Professional Documents
Culture Documents
research on all topics in product and process design, operations, and supply chain
management.
Key Capabilities[edit]
Pipeline Management[edit]
This is the determination of whether (and how) a set of projects in the portfolio can be
executed by a company with finite development resources in a specified time. Fundamental
to pipeline management is the ability to align the decision-making process
for estimating and selecting new capital investment projects with the strategic plan.
Resource Management[edit]
The focus on efficient and effective deployment of an organizations resources where and
when they are needed. These can include financial resources, inventory, human resources,
technical skills, production and design. In addition to project-level resource allocation, users
can also model what-if resource scenarios, and extend this view across the portfolio.
Change Control[edit]
The capture and prioritization of change requests that can include new requirements,
features, functions, operational constraints, regulatory demands, and technical
enhancements. PPM provides a central repository for these change requests and the ability
to match available resources to evolving demand within the financial and operational
constraints of individual projects.
Financial Management[edit]
With PPM, the Office of Finance can improve their accuracy for estimating and managing
the financial resources of a project or group of projects. In addition, the value of projects can
be demonstrated in relation to the strategic objectives and priorities of the organization
through financial controls and to assess progress through earned value and other project
financial techniques.
Risk Management[edit]
An analysis of the risk sensitivities residing within each project, as the basis for determining
confidence levels across the portfolio. The integration of cost and schedule risk
management with techniques for determining contingency and risk response plans, enable
organizations to gain an objective view of a project uncertainties
Evolution of PPM[edit]
In the early 2000s, many PPM vendors realized that project portfolio reporting services only
addressed part of a wider need for PPM in the marketplace. Another more senior audience
had emerged, sitting at management and executive levels above detailed work execution
and schedule management, who required a greater focus on process improvement and
ensuring the viability of the portfolio in line with overall strategic objectives. In addition, as
the size, scope, complexity, and geographical spread of organizations project portfolios
continued to grow, greater visibility was needed of project work across the enterprise, allied
to improved resource utilization and capacity planning.
The PPM landscape is evolving rapidly as a result of the growing preference for managing
multiple capital investment initiatives from a single, enterprise-wide system. This more
centralized approach, and resulting single version of the truth for project and project
portfolio information, provides the transparency of performance needed by management to
monitor progress versus the strategic plan.
Prioritize the right projects and programs: EPPM can guide decision-makers to
strategically prioritize, plan, and control enterprise portfolios. It also ensures the
organization continues to increase productivity and on-time delivery - adding value,
strengthening performance, and improving results.
Build contingencies into the overall portfolio: flexibility often exists within individual
projects but, by integrating contingency planning across the entire portfolio of
investments, organizations can have greater flexibility around how, where, and when
they need to allocate resources, alongside the flexibility to adjust those resources in
response to a crisis.
Maintain response flexibility: with in-depth visibility into resource allocation,
organizations can quickly respond to escalating emergencies by maneuvering resources
from other activities, while calculating the impact this will have on the wider business.
Understand future resource needs: by aligning the right resources to the right
projects at the right time, organizations can ensure individual resources are fully
leveraged and requirements are clearly understood. EPPM software also allows an
organization to establish complete project capacity.
A key result of PPM is to decide which projects to fund in an optimal manner. Project
Portfolio Optimization (PPO) is the effort to make the best decisions possible under these
conditions.
See also[edit]
Materials management can deal with campus planning and building design for the
movement of materials, or with logistics that deal with the tangible components of a supply
chain. Specifically, this covers the acquisition of spare parts and replacements, quality
control of purchasing and ordering such parts, and the standards involved in ordering,
shipping, and warehousing the said parts.
upply Chain Materials Management Areas of Concentration [edit]
Goals[edit]
In large companies with multitudes of customer changes to the final product over the course
of a year, there may be a separate logistics department that is responsible for all new
acquisition launches and customer changes. This logistics department ensures that the
launch materials are procured for production and then transfers the responsibility to the
plant materials management
Standards[edit]
There are no standards for materials management that are practiced from company to
company. Most companies use ERP systems such as ARA5,SAP, Oracle, BPCS, MAPICS,
and other systems to manage materials control. Small companies that do not have or
cannot afford ERP systems use a form of spreadsheet application to manage materials.
Some other construction projects use barcode and GPS materials management systems
like Track'em.[1]
Materials management is not a science and depending upon the relevance and importance
that company officials place upon controlling material flow, the level of expertise changes.
Some companies place materials management on a level whereby there is a logistics
director, other companies see the importance level as managing at the plant level by hiring
an inventory manager or materials manager, and still other companies employ the concept
that the supervisors in the plant are responsible accompanied by a planners.
Materials Management[edit]
The major challenge that materials managers face is maintaining a consistent flow of
materials for production. There are many factors that inhibit the accuracy of inventory which
results in production shortages, premium freight, and often inventory adjustments. The
major issues that all materials managers face are incorrect bills of materials, inaccurate
cycle counts, un-reported scrap, shipping errors, receiving errors, and production reporting
errors. Materials managers have striven to determine how to manage these issues in the
business sectors of manufacturing since the beginning of the industrial revolution. Although
there are no known methods that eliminate the afore mentioned inventory accuracy
inhibitors, there are best methods available to eliminate the impact upon maintaining an
interrupted flow of materials for production.
One challenge for materials managers is to provide timely releases to the supply base. On
the scale of worst to best practices, sending releases via facsimile or PDF file is the worst
practice and transmitting releases to the supplier based web site is the best practice. Why?
The flaw in transmitting releases via facsimile or email is that they can get lost or even
interpreted incorrectly into the suppliers system resulting in a stock out. The problem with
transmitting EDI releases is that not all suppliers have EDI systems capable of receiving the
release information. The best practice is to transmit the releases to a common supplier web
base site where the suppliers can view (for free) the releases. The other advantage is that
the supplier is required to use the carrier listed in the web site, must transmit an ASN
(advanced shipping notification), and review the accumulative balances of the order.
Redundancy can be reduced and effectiveness is increased when service points are
clustered to reduce the amount of redundancy. An effective materials management program
can also resolve island approaches to shipping, receiving, and vehicle movement.
Solutions can include creating a new central loading location, as well consolidating service
areas and docks from separate buildings into one. Developing better campus circulation
infrastructure also means re-evaluating truck delivery and service vehicle routes. Vehicle
type, size, and schedules are studied to make these more monument for other uses.
Materials Management Week[edit]
Each year, an entire week is dedicated to celebrating resource and materials management
professionals for their outstanding contributions to healthcare and the overall success of the
supply chain. Sponsored by the Association for Healthcare Resource & Materials
Management (AHRMM), National Healthcare Resource & Materials Management Week
(MM Week) provides an opportunity to recognize the integral role materials management
professionals play in delivering high-quality patient care throughout the health care industry.
In 2010 Material Management Week is October 410.
Overview[edit]
Materials management plans and designs for the delivery, distribution, storage, collection,
and removal of occupant-generated streams of materials and services. It is usually an
additional service that is offered as part of a campus planning process or a building design
project. It is most beneficial for university, health care, and corporate environments.
Materials management looks at the planning and design considerations needed to support
the efficient delivery and removal of goods and services that support occupant activity. The
streams of occupant-generated materials and activity include mail, office supplies, lab
supplies, food, special deliveries, custodial services, building supplies, waste and recycling,
and service calls.
A materials management plan may include planning guidelines or full design for the
following:
Truck delivery and service vehicle routes, to reduce vehicle / pedestrian conflict
Loading docks and delivery points, to increase accommodation and reduce queuing
and vehicle idling
Recycling, trash, and hazardous waste collection and removal, to increase waste
diversion and reduce costs
The effective materials management plan builds from and enhances an institutional master
plan by filling in the gaps aNd producing an environmentally responsible and efficient
outcome. An institutional campus, office, or housing complex can expect a myriad of
benefits from an effective materials management plan. For starters,there are long-term cost
savings, as consolidating, reconfiguring, and better managing a campus core infrastructure
reduces annual operating costs. An institutional campus, office, or housing complex will also
get the highest and best use out of campus real estate.
An effective materials management plan also means a more holistic approach to managing
vehicle use and emissions, solid waste, hazardous waste, recycling, and utility services. As
a result, this means a greener, more sustainable environment and a manifestation of the
many demands today for institutions to become more environmentally friendly. In fact,
thanks to such environmental advantages, creative materials management plans may
qualify for LEAD Innovation in Design credits.
And finally, an effective materials management plan can improve aesthetics. Removing
unsafe and unsightly conditions, placing core services out of sight, and creating a more
pedestrian-friendly environment will improve the visual and physical sense of place for
those who live and work there.[3]
Established in 1987, CRISIL has been promoted by leading Indian financial institutions like
The Industrial Credit and Investment Corporation of India Limited (ICICI), Unit Trust of India
(UTI) and Housing Development Finance Corporation Limited. The major shareholders include
Standard & Poor's, ICICI, UTI, Life Insurance Corporation, General Insurance Corporation and a
host of nationalized and foreign banks. CRISIL became a public limited company in November
1993 and is presently a quoted company on the Bombay Stock Exchange and the National Stock
Exchange
.
Crisil pioneered the concept of credit rating in India and developed the framework and
methodology for rating debt in the context of the India financial, monetary and regulatory
system. CRISIL today has attained a pre-eminent position in the rating industry. It is the largest
rating agency in the South East Asia region and is amongst the four largest ratings agencies in the
world. In February 1996, CRISIL entered into a strategic alliance with Standard and Poors .The
relationship got strengthened with S&P with CRISILs working credibility, competence and
management. The relationship got further strengthened with S&P taking up a majority stake in
CRISIL.
CRISIL started with the rating of corporate dept and other the years extended its
scope of activities. Its range of services one includes rating services, advisory services and
investment research related services.
CRISIL Limited is Indias leading Ratings, Financial News, Risk & Policy Advisory
Company. CRISIL helps clients manage and mitigate business and financial risk, enables markets
to function better through benchmarks and best practices and provides workable inputs in
shaping public policy. CRISILs services and products span the entire value chain starting from
data collection and management to providing opinions and integrated solutions. These products
and services are backed by highest standards of integrity, independence and analytical rigor,
making CRISIL the most credible provider of these services in the market. CRISILs clients
depend upon it to constantly deliver objective opinions and the most workable solutions.
Through a sustained theme of innovation and thought leadership, CRISIL has led the markets
with new thoughts, new analytical frameworks and new approaches, placing it in its leading
position in the Indian market place. to all participants in the financial markets. CRISIL
Infrastructure Advisory Group provides workable policy and transaction level solution to Central
and State governments, public sector and private sector entities, that help them make the
difference. CRISIL Investment and Risk Management Group (part of CRISILs advisory
services) and Global Data Services India Ltd (GDSIL), both CRISIL subsidiaries. CRISIL Ltd
provides business knowledge through research on industries, companies and the economy,
GDSIL provides analytical data base to support CRISIL as well as external clients in there
research and analysis. CRISILs news services (CRISIL Market wire CMW) are Indias leading
provider of real time news and analysis on India debt markets.
CRISIL commenced its SME (small & medium enterprises) rating services in April
2005. CRISIL has two product for rating small scale industries SSIs and SMEs viz. NSIC-
CRISIL performance and credit rating for SSI and SME rating respectively CRISIL rates SSI and
SMEs on two separate rating scales as given below:
Financial Strength
Performance Highest SE 1A SE 1B SE 1C
Capability
High SE 2A SE 2B SE 2C
Moderate SE 3A SE 3B SE 3C
Weak SE 4A SE 4B SE 4C
Poor SE 5A SE 5B SE 5C
For example, a company with high Performance Capability and high Financial Strength will be
rated 'SE2A', while one with weak Performance Capability and low Financial Strength will be
rated 'SE4C'.
B. SME RATING
CRISIL SME Ratings will reflect the level of creditworthiness of an SME, adjudged in
relation to other SMEs. CRISIL SME Ratings will be assigned with the following rating
definition:
"The rating indicates that the level of creditworthiness of an SME, adjudged in relation to
other SMEs is " (as per table below)
TABLE NO .2
SME 1 Highest
SME 2 High
SME 4 Average
SME 6 Inadequate
SME 7 Poor
SME 8 Default
AAA Instruments rated 'AAA' are judged to offer the highest degree of
(Triple A) Highest safety with regard to timely payment of financial obligations. Any
Safety adverse changes in circumstances are most unlikely to affect the
payments on the instrument
BBB Instruments rated 'BBB' are judged to offer moderate safety with
(Triple B) Moderate regard to timely payment of financial obligations for the present;
Safety however, changing circumstances are more likely to lead to a
weakened capacity to pay interest and repay principal than for
instruments in higher rating categories.
C Instruments rated 'C' are judged to have factors present that make
Substantial Risk them vulnerable to default; timely payment of financial obligations
is possible only if favourable circumstances continue.
National Small Industries Corporation Ltd. (NSIC), an ISO 9001 certified company,
since its establishment in 1955, has been working to fulfill its mission of promoting, aiding and
fostering the growth of small scale industries and industry related small scale services/business
enterprises in the country. Over a period of five decades of transition, growth and development,
NSIC has proved its strength within the country and abroad by promoting modernization, up
gradation of technology, quality consciousness, strengthening linkages with large medium
enterprises and enhancing exports - projects and products from small industries.
NSIC operates through 9 Zonal Offices, 33 Branch Offices, 14 Sub Offices, 10 NSIC
Business Development Extension Offices, 5 Technical services Centers, 3 Extension Centers and
2 Software Technology Parks supported by a team of over 500 professionals spread across the
country. To manage operations in African countries, NSIC operates from its office in
Johannesburg.
NSIC carries forward its mission to assist small enterprises with a set of specially
tailored schemes designed to put them in a competitive and advantageous position. The schemes
comprise of facilitating marketing support, credit support, technology support and other support
services.
NSIC carries forward its mission to assist small enterprises with a set of specially
tailored schemes designed to put them in a competitive and advantageous position. The schemes
comprise of facilitating marketing support, credit support, technology support and other support
services.
RATING FEES
*concessional fees are applicable for CRISILs partner MOU bank customers and
industry association members. The fees mentioned above are inclusive of all expenses
CRISIL will occur in connection with the exercise.
RATING FEES FOR CRISIL SME RATING
Rating fees
(Rs.) 60,000 65,000
70,000 85,000 110,000
Service tax
6,180 6,695 7,210
8,755 11,330
In association with NSIC, CRISIL is now rating small scale industries (SSI) on special
rating scale. NSIC provides subsidy for rating of SSIs. CRISIL has already rated 350
SMEs SSIs on the NSIC-CRISIL and the SME rating scale. More than 100 additional
mandates are under the process of execution. CRISIL has conducted studies on 19 SME
clusters across 8 industries. CRISILs SME risk assessment model installed in 8 reputed
public and private sector banks. CRISIL provided its expertise in the SME sector for
emerging India award 2006, organized by ICICI Banks and CNBC. Of 35000 entries
received for the awards, best SMEs were identified across 10 categories.
Besides marketing the rating services directly to the SMEs through one-to-one contact,
other alternative approaches were adopted to develop the business. To address the large number
of SMEs (including SSIs) in India, CRISIL adopted an aggregator approach wherein SMEs
could be accessed in groups through an aggregator like a bank, an industry association, or a large
corporate with several SME dealers or vendors
Since bank in India have large SME portfolios as part of their priority sector business, and
SMEs depends substantially on banks for their fund requirements, CRISIL decided to enter into
national level tie-ups with banks to provide rating services to their SME borrowers
CRISIL has partnered with 26 banks and two financial organisations to extend the special
concessional rating fees to its customers.
The following partner banks and financial organisations are giving interest rate benefits to the
customers rated by CRISIL.
In addition to the above banks, CRISIL has partnered with the following 16 banks to give special
concessional fees to rate their customers.
1. Allahabad Bank
2. Andhra Bank
3. Bank of Baroda
4. Bank of Maharashtra
5. Dena Bank
6. The Federal Bank Limited
7. HDFC Bank Limited
8. Indian Bank
9. Indian Overseas Bank
10. State Bank of Bikaner & Jaipur
11. State Bank of Hyderabad
12. State Bank of India
13. State Bank of Indore
14. State Bank of Mysore
15. State Bank of Saurashtra
16. State Bank of Travancore
Though SMEs in India are dispersed across the country. There are certain pockets with
concentrations of SMEs. These are called SMEs clusters. The SMEs in cluster or otherwise have
organized themselves into industry associations which work as a platform for the welfare of
members. CRISIL has reached an understanding with several industry associations across the
country to provide rating service to their members at attractive terms.
Similarly, large companies in India deals with several SMEs in their supply chain as
dealers for selling finished goods, and the vendors for procuring raw material or sub-assemblies.
CRISIL has signed agreements with such companies for grading their deals or rating their
vendors.
CRISIL, with its reliability, width, and depth of experience in rating services, made a
world of difference to the corporate sector when it is pioneered the concept of rating in India.
CRISIL believes it will make the same difference to the SME sector with its SME sector rating.
In the India market, the common concept was that of small scale industry (SSI); the
definition of a medium enterprises is of more recent origin. The government of India has
historically tracked the profile and growth of the SME sector in terms of SSIs. SSIs are a vibrant
and important sector of the Indian economy. They make significant contribution to the annual
GDP, exports and employment. In an environment of sustained high economic growth, economic
reforms and economic liberalization, the role and the importance of the SSI sector will be even
more significant in the future.
The small scale sector has grown rapidly over the years. The growth rate during the
various plan periods has been very impressive. The number of small scale units has increased
many folds over the years. Currently there are about 118 SSIs in India.
The sector accounts for around 95 percent of the industrial units in the country,
contributing 40% of the manufacturing sector output and approximately 35% of the nation
exports. The total value of production by SSI units for the year 2004-2005 was approximately
Rs. 418300 crore. In addition to the contribution of 40% towards direct export, the SSI
contributes around 15% to export in directly.
It has been estimated that an investment of Rs. 10 lakh in fixed assets in the small
scale sector reduces Rs. 46.2 lakh worth of goods or services.
SSI sector in India creates the largest employment opportunities for the Indian
populace, next only to agriculture. It has been estimated that investment of Rs. 1 lakh in fixed
assets in the small scale sector generates employment for four persons. Overall, the sector
currently employs around 2.83 crore people.
An industrial undertaking in which the investment is fixed assets in plant and machinery,
whether held on ownership terms, on lease, or on high purchase, does not exceed Rs. 1 crore,
subject to the condition that the unit is not owned or controlled by, or a subsidiary of, any other
industrial undertaking.
SSI units mostly belong to the manufacturing sector. However some service
enterprises such as software development enterprises, cold storage units etc. Have also been
included under the SSI umbrella. Previously the ministry of SSI also defined small scale services
and business enterprises (SSSBEs) as enterprises having investment equipment excluding
investment in land and building up to Rs.10 lakh. SSSBEs include enterprises working in close
association with manufacturing enterprises like CAD\CAM blueprinting, and industrial
consulting etc.
Small enterprises both manufacturing and service sector are eligible for receiving
subsidy in the rating fees norms national small industries corporation limited (NSIC)
As per the new SMED (small and medium enterprises development) act the limited
for investment in plant and machinery in small enterprises has been increased to rs. 5 crore. the
new act is expected to become operational with effect from oct,2,2006.
The SMED Act defines a Medium Enterprises as one with investment in the plant
machinery in excess of the SSI limit and up to Rs.10 crore. Before this there was no commonly
accepted definition of medium enterprises.
The SMED Act defines a medium enterprises in the service sector as one having
investment in equipment (in excluding investment in land and building) up to Rs.5 crore.
Medium enterprises, which are relatively bigger in size, have different credit needs.
Looking at this, CRISIL has developed a separate scale for rating these enterprises (an 8 point
scale as given in the brochure for SME rating). For rating the medium enterprises, CRISIL goes
by the definition of such enterprises by the banks.
Tabular representation of ceiling in investment for enterprises in manufacturing and
service sector as per the new SMED Act:
TABLE NO .3
CRISIL is India's leading Ratings, Research, Risk and Policy Advisory Company.
CRISIL offers domestic and international customers a unique combination of local insights and
global perspectives, delivering independent information, opinions and solutions that help them
make better informed business and investment decisions, improve the efficient Locations.
Crisil House (Pinnacle Chambers) 121/122 Andheri Kurla Road Andheri (East)
Mumbai,Maharashtra,400093
India
Phone:-912256913001
Fax: 91 22 56913000
Status Operating
Founded 1987
Website www.crisil.com
subsidiaries
Irevna