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Strategic Healthcare Spending and finance

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Introduction and Background

Sustainable and secure financing in healthcare may be perceived as an essential aspect of achieving the vital population objectives and goals in health. Spending and financing in health care, which is properly arranged assists the national administration in ensuring the mobilization of adequate financial resources in health. It also assists them in distributing these resources sensibly, as well as, ensures their application is appropriate, equitably, and effectively. Impartial and pro-poor programs and policies in health financing facilitate widespread access to crucial services in health. In addition, they contribute significantly to social protection and the intensification of social networks for safety and security in the socio-economic environments that is changing dramatically. In these wide contexts, financing in health care contributes to the process of social and economic development. Services of health care have increasingly become exceptionally costly in both developed and developing countries. The rise in medical services besides the advanced technological input is a major contributory factor in the rise of health care expenses and costs. According to Hammaker and Tomlinson (2011), poor management of resource and services and the widespread application of service fees are also other key factors that lead to increased costs of health in developing countries.

Lack or failure of having public financing of health has lead to cost recovery that largely enhances charging of user fee at healthcare centers and facilities. In some countries or areas, this has been used as a policy for strengthening the role of the market forces within the health sector. A number of the measures of the reform of health sectors support the role and position 9f the private sector in provision and financing of health care services. These include the privatization of public health facilities. Through the provision of initiatives, some medical products and services including minor surgery, hi-tech diagnostic services, and pharmaceuticals have been offered extensively at full or partial cost to patients. Chronic and non-communicable disease management is a popular concern in many regions across the world. Complications and long periods of treatment lead to increased treatment costs. These high costs become a burden both to patients and the healthcare sector (Hammaker and Tomlinson, 2011).

Many states spend a considerable portion of their budgets on treatment in other nations on chronic diseases. In many times, this is not justified in comparison to health returns. There can be a significant reduction on future health spending through the implementation of efficient and effective measures in health prevention and promotion. In many countries, the share of private financing in the whole spending on services and products of health care has been on the rise over the last decade. Mostly, the increase is due to mean payments. A significant number of studies have revealed that mean payments is an effective means of mobilizing resources of healthcare. Adequate data exists, which shows that families that have low incomes use a higher proportion of their income on services of health as compared to those with high incomes. Increase in out-of-pocket spending by families is viewed as among the major causes of poverty. Low income earners spend their financial resources, which comprise of discarding their assets in order to afford for the essential health care. Most people are, however, unable to afford higher user fees on health. According to Grauman and Harris (2009), poor health leads to a high number of people who are unable to pay for healthcare expenses into poverty.

Significant discrepancies exist in the behavior and health status of seeking healthcare between the rich and the poor, between urban and rural population, as well as, between genders. Poor individuals have poor statuses of health, and they largely rely on public health financing. It has been approximated that a 1% rise in public health financing usually leads to a reduction in child mortality among the poor populations by twice when compared to the rich. There has been and continues to be an increased interest in evaluating of a number of financing arrangements in relation to health outcome, service coverage, equity in financing, and population access. The World Health Organization gave a report concerning improving the performance of health care systems in relation to this demand. This report provided an operational framework for health system financing. It is of no doubts that a health system whereby people pay from their pockets when they become ill develops equity concerns. In other words, this system facilitates the exclusion of the poor from the use of health care services. In return, it limits access to only those individuals who can afford the medical charges (Raethel and Deborah, 2009). In contrast, a health system, which when funded mainly by sources of the public such as taxes and social health insurance, gives impartial and excellent access by all individuals to the basic health services. Effectively, health risks and subsequent finances are brought together to serve as a safety network for individuals, thus, providing the requirement for making payments at times of use or illness. The type of financing based on an arrangement of prepayment usually isolates payment from unemployment, contains costs of health services, and reduces unnecessary financial burdens.

Health care financing strategy

Investment and public spending on enhancing health

Most countries depend on health insurance, government budget, private sources that comprise of out-of-pocket payments and non-governmental arrangements. Regardless of there being different financing sources, the degree of health spending in a variety of regions is considerably low. Most of the countries and regions spend lower than 5% of their GDP (Gross Domestic Product) on health. In addition, the per capita spending on health is less than 30 dollars per person yearly. Therefore, lack of having financial resources for health is a significant part of the challenge. This proportion of the inadequate and limited funding for health is mostly spent on sickness rather than health. Currently, most areas and countries fight to maintain and enhance the role of the government in provision and funding of services with public health significance.

In order to facilitate public health spending, there should be movement of financial resources towards health programs and policies that are cost-effective. Increasing investment in order to offer a general affordable and access to health care, sustainability of the financial resources should be determined from more constant sources of funding, and provision of sufficient funding for national programs of high priority. It is also essential to ensure that relations between health financing and health policy are intensified (Hernandez and O’Connor, 2010). In order to attain increased public health spending, the policies and strategies to be implemented consist of attaining a balanced mix of private and public financing for health programs of high priority, increasing public funding for promotion and prevention of health, improving the level of access and equity to quality health products and services, approximating the implications of financing of proposed policies of health with the corresponding sources of funding, as well as, strengthening the capacity in health care financing and national policy.

Establishment of prepayment schemes with social insurance of health

Establishment of prepayment schemes including social health insurance faces significant problems. For instance, there exist long lead periods for development of institutional agencies of social health insurance. Furthermore, hardships are experienced din the extension of the coverage of health insurance to the informal sector and the self-employed individuals. Other challenges facing the social health insurance include misconceptions and low awareness regarding the social health insurance among stakeholders and decision makers. There is also insufficient technical expertise for the designing and implementation procedures of social health insurance. Goals and objectives for establishing prepayment schemes include raising the capability for adoption and implementation of schemes of prepayments, extension of the coverage of insurance of individuals and intensified financing policies on health and the wider social protection program and policy (Moseley, 2009).

People at the management level ought to carry out pilot social health insurance and prepayment schemes. Moreover, they should ensure that they make sensible and practical measures and plans to expand coverage of available and existing policies and programs. Information on any of these aspects should be shared and distributed. Additionally, human and institutional capacity should be established for management of social health insurance and prepayment schemes; clear responsibility lines must be created. There should also be an assessment of capacity and development and refinement of health care financing policy and program for social health insurance and prepayment schemes. A clear definition of a process that is consensus-based of key stakeholders in order to ensure efficiency and effectiveness in the scheme (Moseley, 2009).

Supporting of global and national health and development processes

Health status has a high level connection with macro-economic factors such as working conditions, unemployment, poverty, environmental factors, and income. In support of both international and national development and health processes, a variety of issues and challenges are experienced. These challenges comprise of lack of comprehension of relations between investing in education and health, women empowerment, health, poverty, and economic growth. In addition, there is a powerful requirement to have a policy or program advocacy on global and evolving policy concerns such as general agreement on trade in services, trade and health, and social determinants of health.

Goals and objectives on supporting global and national development and health processes have both social and economic development plans and measures at national level incorporating gender, health, equity, and poverty. In addition, achieving dedication for increasing investment in health to achieve millennium development goals is also an objective of this strategy. There is also a need to ensure that national policies and programs alleviate and eliminate gender issues and poverty that is health-related. These policies should ensure that these concerns are supported (Hernandez and O’Connor, 2010).

Approaches and strategies that can be used to attain these objectives may include improving organization of grants from donors to achieve the millennium development goal. In addition, there may be the establishment of partnerships of health ministries with other agencies and ministries. Reduction of discrepancies between the local and global priorities of health and the advocacy of development goals and global health are also strategies that can be used to achieve these objectives. Individuals at the levels of management should establish channels of transparency and accountability between the executive and legislative branches of the government, providers of health care, decision makers, and consumers if these goals are to be attained. There should also be an invention of policies and evaluation of the financial implication for reduction of morbidity and mortality among the disadvantaged and the poor. Efforts to improve awareness regarding the links between health and economic development should be there to ensure the attaining of these goals and objectives aimed promoting the well being of individuals. There existing drivers or factors of the challenges to cost and finance in the implementation of the above discussed strategies. When examining these drivers, analysts focus on a number of concerns including workforce, the system of payment, physician integration, technology, and capital planning (Moseley, 2009).

Drivers for the strategies of healthcare financing and spending

Technology

Healthcare organizations need to establish strategies that support information technology with the expected changes in care payment and delivery structures. The need to invest in information technology in healthcare is exceedingly vital especially within systems that are able to gather and assist in the analysis of operational data, support electronic health records of patients, and communicate with systems of Information Technology of other payers and providers. Most important, however, is the capacity of healthcare organizations to make investments to respond to market changes (Raethel and Deborah, 2009).

Workforce

The biggest trend for healthcare personnel is the decline of skilled and experienced staff. Presently, there has been a decrease in the number of physicians and nurses and studies show that the shortage of healthcare personnel will further decline over the coming years. Regardless of the fact that the present downturn in the economy is giving a bit of relief as nurses with no employment are entering the labor force, the belief that the shortage will continue is still high. This has a higher possibility of momentary modification or short-term change. An effect of the trend of health care providers is that there will be more work for the few workers who will be available. Health care providers are expected to balance the essence of having higher productivity of personnel with the need for hiring and maintaining skilled clinical personnel. Shortage of skilled workforce increases the labor costs, which facilitates the need for productivity gain (Hernandez and O’Connor, 2010).

Physician incorporation

The increase in the shortage of physician in the healthcare provision has made hospitals employ physicians to ensure that specialists of surgery and trauma are available. It is noticeably clear of the tendency towards an increase in the recruiting of essential physicians. A significant concern in the pursuit of this strategy is the avoidance of earlier errors. A present approach to this strategy needs to take into consideration how the physician’s compensation will be related to productivity or quality improvements (Davis et al., 2008). For most hospitals and health care systems, the direct hiring of physicians might not be the best alternative to an integration strategy. There exist many options that range from simple to complicated models whose autonomy degrees and affiliation are different, but could be modified. Healthcare organization and management must assess the best and appropriate integration strategy that will meet strategic and operational objectives including quality initiatives, ancillary revenue, and on-call coverage.

Capital planning

There is lack of certainty in the prospects for access to capital. Healthcare providers are modifying their strategic plans and capital in order to report on the possible long-run revenue movements of revenue, costs of capital, and reassessing of risk in the investment portfolios. There should be consolidations in the number of healthcare facilities that are aimed at promoting gains (Youngberg, 2011). Hospitals should evaluate the feasibility of capital spending realistically and take into account options based on the result of the evaluation.

System of payment

A majority of individuals hold the perception that future payment will be strongly influenced by results of patients. Most of them believe that Medicare will make payments for most care in the coming years. Currently, there are schemes that link payment to certain measures of quality performance. Consequently, this has stopped payments to hospitals for happenings unavailable at admission. There exist unanalyzed payments to physicians for inpatients and post healthcare for patients of cardiac and orthopedic diseases. On the other hand, on the private sector, there is a possibility of a decrease in the insurance offered by employers. There is also a probability for an increase in the number of patients who pay for healthcare services using individual resources. One of the reforms in healthcare, in place, is establishing an alternative of public insurance to compete with insurers from the private sector on a national exchange. This action may result in a considerable effect on the degree of patients who pay using their own resources especially when the development of this alternative is in line with a personal covering mandate. It could, however, mean that the higher proportion of care to patients will be paid at same rates to those of Medicare.  It is essential to consider the fact that private insurers also watch payment depending on the result with concentration and in some cases they carry out their own studies (Aaron et al., 2009).

Conclusion

It is clearly evident that concerns related to technology, workforce, physician integration, capital panning, and payment system are beginning to affect healthcare organizations. Many health systems and hospitals have began adjusting to these modifications in a manner that increase the strategic objectives but reduce costs by optimization of available resources, demanding careful evaluation of capital spending needs. Health systems must work to establish areas of perfection and objectives that can be achieved. The administration should establish an open debate on results of all investigations on health matters and such investigations should be able to determine whether cost reduction or quality improvement can be achieved. As the requirements for the present will certainly change in the future, actions needed for assessing the performance of healthcare organizations will unavoidably change. Each day, the healthcare sector goes through a significant transformation. Organizations are required to adjust to these changes in order to solve any arising problems. A shared concern is on the value of the strategy and cost-efficiency as they are exceedingly essential in the healthcare sector. These strategies are vital in improving the health and lives of individuals, which is what all people desire.

 

References

Aaron, H. J., Lambrew, J. M., Healy, P. F., Century Foundation., & Brookings Institution. (2008). Reforming Medicare: Options, tradeoffs, and opportunities. Washington, D.C: Brookings Institution Press.

Davis. K., Jones, L., & Richard S. (2008) Continuous innovation in healthcare: Implications of Geisinger experience Health affairs, Vol. 27, Issue 5 p. 1235-1245

Hammaker, D. K., & Tomlinson, S. J. (2011). Health care management and the law: Principles and applications. Clifton Park, NY: Delmar/Cengage Learning.

Hernandez, S. R., & O’Connor, S. J. (2010). Strategic human resources management in health services organizations. Clifton Park, NY: Delmar Cengage Learning.

Moseley, G. B. (2009). Managing health care business strategy. Sudbury, Mass: Jones and Bartlett.

Raethel, K. & Deborah, C.G. (2009) Tips for building sustainable cost-effective staffing strategy,

Healthcare cost containment, p14-15

Youngberg, B. J. (2011). Principles of risk management and patient safety. Sudbury, Mass: Jones and Bartlett Publishers.

 

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Berkeley’s solipsism

One criticism that has been consistently leveled against Berkeley is that his arguments end in solipsism. Solipsism refers to the philosophical notion that only one’s own mind is sure to exist. This idea holds that anything outside an individual’s mind is uncertain. This is what arises from the ideas of Berkeley on sensible objects. There is an issue of objectivity for the thoughts of Berkeley. This is because people may perceive things differently. This is based on the idea that each individual has only one sensation to go on and; therefore, it cannot be assumed that people share the same perceptions of there being a common world. Berkeley states that because it is not possible to form an idea of an object that is not perceived, the argument for unthinking objects to exist is for them to be supposed. This brings out the error of confusing perceptual thoughts as the driving factor of thinking with perceptual knowledge as an element of the object of reflection. Berkeley’s form of argument is incomparably more unreasonable than any normal religious faith.

According to Berkeley, whenever individuals say that certain physical things or objects exist, it implies that the things or objects are perceived, or they would be supposed under such conditions. This does not make sense or rather it is self-contradictory to state of a physical thing that it is not perceived and would not be supposed under whatever circumstances. The response that Berkeley gives to this argument is that it does not mean that physical objects are supposed or would be supposed under such conditions when it is said that they exist. He argues that this is something that whoever comprehends English should be aware of. In his idealism, Berkeley appears to be a supporter of common sense. He holds that individuals can instantly perceive the rational qualities of physical things and individual ideas. He also states that the rational qualities of physical things are simply ideas that only exist in the mind.

The fact that makes the main criticism of Berkeley’s idea is that he goes on to state that it is crucial to take into account the existence of many perceivers. What individuals perceive are just rational objects, collectivities of sensible qualities that are just in the minds of perceivers. Looking at the two statements from Berkeley can best illustrate his ideas. The first is that rational objects are things that individuals perceive while the second is that what individuals perceive are their perceptions. These give rise to the idea that sensible objects are simply perceptions. Although the argument may appear valid, the conclusion holds true only if the premises are factual. The first argument is factual only by definition of rational objects as held by Berkeley. On the other hand, the second argument seems startling. Most individuals may hold that whatever they perceive are the objects as they exist in the world or space external to the mind. But, Berkeley is determined to show that this is merely confusion. Berkeley holds that what people instantly perceive are their perceptions and this itself is the conclusion of ideas that concern his opinions on perceptions of individuals about objects in the world. Although, Berkeley tries to defend his arguments, he does not seem to have a logical solution to this problem.

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Rousseau’s terms for the social contract

The idea of force as held by Rousseau negates the need that a contract be entered into willingly. The concept of contract allows people to refrain from entering into a contract. However, Rousseau argues that even people who disagree with components of the social contract must consent to put up with it or risk being punished. On the other hand, this paradigm does not take into consideration the idea that social contract concept is more of a philosophy than a real contract. Therefore, the concept is not held to similar principles and standards. Rousseau goes ahead to argue that taking up residence in a civilized society implies that people consent to what the social contract dictates. This might not hold true for every resident because it is difficult to guarantee that every individual is entirely cognizant of the social contract specifics.

According to him, although men are born free, they are chained everywhere. He describes the numerous ways in which the civil society’s chains repress the natural rights of individuals. Rousseau holds that there is nothing that the civil society does to enforce the individual liberty and equality promised to individuals when they entered into a particular society. This to some extent holds true even in today’s World. For him, the only legitimate and legal political authority is the authority agreed upon by all individuals that have consented to such administration or government by getting into a social contract for their mutual preservation sake.

The ideal forms of the social contract and their philosophical underpinnings discussed by Rousseau tend to give insight into understanding the perspective of the social contract. Although, they all might contradict the ideas of other scholars and receive some form of criticism, they seem to reflect on some reality about the concept. The collective grouping of all individuals according to Rousseau, who enter into a civil society, is referred to as the sovereign. The sovereign may be though of as a person who has unified will. This is what is found in today’s societies. It is essential to understand this principle as the sovereign represents the general will of individuals, despite variations in people’s wants and wishes. The collective need or the general need of all individuals is what is known as the common good of all. This may seem true as he even uses examples to prove the idea that even large nations with many individuals may be governed by one sovereign.

Rousseau also states that the most essential role of the general will is to notify the establishment of the State’s laws. The laws and rules in a state must express the general wishes of individuals and must also uphold individual freedom and equality among citizens. This is what is required in all sovereign states, and this is what the principle of the social contract holds. Therefore, according to Rousseau, some form of government is required to perform the executive role of law enforcement and oversee the daily functioning of the State. It does not matter the type of government a state supports, what matters is that the government performs its essential roles. Hence, although Rousseau’s arguments might receive some form of criticism, his arguments on the first societies, the right of the strongest, the social compact, and the sovereign seem to hold true not only for states during his time, but also the modern state.

 

Works Cited

Wraight, Christopher D. Rousseau’s the Social Contract: A Reader’s Guide. London: Continuum, 2008. Print.

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Questions and Answers

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Q1. What is the best approach when developing a JHA?

In order to develop a JHA, a number of elements have to be present. These include developing a list of jobs at a facility, a list of hazardous jobs, integrating employees in the development process, reviewing loss-producing and injurious events, conducting a preliminary task review. Additionally, the best approach entails involvement of a JHA team to facilitate the development process. It requires a plan and assessment of tools and reviews by the JHA before implementation takes place.

Q2. Why is it important to educate management on JHAs?

Managers are leaders in an organization and should be integrated in the development process of a JHA. There is, therefore, great significance in educating them on JHAs in order for them to offer full support and commitment during the process of development. When management understand what the JHAs are all about, they will educate the rest of organizational members especially employees. Consequently, the process will be carried on effectively.

Q3: Why is a JHA important?

A JHA is important due to the roles that it plays. For instance, it assists in the detection of potential and existing hazards, as well as, the consequences of exposure. Additionally, it helps in the assessment and development of certain training requirements. It assists the supervision in understanding what personnel should know and how they should perform their roles in organizations. A JHA also helps in recognizing changes in equipment or procedures, which may have occurred. It helps in defining certain at-risk occurrences that might be happening. A JHA assists in outlining preventive measures required to control or modify related at-risk events.

Q4: What are the benefits of developing JHAs?

There exist numerous benefits of JHAs. JHA eliminate hazards that cause injury. Additionally, they provide instructions on how to perform roles within each stage for use in job training or orientation. They allow for refresher instructions on periodic jobs. JHAs ensure that personnel, teams and supervisors understand better how the entire job is performed. They also ensure that quality, job methods, and efficiency and effectiveness are enhanced. This in turn, leads to a reduction in the operation costs. JHAs guarantee that personnel are kept closely engaged in safety.

Q5: What are the major drawbacks of a JHA?

There are certain disadvantages associated with a JHA. The process of effective documenting and implementing takes a lot of time and effort. Additionally, the analysis takes considerable attention and time. This necessitates direct management support and commitment. There should be sufficient tools, equipment, materials and individuals for effective evaluation and observation in order for the entire process to be effective.

Q6: Why is it important to get employees involved in the process?

It is vital to get employees involved in a JHA process because the participation of employees’ participation is one of the key elements in any successful system of safety management. Personnel become highly receptive to changes when they are given the opportunity to assist in the decision to develop any change. Therefore, involving employees in the process of decision making helps the developer of a JHA to better comprehend the job. Employees’ involvement in the development process ensures that they are in a better position to comprehend the concepts involved and why it is essential to develop the JHA. This in turn, may lead to improved task and safety performance.

Q7: Why is it important to select a JHA team?

It is essential to select a team in the development and administration of a JHA because the process requires much time and effort. Minimizing the effort requires the selection of a cross-functional team to help in the development process. The processes involved include risk assessment, identification of events at-risk, and defining the steps and tasks. The selected team can facilitate an efficient process and ensure that a number of opinions and perspectives are taken into consideration. The supervision should be a part of the JHA team. The leader of the team should possess leadership skills.

Q8: What is the role of the JHA team?

The JHA team plays various roles such as giving advice and output to the JHA developer. Additionally, the team is responsible for evaluating the effectiveness of a JHA during investigations, site reviews, and employee discussions. The team also periodically evaluates all development of JHA to ensure that they use the current operational process. It reviews the JHAs especially when operational circumstances change. The team ensures a follow-up to ensure that new hazards do not occur. The team works with employees in order to comprehend what is expected of them and establish if they are satisfied with the new processes.

Q9: What are the possible causes of injuries for new employees?

New employees are exposed to a number of injuries. The causes of injuries include defective equipment, hazardous materials or tools, repetitive motion, insufficient safety guidelines, inadequate training, reckless co-worker conduct, and personal factors, which may make an employee express negative attitudes towards other employees.

Q10: Why is it important to define the JHA?

It is essential to define the JHA in organizations. A higher proportion of employees do not view the JHA as a process rather they think of it as a form to be completed. Lack of or poor defining of a JHA, it is considered as a meaningless program only established to fulfill some requirements. Clear definition of a JHA includes defining a job, task, hazard, risk, analysis, at-risk events, residual risk, and consequences of exposure. Defining the JHA ensures that there is clarity on what the JHA is all about for everyone in the organization.

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Public Observation

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Public observation

Observation is a technique used in qualitative research that assists researchers to familiarize themselves with a conventional or online setting by ethically and strategically recording whatever they hear or see in the research field. Public observation can be used as a qualitative technique in its own right or as a means of gathering data in grounded theory, ethnographic, case studies, and in action research approaches. When public observation is chosen as a formal research method, recording whatever information the researcher gathers becomes a critical component of the observation process and should begin from the earliest possible moment. In this type of technique, observers apply all of their senses in examining individuals in their natural settings (Creswell, 2013). Public observation entails prolonged engagement in a public setting, self-conscious and clearly expressed notations of how observation is done, tactical or systematic improvisation to establish a full understanding of the setting of interest, imparting concentration and attention in a manner that is standardized, and recording of observations. There are many reasons why public observation might be used, which may also serve as the benefits of using public observation. One of the reasons is when it becomes essential to research a phenomenon in its natural setting. In addition, when individual report data is likely to be distinct from the actual behavior is also a reason that might necessitate public observation. An appropriate example would be when the difference that exists between individual reports when compared to observed service delivery in health care settings. When the subject of interest is moderately unexplored, and only little is known on the behavior of individuals in a certain setting and when comprehending the meaning of a setting in a detailed manner is of significant value.

Objectivity in public observation might be affected as a result of biases of the researcher. This makes individual notes to be unreliable and invalid as they may lack independent confirmation. The accounts of the observer’s checks might be available through other techniques or from other researchers. This implies that bias undermines the reliability and validity of a research. Bias in observational research means deviation from, the truth. Susceptibility bias in observational research refers to variations in baseline features. Performance bias, on the other hand, is the distinct proficiencies of treatment. Detection bias in observation is the varied measures of outcome. A broader category of bias in observational research is selection, information, and confounding bias (Janesick, 2011). Selection bias arises from the lack of comparability between groups of study. It also stems from varying rates of research participation depending on individuals’ cultural backgrounds, socio-economic status, and age. Information bias stems from wrong determination of outcome or exposure. On the other hand, the confounding form of bias is a blurring or mixing of effects. This is related to the exposure of interest.

However, although bias may be common in observational research, there are ways that can be used to manage or avoid biases in research. Better planning is required before the commencement of the study. This is essential in order to ensure that the participants selected are a representative of the target group. To avoid information bias, the researcher should ensure that he or she records exact and correct information either the phenomena being observed or risk factors involved in the study. Avoiding this is essential as continued information errors result to measurement errors. Errors arising out of confounding factors should be considered to avoid subjectivity in the study. This is because the risk factor is not an element of the causal path between exposure and the outcome.

Public Observation in a shopping center

Public observation is an inexpensive and simple means of collecting research information. Public observation can be tailored to suit the subject or phenomena a researcher is observing. There are various subjects fit for observations including how people behave in shopping malls or centers (Tracy, 2011). This setting is unique as a researcher is able to study the behavior of people while shopping, both sellers and customers. The role of a researcher in this setting is to observe the behavior of individuals of different cultures and record whatever the researcher sees or hears in the context. Gathering this information is essential in analyzing data to describe the phenomena being studied. The researchers may apply the theories of related to the topic of interest, in addition to the observed information, to explain the findings of the study.

A public observation was carried out at Manhattan Shopping Mall on Saturday, March 30^th, 2013 as from 9.00 A.M to 4.00 P.M. The Mall is located in Manhattan Town half block from Penn Station, the Empire State Building, and Madison Square Garden. Because of technological advancement, the Mall is designed in the most technical and complicated way. Sophisticated items such as CCTV cameras were all over the place ensuring maximum security for all individuals. The Mall occupies space of about ten acres. There were a variety of things in the mall ranging from food products to clothing products and other household stuff. The arrangement of things in the mall was all in order to make it easy for customers to obtain whatever product or service they want to purchase or be served with. There were numerous and distinct types of ethnicity, as well as, different manners of how individuals act. This was an indoor shopping arena. On the day of observation, there were a lot of people in groups of three or more. People seemed to worry about themselves and their groups rather than other people. A lot of families had brought along their children to play children games and play around the water fountain. Individuals are exceptionally distinct in various ways such as views, perceptions, and cultures. This implies that for communication and adaptation to new cultures to take place, individuals should learn to understand norms, social control, and signs. These factors are essential as they influence almost all aspects of social life.

A sign in research refers to a symbol that conveys or stands for an idea (Tracy, 2013). In the Shopping Mall, for instance, signs are price tags, numbers, slow down signs, and many others that are used to represent an idea on some issue or concern. It is essential to note that all signs convey certain information despite their nature. They are the most common and make every person’s life a little easier not only in the shopping center setting, but also in other social settings. Additionally, gestures are examples of signs and have to do with the movements of the body. Although signs are found everywhere, some individuals have to learn in order to comprehend what they convey. For instance, in the public observation of the mall, there were numerous signs of sale outside the stores. The signs are exceedingly powerful as they persuade and attract customers or rather buyers to come in. Sale has a lot of meanings including what is being told and the price of the particular sale item. The signs are big and easy to see, thus, a trick strategy used by sellers to attract buyers. For example, people walked by a store and saw a sign indicating 20% to % off on Summer Apparels. People saw the sign as automatic and became curious. They went in the store and came out with bags looking happy.

People in the mall were from different cultures and race, and this could be explained by their physical features and characteristics that they possessed, as well as, the language they spoke. There was bargaining from customers on prices to reach an affordable price for them and sellers of products or services. Being a Saturday, a lot of activities were taking place and people were busy doing their stuff. The groups of individuals included members of family, friends, and relatives who had come to the shopping center for various reasons. Couples held hands when they came in while children were held by their parents when in the area. However, the researcher noted that although there were many types of people in the Mall, the people are likely to be from middle and high levels class status. This was illustrated by the cars that individuals came in, the mode of dressing and make up for women, as well as, the things they talked about. Additionally, the products and services from the shopping centre are of high quality and are, therefore, a bit expensive. This makes it difficult for people belonging to the lower level social class to afford goods and services from the center.

The role of bias, context, and the researcher played a significant role in ensuring that reliability and validity in the findings of the observation study were achieved and maintained throughout the research. The results are objective as a result of the researcher staying away from all types of bias in observational research. The role of the researcher in observation is to ensure that he records the real information while recognizing the potential factors that interfere with the objectivity of the study (Creswell, 2013). The researcher was able to avoid selection bias by choosing a public setting where different people with different beliefs and opinions go for various purposes. Selection bias was, therefore, avoided as the researcher chose participants randomly and used non-participant form of observation to study phenomena. Avoiding selection bias is an essential thing in research in establishing reliability and validity of a research. Lack of reliability and validity in a study implies that the findings cannot be trusted as they may after all be untrue. Additionally, in order to avoid bias, the researcher ensured that there is comparability between groups of study. Better planning was done by the researcher before the commencement of the study. This was critical in order to ensure that the participants selected were a representative of the target group. Although the researcher noted that the groups likely to be observed in the mall are from the middle and the upper social classes, this does not imply that the research is biased as these people are a representation of the targeted population.

Incorrect determination of exposure or outcome causes information bias (Tracy, 2013). It is crucial to avoid information bias as this also affects objectivity in research. The researcher ensured that the exact and correct information was recorded on the both the phenomena being observed and risk factors involved in the study. Avoiding this is essential as continued information errors would lead to result to measurement errors. Correct and exact information in this case implies that the researcher recorded what was seen or heard without being influenced by external factors or knowledge from other sources. Thus, the researcher’s findings are true and represent the real individuals’ behavior while in the shopping mall. The role of the researcher in avoiding information bias means that the researcher was also able to avoid measurement errors that could have occurred during the observation study in the Manhattan Shopping Mall.

On the other hand, possible errors that could arise out of confounding factors were taken into account by the researcher in order to avoid subjectivity in the study. As the risk factor is not an element of the causal path between exposure and the outcome, the researcher ensured that these were considered to maintain objectivity in research. Therefore, the researcher played a significant role in the selection of the public setting (context) and in the maintenance of objectivity throughout the study. This is what is required for not only researchers using the observational form of qualitative research, but also all researchers.

 

References

Creswell, J. W. (2013). Qualitative inquiry and research design: Choosing among five approaches (3rd ed.). Thousand Oaks, CA: Sage Publications, Inc.

Janesick, V. J. (2011). “Stretching” exercises for qualitative researchers (3rd ed.). Thousand Oaks, CA: Sage Publications, Inc.

Tracy, S. J. (2013). Qualitative research methods: Collecting evidence, crafting analysis, communicating impact. Chichester, UK: Wiley-Blackwell.

 

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Proposition 8

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Proposition 8

Proposition 8 was passed in 2008 and eliminates rights of same-sex couples to marry. The proposition is straightforward and simple and holds that only a union (marriage) is recognized and valid in California. This proposition is about preserving the institution of marriage rather than an attack on the same-sex relationship lifestyle (Rees, 2009). The proposition reinstates the definition of marriage to what a majority of citizens has acknowledged, and human history has comprehended the institution of marriage to be. The proposition protects the nation’s citizens from being taught of different meaning of marriage in the curriculum. Therefore, the main objective and aim of this paper is to describe in details why the position should be supported.

The proposition is essential in protecting marriage as an essential institution of society. While issues such as divorce, death, or other situations may prevent the ideal, the best conditions for children are to be brought up by a married mother and father. Marriage refers to the formal association between a woman and a man as acknowledged by law, by which the two, individuals become husband and wife. This is the typical definition of marriage recognized and approved by most people and institutions across the world (Peoples and Bailey, 2012). The first and an essential function of marriage, which is even recognized in religious teachings of Holy Books including the Bible and the Quran is the continuation of humanity. This implies the ability of men and women to give birth to ensure there are future generations that will also do the same. This is what is taught in such Holy Books that people of different generations believe in. Same-sex marriages and relationships do not enhance continuation in humanity unless the couple adopts children or lives with children from previous heterosexual marriages. However, the couple is not biologically capable of reproduction. Therefore, support of Proposition 8 is not only from a legal standpoint, but also from a religious and moral standpoint.

The institution of marriage between a man and a woman is more reflective than the contemporary could lead us to understand. It is a long-term commitment, which controls self indulgence, self gratification, and self-centeredness. This association effectively conditions and prepares individuals for society. As it restrains self-centeredness and promotes love, it becomes the basis for social order. Therefore, marriage is an essential institution in society. Marriage is a physical, emotional, and spiritual association between one woman and one man. The relationship is emotional in the sense that the male and the female both have distinct attributes come together and assist, nurture, and care for each other. In terms of physical relationship, marriage is procreative. This means that a man and a woman blend together to create what one cannot create on his or her own. These are children, the products of a marriage. Spiritually, individuals are created for this relationship, which puts the interest of the other above self interests (Jackson, 2010). Thus, understanding marriage from this perspective enables individuals to perceive and view marriage as establishing peace and order in society. Marriage in this sense is the cornerstone of social and moral order. In fact, there is no society that can enjoy harmony and peace if they do not follow a true order of morals. The marriage institution offers the only suitable basis for enabling this order. This provides a basis for supporting Proposition 8.

According to Peoples and Bailey (2012), social order in society implies that there are no conflicts in society as a result of unlawful and immoral relationships. A major concern is the fact that where other forms of marriages have been allowed, there are always conflicts that arise due to strong opposition. For instance, there are always demonstrations from religious institutions, individual citizens, and other organizations that are against same-sex marriages and immoral relationships in society. The question of morals, therefore, arises. Although human beings have no right to judge morals as the supernatural beings, they do this based on the teachings of Holy Books that are associated with the supernatural beings.  Therefore, their ruling is justifiable. There is nothing better than leading a peaceful life in one’s own society across the world. Another reason that might appear a minor one, but an essential one in supporting only marriage between a man and a woman has to do with sexual satisfaction. Most married men and women find sex emotionally and physically satisfying than couples in same-sex relations and marriages (Peoples and Bailey, 2012). Protecting the marriage institution is, therefore, an essential task in society. This implies that people should not allow issues that might affect the marriage institution to occur at whatever circumstances.

One of issues that harm the institution of marriage is allowing same-sex marriages. Those who support same-sex marriages solely base their arguments on the emotional aspect while the aspects of the natural family and procreation (Jackson, 2010). This is the starting point of the process that undermines marriage and producing harmful effects on children in these families. These harmful effects affect the society as a whole. Marriage as an institution is distinct and unique as it is the only institution which joins men and women together in order to create a family. The family serves wider societal functions. Marriage requires a husband and a wife as the unions are essential in making a new life and connecting children to both their parents. Those that advocate for recognition of same-sex marriages as legal unions argue that this does not affect the traditional marriage. However, this has a variety of negative effects. It is essential to note that same-sex marriages cannot coexist with traditional marriages. It creates conflicts for people in society, either or not they are religious who believe in law and in the traditional man-woman marriage (Jackson, 2010).

Therefore, legalizing same-sex marriages will have negative effects especially on the future generations since they will be taught in schools that marriage under law includes same-sex marriages. This will then result, in an increase in the degradation of the natural and nuclear family (Jackson, 2010). Redefining the marriage institution in society implies redefining family. Altering the concept of family implies altering the pattern and definition of patterning. The growth and stability of future generations will be affected as the type of family influences the psychological and biological ways of children. Additionally, it has been proven that the implausible adaptability of children is made possible by family structures, which facilitate the most positive environments for the future generations (Jackson, 2010). These are the heterosexual marriages that most organizations including the religious ones advocate and fight for in society. All the above discussed reasons form the basis for supporting Proposition 8. There is, therefore, a need to organize, strategize, and prioritize the preservation of the meaning and functions marriage.

 

References

Jackson, H. R. (2010, September 6). Same-sex marriage will hurt families, society – CNN.com. CNN.com International – Breaking, World, Business, Sports, Entertainment and Video News. Retrieved April 8, 2013, from http://edition.cnn.com/2010/OPINION/08/07/jackson.same.sex.marriage/index.html

Peoples, J. G., & Bailey, G. A. (2012). Humanity: An introduction to cultural anthropology. Belmont, CA: Wadsworth, Cengage Learning.

Rees, J. (2009, January 24). Proposition 8: Eliminates Right of Same-Sex Couples to Marry – California State Government. Smart Voter by the League of Women Voters. Comprehensive, Nonpartisan Election Information. Retrieved April 8, 2013, from http://www.smartvoter.org/2008/11/04/ca/state/prop/8/

 

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Project delivery methods and VM

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CHAPTER ONE

INTRODUCTION

Historical Development

History of Project Delivery Systems

The history of project delivery systems dates back in 1795 BC when the code of Hammurabi was established. In 40 BC during Renaissance, the first document of Design and construction was developed. In 1420, Brunelleschi, a design builder emerged. In 1456, Alberti a specialist in building designs communicated design intent through drawings. During the industrial Revolution, there occurred the rise of professional societies in 1850. This was followed by the legal separation created by Miller Act in 1935. As from the 1950s, there have been significant changes and advancement to the delivery systems as this is the era related to the information revolution. The first personal computers developed in the 1950s and the internet in 1969 have played a considerable function in this advancement. In fact in 1993, the DBIA was founded.

The Master Builder was the first project delivery system. The Code of Hammurabi represented the obligation of construction and design to society. The Vitruvius provided documentation of construction and design practices. On the other hand, Brunelleschi of 1377-1446 was a quintessential design builder and innovator. During the rise of professionalism, Alberti introduced the first intentional separation of art from the craft. Additionally, he developed architecture as a profession different from the science of construction and engineering. From the 15^th to the 19^th Century, architects maintained roles for both construction and design. Industrial Revolution brought a number of impacts in the project delivery field. For instance, there was task specialization, division of labor, entrepreneurship, need for capital, and the ability to communicate design intent. When professional societies emerged, there was much professional specialization, increase in specialized skills and knowledge, and ethical standards of practice. In addition, there was advocacy and promotion of professional markets and interests. As a result, there arose issues of conflict of interest. The Miller Act introduced in 1935 ensured there were public laws of contradicting that mandated separation of design from contractor selection and construction solely on cost. Furthermore, there were professional licensing requirements.

There are four delivery methods with various distinct features and characteristics. The first method is the Design-Bid-Build. This approach has three phases that are linear; design, bid, and build. There are three prime players in this method, the owner, constructor, and the designer. The separate contracts in this approach are the owner to the constructor and the owner to the designer. The responsibilities in this method include program, management, preparation of specs and plans, normal services, and sub construction. Another approach is the Multiple Prime. The three linear phases also apply in this approach. However, there are multiple players; owner, designer, and multiple subs and many contractors. The contracts are owner to the designer and owner to multiple prime specialty contractors. The owner carries own responsibilities related to finance, program, and management. The designer performs all normal services while the prime specialty subs are responsible for providing independent construction services to the owner.

The CM-at-Risk is another method of project delivery. It has the three phases mentioned earlier or may be fast tracked. The main players include the owner, designer, and the CM constructor. The contracts are the owner to the Cm constructor and the owner to the designer. The owner performs program and finance functions while the designer carries out all normal services. On the other hand, the CM constructor is charged with the responsibility of project management and pre-construction services, coordination of designs before construction and is prime with the subcontractors. The other approach is the Design-Build. This involves the integrated process-overlapped construction and design. The approach is frequently fast tracked, and there are two main players involved, the owner and the design-build entity. The entity may take on many forms, and there is only one contract in the approach that is the owner to design-builder. In this method, the owner is responsible for performance requirements, program, and finance services. The designer-builder does design and construction and may also include post construction and programming services in the list of duties. This implies that the design-builder may expand services to include finance and programming (Hall, Giglio, and American Institute of Architects, 2010).

History of Value Management

Value management originated from the United States as a consequence of shortage of shortage of materials and components in the manufacturing sector during the Second World War. The founder of value management, later known as Value Analysis, Mr. Lawrence Miles, of the General Electric Company was highly responsible for the development of the method in 1942. Since then, value management is highly accepted in various industries. Currently, the Government of the United States and many other nations including Japan, Korea, the United Kingdom, Saudi Arabia, Australia, amongst others implement value management method to be used for their capital work projects. Value management was formally introduced in Malaysia in 1986 by Association Professor from Canberra University in Australia known as Professor Roy Barton. This was made possible by the Quantity Surveying Department in the Universiti Teknologi Malaysia (UTM). Additionally, Dr. Mohd Mazlan was honored to be among the participants in the training program of Value Management.

In 1990, Mazlan made a research visit to Australia to take a look into the approach of value management and its process of implementation under the scholarship of the Commonwealth Science Council. In 1999, IKRAM and JKR organized the first National Seminar that was officiated by Tun Daim Zainudin, the Minister for Finance in Malaysia during the time. During his speech, Zainudin strongly urged the industry to take up value management on board because of the benefits associated with the concept. It is essential to note that Mazlan was the only speaker for the seminar that lasted for two days.

The subject of value management was taught at some of the main public universities. For instance, Housing, Building, and Planning, Universiti Sains Malaysia in 1991, Universiti Malaya in 1996, Department of Quantity Surveying, Universiti Teknologi Malaysia in 1993/1994, The Faculty of Architecture, Planning, and Surveying Universiti Teknologi MARA in 1997, Polytechnic in 2003, Universiti Islam Antarabansa in 2000 and others including Private Institutions. Because of the positive response from the manufacturing and construction industries, the Institute of Value Management of Malaysia was registered in May, 2000 and was formalized with twenty founding members. Presently, the membership of the Institute has rised to over 200 members. In March, 8, 2010, Mazlan received an invitation by Economic Planning Unit of the Department of the Prime Minister to present and brief the National Economic Council chaired by the Prime Minister of Malaysia, as well as, other senior ministers on value management application and the benefit associated with it. The Prime Minister declared the VM as among the supporting pillars for the country during the following day.

Various terms such as value control, value engineering, and value analysis are used to describe the principle of value management (VM). VM was developed because of inadequacy of components and materials that faced the manufacturing industry in North America in the Second World War. Value management refers to both processes of solving, as well as, seeking problems. As a system of problem seeking, VM identified problems likely to arise in the future and establish or develop solutions to the problem. Additionally, VM is a proactive management system of solving problems that makes maximum functional value of a project by managing its growth and development from the concept phase to operation phase of a project through multidisciplinary value group or team. Value management makes client value system clear at the conceptual stage of a project. In doing this, it seeks to achieve a functional balance between quality, cost, safety, reliability, and aesthetic. The system could be introduced at any phase in the project’s life cycle, but it is beneficial if introduced right from the project’s pre-construction stage before a commitment of any design is undertaken.

The techniques and tools of value management drive stakeholders to give answers to questions that might not be normally considered if other systems are used. Value management identifies items of costs that are unnecessary in a project and establishes alternative means of achieving similar functions at the lowest cost possible, without negatively influencing the quality, image, functional performance, aesthetic, and safety of the structure while at the same time improving the schedules of the projects. Programs of value management usually take the form of a workshop arrangement where the client, suppliers, contractors, specialists, manufacturers, and other stakeholders engaged participate and give suggestions for discussions and investigations. This makes designers and consultants comprehend what a client will accept as standard or yardstick to measure the result of their investment.

As a result, the client is projects with projects they can operate, occupy, and maintain at their chosen location and time without contradicting the nee3ded quality, aesthetic, function, and images that have accepted comfort. If there is no clarity of the client value system, designers and consultants only focus on requirements not intended by a client. Therefore, chance for maximizing design, concept, maintenance, and construction might not be achievable. However, the value management session or workshop is distinct from the ordinary project meeting as the aims of each are different.

Value management refers to an organized set of processes and procedures, which are introduced to facilitate the function of services, designs, systems, or facilities at the lowest cost of valuable ownership, taken cognizance of the value system of the client for quality, durability, reliability, time, aesthetic, conformance, cost, and time. The methodology and approach is about being innovative, creative, and susceptible to consensus, changes, and facilitating the use of good communication, analytical, resources and togetherness. Value management program is usually carried out in the systematic stages of concept, design, feasibility, design development, construction, operation, and occupancy phases of the projects. The work operations are tactically done in the job plan. This refers to the frame works, which guide the methodical maneuvering of ideas to ensure that options or alternatives are not omitted unnecessarily.

The VM job plan refers to an organized framework that is intended to guide the procedures of analyzing the projects, services, products, or components under investigation to ensure the development of numbers of practical functional and economical alternatives that meet the requirements of clients. The stringent adherence to this framework ensures that there is no omission or over-sighting of steps or phases of project development. The process of value management can be divided into a number of phases. However, the main activities in each phase still holds regardless of the number of processes in each phase. In many cases, the steps are broken down into five main stages (Davies and Davies, 2011).

Thesis Structure

There are existing practical and theoretical studies and research on the value management and project delivery methods especially in the United States of America since the development of value management in the State. However, the number of existing studies in value management and project delivery methods is not as adequate as required. Hence, the main aim of this Master research is to examine and assess the present situation of VA and project delivery methods in construction industries to find out the answers to the research question: What is Control of Delivery Time in the Construction Projects through the Application of Value Added Engineering or Value Management?

CHAPTER TWO

LITERATURE REVIEW

Definitions of project Delivery Methods and Value Management

Project delivery methods refer to system used by an agency for organizing and financing design, constructing, operations, and maintenance services for a facility or structure by getting into legal treaties and agreements with one or more parties or entities. Every person responsible for the adoption of a construction project must make an essential and early decision concerning the approach by which the project will be constructed and designed. This is what is referred to as the project delivery method. In recent years, the decision has become more difficult since alternative delivery approaches have been developed to address potential weaknesses in earlier methods. The design, programming, and design of essential public buildings necessitate the coordinated attempts of a large number of organizations and professionals. Vital to the successful delivery of a complex facility or building project is effectively and efficiently guiding the diverse parties into a responsive and productive force, which represents the interests of institutions, public agencies, and tax payers(Hall, Giglio, and American Institute of Architects, 2010).

On the other hand, Value management refers to an organized set of processes and procedures, which are introduced to facilitate the function of services, designs, systems, or facilities at the lowest cost of valuable ownership, taken cognizance of the value system of the client for quality, durability, reliability, time, aesthetic, conformance, cost, and time. The methodology and approach is about being innovative, creative, and susceptible to consensus, changes, and facilitating the use of good communication, analytical, resources and togetherness. Value management is concerned with improving and maintaining equilibrium between the stakeholders’ needs and wants and the resources required to satisfy the needs. The value judgments of stakeholders differ, and value management reconciles the varying 1priorities in order to deliver the best value for all stakeholders.  Value management is based on rules and principles of defining and adding measurable value and focuses on objectives and goals before solutions and is concerned with function to facilitate innovation. Value management distinctly joins within an incorporated framework, which is a value based management style; a positive model to individual and group or team motivation. It also creates an awareness of the organizational environment, as well as, the effective application of proven tools and methods.

Value management can also be defined as the application of techniques of value analysis for improvement of business efficiency and effectiveness. Value management program is usually carried out in the systematic stages of concept, design, feasibility, design development, construction, operation, and occupancy phases of the projects. The work operations are tactically done in the job plan. This refers to the frame works, which guide the methodical maneuvering of ideas to ensure that options or alternatives are not omitted unnecessarily (Davies and Davies, 2011).

Importance of applying Project Delivery Methods

There are a lot of advantages associated with the application of project delivery methods. A construction project entails varied types of group members. General contractors, architects, construction laborers, and the agency involved in overseeing the project have distinct roles to play. Complex construction projects take a great deal of coordination among members participating, and some kinds of project delivery methods are more effective at enhancing communication. One of the vital advantages of applying the delivery methods is that they are bound by laws and; therefore, parties are determined to abide by these laws. Additionally, construction progresses in one area as another section is still being designed as units work together as a team. Additionally, applying these methods ensures that communication is highly enhanced. Applying the methods ensures efficiency and effectiveness in time, cost, and quality. The methods follow standard engineering and architectural practices for labeling and symbols where appropriate. This has significant benefits for all construction agencies and clients. Project delivery methods enhance trust and teamwork among participants (Hall, Giglio, and American Institute of Architects, 2010).

Importance of applying Value Management

Value management is important in construction for a number of reasons. Value management is used throughout. Usually, a project has a series of sessions or workshops incorporated with the project program starting at project description, strategic level, and going to the construction level. In the operations phase, skills and knowledge gained help in improving future projects in addition to the use of, the new facility. Value management is associated with cost cutting and value improvement. This implies that it improves the understanding of requirements of clients, as well as, their business needs. This is essential especially to the current concept of managing value in the construction industry. Poor or lack of clearly stating the client’s instructions results to poor value. All through the lifecycle of the project with wasted resources in time management, production and design time, as well as, the cost of change. Therefore, having clear directions from the client requires skilled facilitation to change any misconceptions that might arise. Having external challenge is essential in gaining improvement in the construction industry. Up to date, all tactical and strategic workshops, external facilitators to the team area involved. This ensures that there is no unwarranted commercial or political pressure to bear on the team involved in the project. In addition, this also ensures that uncertainty areas are established and dealt with as required. Value management provides a structured framework on how the project is to be undertaken. It is, therefore, an essential tool that needs to be applied.

Value management is used to establish the best alternatives of design for various projects. It reduces costs on existing projects. Value management increases reliability, availability, improves quality, and enhances customer satisfaction. VM improves organizational performance, the economy, the environment, and schedule. This is possible through the conventional development practice. Value management reduces risk and is a powerful tool used in the identification of problems and establishes recommended solutions. The requirements of value management are based on realistic measures of effectiveness. Value management ensures that there is acceptance and implementation of ideas and options based on cost reductions. VM considers cost budget increases based on cost reductions of the project’s life cycle (Davies and Davies, 2011).

How to apply Project Delivery Methods

Preliminary Cost Plan: This is known as the project registration stage and entails the wider overview with the initial allocation of cost. Cost monitoring is undertaken at this stage and progressively during the tender, design, and the construction process.

Master planning Stage: This involves the development of a master plan that indicates the functional associations between buildings, access to the site and within the site, staged construction, circulation, and engineering. In this stage, the environmental assessment studies are carried out. Additionally, there is a need for application of IPA and Ministerial Site designation if required.

Schematic Design and Documentation: During this stage, there is monitoring of cost throughout the design to guarantee that the limit of cost is not exceeded.

Tender cost Plan: During this phase, the sum of tender is determined depending on any agreed upon pre-construction variations.

Developed Design and Construction: This is the actual action plan phase (Hall, Giglio, and American Institute of Architects, 2010).

How to apply Value Management

Information phase: The activities in this category are into the scope and logistics. However, there are times when this stage is rushed to complete because value management is frequently seen as a way of resolving arising problems or giving direction. This should be highly restricted as the ultimate success of VM depends on covering the activities of the stage. Activities in the scope category are related to establishing the bounds and focus of the VM. Data gathered in this stage is assessed and consolidated and forms the foundation for all subsequent analysis. The objectives of the VM are outlined, and there is the identification and preparation of background information in the scope category. On logistics, there is the formation of value study group comprising of technical experts. Additionally, there is the formation of study timetable. Identification and gaining of commitment from various stakeholders involved and the nomination, invitation and briefing of participant are undertaken here. The venue is arranged, and the distribution of consolidated background material is done at the logistics category of the information phase. The information stage gives the opportunity to examine the overall project rationale.

Function Analysis Phase: In this stage, roles are identified and evaluated. The tools and techniques established to identify and evaluate functions at this phase include the Function Analysis System Technique and the Functional Hierarchies. The tools start with the general functions before proceeding to the specific functions. Functional evaluation is essential and entails an evaluation of the joining of integrated and interdependent components that form a collective entity and serve common interests.

Options/Ideas Phase: This is the stage where alternatives of ideas and options are presented in order to obtain improvement in value. During this phase, lateral reasoning is encouraged to generate as many ideas as possible even when the ideas may seem illogical. Several ways have been identified to structure the value study to promote the generation of ideas. However, the method depends on the number of individuals involved in the study, as well as, the project’s nature.

Evaluation Phase: each and every option or idea generated in the previous phase needs to be considered by the team as a whole to make decisions on the ones to be analyzed in detail. Options and ideas are analyzed in terms of the benefits and disadvantages they give to the project with regard to value improvement. Tools that might be used in this stage to undertake evaluation may include the Evaluation Matrices.

Action Plan: This phase involves the preparation of the Action Plan. This summarizes the results and gives a framework for substantial tasks on evaluation and decision making. The action plan represents the consensus of options of the value study participants and outlines ideas, which show the highest potential for improvement of value. The main elements included in this phase are a list of all activities to be carried out, identification of individuals responsible for each activity, indication of time and venue for the project.

Analysis and Reporting Phase: This is the last phase in the application of value management. The requirements for value management differ significantly depending on the project phase at which the study is undertaken. This implies that the requirements vary depending on whether the project is at strategic or concept stage (Davies and Davies, 2011).

When Project Delivery Methods should be used in Construction

Various types of project delivery methods are used in construction and have been proven to be successful. Project delivery methods provide a set of construction drawings, as well as, technical specifications, which describe the required functions to be undertaken and materials required in undertaking these roles. Therefore, project delivery methods should be used in construction when these specifications are needed. In addition, the methods follow standard engineering and architectural practices for labeling and symbols where appropriate. This is beneficial for all construction agencies and clients.

Project delivery methods operate under legal circumstances. This, therefore, implies that the models should be applied when there are legal requirements among parties involved in the construction contract. Furthermore, the methods may be used when there is a need for skilled and qualified team, as well as, when a strong relationship between builders, designers, and owners is required. This is because project delivery methods ensure that all these aspects are enhanced during the entire project. Trust and teamwork are more essential than mere pieces of paper. This is the reason why project delivery methods are preferred in construction.

When there is a requirement for cost cutting and time saving in construction, then project delivery methods are used. This is enhanced by selecting the delivery project that can ensure that the project time is not wasted, and that costs of the project are at a minimum. Project delivery methods are used in construction when participants emphasize on collective decision-making. Applying the project delivery methods ensures efficiency and effectiveness in time, cost, and quality. Thus, if all these are desired by parties involved, then there is no hesitation to using the delivery methods to achieve maximum benefits for all parties (Gransberg, Shane, National Research Council (U.S.)., National Cooperative Highway Research Program., American Association of State Highway and Transportation Officials., & United States. (2010).

When Value Management should be used in Construction

Value management is an essential component of the entire process of project delivery. Value management is used when there is a need for scheduled and planned on projects to enhance efficiency and effectiveness in the delivery of services. Value management starts early in the process of design and continues into the construction process. This has positive, maximum impacts on the project schedules. The emphasis of value management is placed on achieving maximum value within the budget. Improved value may be reflected in various ways depending on particular project requirements. This comprises of improved quality, flexibility, function, maintainability, expandability and reduced cost of the entire construction process. If all these are desired, therefore, value management can be used as it produces the best results.

Value management ensures reductions in costs or increases cost savings. This occurs when the required functions and features of a project are delivered at a reduced budget of the project. This is only achieved when value management is used in construction. However, VM must not be used merely as a mechanism of cutting costs at the expense of required features and functions. VM considers cost budget increases based on cost reductions of the project’s life cycle. Value management ensures that there is acceptance and implementation of ideas and options based on cost reductions. Additionally, the requirements of value management are based on realistic measures of effectiveness, as well as, value improvement.

It is essential to note that value management can be used at any phase of the project. The greatest resource savings and benefit are, however, obtained early in the conceptual and development phases. This is the level where the fundamental information of the intended facility or building is developed, but before the development and main design resources are spent. In addition, value management may be applied more than once in the project’s life cycle. Initial application of value management assists in getting the project commenced in the appropriate direction and repeated uses help in refining the direction of the project based on changing or new information. The later that a VM study is carried out, the higher the cost of change will be in implementing the improvements. Value management may be applied in the design planning stage to define the objectives and goals of the project, functions, requirements, criteria of design, and the scope of work. It is used in the design stage to develop detailed VM proposals and options to the project’s design, as well as, to define materials needed and ensure that the proposals are implemented. Value management is used to check the conformance to standards, codes, specifications and to ensure that proposals are implemented appropriately (Dallas, Clackworthy, and Great Britain, 2010).

Procedures for implementing Project Delivery Methods

  

References

Hall, D. J., Giglio, N. M., & American Institute of Architects. (2010). Architectural graphic standards for residential construction. Hoboken, N.J: Wiley.

Gransberg, D. D., Shane, J. S., National Research Council (U.S.)., National Cooperative Highway Research Program., American Association of State Highway and Transportation Officials., & United States. (2010). Construction manager-at-risk project delivery for highway programs. Washington, D.C: Transportation Research Board.

Davies, R. H., & Davies, A. J. (2011). Value management: Translating aspirations into performance. Farnham, Surrey: Gower.

Dallas, M., Clackworthy, S., & Great Britain. (2010). An executive guide to value management. London: Stationery Office.

 

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Primary Source Analysis

Vasco da Gama: Round Africa to India, 1497-1498 CE

According to Halsall (26), the residents of India have a yellowish-brown complexion. They eat gazelles, seals and whales, as well as, the roots of herbs. The mode of dressing includes skins and sheaths. They have plenty of olive wood. Their dogs are similar to those in Portugal, in nature. Similarly, according to Halsall (26), the birds in India resemble those of Portugal and are varieties including gulls, cormorants, turtle doves, crested larks and many others. The climate in India is pleasant and conducive as it enables supports multiple plantation. There are captives that are small in nature just like Sancho Mexia. In India, bees deposit their honey at the foot of the mounds within the bushes; therefore, people gather honey in the sand. According to Halsall (26), people from the natives eat whatever is available and dress accordingly. There is a variety of natives, as well as, a diversity of merchandise in this country.

The goods available for exchange from the natives include shells, which they wear as ornaments in their ears. In addition, there are foxtails that they use to fan their faces. The natives value copper as they wear small beads of the metal in their ears. The Negroes also consume seal and roots. The Negroes are of high spirit and capable of violence. This is because they wounded the captain-major. According to Gama (27), this occurred when Fernao Velloso came alongside the vessels after having a meal with the Negroes and began to shout that the Negroes were in the bush. The Negroes came running after their boat and wounded four people including the captain-major. According to Halsall (27), all of this occurred because they looked at the Negroes as men of low spirit and quite incapable of violence. This, therefore, had made them land into their place without arming themselves. They had to return to their ships.

Ibn Battuta arrives at the city of Mali

 The Capital of the King of Mali comprises of the blacks, though there are quarters occupied by whites. The qadi of Mali was a Negro, a pilgrim and a man of good character. The interpreter was also a black and one of the principals of the blacks. The people are kind as they gave gifts of foon to Ibn Battutta, as well as, treting him with the greatest generosity. The food consumed in Mali comprises of gruel made of a root, which resembles colocasia. People prefer this food to all other meals (Halsall, 323). The medicine ‘baydar”, made of vegetable roots, mixed sugar, and antiseed, and stirred with water is used to treat and cure illnesses. Mansa in Mandingo means sultan and is used to refer to the kings. In commemoration of respected people, influential people attend the ceremony. The sultan presents gifts of bread, sour curds and beef fried in native oil rather than robes of honor and money. This is what the sultan offered Ibn Battuta.

In Mali, the king holds audiences in the palace yard on certain days. The ‘pempi’ is a platform under a tree, which is carpeted with silk and cushions. A pavilion is also established surmounted by a bird in gold almost the size of a falcon. During these occasions, the king’s dress code is a red tunic that is velvety, and which is made of ‘mutanfas’ (European fabrics). The king is preceded by his musicians. According to Harsall (326), two horses and two goats are brought and serve as a protection against the evil eye. The Negroes are submissive to the king and swear by his name. The king is highly respected by the residents in this country. There are festivals of the sacrifice and the fast-breaking. During these events, the sultan takes his seat on the ‘pempi’ after the prayers of mid-afternoon. Magnificent arms are brought by amour bearers. Four amirs stand at his head to drive away the flies. The rest of people such as the commanders, the preacher, and qadi sit in their usual places. Dugha (the interpreter) comes with his wives (four in number) and slave-girls, wearing beautiful robes, as well as, fillets of gold and silver.

Dugha plays an instrument made of reeds and chants a poem to praise the king. The women sing along with Dugha. There are thirty youths during this occasion who beat drums, as well as, pupils who turn wheels in the air just like the natives of Sind. The king then presents a gift to Dugha. The commanders give thanks to the sultan, and in the next day, the commanders give Dugha a present. According to (Halsall, 338), during every Friday Dugha carries out a similar ceremony. During the feats days, poets recite their poems in front of the sultan after Dugha finishes his show. After the recitations, the chief of the poets climbs on the ‘pempi’ and lays his head on the king’s lap and on his shoulder. This practice is an old custom among the people in Mali before the introduction of Islam.

Ibn Battuta judges the people in Mali as having admirable qualities are just. The king has no mercy to anyone who is guilty of his actions. The security in the country is tight meaning that there is no fear among travelers and in habitants of the country. They observe the time of prayers and attending congregations. They observe the Friday prayers and wear clean white garments on these days. They have a zeal for learning and memorizing the Koran. The poor quality of people in this country as observed by Ibn battuta is that women servants and slaves go in front of everyone naked. The eating of carrion, asses and dogs according to Ibn Battuta, as well as, the custom of putting dust on their heads as a sign of respect is a poor habit (Halsall, 335)

 

Works Cited

Halsall , Paul . “Vasco da Gama: Round Africa to India, 1497-1498 CE .” Modern History Sourcebook: 5.4 (1998): 26-40. Print. http://www.fordham.edu/halsall/mod/1497degama.asp

Halsall, Paul . “Ibn Battuta arrives at the city of Mali, capital of the kingdom of Mali .” Medieval Sourcebook 6.1 (2001): 323-335. Print. http://www.fordham.edu/halsall/source/1354-ibnbattuta.asp

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Poor Leadership

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Introduction

Leadership is very essential in all organizations or institutions for effectiveness and efficiency in operations. However, for smooth operations of organization, leadership should be employed in the right manner, failure to which might lead to problems in the organization. According to Van and Suino (2012), persons with poor leadership skills and performance must never be allowed in the management of an organization, as it will only be a waste of time and resources. Poor leadership in organizations can bring about negativity, inconsistency, and unpredictability. This diminishes the motivation of workers which impacts negatively on their performance leading to failure of the organization as a whole (Klubeck et al. 2010). Dysfunctional leadership arises as a result of lack of leadership skills, and people in the management or supervisory authority may make incompetent decisions which are irrational in nature. These decisions may affect a single unit in the organization, which in the long run may cause a challenge to the other units as they may be dependent. Poor leadership hinders maximum communication and teamwork in organizations. Disrespect and lack of concern for staff may impact negatively on the performance of the organization (Van and Suino, 2012).

Issues in the scenario

There are issues involved in the scenario that require attention, failure to which other problems may arise in the future. In this situation, there is the lack of concern for employees as exhibited by Captain Watts when Lieutenant complains of his domestic problems. The character of lack of concern is associated with poor leadership skills. In addition, Foster Major’s decision is made without notice to Lieutenant Pete Bench and this shows how disrespectful Foster is to Pete Bench, as he is aware of Pete’s situation. Major, who had hired Pete Bench, is nowhere to be found in this discussion, and this shows that the leadership and supervisory department in this institution is incompetent. Communication is poor in the institution, as Watts does not listen to Pete Bench when he tells him about the incompetence of Sylvia Brown. Instead, he gets very frustrated and tells Pete not to speak in a derogative manner about Brown. Bench situation of talking in that manner appears is justifiable, as Watts is being unfair in his decision. Watts even threatens Bench that he will crucify him, which in this case means getting fired. It seems like there are other issues involved in Sylvia’s switching of the position with Bench. Watts tells that Pete Bench that he is not protected by the union contract and therefore, has no rights to file grievances.

Root causes of the issues

All the key issues related to this organization stems from the problem of “poor leadership”. The leadership of both Foster Major and Captain Watts is weak and poor. In any scenario where there is poor leadership, chaos always occurs. This is why there occurs a conflict between Captain Watts and Pete Bench. Lack of concern for by Captain Watts may be because of the fact that he is not aware of Pete’s family problems, but this does not justify his actions, as he should have listened to him. As a supervisor, he should know all issues concerning his employees. Lack of or poor communication among people in the organization can bring about serious problems for the organization. For any issues to be resolved, communication is very essential as it is the first step for raising the issues (Van and Suino). Incompetent decisions are also another root cause of problems in the organization. Immediate decisions without notifying the employee may cause conflict among the stakeholders of the organization. Another root cause is the question of the union contract for this department as when Pete tells Captain Watts that he will file a complaint with the union, Captain Watts tells him that he has no rights. It appears that Captain Watts is not aware of the union contract, making him incompetent for the supervisory task. Watts is not familiar with the clear terms of the union contract.

Solutions to resolve the issues

The people with leadership tasks should ensure that they have the required competence in performing their tasks (Klubeck, 2010). This will ensure that operations are run in a smooth way fit for all the staff in the organization. In addition, there should be communication at all levels in the organization to avoid conflicts that may arise due to lack of it. There should be professional ethical values established so as everyone in the organization acts in accordance to them. For instance, use of offensive language by Bench, although it might seem justified should not be allowed in the organization. In addition, terms of the union contract if ever it exists, should be clear to all the people in the police personnel. All these will deter future conflicts not only in this organization, but also in other organizations around the world.

Risks and cost-benefit of solutions

All the above solutions given do not cause any risks, but are beneficial to the staff and the organization as a whole. The benefits will be people will work smoothly as no conflict will occur. In addition, communication and good leadership will bring about teamwork which will lead to improvement in performance of the organization as a whole.

Recommendations

There should be an immediate discussion between Foster Major and Captain Watts to decide on the issue as it affects one of their loyal employee, Pete Bench. The meeting should also emphasize on the issue of shifts among employees, as it appears the main cause of the problems in the organization. Ethical training to all staff should take immediate effect as well as implementing disciplinary actions for those that fail to act as per the rules and regulations of the organization.

Student Sample paper

Eric

Eric states the issues in the scenario, but in a very brief form without giving arguments to support the issues. The same case applies to the root causes. Though well stated, they may not give the reader a grasp of the major causes of issues in the scenario. Support of facts is very important as it gives the reader a broader understanding on issues being discussed. Although the solutions that Eric gives for bench are helpful, they might not be the best solution as taking on a leave may not change the situation. However, the solutions for Watts are applicable, and supported by research. These might lead to smooth running of operations in the organization.

Cheryl

Arguments in each section are well supported by examples from the scenario, as well as research from other works. This makes the reader have a clear idea of whatever is happening in the scenario. Cheryl elaborates on each aspect in detail and offers arguments that area clear and can be easily understood.  The solutions given are suitable if the performance of the organization is to be improved. For instance use of quotes such as Per Iannone, et al. (2009): The move of one assignment to another, is sometimes used to remove an employee from an unwholesome environment to one of lesser exposure . . . such treatment is more injurious (if not more immoral) than the conduct it is designed to cure” (p. 180), is very helpful for leadership purposes in organizations.

References

Iannone, N.F., Iannone, M.D. & Bernstein, J. (2009). Supervision of Police Personnel (7th

ed.).  Upper Saddle River, NJ:  Pearson Education, Inc.

Van, W. M., & Suino, P. (2012). Leadership in public organizations: An introduction. Armonk, N.Y: M.E. Sharpe.

Klubeck, M., Langthorne, M., & Padgett, D. (2010). Why organizations struggle so hard to improve so little: Overcoming organizational immaturity. Santa Barbara, Calif: Praeger.

 

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Operations Management

Operations management is an area of management, which focuses on the processes of overseeing, designing, controlling the production process, and restructuring business operations in the production of services and goods. Operations management involves the role of ensuring that business operations are effective in terms of meeting consumer requirements and efficient in terms of utilizing a few resources as required (Mishra 12). It focuses on managing the process, which converts inputs into outputs. This is the field concerned with the management and direction of the technical and physical roles of an organization especially those relating to the development process, production, and manufacturing. The programs involved in this field comprise instruction, in rules of overall management, production and manufacturing systems, management of equipment maintenance, plant management, industrial labor relations, production control, and strategic manufacturing policy, skilled trade supervision, cost control, materials planning, cost control, productivity analysis, and systems analysis. Operations management, just like management itself requires individual skills, rational analysis, creativity, and knowledge of technology for successful results (Mishra 15).

The success of operations management theories, tools and techniques in the European Airline Industry

Operations management theories, tools, and techniques can be applied to explain the situation of the European Airline Industry, and how the industry has achieved success in its operations. Tools and techniques of quality management are used to identify problems, identify root causes in order for solutions to be planned. This then leads to the implementation of solutions by ways of quality of improvement techniques. The tools and techniques of operations management operate on the principle that effective and efficient operations hold the key to success for any organization. Over the years, a variety of tools and techniques has been implemented to assist consultants and managers improve their operations. However, with a lot of these available, it is not easy to know the one that will work best for a certain organization. The significance of organizations to develop and apply creative reasoning as part of being competitive is a strong and well known research area within the United Kingdom (Mahadevan 100).

The allegation is that the European Airline industry has been successful because of their focus on a pure low cost strategy through effective and efficient management of their value chain. Using Porters value chain to better suit the airline industry in Europe, it is significant to note that the industry operates at low costs. The cost savings are attained through some essential principles that underlie the low cost airline model, which include high aircraft use attained through skillful scheduling and timetabling, as well as, quick turnarounds, ruthless cost control, and high load factors (Mahadevan 115). The European airline industry has experiences rapid growth over the last two decades with the number of people flying to and from the continent increasing every day. The appearance of low cost airlines in the United Kingdom for instance, easyjet and Ryanair has been a considerable driving power in the increase of passenger numbers and has also geared the growth of many regional airports in the State. The growth of low cost carriers has an exceptionally a large driving factor that has forced airlines in Europe rethink their policy and strategy and become competitive on price.

The five forces by Michael Porte, the work on generic strategies, as well as, his theory of a value chain and management are exceptionally significant in analyzing the airline industry in the European Airline Industry. By redefining the value chain management, the low cost airlines have been capable of shedding considerable costs and alter the European airline industry for the future. Airlines in the region have implemented what Porter refers to a low cost strategy, which has helped them gain considerable market share, taking vast numbers of passengers including British Airways and other service carriers (Mahadevan 117).

Competitive Advantage, Value Chain, and Generic Strategies

Competitive benefit exists where an organization makes economic rent, its revenues are higher than costs, and the normal competitive pressures are incapable of driving down the earnings of the organization to a level where they cover costs only. An organization is perceived to have a competitive advantage when it attains a higher rate of economic profit than the aggregate economic profit in the industry. The organization can only attain competitive benefit if it capable of creating more economic value than the competitors in the industry. It is essential to note that the ability to establish value depends on the cost of the firm and advantage position relative to competitors. According to Robinson (50) Porter’s models are explained both as a theory and tools and techniques of operation management that have aided to the success of the European Airline Industry.

The five models of Porter’s model of operations management reveal the threats of competition from five distinct areas and how they impact on competitive benefit. These five factors are the suppliers’ bargaining power, buyers’ bargaining power, threat of potential entrants into the industry, rivalry among existing firms in the industry, and the threat of substitutes that make a firm’s products or services obsolete. According to Porter, an organization can alter the forces in order to increase the opportunities of attaining sustainable competitive benefit and, therefore, improving profitability. Customer surplus happens when the perceived value of a product to customers is higher than the prince the customer pays. The surplus is equivalent to the gains a firm makes because a firm can increase customer surplus by either reducing the costs incurred in purchasing and using the product or selling at a lower price of increasing the perceived benefit or value of the service or product (Robinson 57). A firm can establish superior value for consumers by performing its roles along the value chain at a lower cost or better than the competitors. As mentioned earlier, the firm can improve gains through value redistribution or value creation. For instance, this may be done through bargaining with suppliers and buyers or identifying and obtaining undervalued businesses. Sustainable competitive advantage is attained where a firm can gain economic rent for a significant long period of time by establishing valuable positions and processes that cannot be imitated or duplicated by other firms. This competitive benefit can be attained through organization’s core competencies. This implies that a firm can achieve something that another firm in the industry cannot or do it better and at a lower cost. Robinson (58) notes, the choice of strategy can establish the competitive position of a firm. This is what Porter refers to as generic strategies and a firm can decide to establish a cost benefit, advantage, of trail a focus strategy.

A firm can outdo rivals if it is able to determine a distinction that can preserve. It should deliver greater value to consumers, or if this is not possible, it can develop comparable value at a lower cost. If a company can do both, the better for its performance in the industry. Porter holds that a company can select one of the three generic approaches to practice. Generic strategies are the means by which firms deal with the five competitive forces outlined by Porter, to build sustainable competitive benefit and thereby bringing higher returns. The strategies are differentiated by what the company is seeking to attain, either seeking to become the lowest cost player in the market, serving a certain market or market segment through a focus approach or having a distinct product or service that is of significant value to customers (Robinson 60).

One of the generic strategies is cost leadership. A company struggles to be the lowest-cost supplier and hence attain bigger productivity and profitability from above average margins of price-cost. Producers of low-cost frequently sell standard products and put significant emphasis on absolute cost or reaping scale benefits from all sources. This strategy is typical of the European Airline Industry. In order to attain cost leadership, companies must attain proximity and parity in the bases of relative differentiation to competitors. Parity implies that a firm should offer either a similar product to competitors but at a lower cost or a distinct combination of product characteristics that consumers find equally appealing. On the other hand, proximity implies that the discount in price that a firm gives to create a satisfactory share in the market should be adequate so that the cost benefit of the firm is not badly offset. There are cost drivers that Porter identifies, which he classifies into four categories. These are factors that influence cost across firms (Janawade 25). These are related to the size and scope of firms such as economies of scope and scale, as well as, capacity utilization. They are also factors associated with cumulative experience including learning curve effects. There are also factors that are independent of the size, experience, and scope such as process efficiency, location, and input prices. Additionally, there are factors associated with the organization of transactions such as the vertical chain organization and agent efficiency.

The second generic strategy is benefit leadership or differentiation. Applying this approach, firms establish advantage by giving the customer a product that is not overprices as a result of the consumer valuing the attributes of the products more than those of competitors, although the product may not be the lowest cost product in the industry or in the market. Successful differentiation approaches are not merely based on giving different attributes or product additional to those of competitors. Key components in success are that customers are willing to give extra payments for the differentiated product and competitors perceive it not easy to match the attributes (quality) of the product (Janawade 30). Porter holds that firms that can attain and sustain differentiation are above-average performers in their respective industries if their premiums are higher than the extra costs incurred in being distinct. A differentiator cannot, however, ignore the cost position as the premium prices will be annulled by an inferior cost position. A differentiator, therefore, aims at cost proximity and parity relative to its rivals, by decreasing cost in all levels that do not affect the process of differentiation. This is what the European Airline Industry focuses on.

The last strategy discussed by Porter and essential in analyzing the situation of European Airline Industry is the focus. This strategy varies from differentiation strategy because it entails focusing only on a portion of the market of concern. This strategy rests on the selection of narrow competitive scope in the market. The focuser chooses a group of segments in the industry and structures its approach to serving them to the omission of others (Schmidt 78). This strategy is a mix of differentiation and cost, where the company seeks a cost benefit in the target segment, as well as, differentiation. There must be variations in the target segment with other segments in the market in order for the focus strategy to work. This may include buyers with unusual needs. In the European Airline Industry, airline firms could be seen to be implementing a focus strategy as they offer low cost flights to non-major airports.

On the value chain, Porter holds that competitive benefit cannot be comprehended by looking at a company as a whole. It arises from the various discrete roles a firm performs in producing, designing, delivering, and supporting the product (Idris 280). These activities can take part in a relative cost position of a firm and establish a basis of differentiation. Additionally, he holds that variations among value chains of competitors are a main source of competitive benefit. The value chain model is related to and based on the overall approach of the company in terms of positioning, just as explained in generic approaches model. The value chain model classifies the value adding operations of a firm. The value chain analysis refers to a technique of decomposing the company into strategically essential activities and comprehending their impact on value and cost.

The value chain is divided into support and primary activities. The primary roles are engaged in the physical development of the product, the product’s sale, and after sales services and support. On the other hand, the support activities assist the primary activities. Primary activities comprise operation s, inbound logistics, outbound logistics, and sales and marketing. It also includes services such as maintenance, installation, repair, and training. The support activities, on the other hand, include administrative infrastructure management (management systems), research and development for technological advancement, human resource management (selection, recruitment, development, training and rewards), and procurement, the acquiring of resources (Idris 285). The value chain is used in the identification of how to pursue a strategy on cost leadership by using it to determine and control costs, and by firms that wish to implement a differentiation approach by applying the value chain in the establishment of how and at what production phases value is added. These activities are carried out in a unique, but the required way, therefore, leading to success in the airline industry.

It is essential to note that the Association of European Union plays a significant role in ensuring the success of the industry in the region. This union is relied upon by policy makers and media in significant decisions regarding airlines. This union works in collaboration with institutions such as the European Union and other stakeholders in the value chain to ensure the sustainable growth of the airline industry in the international context (Staniland 230). The union applies theories, tools, and techniques of operations management in assisting the industry in order to come up with the desired outcome. It offers support to its members on issues they need to focus on in their businesses and make them succeed, by following all issues related to aeropolitical, analyzing the impact of the issues, recommending strategies and policies, networking with all significant stakeholders, and influencing the legislative process. Over the decades, union has established a reputation in its relations with other stakeholders in the industry, from officials in the Continent, European and national media, national civil servants, through to other global institutions and organizations and air transport-linked associations (Staniland 230).

The outstanding network enables the union to coordinate proficiency and adopt proactive communication and lobbying approaches aimed at the Parliament and the Council, the European Commission, and seek to promote measures and actions that are conducive to a healthy and sustainable advancement of the member airlines. The association is in a distinct position to gather and disseminate industry intelligence that the members require to gain a panoramic approach of their international business environment and to facilitate their positions at country levels (Staniland 233). In performing its roles, the association focuses on achieving its key objectives which include promoting the role of aviation in the future of Europe, innovating for the benefit of customers, contributing to smarter, better, and more cost-effective regulation. Additionally, the association aims at championing a global security context, ensuring conditions for reasonable and fair competition, decarbonising aviation, and accelerating progress towards a ‘single European Sky’.

In simpler terms, the operations management of the airline industry in Europe is what other firms in the airline industry should adopt in order to be successful at all levels of operations. One of the fundamental issues that the airline industry in Europe is concerned with is a reputation for safety. This is essential for the industry as airline firms in Europe are viewed as safe by potential passengers. The operations management is focused on ensuring safety for all individuals associated with them especially passengers. The airline industry in Europe offers fares, which are consistent and competitive (Palepu 117). Most individuals prefer low fares, as well as, certain levels of service. This is what makes the European Airline Industry successful. In additional, the issue of containment of controllable costs is an essential factor in the industry. As uncontrollable costs increase, successful companies in the industry work diligently to sustain or reduce controllable costs. This enables them increase profitability and keep costs attractive to consumers. Two significant ways of controlling costs are through labor turnover and high labor productivity, and through the use of superior management information systems. There is easy access to terminals at profitable airports (Palepu 119). This enables customers to fly to their destinations with convenience. The products such as seats and services are of great quality making them attractive to customers from various regions. The fact that there is quick and less costly check-in and luggage handling has enabled the industry to grow at a rapid rate due to increased profitability.

Operations management plays an essential role in ensuring the success of firms. This is well illustrated by the European Airline Industry that has demonstrated success over the past decades due to the efficient and effective operations management. The theories, tools and techniques of operations management have well applied in the case. The industry remains a successful one that many firms in a similar industry wish to imitate (Palepu 120).

 

Works Cited

Mishra, D K. Operations Management: Critical Perspectives on Business. New Delhi: Global India Publications, 2009. Print.

Mahadevan, B. Operations Management: Theory and Practice. Upper Saddle River: Pearson, 2010. Print.

Robinson, Peter. Operations Management in the Travel Industry. Wallingford, UK: CABI, 2009. Print.

Schmidt, Sandy K. Strategic Group Model of the European Airline Industry: A Critical Evaluation of an External Analysis Model. München: GRIN Verlag GmbH, 2008. Internet resource.

Staniland, Martin. A Europe of the Air?: The Airline Industry and European Integration. Lanham: Rowman & Littlefield, 2008. Print.

Palepu, Krishna G. Business Analysis and Valuation: Ifrs Edition, Text and Cases. London: Thomson Learning, 2007. Print.

Idris, Fazli. “Achieving flexibility in service operations using the rigid flexibility framework: An exploratory study.” International Journal of Business & Society 13.3 (2012): 279-292. Print.

Janawade, Vikrant. “Consumer Perceived Value of International Networked Services: An Exploratory Study of the Case of an Airline Alliance.” International Business Research 6.2 (2013): 20-42. Print.

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