics of Strategic Business Units.
  3. Identifying and Dimensions of Strategic Business Units.
  4. Strategic Business Units Linkages with Enterprise Performance Management.
  5. Advantages and Disadvantages of Strategic Business Units.

What is Strategic Business Units (SBU’s) ?


A Strategic Business Unit (SBU) is an operating division of firm which serves a distinct product-market segment or a well-defined set of customers or a geographic area. The SBU is given the authority to make its own strategic decisions within corporate guidelines as long as it meets corporate objectives.

Strategic Business Unit or SBU is understood as a business unit within the overall corporate identity which is distinguishable from other business because it serves a defined external market where management can conduct strategic planning in relation to products and markets. The unique small business unit benefits that a firm aggressively promotes in a consistent manner. When companies become really large, they are best thought of as being composed of a number of businesses (or SBUs).

Need of SBU 


Following are the needs of SBUs :

1) To ensure that each product or product line of the hundreds offered by the company would receive the same attention as if it were developed, produced and marketed by an independent company.

2) To provide assurance that a product will not get lost among other products (usually those with larger sales & profits) in a large company.

3) SBU’s makes the organization in organized form. The first principle of time management is to get organized. Similarly, one of the first things an owner got to do is to see his organization clearly.

4) To ensure that a certain product or product line is promoted and handled as though it were an independent business.

5) Dividing products into SBU’s helps you stay in touch of the market separately for each and every product. Thus a marketing manager/sales manager may be assigned one product at a time and will be responsible for that product itself. Thereby he may give valuable contribution in maintaining the STP of a product in the target market.

6) SBUs propagates the correct decision making. The decisions can be at the micro level (managing STP, strategies) or it can be at the macro level (investments from the corporate fund, whether to continue investing?).

7) By micro managing each and every product and dividing it into SBU’s, an owner can obtain a holistic view of the organization. This view is also used in preparing the financial statements as well as to keep tabs on the investments and returns for the organization from each SBU. Thus the overall profitability of the firm can be decided.

8) The best reference for investments in SBU’s can be the BCG matrix. In the BCG matrix, the SBU’s are divided as per their market share and the market growth rate. Thus depending on the BCG matrix, the type of investments which each product needs can be decided. This is possible only if each product is treated as a completely different SBU. This SBU may be a composition of one category of product (such as shampoo) or in case of larger organizations it may even be one single type of product (such as LED or LCD televisions).

9) Naturally once the organization is organized, the management can micro manage things. For example, large companies like HUL and P&G (the best examples of multi product organizations) have at least 30 different products at all times. Each of them requiring separate manpower, strategies, expenses and returns. Thus this needs micro managing of the highest aspect. Micro managing helps the management to focus on each and every product separately.

Social Audit | Objectives, Features, Advantages & Disadvantage

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Social Audit

Contents :

  1. Meaning of Social Audit.
  2. Features of Social Audit.
  3. Objectives of Social Audit.
  4. Purpose and Steps of Social Audit.
  5. Advantages and Disadvantages of Social Audit.
  6. Rights and Duties of the Auditor in Social Audit.


What is Social Audit ?


Social Audit is a tool with which government departments can plan, manage and measure non financial activities and monitor both internal and external consequences of the department/organisations social and commercial operations.

The process of evaluating a firm’s various operations procedures, code of conduct and other factors to determine its effect on a society. The goal is to identify what, if any, actions of the firm have impacted the society in some way. A social audit may be initiated by a firm that is seeking to improve its cohesiveness or improve its image within the society. If the results are positive, they may be released to the public. 
For example, if a factory is believed to have a negative impact, the company may have a social audit conducted to identify actions that actually benefit the society.

“Social audit is a process in which people work with the government to monitor the planning and implementation of the policies/programme which are intended for the beneficiaries (people)”.

It is also defined as an in-depth scrutiny and analysis of the working of any public utility vis a vis (in relation to) its social relevance.

The underlying ideas of a Social Audit are directly linked to the concept of democracy and participation. In Social Audit, it examines the impact of specific governmental activities on certain sections of the society within are in contact with government agencies. It is an important tool in the Management of National Affairs.

Features of Social Audit :


The foremost principle of social audit is to achieve continuously improved performances in relation to the chosen social objectives. Eight specific key principles have been identified from social auditing practices around the world. They are as follows :

1) Multi-Perspective/Polygonal : 
Aims to reflect the views (voices) of all those people (stakeholders) involved with or affected by the organisation / department / programme.

2) Comprehensive : 
Aims to (eventually) report on all aspects of the organisation’s work and performance.

3) Participatory :
Encourages participation of stakeholders and sharing of their values.

4) Multi-Directional :
Stakeholders share and give feedback on multiple aspects.

5) Regular : 
Aims to produce social accounts on a regular basis so that the concept and practice become embedded in the culture of the organisation covering all the activities.

6) Comparative :
Provides a means, whereby, the organisation can compare its own performance each year and against appropriate external norms or benchmarks and provide for comparisons with organisations doing similar work and reporting in similar fashion.

7) Verification :
Ensures that the social accounts are audited by a suitably experienced person or agency with no vested interest in the organisation.

8) Disclosure : 
Ensures that the audited accounts are disclosed to stakeholders and the wider community in the interests of accountability and transparency.

Malcolm Baldrige National Quality Award (MBNQA)? | Criteria & Framework

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MBNQA


MALCOLM BALDRIGE FRAMEWORK (MBNQA)


Contents :
  1. Introduction of Malcolm Baldrige National Quality Award (MBNQA).
  2. Framework of Malcolm Baldrige National Quality Award (MBNQA).
  3. Features and Criteria of Malcolm Baldrige National Quality Award (MBNQA).
  4. Advantages and Disadvantages of Malcolm Baldrige National Quality Award (MBNQA).

What is MBNQA  ?


The Malcolm Baldrige Award was established in 1987 and became Public Law 100-107. It was named after the late Secretary of Commerce Malcolm Baldrige, who was an advocate of quality. The American Society for Quality administers the award, ASQ is under contract to the National Institute of Standards and Technology (NIST), which is responsible for the continuation and management of the award.

The Malcolm Baldrige National Quality Award Recognizes U.S. Organisations in :
  • Manufacturing.
  • Service company.
  • Small business.
  • Education.
  • Healthcare.
  • Non-profit organisations (NG0).
The Baldrige Award is the only formal recognition of the performance excellence of both public and private U.S. organisations given by the President of the United States. It is administered by the Baldrige Performance Excellence Program, which is based at and managed by the National Institute of Standards and Technology, an agency of the U.S. Department of Commerce. Up to 18 awards may be given annually across six eligibility categories manufacturing, service, small business, education, healthcare, and non-profit. AS of 2010, 91 organisations had received the award.

Although the Baldrige Award is not as rigorous or as all-inclusive as the recommended approaches of Deming and Juran, it still is consistent with these approaches in the following areas :
  • Prevention versus detection.
  • Meeting customer requirements 
  • Using statistics for process and product quality.
  • Process analysis and improvement.
  • Implementing a systematic approach to improvement.

The award promotes awareness of performance excellence as an increasingly important element in competitiveness. It also promotes the sharing of successful performance strategies and the benefits derived from using these strategies. To receive a Baldrige Award, an organisation must have a role-model organisational management system that ensures continuous improvement in delivering products and/or services, demonstrates efficient and effective operations, and provides a way of engaging and responding to customers, and other stakeholders. The award is not given for specific products or services.


What is Performance Management? | Process, Feature, Need, Advantages & Disadvantages

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Performance Management

Contents :

  1. Concept Performance Management.
  2. Meaning and Definition of Performance Management.
  3. Need of Performance Management.
  4. Features of Performance Management.
  5. Principles of Performance Management.
  6. Process of Performance Management.
  7. Advantages of Performance Management.
  8. Disadvantages of Performance Management.
  9. Linkages with Strategic Planning, Management Control and Operational Control.


What is Performance Management ?


The term ‘Performance Management‘ first came into wide use in the HR field in the early 1990s. Although objective setting, assessment and review, and performance-related pay were becoming common prior to that period, it was not until the late 1980s that organizations started to be concerned with the management of individual performance in a holistic way. 

Even when the Institute of Personnel Management first carried out research in the area in 1992 there was confusion over what the term ‘performance management’ actually meant. For some it was an appraisal process, for others performance-related pay, and yet others defined it in terms of training and development. By the time of our second survey in 1997 there was much more agreement about what the term ‘performance management’ meant, with a distinct polarization between those who thought it focused on pay and those who believed it was development-led.


It is now commonly agreed that performance management as a natural process of management contributes to the effective management of individuals and teams to achieve high levels of organizational performance. As such, it establishes shared understanding about which is to be achieved and an approach to leading and developing people which will ensure that it is achieved.


What is performance management system ?


Performance management is an ongoing, continuous process of communicating and clarifying job responsibilities, priorities and performance expectations in order to ensure mutual understanding between supervisor and employee. It is a Hold performance philosophy which values and encourages employee development through a style of management which provides frequent feedback and fosters teamwork. It emphasizes communication and focuses on adding value of the organisation by promoting improved job performance and encouraging skill development. Performance management involves clarifying the job duties, defining performance standards, and documenting, evaluating and discussing performance with each employee.


Meaning and Definition of Performance Management :


Performance management can be defined as a process or set of processes for establishing shared understanding about what is to be achieved and of managing and developing people in a way which increases the probability that it will be achieved in the short and longer term.

Definition of performance management by different authors :

According to Armstrong :
“Performance Management means of getting better results by understanding and managing performance within an agreed framework of planned goals, standards and competence requirements. It is a process to establish a shared understanding about what is to be achieved, and an approach to managing and developing people So that it will be achieved.”

According to Armstrong and Baron :
“Performance management is both a strategic and an integrated approach to delivering successful results in organisations by improving the performance and developing the capabilities of teams and individuals”.

Thus, Performance Management is :
  1. A systematic approach to improving individual and team performance in order to achieve organizational goals.
  2. The development of individuals with competence and commitment, working towards the achievement of shared meaningful objectives within an organization that supports and encourages their achievement.
  3. Performance management is managing the business.
  4. Directing and supporting employees to work as effectively and efficiently as possible in line with the needs of the organization.


Need of Performance Management :


The need of performance management is as follows :
  1. To enable the employees towards achievement of superior standards of work performance.
  2. To help the employees in identifying the knowledge and skills required for performing the job efficiently as this would drive their focus towards performing the right task in the right way.
  3. Boosting the performance of the employees by encouraging employee empowerment, motivation and implementation of an effective reward mechanism.
  4. Promoting a two-way system of communication between the supervisors and the employees for clarifying expectations about the roles and accountabilities, communicating the functional and organisational goals providing a regular and a transparent feedback for improving employee performance and continuous coaching.
  5. Identifying the barriers to effective performance and resolving those barriers through constant monitoring, coaching and development interventions.
  6. Creating a basis for several administrative decisions strategic planning, succession planning, promotions and performance-based payment.
  7. Promoting personal growth and advancement in the career of the employees by helping them in acquiring the desired knowledge and skills.


Features of Performance Management :


Following are the Features of performance management :
  1. Performance management is closely aligned with the organizational context and culture without being influenced by passing fads and strategically linked to clearly defined to organizational objectives.
  2. Performance management systems are closely linked to other systems of human resource management, particularly career planning, succession planning and training and development.
  3. Performance management is seen as a continuous process of monitoring and feedback rather than annual one off event and there should be involvement of employees through focus group interviews.
  4. Performance management involve effective use of technology in conveying desired competencies and in monitoring, collecting and giving feedback so there is minimum possible bureaucratization of administering the system.
  5. Performance management emphasizes comprehensive training to managers.
  6. Performance management is a dynamic system.


Principles of Performance Management :


Egan proposes the following guiding principles for performance management : 
Most employees want direction, freedom to get their work done and encouragement, not control. The performance management system should be a control system only by exception. The solution is to make it a collaborative development system in two ways. First, the entire performance management process – coaching, counseling, feedback, tracking, recognition, and so forth – should encourage development. Ideally, team members grow and develop through these interactions. Second, when managers and team members ask what they need to be able to do bigger and better things, they move to strategic development.

The principles of performance management have also been well summarized by Incomes Data Services :
  1. It translates corporate goals into individual, team, department and divisional goals.
  2. It helps to clarify corporate goals.
  3. It is a continuous and evolutionary process, in which performance improves over time.
  4. It relies on consensus and co-operation rather than control or coercion.
  5. It creates a shared understanding of what is required to improve performance and how it will be achieved.
  6. It encourages self-management of individual performance.
  7. It requires a management style that is open and honest and encourages two way communication between superiors and subordinates.
  8. It requires continuous feedback.
  9. Feedback loops enable the experiences and knowledge gained on the job by individuals to modify corporate objectives.
  10. It measures and assesses all performance against jointly agreed goals.
  11. It should apply to all staff.
  12. It is not primarily concerned with linking performance to financial reward.

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What is Deposit ? – Types, Features, Advantages of Deposit A/C

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Contents : Meaning and Features of Deposits. Types of Deposit Account. Advantages and Features of Saving Deposit Account. Advantages and Features of Current Deposit Account. Advantages and Features of Fixed Deposit Account. Advantages and Features of Recurring Deposit Account. Advantages and Features of Non-Resident Indians Account. Difference Between Current Account and Savings Account. What is Deposits … Read more

Markov Chain Analysis | Properties, Assumptions, Classification & State Transition Matrix

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What is Markov Chain Analysis ? Markov Analysis is a way of analyzing the current movement of some variable in an effort to forecast its future movement. As a management tool, Markov analysis has been used during the last several years, mainly as a marketing aid for examining and predicting the behavior of customers from the standpoint … Read more

Simulation – Types, Benefits, Limitations, Models, Phases

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Simulation


What is Simulation ? 


Meaning and Definition of Simulation :

A simulated model may be defined as one which depicts the working of a large scale system of man, machines, materials and information operating over a period of time in a simulated environment of the real world conditions.
Simulation is a numerical solution method that seeks optimal alternatives (strategies) through a trial and error process. The simulation approach can be used too study almost any problem that involves uncertainty, i.e., one or more decision variables can be represented a probability distribution, like decision making under risk.

According to Shannon :
“Simulation is the process of designing a model of a real system and conducting experiments with this model for the purpose of understanding the behavior (with the limits imposed by a criterion or set of criteria) for the operation of the system”.

According to Levin & Kirk Patrick :
“Simulation is an appropriate substitute for mathematical evaluation of a model in many situations. Although it too involves assumptions, they are manageable. The use of simulation enables us to provide insights into certain management problem where mathematical evaluation of a model is not possible.”


Contents :                               

  1. Meaning and Definition of Simulation.
  2. Scope of Simulation Techniques.
  3. Phases of Simulation.
  4. Application of Simulation.
  5. Types of Simulation.
  6. Models of Simulation.
  7. Benefits of Simulation.
  8. Limitations of Simulation.
  9. Monte Carlo Simulation Procedure.
  10. Random Digits and Methods of Generating Probability Distribution : Example.


Scope of Simulation Techniques :


Scope of Simulation in different area is as follows :

1) Healthcare (Clinical) Simulators : 
Medical health simulators are developed and deployed to teach healing and diagnostic procedures. It is also used to teach medical concepts and decision making to personnel who are involved in the professions.

2) Computer Simulators : 
Simulators have been proposed as an ideal tool for assessment of students for clinical skills. Programmed patients and simulated clinical situations, including mock disaster drills, have been used extensively for education and evaluation. These “lifelike” simulations are expensive, and lack reproducibility. A fully functional “3Pi” simulator would be the most specific tool available for teaching and measurement of clinical skills. Such a simulator meets the goals of an objective and standardized examination for clinical competence. This system is superior to examinations that use “standard patients because it permits the quantitative measurement or competence, as well as reproducing the same objective findings.

3) Military Simulations : 
Military simulations are e models in which theories of warfare can be tested and advanced without the need for actual hostilities. It is also known as war games. They exist in different forms with various degree of realism.

4) Finance Simulations :
In financing computer simulation are often used for scenario planning.

5) Flight Simulators : 
A flight simulator is used for the training of the pilots on the ground. A pilot gets permission by this technique to crash his simulated “aircraft” without being hurt. Pilots are trained with the use of flight simulators to operate aircraft in extremely dangerous situations, such as landing with no engines, or complete electrical or hydraulic failures. High-fidelity visual systems and hydraulic motion systems are included in most advanced simulators. The simulator is normally cheaper to operate than a real trainer aircraft.

6) Engineering, Technology or Process Simulation :
Simulation is an important feature in engineering systems or any system that involves many processes, For example, in electrical engineering, delay lines may be used to simulate propagation delay and phase shift caused by an actual transmission line. Similarly, dummy loads may be used to simulate impedance without simulating propagation, and is used in situations where propagation is unwanted. A simulator may imitate only a few of the operations and functions of the unit it simulates.

Phases of Simulation :


Step 1: Identify the Problem : 
If an inventory system is being simulated, then the problem may concern the determination of the size of order (number of units to be ordered) when inventory level falls up to recorder level (point).

Step 2 : i) Identify the Decision Variables
ii) Decide the Performance Criterion (Objective) & Decision Rules
For example, demand (consumption rate), lead time and safety stock are identified as decision variables in inventory problem. These variables shall be liable to measure the performance of the system in terms of total inventory cost under the decision rule – when to order.

Step 3 : Construct a Numerical Model : 
Construct a model which is possible to be analysed on the computer. Sometimes the model is written in a specific simulation language which is suitable for the given problem under analysis.

Step 4 : Validate the Model :
It is ensuring that the model should be representing the system truly which is analysed and the result will be reliable.

Step 5 : Design the Experiments : 
Design the experiments with the, help of simulation model by listing particular values of variables to be tested (i.e. list of courses of action for testing) at each trial (run).

Step 6 : Run Simulation Model : 
For obtaining the results in the form of operating characteristics run the model on the computer.

Step 7 : Examine the Results in Terms of Problem Solution : 
Results are examined as well as their reliability and correctness. Best course of action is selected after completing the simulation process otherwise desired changes are done in model decision variables parameters or design, and return to step 3.

Network Analysis – Objectives,Techniques, Drawing Network

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Contents :

  1. Concept of Network Analysis.
  2. Objectives of Network Analysis.
  3. Advantages of Network Analysis.
  4. Disadvantages of Network Analysis.
  5. Techniques for Network Analysis.
  6. Networking Components.
  7. Precedence Relationship.
  8. AOA and AON Approaches for Several Commonly Encountered Activity Relationship.
  9. Drawing Network.
  10. Rules for Drawing Network Diagram.
  11. Common Errors and Dummies in Network.

What is Network Analysis ?


project network for reliable construction co. project
Graphic representation of a project’s operations is called a network. It is the combination of activities and events which are require to reach the end objective of a project.
Various activities are performed at the same time and there are various activities which can be started only at the completion of other activities in a big project. The main work for detailed study of the product is to determine the information about the project and then discover a new, better and quicker way to get the work done. Thus thorough study of project is done through some suitable diagram which shows various activities and their positions in the project. It is also helpful to know that in what way the delay in any activity can affect the whole project in terms of time and money. A number of nodes (typically shown as small circles or rectangles) and a number of arcs (shown as arrows) that connect two different nodes exist in a project network (figure).
Network analysis involves a group of techniques which are used for presenting information about the time and resources involved in the project so as to assist in the planning, scheduling and controlling of the project. The information usually represented by a network includes the sequences, interdependencies, interrelationships and critical activity of various activities of the project.


Objectives of Network Analysis :


1) Minimize Production Delay, Interruptions and Conflicts : 
This is achieved by identifying all activities involved in the project, their precedence constraints, etc.

2) Minimization of Total Project Cost : 
After calculating the total cost of the project the next step is to minimize the total cost. It is done through the calculation of cost of delay in the completion of an activity of the project and calculating the cost of the resources which are required to complete the project in a given time period.

3) Trade-off between Time and Cost of Project : 
The duration of same activity can be reduced if additional sources are employed and this is the main idea on which the trade-off between time and cost of project is based. Due to technical reasons, the duration can be reduced in a specific limit. Similarly, there is also a most cost efficient duration called ‘normal point’ stretching the activity beyond it may lead to a rise in direct cost.

4) Minimization of Total Project Duration : 
After checking the actual performance against the plan the project duration can be controlled and minimized. If any major difference is found then apply the necessary reschedule process by updating and revising the uncompleted portion of the project.

5) Minimization of Idle Resources : 
If there is any variation in the use of scars resources then it can disturb the entire plan and hence it is required that efforts should be made to avoid any increase in cost due to idle resources.

Advantages of Network Analysis :


  1. For planning, scheduling and controlling of operations in large and complicated projects network analysis is very important and powerful tool.
  2. For evaluating the performance level of actual performance in comparison to planned target network analysis is a very useful tool.
  3. With the use of network analysis technological interdependence of different activities can be determined for proper integration and co-ordination of various operations.
  4. Network analysis gives the proper co-ordination and communication between various parts of the project.
  5. Network analysis deals with the time-cost trade-off and provides the optimum schedule of the project.
  6. This technique is very simple and suitable for the computer users.


Disadvantages of Network Analysis :


  1. Network construction of complex project is very difficult and time consuming in network analysis.
  2. Actual time estimation of various activities is a difficult exercise.
  3. Analysis of the project is a very difficult work because a number of resource constraints exist in the project.
  4. In many situations time-cost trade off procedure is complicated.