Chapter 21 Question 3 Essay Example | Topics and Well Written Essays - 1250 words

Chapter 21 Question 3 - Essay Example Because of this reason the cost of capital starts first to decline to a point where it achieved an optimal mix of debt and equity. If a firm uses too much debt financing, its overall risk profile start to increase. With more debt, the cash flows of the firm started to get strained because of the high proportion of them going for debt servicing. This reduces the free cash flow available to the firm which is one of the essential indicators of the value. It is because of this reason that the required rate of return on equity capital of the firm starts to rise thus increasing the overall cost of capital of the firm. It is also important to note that with more financing availed; shareholders tend to view the company with more skepticism as high amounts of debts indicate high risk because it may be perceived that the company’s operations may not have the capability to generate cash. Due to this perception, investors, who may be willing to invest into stock of the firm, start demanding high rate of return on equity capital. This, therefore, increases the total cost of

The Basic Concept Of Materials Management Construction Essay

The Basic Concept Of Materials Management Construction Essay The basic concept of materials management or MM is that the system can helps to reduce cost and delays on site where the work is performed due to the poor performance done by the management teams on how to handle different materials at the right quantity, source and time. Materials management also can be defined as a process where it shows how the building was designed and materials are estimated. From the initial phase of planning until the completion phase that is waste management, the materials management will need to be efficient in order to avoid any delay and extra cost. Materials can be in the forms of raw materials, components, consumables, capital goods, spares, furniture and etc. In the management teams has to have a Project Manager to lead and responsible for the teams. Then come in a Planning Engineer and Material Engineer to prepare a material schedule, list out materials that need to be order, monitoring and control of materials consumption used at projects and etc. Cho osing of right sources especially nature materials like aggregates and stones will be the job of Quality Control Engineer. He also needs to be in charge of sampling and testing materials that are received on site accordance to the given specification. Lastly, will be the Store Manager duty to follow up with the vendors, receiving and issuing the right materials and etc. The example case study of MM can be seen on the following scenario. AlmatabSdn.Bhd. is carrying out a housing project which is semi-detached houses and double storey terrace in Johor. The construction site layout has been prepared as shown in Figure 1 which illustrates the layout equipment, building materials and access roads for the erection of the building. As a new site manager, you are requested to study the site management to be applied for the project and give some comments and advices on the layout. 2.0 LITERATURE REVIEW 2.1 What is Materials Management? There are different definitions that are provided by different researcher/author for materials management throughout the years. Ballot (1971) defines materials management as the process of planning, acquiring, storing, moving, and controlling materials to effectively use facilities, personnel, resources and capital. Tersine and Campbell (1977) stated that materials management as a process that provide the right materials at the right place at the right time in order to maintain a desired level of production at minimum cost. Beekman-Love (1978) indicates that a materials management structure should be organized in such a way that it allows for integral planning and coordination of the flow of materials, in order to use the resources in an optimal way and to minimize costs. Chandler (1978) explain that materials management systems should be implemented to plan, order, and check deliveries, warehousing, controlling the use of materials, and paying for materials. Ammer (1980) defines materials management as the process in which a company acquires the materials that it needs to achieve their objectives. Bailey and Farmer (1982) define materials management as a concept concerned with the management of materials until the materials have been used and converted into final product. Gossom (1983) indicates that a materials management system should have standard procedures for planning, expediting, transportation, receipt and storage to ensure an efficient system for materials control.Cavinato (1984) stated that materials management involves in the control of the flow of goods in a firm. It is the combination of purchasing with production, distribution, marketing and finance. Arnold (1991) defines that materials management is a function responsible for planning and controlling of materials flow. 2.2 Scope of Materials Management 1. Material Planning and Controlling This function is based on the sales forecast and the production plans of a company. The activities of the function are: Estimation of materials requirements. Preparation of materials budget of the company. Estimating the levels of inventories required in the company. Scheduling the orders placed with the suppliers to ensure availability of material. Controlling by monitoring of production sales. 2. Purchasing The purchasing is one of the major functions for materials management. This function contains the following activities: Identification and selection of possible suppliers. Finalizing the terms and references of purchases that are to be made. Placing the purchase orders this activity may be staggered as per the inventory control function. Managing the purchase orders till delivery of materials. Giving clearance to payment of received good Analyzing the performance of the suppliers and rating them. 3. Stores and Inventory Control This function helps in physical control of materials. It has the following list of activities: Minimization of material losses due to obsolescence and handling. This activity controls the timely disposal and efficient handling of materials. Maintenance of stores records along with proper location and stocking of materials. Physical verification of stocks and reconciling. 2.3 Phases of Materials Management Process Bidding Phase The contractor identifies the materials needed as well as any special requirements or special materials to be used in the project. Quantities needed are estimated and a bid package is put together and submitted. Sourcing Phase This phase involve inselection of thereputable suppliers and manufactures. The selection of suppliers is critical and the performance of a supplier can decide between a successful project and a project full of delays. Therefore, the contractor needs to verify that the supplier is capable of delivering the right material. Material Procurement The generation of a material requisition schedule. Once a material requisition schedule is in place, individual requisitions are generated from the construction site by either the foreman or the project manager. When a release form is generated, suppliers are contacted for procuring the material needed. The type of material needed, quantities, time when the material is needed and delivery location are specified to the supplier. Construction Phase This phase involves in receiving, storing and distributing the material on site. The receiving process involves inspection of the material when it is received to verify that the type of material delivered is the one ordered, qualities received against quantities ordered and quality of the delivered material. Post- Construction Phase After the installation of the materials in place, the EC has to manage any surplus material. The surplus is handled differently depending on the type of material and also whether or not the contractor has a warehouse. If the company has a warehouse, the surplus material is stored in the warehouse for use in the future projects. 2.4 Classification of Materials Raw materials: Example; plastic granules. Purchase components Work- in- progress Finished goods Spares Consumables: Examples; Coal, paints, mineral oil,etc. Machinery and equipment: Examples; lathe machines, electric motors, etc. Inflammables: Examples; petrol, kerosene, etc. Chemicals: Examples; carbides acids and nitrous gases. Furniture: Examples; chairs, tables, etc. Scrap materials: Examples; waste materials. Packaging materials: Examples; boxes, bottles, wax and grease, etc. Fuel stock: Example; coal, etc. General stores: Examples; soap, brooms, stationary, etc. 2.5 Participants in Materials Management 1. Pre construction Phase Architect Need to designs for best use of standard sizes, for multiple applications and for their recyclability. Engineer Ensures appropriate structural component dimensions, quality and spacing for use of standard fasteners and materials for multiple applications and recyclability. Estimator Use the latest materials takeoff technologies and exercises accuracy in estimates. Purchaser Has to plans purchases and deliveries in order to reduce surplus and to balance materials maintenance during on-site storage versus transportation energy consumption. Construction Site Phase Site Construction Management Applies the materials management plan to the site and oversees its implementation. Site Materials Manager Keeps track of new materials, cuts and used materials, organizes and stores them for availability in accordance. Subcontract Management Need to communicate with site management and Materials Manager regarding the types of materials that able to use for various purposes. Trade Workers Use materials properly, store new materials properly, handle and cut them carefully for maximum use or minimum waste. 3 Off-site Phase Suppliers Use recyclable packaging and returnable containers and pallets, and accept the returned containers and pallets or informs the site of others who will accept them. Recyclers Haulers Provide containers for convenient materials storage and retrieval if appropriate. Instruct the site personnel in separation and quality requirements. 2.6 Advantages of Materials Management An effective material management system can bring many benefits for a company. Better accountability on part of materials as well as other departments as no one can shift blame to others. Generally materials management is handled by single authority, it can result a better coordination, as it becomes the central point for any materials related problems. Materials management department make sure that better quality material is supplied on time to the requesting departments. This can result in better performance of the company. A materials management system is typically controlled through an information system, thus can help in taking decision related to material in the company. One indirect advantage of material management is that good quality material develops the ethical and moral standard in the company. 2.7 Challenge of Handling Material (supplier relationship) It is almost impossible to maintain a good relationship with the suppliers during construction as there will always be a barrier between the buyer and suppliers. A good relationship with suppliers is important for the materials management process as it will make sure that schedule is on time. This is how the management teams can do to improve the relationship with the suppliers. Courtesy Courtesy and promptness should be shown to the suppliers representatives whenever they visit the buyers office. Even if they visit without prior notices, they should be treated nicely and perhaps could probably request to call again at other time. Disclosure When sending out enquiries, full details of the required materials, delivery time, and etc., should be given to avoid unnecessary correspondence and clarification. Impartiality Strict impartiality should be observed in according orders and all unfair practices should be avoided. Lead time Adequate time should be given to the suppliers to affect deliveries and rush orders should be kept to the minimum. Reports in delay in delivery and unsatisfactory quality should be politely convey on no account rude letters should be sent or discourteous words spoken from the buyers side. Mutual understanding It also an advantages to be aware of suppliers manufacturing problems and raw materials difficulties and to extend help to resolve them if possible. Payment The buyer should ensure that payment of suppliers bills is not unduly delayed. Personal visit Occasional visit to the suppliers plant often contribute to better understanding between the buyer and supplier. Good relationship often brings benefits for both parties. 2.8 Problems of Materials Management on Site Materials management can be divided into five categories: The measurement and specification; The procurement and purchasing process where the order is transmitted to thesupplier; Delivery to site and logistics of checking the order, off loading, and storing onsite; The administrative and financial process of payment; Using the materials in production on the job site and removing the waste. Some common problems on construction site are more obvious which are namely: Failure to order on time which delays the projects; Delivery at the wrong time which interrupts the work schedule; Over ordering; Wrong materials or error in direction of materials requiring re-work; Theft of materials from delivery into production; Double handling of materials because of inadequate material. 2.9 Importance of Materials Management Materials constitute the biggest single element of cost. Generally more half the cost of any production system is due to materials alone. Therefore reduced materials cost is vital for improved productivity. Non-availability of materials are resource input leads to production shut down, project delays etc. hence timely availability of material is vital for production efficiency. Below is the list of the importance of materials management. Lower prices for material and equipment. Faster inventory turnover. Continuity of supply Reduced lead time Reduced transportation cost. Less duplication of efforts. Elimination of bulk- passing. Reduced materials obsolescence. Improved supplier relationship and better records and information. Better inter-department cooperation. Personnel development. 3.0 COMPARISON OF INFORMATION (CASE STUDY) Temporary Road Materials Figure 1: Existing Site Layout Double Storey Terrace Reinforcement Temporary building Waste materials Store Scaffold store Materials Store Semi-detached houses Timber Access Concrete batching plant 3.1 Evaluation of Existing Site Layout Site entrance and exit If the site entrance and exit is not place properly then it will causes confuses to the contractor, visitors, workers and supplier that deliver materials as they will simply use an open road to enter or exit and maybe can make the site more pack with vehicles. Security hut The security hut is important to put in the site layout as it can help to keep the site safe from intruder that want to steal the materials or equipment and also to keep outsider from trespass the construction site. Materials The materials name is not specified.The materials are being cramp in one place. This will lead to a delay in the schedule as the materials are not placed properly and label according to their classification. Water and power supply A construction site cannot be operate if there is no water and power supply as those supplies are indeed for sanitary purpose and lighting in the jobsite. Canteen It really unreasonable for the canteen to be left out or not included in the site layout as it provides a place to eat and rest for the workers and contractor. Site office The location of the site office must be free from those storage of materials as it can lead to noise pollution or hazardous to the worker that work inside an office for all day long. Car park A place for car park is important as it needed for the contractor or visitors to park their car in a safe place compare than just simply park beside a dangerous jobsite. Water Drainage / Sewer line Water drainage or sewer line must be included in the site layout as it will be a big help for sanitary purpose and for clean up the waste after the works is completed. Problems of Poor Planning Site Layout 1. Wrongly located the materials. Materials cannot be placed too far from work area or stocked over a drainage line. Their delivery was wrongly phased and not needed until much later. 2. Wrongly located the plants and equipment. Storage for aggregates such as lime stones, stones and fine sands are not sufficient on site. Plants such as fixed cranes are unable to reach all parts of the works if wrongly placed on the jobsite. 3. Insufficient space in the site. Materials may be stacked on roadways that can cause hazards during construction period. Working areas become too cramped with the poor planning of site layout. 4. Wrongly located the site office. Site office that located near noisy activities such as mixer or too near the roads and it can cause disturbance to the people that working inside the office. 5. Poor communication Communication is one of the key for a successful materials management on site as it can help to give correct information about materials. Relationships between suppliers also need to be fixed as it can give benefit to the management teams. 6. Poor security Security in construction site is important as to protect the materials and plant on the site from theft and malicious damage. It also can ensure that the public are stop from trespassing to the site and thus endangering their safety. 7. Temporary weather protection Canteen Water Supply Scaffold Store Site OfficeProtections are including the workers, materials, building work and equipment during construction work. Materials that are delivered to site must be placed in a correct position for weather protection. Example: brickwork needs protection from rain. T T Cement Store Site Exit Site Entrance Equipment Storage Steel Storage S.H S.H Reinforcement Timber Waste Materials Aggregate Storage Power Supply Line Sewer Access Temporary Road Concrete batching plant Semi-detached houses Double Storey Terrace Figure 2: Improved Site Layout 3.3 Suggested improved Site Layout Security hut There are two security huts in the layout. Security is need to be enforce on the site as it will help to prevent any intruder that come to steal materials and outsider that enter site without permission. Site entrance and exit Site entrance and exit is located easily as it near the security hut.They are placed in place where it will be easier for the vehicles to move in or out without giving any disturbance to others. Site office and car park The site office has been located near the site entrance. The reason was simple as the location is far from any hazardous that can harm the health of the contractors staff or visitors.Car park also is placed near office for connivance purpose. Materials labels and storage All the materials have been specified and located accordingly as it make the finding process of the materials easier and can prevent any delay in the schedule of materials management. Canteen A place that is needed for the workers to eat and rest as this also can help them to gain more energy and perform better after a hard work in the jobsite. Water and power supply This is because the site must have clean water for sanitary purpose while the power supply is to give electric power for lighting and equipment purpose. Concrete Batching Plant and Waste Materials Concrete batching plant has been moved near the site exit as it will be easier for the aggregates and cement storage to place beside it. While the location of waste materials must be considering the safety of the workers and can be avoided by placing at the back of the layout. Line Sewer The line sewer is one of the important items in a layout and is added for drainage and waste purpose. 4.0 RECOMMENDATION 4.1 Elements of Materials Management on site Safety Fire prevention: Fire is a major cause of damage on construction site. Medical services: On construction project a first aid kit is a must. Construction safety clothing: Basic safety supplies like safety shoes, hard hats, gloves and goggles must be used by workers. Delivery access The access need to be available from time to time as any particular materials may be need to use for the work that on process. Material storage The location and sizes of space for any particular material need to be consider by calculating the area required and relevant factors before selecting a suitable area as the storage. Access roads Although there is no structure was constructed as temporary road, an access must be provided on site. Material handling and lifting equipment The use of proper equipment for material handling can result a direct cost and time savings. Personnel movement on the work area There must be a sufficient space allow in the work area so that the job site wont be too cramp for any movement. Temporary facilities related to project requirements After selecting the temporary facilities that are needed on site, the size required for them must be estimated. 5.0 CONCLUSION Based on the case study, wecan conclude that it is important to apply a proper material management system to the construction site as it can properly organize the materials, equipment and plan on site.TheProject Manager has to take lead by enforcing his/her power to monitor materials schedule on all projects. The management teams have to keep trying to use various materials management technique on construction projects as it progress. Relationships with the supplier also need to be fixed as it can affect the overall process of materials management. The site must have a good security in day and night to ensure that the materials are protected from theft or pilfering. The surplus materials also need to be taken in consideration as all projects can expect a certain amount of surplus and it has to be well conceived and executed. Any wastes materials that are produced during the construction also need to be disposing properly avoid any hazard that can causes health problem to the environm ent. This is because a good planning of materials management can help to avoid any delays of works on site and reduce any extra cost for a project. Although the materials management scope stated everything that is needed to be achieved for a project but in reality problems still occur till today as lack of project information given to the management during the construction period. Most of the management teams of projects tried hard to satisfy with the needs of construction and yet still achieved poor results in return. Even if the materials management process is practiced for every construction project, it still has many flaws that have to be improved.Importance rule that must be kept in mind is that: your results are directly shown due to how much effort that you pour for it.Therefore, every participants or team members of project need to play their role accordingly as it takes more than a single person responsibility to make it possibly successful in the future.

Free Song of Solomon Essays: Father and Son Relationship :: Song Solomon essays

The Father and Son Relationship in Song of Solomon    The book called Song of Solomon, by Toni Morrison, deals with many real life issues, most of which are illustrated by the relationships between different family members.    One archetypal relationship that Morrison includes in her book is the father:son relationship. Although it is obvious that Morrison does talk about this topic, it is not so obvious what she is trying to say about it. So, one might ask, how does the author establish the father:son relationships throughout Song of Solomon and do they fit some sort of archetype? To answer a question such as this, it would be beneficial to examine the actual father:son relationships throughout the book.    One established father:son relationships that is significant to this issue is the one between Milkman and Macon. From the start, Macon objected to Milkman even being born; he forced Ruth to do things to her body that could possibly kill the fetus. With a little help from Pilate, however, Milkman was allowed into the world.    Macon, perhaps instigated by never having a mother and seeing his own father killed, has always appeared to be a cold and unforgiving parent even to his other children besides Milkman, but since Macon heard that his son ¹s nickname was  ³Milkman ² he has seen him as a symbol of his disgust for his wife and lost a lot of respect for his son and became even colder towards him. The only time Macon did spend time with Milkman, he spent it boasting about his own great upbringing, warning him to stay away from Pilate and telling him about the embarrassing actions of Ruth. This is the manner in which Morrison establishes the relationship between Macon and Milkman in the first part of the book.    As Milkman grows up, he recognizes the emotional distance between his father and himself. He goes his own way with a few skirmishes here and there and later he even manages to hit his own father. As Macon and Milkman grow apart and go their separate ways, Milkman doesn ¹t even think twice about it and just continues on with his life as if nothing was different.    Near the end of the book Milkman seems to change his view of his father, with some help from the positive memories of the old men in the passage.

Daniel hade

Shaina Gilbert Prof. Conway English 101 November 26, 2013 It is an obligation since elementary for children to learn about the U. S. history.However, some historical books feed our children and society inaccurate stories to cover some lies that our prideful country, the United States of America is hiding from To paraphrase, Hade talks about The American Girl Collections how the stories in those books are so inaccurate that the United States tends to hide the issues, or to focus less on the consequences of some issues as a result for our children to grow up ith the belief that the United Sates is this perfect and progressing country, where the United States always have a happy ending (563-572).Related to Hade's approach of inaccurate stories, the conspiracy of Martin Luther Kings death falls into the same category. Our history book always taught us that Martin's assassination was done by a lone gunman called James Earl Ray. However along the line, cases and investigations have proven that Martin Luther's death was all a conspiracy involving the FBI, military, CIA plotting against civil rights leaders. The government and media anage to cover up by providing the public misinformation to protect the pride of the United States, that the U.S. would never have such corrupted agencies, that USA should always be the best, the example of many (Halyard). We all knew that it was never about a racist gunman, there was more to the situation but again the government partially revealed the information, for the purpose of how people will look at the United States and it is the same point as Hade said about his article that our children are taught lies and even adults had to grow up with those lies for the protection of the US's reputation.He argues that â€Å"the books are too busy telling the students how great the United States was and still is to give them much real history'(Hade 568). It is true, we all know that books will never admit that we were wrong for some part, on the contrary books will brush off the real issues or the real story of the issue to present the United States as being on the right side and doing the best of all. Martin Luther's death until this day is still not fully revealed to the public and will never for the sake of the prideful fgure that United States have. Quoted by Hade, â€Å"These books†¦ ems to connect with the ultimate American goal† (572), and he is right we have given stuff that only they decided we should know to protect the American goal.

Contracts 1 Assignment Essay

Selwyn Selikowitz Group No: 3613 Advice has been sought as to whether or not Dr. Amber has an enforceable contract with Furniture Comfort, and whether she is entitled by law to buy the couch at the discounted price. In order to address the issue, one needs to start by examining each of the four essential elements for contract formation: agreement, consideration, certainty and an intention to create legal relations. The newspaper advertisement is not an offer but an invitation to treat. In Boots v Pharmaceutical Society of Great Britain, it was decided that ‘a contract is not completed until, the customer having indicated the articles which he needs, the shopkeeper, or someone on his behalf, accepts that offer. ’ The items on the shelf of the ‘self services’ shop were treated as offers to treat. This decision was due to the nature of the shop. It is not only inconvenient but also practically and legally unfeasible to be entered into a contract every time one picks up an item from the shelf. Advertisements are presumed to be invitations to treat due to similar reasoning. The exception to this presumption can be found in Carlill v Carbolic Smoke Ball, where the advertisement was determined to be an offer as there was an express intention to pay money in the event of certain circumstances occurring. This exception doesn’t apply to the present case. The reasonable person would interpret phrases such as â€Å"25% off all selected floor items†, and â€Å"We beat all competitors† in Furniture Comfort’s advertisements as not indicating a offer to enter into a contract with all readers, but merely inviting them to make an offer. Thus the newspaper advertisement is an invitation to treat. . OFFER Dr Amber saw this ‘invitation to treat’ and responded by visiting Furniture Comfort. Being unhappy with the fabric on the model, she wished to buy a couch with a suitable fabric of her choosing. She made an offer to buy the couch as long as the fabric was one she chose and the couch was sold to her immediately upon her return. This conditional offer is made evident through her words â€Å"I assume the sale will still be on†, and â€Å"I’ll need it immediately after that. † Now under the main offer she gave an option, a condition to the purchase. An option contract is defined as ‘an agreement for consideration under which a party acquires a right exercisable before a specified time to buy or sell property at a given price from another party. ’[2] In Goldsbrough Mort & Co v Quinn, the grantor gave the option holder an option to purchase certain land at a specified price at any time within one week of the agreement in return for the sum of five shillings paid to the grantor. In the present case, the option was Dr Amber’s offer to buy the couch as long as the couch was reserved for her. 3. ACCEPTANCE In response to Dr. Amber’s offers, Maggie replied â€Å"We can do that if you prefer. Let’s go to my office. † Whether or not Maggie’s reply and consequent actions can be construed as an acceptance of the offers depends on whether it satisfies certain rules in contract law regarding acceptance. (a) The acceptance must be communicated In Felthouse v Bindley, it was determined that silence cannot be taken to indicate acceptance. [3] Although the acceptance may have been inferred by conduct of the nephew, his intention was not communicated to the uncle, and thus it was found that no acceptance had been made and no contract was formed. In this case Maggie explicitly responded to Dr. Amber’s offer with the words â€Å"We can do that if you prefer. † Thus the acceptance was communicated (b) The acceptance must be absolute and unqualified The acceptance must be complete, without changing any of the terms. Otherwise, instead of an acceptance it would be a counteroffer. In Butler Machine Tool Co Ltd v Ex-Cell-O Corp this distinction was made clear, in the ‘battle of forms’ involved. ‘Acceptance’ based on changing of conditions of an offer of one party was deemed to be a counteroffer, not an acceptance. Maggie in this case has absolutely agreed to the conditions of Dr. Amber’s offer, reflected through her actions in allowing Amber to sign the special order information and also to leave with the fabric. (c) Acceptance must be in reliance of the offer In Crown v Clarke, Clarke was found to have not acted in the faith of or in reliance of the offer, but rather for his own intentions. Thus he was found to have no claim to a reward he had received under contract. In the present case, Maggie knew the specific details of the offer such as â€Å"reserve the couch now†, â€Å"take the samples† and â€Å"order the couch when I get back† Thus her acceptance was made in reliance of the offer and the option. d) Must be in compliance with the offeror’s offer Maggie complied with Dr. Amber’s offer by allowing her to leave with the samples, and placing a special order in the ‘fabric checkout binder. ’ There was therefore a legally recognisable acceptance on Maggie’s part. Maggie accepted Dr. Amberâ€⠄¢s option of keeping the couch reserved, as well as her offer of purchasing the couch