Singapore Australia Free Trade Agreement

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Introduction

Free trade is an important component of International Economics. The objective of this report is to examine the latest Singapore Australia Free Trade Agreement (SAFTA) and the benefits it brings or will bring to Australia. It examines Free Trade Theory and discusses it in Relation to Australia. It further examines its advantages and disadvantages. The Report then provides an overview of SAFTA, its benefits to Australia and its criticism in general.

Free Trade

In the past trade used to be controlled by the government as good and services have been traded around the world for years. Free trade is an essential part of national and international economic policy. It is also part of a much wider movement towards deregulatory free market policies.

More recently, it has been recognized that some countries are better at producing certain types of product than others. That is the country can produce the good more cheaply, quickly or efficiently. Hence, countries specialize in producing the goods that they can produce most efficiently, and to trade their surpluses of those goods for the products they cannot produce, or are less efficient at producing. This is known as the principle of free trade. Free trade occurs when there are no barriers put in place by governments to restrict the flow of goods and services between trading nations.

If each country decides to be self-sufficient and produce its own food and clothing both countries will be using some of their resources in a less efficient way. Each country should produce goods that are cheap to produce in their country and exchange that for products for which the cost is high in their country. This would mean all the free-trading nations can realize a larger real income from the given supplies of resources available and each countrys output will be greater than it would otherwise have been. Therefore, they will both be better off.

Free trade increases competition and discourages monopoly. Domestic firms are forced to lower their cost of production due to increased competition by foreign firms. This would force firms to be more innovative in both the product quality and production methods therefore could result to economic growth. With free trade the resources are allocated more efficiently and there is higher standard of living for the world as a whole and the welfare of nations can also be better through free trade. Free trade can increase real national product but decrease social welfare if it shifts the distribution of income and wealth in an unfavorable direction.

Free Trade Theory

Figure 1 Free Trade (Source Perloff, 00)

When trade barriers, such as tariffs and subsidies are put in place, they protect domestic producers from international competition. More competition means higher risk and this could affect a countries wealth. There are many barriers of free trade that exist in order for countries to protect themselves.

They can impose taxes such as tariffs on imported goods. This would make foreign goods more expensive hence consumers have to pay more. However this protects the domestic producers because they do not have to compete against cheaper foreign imports. Tariff distorts consumption and production i.e. it destroys both the equality of MRT (slope of transformation) and TOT (terms of trade) and the equality of MRS (slope of substitution) and TOT.

A country could introduce subsidies. Where a firm thinks a good is more attractive to produce than it was before. Usually they end up making the wrong decision. Perfect equilibrium no longer exists and the production line is distorted hence production is worse off. i.e. MRT and TOT line is destroyed however it does not upset consumption i.e. MRS and TOT are equal.

Free trade is not the same in all countries as some countries have more barriers to free trade in order to protect themselves than others. Some countries impose quotas, where only a limited amount of a specific good may be imported during the year.

Australian Perspective to Free Trade

Australia benefits from trade as they have a surplus of resources they sell the surplus to other countries and use the export dollars to buy other goods and services. Australia's GDP ratio was 15 percent in the past but now has risen to 0 percent because of the increase in exports and imports. Australia's industrial base has become stronger due to the increase in exports.

Australians have seen a change in the standard of living due to an expansion of imports, as this has benefited consumers and businesses due to an extensive range of products to choose from. Reducing tariffs have saved Australian families an average of $1000 per year. They have also seen that exporters pay more to workers than non-exporters because they sell to a bigger market hence sell more and earn more profit. There has also been a study conducted stating that removal of tariff would create 40000 jobs in years. Export is good for Australia as it is important for economic growth and job creation (Trade 00).

Free Trade Advantages

Free Trade increases production where countries specialize in the goods in which they have the comparative advantage. It lowers opportunity cost of producing. International trade increases the size of the firm's market, economies of scale, increases productivity and lowers cost.

When trade opens up it increases competition hence goods and services can be purchased at a lower price. Consumers are also about to choose form a wide variety of goods and services. Increased competition encourages innovation, the use of new technology, marketing and distribution methods. There is also economic growth, better living standards and an increase in the level of income for the countries involved in free trade

Increase in exports leads to appreciation of currency. For example, when exporting goods overseas Australia can gain currency from other countries that it sells these goods to, hence there is a foreign exchange gain. The appreciated currency can be used to purchase luxury imports such as cars. It makes imports relatively cheap.

Free Trade Disadvantages

Removal of trade barriers can cause structural unemployment in short term. Since workers in other countries may have lower wages, production of some goods may take place in other countries causing a loss of jobs in the higher wage country.

As economies become dependant on global markets, there is greater instability introduced from international trade cycles. The Asian economic crisis in 18 and economic slowdown in the global economy in 001 illustrate this situation.

Some countries comparative advantage may not be an advantage. This would make them specialise in goods that do not have potential to grow in the future. Also, new industries may find it difficult to establish in a competitive market if there is no short-term protection by the government.

SAFTA

The Singapore-Australia Free Trade Agreement (SAFTA) was signed by the Australian and Singapore Trade Ministers in Singapore on 17 February 00 (DFAT 00). Signature of SAFTA followed by ten rounds of negotiations after the agreement between Prime Ministers John Howard and Goh Chok Tong in November 000 to conclude an FTA. The agreement became operational on 8 July 00 (Free law 00).

Overview of SAFTA

The SAFTA is intended to strengthen trade and investment links between Australia and Singapore. In accordance with the agreement, Singapore and Australia will eliminate tariffs on all goods imported from the other country from the date this agreement came into effect. For Australia, it means duty free entry of beer and stout (all other products enjoy duty free entry into Singapore). The parties have also agreed not to use export subsidies and not to apply safeguards measures against each other. A FTA (free trade agreement) for Australia will further enhance linkages with south-east Asia. The broader objective of this policy is to promote trade and investment liberalisation around Asia and the Pacific.

Singapore is Australia's largest trade and investment partner in the south-east Asian region. It is Australia's seventh largest trading partner. Australia's merchandise exports to Singapore during year 00 were valued at AUD 5.4 billion making it sixth largest export market. Imports from Singapore were valued at just under AUD 4 billion making it eight largest source of imports. Singapore was also the third most important source of investment in Australia in year 001-00 in terms of 'proposed' total final direct investment. It is worth to note that most of this investment can be attributed to the acquisition by Singapore Telecommunications Ltd of Cable & Wireless Optus Ltd for a consideration of AUD 14 billion. While the Singaporean economy experienced a significant dip in the wake of the East Asian economic crisis, a return to traditionally high levels of growth is predicted. The potential for increased exports of services (particularly financial, telecommunications, legal, educational and professional) to Singapore was identified by a number of the Australian companies consulted during the negotiations for SAFTA (Free Law, 00).

SAFTA agreement further guarantees increased market access for Australian exporters of services, particularly in education, environmental, telecommunications, and professional services. It is aimed at providing a more open and predictable business environment across a range of areas including competition policy, government procurement, intellectual property, e-commerce, customs procedures and business travel (DFAT, 00).

Benefits to Australia

Singapore has been a free port with minimal tariff protection since late 18th century. Most of the Australian goods exported to Singapore had little or no tariff previous to this agreement. After this agreement, all goods including Beer and Stout will enjoy tariff free entry into Singapore (Free Law, 00).

Service industry of Australia is the one that will significantly benefit from SAFTA. In particular Australian exporters of financial, professional and telecoms services. Both countries have to deliver a comprehensive and transparent negative lists of services sectors. Negative list of the industries will include the sectors which are not be covered by the Agreement and everything else is to be included (Free Law 00).

Singapore has undertaken to ease Wholesale banking licenses over time. Conditions are also eased for establishing joint ventures involving Australian Law firms. Australian law degrees recognised in Singapore doubled from 4 to 8 (Free Law 00).

Singapore has also committed to liberalise residency requirements for Australian professionals. Mutual recognition agreements (MRAs) between Australian architects and engineers and Singapore is underway. Short term entry for Australian business people extended from 1 month to months. Long-term business residents in Singapore granted total stay up to at least 14 years. Spouses of business people can work as managers, specialists, office administrators (DFAT 00).

The SAFTA is also intended to strengthen the position of Australian investors in Singapore, by providing formal protection against expropriation. Investment restrictions in Singapores government linked companies, which is an important element of its economic infrastructure and strategy will also be made more transparent. Australian firms will get national treatment status that is they will be treated same as local firms in government procurement by some 47 Singaporean government agencies. There will be stronger intellectual property protection in government tender processes (Free Law 00).

Singapore government has also committed to address anti-competitive business practices, with consultation-upon-request for any such practices of concern to Australia. Singapore government will also apply competitive neutrality disciplines to government business enterprises, which implies that such entities will not be allowed any net benefits by reason of their government ownership alone (ACCI 00).

There are many other benefits including paperless trading, promotion of ecommerce, etc. The benefits are large in number but their significance and criticism is examined in next section (Free Law 00).

Criticism

According to Australian Camber of Commerce and Industry, the overall macroeconomic impact of SAFTA is going to be modest. Previous to this agreement 84% of imports from Singapore entered Australia tariff free. 15% of imports are subject to general tariff upto 5% while remaining 1% attract tariff of more than 5%. Thus any adjustment effects on the manufacturing sector as a whole from the SATA will be extremely small.

Economic modelling commissioned by the Australian Government on the SAFTA found that the impact of tariff elimination on manufacturing was too small to reliably estimate (Australian Chamber of Commerce and Industry 00).

Another source has raised concerned about ownership of business in Singapore. Singapores data suggests that 60% of the economy is government controlled. Singapore government owns housing apartments where 0% of population dwells, Government owns road, airlines, telephone providers, food industries, etc. Permitting such government enterprises to own businesses in Australia will strengthen Singapore governments presence in decision making in Australia. Currently government run Singapore telecommunications owns a share in Optus Communications, Victorias power grid. The source estimates that Singapore government directly or indirectly controls $40 billion of Australian investments in critical industries whereas Australias investment in Singapore is $14 billion (Ellis 00).

Some Critics have warned that bilateral or regional free trade agreements could undermine efforts to open up trade on a global scale. But both countries have stated that they are strong supporters of world trade liberalization.

Conclusion

The ASFTA will play an important part in the trade and foreign policies of both the countries. Like the Free trade theory suggests that free trade leads to specialisation and increased competition. Increased competition leads to better prices for consumers and thus general welfare improves. Australias strength lies in the services industry. ASFTA will liberalise trade of services provided by Engineers, Architects, Accountants and Lawyers.

The question arises about who will benefit more? Is it going to be one way trade? From the research carried out by the team it seems that in dollar terms Singapore will benefit more than Australia. As mentioned before Singapore has traditionally been an open port. Thus Australian manufacturers of export goods have always benefited. The team envisages that it is the Singapore manufacturing industries that will benefit in comparison to Australia. But it will definitely be an opportunity for Australian services industries to specialise.

In conclusion, SAFTA will further enhance Australias linkages with south-east Asia and in particular with Singapore, one of the most dynamic countries within the region. It will be a step towards liberalisation in Asia Pacific region, which includes worlds big trading giant such as China, Japan, Hong Kong, South Korea, etc.

References

· 4 March 00, Singapore - Australia free trade agreement, done at Singapore on 17 february 00, and Associated exchange of notes, Free Law. Available at http//www.freelaw.net.au/au/other/dfat/nia/00/1.html. (Access Date 8 October 00)

· December 00, Australia-Singapore Free Trade Agreement, Australian Chamber of Commerce and Industry, Australia.

· Ellis E, Singapore Fling, Bulletin, Volume 10. No 47. Available at http//bulletin.ninemsn.com.au/bulletin/EdDesk.nsf/0/67c45f560cdfbcfca56c68001b58?OpenDocument. (Access Date 6 October 00)

· Free Trade Agreement, 00, Department of Foreign Affairs and Trade. Available at http//www.dfat.gov.au/trade/negotiations/australia_singapore_agreement.html. (Access Date 6 October 00)

· Free trade and protection advantages and disadvantages of free trade, Available at http//hsc.csu.edu.au/economics/global_economy/tut7/Tutorial7.html. (Access Date October 00)

· Free Trade, Oxfam. Available at http//www.oxfam.org.uk/coolplanet/milkingit/information/the_issues/free_trade.htm. (Access Date October 00)

· Perloff J. Intermediate Mircoeconomics, Agricultural & Resources Economics University of California at Berkeley. Available at http//are.berkeley.edu/courses/ECON100A/HW/Old/ans4.pdf. (Access Date 10 October 00)

· Singapore-Australia trade pact in effect, Canberra eyes more ASEAN deals, 8 July 00. Available http//quickstart.clari.net/qs_se/webnews/wed/bn/Qsingapore-australia.RCLO_DlS.html (Access date 5 October 00)

· Trade, Department of Foreign Affairs and Trade, Available at http//www.dfat.gov.au/trade. (Access Date October 00)

· Tuesday 01, July 00, Singapore-Australia-Free Trade Agreement (SAFTA), Attorney Generals Department. Available at http//www.ag.gov.au/www/ilsHome.nsf/0/4A4E84D816B4FCCA56CD007DEA6B?OpenDocument. (Access date 6 October 00)

· Wikipedia, 0 August 00, Free Trade. Available at http//en.wikipedia.org/wiki/Free_trade. (Access Date October 00)

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In "the Glass Menagerie", the fire escape represents a portal, or bridge, between the deceptive world of the Wingfields and the real world. This gateway seems to support only one-way passage, but the direction varies for each character. For Tom, the fire escape is the way out of the world of Amanda and Laura and an entrance into the world of reality. For Laura, the fire escape is a way into her world a way to escape from reality. Both examples can readily be seen Tom will stand outside on the fire escape to smoke, showing that he does not like to be inside, to be a part of the illusionary world. Laura, on the other hand, thinks of the fire escape as a way in and not a way out. This can be seen when Amanda sends Laura to go to the store and Laura trips on the fire escape. It also shows that Lauras fears and emotions greatly affect her physical condition, more so than the average person.

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The jonquils also have a symbolic meaning. To Amanda, jonquils are a special part of her past and she regards them with sentiment.

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A more obvious symbol is Lauras glass menagerie. Her collection of glass represents her own private world. It is set apart from reality and becomes a place where she can hide and be safe. It is evident that she feels very strongly about the collection. When Amanda tells Laura to practice typing, Laura instead plays with her glass. When Amanda is heard walking up the fire escape, she quickly hides her collection. Laura does this to hide her secret world from the others. When Tom leaves to go to the movies in an angered rush, he accidentally breaks some of Lauras glass. The shattered glass represents Lauras understanding of Toms responsibilities to her.

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the first cause was that many people disliked the way the tsar ruled.Mny peopel dislike the way the tsar ruled and the october manifesto, in this he granted freedom of speech, right to form a plitical government and the election of a parliament by the people of russia. he also belived in autocracy. but after he regained the power he began to vhange his attitides to the october manifesto.

the second cause was that the economy could no meet the demands of fighting the war and civilians suffered badly. many peasants had to fight in the army and so they were unable to work or grow food. there were shortages of foo and coal and many people died of starvation. prices of food and coal went up.

the third cause was that the russian army did so bad in ww1 that many soldires no longer wanted to serve the tsar. the russian army was os poorly equipped and there were shortages od ammunition and medical supplies. there was poor leadership.

the fourth cause was that many people began losing faith in the government. many people began losing faith in the government because rasputins influenceon tsarina encouraged her to sack the ministers. tsarina was german so they thought she was a spy. tsarina lost support from nicholas.

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fifht cause was that the people lost faith in the romanovs fitness to govern. the government was in shambles and there was corruption and inefficiency. ministers were replaced quickly.

sixth cause was that for some time there had been revolutionary parties. they were before the october manifesto. most determined were the bolsheviks who believed in the ideasof karl marx.

last cause was that the conditions for most people were very bad. 0% of the peasants were poor. peasants had to work on land which thet didnt own.

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Reverse Logistics As An Integral Part Of Supply Chain Management.

TABLE OF CONTENTS 1.Introduction - What is reverse logistics? - Why reverse logistics is so important? . Body 4 - Components - International Reverse Logistics - Outsourcing . Conclusion 11 References 1 Introduction Most of us think of logistics as a one-way street. Products are manufactured, packaged, stored in a warehouse, sold, and then shipped off to the customer ... end of story. Yet for many logistics managers today, thats not the end of the story. In addition to managing outbound goods, they also are responsible for reverse logistics--the flow of returned goods and packaging, including customer service and final disposition of returned items. The need to manage waste materials and returned goods is growing in all kinds of industries. Today, companies like Xerox, Eastman Kodak, Mobil, Home Depot, and Ethan Allen Furniture - to name just a few - have recycling programs that meet the needs of their individual industries. There are many reasons for the explosive growth of whats come to be known as reverse logistics over the past five years or so. The most prominent is increasing public awareness of the social costs of excess waste. A large-scale recycling program, therefore, generates goodwill among consumers and industrial customers. As support for recycling grows, moreover, companies want to be perceived as good citizens that are committed to protecting the environment. Another important reason is the need to control costs. Frequently, manufacturers treat recovery of products and packaging as an afterthought. A well-managed reverse-logistics program, however, can bring enormous savings in inventory-carrying, transportation, and waste-disposal costs. For these and other reasons, more and more companies are launching reverse-logistics programs today. Unfortunately, its often assumed that reverse logistics is simply a matter of reversing the outbound distribution process. In fact, recycling and returns management have their own unique and complex issues that affect logistics operations. A brief overview of those issues highlights the five main areas you should consider before starting a reverse-logistics program. A related issue is what kind of resources you are willing to commit to a reverse-logistics program. The obvious answer is that the level of potential benefits will influence how much a company will invest in such a program. Too often, though, companies shortchange themselves by failing to devote sufficient time, money, and personnel to the project. A lot of times, [reverse logistics] becomes a side job for somebody. Its not their focus or a high priority, says Cindie Vaughan, supervisor of reverse logistics for Consolidated Freightways. If no one is proactively managing the process, its bound to result in higher costs and missed opportunities for savings and profits. A solution for many companies that have limited resources for reverse logistics is outsourcing that function to third parties or transportation companies. Its up to the shipper, though, to examine the cost and service benefits, then decide how much of the process should be outsourced. As with any outsourcing decision, its a matter of being able to focus on your core competencies and freeing up your people to work on products rather than expend your assets on [reverse logistics], suggests Brett Chyatte, senior marketing specialist for reverse logistics at Federal Express. Components The primary components of the reverse-logistics operation are retrieval, transportation, and disposition. The retrieval stage deals with where the waste or products should be picked up and by whom. Much depends on the nature of the item being returned; if its clothing, for example, a carrier can handle all of the pickup and documentation tasks at the consumers door. If, on the other hand, the items are oversized, heavy, hazardous, or very delicate, special training may be necessary for both customers and carriers. Burnham, for example, dismantles photocopiers for several customers that sell or lease the reconditioned machines. Drivers are trained to remove internal components that could cause damage in transit, protect glass, secure all moving parts, and pack them for transportation. Hazardous materials, meanwhile, must be flawlessly handled, but field locations and distributors may not have the necessary expertise. Michael LeMirande, business development manager for Redwood Systems, says he often tutors auto dealers in how to manage returns of such items as engines and transmissions. The battery and most fluids in automobiles are classified as hazardous, so there are specific procedures for preparing them for transportation, he says. A company that does not control the transportation of returns is asking for trouble, says consultant Ken Miller of Gardner, Mass. Most often, the manufacturer pays the freight for returned goods. Yet typically the customer estimates the weight, guesses at the bill-of-lading description, and routes the shipment via a carrier that has no pricing agreement in place with the manufacturer, he says. As a result, incorrect weights and product classifications can lead to $500 bills that should have been $50. To prevent thousands of dollars in excess freight charges, Miller suggests that shippers provide the carrier routing, correct weight, description, and class to customers when they call for a return authorization. Better yet, he says, customer-service representatives could complete the bill of lading for the customer showing all three of those items. The biggest questions related to product disposition are whether to handle returns in centralized or regional facilities and how incoming shipments should be processed. The answer depends on the type of product and what will happen to it after it is returned. More and more shippers are opting for centralized returns processing because it increases their control over a products life cycle and allows for better data collection. That is especially true for manufacturers of high-value goods with short shelf lives, such as computers and telecommunications equipment that need to be repaired and sold as quickly as possible, notes FedExs Chyatte. It also creates opportunities for shipment consolidations, which can reduce transportation costs and ensure better utilization of reusable containers and other equipment. Centralized returns-processing also helps shippers document returned products that are exported to secondary markets overseas, supporting claims for duty refunds under U.S. Customs duty-drawback program, adds Buzzy Wyland, executive vice president of GENCO Distribution System. A successful reverse-logistics program depends heavily on gathering meaningful information that can help manage the returns process while tracking costs, says Wyland. You want software that will facilitate the smooth, efficient backflow of product from the customer-service desk all the way to the final disposition, he says. Too often, companies add the information component at the end onto a finished program, which can create bottlenecks and inefficiencies, he notes. Whats important is not to wait until you have a pile of returned stuff. You have to plan for it upstream and build the software into the system. The Internet is becoming an effective tool for gathering and disseminating information in a reverse-logistics environment. Federal Express, for example, has developed a returns-management system called NetReturn that relies on the Internet to capture customer information, schedule pick.ups, arrange transportation, and track the status of returned goods. All the customer has to do is call the merchant and request a return authorization. Once the shipper transmits the shipment details, the information system takes over. It even prompts the merchant to follow up when items are not picked up as scheduled. The tax, finance, and credit implications of the program is an area that may not be very visible to logistics managers, but it is one of the primary reasons upper management will support a reverse-logistics program. The act of returning goods sets off a flurry of finance-related activities, including issuing refunds and credits, accounting for inventory costs, and tracking tax liabilities. Logistics can help make those activities easier and more accurate by collecting and providing the necessary information. For example, retailers and manufacturers traditionally have clashed over the issue of credits and refunds for returned products, says Wyland. Retailers sent back a product and deducted for what they sent back from their payments. For manufacturers, it was an annual nightmare trying to reconcile the physical product with the paperwork, he says. Now, with the proper information gathering and dissemination, manufacturers can immediately reconcile their customers claims. There are enormous financial benefits to managing returns this way, Wyland says. Before, manufacturers didnt know their profitability until they reconciled at the end of the year. Now, they dont have to carry unreconciled claims and they dont have to build cash reserves to cover those claims. The net effect is a reduction in the cost of doing business, he says. The benefits of a reverse-logistics program are legion. To get the greatest payback possible, though, shippers must devote the necessary time and resources to the project. Reverse logistics, in fact, should be part of the overall business strategy for any manufacturer and retailer, says LeMirande of Redwood Systems. Companies today often dont consider reverse logistics when they plan their sales and operations strategies, he says, but they should If youre not including reverse logistics in your supply-chain strategy, youre cutting your supply chain off short. International Reverse Logistics Whether goods and materials are being returned for repair, refurbishing, recycling, or resale, reverse logistics has its own unique considerations. And when companies need to manage returns across international borders, reverse logistics becomes an even more complex process. That complexity--not to mention the cost of freight, which often outweighs the benefits of taking the item back--discourages many companies from bothering with international returns, says Kevin Sheehan, president of Dallas, Texas-based Processors Unlimited. His company, which recently was acquired by USF Logistics, manages reverse logistics at 45 processing centers nationwide. Yet sometimes there are compelling reasons to become involved in reverse logistics internationally. In some instances, a returned product can be sold to recover some of the costs incurred, says Dale Rogers, professor of supply chain management at the University of Nevada-Reno. If you can recover some asset value out of the refurbished product above the cost of transportation, it may make sense to ship it outside the country, he says. And if a company imports items into the United States and they are returned by the end customer unused, he adds, it may be possible to resell them in a third country and claim a refund on the original import duties under duty-drawback regulations. There are many other factors that affect a companys decision to handle returns internationally, including customer goodwill, the desire to keep name-brand products out of secondary sales channels, and environmental concerns. Heres a look at why three shippers made that decision and how they manage international returns. Witco Corp., a global manufacturer of specialty chemicals based in Greenwich, Conn., for example, faces several challenges when managing returns of reusable stainless-steel totes from customers in Canada. The company must keep track of the individual containers, which are shipped with chemicals inside, emptied by the customer, and then returned for cleaning and reuse. It also must ensure compliance with both U.S. and Canadian transportation law because the totes often contain hazardous chemicals and residues. Finally, Witco must prepare proper documentation to allow the totes to clear customs on both legs of the round-trip journey. With a large number of containers moving back and forth between the two countries, the potential for confusion and error would appear to be great. But the $1. billion company maintains tight control over its equipment with the help of its third-party service provider, CF Reverse Logistics, a division of Consolidated Freightways. About three years ago, Witco hired CF to track, monitor, and arrange the return of the reusable equipment, reports Sheldon Ellis, Witcos international logistics manager. Customers call a toll-free number to notify the company when the empty totes will be ready for pickup. All they need to do is tell [CF] the tote number, Ellis says. Because CF tracks the totes by identification number from the time they leave the manufacturing plant, the carrier knows where home base is for each container, he explains. CF picks up the empty tote, then follows Witcos routing guidelines to ship it back to its point of origin. Rather than ask customers to create export documentation for the containers they use, Ellis has CF prepare most of the necessary paperwork. A customs broker selected by Witco clears the totes at the U.S. border. No duty applies, because the containers themselves are not being bought or sold. Outsourcing helps Service Merchandise manage returns For retailers, managing returned goods can be a costly headache. Thats because consumers are a fickle lot, returning items because the color didnt match their bathroom towels or the clock they bought ticked too loudly. In addition, retailers also frequently must return out-of-season or obsolete stock, goods damaged in transit, and items that have not been sold within a certain timeframe. Many retailers opt to keep the entire process in house. Others, though, find that outsourcing is an efficient, cost-effective means of keeping the returned-goods monster under control. One such company is Service Merchandise, based in Brentwood, Tenn. Service Merchandise sells a wide variety of consumer goods, including jewelry, furniture, kitchen items, and home electronics from 85 stores in 5 states. The company also has a mail-order business. All product returns are handled at a returns-processing center operated by Service Merchandise in Bowling Green, Ky., reports Paul Minor, director of transportation. Volume at the returns center averages between 0 and 40 million pounds annually, which represents a lot of inventory costs and lost revenues. About two years ago, company managers recognized that a more organized approach to managing returns offered the potential for significant cost savings. The logistics department, though, was unable to dedicate full-time resources to the project. The solution? Service Merchandise turned to a third-party logistics service provider to manage this aspect of its business. The third party operates a customer-service center for Service Merchandise with a toll-free number. When a store needs to return something, an employee calls to get authorization. Redwood also provides the stores with specific instructions for packaging, shipping, and documentation. Based on cost and volume guidelines established by Service Merchandise, the third party arranges transportation to the Bowling Green facility using pre-approved carriers. Our volume guidelines are based on the number of skids and on the storage space available in the stores, Minor explains. We want the largest shipments possible so we can reach better weight breaks Redwood analyzes individual store and regional demand, costs, and routing efficiencies to determine the best way to bring the merchandise to the returns center. Conclusion Technologies available today can be incorporated into re-engineered business processes. Time-consuming manual processes can be reduced or even eliminated, driving out even more costs. Technologies currently under development will integrate item-level tracking with wireless communication to update business systems in real time. Organizations will be able to stay in touch with their customers products in the supply chain, regardless of time or geography. Improved item-level information will enhance the business process to keep customers better informed and minimize product returns. Properly approached, reverse logistics can take the problem aspect out of your process and convert these costs into investments for profitable, long-term customer relationships.

Bibliography

Selected References Tom Andel Reverse logistics. A second chance to profit. Transportation and Distribution Magazine. July, 17 Toby B. Gooley There and back again. Logistics Management Distribution Report. Apr 0, 1 Kathleen Hickey Rite Aid in Reverse. Traffic World. June,1. IS THIRD PARTY LOGISTICS IN YOUR FUTURE? Modern Material Handling. Dec,000. Ken Krizner A marriage between technology and operations leads ReturnBuys attempt to re-invent reverse logistics.(Industry Trend or Event) Frontline Solutions, Feb. 17. Mitchell E. MacDonald Put it in reverse! Logistics Management Distribution Report. May 1, 17 Ronald A. Marguilis Reverse logistics. Take it back ! Materials Management and Distribution. Nov, 16 John Pogorelec Reverse logistics is doable, important.(Technology Information) Frontline Solutions. Sept. 000. Greg Raimer IN REVERSE. Materials Management and Distribution magazine. Sept, 17. Beth Schwartz Reverse logistics strengthens supply chains. Transportation and Distribution Magazine. May, 000.

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Minoans

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The Minoans first appeared in the Neolithic Period around the Bronze Age 500-100 BC. The Minoans lived in a town called Knosso, which was located in a Country Called Crete. Some other key cities that surround Knossos are Malia, Zakro, and Phaestos. These other cities play a big role in the survival of the Minoans. Knossos is the city where the Minoans primarily lived. Knossos is the capital, where the largest temple palace is located. This temple in Knossos is very elegant and prestige's where the king had his capital. Most of our knowledge comes from Knossos. Knossos was a great city, which helped the Minoans domination of the sea due to their fortune in having the island home of Crete, which was the crossroads that linked the continents of Africa, Asia and Europe. Trade in goods and ideas existed with Turkey, Cyprus, Egypt, Afghanistan, and Scandinavia, which helped the Minoans become what they were. Neolithic farmers were first to colonize. The Minoans relied on trading and farming to get ahead for their survival, which in turn lead to their domination of the Mediterranean trade.

The Minoan worshiped women goddesses. Pictures of women are more visible than men in Minoan archaeological records. Two main goddesses were the La Parisienne and the snake goddess. These goddesses where worshipped very highly in the Minoans culture. Women were taken very seriously and were included in all events and social gatherings. Women were even included in sports or rituals. A sport or ritual called bull jumping which involves bravery, agility, and skill, involved men somersaulting over the back of a charging bull for women. Art also played a big role in the Minoans life style. A lot of the paining, sculptures, pottery, and buildings represented how the Minoans life style was. Throughout the city of Knossos there is a lot of well-constructed buildings that represented how luxurious the Minoans lived and how serious they took building these buildings. Art was represented in one way or another all over the town of Knossos. Order Custom Essay on Minoans

The Civilization of the Minoans was evolving more and more each day. Trade with their surrounding city's kept the Minoans alive for some time. This also brought the Minoans civilization to an end. A large volcanic eruption, which had huge tremors, took one third of the population of Knossos and primarily whipped out there crops and ships for trade. This major disaster took their modes of survival away from the Minoans. The Minoans tried to rebuild, but could not recover because the damages were way too serious. Because of the seriousness of this destruction on the city, this resulted in the Minoans abandoning their city and moving on to start a new life.

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Total Quality Management In Construction

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Total Quality Management In Construction

The major new element in world market competition is quality. During

the 170s and 180s, the Japanese and their U.S. companies demonstrated that

high quality is achievable at lower costs and greater customer satisfaction. It

Write your Total Quality Management In Construction research paper

was the result of using the management principles of total quality management

(TQM). More and more U.S. companies have demonstrated that such achievements

are possible Using TQM as a new way to manage. Such companies also found that

they were recognized with everyone pulling in the same direction. Improvement

had become a way of live.

Improving competitive position and profit has always been the

responsibility of management. Before the 180s, U.S. management was broadly

successful. Until then the dominant management model was that of the autocrat.

Management, primly senior management, decided how the business was to operate,

including what the policies and objectives were; how it was organized; what jobs

were established; and how should they be done. It was an unquestioned axiom

that if everyone did what the upper management required, the business would be

successful.

Organizations are composed of the people in them and the managers who

lead them. People respond strongly to leadership expectations and rewards. If

they are given little power in their jobs, they have little interest in

improving them. If leaders exhort the members for better output but reward

(promotions, bonuses, recognition) for mostly higher output, they get the

behavior they reward. Quantity over quality has been a common management

philosophy in the United States.

The first step in implementing TQM requires the an upper-management

change in both philosophy and behavior. Managers must adopt the objectives of

customer satisfaction and continuous improvement. They must implement the

change to achieve these objectives through their personal and continuous

involvement and in the reeducation of everyone in the organization in TQM

principles and practices. The past philosophy of management can work reasonably

well if a company dominates world markets. When markets become complex and

worldwide with more and stronger competitors, a new model is needed. Asian

companies and some in the United States have demonstrated that there is a more

effective way to manage, quite different from the autocratic model It is

employee involvement in quality improvement. These companies also introduce

high quality at lower cost as a competitive element, thereby changing the

competitive equation for everyone.

TQM is a way to continuously improve performance at every level of

operation, in every functional area of an organization, using all available

human and capital resources. Improvement is addressed toward satisfying board

goals such as cost, quality, market share, schedule, and growth. It demands

commitment and discipline, and an ongoing effort.

The quality management process includes the integration of all employees,

suppliers, and customers, within the corporate environment. It embraces two

underlying tenets

Quality management is a capability which inherent in your employees.

-Quality management is a controllable process, not an accidental one.

The idea of an integrated, human-orientated systems approach to management was

successfully used by W. Edwards Deming in the 150s. Deming told the Japanese

that they could become world-class leaders if they followed his advice and they

did. He lectured top Japanese business leaders on statistical quality control.

He proposed a system that would change the approach to management in many ways.

Today, this system is the pillar of TQM philosophy. These components make up

the strategic portion of the quality pyramid (figure. 1). There are mainly

eight functional elements from which other concepts flow. These are

1.Organizational vision

Organizational vision provides the frame work that guides a firms

believes and values. The gist of the corporate vision should be a simple, one

sentence guide or motto that every employee knows, and more important, believes.

If well crafted, the vision statement can serve through a torrent of change in

product and service technology. The strategic vision needs to consider both the

external customer and the employees, but should lack a defining or

differentiating phrase between them. For example, General Motors provides all

employees a card with its strategic vision, including a cause-effect diagram

that indicates the importance of team work (figure ).

Simply stating a vision is not enough. It needs to be demonstrated by

the actions of the executives, managers , superiors, foremen, and individuals.

It should be done continuously in all their actions and initiatives. Moreover,

deliberation must be exercised in developing these goals and strategies. They

must reflect the values and culture of the work force. While top-management

commitment is essential, managers should realize when to lead and when to get

out of the way. In a sense quality management is management from the bottom up.

An atmosphere of responsibility must be created toward the customer for whatever

product is produced or service is rendered (fig., below).

. Barrier Removal

It is inevitable that change will be resisted. In fact, a great deal of

effort in quality management is expended in overcoming such resistance, usually

by allowing change to come from individuals directly involved, rather from

management. The whole idea of continuous improvement leads to continuous change.

Some of these barriers are

- We know what they really want (without asking them).

- Quality is not a major factor in decisions-low initial cost mentality prevails.

- Creative accounting can increase corporate performance.

- Cant manufacture competitively at the low end.

- The job of senior management is strategy, not operations.

- Success is good, failure is bad.

- If it isnt broke, dont fix it.

- The key disciplines from which to draw senior management are finance and

marketing.

- Increase in quality means increase in cost.

- Thinking that time, quality, cost are the worst mutuality exclusive, at best

we can only choose two out of three.

The following are the steps to barrier removal

I. Identify barrier. As seen above some of these barriers may apply

effecting progress.

II. Place into categories. Related barriers and their systemic causes may

now be analyzed. Categorization may be facilitated by using either cause-effect

diagrams or quality function deployment.

III. Establish priority. An objective process that is not influenced by

management or hidden agenda must be developed. At this stage barriers are

judged on their validity in accordance with the severity of the problem.

IV. Problem solve. This means more than symptoms removal. Sick

organizations do not recover for the long term if the symptoms are masked. It

is vital to address the root of the problem. The elimination of one barrier may

solve many problems for example poor communication between management and staff.

Keep in mind that analyzing the problem should include estimates of resources

required for it solution.

V. Goals and strategies for resolution. Resolution of problems may entail

goals over a period of months or years. Goals should be realistic and

attainable with the given resources. Strategies ensure that goals can be

accomplished. Bear in mind that numerical goals as such may not be what is

required. Numerical goals may also limit the amount of growth, particularly in

organizations used to working up to an average.

.Communication

Communication is the glue that binds all the techniques, practices,

philosophies, and tools. Communication may be written, verbal, or nonverbal.

Understanding and refining skills for each main type communication is an ongoing

process for everyone.

All forms of communication involve four elements the sender, the

receiver, the message, and the medium. The medium is the method of delivery,

and can effect the message. It was said that the medium is the message,

referring in part to the filtering effects that can happen to the message and

how personality factors may influence our understanding (figure. 4).

VI. Written Communication. Office memos and reports are the result of

hundreds of hours (studies indicate anywhere from 1% to 70% of office workers

time is spent in manipulating written information) of work, and their final form

should be worthy of spending some time to get words right. The use of white

space and graphical elements such as charts and figures enhances the readability

of any written piece. Given the vast amount of time spent on reading and

creating memos, letters, proposals, and the like, the byword on written

communication should be more is better, and the less is permanent (memos sent

electronically, faxes, hand notes on the bottom of the letters, rather than

typed, recorded reply) the better.

VII. Verbal. Verbal communication takes place in many different settings,

and the form of the communication will vary. One sort of vocabulary may be used

to address shareholders and a different idiom may be used altogether when

chatting with construction workers. The skills principally lacking in verbal

communication are public speaking and small group interactions. Public speaking

scares people to death. This fear may be overcome by training(organizing and

practice), videotaping the presentation (to review latter), and practice(on

small group to build confidence). Small group interactions are essential to

buildup comfort and ease among the group.

It will provide a sense of team work and it is vital to have small talk among

the team.

VIII. Nonverbal. Humans infer a great deal of information from nonverbal

clues. This non verbal clues includes body language as well as things as dress

for success. Psychologists believe that nonverbal clues lead to gut feels

about how to interact with another person. Despite the similarities of nonverbal

communication, there are cultural differences, and is probably most important to

understand these, rather than reading individuals body language. It is easy to

fall into the trap of overanalyzing nonverbal clues and infusing them with

meaning, when, for example, someone may be hard of hearing or near/far-sighted

rather than being inattentive (or too attentive).

4.Continuous Evaluation

Feedback is essential to continuous improvement. How else would we know

if our goals are being reached?. These feedback mechanisms may be simple oral

or written reports, information systems, or complex automated statistical

analyses integrated with our expert systems. The key is to receive the

information in time to allow initiating corrective action. For example, in

construction feedback from engineers, subcontractors and so forth can help us as

managers to find new ways to reduce cost and schedule. Feedback may also help

architects to find the best way to construct a building and therefore effecting

the design. We also should understand and separate assessable causes from chance

causes. Assessable causes have distinct reasons for there existence, while

chance causes are those causes that we have no control over.

5.Continuous Improvement

Unlike innovation, which require great resources, and no small amount of

serendipity, continuous improvement is easier to manage and utilize everyones

talent. Japanese companies have used this idea for some time, and call this

approach kaizen. This idea fits hand in hand with team building approach.

Kaizen and innovation are compared in figure 5 below.

To reduce cost and time and increase productivity, in any industry, the

focus must be projected on the process that produces the product. Improving the

process in construction, for example, reduced or may eliminate costly change

orders and therefore reduced complexity and time. Through inspection and

analysis of the process, everyone shares a common learning experience and the

accumulated knowledge and understanding of the process become the basis for

improving it.

Precepts of Quality Improvement - Quality leadership must begin with top

management.

- The most important aspect of quality is identifying the activities within the

organization that effect quality.

- Written procedure are one of the necessary communication media by which the

management functions of directing and controlling are exercised.

- One of the most critical activities in quality improvement is preparing a

clear, concise description of the services to be acquired.

- The cost, time, and effort devoted to evaluating and selecting suppliers must

be commensurate with the importance of the goods and services to be procured.

- Quality audits must determine the adequacy of, and compliance with,

established policies, procedures, instructions, specifications, codes, standard

and contractual requirements. Quality audits must also assess the effectiveness

of their implementation.

- The simple objective of most quality audits is to gather enough reliable data

through inspection, observation, and inquiry to make reasonable assessment of

the quality of the activity being audited.

- the foundation of quality control is having timely and accurate information

so that systems that are not capable of producing consistent quality can be

identified and improved.

- An effective quality cost program can help the management team to allocate

strategic resources for improving quality and reducing costs.

- Productivity, profit, and quality are the ultimate measure of success of the

production system.

6.Customer/Vendor Relationship

The hearing the voice of the customer has become a key phrase in the past few

years. This would seem to be a obvious point but its not. After world war II,

The United States was the only major country that did not have a devastated

economic infrastructure. Therefore, it was able to produce items of any quality

and sell them. Industries were internally driven and not customer driven. As

the glob markets grow, new competitors with new technologies approached these

markets providing better quality products and involving the customers. This

approach worked miracles for these new industries and valuable lessons should be

learned from this. Here are some strategies for improving customer and vendor

relation

- Link organizational vision to customer satisfaction.

- Reward suppliers.

- Move to a single source.

- Minimize the overall number of vendors.

- Identify the internal and external customers.

- Identify end users and distributors.

- Establish routine dialogue with customers.

- Involve the customer in planning and development.

Keep in mind that vendors must be qualified and have policies that are

compatible with yours. Viewing these vendors as partners, rather than

adversaries leads to the ability to implement successfully such cost-saving

measures as just-in-time, whereby materials arrive as needed to the construction

site.

7.Empowering The Worker

Empowering the worker means enabling the worker to achieve his or her

highest potential. For most American companies, this is new, and may be the

most powerful and useful concept in quality management. Allowing and

facilitating workers to achieve their highest potential may seem obvious or

impossible, but in fact it is neither. Empowering requires turning the

organizations chart upside down, recognizing that management is in a place to

aid the worker in overcoming problems they encounter, not to place new

roadblocks on the way.

Empowering strategies may include

I. Ownership. A key strategy in empowering employees is to allow them

ownership of tasking, project, or division. Ownership implies trust and

requires a delegation of authority commensurate with the responsibility of the

task. Ownership can also be granted to a team. Ownership also demands that the

final resolution of the tasking be in the hands of the owner.

II. Value all contributions. Whether or not we appreciate them, it is

important to enhance self-esteem of the contributor to accept their contribution

and evaluate it.

III. Every one has a value. If they didnt why would they be employed? Treat

everyone with respect. All work has dignity to it.

IV. Teams must own problem. Teams are a waste of time if management vetoes

or substantially changes their recommendation. If management is unable to trust

the recommendations that come from the team, then management fear rules, and

will spiral to lower and lower productivity.

V. Delegate authority to the lowest possible organizational level.

Constantly ask why should I do this? If you have hired competent people, let

them do there job. No one knows about the job than the person directly involved

with it.

8.Training

The outcome of training is modified behavior. It may be enhanced

interpersonal skills or specific manual skills, but there is a direct,

identifiable modification. Training need not consist solely of traditional

classroom instruction. Employees can train other employees very effectively.

A company-wide curriculum should be developed that address the needs of

each department. Courses should be just long enough to be effective. Anything

over three or four days is unlikely to immediately be absorbed into daily work

habits. Immediate reinforcement of the training is necessary to be effective.

Bibliography

1. R. Stein, The Next Phase of Total Quality Management., Macel Dekker,

Inc.,14. . T. Cartin, Principles and Practices of TQM., ASQC Quality

Press.,1. 1. W. Schmidt and J. Finnigan, TQManager., Jossey-Bass Publishers.,

1. 1. B.Brocka and S. Brocka, Quality Management Implementing The Best Ideas

Of the Masters. Irwin, Inc.,1. . H. Kerzner, Project Managment., Van

Nostrand Reinhold.,1.

Please note that this sample paper on Total Quality Management In Construction is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on Total Quality Management In Construction, we are here to assist you. Your persuasive essay on Total Quality Management In Construction will be written from scratch, so you do not have to worry about its originality.

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