Do you recall those fascinating home designs that you saw at your architect’s place? Weren’t they fancy? Well, if you admired his/her handiwork, maybe it is time you shifted your sense of amazement to some of the finest digital software and tools available in the market. Yes! I am talking about architectural design software here. And boy, have they made an impact on the market.
If you are familiar with the architectural business, you would also be familiar with the image of the architect on his drawing board, working on a blueprint. Otherwise, the intern crouched in a corner working on a scale model of the proposed architectural building. Believe me when I say it. Most people even nowadays have the very same image of architects and the architectural profession stuck in their heads. In fact, before I had the opportunity to see some of the architectural design software in action, I too felt this way. But the advent of architectural design software has changed the industry in unimaginable ways. For one thing, the capabilities of the architects have been enhanced like never before. Now not only are they able to conceptualize complex designs, but they are also able to translate those designs into workable models thanks to the state of the art architectural design software.
In the earlier days, some of the architects who worked on multi billion dollar projects used software applications like AutoCAD to draft their designs. But with the increasing capabilities in design software, coupled with the progress that multimedia has made, AutoCAD is no longer the best way in which architects can present their work. Clients too have evolved over the ages and all of them demand better and better architectural design software to cater to their needs. The best thing about all these kinds of architectural design software is that they are all scalable. In the earlier days, there were a number of issues with legacy systems. As one architect favored a particular kind of architectural design software when compared to another, issues regarding interoperability of the various software frequently cropped up. But with the latest, evolved versions, scalability is inbuilt and ensures that such interoperability issues don’t crop up.
The result is obvious. Some of the better architectural constructions of the present day are all thanks to the capabilities of the architectural design software. And considering the way in which the software is progressing, it is only likely to get better!
Thursday, March 27, 2008
Nuclear Power Plant
Nuclear Power Plant
Nothing arouses more controversy and argument than the subject of nuclear power. Since the advent of the nuclear power plant, there has been strong opposition and defenders of the technology. The figures for 2006 show that there are 442 reactors in the world, producing 17% of the world's electricity. The finite nature of fossil fuels is focusing the minds of politicians on whether to build new plants. Every time a new reactor is mooted, there are lengthy inquiries and protests.
Supporters of nuclear power say that the absence of greenhouse gas emissions is justification for building more nuclear power plant facilities. Environmental campaigners, such as Greenpeace, point to a number of concerns. There have been accidents, notably at Chernobyl and Three-Mile Island, radioactive leaks, and there is the threat of terrorism at nuclear facilitates.
Radioactive waste is another problem, with regard to how to transport it and how to dispose of it safely. The waste is dangerous to humans for thousands of years. Plutonium, a by product of nuclear power, can be used in the manufacture of an atomic bomb, a factor going against the quest for non-proliferation.
Cost is also a factor in the debate. The reactors are very expensive to build and to maintain. Their lifetime is limited and then they have to be decommissioned, another costly exercise. The technology of the nuclear power plant is reliant on uranium and this is a finite resource anyway.
When the first electricity power was produced by a nuclear reactor in 1951 in an Idaho experimental plant, it was supposed to usher in a golden era of clean power. The first commercial enterprise in the world began five years later at Calder Hall in England. The nuclear age has not met with universal praise. Many people claim that radioactive waste from a plant in Cumbria, England routinely leaks into the Irish Sea and that there is an above average amount of leukemia in the area.
The anti-nuclear lobby has a friend in the hit show, The Simpsons. The character of Homer Simpson is an incompetent safety officer at the local nuclear power plant. The industry is lampooned, showing Mr. Burns, the plant's owner, as an irresponsible money grabber with no social conscience. Core meltdowns are a regular occurrence, often averted by Homer who has invariably caused the incident in the first place.
The campaign for alternative energy sources continues. People who are not comfortable with the expansion of nuclear power look to wave, wind and solar power for the answer in addition to energy conservation. In the meantime, let us hope that Homer is a vast exaggeration.
Nothing arouses more controversy and argument than the subject of nuclear power. Since the advent of the nuclear power plant, there has been strong opposition and defenders of the technology. The figures for 2006 show that there are 442 reactors in the world, producing 17% of the world's electricity. The finite nature of fossil fuels is focusing the minds of politicians on whether to build new plants. Every time a new reactor is mooted, there are lengthy inquiries and protests.
Supporters of nuclear power say that the absence of greenhouse gas emissions is justification for building more nuclear power plant facilities. Environmental campaigners, such as Greenpeace, point to a number of concerns. There have been accidents, notably at Chernobyl and Three-Mile Island, radioactive leaks, and there is the threat of terrorism at nuclear facilitates.
Radioactive waste is another problem, with regard to how to transport it and how to dispose of it safely. The waste is dangerous to humans for thousands of years. Plutonium, a by product of nuclear power, can be used in the manufacture of an atomic bomb, a factor going against the quest for non-proliferation.
Cost is also a factor in the debate. The reactors are very expensive to build and to maintain. Their lifetime is limited and then they have to be decommissioned, another costly exercise. The technology of the nuclear power plant is reliant on uranium and this is a finite resource anyway.
When the first electricity power was produced by a nuclear reactor in 1951 in an Idaho experimental plant, it was supposed to usher in a golden era of clean power. The first commercial enterprise in the world began five years later at Calder Hall in England. The nuclear age has not met with universal praise. Many people claim that radioactive waste from a plant in Cumbria, England routinely leaks into the Irish Sea and that there is an above average amount of leukemia in the area.
The anti-nuclear lobby has a friend in the hit show, The Simpsons. The character of Homer Simpson is an incompetent safety officer at the local nuclear power plant. The industry is lampooned, showing Mr. Burns, the plant's owner, as an irresponsible money grabber with no social conscience. Core meltdowns are a regular occurrence, often averted by Homer who has invariably caused the incident in the first place.
The campaign for alternative energy sources continues. People who are not comfortable with the expansion of nuclear power look to wave, wind and solar power for the answer in addition to energy conservation. In the meantime, let us hope that Homer is a vast exaggeration.
Wednesday, March 12, 2008
Need Of Capital Seasoning For Condiments Industry
China has now become a big condiment producer, as well as a big market. Today we can see all the major international brands in the Chinese food seasoning market, and they are fiercely competing with local Chinese brands. As the Chinese capital market is opening up and improving, many traditional industries, such as manufacturing and process, are being revitalized and strengthened by private capital investments. So in this renewed and competitive market environment, how can the fragmented Chinese condiment companies break the barriers and become prominent?
Industry numbers
There are about 32,000 food flavoring product companies in China, which has created a fragmented market structure. In 2003, the whole sector in China registered sales revenue of $5 billion and profit of $280 million, while in 2004 and 2006 consumption value reached $8 billion and $13 billion respectively. On average, the condiment sector has been growing at 20% plus in recent years, being one of the fastest growing segments in the food industry in China. According to forecast from Ministry of Commerce, China's restaurant industry is expected to reach $160 billion revenue in 2007.
According to the recently released China's Restaurant Industry Operating Report 2007 by China Cuisine Association and Chinese Academy of Social Sciences, the restaurant industry achieved retail sales of $138 billion, 5.7 percentage points higher than China's GDP growth rate, and maintaining double digit growth for 16 consecutive years. Figures from China Condiments Industry Association also showed that condiment production in China has an annual output value of $6.7 billion.
In China, condiment products are mainly used in household cooking, restaurant industry and food processing industry. Based on anecdotal evidence from the restaurant industry in China, condiment consumption is now approaching the 10% threshold of restaurant consumption value. This means for every $10 spent in restaurants, $1 goes to condiment spending.
Many condiments are end products for consumption, as well as ingredients for food processing. Such characteristics are particularly evident in two segments, one is instant noodles, whose taste greatly depend on condiments. And the other is the explosive growth of condiment exports from China.
Regional brands
Chinese condiment market has a large variety of taste preference, so has the condiment product types. The combination between traditional ingredients and derivative forms is almost endless. Major production areas for condiment include Beijing, Tianjing, Shanxi Province, Hebei Province, Sichuan Province, Guangdong Province, Shandong Province and the Jiangsu-Zhejiang region. Other provinces such as Liaoning, Henan, Hubei, Anhui and Jiangxi haven't had their own local condiment brands. Overall, most condiment brands in China are still regional brands, and truly national brands are rare.
There are a number of reasons for the above situation. First, China is a geographically large country with a large population, which have lead to the diversity in taste preference since history. For example, there are more than 9 major vinegar types used in different regions in China. The second reason is that the condiment industry in China is still a low-tech and commodity industry, which has deterred brand establishment historically. Therefore, how to establish brands in such an industry structure is always a goal for many Chinese condiment companies to pursue.
Take the example of Guangdong-based Haitian (HADAY) Sauce, one of the famous sauce brands in China. In 2006, HADAY's production output and sales income were 620,000 tonnes and $260 million, with growth rates of 34.8% and 22.5% on pcp respectively. A source from HADAY indicated that sales income in 2007 is expected to exceed $400 million. But even compared to the national sauce demand of 5 million tonnes per year, not to mention the whole condiment market, HADAY is still occupying a relatively small portion of the market.
Cost pressure
As prices for raw ingredients such as soybean, sesame and chilli have been increasing in the past 2 years, condiment prices in China are also following suit. Condiment products such as soy sauces, vinegars and chili sauces had collectively put up their prices in early 2007. For a bottle of mature vinegar previously sold at $0.25, it has now gone up to $0.33.
With costs rising, the pressure on condiment producers is also getting bigger. For any unilateral price increases, a company has to face the challenges from peer pricing and consumer affordability. Therefore such bottlenecks have become a huge problem for many condiment companies. An industry insider commented that although costs and demand are both rising for the whole industry, constrained by the fierce market competition, many companies are still very cautious about any price increases. And consumers, media and governments are also sensitive about any price changes in essential items.
Capital investments underpinning market developments
With such a huge market, private capital has never stopped looking at the condiment industry in China. And the industry is also entering a dividing, transforming and consolidating era.
China's condiment industry is currently full of leaders, challengers and "guerrillas", creating a highly competitive market environment. In such a market, weak products can quickly become brand products, and fast-pace strategies can nicely offset scale disadvantages. Even for a tiny pack of food flavour powder worth $1, it could become a multi-million dollar enterprise in a huge market like China. However, without sustainable and prominent brands, but only instant fame and superficial images, the industry still wouldn't develop properly.
The upcoming Growth Enterprise Market (GEM) in China may provide an appropriate platform to satisfy companies' growth and expansion funding demand. Through large scale capital investments, it is possible for China to develop several prominent condiment brands, which in turn could become examples for other peers to follow. We hope that in the near future, we could see world class condiment brands from China, similar to the status reached by China's household electronics industry today.
Industry numbers
There are about 32,000 food flavoring product companies in China, which has created a fragmented market structure. In 2003, the whole sector in China registered sales revenue of $5 billion and profit of $280 million, while in 2004 and 2006 consumption value reached $8 billion and $13 billion respectively. On average, the condiment sector has been growing at 20% plus in recent years, being one of the fastest growing segments in the food industry in China. According to forecast from Ministry of Commerce, China's restaurant industry is expected to reach $160 billion revenue in 2007.
According to the recently released China's Restaurant Industry Operating Report 2007 by China Cuisine Association and Chinese Academy of Social Sciences, the restaurant industry achieved retail sales of $138 billion, 5.7 percentage points higher than China's GDP growth rate, and maintaining double digit growth for 16 consecutive years. Figures from China Condiments Industry Association also showed that condiment production in China has an annual output value of $6.7 billion.
In China, condiment products are mainly used in household cooking, restaurant industry and food processing industry. Based on anecdotal evidence from the restaurant industry in China, condiment consumption is now approaching the 10% threshold of restaurant consumption value. This means for every $10 spent in restaurants, $1 goes to condiment spending.
Many condiments are end products for consumption, as well as ingredients for food processing. Such characteristics are particularly evident in two segments, one is instant noodles, whose taste greatly depend on condiments. And the other is the explosive growth of condiment exports from China.
Regional brands
Chinese condiment market has a large variety of taste preference, so has the condiment product types. The combination between traditional ingredients and derivative forms is almost endless. Major production areas for condiment include Beijing, Tianjing, Shanxi Province, Hebei Province, Sichuan Province, Guangdong Province, Shandong Province and the Jiangsu-Zhejiang region. Other provinces such as Liaoning, Henan, Hubei, Anhui and Jiangxi haven't had their own local condiment brands. Overall, most condiment brands in China are still regional brands, and truly national brands are rare.
There are a number of reasons for the above situation. First, China is a geographically large country with a large population, which have lead to the diversity in taste preference since history. For example, there are more than 9 major vinegar types used in different regions in China. The second reason is that the condiment industry in China is still a low-tech and commodity industry, which has deterred brand establishment historically. Therefore, how to establish brands in such an industry structure is always a goal for many Chinese condiment companies to pursue.
Take the example of Guangdong-based Haitian (HADAY) Sauce, one of the famous sauce brands in China. In 2006, HADAY's production output and sales income were 620,000 tonnes and $260 million, with growth rates of 34.8% and 22.5% on pcp respectively. A source from HADAY indicated that sales income in 2007 is expected to exceed $400 million. But even compared to the national sauce demand of 5 million tonnes per year, not to mention the whole condiment market, HADAY is still occupying a relatively small portion of the market.
Cost pressure
As prices for raw ingredients such as soybean, sesame and chilli have been increasing in the past 2 years, condiment prices in China are also following suit. Condiment products such as soy sauces, vinegars and chili sauces had collectively put up their prices in early 2007. For a bottle of mature vinegar previously sold at $0.25, it has now gone up to $0.33.
With costs rising, the pressure on condiment producers is also getting bigger. For any unilateral price increases, a company has to face the challenges from peer pricing and consumer affordability. Therefore such bottlenecks have become a huge problem for many condiment companies. An industry insider commented that although costs and demand are both rising for the whole industry, constrained by the fierce market competition, many companies are still very cautious about any price increases. And consumers, media and governments are also sensitive about any price changes in essential items.
Capital investments underpinning market developments
With such a huge market, private capital has never stopped looking at the condiment industry in China. And the industry is also entering a dividing, transforming and consolidating era.
China's condiment industry is currently full of leaders, challengers and "guerrillas", creating a highly competitive market environment. In such a market, weak products can quickly become brand products, and fast-pace strategies can nicely offset scale disadvantages. Even for a tiny pack of food flavour powder worth $1, it could become a multi-million dollar enterprise in a huge market like China. However, without sustainable and prominent brands, but only instant fame and superficial images, the industry still wouldn't develop properly.
The upcoming Growth Enterprise Market (GEM) in China may provide an appropriate platform to satisfy companies' growth and expansion funding demand. Through large scale capital investments, it is possible for China to develop several prominent condiment brands, which in turn could become examples for other peers to follow. We hope that in the near future, we could see world class condiment brands from China, similar to the status reached by China's household electronics industry today.
Customer Oriented Organization In Aviation Industry
Inventory KPI is important in any customer-oriented organization, from suppliers down to the end users. In the aviation industry, for instance, the end users may be the pilot, the flight crew or the passengers. With the field of aviation changing its business paradigm into something new, so does its inventory KPI as well.
Newer business models are currently being used in the aerospace industry. The focus may be on the use of narrow jets, wide bodied jets, low-cost carriers and many others. Inventory KPI is important in the supply of service facilities at global locations that are strategically dispersed to enable proper aircraft servicing. Many airline companies see just how important it is to be able to provide full service to ensure competitive edge. Moreover, in a military environment, tracking of inventory KPI is of even crucial importance as well, especially with the escalating use of net centric warfare and rapid reaction.
Also, new players with a varied geographical spread are entering the commercial aviation business. Especially in the aerospace industry's globally interdependent environment, effective and efficient management in logistics can spell a huge difference between profit and loss.
Good inventory management and measurement of inventory KPI can boost airline operations, resulting to an increase in sales and more economic benefits for locations where these airlines operate. Traditional inventory KPIs for handling stock control include ABC classification for parts based on frequency of use and value; measurement of stock turns and service level responsiveness and recording the rate of daily receipts.
These measures show that airline companies can boost its competitive edge when there is proper cash management for acquired goods and services. In fact, this particularly holds true when interest rates and inflation rise. Cost of holding stock increases subsequently and can even go up to about 20 to 30% of the item's cost, to store it for a year. Proper inventory management can reduce operating costs by minimizing the space needed for operations, thus making it easier to gain higher profit margins and market share.
Many leaner operations and sophisticated supply networks in the aviation industry operate under the new business paradigm. Inefficiency can lead to financial repercussions in terms of aircraft on the ground (AOG) situation. This is why it is important to enhance and get maximum leverage in managing the inventory control system to incorporate the end-to-end supply chain.
While various departments also come with their own objectives, the key here is to effectively communicate both externally and internally within the organization in order to arrive at a level that is strategic to the business's operational execution.
Organizational inventory KPI must be associated to its supplier base, in order for the supply chain to be working well towards the same objectives. This is especially important in key supply chain activities which include management of the supply chain's risk vulnerability and ensuring the supply's security.
Apart from the importance of logistics and warehousing to strategic and operational success in the aviation business, inventory KPI should be dynamic and must go with the organization's strategy. For instance, inventory KPI should show that lean operations are in line with the activities in the supply chain.
Newer business models are currently being used in the aerospace industry. The focus may be on the use of narrow jets, wide bodied jets, low-cost carriers and many others. Inventory KPI is important in the supply of service facilities at global locations that are strategically dispersed to enable proper aircraft servicing. Many airline companies see just how important it is to be able to provide full service to ensure competitive edge. Moreover, in a military environment, tracking of inventory KPI is of even crucial importance as well, especially with the escalating use of net centric warfare and rapid reaction.
Also, new players with a varied geographical spread are entering the commercial aviation business. Especially in the aerospace industry's globally interdependent environment, effective and efficient management in logistics can spell a huge difference between profit and loss.
Good inventory management and measurement of inventory KPI can boost airline operations, resulting to an increase in sales and more economic benefits for locations where these airlines operate. Traditional inventory KPIs for handling stock control include ABC classification for parts based on frequency of use and value; measurement of stock turns and service level responsiveness and recording the rate of daily receipts.
These measures show that airline companies can boost its competitive edge when there is proper cash management for acquired goods and services. In fact, this particularly holds true when interest rates and inflation rise. Cost of holding stock increases subsequently and can even go up to about 20 to 30% of the item's cost, to store it for a year. Proper inventory management can reduce operating costs by minimizing the space needed for operations, thus making it easier to gain higher profit margins and market share.
Many leaner operations and sophisticated supply networks in the aviation industry operate under the new business paradigm. Inefficiency can lead to financial repercussions in terms of aircraft on the ground (AOG) situation. This is why it is important to enhance and get maximum leverage in managing the inventory control system to incorporate the end-to-end supply chain.
While various departments also come with their own objectives, the key here is to effectively communicate both externally and internally within the organization in order to arrive at a level that is strategic to the business's operational execution.
Organizational inventory KPI must be associated to its supplier base, in order for the supply chain to be working well towards the same objectives. This is especially important in key supply chain activities which include management of the supply chain's risk vulnerability and ensuring the supply's security.
Apart from the importance of logistics and warehousing to strategic and operational success in the aviation business, inventory KPI should be dynamic and must go with the organization's strategy. For instance, inventory KPI should show that lean operations are in line with the activities in the supply chain.
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