Final Opm

Operations & Production Management Submitted To: Prof. Zia ur Rehman Submitted By: Yasir Dogar 911 Falak Zaib 2152 Kashif Sohail 925 Zeeshan 940 Waseem 918 Farasat Abbas 941 Section E (Afternoon) 8th Semester Topic: Nestle Milk Pack

Hailey College of Commerce University Of The Punjab

Plant Location Introduction In the previous unit you have learnt how the entrepreneur conducts the detailed analysis comprising of technical, financial, economic and market study before laying down a comprehensive business plan. For implementation of this plan, he has to take various crucial decisions namely location of business, layout (the arrangement of physical facilities), designing the product, production planning and control and maintaining good quality of product. This lesson deals with various aspects of plant location and layout. Investment in analyzing the aspects of plant location and the appropriate plant layout can help an entrepreneur achieve economic efficiencies in business operations. These decisions lay the foundation of the business of small entrepreneurs.

Plant Location Every entrepreneur is faced with the problem of deciding the best site for location of his plant or factory. What is plant location? Plant location refers to the choice of region and the selection of a particular site for setting up a business or factory. But the choice is made only after considering cost and benefits of different alternative sites. It is a strategic decision that cannot be changed once taken. If at all changed only at considerable loss, the location should be selected as per its own requirements and circumstances. Each individual plant is a case in itself. Businessman should try to make an attempt for optimum or ideal location. What is an ideal location? An ideal location is one where the cost of the product is kept to minimum, with a large market share, the least risk and the maximum social gain. It is the place of maximum net advantage or which gives lowest unit cost of production and distribution. For achieving this objective, small-scale entrepreneur can make use of locational analysis for this purpose.

Locational Analysis Locational analysis is a dynamic process where entrepreneur analyses and compares the appropriateness or otherwise of alternative sites with the aim of selecting the best site for a given enterprise. It consists the following: • Demographic Analysis: It involves study of population in the area in terms of total population (in no.), age composition, per capita income, educational level, occupational structure etc. • Trade Area Analysis: It is an analysis of the geographic area that provides continued clientele to the firm. He would also see the feasibility of accessing the trade area from alternative sites.

Competitive Analysis: It helps to judge the nature, location, size and quality of competition in a given trade area. • Traffic analysis: To have a rough idea about the number of potential customers passing by the proposed site during the working hours of the shop, the traffic analysis aims at judging the alternative sites in terms of pedestrian and vehicular traffic passing a site. • Site economics: Alternative sites are evaluated in terms of establishment costs and operational costs under this. Costs of establishment is basically cost incurred for permanent physical facilities but operational costs are incurred for running business on day to day basis, they are also called as running costs. •

Selection Criteria The important considerations for selecting a suitable location are given as follows: • Natural or climatic conditions. • Availability and nearness to the sources of raw material. • Transport costs-in obtaining raw material and also distribution or marketing finished products to the ultimate users. • Access to market: small businesses in retail or wholesale or services should be located within the vicinity of densely populated areas. • Availability of Infrastructural facilities such as developed industrial sheds or sites, link roads, nearness to railway stations, airports or sea ports, availability of electricity, water, public utilities, civil amenities and means of communication are important, especially for small scale businesses. • Availability of skilled and non-skilled labour and technically qualified and trained managers. • Banking and financial institutions are located nearby. • Locations with links: to develop industrial areas or business centers result in savings and cost reductions in transport overheads, miscellaneous expenses. • Strategic considerations of safety and security should be given due importance. • Government influences: Both positive and negative incentives to motivate an entrepreneur to choose a particular location are made available. Positive includes cheap overhead facilities like electricity, banking transport, tax relief, subsidies and liberalization. Negative incentives are in form of restrictions for setting up industries in urban areas for reasons of pollution control and decentralization of industries. • Residence of small business entrepreneurs want to set up nearby their homelands • One study of locational considerations from small-scale units revealed that the native place or homelands of the entrepreneur was the most important factor. • Heavy preference to homeland suggests that small-scale enterprise is not freely mobile. Low preference for Government incentives suggests that concessions and incentives cannot compensate for poor infrastructure.

Significance From the discussion above, we have already learnt that location of a plant is an important entrepreneurial decision because it influences the cost of production and distribution to a great extent. In some cases, you will find that location may contribute to even 10% of cost of manufacturing and marketing. Therefore, an appropriate location is essential to the efficient and economical working of a plant. A firm may fail due to bad location or its growth and efficiency may be restricted. CHECK YOUR PROGRESS 1. The factor least important to consider when selecting a location for a new furniture store is 1. The weather of the community 2. The future of the community 3. The other businesses in the community 4. The age distribution of the population in the community 2. When selecting a site for a business it is important to 1. Purchase the property when possible b. Lease the property to avoid the problem of mortgage payments c. Rent or buy the property, whichever must be done in order to obtain the specific site d. Make comparisons between the rentals of neighboring stores and property for sale

Plant Layout Plant layout refers to the arrangement of machines, departments, workstations, storage areas, aisles, and common areas within an existing or proposed facility. Layouts have far-reaching implications for the quality, productivity, and competitiveness of a firm. Layout decisions significantly affect how efficiently workers can do their jobs, how fast goods can be produced, how difficult it is to automate a system, and how responsive the system can be to changes in product or service design, product mix, and demand volume. The basic objective of the layout decision is to ensure a smooth flow of work, material, people, and information through the system. Effective layouts also: • Minimize material handling costs; • Utilize space efficiently; • Utilize labor efficiently; • Eliminate bottlenecks; • Facilitate communication and interaction between workers, between workers and their supervisors, or between workers and customers; • Reduce manufacturing cycle time and customer service time;

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Eliminate wasted or redundant movement; Facilitate the entry, exit, and placement of material, products, and people; Incorporate safety and security measures; Promote product and service quality; Encourage proper maintenance activities; Provide a visual control of operations or activities; Provide flexibility to adapt to changing conditions.

Basic Layouts There are three basic types of layouts: process, product, and fixed-position; and three hybrid layouts: cellular layouts, flexible manufacturing systems, and mixed-model assembly lines. We discuss basic layouts in this section and hybrid layouts later in the chapter.

Process Layouts Process layouts, also known as functional layouts, group similar activities together in departments or work centers according to the process or function they perform. For example, in a machine shop, all drills would be located in one work center, lathes in another work center, and milling machines in still another work center. In a department store, women's clothes, men's clothes, children's clothes, cosmetics, and shoes are located in separate departments. A process layout is characteristic of intermittent operations, service shops, job shops, or batch production, which serve different customers with different needs. The volume of each customer's order is low, and the sequence of operations required to complete a customer's order can vary considerably. The equipment in a process layout is general purpose, and the workers are skilled at operating the equipment in their particular department. The advantage of this layout is flexibility. The disadvantage is inefficiency. Jobs or customers do not flow through the system in an orderly manner, backtracking is common, movement from department to department can take a considerable amount of time, and queues tend to develop. In addition, each new arrival may require that an operation be set up differently for its particular processing requirements. Although workers can operate a number of machines or perform a number of different tasks in a single department, their workload often fluctuates--from queues of jobs or customers waiting to be processed to idle time between jobs or customers. Material storage and movement are directly affected by the type of layout. Storage space in a process layout is large to accommodate the large amount of in-process inventory. The factory may look like a warehouse, with work centers strewn between storage aisles. In-process inventory is high because material moves from work center to work center in batches waiting to be processed. Finished goods inventory, on the other hand, is low because the goods are being made for a particular customer and are shipped out to that customer upon completion. Process layouts in manufacturing firms require flexible material handling equipment (such as forklifts) that can follow multiple paths, move in any direction, and carry large loads of inprocess goods. A forklift moving pallets of material from work center to work center needs wide

aisles to accommodate heavy loads and two-way movement. Scheduling of forklifts is typically controlled by radio dispatch and varies from day to day and hour to hour. Routes have to be determined and priorities given to different loads competing for pickup. Process layouts in service firms require large aisles for customers to move back and forth and ample display space to accommodate different customer preferences. The major layout concern for a process layout is where to locate the departments or machine centers in relation to each other. Although each job or customer potentially has a different route through the facility, some paths will be more common than others. Past information on customer orders and projections of customer orders can be used to develop patterns of flow through the shop.

Product Layouts Product layouts, better known as assembly lines, arrange activities in a line according to the sequence of operations that need to be performed to assemble a particular product. Each product or has its own "line" specifically designed to meet its requirements. The flow of work is orderly and efficient, moving from one workstation to another down the assembly line until a finished product comes off the end of the line. Since the line is set up for one type of product or service, special machines can be purchased to match a product's specific processing requirements. Product layouts are suitable for mass production or repetitive operations in which demand is stable and volume is high. The product or service is a standard one made for a general market, not for a particular customer. Because of the high level of demand, product layouts are more automated than process layouts, and the role of the worker is different. Workers perform narrowly defined assembly tasks that do not demand as high a wage rate as those of the more versatile workers in a process layout. The advantage of the product layout is its efficiency and ease of use. The disadvantage is its inflexibility. Significant changes in product design may require that a new assembly line be built and new equipment be purchased. This is what happened to U.S. automakers when demand shifted to smaller cars. The factories that could efficiently produce six-cylinder engines could not be adapted to produce four-cylinder engines. A similar inflexibility occurs when demand volume slows. The fixed cost of a product layout (mostly for equipment) allocated over fewer units can send the price of a product soaring. The major concern in a product layout is balancing the assembly line so that no one workstation becomes a bottleneck and holds up the flow of work through the line. shows the product flow in a product layout. Contrast this with the flow of products through the process layout shown in. A product layout needs material moved in one direction along the assembly line and always in the same pattern. Conveyors are the most common material handling equipment for product layouts. Conveyors can be paced (automatically set to control the speed of work) or unpaced (stopped and started by the workers according to their pace). Assembly work can be performed online (i.e., on the conveyor) or offline (at a workstation serviced by the conveyor). Aisles are narrow because material is moved only one way, it is not moved very far, and the conveyor is an integral part of the assembly process, usually with workstations on either side.

Scheduling of the conveyors, once they are installed, is simple--the only variable is how fast they should operate. Storage space along an assembly line is quite small because in-process inventory is consumed in the assembly of the product as it moves down the assembly line. Finished goods, however, may require a separate warehouse for storage before they are shipped to dealers or stores to be sold. Product and process layouts look different, use different material handling methods, and have different layout concerns. Summarize the differences between product and process layouts.

Fixed-Position Layouts Fixed-position layouts are typical of projects in which the product produced is too fragile, bulky, or heavy to move. Ships, houses, and aircraft are examples. In this layout, the product remains stationary for the entire manufacturing cycle. Equipment, workers, materials, and other resources are brought to the production site. Equipment utilization is low because it is often less costly to leave equipment idle at a location where it will be needed again in a few days, than to move it back and forth. Frequently, the equipment is leased or subcontracted, because it is used for limited periods of time. The workers called to the work site are highly skilled at performing the special tasks they are requested to do. For instance, pipefitters may be needed at one stage of production, and electricians or plumbers at another. The wage rate for these workers is much higher than minimum wage. Thus, if we were to look at the cost breakdown for fixed-position layouts, the fixed cost would be relatively low (equipment may not be owned by the company), whereas the variable costs would be high (due to high labor rates and the cost of leasing and moving equipment). Because the fixed-position layout is specialized, we concentrate on the product and process layouts and their variations for the remainder of this chapter. In the sections that follow, we examine some quantitative approaches for designing product and process layouts.

Designing Process Layouts In designing a process layout, we want to minimize material handling costs, which are a function of the amount of material moved times the distance it is moved. This implies that departments that incur the most interdepartmental movement should be located closest to each other, and those that do not interact should be located further away. Two techniques used to design process layouts, block diagramming and relationship diagramming, are based on logic and the visual representation of data.

Block Diagramming We begin with data on historical or predicted movement of material between departments in the existing or proposed facility. This information is typically provided in the form of a from/to chart, or load summary chart. The chart gives the average number of unit loads transported between the departments over a given period of time. A unit load can be a single unit, a pallet of material, a bin of material, or a crate of material--however material is normally moved from location to location. In automobile manufacturing, a single car represents a unit load. For a ballbearing producer, a unit load might consist of a bin of 100 or 1,000 ball bearings, depending on their size. The next step in designing the layout is to calculate the composite movements between departments and rank them from most movement to least movement. Composite movement, represented by a two-headed arrow, refers to the back-and-forth movement between each pair of departments. Finally, trial layouts are placed on a grid that graphically represents the relative distances between departments in the form of uniform blocks. The objective is to assign each department to a block on the grid so that nonadjacent loads are minimized. The term nonadjacent is defined as a distance farther than the next block, either horizontally, vertically, or diagonally. The trial layouts are scored on the basis of the number of nonadjacent loads. Ideally, the optimum layout would have zero nonadjacent loads. In practice, this is rarely possible, and the process of trying different layout configurations to reduce the number of nonadjacent loads continues until an acceptable layout is found. The layout solution in grid 2 represents the relative position of each department. The next step in the layout design is to add information about the space required for each department. Recommendations for workspace around machines can be requested from equipment vendors or found in safety regulations or operating manuals. In some cases, vendors provide templates of equipment layouts, with work areas included. Workspace allocations for workers can be specified as part of job design, recommended by professional groups, or agreed upon through union negotiations. A block diagram can be created by blocking in the work areas around the departments on the grid. The final block diagram adjusts the block diagram for the desired or proposed shape of the building. Standard building shapes include rectangles, L shapes, T shapes, and U shapes.

Relationship Diagramming The preceding solution procedure is appropriate for designing process layouts when quantitative data are available. However, in situations for which quantitative data are difficult to obtain or do not adequately address the layout problem, the load summary chart can be replaced with subjective input from analysts or managers. Richard Muther developed a format for displaying manager preferences for departmental locations, known as Muther's grid.2 The preference information is coded into six categories associated with the five vowels, A, E, I, O, and U, plus the letter X. As shown in, the vowels match the first letter of the closeness rating for locating two departments next to each other. The diamond-shaped grid is read similar to mileage charts on a road map. For example, reading down the highlighted row in Figure 7.4, it is okay if the offices

are located next to production, absolutely necessary that the stockroom be located next to production, important that shipping and receiving be located next to production, especially important that the locker room be located next to production, and absolutely necessary that the tool room be located next to production. The information from Muther's grid can be used to construct a relationship diagram that evaluates existing or proposed layouts.

Computerized Layout Solutions The diagrams just discussed help formulate ideas for the arrangement of departments in a process layout, but they can be cumbersome for large problems. Fortunately, several computer packages are available for designing process layouts. The best known is CRAFT (Computerized Relative Allocation of Facilities Technique) and CORELAP (Computerized Relationship Layout Planning). CRAFT takes a load summary chart and block diagram as input and then makes pair wise exchanges of departments until no improvements in cost or nonadjacency score can be found. The output is a revised block diagram after each iteration for a rectangular-shaped building, which may or may not be optimal. CRAFT is sensitive to the initial block diagram used; that is, different block diagrams as input will result in different layouts as outputs. For this reason, CRAFT is often used to improve upon existing layouts or to enhance the best manual attempts at designing a layout. CORELAP uses nonquantitative input and relationship diagramming to produce a feasible layout for up to forty-five departments and different building shapes. It attempts to create an acceptable layout from the beginning by locating department pairs with A ratings first, then those with E ratings, and so on. Simulation software for layout analysis, such as PROMODEL and EXTEND provide visual feedback and allow the user to quickly test a variety of scenarios. Three-D modeling and CADintegrated layout analysis are available in VisFactory and similar software. All these computer packages are basically trial-and-error approaches to layout design that provide good, but not necessarily optimal, process layouts.

Service Layouts Most service organizations use process layouts. This makes sense because of the variability in customer requests for service. Service layouts are designed in much the same way as process layouts in manufacturing firms, but the objectives may differ. For example, instead of minimizing the flow of materials through the system, services may seek to minimize the flow of customers or the flow of paperwork. In retail establishments, the objective is usually related to maximizing profit per unit of display space. If sales vary directly with customer exposure, then an effective layout would expose the customer to as many goods as possible. This means instead of minimizing a customer's flow, it would be more beneficial to maximize it (to a certain point). Grocery stores take this approach when they locate milk on one end of the store and bread on the

other, forcing the customer to travel through aisles of merchandise that might prompt additional purchases. Another aspect of service layout is the allocation of shelf space to various products. Industryspecific recommendations are available for layout and display decisions. Computerized versions, such as SLIM (Store Labor and Inventory Management) and COSMOS (Computerized Optimization and Simulation Modeling for Operating Supermarkets), consider shelf space, demand rates, profitability, and stockout probabilities in layout design. Finally, service layouts are often visible to the customer, so they must be aesthetically pleasing as well as functional.

Designing Product Layouts A product layout arranges machines or workers in a line according to the operations that need to be performed to assemble a particular product. From this description, it would seem the layout could be determined simply by following the order of assembly as contained in the bill of material for the product. To some extent, this is true. Precedence requirements specifying which operations must precede others, which can be done concurrently and which must wait until later are an important input to the product layout decision. But there are other factors that make the decision more complicated. Product layouts or assembly lines are used for high-volume production. To attain the required output rate as efficiently as possible, jobs are broken down into their smallest indivisible portions, called work elements. Work elements are so small that they cannot be performed by more than one worker or at more than one workstation. But it is common for one worker to perform several work elements as the product passes through his or her workstation. Part of the layout decision is concerned with grouping these work elements into workstations so products flow through the assembly line smoothly. A workstation is any area along the assembly line that requires at least one worker or one machine. If each workstation on the assembly line takes the same amount of time to perform the work elements that have been assigned, then products will move successively from workstation to workstation with no need for a product to wait or a worker to be idle. The process of equalizing the amount of work at each workstation is called line balancing.

Line Balancing Assembly line balancing operates under two constraints, precedence requirements and cycle time restrictions. Precedence requirements are physical restrictions on the order in which operations are performed on the assembly line. For example, we would not ask a worker to package a product before all the components were attached, even if he or she had the time to do so before passing the product to the next worker on the line. To facilitate line balancing, precedence requirements are often expressed in the form of a precedence diagram. The precedence diagram is a network, with work elements represented by circles or nodes and precedence relationships represented by directed line segments connecting the nodes. We will construct a precedence diagram later in Example 7.2.

Cycle time, the other restriction on line balancing, refers to the maximum amount of time the product is allowed to spend at each workstation if the targeted production rate is to be reached. Desired cycle time is calculated by dividing the time available for production by the number of units scheduled to be produced:

The line balancing process can be summarized as follows: 1. Draw and label a precedence diagram. 2. Calculate the desired cycle time required for the line. 3. Calculate the theoretical minimum number of workstations. 4. Group elements into workstations, recognizing cycle time and precedence constraints. 5. Calculate the efficiency of the line. 6. Determine if the theoretical minimum number of workstations or an acceptable efficiency level has been reached. If not, go back to step 4.

Computerized Line Balancing Line balancing by hand becomes unwieldy as the problems grow in size. Fortunately, there are software packages that will balance large lines quickly. IBM's COMSOAL (Computer Method for Sequencing Operations for Assembly Lines) and GE's ASYBL (Assembly Line Configuration Program) can assign hundreds of work elements to workstations on an assembly line. These programs, and most that are commercially available, do not guarantee optimal solutions. They use various heuristics, or rules, to balance the line at an acceptable level of efficiency. The POM for Windows software lets the user select from five different heuristics: ranked positional weight, longest operation time, shortest operation time, most number of following tasks, and least number of following tasks. These heuristics specify the order in which work elements are considered for allocation to workstations. Elements are assigned to workstations in the order given until the cycle time is reached or until all tasks have been assigned.

Hybrid Layouts Hybrid layouts modify and/or combine some aspects of product and process layouts. We discuss three hybrid layouts: cellular layouts, flexible manufacturing systems, and mixed-model assembly lines.

Cellular Layouts Cellular layouts attempt to combine the flexibility of a process layout with the efficiency of a product layout. Based on the concept of group technology (GT), dissimilar machines are grouped into work centers, called cells, to process parts with similar shapes or processing requirements. Shows a family of parts with similar shapes.) The cells are arranged in relation to each other so that material movement is minimized. Large machines that cannot be split among cells are located near to the cells that use them, that is, at their point of use. The layout of machines within each cell resembles a small assembly line. Thus, line-balancing procedures, with some adjustment, can be used to arrange the machines within the cell. The layout between cells is a process layout. Therefore, computer programs such as CRAFT can be used to locate cells and any leftover equipment in the facility. Consider the process layouts in Machines are grouped by function into four distinct departments. Component parts manufactured in the process layout section of the factory are later assembled into a finished product on the assembly line. The parts follow different flow paths through the shop. Three representative routings, for parts A, B, and C, are shown in the figure. Notice the distance that each part must travel before completion and the irregularity of the part routings. A considerable amount of "paperwork" is needed to direct the flow of each individual part and to confirm that the right operation has been performed. Workers are skilled at operating the types of machines within a single department and typically can operate more than one machine at a time. Gives the complete part routing matrix for the eight parts processed through the facility. In its current form, there is no apparent pattern to the routings. Production flow analysis (PFA) is a group technology technique that reorders part routing matrices to identify families of parts with similar processing requirements. The reordering process can be as simple as listing which parts have four machines in common, then which have three in common, two in common, and the like, or as sophisticated as pattern-recognition algorithms from the field of artificial intelligence. The advantages of cellular layouts are as follows: • Reduced material handling and transit time. Material movement is more direct. Less distance is traveled between operations. Material does not accumulate or wait long periods of time to be moved. Within a cell, the worker is more likely to carry a partially finished item from machine to machine than wait for material handling equipment, as is characteristic of process layouts, where larger loads must be moved farther distances. • Reduced setup time. Since similar parts are processed together, the adjustments required to set up a machine should not be that different from item to item. If it does not take that long to change over from one item to another, then the changeover can occur more frequently, and items can be produced and transferred in very small batches or lot sizes. • Reduced work-in-process inventory. In a work cell, as with assembly lines, the flow of work is balanced so that no bottlenecks or significant buildup of material occurs between stations or machines. Less space is required for storage of in-process inventory between machines, and machines can be moved closer together, thereby saving transit time and increasing communication. • Better use of human resources. Typically, a cell contains a small number of workers responsible for producing a completed part or product. The workers act as a self-managed

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team, in most cases more satisfied with the work that they do and more particular about the quality of their work. Labor in cellular manufacturing is a flexible resource. Workers in each cell are multifunctional and can be assigned to different routes within a cell or between cells as demand volume changes. Easier to control. Items in the same part family are processed in a similar manner through the work cell. There is a significant reduction in the paperwork necessary to document material travel, such as where an item should be routed next, if the right operation has been performed, and the current status of a job. With fewer jobs processed through a cell, smaller batch sizes, and less distance to travel between operations, the progress of a job can be verified visually rather than by mounds of paperwork. Easier to automate. Automation is expensive. Rarely can a company afford to automate an entire factory all at once. Cellular layouts can be automated one cell at a time. Figure 7.12 (on page 302 of your textbook) shows an automated cell with one robot in the center to load and unload material from several CNC machines and an incoming and outgoing conveyor. Automating a few workstations on an assembly line will make it difficult to balance the line and achieve the increases in productivity expected. Introducing automated equipment in a job shop has similar results, because the "islands of automation" speed up only certain processes and are not integrated into the complete processing of a part or product.

Several disadvantages of cellular layouts must also be considered: • Inadequate part families. There must be enough similarity in the types of items processed to form distinct part families. Cellular manufacturing is appropriate for medium levels of product variety and volume. The formation of part families and the allocation of machines to cells is not always an easy task. Part families identified for design purposes may not be appropriate for manufacturing purposes. • Poorly balanced cells. It is more difficult to balance the flow of work through a cell than a single-product assembly line, because items may follow different sequences through the cell that require different machines or processing times. The sequence in which parts enter the cell can thus affect the length of time a worker or machine spends at a certain stage of processing. Poorly balanced cells can be very inefficient. It is also important to balance the workload among cells in the system, so that one cell is not overloaded while others are idle. This may be taken care of in the initial cellular layout, only to become a problem as changes occur in product designs or product mix. Several imbalances may require the reformation of cells around different part families, and the cost and disruption that implies. • Expanded training and scheduling of workers. Training workers to do different tasks is expensive and time-consuming and requires the workers' consent. Initial union reaction to multifunctional workers was not positive. Today, many unions have agreed to participate in the flexible assignment of workers in exchange for greater job security. Although flexibility in worker assignment is one of the advantages of cellular layouts, the task of determining and adjusting worker paths within or between cells can be quite complex. • Increased capital investment. In cellular manufacturing, multiple smaller machines are preferable to single large machines. Implementing a cellular layout can be economical if new machines are being purchased for a new facility, but it can be quite expensive and disruptive in existing production facilities where new layouts are required. Existing

equipment may be too large to fit into cells or may be underutilized when placed in a single cell. Additional machines of the same type may have to be purchased for different cells. The cost and downtime required to move machines can also be high. Cellular layouts have become popular in the past decade as the backbone of modern factories. Cells can differ considerably in size, in automation, and in the variety of parts processed. As small, interconnected layout units, cells are common in services, as well as manufacturing.

Flexible Manufacturing Systems The idea of a flexible manufacturing system (FMS) was proposed in England in the 1960s with

System 24 that could operate without human operators 24 hours a day under computer control. The emphasis from the beginning was on automation rather than the reorganization of work flow. Early FMSs were large and complex, consisting of dozens of CNC machines and sophisticated material handling systems. The systems were very automated, very expensive, and controlled by incredibly complex software. The FMS control computer operated the material handling system, maintained the library of CNC programs and downloaded them to the machines, scheduled the FMS, kept track of tool use and maintenance, and reported on the performance of the system. There are not many industries that can afford the investment required for a traditional FMS as described. Fewer than 400 FMSs are in operation around the world today. Currently, the trend in flexible manufacturing is toward smaller versions of the traditional FMS, sometimes called flexible manufacturing cells. It is not unusual in today's terminology for two or more CNC machines to be considered a flexible cell and two or more cells, an FMS. FMS layouts differ based on the variety of parts that the system can process, the size of the parts processed, and the average processing time required for part completion. Four types of FMS layouts: • Progressive layout: All parts follow the same progression through the machining stations. This layout is appropriate for processing a family of parts and is the most similar to an automated group technology cell. • Closed-loop layout: Arranged in the general order of processing for a much larger variety of parts. Parts can easily skip stations or can move around the loop to visit stations in an alternate order. Progressive and closed-loop systems are used for part sizes that are relatively large and that require longer processing times. • Ladder layout: So named because the machine tools appear to be located on the steps of a ladder, allowing two machines to work on one item at a time. Programming the machines may be based on similarity concepts from group technology, but the types of parts processed are not limited to particular part families. Parts can be routed to any machine in any sequence. • Open-field layout: The most complex and flexible FMS layout. It allows material to move among the machine centers in any order and typically includes several support

stations such as tool interchange stations, pallet or fixture build stations, inspection stations, and chip/coolant collection systems.

Mixed-Model Assembly Lines Traditional assembly lines, designed to process a single model or type of product, can be used to process more than one type of product, but not efficiently. Models of the same type are produced in long production runs, sometimes lasting for months, and then the line is shut down and changed over for the next model. The next model is also run for an extended time, producing perhaps half a year to a year's supply; then the line is shut down again and changed over for yet another model; and so on. The problem with this arrangement is the difficulty in responding to changes in customer demand. If a certain model is selling well and customers want more of it, they have to wait until the next batch of that model is scheduled to be produced. On the other hand, if demand is disappointing for models that have already been produced, the manufacturer is stuck with unwanted inventory. Recognizing that this mismatch of production and demand is a problem, some manufacturers concentrated on devising more sophisticated forecasting techniques. Others changed the manner in which the assembly line was laid out and operated so that it really became a mixed-model assembly line. First, they reduced the time needed to change over the line to produce different models. Then they trained their workers to perform a variety of tasks and allowed them to work at more than one workstation on the line, as needed. Finally, they changed the way in which the line was arranged and scheduled. The following factors are important in the design and operation of mixed-model assembly lines: • Line balancing: In a mixed-model line, the time to complete a task can vary from model to model. Instead of using the completion times from one model to balance the line, a distribution of possible completion times from the array of models must be considered. In most cases, the expected value, or average, times are used in the balancing procedure. Otherwise, mixed-model lines are balanced in much the same way as single-model lines. • U-shaped lines. To compensate for the different work requirements of assembling different models, it is necessary to have a flexible workforce and to arrange the line so that workers can assist one another as needed. • Flexible workforce. Although worker paths are predetermined to fit within a set cycle time, the use of average time values in mixed-model lines will produce variations in worker performance. Hence, the lines are not run at a set speed. Items move through the line at the pace of the slowest operation. This is not to say that production quotas are not important. If the desired cycle time is exceeded at any station on the line, other workers are notified by flashing lights or sounding alarms so that they can come to the aid of the troubled station. The assembly line is slowed or stopped until the work at the errant workstation is completed. This flexibility of workers helping other workers makes a tremendous difference in the ability of the line to adapt to the varied length of tasks inherent in a mixed-model line. • Model sequencing. Since different models are produced on the same line, mixed-model scheduling involves an additional decision--the order, or sequence, of models to be run through the line. From a logical standpoint, it would be unwise to sequence two models back-to-back that require extra long processing times. It would make more sense to mix the assembling of models so that a short model (requiring less than the average time)

followed a long one (requiring more than the average time). With this pattern, workers could "catch up" from one model to the next. Another objective in model sequencing is to spread out the production of different models as evenly as possible throughout the time period scheduled.

Nestle Milk Pack Pakistan Swiss dairy giant Nestle has made Pakistan the home of worlds largest ever milk production plant. The 2 million-liter-a-day Punjab-based milk processing facility will rise to over three million liters in coming years. Pakistan is the world's fourth-largest milk producer, and Asia's second-largest, behind India, so the location of Nestlé's latest investment is fitting. Since Nestle started investing in Pakistan 18 years ago, the company has established the country's largest milk collection network. Today, Nestle collects milk from 140,000 farmers over an area of 100,000 square kilometres in Punjab who, as a result, receive over CHF120 million per year directly from the company. The Nestle investment says much about the extraordinary rate of development of this commodity and the mutually beneficial relationship that Nestle and Pakistan's milk processing industry enjoy. The company has five production facilities in different parts of Pakistan: two multi-product factories in Sheikhupura and Kabirwala, respectively, and three bottled water plants, one in Islamabad and two more in Karachi.

Plant Location As we talk about the plant location of Nestle Milk pack. It is very obvious that this company has gone through the proper channel of research in selcting the location for there plant. It is situated in the center of Punjab. It is an ideal location is one where the cost of the product is kept to minimum, with access to large market share, the least risk and the maximum social gain. It is the place of maximum net advantage or which gives lowest unit cost of production and distribution.

Location Analysis

Nestle locational analysis is a dynamic process which is analyzed and compares the appropriateness or otherwise of alternative sites with the aim of selecting the best site for Nestle milk producing enterprise. It consists the following: • Demographic Analysis: It involves study of population in the area in terms of total population (in no.), age composition, per capita income, educational level, occupational structure etc. The results where as population was limited in rural area away from cities the employment opportunities where made for the locals. Income level has raised by 30%. As most of the skilled labour required should be trained to required job level.

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Trade Area Analysis: It is an analysis of the geographic area that provides continued clientele to the firm. He would also see the feasibility of accessing the trade area from alternative sites. Competitive Analysis: It helps to judge the nature, location, size and quality of competition in a given trade area. Site economics: Alternative sites are evaluated in terms of establishment costs and operational costs under this. Costs of establishment is basically cost incurred for permanent physical facilities but operational costs are incurred for running business on day to day basis, they are also called as running costs. Nestle

Selection Criteria The important considerations for selecting a suitable location are given as follows: • Natural or climatic conditions. • Availability and nearness to the sources of raw material. • Transport costs-in obtaining raw material and also distribution or marketing finished products to the ultimate users. • Access to market: small businesses in retail or wholesale or services should be located within the vicinity of densely populated areas. • Availability of Infrastructural facilities such as developed industrial sheds or sites, link roads, nearness to railway stations, airports or sea ports, availability of electricity, water, public utilities, civil amenities and means of communication are important, especially for small scale businesses. • Availability of skilled and non-skilled labour and technically qualified and trained managers.

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Banking and financial institutions are located nearby. Locations with links: to develop industrial areas or business centers result in savings and cost reductions in transport overheads, miscellaneous expenses. Strategic considerations of safety and security should be given due importance. Government influences: Both positive and negative incentives to motivate an entrepreneur to choose a particular location are made available. Positive includes cheap overhead facilities like electricity, banking transport, tax relief, subsidies and liberalization. Negative incentives are in form of restrictions for setting up industries in urban areas for reasons of pollution control and decentralization of industries. Residence of small business entrepreneurs want to set up nearby their homelands One study of locational considerations from small-scale units revealed that the native place or homelands of the entrepreneur was the most important factor. Heavy preference to homeland suggests that small-scale enterprise is not freely mobile. Low preference for Government incentives suggests that concessions and incentives cannot compensate for poor infrastructure.

Significance From the discussion above, we have already learnt that location of a plant is an important entrepreneurial decision because it influences the cost of production and distribution to a great extent. In some cases, you will find that location may contribute to even 10% of cost of manufacturing and marketing. Therefore, an appropriate location is essential to the efficient and economical working of a plant. A firm may fail due to bad location or its growth and efficiency may be restricted. CHECK PROGRESS 1. The factor least important to consider when selecting a location for a new furnitures store is • The weather of the community • The future of the community • The other businesses in the community • The age distribution of the population in the community 2. When selecting a site for a business it is important to  Purchase the property when possible.  Lease the property to avoid the problem of mortgage payments.  Rent or buy the property, whichever must be done in order to obtain the specific site.  Make comparisons between the rentals of neighboring stores and property for sale.

Purchase Policy

The Board approved the following Purchase Policy, Rules and Procedure. It also desired that the same be reviewed after one year. PURCHASE POLICY, RULES AND PROCEDURE These rules for purchase of equipment/ consumables for Departments/ Sponsored/ Consultancy Projects have been framed in order to provide a conducive working environment for teachers and students to promote excellence expected from institutions like PEC, so that the procurement of the needed equipment/ stores is done in time and without procedural wrangles which permits laboratories and research works to be pursued with greater vigour. DIRECT PURCHASE A buyer may make purchase of goods up to a value of Rs. 15,000/- on each occasion after ensuring the reasonability of prices. The purchase may be effected either through a permanent imprest held in the name of HOD or his nominee/Principal Investigator or through a temporary advance of up to Rs. 15,000/- that may be specifically drawn for the purchase in the name of a buyer or through credit after obtaining the approval of Competent Financial Authority. A certificate in the following format must be recorded: “I, _________________________, am personally satisfied that the goods purchased are of the requisite quality and specifications and have been purchased from a reliable supplier at a reasonable price.” PURCHASE BY PURCHASE COMMITTEE THROUGH SPOT QUOTATIONS Goods up to a value of Rs. 1,00,000/- may be purchased on the recommendation of a local purchase committee. The composition of the committee for such purchase shall consist of at least three faculty members/Group A officers and one representative of the Finance Section. In order to ensue reasonability of the prices, the committee may obtain minimum three quotations from reliable suppliers. The Committee will jointly record a certificate in the following format: “Certified that we, members of the purchase committee, are jointly and individually satisfied that the goods recommended for purchase are of the requisite quality and specifications, priced at the prevailing market rate and the supplier recommended is reliable and competent to supply the goods in question.” If necessary, the committee may make cash purchases by drawing advance up to Rs. 25,000/-. Note: Large Purchases should not be split in smaller lots so as to qualify under direct purchase. PURCHASE THROUGH QUOTATION/TENDER The following procedure for obtaining tenders should be followed as far as possible for purchase of goods/ equipment valuing more than Rs. 1, 00,000/-. Tender should be obtained by: (i) Direct invitation to a limited number of firms (Limited tender) (ii) Advertisement (open tender) (iii) Invitation to one firm only (Single tender) Limited tender system should ordinarily be adopted in the cases of all orders the limited value of which is less than Rs. 25,00,000/-.

The open tender system, that is invitation to the tender by public advertisement and should be adopted in all cases in which the estimated value of the demand is Rs. 25,00,000/- and above. The Single tender system must be adopted in case of articles that are specifically certified as proprietary nature by giving full justification on record. In case of purchase on the basis of single tender/single bidder, the following certificate must be obtained from the vendor: “I/We have not supplied the quoted stores at a rate less than the instant quote within the current financial year.” PROCESSING OF QUOTATIONS Quotations may be invited or received through post/ courier service/ press by the department or Store Purchase Section from the firms listed on the approved panel of suppliers. The quotation letters should be signed by HOD of the concerned department and DDO in the case of central purchase. The notice inviting quotations could be sent by raising an indent or blank NIQ format. A panel of approved vendors for various items shall be maintained by Store purchase section. The buyer may also recommend names of the firms for inclusion in the approved panel. Thereafter, on the due date & time the individual quotations shall be opened in the presence of a Committee of at least three members including one member from the Finance Section and the buyer and an official of the store purchase section or the officer/ official who initially invited the quotations. All the quotations will be signed by the officials present at the time of opening. A comparative statement shall be prepared either by the buyer or the store purchase section as the case may be. The comparative statement along with the quotations will be submitted to the purchase committee for necessary recommendation. The accepted quotations will be circled on the original quotations and on the comparative statement. Also a justification for a particular choice, i.e. being the lowest quotation or on technical grounds should be recorded on the Comparative statement. Normally the purchase shall be approved on the basis of at least three quotations. However, the director / his nominee can relax these conditions on sufficient grounds on the recommendation of the purchase committee. In case of proprietary items may be procured from the proprietary source on the basis of single quotations after certification of the proprietary nature of the item by the supplier/ seller. In such cases, wherever, possible, the purchase price of similar item paid previously may be used as a benchmark to ensure reasonability of price. The store purchase section will prepare the supply order and send the file to audit. The audit shall pre audit the supply order. Since it also maintained budgetary record of recurring/ non-recurring expenditure of all departments, it shall certify availability of funds extra. Thereafter, approval for the purchase shall be obtained from the college purchase committee, if applicable, and the supply order duly checked shall be sent to store purchase section for issue to the vendor. INTERNATIONAL PURCHASE For procurement of items from outside India against the open general import licence or otherwise in foreign currency, all the rules and procedures laid down in earlier shall apply. However, the role of the various purchase committees will be to recommend the purchase rather than make purchases. The quotation should be obtained directly from the foreign supplier or alternatively, the sole selling agent. All further processing including pre audit and placement of order shall be through store purchase section irrespective of the value of the purchase. The procedure of processing subsequent to receipt of goods shall be the same as that of purchase of indigenous stores.

DISCREPANCY IN SUPPLY Where stores supplied are found not acceptable due to damage in transit, wrong supply and are consequently rejected, the department concerned or Store Purchase Section shall immediately notify such rejection specifying the grounds on which such rejection has been made to the supplier directly depending upon who initiated the purchase and take necessary action for getting the items as the specification of the Supply Order. MAINTENANCE OF RECORDS, DISPOSAL/WRITE-OFF STORES, TRANSFER OF STORES This section describes the records pertaining to stores that must be maintained by store purchase section and departments. This section also describes the procedure for stock verification, the procedure for Write-off, Disposal, Transfer of stores from one department to another, Up gradation as well as processing of documents. The following records need to be maintained by department and store purchase section. i) Existing Asset Register one each for college and projects. ii) Existing stock register for consumables/ non-consumables and assets. iii) Existing inventories of officials. WRITE OFF AND DISPOSAL The HOD shall constitute a stores survey and disposal committee of not less than three members at least two of whom class ‘A’ officers. This committee shall survey the non-consumable stores and recommend write-off for items, which are not usable and serviceable. The committee shall record the reasons for recommending write-off. HOD shall forward the report to store purchase section for obtaining the approval of competent financial authority and deletion from the record. TRANSFER OF STORES Transfer of stores within the College from one department to another and from one official to another can be done. A transfer voucher will be filled by official of the department and sent to Store Purchase Section for entering in the records. GENERAL PROCEDURE FOR PROCESS 1. Every HOD who has been delegated with powers for the purchase of consumable and nonconsumable items is expected to exercise the same vigilance in respect of expenditure incurred from public moneys as a person of ordinary prudence would exercise in respect of expenditure of his own pocket. 2. The expenditure should not be prima facie more than the occasion demands. 3. No authority should exercise its power of sanctioning expenditure to pass an order that will be directly or indirectly to its own advantage. 4. The responsibility and accountability of every HOD delegated with financial powers to procure any item or service on is total and indivisible. This College expects that the head of the department will have the public interest in mind and making a procurement decision. This responsibility is not discharged merely by the selection of the cheapest offer but must conform to the following yardsticks of financial propriety: -

a) Whether the offers have been invited in accordance with governing rules and after following a fair and reasonable procedure in the prevailing circumstances. b) Whether the authority is satisfied with the selected offer will adequately meet the requirement for which it is being procured. c) Whether the price on offer is reasonable and consistent with the quality required. d) Above all, whether the offer being accepted is the most appropriate one taking al the relevant factors into account and in keeping with the standard of financial propriety. 5. All purchase orders above a total value of Rs. 25,000/- will be sent to D.D.O for getting the same pre audited /vetted before placing the order with the agency. 6. All purchase cases of value more than Rs. 5,00,000/- will be placed before the college purchase committee (CPC) by the Store Purchase Section for recommendation. STOCK VERIFICATION The HOD shall appoint a committee of at least three faculty members to conduct bi-annual stock verification of all items of various stock registers of the department. IMPLEMENTATION OF THE RULES The College shall lay down guidelines specifying normal time for each of the processing function under these rules so that all actions are completed expeditiously. INTERPRETATION OF THE RULES Wherever difficulties arise in interpreting these rules or relaxations are required for smooth functioning of research and teaching work, the Director shall be the Competent Authority for approval on behalf of the Board of Governors.

Standardization Roadmap for this paper Standardization’s historical record of economic success speaks for itself and needs no further analysis here. The use of standardization in NCPI, however, requires careful attention because its critical value to the IT landscape is not yet widely understood. Here is how the major sections of this paper will present standardization as a new business strategy for NCPI: Standardization vs. Uniqueness Both of these have their proper place in business and in life, but infrastructure of any kind is a clear candidate for standardization, not uniqueness. The contrary trend in NCPI has been toward onetime unique engineering, which has led to systems that are difficult to design, deploy, maintain, and manage. Fundamental Characteristics of Standardized NCPI Standardizing NCPI introduces two simple but powerful fundamental characteristics, modular building-block architecture and

increased human learning. Their intrinsic value is intuitive – most adults can remember the limitless ways of configuring children’s blocks, and no one questions the benefits of learning. Their combined influence on NCPI is profound. From these two fundamental characteristics come an array of benefits that spread throughout the infrastructure and touch nearly every aspect of it. How Standardization Drives NCPI Business Value The clincher for modular standardization is its multi-faceted, point by point contribution to NCPI “business value” – benefit received per dollar spent. The benefits that flow from modular architecture and increased human learning contribute in multiple ways to every one of the three major components of NCPI business value: availability, agility, and total cost of ownership (TCO). (For more about this NCPI business value equation and why it is an appropriate metric, see APC White Paper #117, “Network-Critical Physical Infrastructure: Optimizing Business Value.”) Benefits contribute to business value NCPI business value Value Availability Agility TCO 2005 American Power Conversion. All rights reserved. No part of this publication may be used, reproduced, photocopied, transmitted, or stored in any retrieval system of any nature, without the written permission of the copyright owner. www.apc.com Rev 2005-0 5 Standardization vs. Uniqueness Standardization and uniqueness are familiar opposites. It is not difficult to recognize the crucial, but very distinct, roles played by the two; everyday experience is filled with examples of how each has its proper place in the effective delivery of a product or process. Uniqueness is not for infrastructure Uniqueness can be a wonderful thing. A striking building, Mom’s peach pie, a piano sonata, art of every kind – no one would argue that standardization has any place in experiences valued for their sensory qualities or other interesting characteristics. Certain things are intended to be unique, and they are the better for it. Infrastructure is different. Infrastructure consists of system underpinnings that support and deliver the part of the system we are actually interested in. In each of the above examples there are elements that can be

considered “infrastructure”: the building’s construction materials, Mom’s measuring spoons, the piano keys, the canvas that holds the paint. The job of infrastructure is to be functional and reliable – it is just supposed to work. The time-tested characteristic that makes infrastructure effective, reliable, predictable, and worry-free is the opposite of uniqueness; it is standardization. Because of standardization, the infrastructure of our day-today pursuits has become part of the woodwork of modern life – so commonplace and commonsense that we rarely think about it. One would expect data center infrastructure to follow the same paradigm, but until now there has been little movement in that direction. Nearly 40 years after its birth, IT physical infrastructure is still, in many ways, a craft industry: disparate components from different vendors are typically custom engineered into one large infrastructure system that is unique to the facility. Unique NCPI means unique problems One-time engineering of an entire NCPI results in a unique system, with unique problems that require unique diagnosis and repair – a process that is not only expensive and time-consuming, but also provides little learning that can be applied to further unique problems in the future, or to problems at other data centers in the organization. Standardization eliminates the need for one-time engineering and eliminates the overhead of dealing with unique problems in the infrastructure, freeing up resources for developing the data processing functionality of the IT layer supported by the infrastructure, which is the real mission of the data center. The goal of NCPI standardization is to drive out the inefficiencies and error-prone complexity of one-time unique engineering – to transparently manage the routine business of IT physical infrastructure and create that same signature quality expected of any infrastructure: it just works. 2005 American Power Conversion. All rights reserved. No part of this publication may be used, reproduced, photocopied, transmitted, or stored in any retrieval system of any nature, without the written permission of the copyright owner. www.apc.com Rev 2005-0 6 Configurable solutions using standardized building blocks Customization of connections and components simply to get things to work (the Rube Goldberg effect) adds no real value; it merely introduces complexity and increases opportunities for human error. However, the

ability to configure – and reconfigure – NCPI size or functionality to fit rapidly changing business needs is critical to the effectiveness and value of NCPI. How can standardization be used to advantage when a critical IT requirement is flexibility? As this paper will show, the key to harnessing the power of standardization in a changeable environment is modularity – preengineered, standardized building blocks that can be configured as the user wishes (Figure 1). The ability to quickly assemble standardized components into a logical and understandable configuration to respond to changing functional and financial requirements is one of the primary benefits of NCPI standardization – it is called agility. One step further: Standardized data centers NCPI designed this way – configured from standardized modular elements – provides significant benefits in the deployment and operation of a data center, as described throughout this paper. For broader IT operations that span multiple data centers, the benefits of standardization can be extended even further by deploying the same, or similar, NCPI at all installations – incorporating standardization not only within a data center but also across data centers. Data centers that are the same in as many respects as possible – from the same floor plan to the same labels on circuit breakers – take full advantage of standardization’s enormous potential for efficiencies in design, installation, operation, maintenance, error avoidance, and cost. Most of the benefits described in this paper are magnified significantly when standardized NCPI is deployed in multiple data centers. Figure 1 – Unique engineering vs. standardized modular building blocks Unique one-time engineering Good for art, bad for infrastructure Standardized modular components Changeable, scalable, repeatable, understandable, integrated 2005 American Power Conversion. All rights reserved. No part of this publication may be used, reproduced, photocopied, transmitted, or stored in any retrieval system of any nature, without the written permission of the copyright owner. www.apc.com Rev 2005-0 7 Increased HUMAN LEARNING Standardized NCPI Makes things …

Modular Understandable • Scalable • Changeable • Portable • Swappable • Avoid errors • Anticipate problems • Share knowledge • Increase productivity Value added to EQUIPMENT Value added to PEOPLE Building-block architecture Fundamental Characteristics of Standardized NCPI The benefits of standardization in NCPI affect every dimension: the way it occupies physical space, its functionality, and its evolution over time – from initial design and installation to reconfiguration at each refresh cycle. These benefits take a variety of forms and occur in many places throughout NCPI Modularity: Divide and standardize The cornerstone of standardization in NCPI is modularity. Modularity is achieved by dividing up a complete product or process into smaller chunks – modules – of similar size or functionality that can be assembled as needed to create variations of the original product/process. Flashlight batteries are a familiar example: batteries (modules) are combined in different numbers to obtain varying amounts of power. Blade servers and RAID arrays are examples of modularity in IT equipment – multiple units combined to create varying amounts of server or storage capacity. Modules needn’t be identical: Lego™ bricks are modular, but they are in some ways the same and in some ways different – color, size, and shape are different, but sizes and connections are standardized so that the bricks (modules) can work together as an integrated system. Different modular systems incorporate different amounts of sameness and difference – that is, varying levels of standardization – into their modules, depending upon the desired goal in dividing up functionality. Flashlight batteries, blade servers, and RAID arrays are examples of very basic modularity, with little or no variation in the units that make up a complete system. A more complex system with multiple functions to be integrated – such as NCPI – requires

careful engineering by the manufacturer in order to modularize in ways that optimize the balance between level of standardization and amount of flexibility to users. NCPI provides opportunities for effective modular design at a variety of levels. Some examples: • Interchangeable UPS power and battery modules. Enables scalability of power, redundancy, and runtime and can be hotswapped for repair without system shutdown. • Standardized modular wiring distribution. Breaks down room wiring into row-level or rack-level modules. Eliminates confusing and mistake-prone wiring tangles, and simplifies and speeds the process of unplugrearrangereconnect. Modular power distribution can range from rack-sized units that serve an entire row to power strips that serve a single rack. Rack-level air distribution. Breaks down room airflow into local control at the racks for precise cooling of hot spots. • High-density clusters. Integration of racks, power distribution, and cooling into a selfcontained, enclosed “room” to isolate and cool heat-intensive IT equipment. (In this case, a “module” is the whole integrated cluster.) Modular components with standardized structure and connections make everything easier, faster, and cheaper – from manufacture and inventory at the vendor, through design and engineering at the planning table, to installation and operation at the customer site. Modular design is the source of one critically important component of NCPI business value (agility, the ability to respond to changing or unexpected business opportunities) and a major contributor to the other two (availability and total cost of ownership). • Modular systems are scalable. Modular NCPI can be deployed at a level that meets current IT needs, with the ability to add more later. This ability to “rightsize” can provide a significant reduction in total cost of ownership. • Modular systems are changeable. Modular design provides great flexibility in reconfiguring NCPI to meet changing IT requirements. • Modular systems are portable. Self-contained components, standard interfaces, and understandable structure save time and money when modular systems are installed, upgraded, reconfigured, or moved.

• Modular components are swappable. Modules that fail can be easily swapped out for upgrades or repair – often without system shutdown. The portable and swappable nature of modular components allows work to be done at the factory, both before delivery (such as pre-wiring of power distribution units) or after (such as the repair of power modules). In-factory work has, statistically, a far lower rate of defects than work done on site – for example, factoryrepaired UPS power modules are 500-2000 times less likely to cause outages, introduce new defects, or inhibit return to fully operational status compared to field-repaired modules. The ability to perform factory repair is a significant reliability advantage.2 For larger IT operations that occupy multiple facilities, modular architecture facilitates keeping as much as possible the same between installations (see earlier paragraph, One step further: Standardized data centers.) Selected elements of a master NCPI design can be modified, added, or eliminated to accommodate differences in size or function between data centers without affecting other parts of the design, thereby maximizing the extent of infrastructure the data centers have in common. Human learning: The power of understanding Modularity enhances the effectiveness of equipment. Understandability enhances the effectiveness of people. Standardization is, by its nature, a simplifying process; a standardized system facilitates learning at every level. Increased knowledge and understanding enables people to work more efficiently and with fewer mistakes, helps them to teach others, and empowers them to participate in problem-solving. In a standardized environment, things are not only more understandable but also more predictable and repeatable, making problems less likely to occur and easier to recognize when they do. When things are easier to understand and more predictable, they are easier to explain, to document, to operate, to troubleshoot, and to fix. As these effects build upon each other, they enable staff to: • Avoid errors. The most significant human-learning effect of standardization is reduced human error in the data center. Studies have shown that human error is the cause of 50-60% of data center downtime,3 and the potential to reduce it represents the single largest user entitlement to increased availability. Reducing human error is a classic benefit of standardization – from fewer errors in a standardized assembly process to fewer errors in diagnosing trouble in a standardized system. Standardized systems make documentation and training easier and more effective, resulting in more

skilled staff who are less likely to make mistakes. Standardized controls, interfaces, and connections provide additional protection by making correct operation more self-evident. If documentation itself is standardized, error-avoidance is further enhanced by having information easily accessible in expected places and formats. • Anticipate problems. Understanding how things work, combined with standardized procedures for such things as equipment monitoring and predictive maintenance, is a powerful defense against what might otherwise be considered “unexpected.” • Share knowledge. Having structure and function “make sense” fosters ongoing learning by encouraging sharing of information – when people understand things, they are more likely to engage in conversation, collaborate on analysis and problem-solving, and learn from each other. This enhanced climate of knowledge and insight permeates everything that needs to be done with, or understood about, NCPI. • Increase productivity. As these learning effects interact and proliferate, there is an overall increase in productivity. A more knowledgeable staff means that time spent on NCPI-related matters is used more efficiently. With equipment and procedures easier to understand, less time is spent training and being trained. With reduced human error, less time is spent recovering from human-caused problems and less help desk time is spent responding to calls related to such problems. All these economies of time free up human resources for the functional business of the data center – the work of the IT equipment that is powered, cooled, and protected by NCPI – rather than for management of the NCPI layer itself. How Standardization Drives NCPI Business Value As shown in the previous section, modular structure and increased human learning – two fundamental and empowering characteristics of standardized NCPI – provide a wide range of direct and commonsense benefits. This section will look at standardization more closely, and from a different viewpoint – a bottom-line viewpoint – to demonstrate, point by point, the value of standardization to the enterprise. Modularity and increased human learning spawn benefits in three critical areas of performance which, taken together, constitute the business value of NCPI. The NCPI business value “equation” What gives Network-Critical Physical Infrastructure high business value? Since its primary function is to keep the IT operation up and running, availability is the first component of NCPI business value. The ability to respond quickly to changing IT needs is also critical to success, making agility another important component. The total cost of buying and operating NCPI over its lifetime – total cost of ownership, or TCO –

is the third major component of business value (Figure 3). (For more about NCPI business value, see APC Reliability of equipment. Standardized modular components can be mass produced in greater volume than non-modularized systems, which reduces production defects. Modular components can be returned to the manufacturer for factory service, which greatly improves the quality of repairs. (For more about these two advantages, see earlier section, Fundamental Characteristics of Standardized NCPI.) In addition, modular systems with standardized hookups can be configured at the factory the same way they will be configured on site, allowing for factory pre-testing to discover defects. Standardized modular components facilitate internal redundancy (no downtime at the time of component failure) and hot-swap replacement (no downtime during swap-out of a failed component). Standardized equipment monitoring systems enable easy-to-understand management tools that encourage predictive maintenance to identify problems before they escalate from trouble to major expense, and to reduce reliance on scheduled preventative maintenance, which creates additional exposure to human error. Mean time to recover (MTTR). A failed modular component can be quickly swapped-out for replacement, so recovery isn’t delayed while waiting for repair. Standardization makes things easier to understand and operate, making diagnosis of problems faster and increasing the potential for diagnosis and correction by the user. Human error. Of all the ways to increase availability, reducing human error offers by far the greatest opportunity. With standardized equipment and procedures, functionality is more transparent, routines are simplified and easier to learn, and things operate as expected – all reducing the likelihood of everything from typing the wrong command to pulling the wrong plug. Speed of deployment. With modular components, planning and design is faster because the system’s structure can be configured in a logical way that aligns with design objectives, both in the physical arrangement of units and by using only the number and type of units needed to meet the current IT

requirements. Deployment does not have to wait while management tries to justify the expense of an oversized data center design that attempts to predict the future ten years out. Special NCPI requirements don’t adversely affect planning time because flexibility of design is built into modular architecture. Delivery is faster because standardized, mass-produced units can be inventoried and ordered “off the shelf.” On-site configuration and hookup is faster not only because connections are standardized and simplified, but also because there is less equipment to install when using only the number of building blocks needed. Commissioning is faster because standardized modules can be connected up at the factory just as they will be on site, allowing for factory pre-test. Compared to traditional “legacy” all-in-one-piece infrastructure with static custom design and one-time engineering, these efficiencies combine to cut concept-tocommissioning time from months to weeks, and reconfiguration time from weeks to days. In addition, the time taken at all stages of deployment is further shortened by the next attribute – the ability to scale the design to meet only current IT requirements, thereby deploying a smaller infrastructure with less equipment than in typical legacy systems. Ability to scale. With modular building-block architecture, functionality is available in bite-sized pieces that can be optimally configured for IT spaces of any size, from wiring closets to large data centers. Of even greater significance is the ability to design the infrastructure to support only the IT requirements needed at startup. Then, as IT requirements increase, more building blocks can be added without re-engineering the whole system and without the need for shutdown of critical equipment. This strategy of “rightsizing” can result in significant cost savings over the life of the data center. (See APC White Paper #37, “Avoiding Costs From Oversizing Data Center and Network Room Infrastructure.”) Ability to reconfigure. With typical IT refresh cycles of two years, the ability to reconfigure, upgrade, or move is a significant component of NCPI agility. Modular elements can be unplugged, rearranged, and reconnected. Beyond reconfiguration driven by business need, there is also the steady increase in power density of IT equipment

resulting from shrinking physical size – blade servers – which will periodically require reconfiguration of racks, power, and cooling. Modular hot-swappable components also provide the ability to reconfigure for different levels of redundancy, different voltages, or different plug types. Not only does modular structure simplify the physical process of disconnecting, moving, and reconnecting, but the manufacturer’s careful design of the equipment’s modularity can minimize the need for redesign and maximize the ability to reuse equipment in a new configuration. Capital cost. Standardized modular architecture reduces capital cost in two major ways: (1) It enables the infrastructure size to be scaled to align more closely with present IT requirements, rather than building out initial capacity to support the maximum projected requirements – you only buy what you need – and (2) its straightforward and understandable structure simplifies every step of the deployment process, from planning to installation. That simplification means less time spent in each stage, and often means a reduced need to bring in outside help. For example, standardized modular power distribution at the rack level provides cost savings from both scalability and simplicity: power and cabling can be deployed for only the racks installed, reducing the need for electrical contract work to wire the room. Similarly, standardized modular rack units with integrated cabling and airflow provide infrastructure scalability and simplified design and installation that minimizes the need for design consulting and custom installation services. (For more about the substantial cost savings that can be obtained from properly scaling infrastructure size – “rightsizing” – see APC White Paper #37, “Avoiding Costs From Oversizing Data Center and Network Room Infrastructure.”) Non-energy Operating cost. Simplified, easytolearn design means training is faster and more effective, and operation/maintenance procedures are more efficient and less prone to mistakes. Standardized, understandable equipment and procedures mean more maintenance can be done by IT staff, reducing the need for vendor-supplied maintenance. Standardized equipment monitoring systems enable easy-to-understand management tools that encourage predictive maintenance to

identify problems before they escalate from trouble to major expense. Standardized modular components enable swapping out of modules for factory service, which is more reliable and less expensive than on-site repair. Fewer help-desk resources are needed to support downtime-related issues, because of the overall improvement in availability (see earlier section How Standardization Increases AVAILABILITY). Energy cost. Electricity cost over the lifetime of the data center is the single largest component of TCO. Scaling the infrastructure to meet present IT needs, with the ability to add on incrementally as IT needs grow, means you only power and cool what you need. The resulting savings in electricity are substantial over the life of the data center. Modular internal UPS design enables UPS sizing more closely matched to load requirement, resulting in better UPS operating efficiency and reducing the size of the UPS modules needed to achieve redundancy. Modular cooling design, such as rack-level air distribution units, enables more accurate airflow for increased cooling efficiency, so less energy is consumed by cooling equipment.

Induction Process 10 things to think about when implementing an employee induction process 1. Identify the business objectives and desired benefits Effective induction can have many benefits including reducing turnover costs, engaging and motivating new and existing employees, contributing to the implementation of good systems and processes and gaining feedback and ideas from new hires looking at an organisation through “fresh eyes”. Thinking about how a new or improved induction process could benefit your organisation will help you determine the focus and shape of the programme. If you are keen to help new hires build internal networks for example, a programme which brings all new hires together may be important. If your key business driver is to ensure consistent standards and messages across a multi-site organisation, an e-learning solution may be most appropriate. 2. Secure early commitment Don’t underestimate the powerful effect that induction can have in developing commitment to a new organisation. A good induction process shows that the company cares and is committed to

setting people up for success. It can also help to identify problems or barriers at an early stage and allow the appropriate action to be taken. Conversely a poor induction experience could make some new entrants doubt their decision to join your organisation representing a risk in terms of future retention and reputation. 3. Agree roles and responsibilities of different players in the process Clearly identify the roles and responsibilities of the different players in the induction process. These may include the HR/ L&D functions, the line manager, the administration function, mentors or buddies and of course the individual themselves. This is perhaps best achieved via a detailed induction checklist which allocates specific responsibilities and timelines to the various stakeholders. 4. Think of induction as a journey Thinking about your induction process as a journey rather than a one-off event is essential. It may be useful to consider the induction journey in terms of the first 3 days, first 3 weeks and first 3 months. This approach might include a mini induction during the first 3 days with an immediate supervisor covering essentials such as security, housekeeping, organisation charts, initial objectives and introductions to key personnel. A more comprehensive induction training session may follow during the first 3 weeks and then a review meeting after 3 months to check that everything is on track. Giving consideration to what post-programme support may be needed is also important. This may include additional training, quick reference guides, key contact lists or personal support which could be provided by mentors or buddies. 5. Engage staff prior to joining A good induction process should start from the moment an employee accepts an offer with your organisation. Develop a comprehensive induction checklist and also give thought to what could be covered pre-arrival to prepare someone for life within your organisation. This may include a pre-joining visit, regular phone and email contact or access to the company intranet site. Ensuring that all the relevant administrative and IT arrangements are in place will also be a big factor in getting a new employee up and running as soon as possible and creating good first impression. 6. Have clear learning objectives for training sessions When designing content for induction training, it is important to start by identifying the desired outcomes of the training. Michael Meighan advises thinking in terms of what a new entrant “must know”, “should know” and “could know”. The “must knows” will include key policies and procedures, regulatory, health and safety and personnel matters essential for a person to do their particular job. “Should knows” may be things that the person ought know in order to fit in within the organisation and “could knows” may be of interest but would not be essential for a new entrant to do their job e.g. organisational history. When designing the training also ensure

that training sessions and induction materials take account of different learning preferences and where possible include a variety of delivery styles. 7. Respect the induction needs of different audiences One size does not necessarily fit all and recognising that different groups of new employees may have varying induction needs is essential. Within the same organisation, the induction needs of a senior director, a school leaver and indeed a returning expatriate are likely to be quite different. Whilst the fundamentals of the induction process may remain the same, ensuring that the content of induction training sessions is appropriately tailored and relevant to the needs of different audiences will be vital in securing engagement. 8. Ensure a quality experience For most people, the induction programme will be their first experience with the Learning and Development function within the organisation - and all too often this can be less than positive. It is important to remember that this is a unique opportunity for L&D to “set out its stall” with new hires. Developing carefully tailored content and choosing competent trainers who motivate and engage their audiences will be key ingredients in delivering a high quality experience. 9. Keep induction material up to date All too often organisations will make a significant investment in designing a new induction process and then fail to keep key content up to date. It is vital that at the outset an owner for the process is identified and it is agreed how induction content will be updated by key stakeholders on an on-going basis. Using e-based induction materials can be one way to ensure that it can be easily maintained and updated. Whilst this may mean a more significant up-front investment, ebased induction materials may also help reduce expenditure on classroom based training and the associated travel and delivery costs particularly in multi-site organisations. 10. Evaluation Finally, as with any new process it is important to continuously evaluate the success of your induction process and make appropriate changes as required. Some measures which may be helpful in assessing the success of your approach could include: 1) Feedback from new hires who have gone through the process – this could take the from of course evaluation sheets if you are delivering an induction training session or could be achieved via 1:1 interviews with a selected group of new entrants after their first 3 months with the organisation. 2) Retention rates for new entrants – monitoring these will be particularly important for organisations who implemented a new process in an attempt to reduce attrition levels amongst new joiners. 3) Exit Interviews – data from individuals choosing to leave the organisation can provide valuable information about the success of an induction process. 4) Monitoring common queries – where your organisation has a HR Service Centre it may also

be useful to monitor the types of common queries coming from new joiners to review whether additional information should be included in the induction process 5) Employee Engagement Survey – where your organisation has a regular employee engagement survey, this could prove valuable in measuring changes in levels of commitment and engagement following the introduction of a new induction process. Positive outcomes of a good induction process • High levels of motivation and commitment amongst new employees. • High retention rates for new joiners within the organisation. • Positive influence on existing staff involved in the induction process – who are reminded of the positives attributes of their organisation and motivated by their involvement in the process • Organisation is perceived externally as a good employer, who cares and works hard to integrate new staff – likely to act as a positive attraction tool for new hires. • Positive impact on the implementation of processes and procedures within the organisation. induction training and induction checklist induction training design guide and free induction training checklist Induction Training is absolutely vital for new starters. Good induction training ensures new starters are retained, and then settled in quickly and happily to a productive role. Induction training is more than skills training. It's about the basics that seasoned employees all take for granted: what the shifts are; where the notice-board is; what's the routine for holidays, sickness; where's the canteen; what's the dress code; where the toilets are. New employees also need to understand the organisation's mission, goals, values and philosophy; personnel practices, health and safety rules, and of course the job they're required to do, with clear methods, timescales and expectations. On the point of values and philosophy, induction training offers a wonderful early opportunity to establish clear foundations and expectations in terms of ethics, integrity, corporate social responsibility, and all the other converging concepts in this area that are the bedrock of all good modern responsible organisations. See also love and spirituality in organisations: trainers and new starters - anyone - can bring compassion and humanity to work. The starting point is actually putting these fundamantal life-forces on the workplace agenda. Professionally organized and delivered induction training is your new employees' first proper impression of you and your organization, so it's also an excellent opportunity to reinforce their decision to come and work for you. Proper induction training is increasingly a legal requirement. Employers have a formal duty to provide new employees with all relevant information and training relating to health and safety particularly. As a manager for new employees it's your responsibility to ensure that induction training is properly planned. Even if head office or another 'centre' handles induction training - you must

make sure it's planned and organised properly for your new starter. An induction training plan must be issued to each new employee, before the new employee starts, and copied to everyone in the organisation who's involved in providing the training, so the new starter and everyone else involved can see what's happening and that everything is included. Creating and issuing a suitable induction plan for each new starter will help them do their job better and quicker, and with less dependence on your time in the future. Employees who are not properly inducted need a lot more looking after, so failing to provide good induction training is utterly false economy. As with other types of training, the learning can and development can be achieved through very many different methods - use as many as you need to and which suit the individuals and the group, but remember that induction training by its nature requires a lot more hand-holding than other types of training. Err on the side of caution - ensure people are looked after properly and not left on their own to work things out unless you have a very specific purpose for doing so, or if the position is a senior one. As with other forms of training their are alternatives to 'chalk and talk' classroom-style training. Participation and 'GAAFOFY' methods (Go Away And Find Out For Yourself) can be effective, particularly for groups and roles which require a good level of initiative. Here are some examples of training methods which can be used to augment the basics normally covered in classroom format: •

on the job coaching

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mentoring

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delegated tasks and projects

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reading assignments

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presentation assignments

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attending internal briefings and presentations, eg 'lunch and learn' format

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special responsibilities which require obtaining new skills or knowledge or exposure

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video

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internet and e-learning

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customer and supplier visits

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attachment to project or other teams

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job-swap

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shadowing (shadowing another employee to see how they do it and what's involved).

Be creative as far as is realistic and practicable. Necessarily induction training will have to include some fairly dry subjects, so anything you can do to inject interest, variety, different formats and experiences will greatly improve the overall induction process. There are lots of ideas for illustrating concepts and theories relating to induction training on the acronyms page (warning: contains adult content), and also thestories page. Induction training must include the following elements: •

General training relating to the organisation, including values and philosophy as well as structure and history, etc.

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Mandatory training relating to health and safety and other essential or legal areas.

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Job training relating to the role that the new starter will be performing.

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Training evaluation, entailing confirmation of understanding, and feedback about the quality and response to the training.

And while not strictly part of the induction training stage, it's also helpful to refer to and discuss personal strengths and personal development wishes and aspirations, so that people see they are valued as individuals with their own unique potential, rather than just being a name and a function. This is part of making the job more meaningful for people - making people feel special and valued - and the sooner this can be done the better. For example the following question/positioning statement is a way to introduce this concept of 'whole-person' development and value: "You've obviously been recruited as a (job title), but we recognise right from the start that you'll probably have lots of other talents, skills, experiences (life and work), strengths, personal aims and wishes, that your job role might not necessarily enable you to use and pursue. So please give some thought to your own special skills and unique potential that you'd like to develop (outside of your job function), and if there's a way for us to help with this, especially if we see that there'll be benefits for the organisation too (which there often are), then we'll try to do so..." Obviously the organisation needs to have a process and capacity for encouraging and assisting 'whole person development' before such a statement can be made during induction, but if and when such support exists then it makes good sense to promote it and get the ball rolling as early as possible. Demonstrating an true investment in people - as people, not just employees greatly increases feelings of comfort and satisfaction among new-starters. It's human nature each of us feels happier when someone takes a genuine interest in us as an individual. Including a learning styles self-assessment questionnaire or a multiple intelligences selfassessment questionnaire within the induction process also helps to 'draw out' strengths and preferences among new starters, and will additionally help build a platform for meaningful work and positive relations between staff and employer. Ensure that new starters are given control of

these self-tests - it is more important that they see the results than the employer, although it's fine and helpful for the employer to keep a copy provided permission is sought and given by the staff members to do so. Line-managers will find it easier to manage new starters if they know their strengths and styles and preferences. Conducting a learning styles assessment also helps the induction trainer to deliver induction training according to people's preferred learning styles. So much of conventional induction training necessarily involves 'putting in' to people (knowledge, policies, standards, skills, etc); so if the employer can spend a little time 'drawing out' of people (aims, wishes, unique personal potential, etc) - even if it's just to set the scene for 'whole person development' in the future - this will be a big breath of fresh air for most new starters. Use a feedback form of some sort to check the effectiveness and response to induction training induction training should be a continuously evolving and improving process. Free examples of training feedback forms and induction training feedback forms are available on the free resources section. Take the opportunity to involve your existing staff in the induction process. Have them create and deliver sessions, do demonstrations, accompany, and mentor the new starters wherever possible. This can be helpful and enjoyable for the existing staff members too, and many will find it rewarding and developmental for themselves. When involving others ensure delivery and coverage is managed and monitored properly. Good induction training plans should feature a large element of contact with other staff for the new person. Relationships and contacts are the means by which organisations function, get things done, solve problems, provide excellent service, handle change and continually develop. Meeting and getting to know other people are essential aspects of the induction process. This is especially important for very senior people - don't assume they'll take care of this for themselves - help them to plan how to meet and get to know all the relevant people inside and outside the organisation as soon as possible. Certain job roles are likely to be filled by passive introverted people (Quality, Technical, Production, Finance - not always, but often). These people often need help in getting out and about making contacts and introductions. Don't assume that a director will automatically find their way to meet everyone - they may not - so design an induction plan that will help them to do it.

induction training checklist Here is a simple checklist in three sections, to help you design an induction plan to suit your particular situation(s).

See also the free induction training checklist working tool with suggested training items (which is an MSExcel working file version of this page). Whilst the order of items is something that you must decide locally, there is some attempt below to reflect a logical sequence and priority for induction training subjects. Consider this an induction checklist - not an agenda. This checklist assumes the induction of an operational or junior management person into a job within a typical production or service environment. (See the training planner and training/lesson plan calculator tool, which are templates for planning and organising these induction training points, and particularly for planning and organising the delivery of job skills training and processes, and transfer of knowledge and policy etc.) general organisational induction training checklist •

Essential 'visitor level' safety and emergency procedures

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Washrooms

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Food and drink

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Smoking areas and policy

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Timings and induction training overview

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Organisational history and background overview

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Ethics and philosophy

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Mission statement(s)

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Organisation overview and structure

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Local structure if applicable

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Departmental structure and interfaces

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Who's who (names, roles, responsibilities)

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Site layout

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Other sites and locations

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Dress codes

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Basic communications overview

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Facilities and amenities

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Pay

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Absenteeism and lateness

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Holidays

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Sickness

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Health insurance

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Pension

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Trades Unions

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Rights and legal issues

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Personnel systems and records overview

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Access to personal data

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Time and attendance system

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Security

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Transport and parking

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Creche and childcare

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Grievance procedures

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Discipline procedures

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Career paths

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Training and development

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Learning Styles Self-Assessment

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Multiple Intelligences Self-Assessment

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Appraisals

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Mentoring

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Awards and Incentives

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Health and Safety, and hazard reporting

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Physical examinations, eye test etc.

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Emergency procedures, fire drill, first aid

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Accident reporting

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Personal Protective Equipment

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Use, care, and issue of tools and equipment

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Other housekeeping issues

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General administration

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Restricted areas, access, passes job and departmental induction training checklist

The induction training process also offers the best opportunity to help the new person more quickly integrate into the work environment - particularly to become known among other staff members. Hence the departmental tours and personal introductions are an absolutely vital part of induction. Organisations depend on its people being able to work together, to liaise and cooperate - these capabilities in turn depend on contacts and relationships. Well-planned induction training can greatly accelerate the development of this crucial organisational capability. •

Local departmental amenities, catering, washrooms, etc.

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Local security, time and attendance, sickness, absenteeism, holidays, etc.

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Local emergency procedures

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Local departmental structure

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Department tour

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Departmental functions and aims

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Team and management

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People and personalities overview (extremely helpful, but be careful to avoid sensitive or judgemental issues)

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Related departments and functions

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How the department actually works and relates to others

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Politics, protocols, unwritten rules (extremely helpful, but be careful to avoid sensitive or judgemental issues)

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The work-flow - what are we actually here to do?

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Customer service standards and service flow

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How the job role fits into the service or production process

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Reporting, communications and management structures

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Terminology, jargon, glossary, definitions of local terms

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Use and care of issued equipment

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Work space or workstation

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Local housekeeping

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Stationery and supplies

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Job description - duties, authority, scope, area/coverage/territory

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Expectations, standards, current priorities

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Use of job specific equipment, tools, etc.

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Use of job specific materials, substances, consumables

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Handling and storage

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Technical training - sub-categories as appropriate

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Product training - sub-categories as appropriate

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Services training - sub-categories as appropriate

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Job specific health and safety training

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Job-specific administration, processing, etc.

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Performance reporting

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Performance evaluation

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Training needs analysis method and next steps

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Initial training plans after induction

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Training support, assistance, mentor support

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Where to go, who to call, who to ask for help and advice

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Start of one-to-one coaching

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Training review times and dates

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Development of personal objectives and goals

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Opportunities for self-driven development

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Virtual teams, groups, projects open to job role

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Social activities and clubs, etc.

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Initial induction de-brief and feedback

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Confirmation of next training actions

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Wider site and amenities tour other induction training activities for managerial, executive, field-based or international roles

Here are some typical activities to include in the induction training plans for higher level people. The aim is to give them exposure to a wide variety of experiences and contacts, before the pressures of the job impact and limit their freedom. As with all roles, induction also serves the purpose of integrating the new person into the work environment - getting them known. Induction training is not restricted to simply training the person; induction is also about establishing the new person among the existing staff as quickly as possible. This aspect of induction is particularly important for technical personalities and job roles, who often are slower to develop relationships and contacts within the organisation. •

Site tours and visits

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Field accompaniment visits with similar and related job roles

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Customer visits

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Supplier and manufacturer visits

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Visits and tours of other relevant locations, sites and partners

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Attendance of meetings and project groups

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Shop-floor and 'hands-on' experiences (especially for very senior people)

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Attendance at interesting functions, dinners, presentations, etc.

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Exhibition visits and stand-manning

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Overseas visits - customers, suppliers, sister companies, etc.

structuring the induction training plan You should strive to organise the induction plan and give it to the new starter before they join you. This means thins need to be planned well in advance because the plan will necessarily involve other people's time and availability.

Develop a suitable template, into which you can slot the arranged activities. Depending on the needs of the situation the induction training plan may extend over a number of weeks, progressively reducing the pre-arranged induction content, as the person settles into their job. Here's an example of how a week's induction might be shown using a template planner. A schedule is also a useful method for circulating and thereby confirming awareness and commitment among staff who will be involved with the induction of the the new starter. Seeing a professionally produced induction plan like this is also very reassuring to the new starter, and helps make a very positive impression about their new place of work. Adding a notes and actions section helps the new starter to keep organised during a time that for most people can be quite pressurised and stressful. Anything you can do to make their lives easier will greatly help them to settle in. get up to speed, and become a productive member of the team as quickly as possible. induction training plan example induction training plan (name, date, organisation, etc) mon

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notes & action s induction training review and feedback As with any type of training, it is vital to review and seek feedback after induction training. Different induction feedback templates and sample forms are available on the free resources section. It is particular important to conduct exit interviews with any new starters who leave the organisation during or soon after completing their induction training. Large organisations need to analyse overall feedback results from new starters, to be able to identify improvements and continuously develop induction training planning. Seek feedback also from staff who help to provide the induction training for new starters, and always give your own positive feedback, constructive suggestions, and thanks, to all those involved in this vital process.

Quality PRACTICAL CONSIDERATIONS IN DEVELOPING QA/QC SYSTEMS Implementing QA/QC procedures requires resources, expertise and time. In developing any QA/QC system, it is expected that judgements will need to be made on the following: • Resources allocated to QC for different source categories and the compilation process; • Time allocated to conduct the checks and reviews of emissions estimates; • Availability and access to information on activity data and emission factors, including data quality; • Procedures to ensure confidentiality of inventory and source category information, when required; • Requirements for archiving information; • Frequency of QA/QC checks on different parts of the inventory; • The level of QC appropriate for each source category; • Whether increased effort on QC will result in improved emissions estimates and reduced uncertainties; • Whether sufficient expertise is available to conduct the checks and reviews. In practice, the QA/QC system is only part of the inventory development process and inventory agencies do not have unlimited resources. Quality control requirements, improved accuracy and reduced uncertainty need to be

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balanced against requirements for timeliness and cost effectiveness. A good practice system seeks to achieve that balance and to enable continuous improvement of inventory estimates. Within the QA/QC system, good practice provides for greater effort for key source categories and for those source categories where data and methodological changes have recently occurred, than for other source categories. It is unlikely that inventory agencies will have sufficient resources to conduct all the QA/QC procedures outlined in this chapter on all source categories. In addition, it is not necessary to conduct all of these procedures every year. For example, data collection processes conducted by national statistical agencies are not likely to change significantly from one year to the next. Once the inventory agency has identified what quality controls are in place, assessed the uncertainty of that data, and documented the details for future inventory reference, it is unnecessary to revisit this aspect of the QC procedure every year. However, it is good practice to check the validity of this information periodically as changes in sample size, methods of collection, or frequency of data collection may occur. The optimal frequency of such checks will depend on national circumstances. While focusing QA/QC activities on key source categories will lead to the most significant improvements in the overall inventory estimates, it is good practice to plan to conduct at least the general procedures outlined in Section 8.6, General QC Procedures (Tier 1), on all parts of the inventory over a period of time. Some source categories may require more frequent QA/QC than others because of their significance to the total inventory estimates, contribution to trends in emissions over time or changes in data or characteristics of the source category, including the level of uncertainty. For example, if technological advancements occur in an industrial source category, it is good practice to conduct a thorough QC check of the data sources and the compilation process to ensure that the inventory methods remain appropriate. It is recognised that resource requirements will be higher in the initial stages of implementing any QA/QC system than in later years. As capacity to conduct QA/QC procedures develops in the inventory agency and in other associated organisations, improvements in efficiency should be expected. General QC procedures outlined in Table 8.1, Tier 1 General Inventory Level QC Procedures, and a peer review of the inventory estimates are considered minimal QA/QC activities for all inventory compilations. The general procedures require no additional expertise in addition to that needed to develop the estimates and compile the inventory and should be performed on estimates developed using Tier 1 or higher tier methods for source categories. A review of the final inventory report by a person not involved in the compilation is also good practice, even if the inventory were compiled using only Tier 1 methods. More extensive QC and more rigorous review processes are encouraged if higher tier methods have been used. Availability of appropriate expertise

may limit the degree of independence of expert reviews in some cases. The QA/QC process is intended to ensure transparency and quality. Quality Assurance and Quality Control Chapter 8 8.6 IPCC Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories There may be some inventory items that involve confidential information, as discussed in Chapters 2 to 5. The inventory agency should have procedures in place during a review process to ensure that reviewers respect that confidentiality. 8 .3 ELEMENTS OF A QA/QC SYSTEM The following are the major elements to be considered in the development of a QA/QC system to be implemented in tracking inventory compilation: • An inventory agency responsible for coordinating QA/QC activities; • A QA/QC plan; • General QC procedures (Tier 1); • Source category-specific QC procedures (Tier 2); • QA review procedures; • Reporting, documentation, and archiving procedures. For purposes of the QA/QC system, the Tier 2 QC approach includes all procedures in Tier 1 plus additional source category-specific activities. 8 .4 INVENTORY AGENCY The inventory agency is responsible for coordinating QA/QC activities for the national inventory. The inventory agency may designate responsibilities for implementing and documenting these QA/QC procedures to other agencies or organisations. The inventory agency should ensure that other organisations involved in the preparation of the inventory are following applicable QA/QC procedures. The inventory agency is also responsible for ensuring that the QA/QC plan is developed and implemented. It is good practice for the inventory agency to designate a QA/QC coordinator, who would be responsible for ensuring that the objectives of the QA/QC programme are implemented. 8 .5 QA/QC PLAN A QA/QC plan is a fundamental element of a QA/QC system, and it is good practice to develop one. The plan should, in general, outline QA/QC activities that will be implemented, and include a scheduled time frame that follows inventory preparation from its initial development through to final reporting in any year. It should contain an outline of the processes and schedule to review all source categories. The QA/QC plan is an internal document to organise, plan, and implement QA/QC activities. Once developed, it can be referenced and used in subsequent inventory preparation, or modified as appropriate (i.e. when changes in processes occur or on advice of independent reviewers). This plan should be available for external review. In developing and implementing the QA/QC plan, it may be useful to refer to the standards and guidelines published by the International Organization for Standardization (ISO), including the ISO 9000 series (see Box 8.2). Although ISO 9000 standards are not specifically designed for emissions inventories, they have been applied by some countries to help organise QA/QC activities.

Chapter 8 Quality Assurance and Quality Control IPCC Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories 8.7 BOX 8.2 ISO AS A DATA QUALITY MANAGEMENT SYSTEM The International Organization for Standardization (ISO) series programme provides standards for data documentation and audits as part of a quality management system. Though the ISO series is not designed explicitly for emissions data development, many of the principles may be applied to ensure the production of a quality inventory. Inventory agencies may find these documents useful source material for developing QA/QC plans for greenhouse gas inventories. Some countries (e.g. the United Kingdom and the Netherlands) have already applied some elements of the ISO standards for their inventory development process and data management. The following standards and guidelines published under the ISO series may supplement source category-specific QA/QC procedures for inventory development and provide practical guidance for ensuring data quality and a transparent reporting system. ISO 9004-1: General quality guidelines to implement a quality system. ISO 9004-4: Guidelines for implementing continuous quality improvement within the organisation, using tools and techniques based on data collection and analysis. ISO 10005: Guidance on how to prepare quality plans for the control of specific projects. ISO 10011-1: Guidelines for auditing a quality system. ISO 10011-2: Guidance on the qualification criteria for quality systems auditors. ISO 10011-3: Guidelines for managing quality system audit programmes. ISO 10012: Guidelines on calibration systems and statistical controls to ensure that measurements are made with the intended accuracy. ISO 10013: Guidelines for developing quality manuals to meet specific needs. Source: http://www.iso.ch/ 8 .6 GENERAL QC PROCEDURES (TIER 1) The focus of general QC techniques is on the processing, handling, documenting, archiving and reporting procedures that are common to all the inventory source categories. Table 8.1, Tier 1 General Inventory Level QC Procedures, lists the general QC checks that the inventory agency should use routinely throughout the preparation of the annual inventory. Most of the checks shown in Table 8.1 could be performed by crosschecks, recalculation, or through visual inspections. The results of these QC activities and procedures should be documented as set out in Section 8.10.1, Internal Documentation and Archiving, below. If checks are performed electronically, these systems should be periodically reviewed to ensure the integrity of the checking function. It will not be possible to check all aspects of inventory input data, parameters and calculations every year. Checks may be performed on selected sets of data and processes, such that identified key source categories are considered every year. Checks on other source categories may be conducted less frequently. However, a sample of data and calculations from every sector should be included in the QC process each year to ensure that all sectors are addressed on an ongoing basis. In establishing criteria and processes for selecting the sample data sets and processes, it is good practice for the inventory agency to plan to undertake QC checks on all parts of the inventory over an appropriate period of time. Quality Assurance and Quality Control Chapter 8

8.8 IPCC Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories TABLE 8.1 TIER 1 GENERAL INVENTORY LEVEL QC PROCEDURES QC Activity Procedures Check that assumptions and criteria for the selection of activity data and emission factors are documented. • Cross-check descriptions of activity data and emission factors with information on source categories and ensure that these are properly recorded and archived. Check for transcription errors in data input and reference • Confirm that bibliographical data references are properly cited in the internal documentation. • Cross-check a sample of input data from each source category (either measurements or parameters used in calculations) for transcription errors. Check that emissions are calculated correctly. • Reproduce a representative sample of emissions calculations. • Selectively mimic complex model calculations with abbreviated calculations to judge relative accuracy. Check that parameter and emission units are correctly recorded and that appropriate conversion factors are used. • Check that units are properly labelled in calculation sheets. • Check that units are correctly carried through from beginning to end of calculations. • Check that conversion factors are correct. • Check that temporal and spatial adjustment factors are used correctly. Check the integrity of database files. • Confirm that the appropriate data processing steps are correctly represented in the database. • Confirm that data relationships are correctly represented in the database. • Ensure that data fields are properly labelled and have the correct design specifications. • Ensure that adequate documentation of database and model structure and operation are archived. Check for consistency in data between source categories. • Identify parameters (e.g. activity data, constants) that are common to multiple source categories and confirm that there is consistency in the values used for these parameters in the emissions calculations. Check that the movement of inventory data among processing steps is correct. • Check that emissions data are correctly aggregated from lower reporting levels to higher reporting levels when preparing summaries. • Check that emissions data are correctly transcribed between

different intermediate products. Chapter 8 Quality Assurance and Quality Control IPCC Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories 8.9 TABLE 8.1 (CONTINUED) TIER 1 GENERAL INVENTORY LEVEL QC PROCEDURES QC Activity Procedures Check that uncertainties in emissions and removals are estimated or calculated correctly. • Check that qualifications of individuals providing expert judgement for uncertainty estimates are appropriate. • Check that qualifications, assumptions and expert judgements are recorded. Check that calculated uncertainties are complete and calculated correctly. • If necessary, duplicate error calculations or a small sample of the probability distributions used by Monte Carlo analyses. Undertake review of internal documentation. • Check that there is detailed internal documentation to support the estimates and enable duplication of the emission and uncertainty estimates. • Check that inventory data, supporting data, and inventory records are archived and stored to facilitate detailed review. • Check integrity of any data archiving arrangements of outside organisations involved in inventory preparation. Check methodological and data changes resulting in recalculations. • Check for temporal consistency in time series input data for each source category. • Check for consistency in the algorithm/method used for calculations throughout the time series. Undertake completeness checks. • Confirm that estimates are reported for all source categories and for all years from the appropriate base year to the period of the current inventory. • Check that known data gaps that result in incomplete source category emissions estimates are documented. Compare estimates to previous estimates. • For each source category, current inventory estimates should be compared to previous estimates. If there are significant changes or departures from expected trends, recheck estimates and explain any difference. The checks in Table 8.1, should be applied irrespective of the type of data used to develop the inventory estimates and are equally applicable to source categories where default values or national data are used as the basis for the estimates. In some cases, emissions estimates are prepared for the inventory agency by outside consultants or agencies. The inventory agency should ensure that the QC checks listed in Table 8.1, Tier 1 General Inventory Level QC Procedure, are communicated to the consultants/agencies. This will assist in making sure that QC procedures are

performed and recorded by the consultant or outside agency. The inventory agency should review these QA/QC activities. In cases where official national statistics are relied upon – primarily for activity data – QC procedures may already have been implemented on these national data. However, it is good practice for the inventory agency to confirm that national statistical agencies have implemented adequate QC procedures equivalent to those in Table 8.1. Due to the quantity of data that needs to be checked for some source categories, automated checks are encouraged where possible. For example, one of the most common QC activities involves checking that data keyed into a computer database are correct. A QC procedure could be set up to use an automated range check (based on the range of expected values of the input data from the original reference) for the input values as recorded in the database. A combination of manual and automated checks may constitute the most effective procedures in checking large quantities of input data. Quality Assurance and Quality Control Chapter 8 8.10 IPCC Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories 8 .7 SOURCE CATERGORY-SPECIFIC QC PROCEDURES (TIER 2) In contrast to general inventory QC techniques, source category-specific QC procedures are directed at specific types of data used in the methods for individual source categories and require knowledge of the emission source category, the types of data available and the parameters associated with emissions. It is important to note that Tier 2 source category-specific QC activities are in addition to the general QC conducted as part of Tier 1 (i.e. include QC checks listed in Table 8.1). The source category-specific measures are applied on a case-by-case basis focusing on key source categories (see Chapter 7, Methodological Choice and Recalculation) and on source categories where significant methodological and data revisions have taken place. It is good practice that inventory agencies applying higher tier methods in compiling national inventories utilise Tier 2 QC procedures. Specific applications of source category-specific Tier 2 QC procedures are provided in the energy, agriculture, industrial processes and waste chapters of this report (Chapters 2 to 5). Source category-specific QC activities include the following: • Emission data QC; • Activity data QC; • QC of uncertainty estimates. The first two activities relate to the types of data used to prepare the emissions estimates for a given source category. QC of uncertainty estimates covers activities associated with determining uncertainties in emissions estimates (for more information on the determination of these uncertainties, see Chapter 6, Quantifying Uncertainties in Practice).

The actual QC procedures that need to be implemented by the inventory agency will depend on the method used to estimate the emissions for a given source category. If estimates are developed by outside agencies, the inventory agency may, upon review, reference the QC activities of the outside agency as part of the QA/QC plan. There is no need to duplicate QC activities if the inventory agency is satisfied that the QC activities performed by the outside agency meet the minimum requirements of the QA/QC plan. 8 .7 .1 Emissions data QC The following sections describe QC checks on IPCC default factors, country-specific emission factors, and direct emission measurements from individual sites (used either as the basis for a site-specific emission factor or directly for an emissions estimate). Emission comparison procedures are described in Section 8.7.1.4, Emission Comparisons. Inventory agencies should take into account the practical considerations discussed in Section 8.2, Practical Considerations in Developing QA/QC Systems, when determining what level of QC activities to undertake. 8.7.1.1 IPCC DEFAULT EMISSION FACTORS Where IPCC default emission factors are used, it is good practice for the inventory agency to assess the applicability of these factors to national circumstances. This assessment may include an evaluation of national conditions compared to the context of the studies upon which the IPCC default factors were based. If there is insufficient information on the context of the IPCC default factors, the inventory agency should take account of this in assessing the uncertainty of the national emissions estimates based on the IPCC default emission factors. For key source categories, inventory agencies should consider options for obtaining emission factors that are known to be representative of national circumstances. The results of this assessment should be documented. If possible, IPCC default emission factor checks could be supplemented by comparisons with national site or plant-level factors to determine their representativeness relative to actual sources in the country. This supplementary check is good practice even if data are only available for a small percentage of sites or plants. 8.7.1.2 COUNTRY-SPECIFIC EMISSION FACTORS Country-specific emission factors may be developed at a national or other aggregated level within the country based on prevailing technology, science, local characteristics and other criteria. These factors are not necessarily Chapter 8 Quality Assurance and Quality Control IPCC Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories 8.11 site-specific, but are used to represent a source category or sub-source category. Two steps are necessary to ensure good practice emission factor QC for country-specific factors. The first is to perform QC checks on the data used to develop the emission factors. The adequacy of the emission factors and the QA/QC performed during their development should be assessed. If emission factors were

developed based on site-specific or source-level testing, then the inventory agency should check if the measurement programme included appropriate QC procedures. Frequently, country-specific emission factors will be based on secondary data sources, such as published studies or other literature.1 In these cases, the inventory agency could attempt to determine whether the QC activities conducted during the original preparation of the data are consistent with the applicable QC procedures outlined in Table 8.1 and whether any limitations of the secondary data have been identified and documented. The inventory agency could also attempt to establish whether the secondary data have undergone peer review and record the scope of such a review. If it is determined that the QA/QC associated with the secondary data is adequate, then the inventory agency can simply reference the data source for QC documentation and document the applicability of the data for use in emissions estimates. If it is determined that the QA/QC associated with the secondary data is inadequate, then the inventory agency should attempt to have QA/QC checks on the secondary data established. It should also reassess the uncertainty of any emissions estimates derived from the secondary data. The inventory agency may also reconsider how the data are used and whether any alternative data, (including IPCC default values) may provide a better estimate of emissions from this source category. Second, country-specific factors and circumstances should be compared with relevant IPCC default factors and the characteristics of the studies on which the default factors are based. The intent of this comparison is to determine whether country-specific factors are reasonable, given similarities or differences between the national source category and the ‘average’ source category represented by the defaults. Large differences between country-specific factors and default factors should be explained and documented. A supplementary step is to compare the country-specific factors with site-specific or plant-level factors if these are available. For example, if there are emission factors available for a few plants (but not enough to support a bottom-up approach) these plant-specific factors could be compared with the aggregated factor used in the inventory. This type of comparison provides an indication of both the reasonableness of the countryspecific factor and its representativeness. 8.7.1.3 DIRECT EMISSION MEASUREMENTS Emissions from a source category may be estimated using direct measurements in the following ways: • Sample emissions measurements from a facility may be used to develop a representative emission factor for that individual site, or for the entire category (i.e. for development of a national level emission factor); • Continuous emissions monitoring (CEM) data may be used to compile an annual estimate of emissions for a particular process. In theory, CEM can provide a complete set of quantified emissions data across the inventory period for an individual facility process, and does not have to be correlated back to a process

parameter or input variable like an emission factor. Regardless of how direct measurement data are being used, the inventory agency should review the processes and check the measurements as part of the QC activities. Use of standard measurement methods improves the consistency of resulting data and knowledge of the statistical properties of the data. If standard reference methods for measuring specific greenhouse gas emissions (and removals) are available, inventory agencies should encourage plants to use these. If specific standard methods are not available, the inventory agency should confirm whether nationally or internationally recognised standard methods such as ISO 10012 are used for measurements and whether the measurement equipment is calibrated and maintained properly. For example, ISO has published standards that specify procedures to quantify some of the performance characteristics of all air quality measurement methods such as bias, calibration, instability, lower detection limits, sensitivity, and upper limits of measurement (ISO, 1994). While these standards are not associated with a 1 Secondary data sources refer to reference sources for inventory data that are not designed for the express purpose of inventory development. Secondary data sources typically include national statistical databases, scientific literature, and other studies produced by agencies or organisations not associated with the inventory development. Quality Assurance and Quality Control Chapter 8 8.12 IPCC Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories reference method for a specific greenhouse gas source category, they have direct application to QC activities associated with estimations based on measured emission values. Where direct measurement data from individual sites are in question, discussions with site managers can be useful to encourage improvement of the QA/QC practices at the sites. Also, supplementary QC activities are encouraged for bottom-up methods based on site-specific emission factors where significant uncertainty remains in the estimates. Site-specific factors can be compared between sites and also to IPCC or national level defaults. Significant differences between sites or between a particular site and the IPCC defaults should elicit further review and checks on calculations. Large differences should be explained and documented. 8.7.1.4 EMISSION COMPARISONS It is standard QC practice to compare emissions from each source category with emissions previously provided from the same source category or against historical trends and reference calculations as described below. The objective of these comparisons (often referred to as ‘reality checks’) is to ensure that the emission values are not wildly improbable or that they fall within a range that is considered reasonable. If the estimates seem unreasonable, emission checks can lead to a re-evaluation of emission factors and activity data before the inventory process has advanced to its final stages.

The first step of an emissions comparison is a consistency and completeness check using available historical inventory data for multiple years. The emission levels of most source categories do not abruptly change from year to year, as changes in both activity data and emission factors are generally gradual. In most circumstances, the change in emissions will be less than 10% per year. Thus, significant changes in emissions from previous years may indicate possible input or calculation errors. After calculating differences, the larger percentage differences (in any direction) should be flagged, by visual inspection of the list, by visual inspection of the graphical presentation of differences (e.g. in a spreadsheet) or by using a dedicated software programme that puts flags and rankings in the list of differences. It is good practice to also check the annual increase or decrease of changes in emissions levels in significant subsource categories of some source categories. Sub-source categories may show greater percentage changes than the aggregated source categories. For example, total emissions from petrol cars are not likely to change substantially on an annual basis, but emissions from sub-source categories, such as catalyst-equipped petrol cars, may show substantial changes if the market share is not in equilibrium or if the technology is changing and rapidly being adopted in the marketplace. It is good practice to check the emissions estimates for all source categories or sub-source categories that show greater than 10% change in a year compared to the previous year’s inventory. Source categories and subsource categories should be ranked according to the percentage difference in emissions from the previous year. Supplementary emission comparisons can also be performed, if appropriate, including order-of-magnitude checks and reference calculations. ORDER-OF-MAGNITUDE CHECKS Order of magnitude checks look for major calculation errors and exclusion of major source categories or subsource categories. Method-based comparisons may be made depending on whether the emissions for the source category were determined using a top-down or bottom-up approach. For example, if N2O estimates for nitric acid production were determined using a bottom-up approach (i.e. emissions estimates were determined for each individual production plant based on plant-specific data), the emissions check would consist of comparing the sum of the individual plant-level emissions to a top-down emission estimate based on national nitric acid production figures and IPCC default Tier 1 factors. If significant differences are found in the comparison, further investigation using the source category-specific QC techniques described in Section 8.7, Source CategorySpecific QC Procedures (Tier 2), would be necessary to answer the following questions: • Are there inaccuracies associated with any of the individual plant estimates (e.g. an extreme outlier may be accounting for an unreasonable quantity of emissions)? • Are the plant-specific emission factors significantly different from each other? • Are the plant-specific production rates consistent with published national level production rates?

• Is there any other explanation for a significant difference, such as the effect of controls, the manner in which production is reported or possibly undocumented assumptions? This is an example of how the result of a relatively simple emission check can lead to a more intensive investigation of the representativeness of the emissions data. Knowledge of the source category is required to Chapter 8 Quality Assurance and Quality Control IPCC Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories 8.13 isolate the parameter that is causing the difference in emissions estimates and to understand the reasons for the difference. REFERENCE CALCULATIONS Another emission comparison may be used for source categories that rely on empirical formulas for the calculation of emissions. Where such formulas are used, final calculated emission levels should follow stochiometric ratios and conserve energy and mass. In a number of cases where emissions are calculated as the sum of sectoral activities based on the consumption of a specific commodity (e.g. fuels or products like HFCs, PFCs or SF6), the emissions could alternatively be estimated using apparent consumption figures: national total production + import – export ± stock changes. For CO2 from fossil fuel combustion, a reference calculation based on apparent fuel consumption per fuel type is mandatory according to the IPCC Guidelines. Another example is estimating emissions from manure management. The total quantity of methane produced should not exceed the quantity that could be expected based on the carbon content of the volatile solids in the manure. Discrepancies between inventory data and reference calculations do not necessarily imply that the inventory data are in error. It is important to consider that there may be large uncertainties associated with the reference calculations themselves when analysing discrepancies. 8 .7 .2 Activi ty data QC The estimation methods for many source categories rely on the use of activity data and associated input variables that are not directly prepared by the inventory agency. Activity data is normally collated at a national level using secondary data sources or from site-specific data prepared by site or plant personnel from their own measurements. Inventory agencies should take into account the practical considerations discussed above when determining the level of QC activities to undertake. 8.7.2.1 NATIONAL LEVEL ACTIVITY DATA Where national activity data from secondary data sources are used in the inventory, it is good practice for the inventory agency or its designees to evaluate and document the associated QA/QC activities. This is particularly important with regard to activity data, since most activity data are originally prepared for purposes other than as input to estimates of greenhouse gas emissions. Though not always readily available, many statistical

organisations, for example, have their own procedures for assessing the quality of the data independently of what the end use of the data may be. If it is determined that these procedures satisfy minimum activities listed in the QA/QC plan, the inventory agency can simply reference the QA/QC activities conducted by the statistical organisation. It is good practice for the inventory agency to determine if the level of QC associated with secondary activity data includes those QC procedures listed in Table 8.1. In addition, the inventory agency may establish whether the secondary data have been peer reviewed and record the scope of this review. If it is determined that the QA/QC associated with the secondary data is adequate, then the inventory agency can simply reference the data source and document the applicability of the data for use in its emissions estimates. If it is determined that the QC associated with the secondary data is inadequate, then the inventory agency should attempt to have QA/QC checks on the secondary data established. It should also reassess the uncertainty of emissions estimates in light of the findings from its assessment of the QA/QC associated with secondary data. The inventory agency should also reconsider how the data are used and whether any alternative data, including IPCC default values and international data sets, may provide for a better estimate of emissions. If no alternative data sources are available, the inventory agency should document the inadequacies associated with the secondary data QC as part of its summary report on QA/QC (see Section 8.10.2, Reporting, for reporting guidance). For example, in the transportation category, countries typically use either fuel usage or kilometer (km) statistics to develop emissions estimates. The national statistics on fuel usage and kms travelled by vehicles are usually prepared by a different agency from the inventory agency. However, it is the responsibility of the inventory agency to determine what QA/QC activities were implemented by the agency that prepared the original fuel usage and km statistics for vehicles. Questions that may be asked in this context are: • Does the statistical agency have a QA/QC plan that covers the preparation of the data? • What sampling protocol was used to estimate fuel usage or kms travelled? • How recently was the sampling protocol reviewed? • Has any potential bias in the data been identified by the statistical agency? Quality Assurance and Quality Control Chapter 8 8.14 IPCC Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories • Has the statistical agency identified and documented uncertainties in the data? • Has the statistical agency identified and documented errors in the data? National level activity data should be compared with previous year’s data for the source category being evaluated. Activity data for most source categories tend to exhibit relatively consistent changes from year to year without sharp increases or decreases. If the national activity data for any year diverge greatly from the historical

trend, the activity data should be checked for errors. If the general mathematical checks do not reveal errors, the characteristics of the source category could be investigated and any change identified and documented. Where possible, a comparison check of activity data from multiple reference sources should be undertaken. This is important for source categories that have a high level of uncertainty associated with their estimates. For example, many of the agricultural source-categories rely on government statistics for activity data such as livestock populations, areas under cultivation, and the extent of prescribed burning. Similar statistics may be prepared by industry, universities, or other organisations and can be used to compare with standard reference sources. As part of the QC check, the inventory agency should ascertain whether independent data have been used to derive alternative activity data sets. In some cases, the same data are treated differently by different agencies to meet varying needs. Comparisons may need to be made at a regional level or with a subset of the national data since many alternative references for such activity data have limited scope and do not cover the entire nation. 8.7.2.2 SITE-SPECIFIC ACTIVITY DATA Some methods rely on the use of site-specific activity data used in conjunction with IPCC default or countryspecific emission factors. Site or plant personnel typically prepare these estimates of activity, often for purposes other than as inputs to emissions inventories. QC checks should focus on inconsistencies between sites to establish whether these reflect errors, different measurement techniques, or real differences in emissions, operating conditions or technology. A variety of QC checks can be used to identify errors in site-level activity data. The inventory agency should establish whether recognised national or international standards were used in measuring activity data at the individual sites. If measurements were made according to recognised national or international standards and a QA/QC process is in place, the inventory agency should satisfy itself that the QA/QC process at the site is acceptable under the inventory QA/QC plan and at least includes Tier 1 activities. Acceptable QC procedures in use at the site may be directly referenced. If the measurements were not made using standard methods and QA/QC is not of an acceptable standard, then the use of these activity data should be carefully evaluated, uncertainty estimates reconsidered, and qualifications documented. Comparisons of activity data from different reference sources may also be used to expand the activity data QC. For example, in estimating PFC emissions from primary aluminium smelting, many inventory agencies use smelter-specific activity data to prepare the inventory estimates. A QC check of the aggregated activity data from all aluminium smelters can be made against national production statistics for the industry. Also, production data can be compared across different sites, possibly with adjustments made for plant capacities, to evaluate the reasonableness of the production data. Similar comparisons of activity data can be made for other

manufacturing-based source categories where there are published data on national production. If outliers are identified, they should be investigated to determine if the difference can be explained by the unique characteristics of the site or there is an error in the reported activity. Site-specific activity data checks may also be applied to methods based on product usage. For example, one method for estimating SF6 emissions from use in electrical equipment relies on an account balance of gas purchases, gas sales for recycling, the amount of gas stored on site (outside of equipment), handling losses, refills for maintenance, and the total holding capacity of the equipment system. This account balance system should be used at each facility where the equipment is in place. A QC check of overall national activity could be made by performing the same kind of account balancing procedure on a national basis. This national account balancing would consider national sales of SF6 for use in electrical equipment, the nation-wide increase in the total handling capacity of the equipment (that may be obtained from equipment manufacturers), and the quantity of SF6 destroyed in the country. The results of the bottom-up and top-down account balancing analyses should agree or large differences should be explained. Similar accounting techniques can be used as QC checks on other categories based on gas usage (e.g. substitutes for ozone-depleting substances) to check consumption and emissions. Chapter 8 Quality Assurance and Quality Control IPCC Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories 8.15 8 .7 .3 QC of uncertainty estimates QC should also be undertaken on calculations or estimates of uncertainty associated with emissions estimates. Good practice for estimating inventory uncertainties is described in Chapter 6, Quantifying Uncertainties in Practice, and relies on calculations of uncertainty at the source category level that are then combined to summary levels for the entire inventory. Some of the methods rely on the use of measured data associated with the emission factors or activity data to develop probability density functions from which uncertainty estimates can be made. In the absence of measured data, many uncertainty estimates will rely on expert judgement. It is good practice for QC procedures to be applied to the uncertainty estimations to confirm that calculations are correct and that there is sufficient documentation to duplicate them. The assumptions on which uncertainty estimations have been based should be documented for each source category. Calculations of source categoryspecific and aggregated uncertainty estimates should be checked and any errors addressed. For uncertainty estimates involving expert judgement, the qualifications of experts should also be checked and documented, as should the process of eliciting expert judgement, including information on the data considered, literature references, assumptions made and scenarios considered. Chapter 6 contains advice on how to document expert

judgements on uncertainties. 8 .8 QA PROCEDURES Good practice for QA procedures requires an objective review to assess the quality of the inventory, and also to identify areas where improvements could be made. The inventory may be reviewed as a whole or in parts. QA procedures are utilised in addition to the Tier 1 and Tier 2 QC. The objective in QA implementation is to involve reviewers that can conduct an unbiased review of the inventory. It is good practice to use QA reviewers that have not been involved in preparing the inventory. Preferably these reviewers would be independent experts from other agencies or a national or international expert or group not closely connected with national inventory compilation. Where third party reviewers outside the inventory agency are not available, staff from another part of the inventory agency not involved in the portion of the inventory being reviewed can also fulfil QA roles. It is good practice for inventory agencies to conduct a basic expert peer review (Tier 1 QA) prior to inventory submission in order to identify potential problems and make corrections where possible. It is also good practice to apply this review to all source categories in the inventory. However, this will not always be practical due to timing and resource constraints. Key source categories should be given priority as well as source categories where significant changes in methods or data have been made. Inventory agencies may also choose to perform more extensive peer reviews or audits or both as additional (Tier 2) QA procedures within the available resources. More specific information on QA procedures related to individual source categories is provided in the source category-specific QA/QC sections in Chapters 2 to 5. EXPERT PEER REVIEW Expert peer review consists of a review of calculations or assumptions by experts in relevant technical fields. This procedure is generally accomplished by reviewing the documentation associated with the methods and results, but usually does not include rigorous certification of data or references such as might be undertaken in an audit. The objective of the expert peer review is to ensure that the inventory’s results, assumptions, and methods are reasonable as judged by those knowledgeable in the specific field. Expert review processes may involve technical experts and, where a country has formal stakeholder and public review mechanisms in place, these reviews can supplement but not replace expert peer review. There are no standard tools or mechanisms for expert peer review, and its use should be considered on a case-bycase basis. If there is a high level of uncertainty associated with an emission estimate for a source category,

expert peer review may provide information to improve the estimate, or at least to better quantify the uncertainty. Expert reviews may be conducted on all parts of a source category. For example, if the activity data estimates from oil and natural gas production are to be reviewed but not the emission factors, experts in the oil and gas industry could be involved in the review to provide industry expertise even if they do not have direct experience in greenhouse gas emissions estimation. Effective peer reviews often involve identifying and contacting key industrial trade organisations associated with specific source categories. It is preferable for this expert input to be sought early in the inventory development process so that the experts can participate from the start. It is good practice to involve relevant experts in development and review of methods and data acquisition. Quality Assurance and Quality Control Chapter 8 8.16 IPCC Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories The results of expert peer review, and the response of the inventory agency to those findings, may be important to widespread acceptance of the final inventory. All expert peer reviews should be well documented, preferably in a report or checklist format that shows the findings and recommendations for improvement. AUDITS For the purpose of good practice in inventory preparation, audits may be used to evaluate how effectively the inventory agency complies with the minimum QC specifications outlined in the QC plan. It is important that the auditor be independent of the inventory agency as much as possible so as to be able to provide an objective assessment of the processes and data evaluated. Audits may be conducted during the preparation of an inventory, following inventory preparation, or on a previous inventory. Audits are especially useful when new emission estimation methods are adopted, or when there are substantial changes to existing methods. It is desirable for the inventory agency to develop a schedule of audits at strategic points in the inventory development. For example, audits related to initial data collection, measurement work, transcription, calculation and documentation may be conducted. Audits can be used to verify that the QC steps identified in Table 8.1 have been implemented and that source category-specific QC procedures have been implemented according to the QC plan. 8 .9 VERIFICATION OF EMISSIONS DATA Options for inventory verification processes are described in Annex 2, Verification. Verification techniques can be applied during inventory development as well as after the inventory is compiled. Comparisons with other independently compiled, national emissions data (if available) are a quick option to evaluate completeness, approximate emission levels and correct source category allocations. These comparisons

can be made for different greenhouse gases at national, sectoral, source category, and sub-source category levels, as far as the differences in definitions enable them. Although the inventory agency is ultimately responsible for the compilation and submission of the national greenhouse gas inventory, other independent publications on this subject may be available (e.g. from scientific literature or other institutes or agencies). These documents may provide the means for comparisons with other national estimates. The verification process can help evaluate the uncertainty in emissions estimates, taking into account the quality and context of both the original inventory data and data used for verification purposes. Where verification techniques are used, they should be reflected in the QA/QC plan. Improvements resulting from verification should be documented, as should detailed results of the verification process. 8 .10 DOCUMENTATION, ARCHIVING AND REPORTING 8 .10.1 Interna l documentation and archiving As part of general QC procedures, it is good practice to document and archive all information required to produce the national emissions inventory estimates. This includes: • Assumptions and criteria for selection of activity data and emission factors; • Emission factors used, including references to the IPCC document for default factors or to published references or other documentation for emission factors used in higher tier methods; • Activity data or sufficient information to enable activity data to be traced to the referenced source; • Information on the uncertainty associated with activity data and emission factors; • Rationale for choice of methods; • Methods used, including those used to estimate uncertainty; • Changes in data inputs or methods from previous years; • Identification of individuals providing expert judgement for uncertainty estimates and their qualifications to do so; Chapter 8 Quality Assurance and Quality Control IPCC Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories 8.17 • Details of electronic databases or software used in production of the inventory, including versions, operating manuals, hardware requirements and any other information required to enable their later use; • Worksheets and interim calculations for source category estimates and aggregated estimates and any recalculations of previous estimates; • Final inventory report and any analysis of trends from previous years; • QA/QC plans and outcomes of QA/QC procedures. It is good practice for inventory agencies to maintain this documentation for every annual inventory produced and to provide it for review. It is good practice to maintain and archive this documentation in such a way that every inventory estimate can be fully documented and reproduced if necessary. Inventory agencies should ensure that records are unambiguous; for example, a reference to ‘IPCC default factor’ is not sufficient. A full reference

to the particular document (e.g. Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories) is necessary in order to identify the source of the emission factor because there may have been several updates of default factors as new information has become available. Records of QA/QC procedures are important information to enable continuous improvement to inventory estimates. It is good practice for records of QA/QC activities to include the checks/audits/reviews that were performed, when they were performed, who performed them, and corrections and modifications to the inventory resulting from the QA/QC activity. 8 .10.2 Reporting It is good practice to report a summary of implemented QA/QC activities and key findings as a supplement to each country’s national inventory. However, it is not practical or necessary to report all the internal documentation that is retained by the inventory agency. The summary should describe which activities were performed internally and what external reviews were conducted for each source category and on the entireinventory in accordance with the QA/QC plan. The key findings should describe major issues regarding quality of input data, methods, processing, or archiving and show how they were addressed or plan to be addressed in