Importance of financial reporting to share purchasing - Free Essay Example

Sample details Pages: 6 Words: 1796 Downloads: 1 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? Nowadays, most of the people have invested in the capital market. For example, stock, bond, options, foreign currencies, etc. They all want to gain the profit what they want. Everyone is different. However, how can they predict the share price for purchasing or sale decision? Are there any influences of financial information to them for making decision? Before answering these questions, lets discuss what market efficiency is first. The term of capital market efficiency is used to describe the way in which the market absorbs information. An efficient capital market is that the information relating to a company is processed quickly and accurately and reflected in the share price. So, the shares will be fairly priced. Some new information such as profit warning, dividend announcements, new contracts have been signed, which alters the expectations of investors about the future prospects of the company, we should expect an instantaneous and unbiased reaction from the market in the form of a revised share price. (Dr Peter Atrill, ACCA, What every financial manager needs to know about market efficiency, 24 Feb 2002) There are three type of efficiency: Don’t waste time! Our writers will create an original "Importance of financial reporting to share purchasing" essay for you Create order Operational efficiency, this refers to cost, speed and reliability of transactions in securities on the exchange. We can achieve by creating as much competition between market makers and brokers as possible so that they earn not very high profit. Allocational efficiency, stock markets help in the process of allocating societys resources between competing real investments. For example, a large amount of funds is provided for the growth industries but small for slow-growth industries. Pricing efficiency, in a pricing efficient market the investor can expect to earn merely a risk-adjusted return from an investment as prices move instantaneously and in an unbiased manner to any news. Efficient market hypothesis (EMH) applies to this form of efficiency only. (Glen Arnold, Corporate Financial Management, 3rd ed., Financial Times) EMH (Fama 1964) is a theory that can predict the future prices of securities. It is assumed that the price of a security reflects all of the information available and everyone has some degree of access to the information. Famas theory breaks EMH into three forms. They are weak, semi-strong and strong. Weak form: All information contained in past price movements are fully reflected in share price. It is pointless basing trading rules on share price history as the future cannot be predicted in this way. Semi-strong form: Share prices fully reflect all the relevant publicly available information. Because of the market has already absorbed the information. So, there is no advantage in analyzing after is has been released. Strong form: All relevant information, including private information, is reflected in the share price. Even insiders are unable to make abnormal profits. (Glen Arnold, Corporate Financial Management, 3rd ed., Financial Times) However, EMH has been criticized by many authors and philosophers. EMH assumes that the investors have similar expectations, but if all of them had the same expectations, it would not be possible for security markets and security trading to emerge. Assuming all participants gave equal access to information is quite controversial. EMH gives the impression that security markets have no connection with real life, but the investments made in the market are used in the operations of companies in the real world. Behavioral Finance (BF) is a concept that has become widely popular in recent years. It focuses on how investors interpret their knowledge then makes decisions based on information and how they act with their investment decisions. It has developed as a result of increasing interest of psychologists in economics. (Murat Kiyiar, Okan Acar. Annales Universitatis Apulensis: Series Oeconomica. Behavioural finance and the study of the irrational financial choice of credit card isers, Alb a lulia: 2009. Vol.11) Emotion, one of the most important factors, affects the investors decisions. BF approach investigates the influence of emotions on investment decisions. In converse to the EMH, BF is based on the investor behavior in the market. And also, BF states that markets are not effective, overreaction or lack of reaction has been shown the proof to us. Technical analysis: For those shortsighted investors, they may use this analysis to make the profit in a short time. Evaluate securities by studying the statistics generated by market activity on those securities. Using charts of stock performance, identify past patterns and trends and then to determine the future stock price. (William Ainson, Financial Planning, New York: Mar 2011. Vol. 41, Iss.3) Fundamental analysis: In my viewpoint, I think this analysis is only suitable on longsighted investors, not for the day traders. It is because research is required to determine the securitys intrinsic value. Investors rely on the companys annual report, competitive environment facing by the company, or any current news relating to the companys operations, to analyze its future growth, business prospect, financial strength and management skills, in order to determine whether the share price is overvalued or undervalued. Investors normally will focus on the following ratios by using the income statement and balance sheet which are inside the annual report. Such ratios are earning per shares, P/E ratio, Return on Equity, etc. Both technicians and fundamentalists have developed certain techniques to predict prices from financial information. Such financial information includes the company financial statements, company announcements. Let me show you some example that companys announcement affect its share price. The first example is Asia Energy Logistics Group Limited, which is listed in HK, stock code is 351. The company followed the HK Listing Rule 13.09 (1) issue an Announcement. This was a profit warning Announcement because the company expected to record a substantial loss for the year ended 31 December 2010 compared with last year. The company wanted to inform shareholders and potential investors should exercise caution when dealing the shares or other securities. The Announcement was announced on 25 March 2011 at 8 p.m. Due to this Announcement is the bad news to the company. So, we may expect that this information will reflect on 28 March 2011 trading hours. The truth was that the closing price of the company on 25 March is $0.171. The company recorded a maximum 18.1% decrease at 28 March. And the closing price is $0.150. A decrease of 12.3% compared with the last closed price. Another example is Li Fung Limited, one of the constituent of Hang Seng Index, stock code is 494. The company issued its final result of 2010 on 24 March 2011 after the trading hours. The sales were increase 19% to HK$124 billion and the profit attributable to shareholders was increased 27% to HK$4,278 million. However, on the next day, the share price of the company decreased from $42.95 to 39.05. On 28 March, the closing price fell to $37.55. You may ask the performance is better than the last year, why the share price would fall? It is because the company cant meet the targets which were set in the annual report of 2007. Referring to the report, the targets were that the sales of 2010 were expected to US$200 billion and the net profit of core business was US$1 billion. Explained by that company the reasons are that due to the unexpected onset of the global financial crisis and economic downturn of 2008 and 2009 resulted in soft consumer markets in the US and Europe that compromis ed the companys ability to achieve these targets. So, although the performance of the company is better than the last year, the share price was also fall because of the company can not meet the target. By looking at these two cases, we can proof that financial information issued by the company will affect the performance of the share price. And also this information can predict the share price. In order to derive a summary measure to predict the direction of future earnings changes of companies, Ou and Penman (1989) performed an extensive analysis. They assigned the companies to long and short positions on the basis of calculated summary measure and the profitability of investing in a hedged portfolio was examined. Their version of fundamental analysis involved the reduction of a large array of financial statement information into a scalar measure called Pr. The main aim of the study was to asses whether the Pv measure captured information that was not reflected in prices. The descriptors should have the ability to forecast stock returns if the prices did not reflect the information about future earnings and later gravitated towards fundamentals. (Ou, J.A. and Penamn, S.H. (1989b), Financial statement analysis and the prediction of stock returns, Journal of Accounting and Economics, Vol. 11) Holthausen and Larcker (1992) predicted stock returns from accounting data. They also analyzed specifications for measuring excess returns such as market adjusted returns, computed using CAPM and size adjusted returns in order to investigate whether their fundings were influenced by the method of excess return calculation. (Holthaisen, R. W. and Larcher, D.F. (1992), The prediction of stock returns using financial stetment information, Journal of Accounting and Economics, Vol. 15) Therefore, investors could use both current and historical earnings data to predict the share price response to future earnings announcements. As Mr. Right agree the EMH and said the information contained in the annual reports is already included in share prices before the information is published. The report cant help us for making share purchasing or sale decisions. However, I dont agree with his opinion because I think EMH is a perfect theory. In the stock market, the information is not perfect efficient, insider dealing must be contained in the market. Some people may know the companys news before they issue to the public. And all some analysis needs cost to analyze. So, not every people can obtain these kinds of information. So, the share price can not reflect the company value accurately. Investors are irrational, if something happens that will make them afraid, they will follow the other peoples action. For example, people were afraid that the radiation would be released from Japan. They heard that salt can prevent radiation. So, everyone go to buy salt. The price becomes increase from $2 per bag to $10. It is not a reasonable price. However, they also buy it quickly. It can also apply to the stock market. Subject to this case, we can see that people are irrational. So, I suggest that investors should use financial information to evaluate their decisions. (1,607 words) REFERENCE: Dr Peter Atrill, ACCA, What every financial manager needs to know about market efficiency, 24 Feb 2002 Glen Arnold, Corporate Financial Management, 3rd ed., Financial Times Murat Kiyiar, Okan Acar. Annales Universitatis Apulensis: Series Oeconomica. Behavioural finance and the study of the irrational financial choice of credit card isers, Alba lulia: 2009. Vol.11 William Ainson, Financial Planning, New York: Mar 2011. Vol. 41, Iss.3 Ou, J.A. and Penamn, S.H. (1989b), Financial statement analysis and the prediction of stock returns, Journal of Accounting and Economics, Vol. 11 Holthaisen, R. W. and Larcher, D.F. (1992), The prediction of stock returns using financial stetment information, Journal of Accounting and Economics, Vol. 15

Lung Cancer Is One Of Many Common Diseases. About Two And

Lung cancer is one of many common diseases. About two and twenty thousand cases of lung cancer, affecting men and women, were predicted for the year twenty seventeen. This statistic was estimated by the american cancer society. Of these people, about one hundred and fifty six thousand will not survive.There are many symptoms, as well as advanced stage symptoms that people should be aware of. Many of the signs of lung cancer, are simple things some people may not even notice, such as: coughing, exhaustion, and wheezing sounds when you breathe. Your environment and your family history can also affect your chances of getting this disease. There are also many well-known treatments of lung cancer. The information given should give you not only†¦show more content†¦Lung cancer can be present in the bronchi, trachea, and alveoli. Lung cancer is the leading cause of death between men and women. Women will die from lung cancer than breast cancer, and smoking cigarettes is the greate st risk to developing lung cancer. According to the American Cancer Society, one in thirteen men, one and sixteen women, develop lung cancer in their lifetime. About 222,500 people in United States will be diagnosed with lung cancer in year 2017. Lung cancer is among many common diseases. So many people believe that if they don t smoke, or smoke very little, or quit after so long that they are not susceptible to lung cancer. Even though it is the most known way to get lung cancer, it is definitely not the only way to get this horrible disease. Sometimes knowing what to look for, or understanding what someone is going through can help. Here is some information on how this disease presents itself, facts, and treatments. First, people need to be aware that there are two different types that come with this disease. Small cell lung cancer and non-small cell lung cancer. 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Human Resource Management International Digest

Question: Discuss about the Human Resource Management International Digest. Answer: Introduction: A human resource manager plays a major role in an organization as he makes decisions related to development of the organization, recruitment, training and development of employees. Besides, according to the needs of his organization, a human resource manager decides what organizational culture would be and how employees will follow it. According to Flamholtz, (2012), strategic planning means a vision for the organization for following several years, mostly for 2 to 5 years. Now, it is important that while making strategic plans, human resource manager must be there. If human resource manager is present at the time of strategic planning, then he would be able to understand the new vision and objective of the company. Based on that, he will make changes in recruitment process to hire right people for the organization. Besides, if an HRM manager is present in strategic planning, he will be able to speak immediately to any potential conflicts between what the company wants and what is pr actically realistic in HR terms. It will make sure that plans are workable and achievable from the beginning. As mentioned by Storey, (2014), strategic planning often encompasses transformation in workplace systems or methods. Managers of individual departments can only have knowledge about their employees only. However, HRM manager stays aware of group initiatives and have information about the status of each department. Therefore, if an HRM manager is there during the strategic planning, he will be able to advice on how proposed changes can impact organizational systems and methods that are already in place. On the other hand, researches show that currently only 20% of the workforce has the skills that will be required ten years from now (Buller McEvoy 2012). That clearly indicates that organizations will have to invest more on training and development programs in the near future. If a human resource manager is present at the strategic planning, then he will be able to discuss th is matter with the higher authorities which will help the organization to allocate resources to training and development sessions. Besides, that human resource manager will also be able to speak about challenges and issues that might occur in future training and development policies. If the management knows about the issues in advance, then they will be able to implement proper plans so that those challenges can be minimized in its initial stages (Aswathappa 2013). On the other hand, human resource manager is responsible for developing polices related to health and safety, work condition, organizational culture and job schedules. If he remains absent in the strategic planning phase, and then he will not be able to make changes to the policies properly to meet the new objectives and goals of the organization. Last but not the least; human resource manager is a link between management and employees. If human resource manager does not know about the new goals of an organization, then h e will not able to describe them to employees (Nickson 2013). It will develop de-motivation among the employees which will affect productivity and profitability of the organization. From the provided case study on Powermat Inc, it can be said that the organization currently have some problems in their recruitment department. Recruitment department of the organization is not able to hire proper candidates for the middle management departments. That is why; Powermat is having trouble while retaining its employees. As a consultant, in order to reduce or eliminate issues related to recruitment, an enhanced method of recruitment and selection can be advised. It is obvious that the organization is not getting proper candidates as their recruitment process is failing to do. Therefore, restructuring the entire process might help the organization. Some steps to develop an efficient recruitment process are hereby mentioned below. Sourcing of Candidates: This means, human resource specialists of the organization will utilize their professional contacts, resourcefulness and comprehensive knowledge of the vacant position to figure out qualified applicants for the company (Kumar et al., 2016). Sourcing mostly takes place at trade shows, seminars and conventions via online posting to career sites or social networking sites. Word-of-mouth method can also be used for job announcements as it is the most effective method for sourcing candidates. Screening and reviewing applicants Applicant Tracking System has changed the conventional method trough which HRM specialists used to conduct recruitment process. Applicants carrying hard copy are almost superseded. It is replaced with online application process which is fine-tuned by the developers for the human resource departments (Breaugh, 2014). This software backed systems minimize the time spend via paper applications. It also helps the recruiters to slim the list of candidates to a controllable number of people whose resumes advocate that they are competent for the job. Right platforms for job posting In the era of social networking, according to Yakubovich and Lup (2006), best most effective way to communicate the benefit of the company and its structure would be through world-of-mouth. New comers must consider several job search sites, universities, social networking, news papers and orders of professors. Preliminary phone interviews can be done with the applicants (Gupta, 2016). It will help the recruiters to obtain more information about him. During the phone interviews questions related to previous work history can be asked. It will help to confirm the accurateness of information on his resume. Psychometric test Psychometric test will help the recruiters to assess the aspects of candidates personality which will have an impact on their overall presentation. This step is far from being discriminatory and it also does not eliminate any candidate. This step is extremely useful to understand strengths and weaknesses of the employees. If a candidate is selected, then this step can be used to help that candidate to face his new challenges in the workplace. Psychometric assessment is also helpful to develop an orientation model with pre-established job norms for a given position (Doherty 2012). When comparing the psychometric assessments to job principles, chances of achievement are exponential. The norms mostly identify the behaviors, qualities profiles and other skills that are ideal to exploit the performance of the individual in a given position. In-person interview Once all the required information is gathered about a candidate, it is important to conduct a one-to-one meeting with him. As the current recruitment process of the company is not working, new interview guide must be adapted. Interview guides must change according to the candidate (Cabrera and Bonache 2013). For example, after psychometric test, if a candidate is found to be very organized, then questions must be asked that will challenge his skills when faced with more unprompted situation. Second interview According to Mochol et al., (2014), if the recruitment is going on for specific positions, then second interview is useful. As the organization will recruit only for middle management department, this method can be used. In this process, information and answers that were collected during previous interview will be reviewed. Reference checking The above mentioned methods are enough to recruit proper employees for the middle department of the organization. However, there are still chances that mistakes will take place. It is already seen that hiring mistakes are hurting the organization. Therefore, reference check stage is also important (Need 2016). All the provided references will be validated including previous jobs, training experiences and criminal records. As per the given scenario, the maximum percentage that the system of the bank can increase is 10% and this is applicable to each of the employees in the bank. In case of Jim, it is expected that before opening the new branch, he was aware of this fact that he will get maximum increment of 10% of his basic salary. After knowing this fact, if Jim has devoted his valuable time and ideas to the business and led the business to the highest level, then it is obvious that Jim should be satisfied with the increased percentage of his salary. It is also true that the growth achieved by the bank under the leadership of Jim is much valuable to the bank and as a reward, Jim should get more increment. However, as 10% is the maximum increment and Jim wants to work with the organization, he should be satisfied with the raised percentage of his salary. No, the bank does not offer adequate sales incentives to its branch manager. A branch manager is responsible for the overall performance of the bank. If the particular case of Jim is considered, then it can be identified that Jim has taken the complete responsibility of opening the Northside Parkway branch of the bank and within one year, the new branch achieved tremendous success under the leadership of Jim. After getting the high level of success and growth, it is not acceptable that the branch manager gets only 10% increment in basic salary. The bank must give 30% increment to Jim on his basic salary. 10% increment is very low as per the time and efforts provided by Jim. However, if the board of directors cannot change the system, then they atleast provide any extra reward in kinds like, foreign trip or gift voucher to Jim. References Aswathappa, K., 2013.Human resource management: Text and cases. Tata McGraw-Hill Education. Breaugh, J. (2014, July). Employee recruitment. InMeeting the Challenge of Human Resource Management: A Communication Perspective(p. 29). Routledge. Buller, P. F., McEvoy, G. M. (2012). Strategy, human resource management and performance: Sharpening line of sight.Human resource management review,22(1), 43-56. Cabrera, E. F., Bonache, J. (2013). An expert HR system for aligning organizational culture and strategy.People and Strategy,22(1), 51. Doherty, R. (2012). Getting social with recruitment.Strategic HR review,9(6), 11-15. Flamholtz, E. G. (2012).Human resource accounting: Advances in concepts, methods and applications. Springer Science Business Media. Gupta, Y. (2016). Literature review on E-Recruitment: A step towards paperless HR.International Journal,4(1). Kapse, A. S., Patil, V. S., Patil, N. V. (2012). e-Recruitment.International Journal of Engineering and Advanced Technology,1(4), 82-86. Kumar, V., Kumar, V., Srivastava, A., Srivastava, A. (2016). Tweeting to a job: HCLs recruitment campaign on Twitter.Human Resource Management International Digest,24(5), 4-6. Mochol, M., Oldakowski, R., Heese, R. (2014, September). Ontology based Recruitment Process. InGI Jahrestagung (2)(pp. 198-202). Need, W. C. D. H. P. (2016). Human resource management: Gaining a competitive advantage. Nickson, D. (2013).Human resource management for hospitality, tourism and events. Routledge. Storey, J., 2014.New Perspectives on Human Resource Management (Routledge Revivals). Routledge. Yakubovich, V., Lup, D. (2006). Stages of the recruitment process and the referrer's performance effect.Organization science,17(6), 710-723.

Computerized Maintenance Management Systems Essay Example For Students

Computerized Maintenance Management Systems Essay Facilities departments are under tremendous pressure to provide more information faster, and at a lower cost to the company. At the same time many companies have reduce staff to the bare minimum. Maintenance professional are presented with more difficult challenges today than at any previous point. The biggest obstacle of all confronting maintenance professionals is being forced to do more with fewer resources. Maintenance departments must deliver superior service, comply with regulatory requirements and provided detail financial accountably all within the confines of limited and/or reduce budgets. In order to meet these challenges, maintenance professionals are arming themselves with economical computerized maintenance management systems (CMMS). In recent years flexible, dependable and economical computerized maintenance management systems have become available to help fight the never-ending struggle to operate and maintain the built environment. But what are computerized maintenance management systems? They are management information systems that utilize the technologies of computers, telecommunications, etc. to executed the maintenance management processes and provide management with information for decisions making process.Figure # 1 Maintenance Management ProcessWork IdentificationWork PlanningWork SchedulingAnalysisHistory RecordingWork ExecutionLike any other computerize information system it is made up of the following:We need to acknowledge at the outset that CMMS are not for every organization and that current research shows that as much as fifty percent of all CMMS start up have failed to pay back a meaningful return on investment after two years of operations. That is to say in many cases the heavy investment in CMMS information technologies have failed to live up to the much publicized benefits of automation and have delivered some disappointed results. So we do not want to give the impression that CMMS in themsel ves will cure all the ills of the profession and to advice against walking into the same technology trap that are endemic to the business community at large. In a rush to automate every job function that affects organizational efficiency and bottom line profits, many managers are overlooking important caveats inherent in all information technology implementations. This highlights the point that an organization needs to know how to find the right CMMS and how to implement and maintain the system. The decreasing costs of computer hardware, and the emerging power of microcomputers and software technologies, have disguised the question of feasibility. Many maintenance professionals, in their haste to keep up with contemporary information management technologies, unwittingly, neglected to evaluate these important questions before automating:1.Do we have an information management problem, or a business management problem?2.Have we thoroughly evaluated the real benefits and cost of a CMMS implementation?3.Do we have the internal knowledge and commitment to complete the CMMS effort?If an information system already exists in the organization then the concerns of integrating a new system could also be look at. The purpose of a computerized maintenance management system (CMMS) seems to change constantly. The software initially was designed to assign maintenance tasks to the staff within a company in a more organized manner than the paper method. More recently, it purpose has expanded to include assuring the higher quality of equipment and facility condition and out put, as well as assisting administration and management in increasing production and overall efficiency. To deliver maximum benefit to a facility, a CMMS has to be efficient, address a wide range of demands and be able to expand with evolving needs. With technology exploding throughout the CMMS market, planning that maximizes your system is essential. The decision-making process managers go through in selecting an ideal computerized maintenance management system (CMMS) is often formal and logical. The process includes a needs analysis relative to the CMMS architecture. A resource analysis is also required for the introduction, startup and continued support of the system. The best way to find the right (CMMS) is to look at your current situation. Consider the following area:Organization. An excellent system run by poorly trained or under-motivated people will be adequate at best, but well-trained people with positive attitudes can make an excellent system world class. You will need to know how many people are requesting maintenance services, who the most frequent requesters are, what there needs are, and how many and what kinds of maintenance people you have. Equipment. Maintenance workload is determined by equipments and facilities. Find out about the numbers and kinds of equipment. Find out from client what their top 10 equipment or facility problems are. Operation people will tell you what equipment problems they have, and maintenance people will know the most frequent building system problems. Work orders. You need to know how many work orders you generate each week. A rule of thumb is that the average work order takes an hour. From this and the number of workers, you can estimate the number of work orders per week. After you have determined your current status and needs for computerization, you can start specifying CMMS that can deliver these benefits. The proliferation of software targeting commercial and institutional facilities maintenance continues with no visible signs of letting up. New application and upgrades of existing CMMS appears regularly, and each new generation offers more in the way of flexibility, power and user friendliness. When evaluating CMMS software there are eight major factors that should be considered. These factors are:1.Comprehensive maintenance management functionality2.Management reporting capabilities6.Reliability centered maintenance integration7.Harness the power of Microsoft windows8.Proven expertise and on-going supportComprehensive Maintenance Management FunctionalityThe main factor to consider when selecting a CMMS is the core product. It should be made up of three major elements: Work Management, Physical Asset Management and Resource Management. The Work Management component of the CMMS optimizes day to- day operations, manages corrective work orders and supports a preventative maintenance program. In addition, some CMMSs offer and added feature for detailed management of short duration on-demand work. The Physical Asset Management component acts as the filing cabinet of the CMM, providing quick and easy retrieval of important information, warranty and service contracts, nameplate data, scanned documents, libraries of CAD drawing and complete descriptive information. After all, what good is all of the extensive information if you cannot access it easily?The Resources Management component of a CMMS supports a full inventory and purchasing system. Furthermore, it tracks in-house labour and contracted service costs. Premier CMMS suppliers have field proven experience in data transfer of inventory, purchasing, and time card information to external financial systems. A CMMS is only as good as the information that can be retrieved from it. CMMSs provide extensive management reporting capabilities that include detailed and summary report, graphical reports, and easy to use report writing tools that do not require programming knowledge. We will want to select a system pre-loaded with mechanical and building PM procedures. This PM procedure library will minimize the start up necessary to establish and implement your PM program and provide conformance to generally accepted PM inspection schedules. We should select a CMMS with tools that will assist in achieving compliance with an array of regulatory standards. To achieve compliance, premier maintenance management systems support the work flow process necessary to record, assign and account for both the work and the measures taken to correct and/or prevent maintenance related problems. Look for quick one button access to equipment histories and a flexible, detailed, and graphical reporting mechanism for problem and resolution trending (quality assurance) analysisThe type of CMMS we should be looking for should be capable of working together effectively and transparently with multiple systems. Direct interface between the CMMS and other diagnostic and monitoring systems such as building automation, predictive maintenance, etc can assist greatly in streamlining the maintenance process, by allowing maintenance personnel to respond to early warning signals before they escalate into critical repair problems. CMMS build upon these ty pes of interfaces to automatically create work orders and update facilities histories based on alarms and test result received through these interfaces. CMMSs are also capable of interfacing with other technologies such as bar coding for quick and accurate data entry. Reliability Centered Maintenance IntegrationSelect a CMMS system that fully integrates and takes advantages of Reliability Centered Maintenance (RCM). RCM uses the full capabilities of the modern PC and Microsoft Windows software development environment to provide an interactive method for problem resolution. RCM provides maintenance professional with: (1) an easy to-use library of possible problems for major capital expenditure assets, (2) problem diagnostic techniques and (3) a recommendation to repair the cause of the problem and avoid wasting money fixing its symptoms. Harness The Power of Microsoft WindowSelect a PC based CMMS solution that is compatible with Microsoft Window. Look for a CMMS design that is founded on an industry standard programming architecture like Microsoft Visual Basic, Microsoft Access, and SQL. Todays CMMS objectives are fully realizable using the Microsoft Windows environment. User-friendly, yet powerful features such as: one button access to history, pending work orders, future PMs, electronics file folders for organization information, and notification of duplicate work orders, now allows the maintenance professional to maximize time and effort. Proven Expertise And On-Going SupportRounding out the eight factors for CMMS success is the expertise and support of the CMMS suppliers. The supplier of choice should be that has field proven longevity and offers a complete suite of services to complement the software system. Services to expect include: engineering consulting, data collection, data entry, training, implementation and post implementation support. We have highlighted the eight factors we should evaluated in choose the right CMMS but before we can leave this topic we need also to briefly look at what are called Target Software Solution. These are software application targeted to very specific functions within the scope of the maintenance management process. Such task-specific application offers maintenance professional the power to address and successfully manage these often complex and involved tasks. Among the operation targeted by such software are regulatory compliance, roof inspection, space management and key-and-lock management. Task-specific software application address a range of pressing needs within facility maintenance departments, and since they focus only on one issue, the tend to do so effectively and efficiently. Before buying a task-specific program, make sure the desired function doesnt already exist in your CMMS. Review the manufactures manuals and literature and talk with all users of the system in the facility who may be more familiar with the systems intricacies. Also, consider whether a current function or module in your CMMS can duplicate the function properly and effectively. We should ensure that the initial design of the system encompassed all the major tasks that we are likely to meet and so diminishes our reliance on theses task-oriented software. They do however have a part to play in the continued evolution of the maintenance management process and technology. We will now look at the selection of the hardware to support the software. When buying a computer system they are four main components you must decide upon: the operating system, the processor, the hard disk and the amount of memory. Making a decision on these components will be either deceptively easy or nearly impossible. The decision should be guided by the type of software application you wish to use on the system. The following questions might be helpful:Will the system be used for one function or many?Will the system be a standalone or network?If networked, will it be connected to an outside system, i.e. the Internet, CompuServe, a vendor etc.?What application might you need in the near future?What standard does your company have for hardware?They are both like desk space no matter how much you have you will always use and need more. A CD-ROM is recommended even if your application doesnt require it. Most software is shipped on a CD-ROM. It is less expensive to obtain it on a CD, and the manufactures usually provide additional utilities or programs on the CD version of the software. The only way to overcome the rapidly changing, highly technical world of computers is always to get a consensus of opinions. Ask at least three vendors for three recommendations: high end, middle of the road and the least expensive. Ask for the name of the manufacture of the major components, namely:The whole system if buying a turnkey systemHard disk and type of disk controllerThe challenge for maintenance professionals is to find a hardware system that meets departments needs and support current and future software as well as possible. Implementation of a Computerized Maintenance Management SystemThe Systematic Approach to Computerized Maintenance Management is a practical strategy for designing, developing, and implementing a complete computerized maintenance management system. This comprehensive approach is comprised of two proven implementation methodologies:1.The System Approach to Maintenance Management (SAMM)2.The Computerized Maintenance Management System (CMMS) Life Cycle. These concepts have proven through practical applications in various maintenance environment, to be valuable aids to guide companies through the design and implementation of benefits-producing computerized maintenance management systems. At the core of both the SAMM and CMMS implementation Life Cycle is the concept of developing a complete system. The SAMM model is used to establish the relationship between the individual elements that comprises the complete maintenance management system. The CMMS Implementation life cycle lay out the process or series of activities to design, develop, implement, and effectively use the system. Mother theresa Persuasive EssayThe technology installation should be coordinated and micro managed to the implementation schedule. This requisite planning activity should be a collaborative effort involving the entire maintenance department. The purpose is to elicit commitment throughout the department to accomplish all implementation tasks according to a predetermined schedule. The importance of planning the system installation can not be overemphasized .the schedule should lay out the activities and allocation of resources to accomplish the following:3.Technical installation of hardware and software5.Establish (rearranging) and staffing the work control center6.Initializing the computerized work management program. Step 10 Education and Training ProgramThe education and training program should provide the answers to why, and how to use the computerized maintenance management system. The educational process that began during the second phase should continue to support the issue: why are we computerizing. The training program should be directed towards enhancing users skill. The main objective of training is to teach how to proficiently use the computer equipment and software technology. Comprehensive training will also provide input into the setting up the database schemes and assist the transition to new management procedures. Step 11 Developing the Database(s)Developing the database(s) is one of the action steps that never appear to have a distinct beginning or final ending. The reality is that the database is a dynamic medium that continually changes, usually growing with the increasing proficiency of system users. In terms of overall effort required to complete the CMMS installation, the database is generally the most resource intensive task. For this reason, consideration must be afforded to insuring that all requisite data is collected and entered into the CMMS database. Step 12 Initializing the Work Management ProgramInitializing the work management program is a comprehensive task, which completes the transition from preexisting (paper-based or semi-automated) systems to a fully computerized mode of operation. It will not happen overnight and should be conducted in phases. In other words, install one function at a time, e.g. the work order process, and get it operating to plan, before implementing the others. Work order planning and performance tracking, preventive maintenance scheduling, and maintenance-repair operation (MRO) inventory control are among the many functions often targeted for computerization. The benefits to the organization for computerizing these work control functions will be maximized through the integration of the business processes with the information technology. Process re-engineering applied to these various work management functions will accelerate the return on the investment of the CMMS. The benefits to be gained through computerization will not be achieved through the retooling of technology only. Throughout the CMMS implementation process, maintenance managers must continually rethink business practices and aim to break loose from outdated and inefficient work management routines. Thereby using the power inherent in the computer tools to enable more efficient means, of planning, scheduling, and directing maintenance efforts. The CMMS is a big investment and warrants ongoing monitoring. Facilities can get the most out of their CMMSs by using them as fully as possible, measuring the benefits they add to facility operations and using that information to continue increasing overall efficiency and savings. We will now look at some of the benefits that can result from implementing and maximizing a CMMS. Most maintenance department functions have been affected in some way by the arrivals of CMMS. Among those function affected the most are: generating work orders, tracking inventory, setting up preventative maintenance (PM) and producing reports. The CMMSs can provide can both be short- and long-term benefits. Some of these benefits are:Standardized work order will reduce time, and paper work. All information combined into a central location decrease work time. Permanent, accurate records will help reduce equipment down time. Standardized format aids organization and collection of information. Long-term benefits should be apparent through weekly and monthly production reports. These include:Parts and materials availability will be increase. Maintenance labour effectiveness will increase. More regulated preventive maintenance will increase equipment life and help to reduce emergency maintenance costs. Production saving will increase as unscheduled downtime decrease. Purchase costs of parts and materials will be reduced. Outside contract costs will be reduced. Regular report gives a more effective and up-to-date record of inventory/stores reports, work orders and physical maintenance reports, which will reduce cost of parts, inventory and labour. Reports also help increase management control. We will now look at some of these benefits in details:Currently most form of CMMS are based on forms printed out for use by the maintenance workers. Workers enter information on the forms, which is re-entered into the system after the work is finished. Because the work order contains data entered directly by the technician, it is the focal point of a CMMS. The ability to prioritize work orders so they can accommodate each facility and functions has helped maintenance department considerably. For example some CMMS can prioritize work orders for each day so that those designated, as high priorities will automatically be first on the list orders to complete. Maintenance departments, therefore can more easily discern a high-priority task from one that is routine, helping organized and improve the departments efficiency. Inventory modules on a CMMS have become especially helpful for facilities with more than one stores area. They allow the maintenance department to carefully track parts from the time they are logged in/or scanned in, in departments with bar coding capability to the time they are used. The module have been essential in helping departments set up purchasing schedules and track parts costs more carefully. Inventory modules also help streamline maintenance departments when they are linked to work order modules. I this scenario, the work order screen can display whether the parts needed for the service work are available, saving time that would be spent checking individual parts lists or going to the stores area. Also, the module can alert a facility when parts are almost gone, so parts can be reordered before they run out. This helps the maintenance department avoid extra downtime waiting for parts. Setting up preventive maintenance (PM)Maintenance departments are realizing the benefits of PM, and CMMS are essentials in helping establish such programs. The PM module reminds the maintenance department each time routine work is needs to be performed and alerts the department when a task is coming due, helping reduce the risk of missing regular maintenance work and lengthening the life of the equipment. Developers of maintenance software, who keep a close watch on the many changes that are taking place in the maintenance management profession, say that their products in the future will continue to address and anticipate the many problems related to keeping commercial and institutional facilities operating both efficiently and cost-effectively. Data that is collected by the CMMS including hours worked, failure codes, equipment and system downtime, repair costs, and repair time are been used to support operational decisions, such as reliability analysis to compare manufactures, maintenance effectiveness, and justification of outsourcing specific maintenance functions. Most regulatory agencies expect to be able to review and audit regulatory compliance through a CMMS. Not that long ago, paper records were the default standard for documentation. The latest crop of computerized maintenance management systems (CMMS) tend to reflect the general advances in software that have been occurring at an exponential rate. Five years ago, Window based program were the exception rather than the rule, and larger, multi-user systems were at best serve by mainframe or mini-systems. Todays CMMS releases are invariably 32-bits Window programs able to scale from a single-user standalone system to a 100-user client/server system. Handheld data collection units and pen-based computer transferring data to and from a central database via the Internet are readily available, and historical data is analyzed for maintenance reliability information and for management and budgetary support. Most CMMS started out as either work order management system or inventory control systems designed to be used by the maintenance the department to tract equipment/facility maintenance and to manage their spare parts inventories. In most cases manager made limited use of the historical information available. The role of CMMS system in many organizations, however, has started to transcend simply supporting the maintenance department. In many of todays CMMS implementations, significantly greater requirements are placed upon the CMMS to provide tangible benefits and information to the company. What will the next generation of CMMS bring to maintenance? Developer point to advances in ease of use, ease of integration with other applications, flexibility and speed. They also acknowledge that the rapid rise of the World Wide Web as an information resource and conduit will continue to have tremendous effects, though in concrete terms, many questions remain about precisely what shapes those development will take. Perhaps most provocatively for maintenance departments, developers say, a future generation of CMMS will go well beyond data collection, storage, retrieval and analysis. Future CMMS applications, developers say, will have the ability to learn within parameters preset by users and will be able to offer maintenance technicians a series of options in a particular situation. There is a major push a among CMMS developers to eliminate paper from the maintenance process with the next generation of software. Several developers pointed to the advent of personal digital assistants (PDAs) as an example of more accessible CMMS of the future. PDA are portable handheld computers that allow users to bring computer functionality into areas of facilities that before had not been accessible. PDAs, a well as CMMS that operate on them, will allow the technicians to more easily take work order information into the field, access this information, as well as the departments database and collect information on the project for future downloading back into the database. A soon-to-typical process might start with a telephone call from a building occupant reporting a problem, continue with an automatically generated work order prompted by the telephone call and end with a technician in the field receiving a message via pager alerting him of the reported problem. Accessing the departments CMMS through a PDA, the technician finds the work order request, complete the work and downloads the completed electronic work order back into the system all without the need for paper. The process cuts down on paper handling by creating essential data that is readily available by other software applications. The CMMS application of tomorrow will give facility executives, maintenance and engineering managers and front-line technicians an unprecedented palette of options for collecting, reconfiguring and analyzing information than ever before. Armed with this enhanced ability, as well as additional pieces of complementary technology, developer say workers will be better able to anticipate system and equipment problems, detect trouble spots, spotlight potential saving and, in the end, prepare more effective solutions to these situation. The impact of the Internet on future CMMS is hard to overestimate. This will result in:Expanded data sharing capabilities. Companies with facilities miles or even thousand of miles apart will be able to use the internet to share a wide range of data related to all aspects of operations, including such key areas as inventory and project costs. Greater access to CMMS to casual users. More companies are realizing every day that their business performance is closely related to how they manage their facilities and workplace assets. Operating expenses can be reduced at the same time real estate assets are maximized and employee productivity and the quality of worklife are enhanced. Facilities-related expenses represent most companies second-largest operation cost, next to personnel and their greatest capital asset. As companies look for opportunities to improve financial performance and competitiveness new opportunity have to be explore. Success will depend upon the ability to identify, communicate and manage opportunities to support the companys business objectives. The following processes needs to be examined:1.Monitoring how facilities are being used and managed2.Evaluating whether facilities are best serving corporate objectives3.Anticipating how facilities might better support the organization and respond to its changing needThe design/selection, development, im plementation and monitoring of a CMMS is one opportunity which companies must take advantage if they are to succeed in the dynamic business environment. The introduction of a CMMS and its monitoring and upgrade will enhance the companys competitive edge. Benchmarking, that is researching how best-in class have benefited from CMMS is a clear indicator that only those organization who implement proper CMMS will survive in the global market. It is therefore imperative that organizations that have not implemented a CMMS should investigated the feasibility of implementing a system and organization with a system should ensure that the system is operating at optimum level and upgraded as required to effective and ensure that the organization is competitive. The benefits to the organization includes:Reduce overall facility operating costsBoost productivity and product qualityImprove resource utilization enhance warranty trackingImprove analysis and decision makingBibliography: