All About Common Chinese Punctuation Marks

About Common Chinese Punctuation Marks Chinese accentuation marks are utilized to compose and explain composed Chinese. Chinese accentuation marks are comparative in capacity to English accentuation checks yet once in a while contrast in the structure or look. Every Chinese character are kept in touch with a uniform size, and this size additionally stretches out to accentuation marks, so Chinese accentuation checks ordinarily occupy more room than their English partners. Chinese characters can be composed either vertically or on a level plane, so the Chinese accentuation marks alter position contingent upon the course of the content. For instance, enclosures and quotes are pivoted 90 degrees when composed vertically, and the full stop mark is put beneath and to one side of the last character when composed vertically. Regular Chinese Punctuation Marks Here are the most regularly utilized Chinese accentuation marks: Full Stop The Chinese full stop is a little circle that takes the space of one Chinese character. The Mandarin name of the full stop is Ã¥  ¥Ã¨â„¢Ã¿/Ã¥  ¥Ã¥  · (jã ¹ ho). It is utilized toward the finish of a basic or complex sentence, as in these models: è «â€¹Ã¤ ½ Ã¥ ¹ «Ã¦Ë†'è ² ·Ã¤ ¸â‚¬Ã¤ » ½Ã¥ ±Ã§'™ã€‚è ¯ ·Ã¤ ½ Ã¥ ¸ ®Ã¦Ë†'ä ¹ °Ã¤ ¸â‚¬Ã¤ » ½Ã¦Å  ¥Ã§ º ¸Ã£â‚¬â€šQÇ ng nç  bä ng wç' mçži yä « fã ¨n bozhÇ .Please assist me with purchasing a newspaper.é ¯ ¨Ã© ­Å¡Ã¦Ëœ ¯Ã§  ¸Ã© ¡Å¾Ã¤ ¸ Ã¦Ëœ ¯Ã© ­Å¡Ã© ¡Å¾Ã¨ â„¢Ã¨  æ˜ ¯Ã§  ¸Ã© ¡Å¾Ã¤ ¸ Ã¦Ëœ ¯Ã© ³ ¥Ã© ¡Å¾Ã£â‚¬â€šÃ© ² ¸Ã© ± ¼Ã¦Ëœ ¯Ã¥â€¦ ½Ã§ ± »Ã¤ ¸ Ã¦Ëœ ¯Ã© ± ¼Ã§ ± »Ã¨ â„¢Ã¨  æ˜ ¯Ã¥â€¦ ½Ã§ ± »Ã¤ ¸ Ã¦Ëœ ¯Ã© ¸Å¸Ã§ ± »Ã£â‚¬â€šJÄ «ngyà º shã ¬ shã ²u lã ¨i, bã ºshã ¬ yã º lã ¨i; biä nfã º shã ¬ shã ²u lã ¨i, bã ºshã ¬ niçžo là ¨i.Whales are vertebrates, not fish; bats are warm blooded animals, not feathered creatures. Comma The Mandarin name of the Chinese comma is é€â€"è™ÿ/é€â€"Ã¥  · (dã ²u ho). It is equivalent to the English comma, aside from it takes the space of one full character and is situated in the line. It is utilized to isolate provisos inside a sentence, and to show stops. Here are a few models: Ã¥ ¦â€šÃ¦Å¾Å"é ¢ ±Ã© ¢ ¨Ã¤ ¸ Ã¤ ¾â€ Ã¦Ë†'å€'Ã¥ ° ±Ã¥â€¡ ºÃ¥Å"‹æâ€"… è ¡Å"。å ¦â€šÃ¦Å¾Å"Ã¥  °Ã© £Å¾Ã¤ ¸ Ã¦  ¥Ã¦Ë†'ä » ¬Ã¥ ° ±Ã¥â€¡ ºÃ¥â€º ½Ã¦â€"… è ¡Å'。Rà ºguÇ' tifäng bã ¹ li, wç'men jiã ¹ chÃ¥ « guã ³ lÇšxà ­ng.If the storm doesn't come, we will travel abroad.ç  ¾Ã¥Å" ¨Ã§Å¡â€žÃ©â€º »Ã¨â€¦ ¦Ã§Å"ÿæ˜ ¯Ã§â€ž ¡Ã¦â€°â‚¬Ã¤ ¸ Ã¨Æ' ½Ã£â‚¬â€šÃ§Å¾ °Ã¥Å" ¨Ã§Å¡â€žÃ§ µÃ¨â€ž'çÅ"ÿæ˜ ¯Ã¦â€" 所ä ¸ Ã¨Æ' ½Ã£â‚¬â€šXinzi de dinnçžo, zhänshã ¬ wã º suç' bã ¹ nà ©ng.Modern PCs, they are genuinely basic. Count Comma The count comma is utilized to isolate list things. It is a short scramble going from upper left to base right. The Mandarin name of the identification comma is é è™ÿ/é ¡ ¿Ã¥  · (dã ¹n ho). The contrast between the specification comma and the standard comma can be found in the accompanying model: Ã¥â€"Å"〠Ã¦â‚¬'〠Ã¥â‚¬Ã£â‚¬ Ã¦ ¨â€šÃ£â‚¬ Ã¦â€žâ€ºÃ£â‚¬ Ã¦Æ' ¡Ã£â‚¬ Ã¦ ¬ ²Ã¥  «Ã¥ Å¡Ã¤ ¸Æ'æÆ'… 。åâ€"Å"〠Ã¦â‚¬'〠Ã¥â‚¬Ã£â‚¬ Ã¤ ¹ Ã£â‚¬ Ã§Ë† ±Ã£â‚¬ Ã¦  ¶Ã£â‚¬ Ã¦ ¬ ²Ã¥  «Ã¥ Å¡Ã¤ ¸Æ'æÆ'… 。XÇ , nã ¹, Ä i, lã ¨, I, à ¨, yã ¹, jiozuã ² qä « qà ­ng.Happiness, outrage, pity, happiness, love, loathe, and want are known as the seven interests. Colon, Semicolon, Question Mark, and the Exclamation Mark These four Chinese accentuation marks are equivalent to their English partners and have a similar utilization as in English. Their names are as per the following: Colonå†'è™ÿ/å†'Ã¥  · (mo ho) - Semicolon - 分è™ÿ/分å  · (fänho) - Question Mark - å• Ã¨â„¢Ã¿/éâ€" ®Ã¥  · (wã ¨nho) - Exclamation Mark - é ©Å¡Ã¥Ëœâ€ Ã¨â„¢Ã¿/æÆ'Å¡Ã¥  ¹Ã¥  · (jä «ng tn ho) - Quotes Quotes are called Ã¥ ¼â€¢Ã¨â„¢Ã¿/Ã¥ ¼â€¢Ã¥  · (yç n ho) in Mandarin Chinese. There are both single and twofold statement marks, with the twofold statements utilized inside the single statements: ã€Å"...〞...〠...〠 Western-style quotes are utilized in streamlined Chinese, yet customary Chinese uses the images as appeared previously. They are utilized for cited discourse, accentuation and some of the time for formal people, places or things and titles. è€ Ã¥ ¸ «Ã¨ ª ªÃ£â‚¬Å"ä ½ å€'è ¦ Ã¨ ¨ËœÃ¤ ½  Ã¥Å"‹çˆ ¶Ã¨ ª ªÃ§Å¡â€žÃ£â‚¬Å¾Ã© 'Ã¥ ¹'è ¦ Ã§ «â€¹Ã¥ ¿â€"Ã¥ Å¡Ã¥ ¤ §Ã¤ ºâ€¹Ã¤ ¸ Ã¨ ¦ Ã¥ Å¡Ã¥ ¤ §Ã¥ ®ËœÃ£â‚¬ Ã©â‚¬â„¢Ã¥  ¥Ã¨ © ±Ã£â‚¬â€šÃ£â‚¬ Ã¨â‚¬ Ã¥ ¸Ë†Ã¨ ¯'â€Å"ä ½ ä » ¬Ã¨ ¦ Ã¨ ® °Ã¤ ½  å› ½Ã§Ë† ¶Ã¨ ¯'的‘é 'Ã¥ ¹'è ¦ Ã§ «â€¹Ã¥ ¿â€"Ã¥ Å¡Ã¥ ¤ §Ã¤ ºâ€¹Ã¤ ¸ Ã¨ ¦ Ã¥ Å¡Ã¥ ¤ §Ã¥ ®ËœÃ¢â‚¬â„¢Ã¨ ¿â„¢Ã¥  ¥Ã¨ ¯ Ã£â‚¬â€šÃ¢â‚¬ LÇŽoshÄ « shuÃ¥ : â€Å"NÇ men yo jã ¬zhu Guã ³fã ¹ shuÃ¥  de ‘qä «ngnin yo lã ¬ zhã ¬ zuã ² dshã ¬, bã ¹yo zuã ² d guä n’ zhã ¨ jã ¹ hu.†The instructor stated: â€Å"You must recall the expressions of Sun Yat-sen - ‘Youth ought to be resolved to do enormous things, not to make huge government.’

Representational photograph Essay Example

Illustrative photo Paper So what is unique about this photograph? In Semiotics this image is distinguished as a Representational photo which present us with an issue since they regularly seem to have been brought about by genuine occasions (Sean Hall 2007, 16) The utilization of semiotics in this image had empowered watchers to comprehend the view of the genuine word. It gave them a thought of what the life resembles in nations where lion's share individuals and creatures are starvation. Kevin Carter realized that this image would have been tensioning on the grounds that the kid in the photograph was honest, poor, delicate, sad and frail. The presence of vulture wanting to make a supper from babies substance is stressing in light of the fact that the youngster will be its prey, which is terrible for mankind. Typically the vultures in poor nations regularly in African landmass are answerable for cleaning the earth and they are esteemed for their reality since government is unequipped for finishing this obligation. Hypothetically Kevin Carter had caught a second where he proposes what may have preceded the second and what may happen after it. The tranquility of the activity is the idea that makes story strain and desire. We will compose a custom exposition test on Representational photo explicitly for you for just $16.38 $13.9/page Request now We will compose a custom article test on Representational photo explicitly for you FOR ONLY $16.38 $13.9/page Recruit Writer We will compose a custom article test on Representational photo explicitly for you FOR ONLY $16.38 $13.9/page Recruit Writer With successful examination of an image with semiotics; this photo would feature the genuine and upsetting distinction between how we may feel about a picture of a real demise. Vultures are unequipped for executing a go after their own. This is the principle motivation behind why Kevin Carter put two living elements in a single casing as both are unfit and needing food with the end goal for them to endure. They are both battling for their reality. The young lady is short good ways from the camp however doesn't appear to can possibly continue. The stance of the young lady means that her capacity has reached a conclusion and going to free the skirmish of sticking to the life. A powerful translation of signs empowers watchers to comprehend the possibility that is attempted to be conveyed. Another undertone the watchers get from this image is the impact of Humanitarian debacle. In Africa the fundamental cataclysmic event is draughtiness. The image was taken in a radiant day which gives the watchers presumption that Sudan is progressively similar to a desert where its exceptionally difficult to improve the territory to help Sudanese inhabitants. In this recognition the utilization of semiotics empowers watchers to comprehend that the present circumstance is deteriorating step by step and something must be finished. This photograph carries tension to the watchers when the utilization of semiotics becomes possibly the most important factor to clarify how this significance is created from signs and codes in the casing for example the young lady, the vulture, the dried harvests and the dirt. In detail the dried yields on the foundation are a sign which gives this thought to the watchers of battling deserted territory. Comparable to this Global warming is another undertone which may be a presumption that is grown up around the signs, for example, dried soil stresses that there hasnt been a drop of downpour at Sudan for quite a while. Reasonably in Semiotics terms an inability to distinguish the easygoing connection between the signifier and the meant is significant when we understand that a disappointment can bring about human risk. The stance of the gaunt young lady empowers watchers to think profound and urges watchers to ask them selves the inquiry of what are the chances the young lady is alive today? They at that point arrive at the resolution that she is most likely dead or on the off chance that she is alive she presumably has changeless harm in the wake of experiencing such a troublesome time of starvation. In this image with the utilization of semiotics, riddle gives the perusers a spot for theory. Kevin Carter utilizes a story snapshot of life which the watchers can just ponder. Others put themselves in Kevin Carters shoes. There have been such a significant number of contentions that the picture taker ought to have interceded as quickly as time permits as opposed to snapping the picture and truly its one of the speculations of his definitive death. The trouble position of the young lady could likewise be accused on common war that has been proceeding for a quarter century. Her folks nonappearance gives the watchers an idea that they have been a survivor of brutality or a contamination of dangerous sickness which is another large causal of death in Sudan. Here we understand the worth and viability of Semiotics which permits the perusers to see and see how importance is assembled and ignored in a visual picture of Kevin Carters grant winning photo. Also it empowers the watchers to consider scope of implications and attributions that are offered from blends of signs in the frame. This picture carries uncertainty to Theist watchers, regardless of whether if God exists or not. The stance of Sudanese young ladies is the sign that carries pressure to the continuous contentions of presence of god. On the off chance that there is a divine being, it would not permit the sweet blameless young lady to be in this sickening circumstance which shock the watchers. At ideological degree of this image a few people recollect the ineptitude of humankind. Rather than cash being spent on weapons and war it would be truly positive to stop a large number of both human and creatures endure terribly day by day. Thusly a successful utilization of semiotics empowers watchers to understand their own activity and urges them to change their disposition towards factors. For instance from Kevin Carters Picture a last idea of Unfortunate Africa is evoked which urges watchers to be progressively beneficent and dynamic for an improvement towards destitution. Be that as it may, then again William Leiss contended that viable investigation of media relies upon people individual abilities .can do minimal more than express the conspicuous in a complex and frequently self important way (Leiss et al. 1990, 214). This would imply that semiotics would not be extremely valuable for certain people as it doesn't give any profit to them of dissecting an image all the more adequately. In this occurrence our capacity to translate and decipher a message relies especially upon what we think about and how we judge. (Sean Hall 2007, 32) Semiotics can likewise convince people to make wrong investigation of a media source. The goal is the end point in the excursion of the message which could imply that the message can be modified during its excursion in view of an equivocalness in its appearance. Hypothetically Dominic Strinati inferred that the connection among signifiers and meant might be ontologically subjective yet not socially. Strinati, Dominic (1995, 125). Reasonably a lot of roses could imply enthusiasm between two sweethearts. On the off chance that its deciphered along these lines, an individual would be predisposition on the social relationship which the sign is found. For instance they could have in truth been sent as an affront, joke, provocation, etc. In this model semiotics can't be viewed as a valuable way to deal with the examination of the media since individuals could make translation which would change their perspectives and practices towards certain concepts. Another impediment of semiotics is that there is no last determination of a visual picture. There are such huge numbers of thoughts evoked from the image which confounds the people conviction. In this model it carries uncertainty to the person which makes them awkward. In basic terms people are not controlled by semiotics process yet are molded by them. End Semiotics can be viewed as critical expertise for individuals who need to comprehend the multifaceted nature and precise examination of media which is a significant component of the cutting edge world. The individuals who doesnt have this fundamental expertise are at risk for those talented ones, where there own conclusions will control them. Bill Nichols has made this understood in one his books insofar as signs are delivered, we will be obliged to get them. This involves nothing not as much as endurance (Nichols 1981, 8). Given that media is the focal idea of correspondence, individuals presently make progressively exact examination of visual and literary language contrasted with bygone eras.

Even College Social Drinkers Can Experience Blackouts

Even College Social Drinkers Can Experience Blackouts Addiction Alcohol Use Print Even College Social Drinkers Can Experience Blackouts By Buddy T facebook twitter Buddy T is an anonymous writer and founding member of the Online Al-Anon Outreach Committee with decades of experience writing about alcoholism. Learn about our editorial policy Buddy T Updated on January 27, 2020 Geber86 / Getty Images More in Addiction Alcohol Use Binge Drinking Withdrawal and Relapse Children of Alcoholics Drunk Driving Addictive Behaviors Drug Use Nicotine Use Coping and Recovery Alcohol is still the most popular and widely used drug for college students. It is estimated that almost 75% of all college students are current drinkers, and many of them engage in binge drinking. With that many students drinking to excess on a regular basis a certain percentage of them are going to experience memory blackouts, and that can present problems as these young drinkers engage in risky behaviors during those blackout periods. People experiencing blackouts can make dangerous choices when their judgment, impulse control, and decision-making ability is impaired by intoxication. And, research shows that female students are at even greater risk of making hazardous choices during blackouts compared to male students. Researchers at Duke University Medical Center conducted a survey of 772 college students to examine the issue of blackouts. Almost Half Had Experienced a Blackout Results of the email survey included: 74.2% of students drank within the past two weeks9.4% had experienced a blackout in the past two weeks40% had a blackout in the past 12 months This study shows that the common assumption that blackouts only happen to alcoholics is wrong, said Aaron White, Ph.D., an assistant research professor of psychiatry at Duke and lead author of the study. It is very possible for social drinkers, such as the students we surveyed, to experience blackouts if they overdo their consumption of alcohol. The study suggests that college students are much more familiar with blackouts than many people, including us, assumed. Frequency of Blackouts The student group surveyed was evenly divided among freshmen, sophomores, juniors and seniors, and between males and females. All students included in the survey were 18 years or older. The 19-point survey asked students for information on demographics, drinking habits, family history of problems with alcohol, the frequency of blackouts and the types of events the students later learned they had participated in during the blackout episode. During a blackout, an individual is capable of participating in salient, emotionally-charged events but will have no recollection of what has occurred, White reported. Many students in the study indicated that they later learned they had engaged in a wide range of risky activities during their blackouts - such as having unprotected sexual intercourse, vandalizing property or driving a car - which could have led to serious health or legal consequences. Making Hazardous Choices White said that due to the high level of intoxication needed to experience a blackout, other psychological processes may also be impaired. Impairments in judgment, decision-making, and impulse control could lead an individual to make potentially hazardous choices during blackouts, White said. The survey revealed that although female students drank less heavily than male students, they were just as likely to have blackouts, which could put them at greater risk for a variety of negative consequences. Rapid Consumption May Be a Key The Duke researchers believe consuming large quantities of alcohol very quickly increases the risk of blackouts because it increases the drinkers blood alcohol content at a rate that catches the brain regions critical in the formation of memories unprepared to deal with that much alcohol. When alcohol is consumed slowly, the body has time to develop enough of a degree of tolerance to protect the brain from blackouts. A Dangerous Rite of Passage In college, in general, young people are living independently for the first time in their lives, said H. Scott Swartzwelder, Ph.D., clinical professor of psychiatry at Duke, a senior research career scientist with the U.S. Department of Veterans Affairs and a study co-author. With new freedoms, many adolescents go into an experimental mode which could include experimenting with alcohol and heavy drinking. Alcohol consumption is often viewed as a rite of passage for young adults and has become widely accepted throughout American culture, but people should be aware that the culture of drinking is quite different than it was some years ago. Many students today drink specifically to get drunk. This increases the risk of all sorts of consequences, including blackouts. Long-Term Consequences These study findings are very important because they support a large literature suggesting that students are consuming large quantities of alcohol and that they will suffer consequences, said Fulton T. Crews, Ph.D., director of the Center for Alcohol Studies at the University of North Carolina, Chapel Hill. Brain damage incurred during adolescence may become significant later in life as the processes of aging reduce the reserve capacity of individuals, he said. Degenerative problems may become more prominent as people get older. So the risks of these types of episodes are not only the risks of trauma and harm during the blackout, but could include long-term consequences to health later in life. The Duke scientists suggest that standard alcohol-awareness training for students should include more information about blackouts, why they happen, and the potential dangers. We want to provide students with information that will help them make good, informed decisions regarding their use of alcohol, said White. It is important for students to know what blackouts are and what factors seem to increase the risk of blackout occurrence so that they can be avoided.

WEBER Surname Meaning and Family History

Weber is an occupational surname given to one skilled in the ancient craft of weaving, from the Middle High German word wà «ber,  a derivative of weben, meaning to weave.  The Weber surname is sometimes Anglicized as Webber or Weaver. Weber is the 6th most common German surname. It is also frequently found as a  Czech, Hungarian, Polish or  Slovenian surname.  WEBB and  WEAVER are English variants of the name. Surname Origin: German Alternate Surname Spellings:  WEEBER, WEBBER, WEBERE, WEBERER, WAEBER, WEYBER, WEBERN, VON WEBER, VON WEBBER Famous People With the WEBER  Surname Max Weber  -  19th-century German sociologist and one of the founders of modern sociologyCarl Maria von Webber -  German composer, conductor, pianist and  guitaristConstanze Weber - wife of Wolfgang Amadeus MozartAlfred Weber - German economist, geographer, and sociologistJohn Henry Weber - American fur trader and explorerJoseph Weber - American physicistLudwig Weber -  German Protestant pastor and social reformer Where Is the WEBER Surname Most Common? According to surname distribution from Forebears, WEBER is the 3rd most common surname in Germany. It is also very common in Switzerland, where it ranks 7th, and Austria, where it is the 19th most prevalent last name. While Weber is common throughout Germany, WorldNames PublicProfiler indicates it is most frequent in southwestern Germany, in the regions of Rheinland-Pfalz, Saarland, and Hessen. Weber is also a very common surname in Gussing, Austria. Genealogy Resources for the Surname WEBER Weber  Family Crest - Its Not What You ThinkContrary to what you may hear, there is no such thing as a Weber  family crest or coat of arms for the Weber surname.  Coats of arms are granted to individuals, not families, and may rightfully be used only by the uninterrupted male-line descendants of the person to whom the coat of arms was originally granted. Weber Y-Chromosome DNA  Surname ProjectWEBERs from all over the world are participating in this group DNA project in an attempt to learn more about Weber family origins. The website includes information on the project, the research done to date, and instructions on how to participate. WEBER  Family Genealogy ForumFree message board is focused on descendants of Weber  ancestors around the world. FamilySearch - WEBER  GenealogyExplore over 5 million results from digitized  historical records and lineage-linked family trees related to the Weber  surname on this free website hosted by the Church of Jesus Christ of Latter-day Saints. WEBER  Surname Mailing ListFree mailing list for researchers of the Weber  surname and its variations includes subscription details and a searchable archives of past messages. DistantCousin.com - WEBER  Genealogy Family HistoryExplore free databases and genealogy links for the last name Weber. GeneaNet - Weber  RecordsGeneaNet includes archival records, family trees, and other resources for individuals with the Weber  surname, with a concentration on records and families from France and other European countries. The Weber Genealogy and Family Tree PageBrowse genealogy records and links to genealogical and historical records for individuals with the Weber  surname from the website of Genealogy Today. References: Surname Meanings & Origins Cottle, Basil.  Penguin Dictionary of Surnames. Baltimore, MD: Penguin Books, 1967.Dorward, David.  Scottish Surnames. Collins Celtic (Pocket edition), 1998.Fucilla, Joseph.  Our Italian Surnames. Genealogical Publishing Company, 2003.Hanks, Patrick, and Flavia Hodges.  A Dictionary of Surnames. Oxford University Press, 1989.Hanks, Patrick.  Dictionary of American Family Names. Oxford University Press, 2003.Reaney, P.H.  A Dictionary of English Surnames. Oxford University Press, 1997.Smith, Elsdon C.  American Surnames. Genealogical Publishing Company, 1997.

Applied Behavior Analysis In Psychology - 852 Words

This method was implemented alongside of the student’s typical Applied Behavior Analysis interventions. The researchers addressed certain elements they wanted to monitor in the students. These were eye contact, length of time being seated, body posture, body awareness, balance and depth perceptions, imitation, receptive skills related to spatial relationships, and self-injurious behavior (Radhakrishna et al., 2010). The results from this study were broken up into three parts: baseline characteristics, impact on the symptoms associated with Autism Spectrum Disorder, and effects on the behaviors, communication skills, imitation, and repetitive behaviors. During the beginning practices, the behaviors that were coming up in the classrooms†¦show more content†¦Many researchers believe that individuals with Autism Spectrum Disorder receive input from their muscle movements better than from their eyes and ears, like a typically developing individual would (Goldberg, 2004). Some individuals respond well to deep squeezes or pressure on their bodies. An example of this would be weighted blankets or weighted vests that are often used as calming techniques in classrooms. The act of putting physical movement with language prompts improved the students’ ability to recall information, imitation skills, and receptive responses to verbal cues. Research suggests that the central nervous system in individuals with Autism processes information differently. This may cause an over or under stimulation. The use of repetitive behaviors is often used for students to cope with an over stimulation or a frustrating feeling that they may be experiencing. The repetitiveness of the Integrated Approach to Yoga Therapy may have made the children in the study experience a sense of calmness and comfort. Impaired social skills are often associated Autism Spectrum Disorder. Social skills are described as the abilities to interact with other people. 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Bae Assignment Free Essays

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BAE Business Case Study Submitted by: Susan Pacheco April 17, 2013 Table of Contents Part 1: Executive Summary3 Part 2: Main Issue4 Part 3: Systemic Issues4 Leadership Project Management issues4 Political Pressure to Fast-Track Project5 Design Issues5 Communication Breakdowns6 City Involvement (Delays)6 BAE Conditions on Contract Signing (April 1992)6 Part 4: Environmental Root cause Analysis7 Qualitative Analysis:7 Project Management7 People (Unqualified):8 Build-Design8 Economic Political Considerations8 Success with United Airlines9 Part 5: Alternatives and/or Options:9 Alternative A9 Alternative B11 Part 6: Recommendations and Implementation11 Recommendation:11 Recommendations Implementation Plan:12 Part 7: Monitor and Control:13 Part 8: Conclusion:13 Part 9: References, Exhibits and Appendixes13 Part 1: Executive Summary In order to address the immediate issue of the letter received by the City Mayor holding us responsible for the delay of the new baggage system by charging BAE a penalty of $12k/day backdated to October 29, 1993 and also requesting a charge back for the $50M tug-and-cart baggage backup system, immediate action and priority needs to be given to address this accusation. A prompt analysis of our project plan and missed milestones with reasons and factual data is critical in defending our position. We need to prove where certain milestones outside our control were missed and the domino effect it created and where dependencies to our commitments were broken and by whom. We will write a custom essay sample on Bae Assignment or any similar topic only for you Order Now There were many points at which we voiced our concerns on the project delays and access issues that further hindered our ability to perform but no one took responsibility or acknowledged the delay. In addition, the Build-Design approach has in itself created many hurdles and time delays outside our control as well as created unfavourable working conditions that were unsustainable for our teams. Our current situation is a mere symptom of a lack of a proper project management structure and qualified personnel at DIA. Also lack of sponsorship by the city Mayor has created silos and a negative effect on the project flow. The build-design approach is one of the biggest issues but with proper management it can be overcome. Based on BAE’s experience and successful past projects, we can confidently recommend a new structure that has worked in past projects. Given that history I feel we need to propose a drastic change to DIA’s Project Management team and propose a new structure which includes a new Project Manager to oversee the entire project team, appointment of additional team members (see Appendix 1) and new hires with the right skill sets. See Appendix 2 to see RACI Matrix proposal. The proposal is to continue with the new airport wide baggage system implementation only under the condition that DIA restructure their project management team and obtains sponsorship from the City Mayor and Aviation Director. A team approach must be understood by all parties involved as there are too many moving parts and it is impossible to expect BAE to independently manage all moving parts for what is out of our control especially with a Build-Design plan. This new platform will allow BAE and DIA’s members to educate, make timely critical decisions, identify risks and critical milestones and hold members accountable for their respective roles. Assuming our proposal is accepted, the overall expected timing from initial contact to identifying risks under the new team structure is 9 weeks. With this plan, a backup system would not be required, thereby avoiding this $50M additional cost. The seriousness of this accusation would put BAE at permanent financial risk if not bankruptcy. Promptness and priority in handling this situation is critical. Beyond the financial impact, there is also the reputation BAE has always enjoyed as being a leader in the marketplace worldwide can also have a negative effect on current and future projects with other institutions. Part 2: Main Issue City of Denver issued a penalty request of $12k/day backdated to original start-up completion date of October 29, 1993 including a $50 M charge back for a tug-and-cart baggage backup system. This main issue is a result of the systemic issues which are listed below. Part 3: Systemic Issues Leadership Project Management issues Shared leadership between city of Denver Consultant team created many inefficiencies, duplicate work and lack of real ownership. Additionally no organizational structure change at DIA was ever made to accommodate this new baggage system project. Further complicating the matter was the communication channels and roles between city, PMT and consultants were not defined or controlled. All were working in silos. Engineers are inefficiently creating piles of change documentation that are not really managed or communicated. Waste of time just to cover their tracks. There is NO real qualified Project Manager to oversee the entire project and bridge the gap between DIA and their top Carriers United Continental, City Council and BAE. We have been expected to manage the project with everyone working in their silos with no real support or team goal or management as a whole. In order to keep things moving along, we need a DIA counterpart to produce engineering alternatives and make quick decisions on cost, alternatives, scheduling etc. Currently there are too many chefs in the kitchen with no real one person in charge. They had to balance project administration political and social responsibilities. The Working Area 4 Managers that was assigned to us have no experience in airport construction, baggage system technologies or new technologies, their main experience is in construction project control management. As such they don’t know how to properly support our requests and needs to keep the project going forward. In addition to this since there is no project manager in charge and lack of proper structure we have to liaise with and to obtain feedback from each Concourse Senior manager and Main terminal manager. It is apparent that they each operate independently making any agreement difficult as we need to transcend the decisions and get agreement across all four managers. It is apparent that they each are making independant decisions and trying to tie them all together is very difficult. You read "Bae Assignment" in category "Papers" This creates further bottlenecks for us. Lack of a designated project manager to oversee and manage inputs/outputs from the City, DIA and BAE created a painful process, hurt relationships and lack of accountability and control. Head of DIA project resigned and death of Chief Airport Engineer Walter Slinger (Oct. 1992), a strong proponent of the baggage system and closely involved in negotiations with us had a significant impact on the project. He was a decisive, empowered decision maker who knew how to address problems and get them resolved promptly. His successor Gail Edmond was not successful in carrying ut the same duties as she was much less experienced and lacked the autonomy, experience and guts to make much needed quick decisions. Her hands were tied with red tape and took much longer to make any decisions. Overall we had a poor relationship with the management team who had no prior baggage handling competence or experience. The project was mainly treated as a major public works project resulting in a lack of support when we needed it for any of our complaints on timing, access etc†¦ Political Pressure to Fast-Track Project There were many factors that influenced and pressured this project to a fast-track pace which had some resulting serious consequences both in delays and cost. This pushed the project into a Build-Design project which had created some major delays and cost increases. Some of the other influencing factors are as follows: * DBO Date of Beneficial Occupancy payback date of January 1, 1994 * Project Management Team pressured to push project ahead at all cost due to long periods of assessment, negotiation and final approvals. Political pressure from Mayor to force project through a fast-track for their own political stature gain and public optics Design Issues The decision to install a new large scale airport-wide baggage system came after the building design was already determined and we were faced with fully defined project specs which underplayed the importance and significance of some important requirements of a baggage system (space, electrical power needs, building structure requirem ents, ventilation and air conditioning to dissipate) These issues created further bottlenecks and delays in our implementation. Further delays and changes resulted from DIA’s lack of consulting with and conducting a needs assessment with their two top carriers United Continental which accounted for more than 70% of passenger traffic prior to project start. Their needs were never incorporated into the initial design and program, as a result further changes were requested to design and software just 6 months prior to the needed opening date. We had to deal with this even though the mechanical and software designs were supposed to be frozen. Communication Breakdowns We communicated to United we would need 1 more year to get system up and running but no one listened nor was the message passed along to DIA or the City. We also at many points tried to engage DIA about the delays, access issues and construction bottlenecks that was causing direct delays in our work and we were not given precedent or access when needed. Infact the attitude was that these construction workers were not reporting to BAE to have to listen. City Involvement (Delays) Law restrictions forcing 30% of minority-owned firms and 6% women. This law forced us to forgo our original proposal of using our own qualified employees in lieu of external outside contractors which estimated an increased cost of approximately 60%. Some of our expertise was lost due to this fact in addition to causing further delays to our project. In Sept. 1993 we went into maintenance negotiations which lead to a 2 day strike of 300 millwrights that was joined by 200 electricians over a $8/hr delta pay dispute. We lost the maintenance contract as well as a 2 day delay. BAE Conditions on Contract Signing (April 1992) The conditions and milestones we placed upon accepting the job was not respected by the city or adhered to, nor was there any provisions made to address issues along the way. ( i. e. freeze dates for mechanical design, software design, power requirements and the like, all around access, timely completion of certain areas, provision of permanent power, computer rooms†¦ these were all set as milestones in our project plan. The city had agreed to these conditions with unrestricted access with priority for BAE equipment yet we didn’t even have reasonable access. For example: * Electricians had to leave work where concrete grinders were creating clouds of dust, * Fumes from chemical sealants forced others to flea * Trucks blocking and restricting * Design Freeze dates not adhered to: Airlines requested changes to system designing even though mechanical/software designs were frozen. (6 months prior to opening airport, still moving equipment around, changing controls and software design! * Energy issues – City unable to supply â€Å"clean† electricity to the baggage system. Motors and circuitry used in system extremely sensitive to power surges and fluctuations. Filters were purchased to correct the problem and a City Worker cancelled a contract without realising that the filters were part of it. Filters arrived several months later in March 1994. 1. Construction already begun on terminal and concourses with substantial changes needed on construction to accommodate expanded system. We wrote a letter to city (Jan, 29, 1995) to request prompt action advising of inability to complete project under these conditions with no response or support. Part 4: Environmental Root cause Analysis Qualitative Analysis: BAE is a highly qualified with a revered reputation, experienced in projects across the US, Europe and Australia in the development, design, manufacture and install and support of every project it undertook from start to finish. We established a strong position in the US accounting for about 90% of U. S. baggage sorting equipment sales. Since 1972 – 1994 we had successfully designed, manufactured and installed nearly 70 automated baggage handling systems worth almost $50M at major airports in the US, New York, Dallas-Fort Worth, Chicago, San Francisco, Miami, Newark and Pittsburgh. We also consulted in the installation of a $550M terminal for the New Seoul Metropolitan Airport in South Korea. Given our successful history and past accomplishments, it is without a doubt that our management capabilities and expertise in handling various types of projects, with various types of people and countries, proves our commitment, capabilities and expertise in handling complex variables and situations for every project we undertake. Knowing the strategic importance and complexity of this particular project, we had agreed to take on the project only upon acceptance of certain conditions which was accepted by the City. Many of these conditions were not honored throughout the process causing unnecessary delays, additional costs, strained relationships both with the City and DIA management and hurt our reputation Project Management Lack of communication, ownership and project management both at DIA the City of Denver was the source of this pivotal problem. Since the contract was awarded by the City, they were responsible to enforce the compliance of the agreed upon conditions and communicate and enforce these conditions to DIA and their employees. In turn DIA did not have a specific Project manager to oversee the entire project as a whole and to act as a liaison between us, the City and their Carriers. Instead we were forced to deal with their respective â€Å"Area† managers one on one which was counterproductive, time consuming and ineffective. We also had to deal with direct changes from the Carriers themselves which further haulted our project. We were setup for failure given the lack of direction and control at DIA’s side and the City’s dogmatic approach to making decisions. For a project of this magnitude, there was no consideration made to employ either Key Managers or Project Manager to oversee, manage and liaise between the three concourse areas. This created some major gaps and no one was there to keep the pulse on the project itself. This was not implemented thus creating a gap in communication, a silo-type attitude amongst decision makers creating no support-system for the major role we played in this implementation. It was apparent that roles between the City, PMT at DIA and Consultants were not defined or controlled. Everyone was working in silos. People (Unqualified): In addition to the management issues, our Assigned Area 4 Managers, lacked the experience in airport construction and baggage system technologies, therefore could not understand the importance and properly support our needs nonetheless handle our requests in a prompt manor. In order to keep things moving along, we needed a DIA counterpart who would be able to produce engineering alternatives and have the autonomy to make decisions. The death of DIA’s Chief Airport Engineer, Walter Slinger created significant impact to our operations as he was decisive and addressed problems promptly. This was an important critical role required for the success of this project. His successor, Gail Edmond lacked the experience, know-how, decision making capabilities and autonomy that further haulted the process. Build-Design The Political pressure to fast-track this project lead to a Build-Design approach to this airport construction which cau sed many unknown risks and design issues that we had to deal with upon commencement. We were unaware of the construction scope and details to be able to fully understand the scope of the project before undertaking. This also lead to a reactive vs. proactive planning. This posed many unknown risks, changes and modifications to our plans along the way. The instability of this process created many points of change, delays and cost additions and we did our best to manage what was in our control. The point is that many of these delays were NOT within our control, nor did we have any support from the city to enforce DIA’s construction project to meet our agreed upon milestones to meet our own obligations. Economic Political Considerations The economy in mid 1980’s was plummeting with a 37% job loss average across Stapeltons Employment Industries. The Pena administration aggressively promoted the airport relocation, marketing the new airport as a technologically advanced, state-of-the – art structure to draw businesses, import federal capital and fund the creation of new jobs with bonded debts to overcome the short-term decline in the economy. It was to become a grand project that would be the main showcase for the Public Works Department. The relationship between BAE and the City was strained primarily because their focus was on airport project speed and bond re-payment and not on the project itself. They were motivated by their own public perception in the political realm. Their â€Å"hands-off† approach was detrimental in the success of this project and served more as a crutch and hinderance. When it came to asking for support it felt like they were working against us and not with us. Their strength was not in project management but they had the power to make key decisions which influenced and affected our overall success. The added pressure of paying the DBO by Jan 1, 1994 forced quick management decisions, early construction without a full scope analysis and risk mitigation not just with BAE but also with DIA. Forced the Build-Design approach which inherently greatly affected our ability to succeed given the lack of adherence to the agreed conditions. Success with United Airlines Once the contract was signed with United exclusively things went smoothly. The successful implementation of the baggage system with United highlighted what was lacking in dealing with DIA and City directly. The success highlighted and confirmed our ability to manage the project with a partner who understood the technical and project management needs. Part 5: Alternatives and/or Options: Alternative A Continue with the contract for installing the baggage handling system conditional upon the following restructuring requirements: Hiring of new qualified members at DIA. 1. DIA to hire a dedicated qualified Project Manager for the baggage handling system overall project with prior project management experience. One whom understands the key tasks, key players has a strong construction and technological background with project management skills to document, track, address and facilitate the communications between all DIA parties and that of BAE and City Administration. A clear definition of this person’s role, decision-making authority and sponsorship by Senior Management is critical. 2. DIA to hire a new Chief Airport Engineer with strong decision making and leadership skills with the autonomy to make decisions and propose Gail Edmond work under him/her as Chief Associate Engineer. . The new Project Manager’s goal is to gather all appropriate key stakeholders as proposed in Appendix 1 to conduct 3 main initial sessions with all key stakeholders (*see Appendix 1) to: I. Conduct a full risk assessment whereby identifying all risks, prioritise them, have an action plan to mitigate some of them, formulate contingency plans and assign responsible persons to manage the risks. II. Est ablish a Project Objective Statement, and Create a new project master plan, III. Team member establishment: Establish who key players are, their strengths, weaknesses, outlining roles and create a RACI matrix *See Appendix 2 for DIA, BAE, and City for roles and responsibilities for all planning and execution tasks of the project 4. City to hire or appoint a qualified Liaison with construction, engineering and or technical background experience who is solely assigned to this project with no other conflicting priorities with the autonomy to make decisions. This person’s role is to ensure that legislation doesn’t interfere or adversely cause timing risks to the project plan and expedite issues/roadblocks when they arise between DIA, BAE and the city. This proposal is supported by the fact that our design has proven it will work given the proper management setup framework as demonstrated by our successful implemention of the new baggage handling system with United Airlines. The current lack of the â€Å"right† project team members will be addressed by this new proposed structure. With the right sponsorship and roject management setup, this will encourage all to be on the same page and working towards the same goal. The added benefit of this is that timelines will be clear and visible and will hold those truly responsible for delays in their respective areas and help them and all team members understand the domino affect and impact it can have on the entire project as a whole. This will discourage the current work â⠂¬Å"silo† mentality and will promote an integrated meeting of the minds where risks and opportunities for improvement can be quickly identified, communicated and cascaded to the right people. This will also ensure that the right decision makers are present to make judgement calls on plan changes as they come along and not further hold up the process. This should put the plan back on target and give us a working plan going forward where all key players are informed, consulted and responsible for outcomes. The cost of setting up this new structure is by far a more economical way to get the task done without the added financial burden of creating a new â€Å"backup† system. Pros: * Renewed Focus on project with key roles and responsibilities outlined set’s clear goals, accountability and ownership. Address risks and enable the team to mitigate them * Clear direction and leadership by all stakeholders and their inputs * Expedite critical milestones and ensure we are on the path * Maintain reputation * No further $ investment for backup system Cons: * New hires required Alternative B Cancel the contract with Denver. Discontinue involvement in any further developm ent unless directly contracted by Carriers. Pros: * Focus on core business Cons * Damaged reputation for BAE * Litigation costs * $12k / day penalty Law suit risk – Pay back of $50M Baggage system backup plan Part 6: Recommendations and Implementation Recommendation: Based on my analysis the strategic impact of cancelling the project at this point would further create a bad reputation for BAE, especially considering the current damage already made to BAE by the unsolicited test plan executed by the mayor and the bad press that has already caused. The decision to continue with the project conditional upon a new team structure is a reasonable request given our past successful history and project management expertise. I feel that we have a strong argument for our position backed up by facts that are undeniable and can thus prove our innocence and lack of responsibility for the delay. This will prove to be a sensitive topic as it appears that it is easier to blame us for the delays. With a mutual understanding about the current situation, I believe it will be easier to convince the Mayor and Aviation director the value the new structure would bring and that a new backup system is not the answer and would cause unnecessary further financial burden, hurt relationships and bad press which no one wants. The success of BAE in installing United’s baggage system will be highlighted as an example of the right team structure and how we can achieve the same if we are united in the goal and agree to this plan. Recommendations Implementation Plan: Some of the short term elements of the recommendations are already completed or in progress such as building our case / position with regards to reasons for the delays. The following outlines the steps required to make this happen. Task| Responsible| Timing| Build case. Engage with Project Manager BAE to identify original plan milestones and detailed reasons for incomplete tasks. Prepare PPT presentation with key dataWrite back to City Mayor, acknowledging letter and request for a formal meeting to present response with a set date. | BAE Project MgrBAE AdminGene DiFonso| 3 days2 days1 day| Invite to meet with DIA Director of Aviation to present challenges/issues faced throughout the project and the delay outcome. Explain the current position we are in with regards to the city’s demands with the objective to gain support for the new proposed structure. Gene DiFonso| 1 day fixed| Invite DIA Director of Aviation City Mayor to formal meeting to present project delay reasons/issues recommendation for continuation of project with recommended structure| Gene DiFonso| 1 day (fixed)| Prepare Present the proposed structure and Project Team Method Matrix and explain it’s criticality and past effectiveness in other successful projects and why this is necessary even if a backup baggage system is implemented | Gene DiFonso| 3 days| Assume DIA’s buy – in and that it takes DIA 1 month to hire Project Manager and restructure the Project Management Team| Director of Aviation| 30 days| Work with new Project Management Team to identify construction risks that interfere with our design/implementation plans come up with alternate solutions. | Gene DiFonso PMT| 1 week| Develop new Strategy with new key Milestones | Gene DiFonso, | 2 weeks| Obtain Buy-In Committment from key stakeholders| City Mayor, Director of Aviation| 1 day (fixed| | Total| 9 weeks| 1st Meeting with new Project Team Members| | | | | | Any critical changes to the original plans will be reported promptly to DIA Project Manager and voiced in Team Meetings. Any critical plan changes will equire Sponsor sign offs (acknowledgment and approval of change to plan for reasons outside BAE’s control) before BAE continues with implementation. Part 7: Monitor and Control: * Weekly internal meetings with BAE’s project management team will be conducted to keep pulse on project timelines and areas of risk. * Attend weekly Project Meeting Team meetings to identify risks, action items, schedule changes and react to them. * Submit bi-weekly reports on status to key sponsors stakeholders. * Hold monthly review meetings with Sponsors Part 8: Conclusion: In conclusion, the current difficulties we are experiencing with DIA and City Administration has served as a costly example of lack of poor management structure for a project of this magnitude. Our past successes can speak for itself in approaching DIA and City Mayor for their support to the new proposal based on our experience. If this new approach is accepted, this will save BAE millions of dollars in lawsuits and cost of new baggage system as charged by the City Mayor. The optics of getting back on track, having a strong management team and continuing with the original plan will serve in favour of all, the Mayor, our shareholders, as well as redeem our own reputation as leaders in the market. We will then be positioned without a tarnished brand and enjoy further growth opportunities. Part 9: References, Exhibits and Appendixes Appendix 1 – New Project Management Team Structure Appendix 2 – RACI Matrix example (for initial phase) of new structure How to cite Bae Assignment, Papers

Develop An Understanding About The Supply Chain Strategy - Sample

Question: Discuss about the Develop An Understanding About The Supply Chain Strategy. Answer: Introduction The following report is based on procurement evaluation, which includes the strategic issues faced by the organizations in the supply chain. The organizations often make changes in the supply chain activities to avoid the unnecessary obstacles in the operation. However, as the business environment has been dynamic in the recent time, the organizations might face different supply chain issues in the operation. Thereby, to learn and analyze those issues, the report considers the organization Toyota, Australia. Due to the unfavorable market environment in the automotive sector in Australia, Toyota is facing some strategic supply chain issues in the operation. The automotive manufacturing sector remains as an extremely competitive one and, many firms are focusing on their supply chain for the sources of competitive advantages. Thereby, this paper effectively presented the findings of an exploratory research that investigated the contemporary issues associated with the strategic supply ch ain in Australia. The report discusses those issues and applies some particular theories and models. Based on the evaluation of issues and theories, suitable recommendations have been provided that would help the firm to deal with the challenges. Evaluation of the Supply Strategy It has been identified that the large car manufacturing company Toyota in Australia is on the verge of leaving the industry and soon, they are going to close their door. Even though, the organization has made it clear that government subsidy is not the issue but the dynamic market environment, which creates big challenges in the supply chain network. The supplys demand in the car-manufacturing sector of Australia is high, the suppliers know the market trends and likewise, other existing car manufacturing organizations have become accustomed with the market. However, Barney (2012) mentioned that Japanese technology based firm Toyota did not understand the market and the economic relation with trade in Australia. A put forward by Christopher and Holweg (2011), Toyota Australia with the help of partner Sixtree- in the recent time developed a dashboard that surfaces the data regarding the dynamic status of car transition through companys supply chain. Even though, the firm seeks to devel op a wide supply chain network in Australia car manufacturing sector to meet the growing demands of the customers, several attempts made by the firm failed to implement the initiative. According to Roh, Hong and Min (2014), the organization wants to run the operation in Australia, it needs to work with the suppliers, stakeholders involved and the government to determine the possible steps. The major issue, which has been identified is that Australias car manufacturing sector teeters on the overall collapse in the wake of Holdens ultimate decision to stop producing vehicles. Thus, Toyota in Australia refuses to speculate on its future in Australia in the wake of Holdens decision. As the leading supplier decided to call off the operation, Toyota is in the need of making relationship with the suppliers. Holden is the second biggest vehicle manufacturer in the nation, which produce 75000 to 80,000 vehicles. Nevertheless, mentioned that the car manufacturing organization Toyota could be able to sustain its operation with the combination of imported as well as domestic parts (Mullan et al. 2011). Hence, Shaheen and Cohen (2013) mentioned that if a single component manufacturer supplies the firm can also be a useful option for Toyota. Nonetheless, if Toyota relies on such single component supplier, another supplier with the same volume could be difficult to continue and this probably remains as the major concern for Toyotas supply chain network in Australia. In addition to this, it is also observed that Toyota finds the supplier challenge due to the presence of other car manufacturing organizations in the sector. This means the organization faced the deficiency of suppliers and they failed to build a long-term relationship. The existing suppliers already have relationship with other car-manufacturing firms. Conversely, Ghadimi et al. (2012) mentioned that as Toyota has large market share in the Asian nations and thereby, a large proportion of the profits come from the Asian markets. Due to this factor, the firm did not pay the required attention to the competitive Australian market. The firm would have fulfilled the suppliers needs if the demands of products were observed to be high in the Australia market. In addition to this, even though Holden was the one major supplier of Toyota, the firm did not make or come into any long-term relationship with Holden. Moreover, the organization also did not pay required attention to other suppliers. Bennett and Klug (2012) mentioned that the reluctant nature of Toyota in Australian market observed because the firm did not experience high demands in the market. In this context, Dodgson et al. (2011) also mentioned that dynamic market environment and presence of lar ge competitors like Ford, Mitsubishi are the reason of poor market share of Toyota. Therefore, it can be mentioned that poor demands of vehicles created an indirect impact on the supply chain activities of Toyota. Application of theory and concepts The automotive sector in Australia has undergone a transformational evolution over the last two decades. In this context, Timmer et al. (2015) commented that conventional technique for developing an automotive supply chain requires a wholly, integrated as well as the lean materials. Historically, it is observed that supply chain operated under a Push model and hence, in this model the marketing as well as sales covers an appropriate speculation at the market demand and then feed the forecasts into the design to make model production volume. In this context, Farahani et al. (2014) commented that due to the boom of internet, the data has become much more accessible to both consumers and the manufacturers. The following are the supply chain theories and models that can be applied to Toyotas contexts. Lean supply chain The term lean refers to the series of activities or solution to decrease waste, as well as minimize the non-value added operation. In this context, Olugu and Wong (2012) commented that leanness referred to the action of developing a value stream to reduce all waste with the inclusion of time and ensure a level of schedule. However, in this context, Tian, Govindan and Zhu (2014) mentioned that lean is a systematic approach to identify and eliminate waste. It is also observed that lean is a supply chain strategy that manufactures just what and how much is required. The major objective of such supply could be realized by embedding the basic contents of data communication on stocks, delivery plans and fluctuation in the frame of Just in Time. The purpose of such integration is to ensure the commitment to quality and cost, gain least distortion of approaches and usual delivery of small amount of orders. It can be added that lean based philosophy is in general applied when the marketers could predict the demands of market. In addition, such philosophy is applicable when the decisions of buyers usually depend on the lowest price. In the case of Toyota, it is observed that even though the organization faced the crisis of suppliers in the market, it maintained thewaste management through the lean supply chain practices. This means the suppliers who provide services to Toyota, have to follow the principles of Toyotas supply chain practices. Toyota asks its suppliers to reuse the wasted materials in the next part of the entire shield. So that the excessive use of resource can be controlled. Leagile supply chain It has been observed that several studies have demonstrated that lean as well as agility supply chain practices could be integrated in a variety of ways and this happens due to the general characteristics embedded with each theory. These characteristics can be linked to evolve a new manufacturing paradigm with the name of leaglie. Hence, Naim and Gosling (2011) defined legality as the combination of lean and agile paradigm within the whole supply chain practice by positioning and documenting point to perfectly meet the need for responding to a volatile demand. Kraljic Portfolio Purchasing Model Kraljic Portfolio model helps remains useful for the purchasers, as it helps the purchasers to minimize the supply security and decrease the cost by making the most of their purchasing power. Thus, in implementing so, the procurement moves from being a transactional activity to a strategic activity; this is because purchasing should be supply chain management. The application of the model has been discussed in the following. Purchase Classification While applying this model, the organization needs to classify all of the commodities, products, components as well as services that the firm is supposed to purchase in accordance to the supply risk and potential profit impact. Supply risk could remain high when the item is a scarce raw material, at the time when the availability can be affected by instability or natural disaster (Padhi, Wagner and Aggarwal 2012). Thereby, hence, delivery logistic are difficult as well as it could easily be disrupted. Likewise, the profit impact could also remain high when the items increase the significant value to firms output. This occurs as it makes up a high proportion of the output and it has direct impact on the quality. For example, the vehicles used by a high end-clothe manufacturer. Strategic items- This usually include (high profit impact and high supply risk) These items usually carry the most attention from the purchasing managers. Hence, the aspects in the form of options involve the long-term supply chain relationship (Ferreira, Arantes and Kharlamov 2015). The supply chain executives and managers have the opportunity to analyze as well as manage the risks on a regular basis for the purpose of contingencies. Leverage items- Hence, the managers or the organization should use the full purchasing power by substituting the products and by placing high volume orders. Bottleneck items (Limited profit impact and increasing supply risk) In this phase, the firm could use the approach of over-ordering when the items are available and the firm needs to look for the ways to control the vendors. However, in the context of Toyota, this approach could be unreliable because the availability of raw materials is restricted. Thus, the firm finds it difficult to deal with growing demands of vehicles and dynamic market environment. No critical-items- (Limited profit impact and low supply risk)- The approaches for buying such items could include use of standardized product items, optimization and supervision of inventory levels (Padhi, Wagner and Aggarwal 2012). In a competitive market like Australia, it is difficult for Toyota to stock the standardized products when the demand of vehicle is low due to the changing market needs. Moreover, the firm might not run the operation where the profit is limited but the cost of operation is high due to the increased cost of raw materials. Market Analysis Hence, the firm needs to investigate how stable and demanding the suppliers and the purchasing power that the firm has as their customers. In Australian automobile sector, Toyota observes a high supplier power, as suppliers are limited in the market, but the market has many players. For example, the major supplier Holden has several key customers like Ford, Mitsubishi. Thereby, Toyota is left with limited options when it comes to suppliers. Action plan Hence, the firm needs to develop an implementation plan for each of the products as well as materials on a regular basis. This approach is further divided into three different steps discussed below. Exploit- Here, the organization needs to make the most of their buying power to acquire good price as well as long-term contracts from few suppliers; thereby, they could reduce the supply risks engaged in these items (Knight, Tu and Preston 2014). Balance-Hence, the organization needs to maintain the balance status between the exploitation approach as well as the diversification approach. However, Toyota here finds the challenge of diversification; it cannot apply diversification because the organization is largely dependent on its core business. Diversity- In order to minimize the supply risk by acquiring alternative suppliers, the firm should depend on its core suppliers (Drake, Myung Lee and Hussain 2013). Hence, the firm could maximize its buying power by fulfilling by a single supply power. Nonetheless, in Toyotas case, the major supplier Holden stopped producing the items. Toyota is left with the options of relying on the small and medium size suppliers. It is observed that the physical flow of supply chain might include the information and the process associated with the status and the shipping of physical items in the inventory. As put forward by Estampe et al. (2013), in the supply chain practice of physical flow items, the components manufactured by the suppliers and shifted through inbound logistic to accumulate the plant. Carter, Rogers and Choi (2015) specified that at the assembly plant, a vehicle usually goes through the body shop, shift to the paint shop and then finally to the assembly. Eventually, it goes through the inspection phase. After all these procedures, once these vehicles have been produced, the product is transported to the dealership through outbound logistics. Similarly, in the context of Toyota, the physical flow of supply chain consists of the suppliers, inbound logistics, outbound logistics, production as well as the dealers. Suppliers As put forward by Wong, Boon and Wong (2011), the significant precondition to build supply chain practice requires a stiff integration of production schedule of suppliers, which amalgamated to the production schedule of customers. Hence, under this model, the suppliers usually deliver several parts and components that might fit into the vehicles and these elements generally obtained through outbound logistic network, where the organization has many tier-one suppliers. In Australia, Toyota has limited number of suppliers and they are located in remote geographical areas; thus, the time for parts required to arrive from each supplier could vary largely. Moreover, in Toyotas operation, it is observed that regional suppliers could be one or two days away from the assembly plant, while the suppliers located in the overseas area could require several weeks to shift the components to the factory or assembly plant. Olugu and Wong (2012) mentioned that such process could result in suppliers as well as customers acquiring inventories to keep a balance between the variability and the lead-time in the production timeline. Toyota, to ensure the flexibility and deal with the challenge of lead-time, implements the ideas such as supplier parks and modularization to minimize the lead-time needed to manage the possible deviation between the received order as well as plant production. The entire process of assembling the vehicles depends on delivery of components, w hich should be on time. Toyota follows the practice of Just in Time for the suppliers to distribute the ordered components of customers. Inbound and outbound logistics Carter, Rogers and Choi (2015) described logistic in a way where a connection between the supply chain and its sub-system remains visible. While focusing on Toyotas supply chain system, it has been identified that two general types of logistic functions in new vehicle supply chain are discovered-inbound and outbound logistics. In outbound logistic, car distribution of Toyota from the assembly plant of the vehicle to dealers is done appropriately, as such practice effectively maintains the awareness of the whole vehicle supply chain system by having a control over the lead-time from the plant to the customers. In this context, lugu and Wong (2012) commented quantity between the lead-time of production and the lead-time of distribution remains little, hence, customers only concern is the arrival of merchandise. Recommendation- Strategic Plan The above-mentioned discussion helps to conclude that the organization Toyota has some significant issues in the supply chain network. To resolve or deal with such issues, the organization should implement the following strategies. Develop alliance with the key suppliers When a business is largely dependent on the suppliers, it should closely work with the suppliers and this is known as supplier relationship management. Hence, Toyota needs to use the two-way communication, which requires both buyers as well as suppliers to collaboratively manage the relationship. To form such relationship, the firm needs to provide techniques to make sure that the relationship remains healthy and vibrant. This means, the purchaser and suppliers both need to ensure that their needs are fulfilled. The organization should ensure that their suppliers demands are satisfied and they are happy working with their customers. Both the parties in such relationship should create a platform for the problem resolution, where all issues and problems can be resolved. To do this, the firm could enhance continuous enhancement goals with the objective of achieving value for both parties. Engage in collaborative strategic sourcing- This strategic sourcing remains as the cornerstone of successful supply chain management. However, it is identified that but a collaborative strategic sourcing initiative could produce better outcome. Instead of considering strategic sourcing as just for the purchasing department, best in-class should try to have internal customers who are actively involved in the decision making process. In order to implement such initiative, the organizations both the supplier and purchasers need to solicit feedbacks as well as the information about their objectives and the strategies. Appropriately align and staff the supply chain organizations- It often becomes difficult to manage the supply chain function in a manner, which could increase its effectiveness and bring equal benefits to the firm. The organization could adopt a hybrid approach that combines a centralized strategy to acquire consensus with the centralized implementation to enhance service. Likewise, another emerging trend that the firm could include the placement of contract management, forecasting, demand planning and the supply chain leader. However, whatever structure, the organization adopts, appropriately staffing the supply chain network remains vital to success. Furthermore, it can also be added that enhancing staff members supply chain management skills and knowledge always remains as the priority but the senior leaders should focus on the strategy and they should be less concerned regarding the transactional capability. In addition, as the supply chain leaders tend to move up to join their organizations management team; thereby, they might have additio nal characteristics. Nevertheless, the firm could hire supply chain managers who acquire strong communication as well as relationship management skills. Hence, the leaders must think strategically and focus on the value creation. Utilization of technology In the advancement of technology, the organizations should take advantages of technology to make the supply chain practice more efficient. The organization needs to structure the workflow and implement the process with the help of selected technology. However, before implementing such practice, they need to review the processes or the practices that require enhancement. Based on the review, they need to select the technology that perfectly satisfies the processing needs. Australian market is technologically developed and thereby, Toyota might not find any challenges in terms of the technology. Particularly, the firm could implement the technology called enterprise resource planning with the information and as the solution, the firm might not find the difficulty in retrieving the type of data that they require for making the strategy effective. In addition to this, in adopting technology in the supply chain process, the supply chain managers should play the major role in finding ways to implement technology to manufacture beneficial information to perform different work arounds. The managers needs to recognize the significance of an efficient purchase to pay process and utilize the strategies to acquire benefits. Develop a governing supply chain council The major purpose of a governing council is to provide direction as well as help to align the supply chain strategy with organizations overall strategy. In the council, the membership needs to include the leader of the supply chain firm and the corporate executive, the production unit manager and other leaders. The council needs to hold scheduled meeting on a daily basis. On the other side, it is also observed that supply chain firm has often been seen struggling for the recognition as their objectives and strategies differ from their firms own objectives and strategies. Thus, a governing council could prevent that from occurring by delivering constant, consistent validation that supplies chain strategy, which could directly correlate with the corporate strategy. Moreover, the council could help to withdraw the barriers to achievement that remains within the organization. Most of the organizations face such challenging or difficult situation that does not accept the value that a supp ly chain should provide. Thereby, by identifying these challenges, the members of the council make sure that supply chain organization provided with the scope to implements its potential. References Barney, J.B., 2012. Purchasing, supply chain management and sustained competitive advantage: The relevance of resource?based theory.Journal of supply chain management,48(2), pp.3-6. Bennett, D. and Klug, F., 2012. Logistics supplier integration in the automotive industry.International Journal of Operations Production Management,32(11), pp.1281-1305. 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Martnez-Jurado, P.J. and Moyano-Fuentes, J., 2014. Lean management, supply chain management and sustainability: a literature review.Journal of Cleaner Production,85, pp.134-150. Mullan, J., Harries, D., Brunl, T. and Whitely, S., 2011. Modelling the impacts of electric vehicle recharging on the Western Australian electricity supply system.Energy policy,39(7), pp.4349-4359. Naim, M.M. and Gosling, J., 2011. On leanness, agility and leagile supply chains.International Journal of Production Economics,131(1), pp.342-354. New Cars Toyota Australia: Prices, Service Centres, Dealers, Test Drives. (2017).New Cars Toyota Australia: Prices, Service Centres, Dealers, Test Drives. [online] Available at: https://www.toyota.com.au/home [Accessed 25 Oct. 2017]. Olugu, E.U. and Wong, K.Y., 2012. An expert fuzzy rule-based system for closed-loop supply chain performance assessment in the automotive industry.Expert Systems with Applications,39(1), pp.375-384. Padhi, S.S., Wagner, S.M. and Aggarwal, V., 2012. Positioning of commodities using the Kraljic Portfolio Matrix.Journal of Purchasing and Supply Management,18(1), pp.1-8. Roh, J., Hong, P. and Min, H., 2014. Implementation of a responsive supply chain strategy in global complexity: The case of manufacturing firms.International Journal of Production Economics,147, pp.198-210. Sarkis, J., 2012. A boundaries and flows perspective of green supply chain management.Supply Chain Management: An International Journal,17(2), pp.202-216. Shaheen, S.A. and Cohen, A.P., 2013. Carsharing and personal vehicle services: worldwide market developments and emerging trends.International Journal of Sustainable Transportation,7(1), pp.5-34. Tian, Y., Govindan, K. and Zhu, Q., 2014. A system dynamics model based on evolutionary game theory for green supply chain management diffusion among Chinese manufacturers.Journal of Cleaner Production,80, pp.96-105. Timmer, M.P., Dietzenbacher, E., Los, B., Stehrer, R. and Vries, G.J., 2015. An illustrated user guide to the world inputoutput database: the case of global automotive production.Review of International Economics,23(3), pp.575-605. Wilhelm, M.M., 2011. Managing coopetition through horizontal supply chain relations: Linking dyadic and network levels of analysis.Journal of Operations Management,29(7), pp.663-676. Wong, C.Y., Boon-Itt, S. and Wong, C.W., 2011. The contingency effects of environmental uncertainty on the relationship between supply chain integration and operational performance. Journal of Operations management, 29(6), pp.604-615. Xia, Y. and Li-Ping Tang, T., 2011. Sustainability in supply chain management: suggestions for the auto industry.Management Decision,49(4), pp.495-512.

William Sheldon

Pharmaceutical Industry in India Essays

Pharmaceutical Industry in India Essays Pharmaceutical Industry in India Essay Pharmaceutical Industry in India Essay Industry overview Pharmaceutical sector is an important industry of any modern day economic power. Pharmaceutical industry in India has a very humble past. After independence, development of pharmaceutical industry was one of the top agenda of government along with steel and manufacturing industry. The market was protected against competition for a long period of time by giving incentives to small firms, license-raj etc. Today the Indian pharmaceutical industry is the front-runner science-based industries in the country. Today the industry boasts of wide ranging capabilities in the complex field of drug manufacture and technology. The sector is pegged to be worth US$ 7. 3 billion. The annual growth rate is estimated to be around 13%. Reports suggest that the domestic retail market would be worth around US$ 12 billion by 2012. Indian pharmaceutical industry ranks 4th in terms of volume globally and 13th in terms of value. It has 8% share in global sales 20%-24% share in production of generic drugs. The domestic players satisfy almost all of the country’s demand for formulations and bulk drugs. Indian firms aren’t limited to domestic market; they are now competing head on with multi national players in international arena. For many firms, exports constitute 60%-70% of the total revenue earned. Reasons for this strong growth are low cost of manufacturing, low cost of RD, innovative scientific manpower etc. The total pharmaceutical exports in 2007-08 clocked US$ 6. 68 billion against US$ 5. 73 billion in 2006-07 recording a growth rate of 16 per cent. India is poised to be one of the fastest growing pharmaceutical markets in the world. This has led to entry of many major companies in the Indian market and a huge amount of FDI inflow. Evolution of the Indian Pharmaceutical Industry The Indian regulatory system made several arrangements to protect the domestic pharmaceutical industry from foreign competition in its nascent phase. One of them was recognition of only process patents. This built a sound and strong base for strong and competitive domestic market but deterred entry of foreign players. The life of Indian pharmaceutical industry can be broadly divided into two phases, namely Pre-Patent regime and Post-Patent regime respectively. Lets take a look at both of them in detail: Pre-Patent Regime: This period can be segmented into various time periods for better understanding: 1947-1970 During this period country was trying to stand on its feet after gaining independence. The pharmaceutical industry had to be built from scratch. Though several domestic players had sprung up in market but their impact on market was limited. The reason was their inability to compete with MNC players who had better access to resources, better technical know how and access to larger amount of funds. These foreign players imported formulations and sold them in India. They were neither contributing to pharmaceutical industries nor to the manufacturing industries in India. People had low spending and restricted access to healthcare facilities because of low levels of income. The government had realized that dependence on imported drugs had to be reduced so that essential drugs could be made available to public at cheap prices. For this country needed to build indigenous drug production capabilities. To fulfill this objective Hindustan Antibiotics Limited (HAL) and Indian Drugs Pharmaceutical Limited (IDPL) were setup in 1954 and 1961 respectively. These companies soon established themselves as major producers of critical drugs, which, were being imported at that time. 1970-1979 The MNCs continued to dominate the domestic market in spite of steps taken by government. Government introduced two legislations in 1970 to accelerate the process of self-reliance and indigenization. These were Indian Patent Act and Drug Price Control Order (DPCO). These two regulations provided the launch pad for the Indian pharmaceutical industry to take off into a new growth spiral. Indian Patent Act: The act granted patents only for methods and processes used to manufacture the substance. This allowed the domestic players to reverse engineer the drugs present in market and find its constituents. They started making the product using the same bulk drug by using a modified production process. Drug Price Control Order: Government regulated prices of 354 essential bulk drugs and formulations to ensure wide spread availability of drugs at a reasonable price. These two legislations changed the industry structure and growth pattern. Several small-scale ndustries (SSI) came into existence in formulation business. They had significant advantage as their products were out of purview of price control. Low entry barriers, abundance of bulk drugs and dispersed market acted as additional catalysts. All these factors had a significant impact on the position of MNCs in India. These regulations introduced the concept of price control did not recognize product patents. Therefor e the MNCs had no incentive of introducing new drugs in the market. Their overall share in formulations started to decline as time progressed. 1979-1987 Government in 1979 amended DPCO. Number of drugs under purview of DPCO was bought down from 354 to 163. Government also increased the permissible mark-up on drugs from 40%-60% to 75%-100%. DPCO also regulated the production by fixing ratio between formulation and key bulk drugs. This ensured continuous and uninterrupted supply of key bulk drugs. Investments made by government in past had started bearing fruit. IDPL and HAL provided technical assistance to smaller players in establishing their foothold. Hence even smaller players started to supply critical drugs to market. Indian firms started to invest in RD because of availability of skilled researchers in country. This resulted in launch of new drugs through process re-engineering. Government funded Central Drug Research Institute (CDRI) and Council of Scientific and Industrial Research (CSIR) made major contribution to the research base. Indian firms had advantage of low cost structure and very good reverse engineering technical skills. After they had established themselves in domestic market they turned their attention towards export. They took measures to utilize their advantage in global arena and were quite successful. There was no improvement in conditions of MNC’s. High tariffs caused the prices of their product to go up. Price control measures taken by government directed them to sell at cheaper price. Therefore they focused on specific sectors where they still had a stronghold. They were reluctant to launch new products in country because of lack of proper patent protection. This resulted in overall decline of their market share. 1987-1994 This was a consolidation period of the industry. The entire industry registered a double-digit growth rate through the period. This high growth rate was attributed to rise in per-capita income of people and introduction of new drugs at cheap price. The increase wasn’t limited to domestic market. While bulk drug production grew at CAGR of 16%, bulk drug export grew at CAGR of 40%. By 1994 exports comprised 50% of total bulk drug production. To meet the ever-increasing demand, companies had to invest heavily in increasing their capacities. High growth rate also attracted new players to the market. Competition in market increased manifold as the number of players in the market doubled over this period. Most important development of this period was liberalization program initiated by the government. The tariff barriers were lowered which leveled the playing field for MNCs vis-a-vis domestic players. This also increased foreign investment in domestic pharmaceutical industry. The liberalization policy also benefited domestic players who made efforts to increase their global presence due to lower tariff and non-tariff barriers. 1995-2001 The major development of this phase was government’s commitment to recognize product patent regime after 2005. This increased the expectation of MNCs. Most of them increased their equity stakes in Indian operations. MNCs also realized that they could convert India into their manufacturing base. India had quality manufacturing facilities at cheap costs. Domestic firms too had saturated Indian market. They were focusing on global markets more seriously now. They entered into alliances with MNCs, entered into JV’s in overseas market, set up world-class manufacturing facilities and strengthened their brands to strengthen their position. The small players finally came of age and gave serious competition to their bigger counterparts. Even though market grew at 15% intense competition from smaller players pushed the bigger players towards generic formulations. Bulk drugs had lower margins because of intense competition. To overcome this most players forward-integrated into formulation manufacturing or increased their export to non-regulated markets where margins were higher. 2001-2004 During this period domestic players increased their focus on market of generic drugs. They invested in RD and upgraded their manufacturing facilities to comply with GMP norms. During this period the domestic formulations market registered a decline, barring a few segments. MNCs were strengthening their interest in domestic market as product patent regime was to be implemented in 2005. Post-Patent Regime 2005-2006 Government passed an ordinance in 2005 implementing the product-patent regime. This move was aimed at bringing India at par with global pharmaceutical market. Other major developments during this period were implementation of VAT, shift in excise duty levy to MRP based levy and implementation of good manufacturing processes. During this period Indian players established themselves in global market with their innovatively engineered generic drugs API. 2006-2007 The new pharmaceutical policy has been center of attraction. Government wanted to bring essential drugs on which the manufacturers made fat profits under the purview of DPCO. The proposed pharmaceutical policy was aimed at bringing 354 essential drugs under purview of DPCO so that they are within reach of common man. The policy has provision of limiting MAPE to 150% to put a cap on profits earned by pharmaceutical firms. The duties on API were reduced to encourage manufacturing. Government has also set up NPPA to regulate pricing of drugs in India. Companies will have to sell their drugs at price decided by NPPA. Regulatory Environments in various parts of the world Europe The European Medicines Agency (EMEA) is the apex body, which governs medicine industry in Europe. Scientific opinions of the agency are prepared by committees i. e. the committee for medicinal products for human use (CHMP), the committee for medicinal products for veterinary use (CVMP), the committee for orphan medicinal products for rare diseases (COMP) and the new committee on herbal medicinal products (HMPC). EMEA performs the scientific evaluation of the quality, safety and efficacy of medicinal products in EU. EMEA also coordinates the resources for scientific evaluation and assessment regarding products undergoing the mutual recognition procedure and the master files for plasma and vaccine antigens. EMEA also provides guidance for companies requesting scientific advice. It also provides scientific advice before the application of new marketing authorization for centralized and mutual recognition procedures. Scientific Advice Working Party (SAWP) does this task. In order to sell products in EU markets firm have to obtain a license. This license is granted by CHMP after it assesses the product in question. European Pharmacopoeia (Ph Eur) specifies the quality specifications for pharmaceutical preparations and their ingredients. Before submitting a Marketing Authorization Application (MAA) the firm is required to show the safety and efficacy of the medicinal product. To show this local clinical data should be generated for a new medicinal product. Thus it is necessary to conduct clinical trails before launching a product in EU. If the product has already proved safety and efficacy in some other country then a bridging clinical study is sufficient. The initial license granted to a firm has to be renewed after five years. The risk-benefit balance is revaluated. If the result of re-evaluation is positive then the firm is granted the license for unlimited period of time unless the competent authority decides otherwise. In cases of drugs that require long-term safety study, the license for unlimited period is usually granted after 2-3 re-evaluations. The EU pharmaceutical legislation is very extensive and robust. In order to ensure high quality and safe therapies it provides extensive rules and guidance on licensing procedures for medicinal products. USA Pharmaceutical sector in USA is regulated by the department of Health and Human Services. The apex regulatory body is US FDA, which enforces the basic drug and food legislations. When a drug manufacturer develops a new drug, first the drug is tested on animals. Then he obtains approval for human trials through Investigational New Drug (IND). The data collected through human clinical trials in IND and animal studies is used to file a New Drug Application (NDA). NDA is used to communicate to FDA about safety and effectiveness of the drug, high quality manufacturing standard for the drug and appropriate labeling of the drug. New drugs are developed under patent protection. This grants exclusive marketing rights to the developer of the drug. After expiry of the patent period, other firms can sell a copy of the drug. This copied version of drug is called as generic drug. In order to get approval from FDA to sell generic drugs, firms must file for an Abbreviated New Drug Application (ANDA). Generic drug sector became very lucrative because the manufacturers of generic drugs didn’t have to invest in costly animal studies and human clinical trials. Also the pharmacists were given the right to sell substitute generic drugs instead of a specific drug unless explicitly specified by the doctor. To get an FDA approval for their ANDA the firms had to ensure that their drugs contains the same amount of active ingredient as the original drug, it should be identical in dosage form, strength and administration method and manufactured under the same manufacturing standards as for the original drug. A Drug Master File (DMF) is submitted to FDA that contains almost all information related o the drug. Some information in the file may be of confidential nature. India In India both the central government and the state government share the responsibility of regulating the pharmaceutical industry. The Drug and Cosmetic Act and Drug and Cosmetic Rule are the legislations passed by the government in this regard. Through this legislation the government regulates import, manufacture, sale and distribution of drugs in India. The central government plays as the coordinator of policies like drug approval, clinical trials, setting up standards, controlling the quality of imported drugs etc where as the state governments see that the policies laid down by the central government are being implemented by the firms. The Drug Controller General of India (DCGI) co-ordinates all the activities involved. Pharmaceutical industry in India regulated on basis of price, patent quality. DPCO fixes an upper limit on critical formulations API. NPPA regulates the pricing of all the drugs manufactured or sold in India. A firm cannot price its drug on its own; it has to be approved by NPPA. NPPA has also put an upper limit of 150% on MAPE. If the firm invests heavily in RD then the limit is increased by 50%. In 1995 government had amended DPCO to limit the size of drugs under purview of DPCO to 74. After implementation of product patent regime government is mulling over bringing the number of drugs under DPCO to around 200. The Drug Cosmetic act specifies the quality standards to be met for any drugs that is manufactured, sold or distributed in India. Manufactures have to follow GMP in their manufacturing plants. FDI up to 74% is allowed on the automatic route in the case of bulk drugs, their intermediate Pharmaceuticals and formulations (except those produced by the use of recombinant DNA technology). The Government considers FDI above 74% for manufacture of bulk drugs on a case-by-case basis. It’s allowed only for manufacture of bulk drugs from basic stages and their intermediates. It also extends to bulk drugs produced by the use of recombinant DNA technology and the specific cell/tissue targeted formulations if it includes manufacturing from basic stage. Government had liberalization plans of increasing the FDI cap to 100% and making the process of investing more easily and investor friendly. The plans were not implemented because of political pressure exerted by the Left Parties on the government. Recent Developments Raw material shortage hits pharmaceutical firms Olympic games in China have put brakes on high-flying Indian pharmaceutical industry. In order to present its clean image before the world during the games, China has ordered to close various drug manufacturing units to prevent environmental degradation. This has caused a scarcity of raw material in India and has pushed up prices of generic medicines. Daiichi Sankyo buys majority stake in Ranbaxy Daiichi Sankyo Company, Ltd (Daiichi Sankyo) has bought majority stake in Ranbaxy Laboratories Limited (Ranbaxy) from the Singh family, the largest controlling shareholders of Ranbaxy. The deal is subject to regulatory approvals. This deal will allow Ranbaxy access to global markets that have been off-radar for the firm till now. Daiichi Sankyo is looking forward to gain a stronger foothold in a very fast developing Indian market as well as the base established by Ranbaxy in USA. Sun Pharmaceuticals gets USFDA nod for generic Depakote The USFDA has granted a final approval to Sun Pharmaceutical Industries Ltd for its Abbreviated New Drug Application (ANDA) for generic Depakote, divalproex sodium delayed release tablets. Divalproex sodium delayed release tablets are indicated as monotherapy and adjunctive therapy in the treatment of patients with complex partial seizures. US Congress to probe FDA`s Ranbaxy case The US House Energy Commerce committee is investigating the FDAs stance on the Ranbaxy case. The committee is to probe FDAs handling on Ranbaxys imports. The committee will also probe whether FDA knowingly let unsafe medicine to enter US. Sun Pharmaceuticals Taro deal Sun Pharmaceuticals, offered $454 million, all in cash, to buy out an Israeli generics manufacturer, Taro Pharmaceuticals. The deal has not been completed as yet because of encountering several roadblocks. Taro Pharmaceuticals is an Israeli pharmaceutical firm with a global presence. By acquiring Taro, Sun is trying to enter the low-competition, specialized segments like dermatology and pediatrics. Taro’s large presence in the Canadian market is also an attraction for Sun. Key Features of quarter April-June FY09 Improvement in product and geographic mix: Higher contribution from exports (62%) for generics and higher proportion of CRAMS business (46%) were the key highlights of the quarter. Improvement in margins: led by higher overseas and CRAMS sales, a 5. 9% YoY depreciation in the Rupee v/s the USD and increased captive consumption from companies like Dishman, Lupin and Piramal Healthcare. Raw material pressure to persist in the near term: China’s decision to (i) shut down polluting plants around Beijing and (ii) restrict the movement of hazardous chemicals in view of the Olympics resulted in raw material shortages and a consequent increase in prices. A rise in crude oil prices resulted in increases in the price of API solvents and intermediates. Our interaction with a few companies suggests that raw material shortage may persist for the next one-two quarters. Depreciating rupee leads to MTM losses on Forex debt: A 7. % and 9% QoQ depreciation of the rupee v/s the USD and Euro respectively resulted in most companies declaring MTM losses on their FCCBs and foreign debt. Prominent among the losers were Ranbaxy, Jubilant and Cipla. GSK recently signed a deal with Aspen and Strides GSK Pharmaceutical has collaborated with Aspen through which it would have access to a portfolio comprising 1200 products and 450 molecules of Aspen and its JV with Strides. GSK would get these products approved in 95 emerging markets and distribute and market these as well, while Aspen will continue to market in Sub-Saharan Africa and other countries. Jubilant signs drug discovery pact with Amgen Jubilant Bosys Ltd. and Amgen Inc. , the largest US-based biotech company on Monday announced a drug discovery partnership. As per the deal, Amgen and Jubilant will collaborate to develop a portfolio of novel drugs in new target areas of interest across multiple therapeutic areas. Jubilant will develop early preclinical candidates emanating from Amgens early discovery efforts for an initial term of three years. Amgen will have responsibility for the subsequent pre-clinical and clinical development and commercialization. Amgen will retain / own the drugs developed under the collaboration with worldwide commercialization rights. Jubilant Biosys will partner in early-preclinical development effort from its state of the art Jubilant Research Centre Bangalore, while Amgen will pursue later stage pre-clinical and clinical development and commercialization of the drugs in global markets. The financial terms include a combination of research funding and success-based milestones paid to Jubilant during pre-clinical and clinical development for multiple projects undertaken by the collaboration. The total financial Milestone value is subject to successful development and commercialization of the portfolio of novel drugs. Glenmark`s molecule for Neuropathetic Pain to enter Phase I trials Glenmark Pharmaceuticals Ltd has announced that its candidate for Neuropathic Pain, Osteoarthritis and other Inflammatory Pain-GRC 10693 is entering Phase I trials. The company intends to develop GRC 10693, a cannabinoid-2 (CB-2) receptor agonist, in neuropathic pain as the primary indication. The molecule has been filed for Phase-I approval with European regulatory authorities. Biocon, Abraxis launches ABRAXANE in India Biocon Limited and Abraxis BioScience, Inc, a fully integrated biotechnology company announced the launch of ABRAXANE (paclitaxel protein bound particles for injectable suspension) (albumin-bound) in India for the treatment of breast cancer after failure of combination therapy for metastatic disease or relapse within six months of adjuvant chemotherapy, ABRAXANE is now available in India as a single-use 100 mg vial (as a lyophilized powder, to be reconstituted for intravenous administration). The Phase III clinical trial in the U. S. demonstrated that ABRAXANE nearly doubled the response rate, significantly prolonged time to progression, and significantly improved overall survival in the secon line setting versus solvent based Taxol in the approved indication. The Medical House ties up with Dr Reddys Labs The Medical House Plc, a drug delivery specialist has signed a non-exclusive development, licensing and supply agreement with Dr Reddys Laboratories. The agreement covers an initial five-year term of supply, within US, European Union and Canada, with an option for Dr Reddys to extend the agreement to the rest of the world, on mutually agreed terms, the company said in a filing to the London Stock Exchange. The duration of the agreement can also be extended by mutual agreement and the development costs associated with customization would be paid to The Medical House (TMH) in addition to reimbursement of all agreed external costs. Strides completes acquisition of Ascent Pharmahealth Strides Arcolab has completed the acquisition of controlling interest in Ascent Pharmahealth Limited (formerly Genepharm Australasia Limited), thereby making Strides the 4th largest Generics Company in Australia. Strides now holds 50. 1% stake in Ascent Pharmahealth Limited, an ASX listed company. At final closing in Sept ’08, Strides may own upto 55% in Ascent Pharmahealth Ltd. Shareholders have voted to change the name of Genepharm Australasia Limited to Ascent Pharmahealth Limited. Ascent Pharmahealth Limited will include the assets of Drug Houses of Australia [DHA] in Singapore, a wholly owned subsidiary of Strides Revenue in excess of US$90mn on a combined Performa basis. Lupin acquires Hormosan Pharma Lupin Ltd has acquired Hormosan Pharma GmbH (Hormosan), a German Sales and Marketing generics company specialized in the supply of pharmaceutical products for the Central Nervous System (CNS). Hormosan, with total sales of Euro 6. 8mn for the year ended December 2007, develops, licenses and markets a range of generics in Germany. Hormosan has a complementary product portfolio with products in the Central Nervous System and Cardiovascular therapeutic segments. Hormosan has created a strong brand identity in the German generics market through its strong patient compliance message, essential for patients within the CNS sector. Besides strong key account management the company also has a successful in Regulatory team, Pharmacovigilance, Medical Information and Marketing teams. Aurobindo Pharma receives nod for 2 ANDAs Aurobindo Pharma has received final approval from the US Food Drug Administration (USFDA) for 2 ANDAs namely Ceftriaxone for injection USP 250mg, 500mg, 2g and Ceftriaxone for injection USP 10g pharmacy bulk pack. These are Cephalosporins under the Anti-infective segment. Lupin Pharma receives nod for Divaiproex. Sodium Tablets Lupin Pharmaceuticals, Inc. (LPI) has received final approval for the Companys Abbreviated New Drug Application (ANDA) for Divaiproex Sodium Delayed-Release Tablets, 125 mg, 250 mg and 500 mg from the U. S. Food and Drug Administration (USFDA). Commercial shipments of the product have already commenced. Lupin Divaiproex sodium delayed-release tablets are the AB-rated generic equivalent of Abbott Laboratories Depakote tablets. Depakote had annual sales of approximately US$ 803mn for the twelve months ended March 2008, based on IMS Health sales data. Dr Reddy`s lab to invest in Perlecan Pharma Dr Reddys lab has purchased holding of Citigroup Venture Capital International Mauritius Limited its nominees and IDBI Trusteeship Services Limited (the merged entity after its merger with The Western India Trustee and the Executor Company Limited) in Perlecan Pharma Private Limited. The Board of Directors of Dr Reddys Laboratories Limited at their meeting held on July 21, 2008 had approved this proposal aggregating to US$18mn. References: pharmaceutical-drug-manufacturers. com/pharmaceutical-industry/ thehindubusinessline. com/iw/2004/07/25/stories/2004072500401000. htm ibef. org/industry/pharmaceuticals. aspx www. indiainbusiness. nic. in/industry-infrastructure/industrial-sectors/drug-pharma. htm