November 30, 2011

Management Theory Review - Bilbliography

A Review of Leadership Theory and Competence Framework
http://centres.exeter.ac.uk/cls/documents/mgmt_standards.pdf


C
Competitiveness Theory
Momaya
http://una.co.in/downloads/Competitiveness%20fo%20Firms-%20Review%20of%20Theory,%20fw%20-%20Singapore%20Management%20Review%20Paper-%20Dr.%20Ajitabh.pdf

F

Four ManagmentTheories
http://www.kernsanalysis.com/sjsu/ise250/history.htm

S
Strategic Issue Managment - Theory Review
https://wiki.aalto.fi/download/attachments/7176236/Strategic_Issue_Management_Theory_review_Kunnas.pdf?version=1&modificationDate=1226694674000

Engineering Economy or Engineering Economics: Economic Decision Making by Engineers


Engineering Economy: An Explanation

An engineering economy study involves technical considerations and it is a comparison between technical alternatives in which the differences between the alternatives are expressed so far as practicable in money terms (Grant and Ireson, 1960).
Every engineerng decision must be subjected to the question "Will it pay?"
The late General John J.Carty, Chief Engineer of the New York Telephone Company, had asked three questions for every engineering proposal that came to him for review.

1. Why do this at all?
2. Why do it now?
3. Why do it this way?

The first question makes an enquiry regarding profit. In business you do a thing because it is profitable to do so.
The second asks whether the person proposing the investment or expenditure has considered the time alternatives. Can we postpone the investment/expenditure and make more profit?
The third question forces the concerned person to consider all other alternatives to the issue at hand and certify that the solution proposed is the most profitable proposal.

Thus General John Carty made sure that engineering economy studies were done by his technical departments.

 

Economic Decision Making

 
Every dollar an executive proposes to spend or proposes not to spend has to be subjected to economic decision making. If an executive decides to keep a machine in service even though it has frequent breakdowns, giving more number of defective items and consuming more energy, he is making an economic decision. A decision to do nothing is a decision to continue the present production equipment or the system and to reject all alternatives, those which were known and those which were not searched for if he has not searched for them.

Most executives agree that the decision to invest Rs. 5,00,000 for the purchase of a new machine is a typical example of an economic decision. But they do not consider their choice not replacing a machine as an economic decision.

Executives are Unprepared for Economic Decision Making


George A. Taylor in his text book, Managerial and Engineering Economy emphasizes that executives are unprepared for their responsibility in generating and examining alternatives by economic criteria. Most of the executives seldom justify their actions and the resulting expenditure by adequate economic criteria. Too many executives do not a feel a true responsibility for the costs they create or the costs they protect by maintaining the status quo. A designer may take it granted that he has the privilege of creating any cost that may result from is design. He feels costs are the responsibility of the company or somebody else in the company. Proper reflection will make him conclude that costs that result from design are in his sphere of management and hence are his responsibility, because he and not somebody else selected the proposed design from all the possible alternative designs.

If an executive disregards the economic effects of a decision, he is disregarding the cost commitments that will result from his decision.
 

Engineering Efficiency Versus Financial Efficiency

In 1923, O.B. Goldman, who wrote the book, Financial Engineering,  said that the primary duty of the engineer is to consider costs in order to obtain real economy – to get the most power, for example, not from the least number of pounds of steam, but from the least possible number of dollars and cents: to get the best financial efficiency.”
 
The goal of equipment selection in a business system is acceptable financial efficiency, not engineering efficiency.

Searching for  Low Engineering Efficiency Alternatives


If the final choice is based on financial efficiency alone, the search for alternatives must be conducted on either side of current engineering efficiency. Search for higher financial efficiency is not necessarily a search for higher engineering efficiency.

Cost Reduction Expenditures and Income Expansion Expenditures

 Expenditure and Investment proposals can be for cost reduction or income expansion. In some cases, both may be realized.  A characteristic of cost reduction expenditure is that the decision does not affect the gross income. A decision in which the gross income increases is an income expansion proposal. For both the proposals, economic decision making is essential.  

Rate of Return on Capital (Finance)


Finance is the money resources of a business organization. Money resources of an organization consist of equity capital contributed by owners of the firm and loans (short-term as well as long-term) given by various  banks, other firms and individuals. All the entities who provide finance to a firm expect to get back the principal and additional return on principal. The business operations of a firm need have the ability to generate that return or more than that return to acquire capital or finance in the first place and then generate the return to satisfy the expectations afterward. This idea gives rise to cost of capital.
 

Cost of Capital


The user of capital must satisfy the profit motive of the supplier of capital. This obligation of the user of capital is termed as the cost for using capital or cost of capital. Hence all expenditure proposals need to include an evaluation mechanism that considers the cost of capital for the capital required to implement the proposal.

Profit: Accounting and Economics Viewpoints


Profits are measured by accountants. But they are evaluated by economists, engineering economists and financial executives.

The accountant computes profit earned during past periods after incomes and expenses are known. The accountant subtracts expenses from revenue to find the profit on the owner’s investment.
 
The economy analyst or engineering economy analyst tests the profitability of a proposed operation.

Engineering Economy Study

The process of engineering economy study will include data gathering and data analysis.
Analysis requires analytical methods and Engineering Economy texts mainly concentrated on analytical techniques. The analytical techniques express the alternatives in comparable measures of money with respect to their cost, revenue or return on capital.

Data gathering will include some current estimates made by engineers by combining the technical information and costs/prices relevant to the materials and processes used to provide goods or services. The data gathering effort cannot be a one time effort and systems are to be put in place to record appropriate data as and when it first appears. For this purpose accounting sections or departments (financial, cost and management accounting) and technical departments have to jointly work out the need for future engineering economy studies and instal appropriate recording systems.

Is There a Need for Engineer to Involve Themselves in Financial Calculations?

While the financial calculations that necessarily follow the engineers designs and technical estimates are in no sense an exclusive engineering function. Such calculations can be done by persons with accounting background and business administrators.

However, these calculations are such a necessary part of the numerous choices between technical alternatives that every engineer has to do as a part of his design function or process that an engineer who is not equipped to make them is a  poor choice for the job. A deficiency in this matter is particularly serious in an engineer who has administrative responsibility for technnical matters (Grant and Ireson, 1960).
 

References

 
George A. Taylor, Managerial and Engineering Economy, Van Nostrand Reinhold Company, New York, 1964.
Grant, Eugene, L., and W. Grant Ireson, Principles of Engineering Economy, 4th Ed., The Ronald Press Company, 1960, P.3.
___________________________________________________________________________________________

Engineering Economics is an Efficiency Improvement Tool for Industrial Engineers

Engineering Economic Appraisal - A Special Role for Industrial Engineers


Engineering economic analysis is to be carried out by all engineers. These analysis reports must be appraised by IE department engineers. IEs can evaluate whether sufficient technical alternatives were considered in proposing the technical solution now recommended and then check the data and calculations of the economic analysis. From IE department, the proposal can go the project appraisal committee.

Engineering Economics is part of Industrial Engineering Tool Kit

Industrial Engineering Tool Kit

________________________________________________________________________

Engineering Economics - Knol Book by Narayana Rao

Related Articles






Bibliography

A NEW FRAMEWORK FOR ENGINEERING ECONOMICS
Environmental Engineering Economics Program
Optimal Response to Periodic Shortage: Engineering/Economic Analysis for a Large Urban Water District
Anthony C. Fisher, University of California, Berkeley and Giannini Foundation, David Fullerton, Nile Hatch, Peter Reinelt
Software Engineering Economics

Recently Published Books

Principles of Engineering Economic Analysis, 5th Edition
White, Case, Pratt
ISBN 978-0-470-11396-7, © 2010
Management of Knols are Narayana Rao are being consolidated in
Originally posted in Knol
http://knol.google.com/k/engineering-economy-or-engineering-economics-economic-decision-making-by

Updated on 2 December 2012

Introduction to Engineering Economics

Engineering Economics Revision Article Series

Engineers must decide if the benefits of a project exceed its costs, and must make this comparison in a unified framework. The framework within which to make this comparison is the field of engineering economics, which strives to answer exactly these questions, and perhaps more.

It seems peculiar and indeed very unfortunate that so many authors in their engineering books give no, or very little consideration to costs, in spite of the fact that the primary duty of the engineernig is to consider costs in order to obtain real economy- to get the most possible number of dollars and cents: to get the best financial efficiency.

O.B. Goldman, Financial Planning, John Wiley & Sons, New York, 1920.

It would be well if engineering were less generally thought of, and even defined, as the art of constructing. In a certain important sense it is rather the art of not constructing; or, to define it rudely but not ineptly, it is the art of doing that well with one dollar which any bungler can do with two after a fashion.

A.M. Wellington, The Economic Theory of the Location of Railways, John Wiley, New York, 1887

The subject confines of engineering economy were staked out in 1930 by Eugene L. Grant in his book 'Principles of Engineering Economy".

WHY DO ENGINEERS NEED TO LEARN ABOUT ECONOMICS?

Ages ago, the most significant barriers to engineers were technological. The things that engineers wanted to do, they simply did not yet know how to do, or hadn't yet developed the tools to do. There are certainly many more challenges like this which face present-day engineers.

But now, natural resources (from which we must build things) are becoming more scarce and more expensive. We are much more aware of negative side-effects of engineering innovations (such as air pollution from automobiles) than ever before.

For these reasons, engineers are asked more and more to place their project ideas within the larger framework of the environment within a specific planet, country, or region. Engineers must ask themselves if a particular project will offer some net benefit to the people who will be affected by the project, after considering its inherent benefits, plus any negative side-effects (externalities), plus the cost of consuming natural resources, both in the price that must be paid for them and the realization that once they are used for that project, they will no longer be available for any other project(s).

Simply put, engineers must decide if the benefits of a project exceed its costs, and must make this comparison in a unified framework. The framework within which to make this comparison is the field of engineering economics, which strives to answer exactly these questions, and perhaps more.



The Accreditation Board for Engineering and Technology (ABET) states that engineering "is the profession in which a knowledge of the mathematical and natural sciences gained by study, experience, and practice is applied with judgment to develop ways to utilize, economically, the materials and forces of nature for the benefit of mankind".

http://www.isr.umd.edu/~austin/ence202.d/economics.html



Engineering Economics, 4th Edition, James L. Riggs, David D. Bedworth, and Sabah U. Randhawa
McGraw Hill, New York, 1996


MIT Open Courseware
ESD.70J / 1.145J Engineering Economy Module, Fall 2008, Excel based course
http://ocw.mit.edu/OcwWeb/Engineering-Systems-Division/ESD-70JFall-2008/CourseHome/index.htm

A NEW FRAMEWORK FOR ENGINEERING ECONOMICS
Basic Engineering Economics - a PDH Online Course for Engineers

Article Originally posted in
http://knol.google.com/k/narayana-rao/introduction-to-engineering-economics/2utb2lsm2k7a/248

Engineering Economics or Economy - Typical Problems

1. Repairs to a factory roof can be made today for $4,000. If repairs are postponed, it will have to be replaced in 3 years for $6,000. Both the repaired roof and new roof will have similar technical life and last long. If the company's minimum required rate of return is 30%, should the repairs be made?

Sppwf (32%, 3 years) = 0.435


2. By spending $30,000 for a conveyor, a factory expects to save $6,000 a year for the next 7 years in the cost of handling material. The conveyor belt will have zero salvage value at that end of 7 years. If the cost of capital for the project is 18%, should the company invest in this project?

Uspwf(18%,7 years) = 3.812


3. A company can overhaul a machine now for $2000. It can wait unit the end of the year also. But during the year it will suffer a cost $400 due to idle labor. If the cost of capital is 20%, what is the right decision?

Spfwf(20%,1year) = 1.2


4. A machine needs to be maintained at a cost of $500 at the end of the year, and this cost is expected to increase by $50 a year over its 10 years further life. A overhaul of the machine costs $2000$ and this will reduce the maintenace expenditure to $100 per year. Should the company go for the overhaul if its minimum rate of return required is 20%?

Uspwf (20%,10 years) = 4.193


5. A company can purchase a new special-purpose lathe for $7,500 installed cost. The annual cost of running this machine that includes labor, power, and maintenance, is $2,500. The other alternative is a general purpose machine that can be installed for $4,500 and the anual cost is $3,250 a year. The life of both the machines is expected to be 10 years and the salvage values are expected to be $750 and $500. If the company's minimum required rate of return is 15%, which machine should be recommended?

Sppwf (15%,10years) = 0.247; Uspwf (15%,10 years) = 5.019


Originally posted in
http://knol.google.com/k/narayana-rao/engineering-economics-or-economy/2utb2lsm2k7a/713

Time Value of Money

Engineering Economics Revision Article Series

This topic explains the various concepts used to calculate future values or present values of a series of cash flows that result from engineering decisions to buy new equipment or replace old equipments.

Introduction


In one has money in his hand, he can invest it in a bank deposit and after one year he gets back his principal amount and in addition some interest. Therefore $1 today, deposited in a bank at 3% interest per annum will become $1.03 after one year. This is the concept of time value of money. Over time, money increases due to accumlulation of interest. Compound interest formula A = P(1 +i)n represents the future value of money.
P = A (1+i)-n represents the present value of money received after n years.
 
This topic explains the various concepts used to calculate future values or present values of a series of cash flows that result from engineering decisions to buy new equipment or replace old equipments.
 
Time Value can be present value of a series of future cash flows or future value of  series of future cash flows.
 

Single Payment Cashflow 

 
For a single payment now made, one can calculate a future value. This is done by compounding using the formula  A = P(1 +i)n
 
For a payment to be received in the future, one can calculate the present value. This is done by using discounting formula P = A (1+i)-n
 

Uniform Periodic Payments

 
For uniform periodic payments, one can calculate the present value or future value. The payments are assumed to be made at the end of period.
 
Compounding of uniform series of cash payments
 
S = R [(1+i)n - 1]/i
 
where S = Compound amount or future amount at the end of n periods
R = Periodic cash payment at the end of the period
i = rate of interest or required rate of return
n = number of periods for payments are made
 

 

Discounting of uniform series of cash payments

 

P = R [(1+i)n - 1]/[i 1+i)n ]

Where

P = Present Value

R = Uniform series of periodic payments

i = interest rate

n = number of periods of payments

These time value formulas are expressed in factors

A = P*Single payment future worth factor  =P*Spfwf

P = A* Single payment present worth factor = A*Sppwf

S = R* Uniform series future worth factor = R*Usfwf

P = R*Unform series present worth factor = R*Uspwf

 

Two More Factors

 

Sinking Fund Deposit Factor

Sfdf = 1/Usfwf

Sinking fund is fund accumulated with periodic payments for incurring a lumpsum expenditure at the end of a long period. Sfdf gives the amount to be deposited at the end of each period for n period to accumulate one dollar at the end n periods.

Capital Recovery Factor

Crf = 1/Uspwf

Capital recovery factor gives the uniform payment to be received by you at the end period of n years to get recover back the investment you made today.

 The factor tables are available and factors depend on interest rate i and term n.

Factors for a required rate of return of 10% and 5 years term.

 

Spfwf - 1.6105

Sppwf - .62092

Usfwf - 6.1051

Uspwf - 3.7908

Sfdf - 0.16380

Crf -  0.26380

 

References

Engineering Economics, 4th Edition, James L. Riggs, David D. Bedworth, and Sabah U. Randhawa, McGraw Hill, New York, 1996

 

 

Visit http://nraomtr.blogspot.com/  for Management Knols of Narayana Rao

hits counter Originally Posted in
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Present-Worth Comparisons

Engineering Economics Revision Article Series

Net present worth (NPW) or Net present value (NPV) is the difference between the present worths of benefits and costs of an engineering decision. It is the most widely used present-worth model.

Illustrative Problem

A single underground transmission circuit is needed immediately, and load studies indicate the need for a second circuit in 6 years. If provision is made for a second conduit when the conduit for the first circuit is installed, there will be no future need for reopening, trenching, backfillng, and repaving.

the cost of installing a single circuit wiht minimum preparation for the eventual second circuit is $850,000. the installation of the second circuit will be considered to cost $800,000 at the end of year 6 in order to be in operation by the beginning of year 7. If the second circuit is installed immediately, the total cost will be $1.4 million.

Constant annual operating and maintenance costs of the circuits are 8 percent of the first cost. The average life of a circuit is 20 years. The required rate of return on such investments is 10 percent before taxes.

To take a decision, Comparison of the deferred investment with the immediate investment needs to be made.
(Exercise Problem 3.25, Riggs)
References

Engineering Economics, 4th Edition, James L. Riggs, David D. Bedworth, and Sabah U. Randhawa, McGraw Hill, New York, 1996

http://knol.google.com/k/narayana-rao/present-worth-comparisons/2utb2lsm2k7a/250

Updated 21.4.2012

Rate-of-Return Calculations

Engineering Economics Revision Article Series

Internal rate of return (IRR) of an engineering decision can be compared with the minimum acceptable rate of return set by the organization.

IRR is calculated by equating the annual, or present, or future worth of cash flows to zero and solving for the interest rate that allows the equality

References


Engineering Economics, 4th Edition, James L. Riggs, David D. Bedworth, and Sabah U. Randhawa, McGraw Hill, New York, 1996


Online Resources
http://www.ie.bilkent.edu.tr/~ie342-3/Lecture%20No25.ppt


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Originally posted in
http://knol.google.com/k/narayana-rao/rate-of-return-calculations/2utb2lsm2k7a/ 252

November 29, 2011

Equivalent Annual-Worth Comparisons

Engineering Economics Revision Article Series

With an annual worth method, all the receipts and disbursements occuring over a period of time due to an engineering alternative are converted to an equivalent uniform yearly payment. Such a calculation can give annual cost of various alternative engineering alternatives.

References

Engineering Economics, 4th Edition, James L. Riggs, David D. Bedworth, and Sabah U. Randhawa, McGraw Hill, New York, 1996


For more details

http://ise.tamu.edu/people/faculty/butenko/INEN303/chap6.pdf

Problems and Solutions on Equivalent Annual Worth



Originally posted in
http://knol.google.com/k/narayana-rao/equivalent-annual-worth-comparisons/2utb2lsm2k7a/ 251

Replacement Problem - Engineering Economy Analysis

An existing compressor will supply only 60% of the predicted future compressed air requirements of the plant. Its net realizable value is $2,000 with operating disbursementsof $5,000 a year at that load. A new compressor that will just furnish the required 40% additional air can be purchased for $9,000. Its operating disbursements are $3,100 a year.

A full sized machine can be purchased for $15,000 with operating disbursements of $7,600.

The economic life of all three machines is estimated to be 10 years with salvage values equal to 10% of the present values.

Compare the machines and determine the best option for the company.

Assume any data you need.


Reference

Taylor, George A., Managerial and Engineering Economy, Van Nostrand, 1964.

Originally posted in
http://knol.google.com/k/narayana-rao/replacement-problem-engineering-economy/2utb2lsm2k7a/596#

Machine Selection Problem for an Engineer - Engineering Economic Analysis

A machine shop engineer has to recommed a machine for his shop.

He has two alternatives.

The new machine costs Rs.3,33,800. At the end of each year of use its market value is estimated to be Rs. 2,75,000, rs.2,20,000, Rs.1,71,000, Rs.1,29,000, Rs.89,000, Rs.57,500, Rs.30,000 and Rs.20,000.

In the first year the operating cost will be Rs.30,000. In the subsequent years it keeps increasing to Rs.30,500, Rs,32,500, Rs.37,000, Rs,48,000, Rs.60,500, Rs.75,000 and Rs.92,500.

The alternaive is a second hand machine. it costs 1,29,000. Its resale value infuture years will be Rs.89,000, Rs.57,100, Rs.30,000 and Rs.20,000.

The operating cost will be 57,000 in the first year, and will be Rs.62,000, Rs.68,000 and Rs. 75,000 in future years.

What should be the recommendation of the engineer?

Originally posted in
http://knol.google.com/k/narayana-rao/machine-selection-problem-for-an/2utb2lsm2k7a/597#

Depreciation and Income Tax Considerations

Provisions for recovering capital invested in income-producing assets are made by charging depreciation against current income.

Depreciation charges are not actual cash flows.

Engineering economic analysis needs to take into consideration the depreciation methods that can be used by the organization.

References

Engineering Economics, 4th Edition, James L. Riggs, David D. Bedworth, and Sabah U. Randhawa, McGraw Hill, New York, 1996

Originally posted in
http://knol.google.com/k/narayana-rao/depreciation-and-income-tax/2utb2lsm2k7a/256

Sensitivity Analysis

Engineering Economics Revision Article Series

Sensitivity analysis provides a second look at an economic evaluation.

Lurking behind every decision are "what if" doubts?

What if sales are less than forecasts?

What if a new, far better challenger becomes available?

Sensitivity analysis involves repeated computations with different cash flow elements and analysis factors to compare results obtained from these substitutions with results from the most likely scenario incorporated into the original plan.

Sensitivity analysis gives an estimate of the risk of the proposed decision.

References

Engineering Economics, 4th Edition, James L. Riggs, David D. Bedworth, and Sabah U. Randhawa, McGraw Hill, New York, 1996

Orinigally posted in
http://knol.google.com/k/narayana-rao/sensitivity-analysis/2utb2lsm2k7a/258#


Industrial Engineering Knowledge Revision Plan - One Year Plan


January - February - March - April - May - June



Structural Analysis of Alternatives

Engineering Economics Revision Article Series

Selection of engineering alternatives from a set of alternatives depends on the structure of the set.

Independent alternatives are those wherein the acceptance of one alternative has no effect on the acceptance of the any other alternative in the group.

In the dependent group of alternatives there may be mutually exclusive alternatives and contingently dependent alternatives.

Mutually exclusive alternatives means, when one alternative is selected, the other alternative cannot be employed.

In contingently dependent alternatives, if one is selected the other one or others have to implemented.

References

Engineering Economics, 4th Edition, James L. Riggs, David D. Bedworth, and Sabah U. Randhawa, McGraw Hill, New York, 1996


Originally posted in
http://knol.google.com/k/narayana-rao/structural-analysis-of-alternatives/2utb2lsm2k7a/253#

November 26, 2011

Private Equity - Business concept

Private equity firms exit from their investments through one of three ways:

an IPO,
a sale or merger of the company,
or a recapitalization.

Leading investment banks are committing their own capital or principal money to PE investments. Also various sponsors are floating PE funds to attract funds from HNIs into PE investments.



Most private equity funds require significant initial investment (usually upwards of $1,000,000) plus further investment for the first few years of the fund.

Limited partnership interest is the dominant legal form of private equity investments.

Once invested, money is locked-up in long-term investments which can last for as long as twelve years. Distributions are made only as investments are converted to cash; limited partners typically have no right to demand that sales be made.

If a private equity firm can't find good investment opportunities, it will not draw on an investor's commitment.

The risk of loss of capital is typically higher in venture capital funds, which invest in companies during the earliest phases of their development, and lower in mezzanine capital funds, which provide interim investments to companies which have already proven their viability but have yet to raise money from public markets.

Consistent with the risks outlined above, private equity can provide high returns, with the best private equity managers significantly outperforming the public markets.

The potential benefits of annual returns can range up to 30% for successful funds. It may not be the average return on PE funds.

PE Roots

The roots of PE and venture capital are same. In 1946, the American Research and Development Corporation (ARD) was formed to encourage private sector institutions to help provide funding for soldiers that were returning from World War II. They had an operating philosophy that was to become significant in the development of both private equity and venture capital: they believed that by providing management with skills and funding, they could encourage companies to succeed and in doing so, make a profit themselves. ARD succeeded in raising approximately $7.4 million, and they did have one rousing success; they funded Digital Equipment Corporation (DEC). By the 1970s such private participation had permeated into the private enterprise formation, but till in the late 1970s, the task was being largely carried out by investment arms of a few wealthy families, such as the Rockefellers and Whitneys. In the 1980’s, FedEx and Apple were able to grow because of private equity or venture funding, as were Cisco, Genentech, Microsoft, Avis, Beatrice Foods, Dr. Pepper, Gibson Greetings, and McCall Patterns.



Most private equity funds are offered only to institutional investors and individuals of substantial net worth. This is often required by the law as well, since private equity funds are generally less regulated than ordinary mutual funds. For example in the US, most funds require potential investors to qualify as accredited investors, which requires $1 million of net worth, $200,000 of individual income, or $300,000 of joint income (with spouse) for two documented years and an expectation that such income level will continue.


Books

Private Equity Funds: Business Structure and Operations,
By James M. Schell, Published 1999, Law Journal Press.
Gives attorneys, investment professionals, tax practitioners, and corporate lawyers the tools and guidance needed to handle various aspects of a private investment fund.

Private Equity: Fund Types, Risks and Returns, and Regulation
By Douglas Cumming
John Wiley, 2010
http://books.google.com/books?id=WPu3t_-RmLsC

Product Design Efficiency Engineering

Industrial engineers are system efficiency designers. They evaluate the efficiency of various functional system designs proposed by functional designers and managers and wherever inefficiencies are found, will facilitate removal of them.
Product design efficiency engineering is an activity of industrial engineers.

Industrial engineers are system efficiency designers. They evaluate the efficiency of various functional system designs proposed by functional designers and managers and wherever inefficiencies are found, will facilitate removal of them.

Product design efficiency engineering is an activity of industrial engineers. As a part of the method study, the techniques of methods efficiency engineering, industrial engineers examined the efficiency of design. The development of value engineering systematized the product design efficiency engineering process. L.D. Miles started the value engineering process and did an immense service to the society.

Efficiency of the designs is analyzed with respect to its functions, its features, subassembly design, component specifications including tolerances and fits, material specifications, use of standard boughtout parts, and manufacturing processes employed in value engineering. Value engineering practice has given immense savings in the product costs in various industrial sectors.


Knol: Part of Industrial Engineering Course Page -
Introduction to Industrial Engineering - Course at NITIE
_________________________________________________________
Web Page Related to Design Efficiency

Design Efficiency Will Keep Your Product From BOMing Out
http://electronicdesign.com/article/boards-modules-systems/design-efficiency-will-keep-your-product-from-bomi.aspx

Fitting Product Design to Production Efficiency
http://www.industryweek.com/articles/fitting_product_design_to_production_efficiency_15335.aspx

Shaping Efficiency Using CHiL Semiconductor Digital Algorithms
http://www.pddnet.com/editorial-david-williams-shaping-efficiency-using-chil-semiconductor-digital-algorithms-042310/

Palletisation efficiency as a criterion for product design
By Eberhard E. Bischoff
Journal: OR Spectrum, Issue Volume 19, Number 2 / April, 1997, Pages:139-145

Design Efficiency of Market Seeker Strategy and Marker Leader Strategy
http://www.idemployee.id.tue.nl/g.w.m.rauterberg/conferences/CD_doNotOpen/ADC/final_paper/153.pdf

INTELLIGENT DESIGN, EFFICIENCY, AND FUNCTIONALITY:
THE H1B BENT AXIS MOTOR ADVANTAGE
Bob Jensen, Technical Support Team Engineer, Sauer-Danfoss
December 14, 2009
http://www.sauer-danfoss.com/stellent/groups/public/documents/web_content/c019192.pdf




Industrial Engineering Knowledge Revision Plan - One Year Plan


January - February - March - April - May - June



Project Management - Introduction - Revision Article

Based on Meredith and Mantel Book

Definition: The Project Management Institute has defined a project as "A temporary endeavor undertaken to create a unique product or service."

Program refers to an exceptionally large, long-range objective that is broken down into a set of projects. The projects are divided into tasks. Tasks are further broken down into work packages. Work packages contain work units.

Project Management - Definition and Objectives



In the past several decades many organizations are using project management as a basis to achieve the objectives of the organzation. Project management approach is providing organizations with powerful tools that improve the ability to plan, implement, and control activities as the utilization of resources.

The development of the techniques and practices of project management were developed more in the military organization. Meredith and Mantel give credit to government and military organizations for developing project management approach.

The three project objectives are stated as performance (scope), time and cost.

Definition: The Project Management Institute has defined a project as "A temporary endeavor undertaken to create a unique product or service"

Distinction Between Program, Project, Task and Work Packages: The military is the source of these terms. Program refers to an excetionally large, long-range objective that is broken down into a set of projects. The projects are divided into tasks. Tasks are further broken down into work packages. Work packages contain work units.

Attributes That Characterise A Project:



Purpose: A project has a well-defined set of desired end results.

Life cycle: Project will have slow beginning, size gets buildup. Peaks, then declines and has to be terminated on some day. Either it is handed to the client or it is phased into the normal, ongoing operations of their organization itself.

Interdependencies: A project has relations with other project being undertaken by the organization for various facilities. It also will have relations with various functions of the organization like marketing, accounting, finance, human resoures management etc.

Uniqueness: every project being a one time activity has some elements that are unique. Project managers will have many exceptions or new issues that crop up that they have to manage.

Conflict: Projects compete with other projects as well as requirements of various functional departments of the organization for resources and personnel. Also, project managers have to manage the conflict between the demands of the client for more and features and changes, parent organization for profit, some demands made by public where the project is located, and the project employees’ demands.

Why Project Management?



Project management focuses the responsibility and authority for the attainment of the goals of the project on an individual or small group. The project form of organization allows the manager to be responsive to:
1. the client
2. environment
3. identify problems at an early and correct them in a timely fashion.
4. ensures that managers of the separate tasks or activities of a project do not optimize their individual tasks at the expense of the total project. Suboptimization is avoided.
The Structure of the Textbook by Meredith and Mantel
It begins with the creative idea that launches most projects and end with termination of the project. The authors wrote in the 5th edition that creation of initial concept of the project was universally ignored in books project management. In their book , Meredith and Mantel included two appendices on topics creativity and idea generation and technological forecasting. In the 5th edition they moved these topics from the textbook to internet. The appendices are now available in http://www.wiley.com/college/projectmgt/


12 Vital Rules for Project Managers



1. You have to understand the project purpose and context.
2. You need to identify the stakeholders in the project and understand their wants.
3. You have to accept and use the political nature of organizations in allocation of resources.
4. You have to recognize the conflicts that are arising as the project is progressing.
5. As a project manager you need to lead from the front.
6. You have to understand what “success” means for the project every day.
7. You have to build and maintain a cohesive team.
8. Remember enthusiasm and despair are both infectious.
9. Looking forward and planning is important. One look forward is worth two looks back.
10. Always be sure of what you are trying to do.
11. Manage time – Use time carefully or it will use you.
12. Plan, plan, plan
Based on the reading given in the book “Lessons for an Accidental Profession,” by J.K. Pinto and O.P. Kharbanda, Business Horizons, March-April 1995.



______________________________________________________________________________________
Bibliography
Software Project Management - Summar Artlces
Chapter 1
Chapter 2 Software Lifecycle
Chapter 3 Project Planning
Chapter 4 Requirments Management
Chapter 5 Risk Management
Chapter 6 Cost Management
Chapter 7 Time and Schedule Management
Chapter 8 Measurement and Metrics
Chapter 9 Configuration Management
______________________________________________________________________________________
Original post http://knol.google.com/k/narayana-rao/project-management-introduction/ 2utb2lsm2k7a/ 2140

Selling Process – Prospecting

Prospecting is an important part of selling process

Steps in selling process



1. Prospecting

2. Call planning

3. The visit – preliminaries

4. Presentation

5. Trial close

6. Listening to the objections

7. Objection handling

8. Trial close

9. Close

10. Follow-up and service





Prospecting



Prospecting identifies potential customers. Lead generation is a step prior to prospecting. A lead is also referred to as suspect. The term suspect indicates that a person is suspected of being a prospect. For every lead (or suspect), a salesman has to ask some questions and satisfy himself that there is chance that he may become a customer. Then that lead is categorized as qualified prospect.



The questions used in qualifying a lead as a prospect are:



1. Does the person need the products or services that I am offering?

2. Does the person perceive the need?

3. Does the person have sincere desire to fulfill his need?

4. Can this person’s need be converted into a want for the products that I am offering?

5. Does the individual have the ability to pay?

6. Will the transaction with this person be profitable?



The sales person will generate a list of prospects or qualified prospects for each period say for each day and make sales visits. Every salesman needs adequate list of prospects to earn his daily bread through sales.



How to generate leads and prospects?



The sources which provide leads can be categorized as follows:



· Cold calls

· Personal acquaintances

· Bird dogs

· People with influence in a locality

· Exhibitions and public events

· News paper and other media

· Lists and directories (telephone directory)

· Old accounts



Cold calling is door-to-door visit by the salesman to each house in a neighborhood to locate people with a need for the product he is offering.



Personal acquaintances can be the leads. They can also suggest their neighbors as leads.



Bird dogs are people, who know residents well such as real estate sales person, gas station attendant, medical shop person, etc. who can give some information.



People with influence in a locality like social workers, political leaders can be approached to get suggestions regarding persons who are likely to have the need for the product.



Exhibitions and public events can be used to attract leads. The salesman can distribution some literature or pamphlet or exhibit the product and the persons who approach him become the leads.



Newspapers and other media like internet can be gleaned to locate persons.



Telephone directory provides scope for cold calling through phone. Similarly other directories of various professionals etc. are a useful source for leads.



Old customers can be requested to suggest their friends who may have a need for the product.

Sales Process – Call Planning

Steps in Sales/selling process





1. Prospecting

2. Call planning

3. The visit – preliminaries

4. Presentation

5. Trial close

6. Listening to the objections

7. Objection handling

8. Trial close

9. Close

10. Follow-up and service



Step 2. Sales Call planning








Except in retail counter sales, and selling situations similar to this wherein the customer himself walks up to the salesman, salesman has to meet the prospect and interact with him to offer his product as a solution to the prospect’s need and want. Getting an opportunity to meet the prospect is the first step in this process. Cold calling can be tried, but for many items, the prospect may not be able to spare time at the instant the salesman barges in. the practice of making an appointment before calling on a prospect can save the salesperson hours in time wasted in traveling and waiting to see a person who is absent or busy.



Appointment making is often associated with a serious professional image, and it is treated as a gesture of respect toward a prospect. If the prospect gives an appointment, he will spare more time to interact with the salesperson and listen to his point of view, his presentation. A list of appointments aids a salesperson in allocating his day’s selling time. Appointments can be arranged by postcards & letters, telephone, emails, or during cold calls.



For making an appointment over telephone, it is advisable to plan and write down what is to be said. This will help in presenting the message concisely. The sales person has to identify himself clearly, state the purpose of the call and present interesting information about his product and seek the interview. The interview seeking sentence is preferably put forward as a question giving a choice of time to the prospect. Can I come today or is it more convenient to you tomorrow? Could it be in the morning or you prefer evening?



Appointments are easy to come by if your old satisfied customers talk to the prospect on behalf of you and arrange the interview.



A salesman has to believe in himself. You have a good offer for the prospect and he will benefit by accepting your offer. Confidence can be developed by knowing your products better and customer needs better. When you are seeking appointment, you have to be internally confident.



Successful salespeople make friends with people around the prospect. Car sales people speak to drivers as equals. The security persons of a building need to kept in good humor. They can make entry into the building easy and can even give some information on leads.



A salesperson need not waste time in endless waiting. Once an acceptable amount of waiting time has passed, he can inform that he has another appointment to make and can fix another time for the appointment.





The actually sales call needs to be planned. By planning the sales call the sales person becomes confident. As a part of the planning, an attempt is made to understand the need of the prospect. The prospect appreciates a salesman who shows an understanding of his need. A salesperson’s ability to be fluent in his interaction creates a professional image. This professional image increases sales.



The sales call plan has four components.



1. The call objective

2. The customer profile

3. The customer benefit plan

4. Presentation that takes into consideration the call objective, customer profile and the benefit plan.



The presentation that is planned must capture and maintain the prospect’s attention. It has to lead to prospect’s showing interest. It then has to increase his desire to own the product. Then only the action to buy will be undertaken by the prospect.



The salesperson has to ensure that the presentation/interaction that he has planned has statements, exhibits, and actions that result in attention, interest, desire and action on the part of the prospect. _____________________________



 ______________________________

Originally posted on Knol http://knol.google.com/k/ sales-process-call-planning#
Knol Number 33 Traffic rank 106

Interacting with the Prospect – Customer

Selling Process - Skills - Article - Series

The main goal of interaction with the prospect many times is to sell the product or service. As a part of the interaction, a salesman is going to intensify the need of the prospect, convert it into a want, and create a favorable attitude for the specific product he is offering.

Goal of interaction




The main goal of interaction with the prospect many times is to sell the product or service. The first few minutes of the meeting with any customer is spent in determining the prospect’s mood and situation, his need and effort is made to capture his attention and interest in the conversation that is going to follow about the product or service.



As a part of the interaction, a salesman is going to intensify the need of the prospect, convert it into a want, and create a favorable attitude for the specific product he is offering. To create the want for his company product, the sales man presents the features, advantages and benefits of his product, and his business proposal for the transaction.



The salesman has also the job of convincing the prospect that not only he has to buy the product, but also that he has to buy from the salesman himself, because he is the best source or salesman to buy from and get service from.



SPIN – Series of questions




SPIN is a questioning technique in which series of questions are asked to bring out the need of the customer, intensify and convert it into a want for the product the salesman is offering.



In SPIN, ‘S’ stands for situation questions. These questions aim at the situation that gives rise to the need. For example, a salesman for children education product may talk of children the prospect is having, their current education and their plan for future education.





‘P’ stands for problem questions. IN this group of questions fall, questions that bring out the problems or difficulties perceived by the prospect relative to the situation questions. In regard to the education plans of children, these questions bring out the need for funds in the future and the difficulties the prospect is facing to plan for them.



‘I’ stands for implication questions. The implication if the problem is not solved is brought out in this group of questions. The fact that the child has to forego the preferred course or the family getting into financial difficulties in the absence of a financial plan for education is brought out in this group of questions.



‘N’ stands for need payoff questions. In this group of questions, the effort is to make the prospect agree that he has an important explicit need and he is interest in listening to the solution to the problems.



Thus SPIN questions set the background for a presentation of the features, advantages and benefits of the salesman’s offer.



Presentation




The presentation of the salesman’s offer has to follow three essential steps.



Step 1. Full discussion of the features, advantages, and benefits of the offer (product or service).



Step 2. Customer value plan: Explanation of how the customer is going to use the product.



Step 3. Business proposition: Relating the value of the product to the cost of the product. The general recommendation is to discuss the price of the product last, as you want the prospect to listen to the benefits and value first and cost later.



The presentation of the offer needs to include apart from the persuasive communication from the salesman, participation of the prospect, visual aids, proofs or proof statements, demonstration of the working of the product, and some dramatization.

A survey of sales managers brought out the importance of three factors in sales presentations - enthusiasm, persuasive communication, and verbal skills.

Persuasive communication is discussed in detail in a separate knol.


Trial close




In the presentation at various points of time whenever the prospect shows strong conviction about the merits of the product or offer, salesman needs to try for a close.

November 25, 2011

Prospect Objections During Sales Presentations

Selling Skills Article Series

Objection or resistance to the request of the salesperson is labeled a sales objection. Salesmen have to welcome the objections because toughest prospects are those who do not say anything. One cannot make out whether they are interested, bored or just being polite. An objection shows that prospect is involved in the conversation.

Objection – the Concept




Objection or resistance to the request of the salesperson is labeled a sales objection. Salesmen have to welcome the objections because toughest prospects are those who do not say anything. One cannot make out whether they are interested, bored or just being polite. An objection shows that prospect is involved in the conversation.



Salesmen have to be prepared for giving a satisfactory reply to the objections raised by prospects.





Objections - Classification




The usual objections encountered during sales process are categorized as:



Hidden objections

Stalling objections

No-need objections

Money objection



Techniques to Reply to Objections




There are several techniques mentioned in books on salesmanship to respond to objections.





Pass up the objection

Anticipate the objection

Forestall the objection

Rephrase the objection as a question

Ask questions regarding the objection

Boomerang the objection

Directly deny the objection

Compensate for the objection

Obtain a third-party answer to the objection



Trial Close




The salesman has to try to do the trial close as he gives a satisfactory response to an objection. Many objections come up only after the salesman tries trail close.

Originally posted in http://knol.google.com/k/narayana-rao/prospect-objections-during-sales/2utb2lsm2k7a/ 79# Knol traffic rank 104

Trial Close

Selling Skills Article Series

Closing is the process of helping people make a purchase decision that will benefit them. Salesmen help people make that decision by asking them to buy.


Closing a Sale





Closing is the process of helping people make a purchase decision that will benefit them. Salesmen help people make that decision by asking them to buy.



The very fact that a prospect is meeting a seller and having a conversation with him means the prospect has an interest to buy the product. Hence many times the prospect may be ready to make the buying decision very early in the meeting.


When to Try to Close the Sale





The simple answer is when the prospect is ready. To decide the point when the prospect is ready, salesmen have to observe for buy signals or willing-to-buy signals from the prospect.


Buy Signals





A buying signal or buy signal or willing-to-buy signal refers to anything prospects say or do to indicate that they are ready to buy.



Some of them are:



Prospect asks questions regarding price and delivery dates.



Prospect asks the opinions of others.



Prospect relaxes and becomes friendly.



Prospect pulls out the purchase order form.


Prospect looks carefully the product on offer

Trial Close after clarifying an objection


The salesman has to try to do the trial close as he gives a satisfactory response to an objection. Many objections come up only after the salesman tries trail close.

Sales Closing Techniques

Selling Skills Article Series

Closing is the process of helping people make a purchase decision that will benefit them. Salesmen help people make that decision by asking them to buy.

Closing a Sale



Closing is the process of helping people make a purchase decision that will benefit them. Salesmen help people make that decision by asking them to buy.



The very fact that a prospect is meeting a seller and having a conversation with him means the prospect has an interest to buy the product. Hence many times the prospect may be ready to make the buying decision very early in the meeting.


When to Try to Close the Sale





The simple answer is when the prospect is ready. To decide the point when the prospect is ready, salesmen have to observe for buy signals or willing-to-buy signals from the prospect.


Buy Signals



A buying signal or buy signal or willing-to-buy signal refers to anything prospects say or do to indicate that they are ready to buy.



Some of them are:



Prospect asks questions regarding price and delivery dates.



Prospect asks the opinions of others.



Prospect relaxes and becomes friendly.



Prospect pulls out the purchase order form.


Prospect looks carefully the product on offer


Closing Techniques





Alternative choice close

Assumptive close

Compliment close

Summary of benefits close

Continuous yes close

Minor points close

T-account or balance sheet close

Standing-room-only close

Risk Premium

Risk premium plus Risk free rate of return is the rate of return demanded on a security by investors in the market.



Concept Definition and Explanation

Rate of return required on a security or asset has three components.
1. Pure time value of money.
2. Inflation premium
3. Risk premium

As securities are issued by corporate entitiies engaged in business activities, risk arises due to the following sources of risk.

1. Operating risk: Business organzations have fixed costs and as sales vary from year to year, in some years contribution from sales can be less than the fixed cost leading to reporting of loss by the company.

2. Financial risk: Many business organizations borrow to increase the capital employed in the business. This would lead to fixed interest cost commitment. In years when operating profits are low or small, the fixed interest cost will depress after-financial cost profit.

3. Liquidity risk or market risk: Securities are to be sold in the secondary market, and there are price fluctuations in the market depending on the liquidity conditions in the market.


Investors demand a risk premium to compensate them for the variability of return that arises due to various sources of risk of the security. This risk premium forms part of expected return as well as nominal return specified on fixed income securities.

References:
Reilly, Frank and Keith Brown, Investment Analysis and Portfolio Management

Research Papers

Equity Risk Premiums (ERP) : Determinants, Estimation and Implications: Empirical Study 2011 Edition by Aswath Damodaran
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1769064

_______________________________________________________________________________
Concept Articles

Blog Post by Aswath Damodaran, February 25, 2011
http://aswathdamodaran.blogspot.com/2011/02/equity-risk-premiums-2011-edition.html
________________________________________________________________________________

Safety Stock Determination

In Economic Order Quantity (EOQ) systems, safety stocks are to be kept and they have to be specified to calculate the reorder point. Safety stocks are kept to minimize the chances of stock out. If the average lead time of past receipts and average lead time consumption of the last year are used to calculate the reorder point, in 50% of the reorders, stock outs can take place.

One of the methods of determining safety stock to reduce the probability of stock out,  is to assume that lead time will not vary, but the demand varies. The standard deviation of demand can be determined and a safety factor can be used based on normal distribution tables.

If safety stock is kept equal to one standard deviation of demand during lead time the service level (probability of stock being available during the time the item is on order) will go up to 84.13%. If the safety stock is made equal to two standard deviations of demand during lead time the service level (probability of stock being available during the time the item is on order) will go up to 97.72%.

Plossl and Wight advocate using mean absolute deviation (MAD) in the place of standard deviation. The standard deviation can be approximated as 1.25 times MAD.


Recent articles and research papers on the topic

Safety stock analysis: A tutorial
http://scm.ncsu.edu/scm-articles/article/safety-stock-analysis-inventory-management-models-a-tutorial

A new framework for safety stock management - Cognizant insight note December 2011
http://www.cognizant.com/InsightsWhitepapers/A-New-Framework-for-Safety-Stock-Management.pdf

Concepts for Safety Stock Determination under Stochastic Demand and Different types random production yield, February 2011
Working Paper, University of Magdeburg
http://www.fww.ovgu.de/fww_media/femm/femm_2011/2011_03.pdf


Originally posted on Knol: http://knol.google.com/k/narayana-rao/safety-stock-determination/2utb2lsm2k7a/ 594#

November 24, 2011

Scientific Approach, Engineering Approach, Management Approach

Science helps us in understanding nature. The nature could be that of physical objects, individual human beings, groups, nations as well as that of individual animals plants and trees and their groups.

So scientific approach involves observation and recording of facts relating to a natural phenomenon. From these facts cause and effect relations are identified as theoretical conjectures and are converted into hypotheses. Theoretical conjecture building is inducting thinking and development of hypotheses is deducting thinking. From the various hypotheses deduced from a theoretical conjecture, some will be testable hypotheses. They will be tested using experimental data or field study data and the results are evaluated to assess whether they support the hypothesis. Any support to the hypothesis will be regarded as stengthening the case of the theoretical conjecture. A theoretical conjecture supported by a number of hypothesis tests can be used to get useful outputs or events from the nature.

Engineering is applied to invention, development and production, fabrication or construction of man made objects that satisfy the needs of people for food, shelter, entertainment, and security. Engineering approach to problem solving involves laboratory experimentation, sciences and mathematics. But the most distinguising feature of engineering is the amount of attention paid to detail and documentation[1]. A machine design is complete only when an assembly drawing supported by a drawing for each and every element required for the assembly is complete. Each and every element must have all the required dimenions and tolerances and the materials from which they are to be made. The design changes are to be properly documented in each drawing. Engineering approach inherently takes care of first identifying elements of a system that is the solution to a problem and the issues involved in combining the elements are also taken care of in engineering approach.

Management approach is more like an engineer repairing a machine rather than a engineer designing a machine. Managers have to come out with solutions that require the acceptance of people all the time and successful managers have a knack of understanding the people around them and the people affected by their decisions. Lee Iacocca said in his book, that Psychology courses that he has taken helped him a lot in his managerial career.

Stock Market Efficiency Theory and Implications for Financing Decisions

Stock Market Efficiency Theory and Implications for Financing Decisions

Stock Market Efficiency Theory and Implications for Financing Decisions

Financial Management Revision Article

Stock prices follow a distribution called random walk distribution.

Authors

Random walk hypothesis of stock prices

Stock prices follow a distribution called random walk distribution. The simple explanation of this distribution is that the best estimate for the future state of the system is the present state itself. Random walk is explained as the walk of a drunkard. You don't know when he will turn and the best estimate for his future position is present position only.
A Poem written by me on random walk. The poem is from the knol Stock Market Poems - Collection 2 (all rights reserved).

Trend Talk and Random Walk
 
You can make money in quick time, said Dow
Speculate and make money now
I shall tell you how
through a theory named Dow.
 
Dow was the editor
of a stock market mirror
Wall Street Journal
for stock market personnel.
 
Trends, trends, trends
First one is for long term
Second one is for medium term
Third may be random
whose meaning you cannot fathom.
 
Follow the trend
which is your friend
You can make money in quick time
even with a dime
from anywhere
a telegraph office is there
 
 
There is no trend
to follow and send
stocks to further high end
Said a statistician
trying to become a physician.
 
Stock prices follow random walk
Similar to that of a drunkard
who may be blinkered
You don't know when he will turn
Each and every step is uncertain.
 
Each move is independent
irrespective of the time spent
Charts are valueless
You are clueless
 
Random walk, random walk
Ignore Wall Street talk
Save your time and dime
Invest for long time
Avoid the short time
 
Trend talk and
random walk
clash every day
Some one will pay
the other every day
 ----------------------

Efficient market hypothesis/theory (EMH)

The random walk hypothesis was extended to efficient markets hypothesis. According to this theoretical conjecture,stock markets are efficient with respect to processing the information.
Weak form, Semi-strong, and Strong forms
As the theoretical conjecture talks of efficient information processing, levels of information were brought into the refined forms of EMH.
Historical information released by the stock markets
Information released by the company regarding future activities
All information including information not released by the company.
Weak form EMH says stock market is efficient in processing historical information released by the stock markets.
Semi strong form EMH says stock market is efficient in processing information released by the company regarding future activities.
Strong form EMH says stock market is efficient in processing all information including information not released by the company.

Empirical evidence

Serial correlation tests
Runs tests
Filter tests
Event studies
Studies of performance of mutual fund managers or schemes

Market efficiency  - Implications for corporate finance

If the market is efficient, companies need not time their public issues.
 

References

  Prasanna Chandra, Financial Management, 5th Ed.,  Tata McGraw Hill, 2001
Brealey and Myers, Corporate Finance, Fifth Edition, Prentice Hall India, 2001
 

Copy posted to http://nraomtr.blogspot.com/2011/11/stock-market-efficiency-theory-and.html

 
 

Comments

nifty tips

Markets dramatically change they their flow and no one exactly produce or expect 100% from their profits . Choosing the right indicator or analyzing software blended with human aspect gives better results.

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Nifty Tips - 30 Sep 2011