Bottleneck and non-bottleneck work centers

Eliyahu M Goldratt’s Theory of Constraints (TOC) states that the bottleneck in a work system is the crucial constraint that must be scheduled first in order to achieve maximum system output. All efforts are to go toward scheduling the bottleneck work center, the capacity of which does not meet the demand placed on it and is less than the capacity of all other work centers. TOC uses five steps (Godratt, 1999, p. 3-6), including:Identify the bottleneck. 2. Exploit the bottleneck, maximizing its throughput by streamlining or improving processes, equipment maintenance, training, anything necessary. 3. Subordinate the throughput of all other work centers to the bottleneck. 4. Elevate the status/condition of the bottleneck with additional equipment, staffing, work hours, etc. 5. Inertia is to be avoided. Begin again with Step #1, find the new bottleneck, and continue the 5 steps.One scheduling alternative is to streamline and reduce the amount of setup time needed for the bottleneck . Another is to schedule its activity for additional hours per day and/or days per month. Further, breaks, lunchtime, and intermittent maintenance may be eliminated or rescheduled. Finally, work that does not need to go through the bottleneck can be eliminated by scheduling it to other work centers. MINPRT: Minimum Processing Time is the best scheduling rule to use in order to eliminate a bottleneck.Applying this rule, each next-scheduled job is the one that has 2 the shortest processing time. Since all scheduled jobs are then the shortest jobs, more jobs are completed more quickly so that downstream work centers do not wait for work. Non-bottleneck work centers can be scheduled to include completing their setup after the bottleneck is set up, to use them fewer hours per day and/or days per month, and to schedule them for jobs that do not need to go through the bottleneck.MINSOP: Minimum Slack time per Operation is a scheduling rule that can work well for non-bottlenecks. Using this rule, each next-scheduled job is the one that has the least slack (down) time so that production increases per hour. MINDD: Minimum Due Date may be the best option for non-bottlenecks and includes consistently scheduling the next job that is due first in order to meet due dates effectively. REFERENCES Goldratt, E. M. (December 1999). Theory of Constraints. Great Barrington, MA: North River Press.

None

The contributing factors that I found were caused for the rise of racism are â€Å"the exploitation relations that Europeans established with the peoples they conquered†, â€Å"an opposition between the colors white and black as cultural symbols was deeply rooted In European culture†, and â€Å"the Invention and diffusion of the concept of race Itself. † Today racism Isn't that big of a deal Like It was back In the colonial era, but It still can show up out of nowhere. We don't have separate water fountains, we don't make African Americans sit in the back of the bus, and we don't have laws prohibiting hem on what they can and can't do.A lot has changed from then and now and it's for the better. As we think back on how we treated African Americans I think most people can say how wrong and selfish we were. To bass some ones social status on the color of their skin is not right to any degree and the world has grown from the mistakes that happened. For my major, crim inal Justice, I will deal with many situations where someone will call me racist. It's not something that will go away because sometimes African Americans rely on It to get a point across or blame what happened on you In anyway necessary.There was a time where whites believed having black was symbolic for evil. They didn't think It was right to be a different color and wanted to blame all the wrong doings or plagues on the blacks. This resulted in the formation of the UK Klux Klan where they took African American's from their homes and hung them. They didn't have to do anything wrong per say, the whites Just believed being black was wrong. The whites wanted to make African American's feel fear so they made rules they had to follow so they â€Å"kept them in line† in a way. Racism doesn't Just focus on African Americans, it can connect with Asians, and Mexicans.Racism has exists for thousands of years and I feel it will never disappear because of how parents raise their childr en to believe what they were taught growing up. Parents telling their kids that blacks are bad and they always get into trouble Isn't something you want to teach them. Everyone Is different and Like some say â€Å"you can't Judge a book by Its cover†. I also don't feel Its right to tell your kids that the police are bad people who just want to hurt you. That's not true at all so to tell your kids straight if the bat that things are set this way and you should follow this, wont help them have an open mind.Immigration is always a big deal with the whole process to become a U. S. Citizen. Immigrants are viewed as people coming to steal their jobs because the Jobs that they usually go for are minimum wage and no benefits. It's usually Mexicans who come into the U. S. And find low paying Jobs and they usually work very hard for the little money they make. Like I said before, police officers have to deal with being called a racist almost every day because they have to use force or arrest someone for a warrant.Having to e that guy to put up with It Is harder because even though you've gone through It so many times and Just want to say â€Å"I'm not racist† Just wont cut It. Police officers are doing their job and if you happen to be African American or Asian then that's the way Being young and going to school as the only African American can be tough for some if their parents taught them blacks are bad like in the colonial days. It can also be because of the area you live in, such as more whites to blacks. The way people view each other and Judge the way they look will never change, but there's always something you can do to stop it. None The contributing factors that I found were caused for the rise of racism are â€Å"the exploitation relations that Europeans established with the peoples they conquered†, â€Å"an opposition between the colors white and black as cultural symbols was deeply rooted In European culture†, and â€Å"the Invention and diffusion of the concept of race Itself. † Today racism Isn't that big of a deal Like It was back In the colonial era, but It still can show up out of nowhere. We don't have separate water fountains, we don't make African Americans sit in the back of the bus, and we don't have laws prohibiting hem on what they can and can't do.A lot has changed from then and now and it's for the better. As we think back on how we treated African Americans I think most people can say how wrong and selfish we were. To bass some ones social status on the color of their skin is not right to any degree and the world has grown from the mistakes that happened. For my major, crim inal Justice, I will deal with many situations where someone will call me racist. It's not something that will go away because sometimes African Americans rely on It to get a point across or blame what happened on you In anyway necessary.There was a time where whites believed having black was symbolic for evil. They didn't think It was right to be a different color and wanted to blame all the wrong doings or plagues on the blacks. This resulted in the formation of the UK Klux Klan where they took African American's from their homes and hung them. They didn't have to do anything wrong per say, the whites Just believed being black was wrong. The whites wanted to make African American's feel fear so they made rules they had to follow so they â€Å"kept them in line† in a way. Racism doesn't Just focus on African Americans, it can connect with Asians, and Mexicans.Racism has exists for thousands of years and I feel it will never disappear because of how parents raise their childr en to believe what they were taught growing up. Parents telling their kids that blacks are bad and they always get into trouble Isn't something you want to teach them. Everyone Is different and Like some say â€Å"you can't Judge a book by Its cover†. I also don't feel Its right to tell your kids that the police are bad people who just want to hurt you. That's not true at all so to tell your kids straight if the bat that things are set this way and you should follow this, wont help them have an open mind.Immigration is always a big deal with the whole process to become a U. S. Citizen. Immigrants are viewed as people coming to steal their jobs because the Jobs that they usually go for are minimum wage and no benefits. It's usually Mexicans who come into the U. S. And find low paying Jobs and they usually work very hard for the little money they make. Like I said before, police officers have to deal with being called a racist almost every day because they have to use force or arrest someone for a warrant.Having to e that guy to put up with It Is harder because even though you've gone through It so many times and Just want to say â€Å"I'm not racist† Just wont cut It. Police officers are doing their job and if you happen to be African American or Asian then that's the way Being young and going to school as the only African American can be tough for some if their parents taught them blacks are bad like in the colonial days. It can also be because of the area you live in, such as more whites to blacks. The way people view each other and Judge the way they look will never change, but there's always something you can do to stop it.

Morals and Values: To Kill A MockingBird Essay

Have you ever faced a difficult decision? Every day, we have to make decisions. Some of these decisions can be simple, but others can raise moral or ethical dilemmas. How does one go about making these moral or ethical decisions? People have value systems that can influence the moral or ethical decisions they make. This is clearly illustrated in the book Of Mice and Men, by John Steinbeck, through the main character, George Milton and his interaction with his companion, Lennie. Steinbeck shows how George’s value system influences his moral and ethical decisions when George shows his care for Lennie, when he helps Lennie resolve his conflicts with other people, and when Lennie kills Curley’s wife. Steinbeck shows that George values companionship. It is shown throughout the story that George values companionship but at the same time, he wants his freedom. However, he cannot have his freedom because he has Lennie to take care of, but George doesn’t mind having Lennie and wants Lennie to stay with him no matter how much trouble Lennie gets into because Lennie gives him companionship. An example is when George gets mad at Lennie and tells Lennie the â€Å"swell time† he can have without him and Lennie responds, â€Å"George, you want I should go away and leave ya alone †¦ I could go off in the hills there. Some place I’d find a cave† (pg. 13). Ethically, since Lennie is an adult, George could have let Lennie leave so that George would his freedom to â€Å"stay in a cathouse, eat any place [he] wants, get a gallon of whisky, or set in a pool room and play cards or shoot pool† (pg. 12). However, George feels that he is morally responsible for Lennie, and says, â€Å"Yeah? How’d you eat? You ain’t got sense enough to find nothing to eat †¦ No-look! I was jus’ foolin’ Lennie. ‘Cause I want you to stay with me †¦ Tell you what I’ll do, Lennie. First chance I get, I’ll give you a pup (pg. 14)†. Steinbeck also shows that George has the values of being responsible and loyal to Lennie. The story is set at a ranch where the boss’s son, Curley and Curley’s wife reside. Curley is a short man who likes trying to pick up fights with other people that are bigger and stronger than him and is extremely protective of his wife. Curley’s wife is a lon ely woman who tries to seek company by talking to the farm workers. An example of George being responsible is when Curley is looking for his wife and the other men working on the ranch make fun of him because they despise him. However, when Curley sees that Lennie is smiling, because he is dreaming about rabbits, he thinks that Lennie is making fun of him, so he gets angry. Curley shouts to Lennie, â€Å"Come on, ya big bastard. Get up on your feet. No big son-of-a-bitch is gonna laugh at me. I’ll show ya who’s yella. †¦ Lennie looked helplessly at George†¦ George was on his feet yelling, Get him, Lennie. Don’t let him do it. Get ’im, Lennie† (pg. 61-62). George here is being responsible as a person to Lennie because he is telling Lennie how to protect himself and make sure that Lennie doesn’t get injured too much. Also, George is, in a way, obligated to take care of Lennie because of George’s promise. George made a promise to Lennie’s Aunt Clara before she died that he would take care of Lennie and George, who is loyal, does just that. George’s ethical decision is to protect Lennie from harm and tell him what to do because he knows that that the right thing to do. Towards the end of the book, Steinbeck shows that George has the value ofcaring when it comes to doing the right thing for Lennie. George knows that the task of killing Lennie is difficult and has to find inner strength to do it. There are many similarities between Candy, a friend of George and Lennie, and his dog and George and Lennie. Candy’s dog has stiff joints, very old, and because he stinks so bad, he is troublesome to others. Candy said that, â€Å"I been around him so much I never notice how he stinks.† Candy has been around his dog so much that he is used to the smell so therefore, he doesn’t notice it and because he is used to his dog being around he won’t be able to kill his dog. Similarly, Lennie can be a nuisance to George because he is constantly getting into trouble. And when Slim asks why George still has him, George says, â€Å"†¦you get used to goin’ around with a guy an’ you can’t get rid of him†. Like Candy and his dog, George has been with George for too long that now simply they are used to each other. Candy had to let his dog go because it was best for the dog. However, he let someone else kill his dog and Candy later tells George, â€Å"I ought to of shot that dog myself George. I shouldn’t ought to of let no stranger shoot my dog.†George on the other hand, didn’t want anyone to hurt Lennie and knew that he must kill Lennie himself. The ethical decision here is that it is wrong to kill someone and technically, George is breaking the law. The moral part in George’s decision is that if George doesn’t kill him, then Lennie will be tortured and man-slaughtered by Curley. Also, George makes sure that Lennie dies in happiness by having him first think about the plan of getting a farm and tending to rabbits before George kills Lennie. Steinbeck portrays George as a person who has values defines who he is. Steinbeck had shown that George values companionship, responsibility, and loyalty while he fosters Lennie. Steinbeck shows how George’s value system influences George’s moral and ethical decisions when George shows his care for Lennie, when Lennie faces or gets into conflict with other people, and when Lennie kills Curley’s wife.

The effectiveness of Chemical Compounds in Brassica vegetables in the Essay

The effectiveness of Chemical Compounds in Brassica vegetables in the Prevention of Colorectal Cancer - Essay Example The chemical compounds in vegetables known to treat and prevent cancer include phytochemicals, isoprenoids and pigments (Govind & Madhuri, 2011). Vegetable pigments in particular – flavonoids, carotenoids and anthocyanins – are the main chemical components of Brassica vegetables, the group of vegetables known to significantly prevent the occurrence of one of the deadliest cancers in the body – colorectal cancer (Cartea et al. 251). In fact, according to the Centers for Disease Control and Prevention, colorectal cancer is the second leading cancer killer in the United States, after lung cancer and preceding breast cancer (â€Å"Colorectal Cancer,† 2011). The antioxidant properties of various chemicals called flavonoids in Brassica vegetables prevent colon cancer as well as other forms of cancer, thus there is a need to take a closer look at these chemicals. Chemicals in Brassica Vegetables and their Benefits in Colorectal Cancer Prevention The over 3,500 sp ecies of Brassica or cruciferous vegetables include those from the family Brassicaceae or Cruciferae – kale, cabbage, broccoli, cauliflower, Brussels sprouts, Chinese cabbage, turnip, oilseed, and mustard (Cartea et al., 2011). These vegetables contain a number of chemicals such as vitamins, fiber, soluble sugars, minerals, carotenoids, glucosinolates, minerals and most of all, phenolic compounds (Cartea et al., 2011). Additionally, folic acid and selenium may also be present (Kumar & Andy, 2011). It is, however, the phenolics that account for the anti-cancer properties of Brassica vegetables (Cartea et al., 2011). There are around 8,000 naturally-occurring phenolic compounds with at least one aromatic ring and one or more hydroxyl groups attached to it (Cartea et al., 2011). Among the most widespread of the phenolics are the flavonoids, which contain 15 carbons with two aromatic rings connected by a three-carbon bridge (Cartea et al., 2011). The flavonoids act as scavengers of free radicals and inhibit hydrolytic and oxidative enzymes (Kumar & Andy, 2011). The free radicals eliminated by flavonoids include hydroxyl radicals, superoxide anion radicals and lipid peroxy radicals (Kumar & Andy, 2011). These radicals rob the body of the oxygen needed to promote a cancer-free internal environment. Moreover, flavonoids are also anti-inflammatory (Kumar & Andy, 2011). Flavonoids reduce the number of immobilized leucocytes that result from injury to the tissues during a disease, which then leads to decrease in total serum complement – a mechanism associated with a reduction in inflammation of the tissue (Nijveldt et al., 2001). The most widespread type of flavonoids are the flavonols and it is this particular subtype that is particularly the anti-cancer components of Brassica vegetables (Cartea, et al., 2011). The most common of the flavonols are quercetin and kaempferol, which are richest in amount in the leaves (Cartea et al., 2011). More specifically, quercetin, which is also found in French bean and red and yellow piyaz, has been known for its anticarcinogenic properties (Govind & Madhuri, 2011). Figure 1. Quercetin (http://www.3dchem.com/molecules.asp?ID=445) Figure 2. Kaempferol (http://upload.wikimedia.org/wikipedia/commons/1/1c/Kaempferol.png) Among the Brassica vegetables, it is red cabbage that has the highest antioxidant content and this is closely followed by green cabbage, mustard

Culture and Technology Essay Example | Topics and Well Written Essays - 1500 words

Culture and Technology - Essay Example In a book of Lederach J. P. (1995) says, "Culture is the shared knowledge and schemes created by a set of people perceiving, interpreting, expressing and responding to the social realities around them." People wakeup, take breakfast and go to their offices for work. In the evening they came back take rest, enjoy with family, go out to refresh their minds, have dinner and sleep at nights. The next day they do the same with slightly ups and down. So this is a culture of mankind community to eat, work, enjoy and sleep on daily basis. Changing this culture is impossible. Now if we take an example of an Accountant who daily writes hundreds of ledger pages using pen and paper giving pain to his fingers and stress on mind in hours now can do all this using a technology named as Computer, in few minutes through few clicks. Technology is increasing and updating in day by day. Abacus gives rise to Computer. Computer get advance gave rise to a technology known as Internet. Internet is used to communicate the world from one end to another. Not only this, but there are many uploaded free books and libraries that makes studies more comfortable and enhanced. Computer and major Internet becomes part of daily lives. Instead of having big expensive machines, people start buying personal computers. Computers get to be in reasonable price and technology rises to home to home. Internet starts being part of students, professionals and every field of man's life. The technology raised and internet and computer starts playing important role in business and large organization which tends people carry their work with them and Laptops or mini computers on mobile are evolved. Carrying laptops from one place to another was getting difficult, as laptops are expensive and a doubt to get theft increased. Tough technology with these thoughts researched and developed a Remote Computer. A Computer now can be operated via Internet anywhere. This technology is simple but allows you to access your business computer in office from home or computer at your home from far seven seas away. Windows XP as its component also introduced remote Computer. But it flopped at the time of low bandwidth Internet or Windows 95 and Windows XP difference. Development and Implementation Remote Installation Services uses different techniques to install and compile the remote computer for the use on different computers. RIS uses network communication while the remote sharing of computer. The network infrastructure should be slid so that it allows easily downloading the material from one end to another. Besides network, RIS uses special image transferring API's. Different Images heavy or light handled by RIS. Though after activation of RIS on computers a restart is required so that all setting gets fixed up while booting the computer. RIS allows client and server to communicate through images and commands. The continuous exchange of requests and responses allows the remote sharing. The architecture of Remote Sharing can be explained in a manner that client logs in to the network and uses its IP address. RIS helps to transfer the request to server. Serve accomplish the request and take image and send back to the client. The RIS on client computer receives the image and shows up. Clients move the mouse on its own computer desktop or do any other action the

Special Interest Story Essay Example | Topics and Well Written Essays - 1000 words

Special Interest Story - Essay Example ct also bears the name ObamaCare 2010, and it is an implemented health care policy that looks forward to drive the American health care system into the public sphere. This means that the former system of private the health care system transforms towards a public system under the drive of the government. At this point the government will bear the obligation of running and financing the entire health care system. This Health Care policy became law on March 2010 through president Obama’s approval. The introduction of this Act has triggered vast debates form analysts who differ in positive and positive effects that will be inflicted by the Act to the people of US and to the country’s economy (ObamaCare Facts 1). Among the pros exhibited by the Act is that it will positively improve the lives of American citizens by granting affordable health care services to people who previously lacked the privilege of affording medical care due to their low social status. The Act will also initiate laws that ensure adult children of ages up to 26 acquire affordable Medicare services under their parents’ policies (Cannon 1). Moreover, the Act enhances improvements in care delivery and payment system by ensuring that each American citizen possesses a medical insurance. The Act will also foresee that the government monitors medical insurance companies; thus, ensuring that patients with pre-existing conditions do not undergo oppression from insurers who force them to pay high premiums (Cannon 1). In addition, women will acquire the most privilege because the Act allows them to access free health care services and visits from social health care workers. Prior to the fore-mentioned advantages, other analysts seem to disagree with the presented facts that greatly benefits the American citizens irrespective of their social status. These opposing analysts argue that in order for the government to acquire the money that will insure billions of Americans, it will inflict new taxes to

Study skils (multimedia technology) Essay Example | Topics and Well Written Essays - 1500 words

Study skils (multimedia technology) - Essay Example Television is a highly accessible media for public consumption, reaching millions of viewers in the UK alone. Producers of television programmes, and in particularly of commercial advertisements, must be highly aware of the potential for the distortion of their messages in order to most efficaciously counter the distortive effects. They do so by making use of visual and auditory queues in many cases, which guide viewers toward the intended understanding. These queues may be derived by research into current social trends, psychological research, or other evolved responses. Advertisers frequently make use of more subtle queues, with the intent of changing public opinion in favour of their particular products or services. Several techniques are utilised by the producers of television programming and advertisements. Musical queues are ubiquitous, as it has been well established that particular musical queues will inspire particular feelings or thoughts in the individual listening. In con junction with imagery, musical choices can have a profound impact on the way that individuals decode the information being presented. Imagery is carefully constructed by the producers of television as well. ... Advertisers are particularly skilled in the use of subtle imagery, designed to engage the emotions of an audience while bypassing their higher cognitive functions. We know, for example, that we do not actually need many items presented in advertisements to survive or thrive, but shrewd advertisers inspire us, on an emotional level, to accept the notion that our happiness or well-being are somehow linked to the product or service presented. Our higher thought processes are largely circumvented by the imagery and musical queues presented to us, so that we end up feeling that we have some personal investment in procurement of the services or products being sold. Producers of television programmes similarly inject particular messaging into their programming, dependant upon the desired effect in the viewer. The portrayal of minority individuals in accordance with stereotypes in order to generate either sympathy or antipathy toward members of that group. While this is established within th e context of the particular programme, these feelings frequently translate to real life, especially when the same images and ideas are portrayed frequently and in different

Enrolling at the Florida State College at Jacsonville Essay

Enrolling at the Florida State College at Jacsonville - Essay Example According to the research findings, it can, therefore, be said that   FSCJ takes advising and counseling as a serious commitment. Curriculum advising is done to assist students in achieving their academic goals, whereas counseling works to guide students in their personal concerns such as dealing with traumas or crises, coping with stress and problems, and surviving difficulties brought about by unplanned pregnancy, family conflict, and so on. Students may avail of advising and counseling support by calling in the Counseling/Advising office and securing an appointment. To ensure taking the right steps in their studies, students should are assigned to an academic advisor who will advise them what classes to take especially for the first term. Students should know their advisor’s name and schedule and should visit their advisors not only during enrollment. A strong rapport is encouraged between advisors and advisees especially for those who are working because they need to inf orm their advisor of their own work schedules. In addition, when talking with the advisor, students should note down the important information they are given. It is also preferable to jot down questions one needs to ask before attending the advising session to facilitate addressing the issues that need to be addressed. On the aspect of counseling, professors may also refer students for counseling if they feel the need to. Further counseling, which may need the help of out-of-school professionals, may likewise be provided to students who demonstrate such need. Providers of counseling service may include the members of the community such as churches, youth centers, and health clinics. Students who are looking for lodging houses and laundry services may likewise seek help from the counseling office because the latter maintains contact with some establishments within Jacksonville. However, such referrals may cost more than what a friend can provide.

Second (2nd) narrow bridge collapse Essay Example | Topics and Well Written Essays - 2500 words

Second (2nd) narrow bridge collapse - Essay Example The cause of accidents in the construction of bridges has been attributed mainly to the error committed during the project design. The errors are caused by negligence in the side of the contractors. The fatalities in the construction industry are caused by failure to comply with the industry’s safety and health guidelines. It is important to adhere to safety and health directives and guidelines to avert future disasters such as the second narrow bridge accident. Wienand and Zunde (147-158) confirmed that the second narrow bridge was made of steel metals, timber and reinforced concrete. According to Akesson (124), the construction of new highway bridge in British Columbia began in November 1957. The second narrow bridge had six lanes and was a continuous truss bridge (in all 1992 meter long) with the main 335-navigation span. It was also a cantilever construction having two anchor spans, (142 m each). The second narrow bridge had lanes specifically for the pedestrians and bicycles. It was the second bridge constructed at the Second (east) Narrows of Burrard Inlet in Vancouver, British Columbia, Canada. It was named the Second Narrows Bridge as it connects Vancouver to the north shore of Burrard Inlet, which includes the District of North Vancouver, the City of North Vancouver, and West Vancouver. It was constructed adjacent to the older Second Narrows Bridge, which is currently an exclusively rail bridge. The bridge was a steel truss cantile ver bridge, designed by Swan Wooster Engineering Co. Ltd. On June 17, 1958, the north anchor span through failure of the temporary truss, collapsed without warning and caused death of the sixteen workers and two engineers. Akesson (125) said that on the fateful afternoon of June 17, 1958, the crane was stretched to join the two chords of the arch that was under construction from the north side of the new bridge. Just before

The British Prime Minister Essay Example | Topics and Well Written Essays - 1250 words

The British Prime Minister - Essay Example Apart from that, he also has patronage elsewhere such as the appointment of junior ministers The Prime Minister also chairs a number of select committees; at present the Defence and Overseas Policy Committee, the Constitutional Reform Committee, the Intelligence Services Committee and the Northern Ireland Committee. In these committees the Prime Minister has to be very influential in the determining of policies in these committees. Another function of the Prime Minister is to represent the country internationally. The queen is Britain's head of state, but the Prime Minister is Britain's de facto representative abroad. Political instinct alone seems to dictate the American president as 'the world's most powerful man' in the sense that most powerful politician in any of the world's democratic nations. He heads the world's most modern military force and the world's largest economy. In America, the president is the best known among politicians. This by itself gives him a great deal of authority as many people within their own states cannot name their own representatives in the House, Senate or governor. The title of president gives him enormous authority and power as he is the main figurehead within the whole of the massive American political structure. The British Prime Minister, in comparison, does have the same international standing as the president. In the crisis involving Iraq, the driving force behind any move against the leadership in Baghdad has been the American president, George Bush, while the British Prime Minister, Tony Blair has been referred to as clinging onto the coat tails of Bush. Britain simply does not seem to have the international standing to overtly influence policies. Such a position does not allow the Prime Minister to drive an international agenda which the US president is capable of. In this sense, the power of the US president abroad is far greater than that of the British Prime Minister. Taking domestic politics into picture, it is pretty much a reverse case scenario. Although the president can select his own cabinet with which he can work, it has to be ratified by the Senate but it does not necessarily mean that the president might have to work with people he did not initially select for his cabinet. The Prime Minister on the other hand, has no such restrictions. He selects all those people he wants for his cabinet and can remove them if they fail to satisfy his expectations and standards. He does not require consultation and approval from anybody over this though he might discuss it with an inner circle of very close colleagues. Least of all does the Prime Minister have to have his cabinet agreed to be the House of Commons or Lords. The president is not head of his party. The British Prime Minister is not only prime minister; he is also a serving Member of Parliament and head of his party. As such, he commands huge respect within that party and does a great deal to drive the policies of that party in power. With a large parliamentary majority, it is almost certain that prime ministerial policies will eventually become the actual policy and law. He is

A Policy Change in Solstice Sleep Products (SSP) Essay

A Policy Change in Solstice Sleep Products (SSP) - Essay Example Further, the impact of the new policy on various management functions will be evaluated before concluding with potential benefits of the policy. At SSP, the management levies greater importance to customer service but pays little attention to human resource management. This imbalance can be regarded as the cause for much dissatisfaction among workers and constant conflicts between management and workers. Workers perform their duties as per their supervisors’ instructions, which usually vary on a daily basis. A few of them work overtime on a continuous basis; these workers usually work overtime to earn some extra income as the worker incomes are not up to the mark considering the nature of their job and the pace of business growth. Imbalanced work allocation, extended working hours, and low wages are also causing increased stress, frustration and low motivation among workers. In order to improve the situation and bring about the harmonious working condition, it is important to change the way management has been functioning. Numerous measures would be required for effective human resources management, which may be difficult to implement at once; however, one significant change that could address many issues is the introduction of an effective performance management system. A new policy that could be of great benefit for SSP is the introduction of a comprehensive performance management system can be of great significance for the business as well as the management and workers. Performance management system can be used to measure productivity on a daily, weekly, monthly and yearly basis. Moreover, individuals’ current and past performance can be used as the basis for their career progression, which will ensure that the supervisors and team leaders are well versed with the work being performed. Moreover, good performers can be encouraged for taking up additional responsibilities like training, supervision, guidance etc, which will not only improve the w orkers’ motivation but also help in building trust in management’s decision. The performance management system should include appraisal systems that need to be conducted half-yearly and annually for deciding pay hikes for the workers. Performance management system should also include rewards and recognition for the top performing workers and a feedback mechanism for the underperforming workers to improve. If promotions and career progression are linked with performance, it would be of great value to the business and to the workers. A comprehensive performance management will have a significant impact on various management functions in the long run, as well as has the capability to show its immediate impact. For instance, a number of workers required for a specific activity can be assessed by studying workers’ performance and productivity. Moreover, staff can be planned as per work volume or production demand if we can assess each worker’s ability. Dependi ng upon the time taken to perform each activity, targets and expectations can be set, thereby avoiding the need for extended working hours. Based on the skills and efficiency of workers, work can be organized into various different units, from simpler tasks to complex ones.  

Business Environment Essay Example for Free

Business Environment Essay 1. Aim: The aim of this unit is to give learners an understanding of individual and group behaviour in organisations and to examine current theories and their application in managing behaviour in the workplace. 2. Unit abstract: This unit focuses on the behaviour of individuals and groups within organisations. It explores the links between the structure and culture of organisations and how these interact and influence the behaviour of the workforce. The structure of a large multi-national company with thousands of employees worldwide will be very different from a small local business with 20 employees. The way in which an organisation structures and organises its workforce will impact on the culture that develops within the organisation. This system of shared values and beliefs will determine and shape the accepted patterns of behaviour of an organisations workforce. The culture in organisations that differ in size, for example, or are from different sectors of the economy can be very different. The structure and culture of an organisation are key factors which contribute to motivating the workforce at all levels of the organisation. The Japanese were instrumental in developing a culture of ‘continuous improvement through teamwork’ in their manufacturing industry. This culture has now been exported around the world and encapsulates the way in which structure and culture contribute to patterns of behaviour in the workplace. This unit will develop learner understanding of the behaviour of people within organisations and of the significance that organisational design has on shaping that behaviour.

Analysis of Indias Automobile Industry

Analysis of Indias Automobile Industry Following Indias growing openness, the arrival of new and existing models, easy availability of finance at relatively low rate of interest and price discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the Indian automobile industry. The data obtained from ministry of commerce and industry, shows high growth obtained since 2001- 02 in automobile production continuing in the first three quarters of the 2004-05. Annual growth was 16.0 per cent in April-December, 2004; the growth rate in 2003-04 was 15.1 per cent The automobile industry grew at a compound annual growth rate (CAGR) of 22 per cent between 1992 and 1997. With investment exceeding Rs. 50,000 crore, the turnover of the automobile industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component sector, the automotive industrys turnover, which was above Rs. 84,000 crore in 2002-03, is estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 b illion) in 2003-04. Automobile Dealers Network in India. In terms of Car dealer networks and authorized service stations, Maruti leads the pack with Dealer networks and workshops across the country. The other leading automobile manufacturers are also trying to cope up and are opening their service stations and dealer workshops in all the metros and major cities of the country. Dealers offer varying kind of discount of finances who in turn pass it on to the customers in the form of reduced interest rates. Major Manufacturers in Automobile Industry Maruti Udyog Ltd. General Motors India Ford India Ltd. Eicher Motors Bajaj Auto Daewoo Motors India Hero Motors Hindustan Motors Hyundai Motor India Ltd. Royal Enfield Motors Telco TVS Motors DC Designs Swaraj Mazda Ltd Government has liberalized the norms for foreign investment and import of technology and that appears to have benefited the automobile sector. The production of total vehicles increased from 4.2 million in 1998- 99 to 7.3 million in 2003-04. It is likely that the production of such vehicles will exceed 10 million in the next couple of years. The industry has adopted the global standards and this was manifested in the increasing exports of the sector. After a temporary slump during 1998- 99 and 1999-00, such exports registered robust growth rates of well over 50 per cent in 2002-03 and 2003-04 each to exceed two and- a-half times the export figure for 2001-02. The Key Factors Behind This Upswing Sales incentives, introduction of new models as well as variants coupled with easy availability of low cost finance with comfortable repayment options continued to drive demand and sales of automobiles during the first two quarters of the current year. The risk of an increase in the interest rates, the impact of delayed monsoons on rural demand, and increase in the costs of inputs such as steel are the key concerns for the players in the industry. As the players continue to introduce new models and variants, the competition may intensify further. The ability of the players to contain costs and focus on exports will be critical for the performance of their respective companies. LITERATURE REVIEW As noted by NMCC (2006), competitiveness of manufacturing sector is a very broad Multi-dimensional concept that embraces numerous aspects such as price, quality, Productivity, Efficiency and macro-economic environment. The OECD definition of Competitiveness, which is most widely quoted, also considers employment and sustainability, while being exposed to international competition, as features pertaining to competitiveness. There are numerous studies on auto industry in India, published by industry associations, consultancy organisations, research bodies and peer-reviewed journals. In this section, various studies on the Indian auto industry are reviewed, under different heads pertaining to competitiveness, namely, global comparisons, policy environment and evolution of the Indian auto industry, productivity, aspects related to supply-chain and industrial structure and technology and other aspects. Global Comparisons The Investment Information and Credit Rating Agency of India (ICRA, 2003) studies the competitiveness of the Indian auto industry, by global comparisons of macro environment, policies and cost structure. This has a detailed account on the evolution of the global auto industry. The United States was the first major player from 1900 to 1960, after which Japan took its place as the cost-efficient leader. Cost efficiency being the only real means in as mature an industry as automobiles to retain or improve market share, global auto manufacturers have been sourcing from the developing countries. India and China have emerged as favourite destinations for the first-tier OEMs since late 1980s.There are only a few dominant Indian OEMs, while the number of OEMs is very large in China (122 car manufacturers and 120 motorcycle manufacturers). According to this study, the major advantage of the Indian economy is educated and skilled workforce with knowledge of English. Our disadvantages include p oor infrastructure, complicated tax structure, inflexible labour laws, inter-state policy differences and inconsistencies. The drivers of Chinese economic growth are FDI, labour productivity growth, which was 1.5 times higher than that in India in the last decade, and domestic demand. Fiscal pressure is mounting on the Chinese government, while India is in a better state. Based on comparisons of cost composition to pinpoint the areas in which the Indian auto industry is at a disadvantage, this study recommends a VAT regime, speedy procedures, imports duty cuts on raw materials, common testing and design facility, labour reforms, up gradation of design and engineering capabilities and brand building. ICRA (2004a) analyses the implications of the India-ASEAN5 Free Trade Agreements for the Indian automotive industry. ASEAN economies are globally more integrated than India. The current size of Indian and ASEAN market for automobiles is more or less the same but the Indian market has a larger growth potential than the ASEAN market due to the low level of penetration. The labour cost is low in India but the stringent labour regulations erode this advantage. The level of infrastructure is better in India than Indonesia and the Philippines but worse than that in other ASEAN countries. The financial and banking sector is better in India than in the ASEAN countries. The study notes that there is a huge excess capacity in ASEAN countries, in comparison with that in India, which will help them to tackle the excess demand that may arise in future. The study finds a 20-30 per cent cost disadvantage for Indian companies on account of taxation and infrastructure and 5-20 per cent labour cost ad vantage over comparable ASEAN-member-based companies. Similar findings are noted in a study by the Automotive Component Manufacturers Association of India (ACMA, 2004), particularly in comparison with Thailand. ICRA (2004b) analyses the impact of Preferential Trade Agreement (PTA) with MERCOSUR on the automobile sector in India. This study finds a significant threat of imports in sub-compact and compact cars and certain auto-components. There is huge excess capacity and intense competition in MERCOSUR countries, propelling them to look for export opportunities. This is true especially of Brazil, which has a well developed auto-component sector with huge economies of scale. Further, weak currency in all MERCOSUR countries provides a natural tariff barrier. In addition, MERCOSUR countries have an equitable arrangement within themselves to have a balanced trade, with fair level of exports and imports. The Indian auto industry could gain from this PTA with MERCOSUR only if it is assured of the balanced trade, as MERCOSUR countries practise among themselves. ICRA (2005) studies the possible impact of FTA with South Africa on the Indian automobile industry. The study finds that there are a few policies in South Africa that indirectly subsidise the auto industry, unlike India, in terms of financial grants. Hence it is suggested that India could minimise losses only if it goes for inclusion of certain auto components, which involve huge logistic costs of imports, creating a natural protection (for example, stampings, glass, seats, plastics and tyres) and those in which India enjoys economies of scale and is cost-competitive (e.g. castings and forgings) in this FTA. If South Africa is ready to discontinue the schemes such as Motor Industry Development Programme (MIDP), India could include all automotive components in this FTA. There should be a minimum local content of 60 per cent and the agreement should not be trade balancing as India will not gain much in that case. Policy Environment and Evolution of Indian Auto Industry In this section, studies on the policy environment pertaining to the Indian auto industry and its evolution over the years have been reviewed. Pingle (2000) reviews the policy framework of Indias automobile industry and its impact on its growth. While the ties between bureaucrats and the managers of state-owned enterprises played a positive role especially since the late 1980s, ties between politicians and industrialists and between politicians and labour leaders have impeded the growth. The first phase of 1940s and 1950s was characterised by socialist ideology and vested interests, resulting in protection to the domestic auto industry and entry barriers for foreign firms. There was a good relationship between politicians and industrialists in this phase, but bureaucrats played little role. Development of ancillaries segment as recommended by the L.K. Jha Committee report in 1960 was a major event that took place towards the end of this phase. During the second phase of rules, regulations and politics, many political developments and economic problems affected the auto industry, especially passenger cars segment, in the 196 0s and 1970s. Though politicians picked winners and losers mainly by licensing production, this situation changed with oil crises and other related political and macro-economic constraints. The third phase starting in the early 1980s was characterised by delicensing, liberalisation and opening up of FDI in the auto sector. These policies resulted in the establishment of new LCV manufacturers (for example, Swaraj Mazda, DCM Toyota) and passenger car manufacturers.7 All these developments led to structural changes in the Indian auto industry. Pingle argues that state intervention and ownership need not imply poor results and performance, as demonstrated by Maruti Udyog Limited (MUL). Further, the noncontractual relations between bureaucrats and MUL dictated most of the policies in the 1980s, which were biased towards passenger cars and MUL in particular. However, DCosta (2002) argues that MULs success is not particularly attributable to the support from bureaucrats. Rather, any firm that is as good as MUL in terms of scale economies, first-comer advantage, affordability, product novelty, consumer choice, financing schemes and extensive servicing networks would have performed as well, even in the absence of bureaucratic support. DCosta has other criticisms about Pingle (2000). The major shortcoming of Pingles study is that it ignores the issues related to sectorspecific technologies and regional differences across the country. Piplai (2001) examines the effects of liberalisation on the Indian vehicle industry, in terms of production, marketing, export, technology tie-up, product upgradation and profitability. Till the 1940s, the Indian auto industry was non-existent, since automobile were imported from General Motors and Ford. In early 1940s, Hindustan Motors and Premier Auto started, by importing know-how from General Motors and Fiat respectively. Since the 1950s, a few other companies entered the market for two-wheelers and commercial vehicles. However, most of them either imported or indigenously produced auto-components, till the mid-1950s, when India had launched import substitution programme, thereby resulting in a distinctly separate auto-component sector. Due to the high degree of regulation and protection in the 1970s and 1980s, the reforms in the early 1990s had led to a boom in the auto industry till 1996, but the response of the industry in terms of massive expansion of capacities and entry of multinationals led to an acute over-capacity. Intense competition had led to price wars and aggressive cost-cutting measures including layoffs and large-scale retrenchment. While Indian companies started focusing on the price-sensitive commercially used vehicles, foreign companies continued utilizing their expertise on technology-intensive vehicles for individual and corporate uses. Thus, Piplai concludes that vehicle industry has not gained much from the reforms, other than being thrusted upon a high degree of unsustainable competition. In August 2006, a Draft of Automotive Mission Plan Statement prepared in consultation with the industry was released by the Ministry of Heavy Industries and Public Enterprises. This was finally released as a report in December 2006. This document draws an action plan to take the turnover of the automotive industry in India to US$145 billion by 2016, accounting for more than 10 per cent of the GDP and providing additional employment to 25 million peo ple, by 2016. A special emphasis is laid on small cars, MUVs, two-wheelers and auto-components. Measures suggested include setting up of a National Auto Institute, streamlining government/educational/research institutions to the needs of the auto industry, upgrading infrastructure, considering changes in duty structure and fiscal incentives for RD. Similarly, NMCC (2006), which lays down a national strategy for manufacturing, recognises the importance of the Indian automobile and auto-component industry, particularly the latter, as a competitive knowledge-based industry with immense employment generation potential. McKinsey (2005) predicts the growth potential of India-based automotive component manufacturing at around 500 per cent, from 2005 to 2015. This report describes the initiatives required from industry players, the Government and the ACMA to capture this potential. This study was based on interviews and workshops with 20 suppliers and 7 OEMs and survey with ACMA members. Increase in cost pressures on OEMs in developed countries, coupled with the emergence of skilled, cost-competitive suppliers in Low Cost Countries (LCCs), is likely to facilitate further acceleration of sourcing of automotive components from LCCs. The analysis identifies strong engineering skills and an emerging culture of cost-competitiveness as the major strengths of the Indian auto component sector, while its weaknesses include slow growth in domestic demand and structural disadvantages such as power tariffs and indirect taxes. The policy recommendations of this study include VAT implementation, lower indirect taxes , power reforms, tax benefits linked to export earnings, duty-cut for raw material imports, RD incentives for a longer period, establishment of auto parks, benefits for export-seeking investments, human resources development and modernisation fund for new investments in auto clusters. Industry players have been advised to improve their operational performance, determine their strategic posture as one among those identified in the study, improve capabilities in line with their posture and invest very rapidly in a planned manner. ACMA needs to promote India as a brand, enable sourcing from India by global customers and promote the quality and productivity efforts of the auto component firms in India. ACMA (2006) notes that Indias joining the WP (Working Party) 29: 1998 Agreement for global harmonisation of automotive standards, coupled with the funding of National Automotive Testing and Research Infrastructure Project (NATRIP) by the Government of India, has increased prospects of the Indian auto industry rising up to global standards in the near future, in all aspects. Narayanan (1998) analyses the effects of deregulation policy on technology acquisition and competitiveness in the Indian automobile industry during the 1980s and finds that competitiveness has depended on the ability to build technological advantages, even in an era of capacity-licensing. In a liberalised regime, this would depend on firms ability to bring about technological changes, as inferred from the behaviour of new firms in the sample considered. Further, vertical integration could score over subcontracting in a liberal regime. This is probably because of the entry of new foreign firms that produce technologically superior and guaranteed quality vehicles and choose to produce most of the components in-house.8 Narayanan (2004) analyses the determinants of growth of Indian automobile firms during three different policy regimes, namely, licensing (1980-81 to 1984-85), deregulation (1985-86 to 1990-91) and liberalisation (1991-92 to 1995-96). Un like the prediction by Narayanan (1 998), this study finds that vertical integration is detrimental for growth in a liberalised regime as it potentially limits diversification. Narayanan (2006) also finds that vertical integration plays a positive role in a regulated regime, while it is not conducive for export competitiveness in a liberal regime. Kathuria (1995) notes that the time-bound indigenization programme for commercial vehicles in the 1980s facilitated the upgradation of vendor skills and modifying vehicles to suit local conditions, which demand functional efficiency, overloading capabilities, fuel economy, frequent changes in speed and easy repair and maintenance. Kathuria also mentions that the choice between vertical integration and subcontracting crucially depends on the policy regime: In a liberal regime, vertical integration may not work. Productivity Sharma (2006) analyses the performance of the Indian auto industry with respect to the productivity growth. Partial and total factor productivity of the Indian automobile industry have been calculated for the period from 1990-91 to 2003-04, using the Divisia- Tornquist index for the estimation of the total factor productivity growth. The author finds that the domestic auto industry has registered a negative and insignificant productivity growth during the last one and a half decade. Among the partial factor productivity indices only labour productivity has seen a significant improvement, while the productivity of other three inputs (capital, energy and materials) havent shown any significant improvement. Labour productivity has increased mainly due to the increase in the capital intensity, which has grown at a rate of 0.14 per cent per annum from 1990-91 to 2003-04. Aspects Related to Supply Chain and Industrial Structure In this section, the studies that examine the aspects pertaining to local and global auto supply chains as well as the structure of the Indian auto industry are reviewed. Humphrey (1999) compares the impact of globalisation on supply chain networks in the auto industry in Brazil and India. According to Humphrey, global auto industry hubs were situated in three regions, namely, North America, Western Europe and Japan. Brazil and India are examples of the countries which could develop the indigenous auto industry despite not being situated very close to any of these regions. Hence, Humphrey compares the auto industries in these two countries. This study considers auto industry as a producer-driven commodity chain, wherein global auto assemblers control the entire supply chain from components to dealerships. While the global auto assembly majors used to produce 60-70 per cent of the value inhouse till the 1980s, various phenomenal developments have started taking place since the 1980s, such as the emergence of independent dealers and rise of catalogue suppliers who supply their standard and indigenously designed components/modules to many assemblers. Bra zil and India had liberalised auto investments and tariff structure since 1990. Prior to 1991, India had a much more protectionist regime than Brazil, in terms of licensing and quantitative restrictions on both imports and domestic production. Inflows of auto FDI occurred in both the countries since the mid-1990s. Further, Brazil and India have emerged as preferred suppliers for global auto assemblers. When the global auto assemblers entered India and Brazil, the phenomenon of follow-source was also happening. Now, there are parallel global networks of both assemblers and Tier-1 suppliers. Even Indian component suppliers have opportunities to enter the global auto supply chains, mainly in low technology products made to detailed drawings but the space for domestic industry is diminishing. With the global centralization of product engineering, skill requirements are likely to be immense in process engineering, particularly in assemblers and Tier-1 component manufacturers. Sutton (2000) compares the auto-component supply chains in India and China, based on field surveys. In both these countries, the supply chain has developed very rapidly at the level of car makers and Tier-1 suppliers, with quality levels close to world standards, largely driven by the entry of multinational car makers. But, the Tier-2 suppliers are still not up to the global standards. The domestic content requirements, based on the infant industry argument, have helped the international car makers in enhancing the production capabilities of the domestic players effectively, as shown by increases in auto-component exports from India and China. Of the top ten exporting firms in India and China, five and six are domestic ones, respectively. Enhanced supply-chain capabilities have benefited the domestic auto-makers as well, such as Mahindra and Mahindra in India, who have been able to capture a sizeable market share with their indigenously designed and assembled MUV. Some leading compon ent producers in China and India strategically use highly capital intensive techniques such as robotics, occasionally, despite the low wages, mainly on account of their concerns to achieve high levels of quality. This in combination with employing high-quality workforce even at shop floor is another strategic choice of a few leading firms in India, to promote exports. Many Tier-1 firms follow the standard Japanese work practices to improve quality and minimise costs. Interactions between carmakers and component suppliers have also helped the latter improve quality. Addressing a larger question of the impact of Foreign Direct Investment (FDI) on the domestic industry and economy, Tewari (2000) studies the automotive supply chain of Tamil Nadu, based on field surveys. Studies such as Humphrey (1999) show that entry of global auto majors in India and Brazil have impeded domestic firms, while this study shows evidence for the fact that medium-sized firms, which entered in the mid-1990s in Tamil Nadu have formed networks with smaller domestic suppliers and helped them upgrade their technologies. These medium-sized suppliers require more support from the government, since they play a crucial role in facilitating the development of the domestic auto industry. Joint ventures and technical tie-ups with overseas suppliers have been the strategies that were followed by well-performing auto component manufacturers, long before the global auto majors entered India. These relationships and the entry of foreign OEMs not only promote employment and income, but also diffusion of technologies and knowledge to the entire supply chain, including smaller firms. Veloso and Kumar (2002) provide an overview of the major trends taking place in the global automotive industry, emphasising on the Asian market. Consumer preferences, government regulations and intense competition have been driving the firms towards new technologies, modernisation, research and changes in design and production. Market saturation in Triad regions (the United States, Western Europe and Japan) and rapid emergence of markets in Asia have led to increasing diversity in market needs. As a result, there are many models and segments coming up rapidly. Auto majors have started adopting a global perspective and reorganising their vehicle portfolio around product platforms, modules and systems. They are also minimising the number of suppliers, by opting for bigger ones, based on cost and quality competitiveness, RD capacity and proximity to development centres. Mergers and acquisitions are taking place for consolidation. Suppliers have been taking new roles, as systems integrat ors, global standardiser-systems manufacturers, component specialists and raw material suppliers. These roles are based on their focus, market presence, critical capabilities and types of components and systems. The automobile industry in India had been facing the problem of overcapacity by 2000 and the auto-component sector was not so developed as to be able to deliver products of world-class quality. Chinese tariff and quota policies, coupled with local content regulations protect the auto industry in China immensely. However, the Chinese auto industry suffers from fragmentation, lower quality, lack of technological upgradation and managerial skills. Consolidation and liberalisation that are happening recently in China are expected to promote its auto industry. Auto industries in the ASEAN and Korea have recovered quickly from the Asian crisis of 1998. This report concludes with some aspects that any study on auto sector should focus on, such as evaluation of the capabilities of a uto-component supply chain both large and small suppliers, strategies of OEMs, cost, delivery, dependability, quality, product development, process development, flexibility, facilities/equipment, technology, process, workforce and organisation, logistics and supply chain, research and engineering and interfaces. ACMA (2006) presents the recent trends in the Indian auto industry as a whole and their implications for automotive supply chain in India. The market-oriented growth and growing automobile industry in India have ensured bright prospects for the Indian autocomponent sector, which is vibrant and competitive. Huge future growth potential of the automobile industry and increased access to consumer finance may lead India to a place among the top five automotive economies by 2025. Most of the ACMA members have at least one standards certification. They are embracing world-class modern shop-floor practices. The auto-component sector has been showing high rates of growth ofproduction and exports, with a comprehensive production range, transforming as an attractive OEMs Tier-1 supplier. Many leading OEMs and Tier-1 companies have plans of sourcing from Indian auto-component manufacturers, who are scaling up, establishing partnerships in India and abroad, acquiring foreign companies and establ ishing Greenfield investments overseas. Proficiency in understanding technical drawings, understanding of different global standards, appropriate automation, flexibility in small-batch production and use of Information Technology (IT) for design, development and simulation are some of the growing capabilities among Indian auto-component manufacturers. India is expected to emerge as the next big automotive RD base, given its IT capabilities coupled with automotive domain knowledge and shifting of automotive design centres to India, by global MNCs, as it is a potentially excellent base for prototyping, testing, validating and producing auto-components. Technology and Other Aspects Kathuria (1996) analyses the Commercial Vehicles (CV) industry in India in a detailed manner, dwelling on the concepts of vertical integration and subcontracting, production technology and technological change. After an overview of the global auto industry, Kathuria traces the developments in the Indian auto industry from the 1950s to 1991. To evaluate the competitiveness of Indian commercial vehicles manufacturers in the domestic market, growth trends, structural trends, market shares, profitability, productivity ratios, prices, quality, dealer network and performance are analysed. Macro and micro performance of Indias vehicle exports with major markets and Indian vehicle characteristics have been outlined, along with an analysis of global demand patterns. Domestic resource costs and global comparison of prices, credit and service are the other international trade-related aspects analysed in this study. On vertical integration, the analysis leads to the conclusion that the Indian CV industry needs to learn from the international experience to get into subcontracting and buying-in. Lack of scales and high inventories had impeded the competitiveness of Indian CV firms in the 1980s. RD capabilities and new product ranges were the result of the challenges arising from time-bound indigenisation programme, but still Indian technology frontier remained far below global levels. Further, different firms have followed very different strategies and hence the impacts on their technological capabilities were also very different. However, success of Indian firms despite such a wide range of strategies is partly due to the protection available to them in the domestic market. Kathuria concludes that the Indian auto industry in general and CV industry in particular, have a lot to learn from the global auto industry, in terms of best-practice technology and vertical integration and supplier relationship. The study rightly predicted that the industry would see heightened activity and recommended that the government should ensure that the domestic firms do not lose out because of the unrestricted entry of highly competitive foreign firms. Narayanan (1998) finds that during the 1980s, technology acquisition through imports of technology and in-house RD efforts explains much of differences in competitiveness, as measured by changes in market share, at the firm level, in the Indian automobile industry. Based on an econometric analysis, which considers technology acquisition, skill intensity, component imports, firm size, product differentiation, age and vertical integration as the determinants of competitiveness, Narayanan finds that competitiveness has depended on the ability to build technological advantages, even in an era of capacity licensing. This is facilitated by complementing imported technology with in-house RD efforts. Narayanan (2004) uses two-way fixed effects estimation of the firm growth as a function of variables capturing technology, such as RD expenditure as a proportion of sales, foreign equity participation and import of capital goods. Role of technology depends on the technological regime in which the firm operates. In a licensed regime, firms with foreign equity grow faster because of better access to resources and technology. In a deregulated regime, import of capital goods has been the technology-related variable that triggered growth. In a liberal regime, growth is positively influenced by the intra-firm technology transfer. Narayanan (2006) analyses the determinants of export intensity of Indian automobile firms using a Tobit model, taking the variables discussed in Narayanan (1998) and Narayanan (2004) as the determinants. This study is based on the premises that there is a systematic difference in the characteristics and performance between the firms that export and those which sell in the domestic market, mainly in terms of technology acquisition, which in turn depends on the policy regime. Technology acquisition, firm size, vertical integration, capital intensity, imports of components and policy regime are found to be the main determinants of export competitiveness, by this analysis. SUMMARY OF LITERATURE REVIEW The studies reviewed so far were of a wide range in terms of objectives, Analysis of Indias Automobile Industry Analysis of Indias Automobile Industry Following Indias growing openness, the arrival of new and existing models, easy availability of finance at relatively low rate of interest and price discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the Indian automobile industry. The data obtained from ministry of commerce and industry, shows high growth obtained since 2001- 02 in automobile production continuing in the first three quarters of the 2004-05. Annual growth was 16.0 per cent in April-December, 2004; the growth rate in 2003-04 was 15.1 per cent The automobile industry grew at a compound annual growth rate (CAGR) of 22 per cent between 1992 and 1997. With investment exceeding Rs. 50,000 crore, the turnover of the automobile industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component sector, the automotive industrys turnover, which was above Rs. 84,000 crore in 2002-03, is estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 b illion) in 2003-04. Automobile Dealers Network in India. In terms of Car dealer networks and authorized service stations, Maruti leads the pack with Dealer networks and workshops across the country. The other leading automobile manufacturers are also trying to cope up and are opening their service stations and dealer workshops in all the metros and major cities of the country. Dealers offer varying kind of discount of finances who in turn pass it on to the customers in the form of reduced interest rates. Major Manufacturers in Automobile Industry Maruti Udyog Ltd. General Motors India Ford India Ltd. Eicher Motors Bajaj Auto Daewoo Motors India Hero Motors Hindustan Motors Hyundai Motor India Ltd. Royal Enfield Motors Telco TVS Motors DC Designs Swaraj Mazda Ltd Government has liberalized the norms for foreign investment and import of technology and that appears to have benefited the automobile sector. The production of total vehicles increased from 4.2 million in 1998- 99 to 7.3 million in 2003-04. It is likely that the production of such vehicles will exceed 10 million in the next couple of years. The industry has adopted the global standards and this was manifested in the increasing exports of the sector. After a temporary slump during 1998- 99 and 1999-00, such exports registered robust growth rates of well over 50 per cent in 2002-03 and 2003-04 each to exceed two and- a-half times the export figure for 2001-02. The Key Factors Behind This Upswing Sales incentives, introduction of new models as well as variants coupled with easy availability of low cost finance with comfortable repayment options continued to drive demand and sales of automobiles during the first two quarters of the current year. The risk of an increase in the interest rates, the impact of delayed monsoons on rural demand, and increase in the costs of inputs such as steel are the key concerns for the players in the industry. As the players continue to introduce new models and variants, the competition may intensify further. The ability of the players to contain costs and focus on exports will be critical for the performance of their respective companies. LITERATURE REVIEW As noted by NMCC (2006), competitiveness of manufacturing sector is a very broad Multi-dimensional concept that embraces numerous aspects such as price, quality, Productivity, Efficiency and macro-economic environment. The OECD definition of Competitiveness, which is most widely quoted, also considers employment and sustainability, while being exposed to international competition, as features pertaining to competitiveness. There are numerous studies on auto industry in India, published by industry associations, consultancy organisations, research bodies and peer-reviewed journals. In this section, various studies on the Indian auto industry are reviewed, under different heads pertaining to competitiveness, namely, global comparisons, policy environment and evolution of the Indian auto industry, productivity, aspects related to supply-chain and industrial structure and technology and other aspects. Global Comparisons The Investment Information and Credit Rating Agency of India (ICRA, 2003) studies the competitiveness of the Indian auto industry, by global comparisons of macro environment, policies and cost structure. This has a detailed account on the evolution of the global auto industry. The United States was the first major player from 1900 to 1960, after which Japan took its place as the cost-efficient leader. Cost efficiency being the only real means in as mature an industry as automobiles to retain or improve market share, global auto manufacturers have been sourcing from the developing countries. India and China have emerged as favourite destinations for the first-tier OEMs since late 1980s.There are only a few dominant Indian OEMs, while the number of OEMs is very large in China (122 car manufacturers and 120 motorcycle manufacturers). According to this study, the major advantage of the Indian economy is educated and skilled workforce with knowledge of English. Our disadvantages include p oor infrastructure, complicated tax structure, inflexible labour laws, inter-state policy differences and inconsistencies. The drivers of Chinese economic growth are FDI, labour productivity growth, which was 1.5 times higher than that in India in the last decade, and domestic demand. Fiscal pressure is mounting on the Chinese government, while India is in a better state. Based on comparisons of cost composition to pinpoint the areas in which the Indian auto industry is at a disadvantage, this study recommends a VAT regime, speedy procedures, imports duty cuts on raw materials, common testing and design facility, labour reforms, up gradation of design and engineering capabilities and brand building. ICRA (2004a) analyses the implications of the India-ASEAN5 Free Trade Agreements for the Indian automotive industry. ASEAN economies are globally more integrated than India. The current size of Indian and ASEAN market for automobiles is more or less the same but the Indian market has a larger growth potential than the ASEAN market due to the low level of penetration. The labour cost is low in India but the stringent labour regulations erode this advantage. The level of infrastructure is better in India than Indonesia and the Philippines but worse than that in other ASEAN countries. The financial and banking sector is better in India than in the ASEAN countries. The study notes that there is a huge excess capacity in ASEAN countries, in comparison with that in India, which will help them to tackle the excess demand that may arise in future. The study finds a 20-30 per cent cost disadvantage for Indian companies on account of taxation and infrastructure and 5-20 per cent labour cost ad vantage over comparable ASEAN-member-based companies. Similar findings are noted in a study by the Automotive Component Manufacturers Association of India (ACMA, 2004), particularly in comparison with Thailand. ICRA (2004b) analyses the impact of Preferential Trade Agreement (PTA) with MERCOSUR on the automobile sector in India. This study finds a significant threat of imports in sub-compact and compact cars and certain auto-components. There is huge excess capacity and intense competition in MERCOSUR countries, propelling them to look for export opportunities. This is true especially of Brazil, which has a well developed auto-component sector with huge economies of scale. Further, weak currency in all MERCOSUR countries provides a natural tariff barrier. In addition, MERCOSUR countries have an equitable arrangement within themselves to have a balanced trade, with fair level of exports and imports. The Indian auto industry could gain from this PTA with MERCOSUR only if it is assured of the balanced trade, as MERCOSUR countries practise among themselves. ICRA (2005) studies the possible impact of FTA with South Africa on the Indian automobile industry. The study finds that there are a few policies in South Africa that indirectly subsidise the auto industry, unlike India, in terms of financial grants. Hence it is suggested that India could minimise losses only if it goes for inclusion of certain auto components, which involve huge logistic costs of imports, creating a natural protection (for example, stampings, glass, seats, plastics and tyres) and those in which India enjoys economies of scale and is cost-competitive (e.g. castings and forgings) in this FTA. If South Africa is ready to discontinue the schemes such as Motor Industry Development Programme (MIDP), India could include all automotive components in this FTA. There should be a minimum local content of 60 per cent and the agreement should not be trade balancing as India will not gain much in that case. Policy Environment and Evolution of Indian Auto Industry In this section, studies on the policy environment pertaining to the Indian auto industry and its evolution over the years have been reviewed. Pingle (2000) reviews the policy framework of Indias automobile industry and its impact on its growth. While the ties between bureaucrats and the managers of state-owned enterprises played a positive role especially since the late 1980s, ties between politicians and industrialists and between politicians and labour leaders have impeded the growth. The first phase of 1940s and 1950s was characterised by socialist ideology and vested interests, resulting in protection to the domestic auto industry and entry barriers for foreign firms. There was a good relationship between politicians and industrialists in this phase, but bureaucrats played little role. Development of ancillaries segment as recommended by the L.K. Jha Committee report in 1960 was a major event that took place towards the end of this phase. During the second phase of rules, regulations and politics, many political developments and economic problems affected the auto industry, especially passenger cars segment, in the 196 0s and 1970s. Though politicians picked winners and losers mainly by licensing production, this situation changed with oil crises and other related political and macro-economic constraints. The third phase starting in the early 1980s was characterised by delicensing, liberalisation and opening up of FDI in the auto sector. These policies resulted in the establishment of new LCV manufacturers (for example, Swaraj Mazda, DCM Toyota) and passenger car manufacturers.7 All these developments led to structural changes in the Indian auto industry. Pingle argues that state intervention and ownership need not imply poor results and performance, as demonstrated by Maruti Udyog Limited (MUL). Further, the noncontractual relations between bureaucrats and MUL dictated most of the policies in the 1980s, which were biased towards passenger cars and MUL in particular. However, DCosta (2002) argues that MULs success is not particularly attributable to the support from bureaucrats. Rather, any firm that is as good as MUL in terms of scale economies, first-comer advantage, affordability, product novelty, consumer choice, financing schemes and extensive servicing networks would have performed as well, even in the absence of bureaucratic support. DCosta has other criticisms about Pingle (2000). The major shortcoming of Pingles study is that it ignores the issues related to sectorspecific technologies and regional differences across the country. Piplai (2001) examines the effects of liberalisation on the Indian vehicle industry, in terms of production, marketing, export, technology tie-up, product upgradation and profitability. Till the 1940s, the Indian auto industry was non-existent, since automobile were imported from General Motors and Ford. In early 1940s, Hindustan Motors and Premier Auto started, by importing know-how from General Motors and Fiat respectively. Since the 1950s, a few other companies entered the market for two-wheelers and commercial vehicles. However, most of them either imported or indigenously produced auto-components, till the mid-1950s, when India had launched import substitution programme, thereby resulting in a distinctly separate auto-component sector. Due to the high degree of regulation and protection in the 1970s and 1980s, the reforms in the early 1990s had led to a boom in the auto industry till 1996, but the response of the industry in terms of massive expansion of capacities and entry of multinationals led to an acute over-capacity. Intense competition had led to price wars and aggressive cost-cutting measures including layoffs and large-scale retrenchment. While Indian companies started focusing on the price-sensitive commercially used vehicles, foreign companies continued utilizing their expertise on technology-intensive vehicles for individual and corporate uses. Thus, Piplai concludes that vehicle industry has not gained much from the reforms, other than being thrusted upon a high degree of unsustainable competition. In August 2006, a Draft of Automotive Mission Plan Statement prepared in consultation with the industry was released by the Ministry of Heavy Industries and Public Enterprises. This was finally released as a report in December 2006. This document draws an action plan to take the turnover of the automotive industry in India to US$145 billion by 2016, accounting for more than 10 per cent of the GDP and providing additional employment to 25 million peo ple, by 2016. A special emphasis is laid on small cars, MUVs, two-wheelers and auto-components. Measures suggested include setting up of a National Auto Institute, streamlining government/educational/research institutions to the needs of the auto industry, upgrading infrastructure, considering changes in duty structure and fiscal incentives for RD. Similarly, NMCC (2006), which lays down a national strategy for manufacturing, recognises the importance of the Indian automobile and auto-component industry, particularly the latter, as a competitive knowledge-based industry with immense employment generation potential. McKinsey (2005) predicts the growth potential of India-based automotive component manufacturing at around 500 per cent, from 2005 to 2015. This report describes the initiatives required from industry players, the Government and the ACMA to capture this potential. This study was based on interviews and workshops with 20 suppliers and 7 OEMs and survey with ACMA members. Increase in cost pressures on OEMs in developed countries, coupled with the emergence of skilled, cost-competitive suppliers in Low Cost Countries (LCCs), is likely to facilitate further acceleration of sourcing of automotive components from LCCs. The analysis identifies strong engineering skills and an emerging culture of cost-competitiveness as the major strengths of the Indian auto component sector, while its weaknesses include slow growth in domestic demand and structural disadvantages such as power tariffs and indirect taxes. The policy recommendations of this study include VAT implementation, lower indirect taxes , power reforms, tax benefits linked to export earnings, duty-cut for raw material imports, RD incentives for a longer period, establishment of auto parks, benefits for export-seeking investments, human resources development and modernisation fund for new investments in auto clusters. Industry players have been advised to improve their operational performance, determine their strategic posture as one among those identified in the study, improve capabilities in line with their posture and invest very rapidly in a planned manner. ACMA needs to promote India as a brand, enable sourcing from India by global customers and promote the quality and productivity efforts of the auto component firms in India. ACMA (2006) notes that Indias joining the WP (Working Party) 29: 1998 Agreement for global harmonisation of automotive standards, coupled with the funding of National Automotive Testing and Research Infrastructure Project (NATRIP) by the Government of India, has increased prospects of the Indian auto industry rising up to global standards in the near future, in all aspects. Narayanan (1998) analyses the effects of deregulation policy on technology acquisition and competitiveness in the Indian automobile industry during the 1980s and finds that competitiveness has depended on the ability to build technological advantages, even in an era of capacity-licensing. In a liberalised regime, this would depend on firms ability to bring about technological changes, as inferred from the behaviour of new firms in the sample considered. Further, vertical integration could score over subcontracting in a liberal regime. This is probably because of the entry of new foreign firms that produce technologically superior and guaranteed quality vehicles and choose to produce most of the components in-house.8 Narayanan (2004) analyses the determinants of growth of Indian automobile firms during three different policy regimes, namely, licensing (1980-81 to 1984-85), deregulation (1985-86 to 1990-91) and liberalisation (1991-92 to 1995-96). Un like the prediction by Narayanan (1 998), this study finds that vertical integration is detrimental for growth in a liberalised regime as it potentially limits diversification. Narayanan (2006) also finds that vertical integration plays a positive role in a regulated regime, while it is not conducive for export competitiveness in a liberal regime. Kathuria (1995) notes that the time-bound indigenization programme for commercial vehicles in the 1980s facilitated the upgradation of vendor skills and modifying vehicles to suit local conditions, which demand functional efficiency, overloading capabilities, fuel economy, frequent changes in speed and easy repair and maintenance. Kathuria also mentions that the choice between vertical integration and subcontracting crucially depends on the policy regime: In a liberal regime, vertical integration may not work. Productivity Sharma (2006) analyses the performance of the Indian auto industry with respect to the productivity growth. Partial and total factor productivity of the Indian automobile industry have been calculated for the period from 1990-91 to 2003-04, using the Divisia- Tornquist index for the estimation of the total factor productivity growth. The author finds that the domestic auto industry has registered a negative and insignificant productivity growth during the last one and a half decade. Among the partial factor productivity indices only labour productivity has seen a significant improvement, while the productivity of other three inputs (capital, energy and materials) havent shown any significant improvement. Labour productivity has increased mainly due to the increase in the capital intensity, which has grown at a rate of 0.14 per cent per annum from 1990-91 to 2003-04. Aspects Related to Supply Chain and Industrial Structure In this section, the studies that examine the aspects pertaining to local and global auto supply chains as well as the structure of the Indian auto industry are reviewed. Humphrey (1999) compares the impact of globalisation on supply chain networks in the auto industry in Brazil and India. According to Humphrey, global auto industry hubs were situated in three regions, namely, North America, Western Europe and Japan. Brazil and India are examples of the countries which could develop the indigenous auto industry despite not being situated very close to any of these regions. Hence, Humphrey compares the auto industries in these two countries. This study considers auto industry as a producer-driven commodity chain, wherein global auto assemblers control the entire supply chain from components to dealerships. While the global auto assembly majors used to produce 60-70 per cent of the value inhouse till the 1980s, various phenomenal developments have started taking place since the 1980s, such as the emergence of independent dealers and rise of catalogue suppliers who supply their standard and indigenously designed components/modules to many assemblers. Bra zil and India had liberalised auto investments and tariff structure since 1990. Prior to 1991, India had a much more protectionist regime than Brazil, in terms of licensing and quantitative restrictions on both imports and domestic production. Inflows of auto FDI occurred in both the countries since the mid-1990s. Further, Brazil and India have emerged as preferred suppliers for global auto assemblers. When the global auto assemblers entered India and Brazil, the phenomenon of follow-source was also happening. Now, there are parallel global networks of both assemblers and Tier-1 suppliers. Even Indian component suppliers have opportunities to enter the global auto supply chains, mainly in low technology products made to detailed drawings but the space for domestic industry is diminishing. With the global centralization of product engineering, skill requirements are likely to be immense in process engineering, particularly in assemblers and Tier-1 component manufacturers. Sutton (2000) compares the auto-component supply chains in India and China, based on field surveys. In both these countries, the supply chain has developed very rapidly at the level of car makers and Tier-1 suppliers, with quality levels close to world standards, largely driven by the entry of multinational car makers. But, the Tier-2 suppliers are still not up to the global standards. The domestic content requirements, based on the infant industry argument, have helped the international car makers in enhancing the production capabilities of the domestic players effectively, as shown by increases in auto-component exports from India and China. Of the top ten exporting firms in India and China, five and six are domestic ones, respectively. Enhanced supply-chain capabilities have benefited the domestic auto-makers as well, such as Mahindra and Mahindra in India, who have been able to capture a sizeable market share with their indigenously designed and assembled MUV. Some leading compon ent producers in China and India strategically use highly capital intensive techniques such as robotics, occasionally, despite the low wages, mainly on account of their concerns to achieve high levels of quality. This in combination with employing high-quality workforce even at shop floor is another strategic choice of a few leading firms in India, to promote exports. Many Tier-1 firms follow the standard Japanese work practices to improve quality and minimise costs. Interactions between carmakers and component suppliers have also helped the latter improve quality. Addressing a larger question of the impact of Foreign Direct Investment (FDI) on the domestic industry and economy, Tewari (2000) studies the automotive supply chain of Tamil Nadu, based on field surveys. Studies such as Humphrey (1999) show that entry of global auto majors in India and Brazil have impeded domestic firms, while this study shows evidence for the fact that medium-sized firms, which entered in the mid-1990s in Tamil Nadu have formed networks with smaller domestic suppliers and helped them upgrade their technologies. These medium-sized suppliers require more support from the government, since they play a crucial role in facilitating the development of the domestic auto industry. Joint ventures and technical tie-ups with overseas suppliers have been the strategies that were followed by well-performing auto component manufacturers, long before the global auto majors entered India. These relationships and the entry of foreign OEMs not only promote employment and income, but also diffusion of technologies and knowledge to the entire supply chain, including smaller firms. Veloso and Kumar (2002) provide an overview of the major trends taking place in the global automotive industry, emphasising on the Asian market. Consumer preferences, government regulations and intense competition have been driving the firms towards new technologies, modernisation, research and changes in design and production. Market saturation in Triad regions (the United States, Western Europe and Japan) and rapid emergence of markets in Asia have led to increasing diversity in market needs. As a result, there are many models and segments coming up rapidly. Auto majors have started adopting a global perspective and reorganising their vehicle portfolio around product platforms, modules and systems. They are also minimising the number of suppliers, by opting for bigger ones, based on cost and quality competitiveness, RD capacity and proximity to development centres. Mergers and acquisitions are taking place for consolidation. Suppliers have been taking new roles, as systems integrat ors, global standardiser-systems manufacturers, component specialists and raw material suppliers. These roles are based on their focus, market presence, critical capabilities and types of components and systems. The automobile industry in India had been facing the problem of overcapacity by 2000 and the auto-component sector was not so developed as to be able to deliver products of world-class quality. Chinese tariff and quota policies, coupled with local content regulations protect the auto industry in China immensely. However, the Chinese auto industry suffers from fragmentation, lower quality, lack of technological upgradation and managerial skills. Consolidation and liberalisation that are happening recently in China are expected to promote its auto industry. Auto industries in the ASEAN and Korea have recovered quickly from the Asian crisis of 1998. This report concludes with some aspects that any study on auto sector should focus on, such as evaluation of the capabilities of a uto-component supply chain both large and small suppliers, strategies of OEMs, cost, delivery, dependability, quality, product development, process development, flexibility, facilities/equipment, technology, process, workforce and organisation, logistics and supply chain, research and engineering and interfaces. ACMA (2006) presents the recent trends in the Indian auto industry as a whole and their implications for automotive supply chain in India. The market-oriented growth and growing automobile industry in India have ensured bright prospects for the Indian autocomponent sector, which is vibrant and competitive. Huge future growth potential of the automobile industry and increased access to consumer finance may lead India to a place among the top five automotive economies by 2025. Most of the ACMA members have at least one standards certification. They are embracing world-class modern shop-floor practices. The auto-component sector has been showing high rates of growth ofproduction and exports, with a comprehensive production range, transforming as an attractive OEMs Tier-1 supplier. Many leading OEMs and Tier-1 companies have plans of sourcing from Indian auto-component manufacturers, who are scaling up, establishing partnerships in India and abroad, acquiring foreign companies and establ ishing Greenfield investments overseas. Proficiency in understanding technical drawings, understanding of different global standards, appropriate automation, flexibility in small-batch production and use of Information Technology (IT) for design, development and simulation are some of the growing capabilities among Indian auto-component manufacturers. India is expected to emerge as the next big automotive RD base, given its IT capabilities coupled with automotive domain knowledge and shifting of automotive design centres to India, by global MNCs, as it is a potentially excellent base for prototyping, testing, validating and producing auto-components. Technology and Other Aspects Kathuria (1996) analyses the Commercial Vehicles (CV) industry in India in a detailed manner, dwelling on the concepts of vertical integration and subcontracting, production technology and technological change. After an overview of the global auto industry, Kathuria traces the developments in the Indian auto industry from the 1950s to 1991. To evaluate the competitiveness of Indian commercial vehicles manufacturers in the domestic market, growth trends, structural trends, market shares, profitability, productivity ratios, prices, quality, dealer network and performance are analysed. Macro and micro performance of Indias vehicle exports with major markets and Indian vehicle characteristics have been outlined, along with an analysis of global demand patterns. Domestic resource costs and global comparison of prices, credit and service are the other international trade-related aspects analysed in this study. On vertical integration, the analysis leads to the conclusion that the Indian CV industry needs to learn from the international experience to get into subcontracting and buying-in. Lack of scales and high inventories had impeded the competitiveness of Indian CV firms in the 1980s. RD capabilities and new product ranges were the result of the challenges arising from time-bound indigenisation programme, but still Indian technology frontier remained far below global levels. Further, different firms have followed very different strategies and hence the impacts on their technological capabilities were also very different. However, success of Indian firms despite such a wide range of strategies is partly due to the protection available to them in the domestic market. Kathuria concludes that the Indian auto industry in general and CV industry in particular, have a lot to learn from the global auto industry, in terms of best-practice technology and vertical integration and supplier relationship. The study rightly predicted that the industry would see heightened activity and recommended that the government should ensure that the domestic firms do not lose out because of the unrestricted entry of highly competitive foreign firms. Narayanan (1998) finds that during the 1980s, technology acquisition through imports of technology and in-house RD efforts explains much of differences in competitiveness, as measured by changes in market share, at the firm level, in the Indian automobile industry. Based on an econometric analysis, which considers technology acquisition, skill intensity, component imports, firm size, product differentiation, age and vertical integration as the determinants of competitiveness, Narayanan finds that competitiveness has depended on the ability to build technological advantages, even in an era of capacity licensing. This is facilitated by complementing imported technology with in-house RD efforts. Narayanan (2004) uses two-way fixed effects estimation of the firm growth as a function of variables capturing technology, such as RD expenditure as a proportion of sales, foreign equity participation and import of capital goods. Role of technology depends on the technological regime in which the firm operates. In a licensed regime, firms with foreign equity grow faster because of better access to resources and technology. In a deregulated regime, import of capital goods has been the technology-related variable that triggered growth. In a liberal regime, growth is positively influenced by the intra-firm technology transfer. Narayanan (2006) analyses the determinants of export intensity of Indian automobile firms using a Tobit model, taking the variables discussed in Narayanan (1998) and Narayanan (2004) as the determinants. This study is based on the premises that there is a systematic difference in the characteristics and performance between the firms that export and those which sell in the domestic market, mainly in terms of technology acquisition, which in turn depends on the policy regime. Technology acquisition, firm size, vertical integration, capital intensity, imports of components and policy regime are found to be the main determinants of export competitiveness, by this analysis. SUMMARY OF LITERATURE REVIEW The studies reviewed so far were of a wide range in terms of objectives,