Research & Development Essay Example | Topics and Well Written Essays - 1750 words

Research & Development - Essay Example To cope with the changing situations, the essence of research and development is increasingly felt. Constant research and development in almost every aspect of life is being continuously conducted to generate better value to its related factors. Like other sectors of industry (e.g. technology, communication, marketing and finance, etc), labor sector is also under the constant purview of research and development. The most important feature which makes labor industry significantly different from that of other functions is the psychological touch involved in it along with the technical expertise. The laborers of any industry are human beings in first place and so they have aspirations, goals, objectives and needs. Again these psychological factors differ from laborers to laborers depending upon their culture, backgrounds, perceptions and prejudices and other factors. In order to make the labor industry efficient in its functions and performance all the above factors are to be considered and continuous research and development should be initiated. So, it can be conferred that the research and development in the labor industry is critical and important, sometimes even more than other organizational functions. Research and development is initiated generally to upgrade any working system from its present condition or performance. Popularly known as R & D, research and development can be defined as, "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications" (OECD. 2008). Research and development generally can be subdivided into three sub parts namely basic research, applied research and experimental research. Basic research is a type of research activity where investigational and theoretical initiatives are undertaken basically to acquire knowledge base of the underlying facts and figures. This type of research activity is done generally as part of academic interests as there are not much application or usage of the results of basic research. Applied research is built upon the basic research and is also done to acquire new knowledge domains but with more specified and certain objectives. It deals with the core of the subject. In comparison to the first two types of research, the third component i.e. the experimental research deals with more application. It develops the research output from the basic as well as applied research and is concerned with development of new products or installation of new processes. It also deals with improvement of devices already installed or produced. Traditionally, labor has been classified as a person who sold his physical strength in order to earn his livelihood. The payment that he received for such a sale was known as 'wage'. So the laborers are also known as wage earner. But today the term labor has a more broad perspective. In the present world, laborers are generally classified under three broad heads i.e. the skilled labor, the semi skilled labor and the unskilled labor. It can be well presumed that the skilled laborers are those who have certain technical knowledge about the task they perform and so generally receives the highest pay among the three classes. Semi-skilled

The Characteristics Of Design And Build

The Characteristics Of Design And Build The construction projects involve many activities. A construction project can refer to any building activity that includes building, repair, erection, demolition, maintenance, land clearing, earth moving, excavating, trenching, digging, boring, drilling, blasting, concreting, installation etc. (Housing Grants, Construction and Regeneration Act, 1996). All these activities require large number of goods and services. Large number of transactions is needed to be set up to support the project. The goods and services are procured. They should be procured at the best possible cost to meet the needs in terms of quality, quantity, time and location (Weeley 2010). The construction sector is very important to the economy. In most of the countries it accounts for approximately 8-10 percent of gross domestic product GDP. In India it accounts for 8 percent of GDP currently. The main sectors in construction industry in India are Infrastructure, housing and commercial developments. In 2014 the second phase of infrastructure development will be started. This will give additional boost to the construction industry. Due to large number of projects the significance of procurement will be very important. If a construction project is procured appropriately then only the project is completed in time with desirable quality and within estimated cost. There are numerous procurement methods around the world. The main procurement methods used in construction are Design and Build, Management Contracting, Construction Management, Build Operate Transfer, Public Private Partnerships, Strategic Partnership, Joint ventures etc. In developed economies procurement methods such as Design and Build, Construction Management and Management Contracting are used effectively. This is due to the maturity of the industry. In India mainly traditional procurement methods are used. This is due to the nature of the Industry. The construction industry in India is large and scattered. It consists large number of small firms. As there are large number of local firms, people are reluctant to change. The professionals also prefer to operate within their silos. Due to this they do not get out of the comfort zones and use traditional methods. Currently the trend is changing particularly in infrastructure projects and large projects due to the numbers of projec ts, the size of projects and the capital involved in the projects. Mainly the upcoming procurement methods are Build Operate and Transfer and Public Private Partnerships. But these are restricted to only a few numbers of projects. Still large numbers of Projects are carried out in a traditional manner. The main barriers to take up new procurement methods are, large population (1.2 billion approximately) large inclusive demand, large demand spread across the country, large number of small projects, traditional outlook of construction professionals, segregated industry, large number of small firms, large unskilled work force. The other barriers include large number of regional languages, excess availability of skilled professionals in one part of the country and scarcity in the other parts, no standard terms of contracts, different legislation in different states, local suppliers, monopoly of manufactures in a region. In order to find out why the new procurement methods cannot be implemented, main issues should be checked namely, economic issues, management issues, technical issues, legal issues and cultural issues, in India. These issues are inter-linked, interdependent up to a certain level. Careful observations will let us know what are the challenges in order to implement new pro curement methods and will also let us know why it is difficult to implement new procurement methods. The main question that needs to be answered is why it is difficult to implement new procurement methods because implementing new procurement methods other than traditional methods will benefit the industry and will make it easier to operate, deliver quality goods, enhance the standards, and complete the projects on time and within budgets. 1.2 Research Aim The aim of the research is to identify the barriers, difficulties and gaps that restrict the implementation of new procurement methods in India. 1.3 Research Objectives The research objectives will include the following 1) Identifying the barriers which act as hindrances for implementation of new procurement methods in the Indian construction industry. 2) To investigate the issues, namely economic issues, technical issues, management issues, legal issues and cultural issues, to find out the factors which affect the implementation of new procurement methods in India. 3) To investigate procurement methods such as Design and Build, Management Contracting and Construction Management and relate it to the traditional Indian procurement method to understand the challenges of the implementation of new procurement methods in India. 1.4 Scope of Study This study of identification of barriers and gaps that restrict the implementation of new procurement methods is confined to the Indian construction industry. The data is collected from secondary sources. The main sources were U.N views on India, U.K Trade and Investment and other secondary data. This study looks only into the gaps and barriers. It outlines various gaps and barriers which are already present in the Indian construction industry which in turn affects the implementation of new procurement methods. This study restricts itself to Identification of gaps and barriers and only derives the gaps and barriers from the nature and character of the Indian construction Industry. As moving more forward into detail of everything was not possible. It investigates mainly into economic issues, management issues, technical issues, legal issues and cultural issues and finds the gaps which prevent the implementation of new procurement methods. In the Indian construction industry more traditional methods of procurement are used, whereas in developed economies various new methods of procurement are used. This study will also mainly look into procurement methods such as Design and Build, Management Contracting and Construction Management and compare it with the traditional Indian procurement method to find the barriers and gaps. 1.5 Structure of Dissertation Chapter 1) This chapter gives an introduction to the topic and gives the idea about how the study will be carried out. It gives an idea of a fast developing Indian construction Industry and the need to adapt new procurement methods. It states the research aim, objectives and scope of study and also discusses the structure of the dissertation Chapter 2) This chapter reviews the literature associated with the study. It looks into new procurement methods, types of projects in India, Indian construction industry and important factors affecting the construction industry in India. Chapter 3) This chapter describes the research methodology adapted within the scope of the dissertation. Secondary data, unstructured talks with the experts and academicians were employed to address the objectives. Chapter 4) This chapter characterizes India. It describes the nature and the character of the Indian construction industry. It gives an insight into the Indian construction Industry and its approaches. Chapter 5) This chapter looks at the barriers and the gaps that restrict implementation of new procurement methods in India. It looks at the present construction Industry in India and its characterization and identifies the barriers and gaps that restrict implementation of new procurement methods in India. Chapter 6) This chapter presents the conclusions and direction for further research in this area. CHAPTER 2 LITERATURE REVIEW 2.0 Procurement Methods Introduction Around the world various procurement methods are used. These methods are developed through the years as per the various upcoming new projects. The selection of the most appropriate procurement method is critical for both the client and other project participants as it is an important factor that contributes to the overall clients satisfaction and project success. This selection will be dependent upon a number of factors such as cost, time and quality which are widely considered as being the most fundamental criteria for clients seeking to achieve their end product at the highest quality, at the lowest cost and in the shortest time (Hackett et al. 2007). The type of procurement method adopted mainly depends upon the type of project, type of ownership, nature of construction industry in that particular country and the maturity of the industry. The selection of the procurement path is much more than simply establishing a contractual relationship (Newcombe 1992), inspite of the continuing search for maximum value for money. In the developed economies such as USA, UK, Australia, Sweden etc. procurement methods such as Design and Build, Management Contracting and Construction Management are used from a long time. This is because the construction industry is developed, the projects are needed to be delivered that way and the clients demand the delivery of projects in that particular manner. In this dissertation the study is limited to procurement methods such as Design and Build, Management Contracting and Construction Management. 2.1 Design and Build Design-build is a method to deliver a project in which the design and construction services are contracted by a single entity known as the design-builder or design-build contractor. Design-build relies on a single point of responsibility contract and is used to minimize risks for the project owner and to reduce the delivery schedule by overlapping the design phase and construction phase of a project. Design and Build with its single point responsibility carries the clearest contractual remedies for the clients because the DB contractor will be responsible for all of the work on the project, regardless of the nature of the fault (John Murdoch and Will Hughes 2007). The traditional approach for construction projects consists of the appointment of a designer and the appointment of a contractor differently. The design-build procurement route changes the traditional sequence of work. It answers the clients wishes for a single-point of responsibility in an attempt to reduce risks and overall costs. Today it is commonly used in many countries and forms of contracts are widely available. The Design-Build Institute of America (DBIA) takes the position that design-build can be led by a contractor, a designer, a developer or a joint venture, as long as a the design-build entity holds a single contract for both design and construction. The main contractor takes responsibility for both design and construction and will use either in-house designers or employ consultants to carry out the design. Most of the construction work will be carried out by specialist or sub-contractors. The contractor tenders against a client brief and will often follow an initial concept design prepared by consultants appointed to advise the client. The design will be developed by the contractor and the works will be completed, usually for a fixed price. Tendering is more expensive so it carries more risk for the contractor than the traditional approach. This is because the contractor has to develop an outline design and a detailed price. Tender lists will probably be shorter than for traditional contracts. The Design-Build approach gives the client a single point of contact. However, the client commits to the cost of construction, as well as the cost of design, much earlier than with the traditional approach. Changes made by the client during design can be expensive, because they affect the whole of the Design-Build contract, rather than just the design team costs. This strategy is a low-risk option for clients who wish to minimize their exposure to the risks of overspend delays or design failure. However, the exposure to risk will increase where the design phase is rushed, where unreasonable time targets are set or where the tender documents are not fully completed. Owner Client Architect Engineers Quantity Surveyors Design and Build Contractor Consultants Subcontractors Figure 1 Design and Build Process 2.1.1 Characteristics of Design and Build It provides single point of responsibility so that in event of a failure the contractor is solely responsible. There is no ambiguity between the designer and the contractor. The clients interests are safeguarded in this respect. When the client adopts Design and Build method he knows his total financial commitment early in a project. The client has direct contact with the contractor. This improves the lines of communication and enables the contractor to respond and adapt to the clients needs more promptly. In Design and Build contractor is responsible for design, planning and control. This gives him a better control over the activities and can concurrently carry out the activities which are not generally possible using traditional procurement methods. The contractor can purchase, obtain planning permission and arrange his finance simultaneously which helps him to give a better deal to the client. He can also benefit himself and the client by making use of proprietary modular designs which reduces design time and time required for approval. The contractor can start the work as soon as the approvals are obtained and sufficient information regarding the site operations is available. The design does not need to be finalized before some, at least, of the work may be commenced. The Design and Build proposals ensure economical tenders and alternate design concepts which can benefit the client. The nature of Design and Build procurement system promotes the creation of integrated design and construction team. In some countries using Design and Build system relaxes the architects code of practice, which encourages them to become full partners in design and build firms. The closer involvement of architects leads to more aesthetically pleasing buildings and leads to designs which have a greater appreciation. Design and Build promotes integration and improves communication between designer and contractor, which encourages prompt decisions. The prompt response in achieved even in the event of material and labor shortages. In the Design and Build system design costs are built into the package the costs involved are also less. In Design and Build the nature of the contract tends to reduce changes and variations from the original design and disruption of the works is less likely to occur. By using Design and Build method time and cost savings are achieved, which benefits the client. The total project completion period is also reduced. Design and Build reduces the employers financing charges, inflation has less effect and the building is operational sooner which commercially produces an early return on the capital invested. The Design and Build method facilitates novation of design with the consultants to the contractor which provides advantages to the client. If the design is novated the client has the advantage of knowing that his needs and intentions are met for tendering purposes by referring to the drawings and specifications. It is advantageous to the contractor as he is provided with more detailed information on which he can quote his tender. The contractor also has less design work to carry out before tendering so his tendering cost is also less. The contractor accepts responsibility for risk of building failure due to inadequate design and his increased responsibility is reflected in his tender which helps the client. The advantage of Design and Build is that the contractor has some control over the design and is able to introduce components, materials and systems which are beneficial and which he knows are more economical to construct. 2.1.2 Critique of Design and Build Design and Build is not suitable for complex projects. The traditional method of construction procurement dissociates the designers from the contractors interests, design-build does not. The contractor decides on the design issues as well as issues related to cost, profits and time exigencies, which may be the matter of concern in some situations. Difficulties can be experienced by clients in preparing an adequate and sufficiently comprehensive brief. The client is required to commit to a concept design at an early stage and often before the detailed designs is completed. There is no separate bid for design and construction, bids may be difficult to compare as each design will be different, this will vary the project programme between the bidders and prices for the project will be different for each different design. There is no design overview unless separate consultants are appointed. And there is no one appointed from clients side to manage the works or act as clients agent. Few firms offer the Design and Build service so there is less real competition. If client changes the scope of the project, this can be expensive. The design liability is limited by the standard contracts available. Design-build does not make use of competitive bidding where prospective builders bid on the same design. In Design and Build the criteria to select contractor is subjective and difficult to evaluate and to justify later. 2.2 Management Contracting In management contracting the clients appoints the designers and a management contractor separately and pays the contractor a fee for managing the construction works. Payment to the management contractor is done on the basis of cost of the works packages plus agreed fees. The main benefits of management contracting are the time required for design and construction is shorter. There is an early involvement of managing contractor during design phase, in which his expertise can be used. The management contractor has the responsibility to manage the project. The sub-contractors are appointed by the management contractor, thus reducing the day to day administrative responsibilities of the client. The management contractor has major role in directing the project. The lines of communications are improved. As there is a direct relation between the management contractor and the client changes and variations can be done in a project. The main advantage is that the project is completed in time as the management contractor manages the works. Because of this the client gets possession quickly and the return on investment starts. The client normally appoints the management contractor to take an active role in the project at an early stage and the client can benefit from the contractors expertise. The overall design is the responsibility of the clients consultants, but the management contractor is normally responsible for defining packages of work and then for managing the carrying out of those work packages through separate trades or works contracts. The management contractor can sometimes not be employed to undertake the work but is employed to manage the process. All the work is subcontracted to works contractors who are directly employed by the management contractor. The client usually needs to be given the opportunity to approve the terms and conditions of the trades or works contracts before the packages are subcontracted. The management contract will usually include both a pre-construction phase and the construction phase. The management contractor is responsible for the administration and operation of the works contractors. However, the management contractor is not liable for the consequences of any default by a works contractor so long as the management contractor has complied with the particular requirements of the management contract. Architect Owner Client Engineer Quantity Surveyor Subcontractors Works Contractors Management Contractor Figure 2 Management Contracting Process. 2.2.1 Characteristics of Management Contracting Clients and contractors adapt this system once they gain experience, which suggests that it has merits. It is generally recognized that its adoption requires mutual trust. The management contractor is appointed much earlier. He is able to become a member of design team and contribute his expertise and mainly his management expertise. Management Contracting is an effective method for the client retaining control of the design whilst drawing on the experience of a construction specialist as part of the Professional Team. The Management Contractor is paid a fee for its services as well as enters into contract with the client for work packages, generally separate works contractors are appointed to carry out work packages under the management contractor. This type of arrangement tends to be used on complex projects where early input from a construction specialist is required. The management contractor finds it easier to identify with clients need and interest and integration of team becomes possible and practical. Decisions regarding appointment of subcontractors are made jointly by designers and management contractor thus making use of wider experience. Specialists contractors and subcontractors compete at second stage ensuring economical tenders which benefits the client. Lines of communication are shorter between management contractor and client than with the traditional procurement method. The client has direct control over the management contractor, who is the main contractor, so that the project is completed in a better way and in shorter time. The total project completion period is reduced by parallel working. A reduced project completion period produces a corresponding reduction in financing charges and interm payments to the contractors. Inflation has less effect. The client takes the delivery of the building more quickly and obtains returns on his investment more quickly. The main functions of the management contractor may include acting as principal contractor, cost planning and cost control, consenting for works contracts, coordinating and managing works contracts, coordinating commissioning, collating pre construction information and construction phase plan, monitoring key performances and managing the site. 2.2.2 Critique of Management Contracting The client is usually given an approximate estimate of the final project cost by the management contractor early in the project life but the client does not know the final project cost until the last sub contract is entered into. On other projects he is given a guaranteed maximum cost. The architect may have less time to develop the design because he is under greater pressure from the client and contractor. The design may suffer as a result. Specialist contractors frequently prefer to be in contract with the client rather than with the management contractor because interim payments are usually made more promptly when paid direct. The client should provide a good design brief as the design will not be completed until the client has committed significant resources to the project. The strategy relies on quality committed team or it may just become a mere reporting system in some cases. It reduces resistance to works contractors claims where such demands are passed on to the client by the management contractor. Management contracting is not suitable for inexperienced clients. It is less suitable for clients wanting to pass the complete risk to the contractors. Specialist contractors frequently prefer to be in contract with client rather than the management contractor appointed by the client because interim payments are usually made promptly when paid directly. 2.3 Construction Management In construction management the client appoints a construction manager for a fee to manage, programme and coordinate the design and construction activities. The client does not allocate risk and responsibility to a single main contractor. Construction work is carried out by trade contractors through direct contracts with the client for various packages. The client takes the risk. The construction manager supervises the construction process and coordinates the design team. The construction manager has no contractual links with the design team and contractors. He only provides professional expertise without assuming financial risks. On appointment the construction manager takes over any preliminary scheduling and costing information and draw up detail programme accordingly. In this method the client should have administrative or project management staff with the ability to assess the recommendation of construction manager and take actions. Adapting construction management reduces the time required for the project. This occurs because the contract strategy, construction and design can overlap. A construction manager should have a good track record in cost forecasting and cost management, as the time can be reduced but the price certainty is not achieved unless the design and construction have advanced to the extent that all the work packages have been let. This method puts so much emphasis on the role of client, if the client is experienced, with the help of construction manager he can control the project effectively. The clients continue to use construction management to their advantage, for example, the cultivation of direct, long-term relationships with trade contractors helps to secure many of the benefits more often associated with partnering. Furthermore, by employing a construction manager who is able to focus on the interests of the project, rather than on its own risk management, the client can be confident that its project objectives will be shared by the rest of the team. Construction management is distinguished by the influence of the clients and construction managers management and leadership skills on the success of the project. By adapting construction management method the client can have greater influence over the project and can have more flexibility over the contractor selection and so on. Owner Client Architect Engineer Quantity Surveyor Construction Manager Contractors Subcontractors Figure 3 Construction Management Process. 2.3.1 Characteristics of Construction Management Construction management offers relative time saving potential for overall project duration due to overlapping of various activities. The roles, risks and relationships are clear for all the participants during most of the situations. In some situations changes in design can be accommodated later than some other strategies, without paying a premium. In construction management method the client has direct contracts with the contractors and pays them directly. This helps the contractors as they are paid promptly and there is evidence that this results in lower prices because of improved cash flow certainty. The client has direct involvement in the project as compared to most of the traditional methods. As the client is directly involved he is enabled to make prompt decisions which can be implemented without delay. This also makes possible a prompt response by the client to unforeseen site problems and also makes possible a prompt response by the contractor to changes required by the client. In this type the construction manager acts as an agent of the contractor. This benefits the contractor in managing the works. This also excludes the client for keeping his own staff for overlooking the issues which are looked by the construction manager. The central role of the construction manager is managing the project and providing administrative support to the employer. In this there is no single point of responsibility related to the delivery of the project. 2.3.2 Critique of Construction Management In construction management price certainty is not achieved until the last works packages have been let. Budgeting primarily depends heavily on design team estimates. The client should be pro-active and must provide a quality design brief to the design team in order to complete the design. The strategy relies upon the client selecting a good quality and committed team. In construction management the client has to manage and administer many contracts as there is no single contractor, all the works contracts are directly between the works contractors and the client. The client has to manage coordinate with the design team appropriately or else there increased likelihood of design change. There is a high degree of client ownership of risks associated with design including impacts of late or incomplete and uncoordinated design. In construction management the client has exposure to performance risk and exposure to consequential loss associated with trade contractor default. In construction management method there is increased administration role for the client. Construction manager owes duty of care liability only. The client is at the center of management and requires decision making capabilities. The client has to rely on management capability of construction manager. 2.4 Indian Construction Industry and Economy Indian economy has been growing from last two decades at an unprecedented rate. This is mainly because of industrialization and service sector growth. The main reason for Indias growth is its huge internal demand. In recent years particularly after the global recession in 2008 the Indian economy has shown signs of slowing down. In 2011-12 due to the current global economic scenario India found itself in the heart of managing growth and stabilizing prices. The Indian economy is grown by 6.9 per cent in 2011-12, after having grown at the rate of 8.4 per cent in each of the two preceding years. This indicates a slowdown compared not just to the previous two years but 2003 to 2011 (except 2008-09). At the same time, sight must not be lost of the fact that, by any cross country comparison, India remains among the front-runners. The Gross Domestic Product (nominal) of India is $ 1.848 trillion. The Gross Domestic Product (Purchasing power parity) of India is $ 4.457 trillion. The annual expenditure budget of India is Rs.1490925.29 Crores. Over the years, more than half of the expenditure budget is spent on civil engineering, construction and related activities. The construction industry sets in motion the process of economical growth in the country, investment in this sector contributes 6.5% of Gross Domestic Product (GDP) growth. The construction industry in India is large and scattered. Today in India there is a massive demand in housing and infrastructure. The construction industry is the second largest industry of the country after agriculture. It makes a significant contribution to the national economy and provides employment to large number of people. The use of various new technologies and deployment of project management strategies have started to gain importance. In its path of advancement, the industry has to overcome a number of challenges. However, the industry is still faced with some major challenges, including hous

Earthquake Loads & Earthquake Resistant Design of Buildings :: essays research papers

Earthquake Loads & Earthquake Resistant Design of Buildings 1.  Ã‚  Ã‚  Ã‚  Ã‚  1 2.  Ã‚  Ã‚  Ã‚  Ã‚  Summary  Ã‚  Ã‚  Ã‚  Ã‚  2 3.  Ã‚  Ã‚  Ã‚  Ã‚  Earthquake Design - A Conceptual Review  Ã‚  Ã‚  Ã‚  Ã‚  2 4.  Ã‚  Ã‚  Ã‚  Ã‚  Earthquake Resisting Performance Expectations  Ã‚  Ã‚  Ã‚  Ã‚  3 5.  Ã‚  Ã‚  Ã‚  Ã‚  Key Material Parameters for Effective Earthquake Resistant Design  Ã‚  Ã‚  Ã‚  Ã‚  3 6.  Ã‚  Ã‚  Ã‚  Ã‚  Earthquake Design Level Ground Motion  Ã‚  Ã‚  Ã‚  Ã‚  4 6.1.  Ã‚  Ã‚  Ã‚  Ã‚  Elastic Response Spectra  Ã‚  Ã‚  Ã‚  Ã‚  4 6.2.  Ã‚  Ã‚  Ã‚  Ã‚  Relative Seismicity  Ã‚  Ã‚  Ã‚  Ã‚  5 6.3.  Ã‚  Ã‚  Ã‚  Ã‚  Soil amplification  Ã‚  Ã‚  Ã‚  Ã‚  6 7.  Ã‚  Ã‚  Ã‚  Ã‚  Derivation of Ductile Design Response Spectra  Ã‚  Ã‚  Ã‚  Ã‚  7 8.  Ã‚  Ã‚  Ã‚  Ã‚  Analysis and Earthquake Resistant Design Principles  Ã‚  Ã‚  Ã‚  Ã‚  8 8.1.  Ã‚  Ã‚  Ã‚  Ã‚  The Basic Principles of Earthquake Resistant Design  Ã‚  Ã‚  Ã‚  Ã‚  8 8.2.  Ã‚  Ã‚  Ã‚  Ã‚  Controls of the Analysis Procedure  Ã‚  Ã‚  Ã‚  Ã‚  8 8.3.  Ã‚  Ã‚  Ã‚  Ã‚  The ‘Conventional’ Earthquake Design Procedure  Ã‚  Ã‚  Ã‚  Ã‚  11 9.  Ã‚  Ã‚  Ã‚  Ã‚  The Capacity Design Philosophy for Earthquake Resistance  Ã‚  Ã‚  Ã‚  Ã‚  11 9.1.  Ã‚  Ã‚  Ã‚  Ã‚  General Approach  Ã‚  Ã‚  Ã‚  Ã‚  11 9.2.  Ã‚  Ã‚  Ã‚  Ã‚  The Implications of Capacity Design  Ã‚  Ã‚  Ã‚  Ã‚  12 10.  Ã‚  Ã‚  Ã‚  Ã‚  Earthquake Resistant Structural Systems  Ã‚  Ã‚  Ã‚  Ã‚  12 10.1.  Ã‚  Ã‚  Ã‚  Ã‚  Moment Resisting Frames:  Ã‚  Ã‚  Ã‚  Ã‚  12 10.2.  Ã‚  Ã‚  Ã‚  Ã‚  Shear Walls  Ã‚  Ã‚  Ã‚  Ã‚  13 10.3.  Ã‚  Ã‚  Ã‚  Ã‚  Braced Frames  Ã‚  Ã‚  Ã‚  Ã‚  13 11.  Ã‚  Ã‚  Ã‚  Ã‚  The Importance & Implications of Structural Regularity  Ã‚  Ã‚  Ã‚  Ã‚  13 11.1.  Ã‚  Ã‚  Ã‚  Ã‚  General  Ã‚  Ã‚  Ã‚  Ã‚  13 11.2.  Ã‚  Ã‚  Ã‚  Ã‚  Vertical Regularity  Ã‚  Ã‚  Ã‚  Ã‚  14 11.3.  Ã‚  Ã‚  Ã‚  Ã‚  Horizontal Regularity.  Ã‚  Ã‚  Ã‚  Ã‚  14 11.4.  Ã‚  Ã‚  Ã‚  Ã‚  Floor Diaphragms  Ã‚  Ã‚  Ã‚  Ã‚  14 12.  Ã‚  Ã‚  Ã‚  Ã‚  Methods of Analysis  Ã‚  Ã‚  Ã‚  Ã‚  15 12.1.  Ã‚  Ã‚  Ã‚  Ã‚  Integrated Time History Analysis  Ã‚  Ã‚  Ã‚  Ã‚  15 12.2.  Ã‚  Ã‚  Ã‚  Ã‚  Multi-modal Analysis  Ã‚  Ã‚  Ã‚  Ã‚  15 12.3.  Ã‚  Ã‚  Ã‚  Ã‚  Equivalent Static Analysis  Ã‚  Ã‚  Ã‚  Ã‚  15 13.  Ã‚  Ã‚  Ã‚  Ã‚  Trends and Future Directions  Ã‚  Ã‚  Ã‚  Ã‚  16 14.  Ã‚  Ã‚  Ã‚  Ã‚  Conclusions  Ã‚  Ã‚  Ã‚  Ã‚  16 15.  Ã‚  Ã‚  Ã‚  Ã‚  References  Ã‚  Ã‚  Ã‚  Ã‚  17 1.  Ã‚  Ã‚  Ã‚  Ã‚   Summary The primary objective of earthquake resistant design is to prevent building collapse during earthquakes thus minimising the risk of death or injury to people in or around those buildings. Because damaging earthquakes are rare, economics dictate that damage to buildings is expected and acceptable provided collapse is avoided. Earthquake forces are generated by the inertia of buildings as they dynamically respond to ground motion. The dynamic nature of the response makes earthquake loadings markedly different from other building loads. Designer temptation to consider earthquakes as ‘a very strong wind’ is a trap that must be avoided since the dynamic characteristics of the building are fundamental to the structural response and thus the earthquake induced actions are able to be mitigated by design. The concept of dynamic considerations of buildings is one which sometimes generates unease and uncertainty within the designer. Although this is understandable, and a common characteristic of any new challenge, it is usually misplaced. Effective earthquake design methodologies can be, and usually are, easily simplified without detracting from the effectiveness of the design. Indeed the high level of uncertainty relating to the ground motion generated by earthquakes seldom justifies the often used complex analysis techniques nor the high level of design sophistication often employed. A good earthquake engineering design is one where the designer takes control of the building by dictating how the building is to respond. This can be achieved by selection of the preferred response mode, selecting zones where inelastic deformations are acceptable and suppressing the development of undesirable response modes which could lead to building collapse. 2.  Ã‚  Ã‚  Ã‚  Ã‚  Earthquake Design - A Conceptual Review Modern earthquake design has its genesis in the 1920’s and 1930’s. At that time earthquake design typically involved the application of 10% of the building weight as a lateral force on the structure, applied uniformly up the height of the building.

A study of the myers-briggs types indicator (mbti)

This paper presents a study on Myers-Briggs Type Indicator (MBTI) as a Psychology test. It provides background information on the test, Historical foundation giving a brief discussion on origin and design of Jung’s theory, personality classification of the test into different types of Extroversion/introversion (EI), Sensing/Intuition (SI), Thinking/Feeling and Judging and Perceiving.This is followed by description of the format and administration of MBTI, more so on format and type of questions. The validity and reliability of the test is also discussed on the basis of research and argument of different scholars. It further looks at the strengths and weaknesses of the test as discussed by other scholars and concludes by discussing applications of the Myer-Briggs Test Indicator in the contemporary society.INTRODUCTIONPsychology, being the study of the mind and mental processes in relation to behavior, is characterized by the prediction of an individual’s behavior based o n generalizations made from the study of other peoples’ behavior. This is on the basis that behavior can be predicted and evaluated on the foundation of research of other studies.This has given rise to branch of psychology known as psychological testing. Cooper, S.E. & Miller, J.A. (1991) defines   psychological testing as, a branch of psychology which uses a series of questions, problems, or physical responses that are designed to measure knowledge, intelligence, ability quality, truth, validity of a psychological phenomenon.Most psychological tests are based on [1]psychometrics which mainly uses educational and psychological measurements in determining knowledge, abilities, attitudes, and personality.They involve deliberate and systemized collection of samples of behavior based on observations over time. A score is assigned to an individual’s performance on a given task based on pre-designed psychological test.BackgroundThis study will seek to study the Myers-Brigg s Type Indicator (MBTI).MBTI can be defines it as: a personality test designed to identity an individual’s personality and preferences based on certain psychometrics, It a test for identifying a person’s personality type based on Carl Jung's theory of personality preferences.MBTI therefore is a personality test designed to offer assistance to an individual by identifying some significant personal preferences. It therefore offers important insights into different personalities leading to enhanced self knowledge, Rosenak, C.M., Shontz, F.C. (1988).The test uses assorted psychometric questionnaires which are carefully formulated to measure psychological differences in individuals. Different personalities have varying preferences based on their genome and experiences from their interaction with the environment.The test was developed by Katharine Briggs and her daughter Isabel Briggs Myers in the 1940s. Their aim was to make use of Jung’s theory of human personality in evaluating the personality of man. Jung’s theory, as its name suggests, was pioneered by a Swiss psychiatrist Carl G. Jung. It classified individual’s personality types into eight types on the basis of three dichotomous variables: Extroversion Vs Introversion (E/I), Sensing Vs Intuiting (S/N), and Thinking Vs Feeling (T/F), Williamson, J. (2003).It is designed to offer a description of observable traits such as the big five personality traits Extraversion, openness, agreeableness, conscientiousness, and [2]neuroticism. The psychological differences among individuals account for the difference in personality. The test proposes that an individual’s personality is either programmed by nature at birth. or is developed in the process of his/her interaction with the environment, Tieger, P.D. & Barron-Tieger, B.   (2001).The test is designed to measure the preferences of an individual rather than aptitude and is constructed from the four opposing traits.Every pers onality trait has an opposite pair. The aspect of [3]extraversion has a direct opposite in introversion, thinking in feeling, and judging in perceiving and sensing a in intuition. These opposing pair of traits forms the foundation of the test. It is therefore based on four bipolar discontinuous scales: Extraversion/Introversion, Sensing/Intuition, Thinking/Feeling and Judging/Perceiving.Introversion Vs extroversion gives an analysis of how persons direct their energy. It is a principle based on the fact that there are two worlds within an individual’s personality; the internal and the external world. The expression of either of the two worlds depends on the individual’s preference.People who are extraverted are energized and motivated by their actions hence they prefer to focus their energy on the outside world. Conversely the introverts prefer to direct their energy towards their inner being making them more conceptual and idealistic. Rosenak, C.M., Shontz, F.C. (1988 )Sensing Vs intuition originated from the broad category of perceiving functions. The two are however not mutually exclusive as their usage is dependent on time and circumstances. These are also the foundation of human knowledge from the empiricist and rationalist’s point of view as they are the primary avenues through which information reaches the individual. Individuals acquire information either by sensing it directly from the environment by one or more of the five senses or through intuition, by the use of the mind.The preferences of individuals who rely on sensing are a presentation of facts while those who rely on intuition are likely to operate on theoretical and abstract models hence are likely to be more logical.Thinking Vs Feeling is a function based on the basic judgment of an individual. Those who prefer thinking make judgment and decisions on the basis of critical analysis of situations. Conversely, those who prefer to make judgment based on feelings base their j udgment on the emotional aspects of a situation and on the basis of personal norms and values.True to the prediction of the test, persons with different personalities tend to behave and live differently, choose different careers, perform differently in activities for example in academic and professional fields. MBTI categorizes psychological differences into 16 types from four opposing pairs namely: ISTJ, ESTJ, ENTP, INTP, ENTJ, INTJ, ENFP, ESPF, ESTJ, ISTP, ISFJ, ISFP, INFP, INFJ, ESTP,   and INTP. These rises from treating of each index as an independent preference capable of being combined with other indices.Format and AdministrationThe two most widely used versions of MBTI are the European and the North American English versions. In all the two versions, MBTI is administered by the use of MBTI forms. The instrument measures personality preferences on four scales namely: Extraversion(E)/Introversion(I), Sensing(S)/Intuition(N), Feeling(F)/Judging(J) Perceiving. Questions are al l in the form of multiple choice questions.Each question is structured in a way that presents only two options in the form of short statements and word pairs from which [4]one can only choose one of the questions. MBTI therefore uses an Item Based Forced Questionnaire Form. Its structure revolves around the identification of preferences of an individual from a presented choice of two options in every question.Reliability and Validity of MBTIReliability refer to how consistently can a test measure what it is designed to measure. Total consistency in the psychological tests are unlikely owing to the nature of personality, however there are accepted standards for variations of psychological instruments such as MBTI.According to Rosenak, C.M., Shontz, F.C. (1988), one of the pioneer researchers into the reliability of MBTI, the reliability of MBTI meets and exceeds all the preset standards of psychological instrument. He asserts that the reliability of MBTI are either as good as or bett er than other instruments when the scores are treated as continuous scale.Furthermore the reliability in terms of preferences range between 75-90% on a test retest scale. He further asserts that, the reliability of the test across age, ethnic groups and race also vary between 60-85%. Williamson, J. (2003) gives the analysis of personality traits of the engineering students from various colleges conducted by varied researchers. It shows consistency as the score of ISTJ personality among engineering students was the highest in all studies.In the University of Tennessee Knoxville the personality scores of engineering faculty members were: ISTJ (22.6%), INTJ (17.8%), INTP (17.8 %), and ENTJ (14.3%) while that of engineering freshmen in the same university in a study conducted between 1990-1994 were: ISTJ (13.4), ESTJ (11.7), ENTP (8.8), INTP (8.8). Further research by Mc Caulley showed on the personality of Engineering students in Eight different colleges were as follows : ISTJ (16.46), ESTJ (12.75), ENTJ (9.43), INTJ (9.43), INTP (8.46),ENTP (7.43) to mention just but a few. The dominance of the ISTJ among engineering students is evident from the above studies supporting the reliability of the test.How valid is MBTI?   Validity refers to the degree to which a given instrument measures what it is intended to measure. Several psychological analysts have questioned the validity of the test. Tieger, P.D.& Barron-Tieger, B.   (2001), sees the validity of the test as arising from the applicability of the four preference pairs of dichotomies and the subsequent combinations of the preferences.The choice of the questions and therefore the different scales are also valid. The often cited argument is that the founders, Myers and Briggs had no scientific training on psychometric testing and therefore were at no position to prescribe a psychological test.Rosenak, C.M., Shontz, F.C. (1988), however argue that face validity of the test is generally accepted by most research ers though the omission on neuroticism is a weakness of the test. On the construct validity, arguments have been advanced for and against the test. Statistically, the validity of the test is also put to question. With four pairs of parameters, a binomial distribution is a general expectation. However, this has never been seen in any of the dimensions. Statistical analysis of scores reveals a normal distribution just like the IQ tests. Rosenak, C.M., Shontz, F.C. (1988),Strengths and Weaknesses of the TestTo summarize the strengths of the test, psychologists see it as covering a wide range of personality traits. This is a strong point since it examines an individual as a whole. Its reliability is also its strength. The correlation between the scores of persons with similar personalities is generally high.Strength is its face validity which is accepted by most researchers test is its internal consistency and construct validity. Its test-retest reliability also far much exceeds those o f other tests in the category. Some psychologists have however criticized the test for lacking not only in validity but also in reliability from the above discussion. The use of forced format is another weakness as seen by most researchers. One can have two of the options presented in the test questions yet he/she is only allowed to select one.Its construct validity is also one of its [5]weaknesses.Practical Applications of MBTIMBTI is one of the most important tests used in the process of career selection, Tieger, P.D. & Barron-Tieger, B.   (2001).. The 16 Myer-Briggs types have been found to effectively aid an individual’s career choice. A study conducted by Williamson, J. (2003) and citing other researchers on the personality type of engineering students showed that the majority of students were of the ISTJ type. These were people, who were introverted, had impeccable intuition, were good thinkers and Judgmental. Summary of your MBTI results It is therefore acknowledged that the MBTI score may affect your career choices, career exploration, career development, Rankings in occupational categories.MBTI is increasingly being used by companies and other employers in the recruitment of new employees. This is due to the fact that the competitiveness of an organization relies, to a large extent on the personality of its employees. MBTI is without doubt one of the most important psychological tests in use today. Its results may therefore enable man understand his strengths and weaknesses, enhance his productivity, acquire better problem solving skills, thereby improving a better informed life.REFFERENCES1. Cooper, S. E. & Miller, J.A. (1991).MBTI learning style-teaching style discongruencies. Educational and Psychological Measurement 51: 699-706.2. Rosenak, C.M., Shontz, F.C. (1988), â€Å"Jungian Q-sorts: demonstrating construct validity for psychological type and the MBTI†, Journal of Psychological Type, Vol. 15 pp.33-45.3. Tieger, P.D. & Barron-T ieger, B.   (2001). Do What You Are: Discover the Perfect Career for You Through the Secret of Personality Type. Boston: Little, Brown, and Co.4. Walsh, W.B. & Holland, J.L. (1992) A theory of personality types and work environments. In Person-Environment Psychology: Models and Perspectives (ed. by W.B. Walsh et al.), pp. 35-69. Hillsdale, N.J.: Lawrence Erlbaum.5. Williamson, J. (2003) Instruction to the Myers-Briggs Personality Types and Holland Vocational Personality Types of Engineering Students, Journal of Engineering Education:195-203., Vol. 12 pp. 14-16.[1] Rosenak, C.M., Shontz, F.C. (1988), defines psychometrics as a branch of psychology that deals with design, administration and interpretation of quantitative psychological tests. [2] According to Coffield, F. Ecclestone, K. Hall, E. & Moseley, D (2004), this last trait is not included in the MBTI test. [3] Walsh, W.B. & Holland, J.L. (1992) state that it was thus spelt by Myers rather than the conventional extroversion. [4]Cooper, S.E. & Miller, J.A. (1991) explains that it is from this aspect that it acquired its referred to as the forced format. [5] Cooper, S. E. & Miller, J.A. (1991).From the above discussion on construct validity, it is evident that it is a weakness of the test.

Strategic Financial Ratio Analysis

Strategic Financial Ratio Analysis| Meghna Cement Mills Bangladesh Limited & Heidelberg Cement Bangladesh Limited For the year of 2009,2010 & 2011| Course Title : Fin 254 Section : 11 Submitted to : SFR Submission date: 09/04/2013| Group: 5Mohammad Riyasad Jamil (Id# XXXXXXXXXX) Saika Alam (Id# XXXXXXXXXX) Rifat Kaniz (Id# XXXXXXXXXX) Mohammad Shaikh Ashfaq (Id#1020668030) Anika Tabassum (Id# XXXXXXXXXX) Ishraq Aahmed (Id# XXXXXXXXXX) Introduction: Ratio analysis is the broad method by which financial data is converted into simple mathematic ratios for comparison. Since the data is widely available, calculating ratio analysis numbers can be accomplished by anyone with access to public financial statements.External usage of the ratio analysis data is widespread. While these ratios don’t tell the whole story, sharp deviations from an industry standard, can forecast growth or decline. In this project we have selected two companies from The Cement Industries of Bangladesh, one as our main company for which we intend to analyze through Ratio Calculation and the other one as the direct competitor to that company. The main company we have selected is the Heidelberg Cement and the competitor company is to be Meghna Cement Mills Bangladesh Limited. Both of these companies are enlisted in Dhaka Stock Exchange since 2007 till present.The whole purpose of this project is to comparatively evaluate the main company (The Heidelberg Cement) to its direct competitor (The Meghna Cement Mils Bangladesh Limited), to determine the over-all strategic financial health of The Heidelberg Cement. Heidelberg Cement Bangladesh Ltd, one of the group companies of Heidelberg Cement Group, founded in Germany in 1873, with its core products being cement, ready-mixed concrete, aggregates and related activities, is one of the leading producers of building materials worldwide. The group employs around 43,000 people in more than 50 countries.In 1999, Heidelberg Cement acquired its operation s in Bangladesh. The subsidiary Heidelberg Cement Bangladesh Ltd. , which is the market leader in Bangladesh, operates two cement grinding plants in Dhaka, the capital city, and in Chittagong. At present it has 9. 31 % market shares among total market share of 78. 29 % of 13 major cement manufacturers in Bangladesh. The company’s last estimated production from 2011 was 1,320,129 MT and observed sales were 1,318,110 MT. The last observed market value from 2001 of this company was 248. 8 Taka/share and the book value was 142 Taka/share.So the company was overvalued by the Market. These worked as the reasons for us to choose this company as a test company for The Strategic Ration Analysis. We have selected Meghna Cement Mills Bangladesh Limited to be the direct competitor of our test company for this project. Meghna Cement Mills Ltd is the first manufacturing unit of Bashundhara Group and it is one of the largest cement industries in the country producing nearly 1 million metric tons a year. The company is listed with both Dhaka and Chittagong Stock Exchanges. The last observed Share price of the company from 2011 was 136. 0 Taka/share. Although it’s a domestic company compared to The Heidelberg Cement, it gives quite a completion to the Heidelberg Group in Bangladesh as we are going to observe in the following part of this project. Ratio Analysis: When we calculate the ratios of a firm we have to go through five major categories of ratios as follows: * Liquidity Ratio : Which determines if the firm can make required payments for its maturing financial responsibilities through Liquid Cash drawn from its Assets * Productivity Ratio: Which measures the ability of a firm to generate Sales from its employed Assets Leverage Ratio: These ratios put a light on the Financial Leverages of a firm and the ability of that firm to meet those Financial Leverages effectively. * Profitability Ratio: These ratios measure how efficiently a unit of sales is turned int o profit for the company * Valuation Ratio: These ratios are used to assess how the market is valuing the firm (share price) in relationship to assets and current earnings, profits and dividends. Liquidity Ratio: There are three different ratios under liquidity ratios as follows; * Current Ratio * Working Capital Ratio Quick Ratio 1) Current Ratio: Measures the number of units of current assets to pay out for each unit of current liabilities. The formula for Current Ratio: Current Ratio = Current AssetsCurrent Liabilities Current Ratio = Current AssetsCurrent Liabilities Company name| 2011| 2010| 2009| Heidelberg cement| 0. 56 (x)| 0. 17 (x)| 0. 56 (x)| Meghna cement| 0. 70 (x)| 0. 64 (x)| 0. 66 (x)| Interpretation: In 2009 Heidelberg’s working capital ratio was 0. 56 (x) and in 2010 and in 2011 its working capital was 0. 17 (x) and 0. 56 (x) which implies its current asset went down and total asset went up in 2010.In 2009 Meghna’s working capital ratio was 0. 66 and in 2010 and in 2011 its working capital was 0. 64 and 0. 70 which I plies its current assent went down and total assent went up in 2010. Heidelberg holds a constant working capital ratio which decreased in 2010 and they managed to pull it up in 2011 where as Meghna’s working capital increased gradually from 2009 to 2011. 2) Working Capital Ratio: This Ratio measures the percentage of total assets that is invested in current assets. The formula of Working Capital Ratio: Working Capital Ratio = Current AssetsTotal AssetsWorking Capital Ratio = Current AssetsTotal Assets Company name| 2011| 2010| 2009| Heidelberg cement| 0. 56 (x)| 0. 17 (x)| 0. 56 (x)| Meghna cement| 0. 70 (x)| 0. 64 (x)| 0. 66 (x)| Interpretation: In 2009 Heidelberg’s working capital ratio was 0. 56(x) and in 2010 and in 2011 its working capital was 0. 17 (x) and 0. 56 (x) which implies its current asset went down and total asset went up in 2010. In 2009 Meghna’s working capital ratio was 0. 66 ( x) and in 2010 and in 2011 its working capital was 0. 64 (x) and 0. 70 (x) which implies its current asset went down and total asset went up in 2010.Heidelberg holds a constant working capital ratio which decreased in 2010 and they managed to pull it up in 2011 where as Meghna’s working capital increased gradually from 2009 to 2011. 3) Quick Ratio: The quick ratio gives a clearer indication of the firm’s ability to meet its maturing financial obligations out of current, liquid assets. The formula for the Quick Ratio: Quick Ratio = Current Assets-InventoriesCurrent Liabilities Quick Ratio = Current Assets-InventoriesCurrent Liabilities Company name| 2011| 2010| 2009| Heidelberg Cement| 1. 61(x)| 1. 74 (x)| 1. 51 (x)| Meghna Cement| 0. 86 (x)| 0. 80 (x)| 0. 79 (x)|Interpretation: In 2011 Heidelberg’s current asset without its inventory was 1. 61 (x) and in 2010 and 2009 it was 1. 74 (x) and 1. 51 (x) its current liabilities. In 2011 Meghna’s current asset w ithout its inventory was 0. 86 (x) and in 2010 and in 2009 it was 0. 80 (x) and 0. 79 (x) its current liabilities. Heidelberg’s performance declined over the year of 2009 to 2011. This decrease can be attributed to the fact that the relevant change in its current liabilities was more than the relevant change in its current asset and inventory. Whereas its competitor Meghna cement’s performance increased over the year. Productivity Ratios:There are five different ratios under the criterion of Productivity Ratio: * Receivable Turnover Ratio * Days Sales Outstanding (DSO) * Inventory Turnover * Total asset turnover ratio * Fixed Asset turnover Ratio 4) Total Asset Turnover Ratio (TA TO): This ratio estimates the number of units in Sales, produced by each units investment in the company’s Assets ; TA TO = Net SalesTotal Assets TA TO = Net SalesTotal Assets The formula for TA TO: Company name| 2011| 2010| 2009| Heidelberg Cement| 1. 0631 (x)| 1. 1586 (x)| 1. 1951 (x )| Meghna Cement| 1. 844 (x)| 1. 5855 (x)| 1. 4189 (x)| Interpretation: In 2009 Heidelberg’s TA TO was 1. 1951 (x), in 2010 and 2011 it’s TA TO was 1. 1586 (x) and 1. 0631 (x) of its Total Assets In 2009 Meghna’s TA TO was 1. 4189 (x), in 2010 and 2011 it’s TA TO was 1. 5855 (x) and 1. 4844 (x) of its Total Assets Both the two company’s TA TO s are relatively close to each other. However Meghna’s Ratios are a little bit higher than Heidelberg’s. So we could say that over the past three years Meghna has shown a little bit more efficiency than Heidelberg in utilizing its total assets for generating sales.In this scenario Meghana’s performance as a competitor is better than Heidelberg Cement 5) Fixed Asset Turnover Ratio (FA TO): This ratio estimates the number of units in Sales, produced by each unit investment in the company’s Net Fixed Assets; FA TO = Net SalesNet Fixed Assets FA TO = Net SalesNet Fixed Assets The formul a for FA TO: Company name| 2011| 2010| 2009| Heidelberg Cement| 2. 4539 (x)| 3. 0817(x)| 2. 7202 (x)| Meghna Cement| 4. 9925 (x)| 4. 3774 (x)| 4. 1159 (x)| Interpretation: In 2009 Heidelberg’s FA To was 2. 7202 (x) and in 2010 it went up to 3. 817 (x) of its Fixed Assets. But in 2011 the FA TO went down to 2. 4539 (x), the company’s Fixed Assets. This indicates that in 2011 Heidelberg invested more in its Current Assets in comparison to the previous years. As a result the company was generating fewer sales from its Fixed Assets compared to 2009 & 2010. In 2009 Meghna’s FA TO was 4. 1159 (x) its Fixed Assets. In 2010 and 2011 the FA TO was 4. 3774 (x) and 4. 9925 (x) of its Fixed Assets. Meghna had a significant rise in its FA TO over the years. This means they are utilizing their Fixed Assets more efficiently for generating sales.Over the years Meghna has shown efficiency in utilizing its Fixed Assets and has generated significantly higher sales, on the other ha nd Heidelberg’s Sales generating capacity from its Fixed Assets has declined. So Meghna holds an upper hand when it comes to utilize its Fixed Assets effectively. Leverage Ratios: There are four different ratios under the criterion of Productivity Ratio: * Debt to Asset ratio: * Debt to Equity: * Times Interest Earned: * Cash Flow to Debt ratio: 1) Debt to Asset Ratio: This ratio indicates the proportion of total assets financed by debt at a particular point in time; The formula for Debt to Asset Ratio:Debt to Asset = Total LiabilitiesTotal Assets X 100 Debt to Asset = Total LiabilitiesTotal Assets X 100 Company name| 2011| 2010| 2009| Heidelberg Cement| 34. 2989 (%)| 33. 7784 (%)| 34. 1261 (%)| Meghna Cement| 83. 5524 (%)| 81. 5425 (%)| 79. 7020 (%)| Interpretation: Heidelberg did not have any significant change in its Debt to Asset Ratio over the year though it went down by a little in 2010. We can see that in 2009, 34 % of its Assets were financed by Debt and in 2010 and 2 011 33% and 34% of its Assets were financed by its Liabilities.Heidelberg holds a large proportion of Assets to its Equity and a less proportion to debt. Meghna has a large Debt to Asset Ratio which has a significant rise over the years, from 2009 to 2011 its debt to asset went up from 79% to 83%. Meghna holds a large proportion of Assets financed by its Liabilities. In comparison, Heidelberg has the upper hand In this segment, because it has a lot less Assets exposed to Debt rather than Meghna, which has a large Debt against its Assets. Dupont Analysis: At the end of the project we’d like to draw a concluding summary by using the concept of Dupont Analysis in comparative traits for both of the firms.The Dupont system provides a good starting point for any financial analysis. It shows that financial strength in a company comes from three major sources, rather it focuses on three major segments; * Profitability : Profit generated from a company’s Sales * Asset Utilizati on : Sales generated from investment in Assets * Debt Utilization: Portion of Assets that is held against Owner’s Equity. Return on Equity (ROE) = Net IncomeSales X SalesTotal Asset X Total AssetTotal Equity Or, ROE = Profit Margin (PM) X TA TO X Equity Multiplier (EM)Return on Equity (ROE) = Net IncomeSales X SalesTotal Asset X Total AssetTotal Equity Or, ROE = Profit Margin (PM) X TA TO X Equity Multiplier (EM) So, the formula for Dupont looks like this: Dupont analysis for Heidelberg Cement: From the Ratios we calculated earlier (PM, TA TO & EM); we get the following values for ROE by using the Dupont formula: Year| PM| TA TO| EM| ROE| 2011 | 8. 8028%| 1. 0631 (x)| 1. 5220 (x)| 14. 3243%| 2010| 12. 0014%| 1. 1586 (x)| 1. 5101 (x)| 20. 977%| 2009| 11. 5059%| 1. 1951 (x)| 1. 5181 (x)| 20. 8749%| Interpretation: From 2009 to 2010 we can see a slight rise up from 20. 8749% to 20. 9977% in the ROE Ratio for Heidelberg Cement. However from 2010 to 2011 there was major decline in ROE of 20. 9977% to 14. 3243%. Where TA TO and EM remains approximately similar, the ROE falls due to a declining Profit Margin in the year of 2011. So undermining the decline in the Profit Margin, it is safe to say that Heidelberg showed a considerable poor performance in generating Profit from its Sales, in the last observed year of 2011.