Management Consulting/MS-93

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Dear Sir

Pls Ans the following Question. If you do this it will be great help for me.

1) Give an Overview of Technical Feasibility and know-how with special reference to scope of technical arrangements and provision of technical know how.

2) Examine the factors involved in deciding the location of a plant while setting up a SSE?


Thanks in Advance


Krishna

Answer
3]Give an overview of Technical Feasibility and know-how with special reference to scope of technical arrangements and provision of technical know how.
Technology Feasibilty
Definition: The process of proving that the concept is technically possible.
Objective: The objective of the technical feasibility step is to confirm that the product will perform and to verify that there are no production barriers.
Product: The product of this activity is a working model.
Technical Activities: During the technical feasibility step the following must be completed.
Test for technical feasibility;
-Examine the operational requirements;
-Identify potential safety and environmental hazards;
-Conduct a preliminary production feasibility assessment;
-Conduct a preliminary manufacturing assessment;
-Estimate engineering prototype costs
Technical Information: The technical feasibility step generates knowledge about the product or process's design, performance, production requirements, and preliminary production costs.
Assessment:
Do you have a working model of the product?
Have you evaluated the safety factors of the model?
Have you evaluated the environmental factors?
Have you evaluated the feasibility of producing the product?
Have you measured how the product will perform?
Do you have a design for the product?
Do you have a design for the production process?
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KNOW  -HOW
Know-how is practical knowledge of how to get something done, as opposed to “know-what” (facts), “know-why” (science), or “know-who” (networking). Know-how is often tacit knowledge, which means that it is difficult to transfer to another person by means of writing it down or verbalising it. The opposite of tacit knowledge is explicit knowledge.
In the context of industrial property (now generally viewed as intellectual property (IP)), know-how is a component in the transfer of technology in national and international environments, co-existing with or separate from other IP rights such as patents, trademarks and copyright and is an economic asset.
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Definition of industrial know-how
Know-how can be defined as confidentially held, or better, 'closely held' information in the form of unpatented inventions, formulae, designs, drawings, procedures and methods, together with accumulated skills and experience in the hands of a licensor firm's professional personnel which could assist a transferee/licensee of the object product in its manufacture and use and bring to it a competitive advantage. It can be further supported with privately maintained expert knowledge on the operation, maintenance, use/application of the object product and of its sale, usage or disposition.
The inherent proprietary value of know-how lies embedded in the legal protection afforded to trade secrets in general law, particularly, 'case law'. Know-how, in short, is "private intellectual property". The 'trade secret law' varies from country to country, unlike the case for patents, trademarks and copyright where there are formal 'conventions' through which subscribing countries grant the same protection to the 'property' as the others; examples of which are the A trade- secret may be defined as
•   it is information
•   it is secret, not absolutely so
•   there is intent to keep it secret
•   it has industrial, financial or trade application
•   it has economic value
For purposes of illustration, the following may be a provision in a license agreement serving to define know-how:
Know-how shall mean technical data, formulae, standards, technical information, specifications, processes, methods, code books, raw materials, as well as all information, knowledge, assistance, trade practices and secrets, and improvements thereto, divulged, disclosed, or in any way communicated to the Licensee under this Agreement, unless such information was, at the time of disclosure, or thereafter becomes part of the general knowledge or literature which is generally available for public use from other lawful sources. The burden of proving that any information disclosed hereunder is not confidential information shall rest on the licensee.
Show-how
Show-how is a diluted form of know-how as even a walk-through a manufacturing plant provides valuable insights to the client's representatives into how a product is made, assembled or processed. Show-how is also used to demonstrate technique.[
An enlarged program of show-how is the typical content of Technical Assistance Agreements where the licensor firm, if one is involved, provides a substantial training program to the client's personnel on-site and off-site. (Note: such training does not imply any grant of 'license'.)[
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Agreements should be put in writing to avoid confusion.
There are several different types of agreements or contracts --- both verbal and written. Notwithstanding stories about handshake deals that worked out perfectly, written agreements are far superior to verbal agreements because they help eliminate ambiguity between the parties. Written agreements can vary from a few words or lines scribbled on a napkin to a document containing hundreds of pages. The longer an agreement the more important it is that the agreement be well structured and organized, especially in situations where the agreement is being drafted by a non-attorney.
1.   Write an introduction section stating the names of the parties and their addresses. If a party is a company instead of an individual, the place of incorporation or organization of the company should be included with the company's address.
2.Create a preamble section summarizing the business and areas of expertise of each party to the agreement and identifying the general purpose and objective of the agreement. Start each sentence in this section with the word "Whereas."
3.Create the main body of the agreement. This section will cover the length or term of the agreement, the technology or product being sold or licensed, the service being contracted, and the price to be paid for the product, service or technology. Be precise in drafting these sections to avoid vagueness and ambiguity. Recite the exact intention of the parties in these paragraphs and sections.

4.Create a "General Provisions" section providing for the law that will govern any disputes concerning the agreement, stating whether and under what circumstances the rights or obligations under the agreement may be assigned to third parties. State what will occur in the event any part of the agreement is ruled invalid or unenforceable by a court of law. Include the circumstances under which performance of obligations may be waived and establish that the entire agreement is set included in the written agreement signed by the parties. These are standard provisions that should be in every agreement.
5.Avoid using legalese or terms you are not familiar with. Use plain English as much as possible.
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Instructions
1.Write an introduction section stating the names of the parties and their addresses. If a party is a company instead of an individual, the place of incorporation or organization of the company should be included with the company's address.
2.Create a preamble section summarizing the business and areas of expertise of each party to the agreement and identifying the general purpose and objective of the agreement. Start each sentence in this section with the word "Whereas."
3.Create the main body of the agreement. This section will cover the length or term of the agreement, the technology or product being sold or licensed, the service being contracted, and the price to be paid for the product, service or technology. Be precise in drafting these sections to avoid vagueness and ambiguity. Recite the exact intention of the parties in these paragraphs and sections.
4.Create a "General Provisions" section providing for the law that will govern any disputes concerning the agreement, stating whether and under what circumstances the rights or obligations under the agreement may be assigned to third parties. State what will occur in the event any part of the agreement is ruled invalid or unenforceable by a court of law. Include the circumstances under which performance of obligations may be waived and establish that the entire agreement is set included in the written agreement signed by the parties. These are standard provisions that should be in every agreement.
5.Avoid using legalese or terms you are not familiar with. Use plain English as much as possible.
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Implementing    technical know how.
AN  EXAMPLE  OF  KNOWHOW  IMPLEMENTATION
Implementation simply means carrying out the activities described in your work plan. Executing a project  is a very complex mission, as it requires the coordination of a wide range of activities, the overseeing of a team, the management of budget, the communication to the public, among other issues. Independent of whether it is a social project to raise the awareness and promote hygiene or it is a construction project for service delivery, there is a certain process that has to be followed.

Project implementation (or project execution) is the phase where visions and plans become reality. This is the logical conclusion, after evaluating, deciding, visioning, planning, applying for funds and finding the financial resources of a project.
The implementation of projects in sustainable sanitation and water management is complex. It requires the coordination of a wide range of activities, diverse institutional arrangements, and different time frames . There is not one typical project in water and sanitation, as the actions may vary from the construction of a new infrastructure, to the introduction of new ways of working. Projects in this area cover issues such as: social development, health, environmental sustainability, institutional strengthening, technical implementation, pilot plants, service delivery, social marketing, hygiene promotion, sanitation promotion and capacity building.
It is important to take into account that independently of the nature of the project, implementation takes time, usually more than it is planned, and that many external constraints can appear, which should be considered when initiating the implementation step (i.e. seasonality in availability of community engagement/resources)
Objectives of the Implementation Phase
The objectives of the implementation phase can be summarised as follow:
•   Putting the action plan into operation .
•   Achieving tangible change and improvements .
•   Ensuring that new infrastructure, new institutions and new resources are sustainable in every aspect .
•   Ensuring that any unforeseen conflicts that might arise during this stage are resolved .
•   Ensuring transparency with regard to finances .
•   Ensuring that potential benefits are not captured by elites at the expenses of poorer social groups
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•   How to Get Started

Before implementing the action plan, it is important to ensure that all the roles and responsibilities are distributed and understood.
“The basic requirement for starting the implementation process is to have the work plan ready and understood by all the actors involved. Technical and non-technical requirements have to be clearly defined and the financial, technical and institutional frameworks of the specific project have to be prepared considering the local conditions. The working team should identify their strengths and weaknesses (internal forces), opportunities and threats (external forces). The strengths and opportunities are positive forces that should be exploited to efficiently implement a project. The weaknesses and threats are hindrances that can hamper project implementation. The implementers should ensure that they devise means of overcoming them. Another basic requirement is that the financial, material and human resources are fully available for the implementation” . Other actions need to be taken before work can begin to implement the detailed action plan, including:
•   Scheduling activities and identifying potential bottlenecks.
•   Communicating with the members of the team and ensuring all the roles and responsibilities are distributed and understood.
•   Providing for project management tools to coordinate the process.
•   Ensuring that the financial resources are available and distributed accordingly.
Tips for Implementing Successful Projects
•   Field management staff must make time to establish an atmosphere of candour and trust with partners during implementation so that concerns may be raised (and often resolved) informally.
•   Realistic long-term planning of finances is key to the implementation of an action plan.
•   A communication strategy can be used to raise awareness of the positive benefits for the community, as well as explaining that there are necessary trade-offs, such as the introduction of water pricing, which will not please everybody. This will help to further strengthen local ownership of the plan and encourage public participation in the implementation of projects.
•   At the end of a planning and implementation cycle, a press release is useful to highlight successful stories and announce the publication of a final document such as a water report .
•   Expectations among stakeholders and the general public are likely to be high following the participatory approach to the development of the preceding stages of the planning process. It is therefore important that actions are visible and demonstrate tangible results early to build confidence in the process.
Implementation of Engineering Projects and Service Delivery
The detailed design, tendering, and construction of the infrastructure will take place during this step. Depending on the situation and the complexity, the project might be implemented through a formal construction contract or a voluntary community approach.
Formal written contracts are required where external contractors undertake specialist construction or installation work. This work should be awarded through a competitive tender process to ensure value for money . “Other procurement strategies could be a design and build scheme, and a build, own, operate and transfer conception . When formal contracts are used, there is the risk of leaving out the social framework and the needs of the users. Therefore, it is necessary to integrate the community during the implementation step, in order to create ownership of the new infrastructure” .
In community-managed projects, the members of the community are involved in the construction and installation of the new infrastructure through voluntary labour agreements, in-kind contribution, food for work schemes, and self-help programmes where the communities are provided training and resources to carry out the work themselves . It is generally more cost-effective to use labour from within the community as much as possible. However, there has to be some guarantee of quality and an understanding of the scope of the work. It is useful to have a written agreement between the primary and secondary stakeholders (community and government) defining roles and responsibilities and also agreeing the scope of the works. This will avoid confusion or disagreement later on in the project .
“It is important to take into account that in urban or peri-urban areas many people already earn a living and would not be prepared to contribute labour to a water supply or sanitation scheme but would rather contribute cash. This situation needs to be assessed at the early stages of a project” .
A strategy for capacity development should be prepared in order to ensure an effective construction, operation and maintenance work. Training activities will target technicians, masons, users, and other service providers. These activities aim at building the required capacities for the implementation and can be carried out through workshops, specialised training courses, “learning by doing” approach, amongst others.
Whatever method is selected, the construction and installation activities must be carried out under the supervision of experts and engineers. "The level of supervision required will naturally depend on the complexity of the construction work. However, if the design includes any engineering specification, then qualified staff should be available on a full-time basis to oversee construction of the works. The quality of work will suffer if supervision is inadequate because corners may be cut, inferior materials used, and safety compromised" . The involvement of the designers is also needed during the construction stage, particularly to answer questions and make changes in the design when improvements and adaptations are required.
A practical implementation plan should be prepared by the implementation team to define real time schedule of delivery of services, such as :
•   When the purchase of materials is completed.
•   When the excavation is finished.
•   When the structures of the buildings are constructed.
•   When the commissioning is expected.
Other aspects that have to be taken into account during the construction phase are: sourcing, availability of funds, payment procedures, preparation of contracts, supervision of community labour, division of labour between women and men .
“Local practices and skills should be exploited in the design and construction of the infrastructure, for instance, in some countries the quality of concrete work is very poor, while masonry skills are excellent. Similarly, local materials and construction methods should be employed wherever possible. This may not always be possible, for example if rotary drilling in rock is required, but the community should be consulted because they may have their own ideas. In some cases the use of local materials is unacceptable to the partners if it is of a very low quality; it would probably not be cost-effective to purchase local asbestos cement pipes with a design life of five years, if imported ones have a design life of 30 years”
Implementation of Social Projects
As mentioned before, social projects are also very common in the water and sanitation field, as they usually target the human factor that is crucial for achieving sustainability of the SSWM measures. These projects are usually related to the change of behaviours and strengthening of capacities by awareness raising campaigns, training activities, institutional set-ups, etc. As these projects cover a wide range of activities that are case-specific, how the implementation will take place will vary from case to case. However, the implementation of a project will always be successful if management strategies and coordination guidelines are clearly defined.
Independent of the type of project to be carried out, a work plan is needed indicating the pursued objectives, the expected results, the activities to be developed, as well as the budget available and timeframe given. Each of the activities has to be assigned to a particular individual, department or organisation that should have proven experience and the capacity to achieve the goals. Local community workers, who can speak the local languages, are the first to integrate in the project, as these types of actions require that the implementers know the culture of the community to gain their trust and achieve a real impact.
It is of primordial importance that the financial resources are readily available at the beginning of the action, so the members of the team have the budget to initiate the activities and cover their own expenses. The management team should look for strategic partnerships with local leaders and spokespersons, giving institutional backup to the actions. Directors and CEOs of the leading organisation should participate in the opening ceremonies or kick-off meeting supporting the local workers, thus facilitating future activities that will be done in the field.
An activity and financial reporting procedure has to be prepared and communicated to the members of the team. It should be clear from the beginning of the action, how all the costs incurred will be reported and reimbursed. It is important to keep procedures as simple as possible, using simple tables and template for reporting costs, field visits, interviews, workshops, meeting minutes, etc.
A controlling strategy has to be developed, in order to monitor the work done on the field. A clearly defined decision making process will set the roles and responsibilities of the members of the team: field worker ->task leaders -> work package leader -> project manager -> coordinator of the project -> steering committee. This ladder will allow for immediate correction of actions and efficient use of (human) resources.
Communication channels should be kept open between the field workers and the management team, making use of mobile phones, SMS, E-mails, etc. It is important to avoid overloading the team with bureaucratic procedures that nobody will follow (like newsletters, long reports, weekly E-mails, etc). Instead, monthly meetings should be planned, bringing the field workers together to report, exchange experiences and learn from each other’s successful and failing stories.
Applicability
Implementation is the desired step after the carrying out of a participatory planning process, as it represents the realisation of the plans and activities described in the strategy paper.
Advantages
•   Implementation gives the opportunity to see the plans become a reality
•   Execution of projects allows end-users to have access to better services and living environment
•   Success stories and experiences can be shared with specialists from other cities and towns, encouraging others to adopt similar approaches, which in turn may improve water resources management in the local area




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4]Examine the factors involved in deciding the location of a plant while setting up a SSE?
SSE  PLANT   LOCATION
Why do firms locate where they do? There is no single answer—different firms choose their locations for different reasons. Key determinates of a location decision are a firm's factors of production. For example, a firm that spends a large portion of total costs on unskilled labor will be drawn to locations where labor is relatively inexpensive. A firm with large energy demands will give more weight to locations where energy is relatively inexpensive. In general, firms choose locations they believe will allow them to maximize net revenues: if demand for goods and services is held roughly constant, then revenue maximization is approximated by cost minimization.

The typical categories that describe a firm's production function are:

• Labor. Labor is often and increasingly the most important factor of production. Other things equal, firms want productivity, in other words, labor output per dollar. Productivity can decrease if certain types of labor are in short supply, which increases the costs by requiring either more pay to acquire the labor that is available, the recruiting of labor from other areas, or the use of the less productive labor that is available locally.
• Land. Demand for land depends on the type of firm. Manufacturing firms need more space and tend to prefer suburban locations where land is relatively less expensive and less difficult to develop. Warehousing and distribution firms need to locate close to interstate highways.
• Local Infrastructure. An important role of government is to increase economic capacity by improving quality and efficiency of infrastructure and facilities, such as roads, bridges, water and sewer systems, airport and cargo facilities, energy systems, and telecommunications.
• Access to Markets. Though part of infrastructure, transportation merits special attention. Firms need to move their product, either goods or services, to the market, and they rely on access to different modes of transportation to do this. While transportation has become relatively inexpensive compared to other inputs, and transportation costs have become a less important location factor, access to transportation is still critical. That long-run trend, however, could  shift because of decreasing funds to highway construction, increasing congestion, and increasing energy prices.
• Materials. Firms producing goods, and even firms producing services, need various materials to develop products that they can sell. Some firms need natural resources: a manufacturing sector like lumber needs trees. Or, farther down the line, firms may need intermediate materials: for example, dimensioned lumber.
• Entrepreneurship. This input to production may be thought of as good management, or even more broadly as a spirit of innovation, optimism, and ambition that distinguishes one firm from another even though most of their other factor inputs may be quite similar.
The supply, cost, and quality of any of these factors obviously depend on market factors: on conditions of supply and demand locally, nationally, and even globally.

But they also depend on public policy. In general, public policy can affect them through:
• Regulation. Regulations protect the health and safety of a
community, and help maintain the quality of life. However, simplified bureaucracies and straightforward regulations can help firms react quickly in a competitive marketplace.
• Taxes. Firms tend to seek locations where they can optimize their after-tax profits. But tax rates are not a primary location factor, they matter only after corporations have made decisions on labor, transportation, raw materials, and capital costs. Within a region, production factors are likely to be similar, so differences in tax levels across communities are more important in the location decision than are differences in tax levels between regions.
• Financial incentives. Governments offer firms incentives to
encourage growth. Generally, economic research has shown that most types of incentives have had little significant effect on firm location between regions. However, for manufacturing industries with significant equipment costs, property or investment tax credit or abatement incentives can play a significant role in location decisions. Incentives are more effective at redirecting growth within a region than they are at providing a competitive advantage between regions.
Firms locate in a city because of the presence of factors other than direct factors of production. These indirect factors include agglomerative economies, also known industry clusters, location amenities, and innovative capacity.
• Industry Clusters. Firms tend to locate in areas where there is already a concentration of firms like their own. The theory works in practice because firms realize operational savings and have access to a large pool of skilled labor when they congregate in a single location.

• Quality of Life. A region that features many quality amenities, such as good weather, recreational opportunities, culture, low crime, good schools, and a clean environment attracts people simply because it is a nice place to be. A region's quality of life attracts skilled workers, and if the amenities lure enough potential workers to the region, the excess labor supply pushes their wages down so that firms can find skilled labor for a relatively low cost.
• Innovative capacity. Increasing evidence suggests that a culture promoting innovation, creativity, flexibility, and adaptability will be essential to keeping MANY  cities economically vital and internationally competitive. Innovation is particularly important in industries that require an educated workforce. High-tech companies need to have access to new ideas typically associated with a university or research institute. Government can be a key part of a community's innovative culture, through the provision of services and regulation of development and business activities that are responsive to the changing needs of business.
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THE  GLASS  FACTORY  SELECTED
THE  LOCATION   FOR  THE  FOLLOWING
REASONS.

Land. The  GLASS FACTORY   needs land for buildings and associated uses, and the built space itself. Location, cost, and quality of the space matter to all firms. The  GLASS FACTORY   is  being  offered  an  attractive  term.
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Labor. For this  GLASS  FACTORY  , labor is the largest operating cost, and the single most important factor to  the  firm  deciding where to locate is the cost. Also  the quality /  quantity  of   skilled labor  is plenty.
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Access to Markets. GLASS  FACTORY    access the  markets by moving people and goods via transportation systems.
- Excellent transportation systems  is  available.
- Physical distance to markets  is  short.
-Telecommunications systems are also important.
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Local Infrastructure. This   city has  modern and efficient physical infrastructure, including roads, bridges, airport and cargo facilities, and telecommunications.
The  local  government  maintains and improve the quality and efficiency of public infrastructure.
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Materials. GLASS  FACTORY    needs   for their inputs—raw materials and the labor pool.
which  is  available   in   abundance.
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Regulation. Permitting procedures and environmental regulations have an impact on the monetary cost of doing business and on the amount of time it takes to brings a product to market.
The  local  governement  offer  convenient  procedures  and  business friendly  regulations.
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Taxes. Tax rates for businesses and individuals, as well as unemployment insurance and worker compensation costs, affect the cost of doing business in a given location.
The  local  governement  offer  attractive   tax  concessions on  a  long  term  basis.
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Financial Incentives. Governments offer firms financial incentives to encourage growth or other public goals. Incentives are typically tax breaks for firms that locate in a specific area.
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Entrepreneurship. Entrepreneurs channel innovative ideas into new firms, and new firms tend to locate where the founder lives. If existing residents have entrepreneurial skills, they are likely to create new businesses.
THE  GLASS  FACTORY   OFFERS  FRANCHISE   OPPORTUNITIES  FOR  LOCAL  DISTRIBUTORS.
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Quality of Life. All the factors that contribute to an area's quality of life, such as educational quality, crime rate, and the environment, can affect the ability of the business to attract qualified labor. Workers want to live in a stable, pleasant community, and will be attracted to jobs in regions with a high quality of life.
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