Thought for the quarter - Punjab National Bank Institute of ...

wiatkc uS'kuy cSadlpuk izkS|ksfxdh laLFkkufoHkwfr [k.M] xkserh uxj] y[kumG & 226 010 ¼;w-ih-½-----cSafdax] foÙk ,oa chek {ks= esa lwpuk izkS|ksfxdh dk vxz.kh laLFkkupunjab national bankinstitute of information technologyVibhuti Khand, Gomti Nagar, Lucknow- 226 010 (U.P.)..... a premier institute of information technology in the area of banking, finance & insurancevol. VII no. 1 special edition january-march-2011e-trackbusiness of future

e-trackEditorEditorial TeamPramod DikshitDharmendra TewariSanjay SrivastavaNidhi GoyalPrinted bye-trackSwastik Printing Press27, Mai Gi Ki Bagiya,Kapoorthala Crossing,Mahanagar, LucknowMobile : 9415419300punjab national bankinstitute of information technologyVibhuti Khand, Gomti Nagar,Lucknow--226 010 (U.P.)T : +91 522 2721442, 2721174F : +91 522 2721201, 2721441E-mail : bankingtech@pnbiit.co.inURL : www.pnbiit.comThought for the quarterDon't tell people how todo things, tell them what to doand let them surprise you withtheir results.George S. PattonFrom the editorDear Readers,Knowledge plays an increasingly vital role intechnological advances and the transformation oforganizations. The transformation of organization haslargely been brought about as a result of theaccumulation and increasingly sophisticatedexploitation of knowledge. In today's networked andseamless world, where data and information isavailable in abundance, it certainly does create a chaosin an organization if the knowledge resources are nothandled in a proper and smarter manner. Knowledgemanagement, therefore, looks at a wide range of issues that involvesinformation management, knowledge sharing, organizational culture,knowledge acquisition and organizational learning. Innovation andknowledge management are no longer luxury items, but rather necessities and ameans of sustaining technological development and competitiveness. This e-track issue primarily focuses on innovation and knowledge management, therole of knowledge management practices in innovation and vice versa.Dr. Sahu's article in line with theme of the issue informs "The challenge beforethe banks is how to develop and share the organizational knowledge oncontinuous basis for the business development". While Ms. Srivatava's articleis very pertinent as she discovers how a Data warehouse system could be veryhandy for knowledge management in Insurance Sector.Ms. Pathak's research paper in this issue is a method by which management andemployees can become involved in the continuous improvement of theproduction of goods and services. It is a combination of quality andmanagement tools aimed at increasing business and reducing losses due towasteful practices.Ms. Sahai, through her article touches upon ubiquitous computing - a postdesktopmodel of man-machine interaction in which information processinghas been thoroughly integrated into everyday objects and activities.Last but not the least , On behalf of our editorial team , I would like to conveymy heartfelt greetings to all of our readers on the auspicious occasion of thisHappy New Year 2011 and expect that the New Year may bring all sorts of joyand happiness to you and your family members.Happy Reading…………..Pramod DikshitContentsFrom the Director's desk 3Case For Knowledge Management In Banks 4Knowledge Management In Insurance IndustryThrough Data Warehousing System 9Ubiquitous Computing 14Future Directions For Total Quality Management 16January-March20112

e-trackFrom the Director's deskKNOWLEDGE MANAGEMENTKnowledge management is about using information that creates value and in theprocess enhances organisational knowledge though sound practices of informationmanagement and organisational learning. Information System of a companycomprising of Transaction Processing Systems (TPS), Management informationSystem (MIS), Decision Support System (DSS) and Strategic Information System(SIS) is a critical resource that makes timely availability of information for effectiveperformance of managerial functions. However all information accumulated andprovided by IS does not always directly convert to knowledge. Organisationalknowledge gets created when while working on the available information, tacit knowledge possessed byindividual workers is externalized into objective and explicit knowledge which then is used by everybody inthe organisation.Some organisations stand out amongst the rest in terms of success and of these some distinctivelyhave a purpose way beyond maximizing profit. The difference lies in their value systems, employees'commitment, vision and such subjective elements that enable creation and management of organisationalknowledge.The companies at times may undervalue the creation and capture of knowledge, lose or give away orinhibit sharing of the knowledge they posses i.e. they may under-invest in both using and reusing theknowledge they have. This may sometimes be due to the fact that they often do not know what they know.This is especially true for tacit or unarticulated knowledge i.e. the knowledge that is generally in the heads ofindividuals and teams and is lost when such individuals and teams leave the company.From the term Knowledge Worker first used by Peter Drucker in 1959 in his book Landmarks ofTomorrow and introduction to the term of Knowledge Management and Intellectual Capital by Thomas AStewart in Fortune magazine in 1991, a lot of interest has been generated amongst managementeducationists, practitioners and corporates alike in the field of Knowledge Management. Realization hassunk in that Survival of the Fittest will continue to be true, albeit along with management of men, material andmoney, Knowledge Management becoming an integral part of the Fittest Organisation.P K Malhotra(Director)pkmalhotra@pnbiit.co.in3January-March2011

e-trackCASE FOR KNOWLEDGE MANAGEMENT IN BANKS-Dr. Sada Bihari SahuAdvent of information and Communication organization's objectives.Technology, Cybernetics, and Internet have led to a Further, it can be definedknowledge revolution that needs to be tamed and as 'the systematic management ofdirected towards attainment of board objectives of vital knowledge and itscivilization and development in general. In associated processes of creation,particular, an efficient management of unlimited organization, diffusion, use andknowledge strewn around can be a differentiating exploitation.feature for an organization that may be singled out as To put it more succinctly, KM addressesa distinctly superior entity in comparison to its business issues in the respect of products andcompetitors. This on-going knowledge revolution services, enhancing customer relationship andhas given unprecedented scope, growth and improving work processes.competition to the banking and financial sector also.Further, the universalisation of banking operation Objectives of Knowledge Management:driven by BASEL Committee has reduced banking While the objectives of KM differ fromboundaries. Today the challenge before the banks is organization to organization, the following basichow to develop and share the organizational points emerge:knowledge on continuous basis for the business How an organization will manage itsdevelopment. Here, knowledge has emerged as the knowledge better for the benefit of themost important ingredient for success of any organization and its stakeholder. It must consistorganization or individual and continuous learning of a goal and purposes, guiding principles, andhas become an imperative for any organization or proposed action plans and monitoringindividual to survive and prosper.mechanism.It should assimilate and disseminate relevantWhat is Knowledge Management?and high-quality knowledge by organization toKnowledge Management (KM) simply stakeholders and to other users.means management of knowledge. Different It should enhance learning process: knowledgeorganizations have defined KM in a different capture and sharing within the organization.manner. It may be defined as “the process of To enable adoption of new technology forincreasing organizational intelligence through diversification and growth.involvement and participation in the organization's To achieve service excellence.knowledge capital, for creating business value andgenerating a competitive advantage.According to Jennifer Rowley “ KnowledgeFunctions of KM:While every organization's objectives andmanagement is concerned with the exploitation and requirements are different, basic KM functionsdevelopment of the knowledge assets of an includes- abstracting, making meaning to explicitorganization with a view to furthering the knowledge/information and deconstructingJanuary-March20114

information into nodes and relationship to representknowledge etc- are common to all businessenvironments. These functions can be categorized asfollows:Finding, mapping, gathering and filteringinformation.Creating and developing new knowledge.Converting personal knowledge into sharedknowledge resources.Understanding, learning, acquiring orextracting knowledge value.Adding value to information to createknowledgeEnhancing performance and management.Consistent improvement in knowledgesharing mechanisms and processing of thesame.Delivering (Transferring) knowledgeTo develop a sound and well-integratedtechnical architecture which is appropriate tothe processing needs of the organization.Why we need KM in Banks?Knowledge management solutions are now themost important strategic technologies for largecompanies, according to a new report and survey ofEuropean executives by the Economist IntelligenceUnit (EIU.com, 2003), sponsored by TataConsultancy Services. In the survey, 67% ofcompanies cite knowledge management/businessintelligence solutions as important to achieving theirstrategic goals over the next three years. To servecustomers well and remain in business companiesmust: reduce their cycle times, operate withminimum fixed assets and overhead (people,inventory and facilities), shorten productdevelopment time, improve customer service,empower employees, innovate and deliver highquality products, enhance flexibility and adoption,e-trackcapture information, create knowledge, share andlearn. None of this is possible without a continualfocus on the creation, updating, availability, qualityand use of knowledge by all employees and teams, atwork and in the marketplace. Similarly, due toglobalization, liberalization, and deregulation, theface of financial markets is changing very fast andbanking is no exception to it. In such a turbulentenvironment, Banks have a unique opportunity andthe need to succeed in this market place by doingthings better than others. Therefore, some of theneed of KM in Banks is as follows:For Better customer knowledgeFor Better knowledge of products and servicesFor Better knowledge of processesFor Skill developmentFor better knowledge of peopleFor better market intelligenceFor Sharing of best practicesFor Better customer servicePrevention of knowledge walkoutsComponents of KM:Based on actual experiences of the leadingglobal KM case studies, the components for KM canbe broadly categorized into three classes - People,Processes, and Technology (Figure 1). While allthree are critical to build a learning organization andget business results from KM, a majority oforganizations worldwide implementing KM havefound it relatively easier to put technology andprocesses in place, whereas the "people" componenthas posed greater challenges. The biggest challengein KM is to ensure participation by the people oremployees in the knowledge sharing, collaborationand re-use to achieve business results. In manyorganizations, this requires changing traditionalmindsets and organizational culture from"knowledge-hoarding" (to keep hidden or private) to5January-March2011

e-track"knowledge-sharing", (share among team members)and creating an atmosphere of trust. This is achievedthrough a combination of motivation / recognitionand rewards, re-alignment of performance appraisalsystems, and other measurement systems. A key tosuccess in KM is to provide people visibility,recognition and credit as "experts" in theirrespective areas of specialization - while leveragingtheir expertise for business success.enablement is the Knowledge-Portal on theCorporate/Bank Intranet (and extranets wherecustomers, partners and/or suppliers are involved).Common technologies used for knowledge portalsinclude standard Microsoft technologies or LotusNotes databases. A Bank must choose a technologyoption that meets its KM objectives and investmentplan. While technology is a key enabler to KM, it isimportant to ensure that the technology solutiondoes not take the focus away from business issuesand is user-friendly and simple to use.The Process component include standard processesfor knowledge-contribution, content management(accepting content, maintaining quality, keepingcontent current, deleting or archiving content that isobsolete), retrieval, membership on communities ofpractice, implementation-projects based onknowledge-reuse, methodology and standardformats to document best-practices and case studies,etc. It is important for processes to be as clear andsimple as possible and well understood byemployees across the organization. KM technologysolutions provide functionality to supportknowledge sharing, collaboration, workflow, anddocument-management across the bank and beyond.These tools typically provide a secure central spacewhere employees, customers, partners and supplierscan exchange information, share knowledge andguide each other and the organization to betterdecisions. The most popular form of KM technologyProcess of KMKnowledgeidentification/discoveryKnowledgecreation/acquisitionKnowledgeCapture/storage/codification/retrievalKnowledgesharing/transfer/flowTasks/activities requireDefines what knowledge theorganization needs forbusiness success and iden tifieswhat it has and doesn’t have(as well as what it has that itdoesn’t need)Determines where valuableknowledge is being createdwithin the organization anddefines what the organizationneeds to acquire from externalsourcesSupports the capture, storage,and codification of valuableknowledge for effectiveretrievalDevelops a sharing culture sothat knowledge is transferredefficiently to where it isneededJanuary-March2011 6

Problems in implementation of KM process inBanks:e-trackLack of systematic approach in dealing withinformationThough, the banks have recognized Poor network infrastructure for successfulimportance of knowledge management, they are implementation and management offacing problems while implementing this concept. knowledge.Some of the major obstacles in this regard are as Creation of a culture that supports innovation,follows:learning, and knowledge sharing.1) Legacy: Typical closed mindset which over a Networking of internal and external experts inperiod, worked under a controlled order to have the right knowledge at the rightenvironment.time at the right place or find it as quickly as2) Unionism: There are strong unions of bank possible.employees to protect the rights of their A technical infrastructure that supportsmembers. However, in the process, knowledge work from simple knowledgeinadvertently they also have protected support tools to entrants and ultimately moreinefficiencies.sophisticated group ware and decision3) Attitude to “Control”: Development of support.attitude to “Command” and “Control” inBanks, discourage the innovative spirit,Application of KM in Banking:freedom of work, openness in communication,The true applications of KM in Banks can beexpression of views, knowledge sharingviewed by providing the customer, convenienceattitude etc.banking on 24X7 basis by deploying core banking4) Resistances for change by self contendedsolution with integrated delivery channels like ATM,people are major block in the process ofInternet, phone, mobile, Kiosk, call center, AntievolvingKM strategies in Banks.Money Laundering & KYC guidelines. Further, it isApart from all these some of the most common applied to Branch computerization, Wide Areasobstacles are as follow:Networking- Networking of branches under CBS,Lack of balance between knowledge provider Risk Management, Cheque Truncation, Globaland knowledge receiver.Treasury, Securitization, RTGS (Real Time GrossLack of trust among themselvesSettlement), On-line Trading, Mutual Funds, On-Lack of common terminology and sharedline Tax Accounting Systems etc. More over, it canunderstanding of key ideas.be seen in varieties form which can broadly bedivided into following points:Diverse cultures, languages and habits1) To know customers' financial standing andLack of humble acceptance of knowledgebehavioral patternOrganized recognition and reward systems2) Creation of data warehouse and data miningusually do not sufficiently recognizeknowledge contributors.3) For Business InnovationIntolerance against mistakes and lack of help4) For Assessing Loan Riskswhen there is a need5) Customer CentricityUnorganized information6) For Competitiveness7January-March2011

e-track7) Creation of online discussion forums http://www.angleritech.com8) Creation of Online Conferencing and 2. Bhojaraju, G. Knowledge management: whyCollaborationdo we need it for corporates. Malaysian9) Communities of practiceJournal of Library & information science,10) Web IntelligenceDecember 2005, 10(2), 37-50.3. EIU.com. 2005. Know how: Managingknowledge for competitive advantage.Conclusion:Available at: http://www.eiu.com/KnowHowManaging Knowledge- whether explicit or4. K h a n d e l w a l , A n i l K . K n o w l e d g etacit- has implications for innovation, cost cuttingManagement: The key to success. IBAand improved competitiveness. Consequently, theBulletin, December 2003, XXV(12), 5-10.implementation of KM as the process of generating,accumulating, sharing and using knowledge to5. Mitra, P K. Knowledge Management Officers-thcreate and restore value in Banks is increasing and Role in Banks. 8 Bank Education Conferencematuring. It is also substantially enhancing the “Enhancing performance” 2007, Mumbai, 19-productivity of individual and group in Banks by 20 January 2007, P.69-75.allowing the use and reuse of knowledge and in 6. Ramesha, Kumbar, B D, Hundekar, S G.doing strategic tasks such as customer relation Knowledge Management in Banks: Somemanagement. In general, knowledge management implications. IBA Bulletin, December 2003,initiatives in banking services fall into two main XXV(12), 27-30.categories. First, knowledge management is seen as 7. Reddy, B Rathan. 2007 Knowledgean integral part of overall corporate strategy, and M a n a g e m e n t : To o l f o r b u s i n e s saims to grow, extract and exploit the bank's development. Himalaya Publishing House,knowledge to increase shareholder value. The New Delhi, 2007.second focus is on improving the knowledge 8. Roy, Tapash Guha. Knowledge Managementnecessary to carry out specific business processesthOfficers (KMOs): Their role in Banks. 8 Bankand thereby improving efficiency.Education Conference “EnhancingThe banking sector as a whole, like other performance” 2007, Mumbai, 19-20 Januarysectors, has realized the importance of KM function. 2007, P.76-86.At the same time, they are also facing many 9. Shiravadekar, A R. Knowledge Managementproblems in creating the desired work environment in Banks. IBA Bulletin, December 2003,under which this function will develop properly. In a XXV(12), 24-26.situation when Banks have no alternative except10. Tandon, Deepak, Tandon, Neelam, Singh,“perform” or “perish”, they have to take pragmaticRakhi. 2008. Knowledge Management insteps to build a knowledge chain, create knowledgeIndian Banks. In Uppal, R K. Challenges andwealth with the immediate implementation of KM toopportunities for Indian Banks. Mahamaya,significantly enhance their level of performance.New Delhi, 2008. 20-29.References:1. Angler. 2003. Full Service Provider (FSP) ofWeb, E-business and Multimedia. Available atAuthor is Manager,Small Industries DevelopmentBank of India (SIDBI)January-March2011 8

KNOWLEDGE MANAGEMENT IN INSURANCE INDUSTRYTHROUGH DATA WAREHOUSING SYSTEMe-track- Anshum Srivastava,Asscociate Professor, LBSIMDS, LucknowAbstract:Data has come to occupy a very importantapproach to adopting technologymeans that insurance companiesplace in several management functions, irrespective lag behind in decision support.of the domain to which an organization belongs. Adopting data warehousing andThere has also been a growing realization that data mining solutions will give adecision making based on statistical bases tends to strategic advantage to insurers tobe closer to accuracy, for obvious reasons. Lack of provide better policies, improved appropriatedata also hampers steady growth of business. pricing and better risk management.Particularly in a domain that has to do with large At the industry level, data warehousing shouldnumbers and accuracy of assessment, the need for be used as a dynamic repository of information thatcollection and generation of data-based information should be ideally accessible to all players. Byneeds no emphasis. The importance of data for applying proper techniques of mining, insurerssuccessful conduct of business cannot be over should be capable of drawing information from theemphasized. This holds true for almost all types of common warehouse that would eventually obviatebusinesses universally, as business decisions have to the problems associated with adverse selection.be taken considering the past experiences, present Towards accomplishing this, all players shouldscenario and future projections. The importance of realize their responsibility to contribute clean anddata is most paramount in the insurance industry. For reliable data; and in time, at that. This is particularlyinsurers to generate actuarial assumptions which are important in a domain where there are multipleso vital for such important management functions players; and also where information asymmetrylike underwriting and pricing; the quality of data is continues to be a bothersome factor. The collectionrequired to be of a high order viz. comprehensive, and maintenance of data should not be an exerciseclean and meaningful. The process of collecting that limits itself to a mere formality or for reasons ofdata; apply the standards of cleansing and storage; fashion but it should be appreciated that it is acompiling the data and storing it in a usable form are corporate need. The mechanism that is associatedall replete with huge costs and deployment of with data collection and analysis is bound to beprecious manpower resources. Insurance expensive and there is also the possibility of earlycompanies should take cognizance of this fact while obsolescence.creating a database.As such, it is essential that organizationsensure optimum utilization of whatever resourcesIntroduction:The insurance sector has witnessed intenseare pooled into the process. There is also a need toensure that the data collected is based on the needs ofcompetition, changing market scenario and growing the organization and that it is tuned to the businessrisks and complexities post opening up. A cautious requirements. A well-designed data warehouse9January-March2011

e-tracksupported by suitable mining techniques go a longway in alleviating most problems associated withdata-based management decisions. In the insuranceindustry, for example, it could lead to a wide range ofbenefits like creation of better policy types that aimat the right segments, better pricing strategies, morereliable risk assessment and underwriting etc; apartfrom higher efficiencies in claims settlement andother customer service activities. It should howeverbe ensured that the data obtained is homogenous innature and at the right level of granularity. Datawarehousing and mining techniques provide theright balance for maintenance of a high level of datarelated accuracy.Insurance: A matter of choiceInsurance is defined as the equitable transfer ofthe risk of a loss, from one entity to another, inexchange for payment. An insurer is a companyselling the insurance; an insured or policyholder isthe person or entity buying the insurance policy. Theinsurance rate is a factor used to determine theamount to be charged for a certain amount ofinsurance coverage, called the premium. Riskmanagement, the practice of appraising andcontrolling risk, has evolved as a discrete field ofstudy and practice.The transaction involves the insured assuminga guaranteed and known relatively small loss in theform of payment to the insurer in exchange for theinsurer's promise to compensate (indemnify) theinsured in the case of a large, possibly devastatingloss. The insured receives a contract called theinsurance policy which details the conditions andcircumstances under which the insured will becompensated.The customer today can choose betweeninsuring and not insuring, between bearing the riskhimself or through industry / mutual arrangements,or passing on the risk to an insurer. His choicedepends on the industry players, schemes available,the nature and types of risks, the costs involved, theassociated risks, the probability of occurrence, thelikely impact on business and the risk appetite,approach and attitude. Insurance companies thatrecognize this factor; and are proactive in managingand tuning their business to customer needs willprove most successful in today's competitiveenvironment.Trends of Insurance in IndiaWith the de-regulation in Indian Insuranceindustry, the monopoly of public sector companies inlife insurance and general insurance has come to anend. The insurance industry in India has gonethrough many transitions, the latest being theopening up of the insurance sector to private andinternational players. With this, the monopoly of thepublic sector nationalized insurance companies hasbeen replaced by competition albeit in a spaceregulated by the IRDA, thereby giving a choice forthe first time to the consumer, the insured. IRDA hasthe responsibility of protecting the interest ofinsurance policyholders. Towards achieving thisobjective, the Authority has taken the followingsteps:IRDA has notified Protection of PolicyholdersInterest Regulations 2001 to provide for:policy proposal documents in easilyunderstandable language; claims procedure inboth life and non-life; setting up of grievanceredressal machinery; speedy settlement ofclaims; and policyholders' servicing. TheRegulation also provides for payment ofinterest by insurers for the delay in settlementof claim.January-March2011 10

The insurers are required to maintain solvencymargins so that they are in a position to meettheir obligations towards policyholders withregard to payment of claims.It is obligatory on the part of the insurancecompanies to disclose clearly the benefits,terms and conditions under the policy. Theadvertisements issued by the insurers shouldnot mislead the insuring public.All insurers are required to set up propergrievance redress machinery in their headoffice and at their other offices.The Authority takes up with the insurers anycomplaint received from the policyholders inconnection with services provided by themunder the insurance contract.Life Cycle of InsuranceThe life cycle of insurance can be viewed andanalyzed from two perspectives. One is that of theconsumer (insured), and the other that of the insurer.The insured is looking at risks and impact forappropriate treatment to mitigate and control lossesand to obtain maximum recoupment. On the otherhand, the insurer is looking at risks to developproducts and address the needs of the insured andearn a fair return by way of premiums that will givehim profits / surplus over and above the claimssettlement. The approach of the insured is from anindividual perspective, and that of the insurer from amacro perspective. Both are looking at risks andoutcomes – one from the loss perspective and theother from the claims perspective. The relationshipis mutual, symbiotic and interdependent. However,it also therefore envisages a better understanding ofthe risks, their likelihood and impact and the needsand pain points of consumers.e-trackInsured(Individual Level)Risk Risk Risk Insurance Risk Claim CompensationIdentification assessment Treatment EventRisk Risk Product Policy Servicing Survey SettlementIdentification assessment development& trainingInsurer(Macro Level)Fig1: Life Cycle of InsuranceData Warehouse & Data MartsA data warehouse is the foundation of powerfulanalyses. It supports business decision making byallowing managers and analysts to examine data andperform powerful analysis easily and quickly. Itfacilitates measurement of the effects of variouscombinations of factors (geographic, demographic,rating and underwriting variables) on sales, premium,losses, loss frequency, loss severity, loss ratio, customerretention and other measures, and provides a strongplatform for regression analysis and various other formsof predictive analysis.The term “data warehouse” is often used indifferent contexts to mean different things. Datawarehouses can be categorized in three types: CorporateData Warehouses, Data Marts, and Operational DataStores. Ideally, a company would like to have a “singleversion of the truth” in one large Corporate DataWarehouse so that all data used for reporting and analysisis extracted from it. Such a data warehouse will contain alarge amount of detailed transaction-level historical datathat covers multiple subject business areas broughttogether from multiple sources, and integrated into aconvenient format for extracting information for buildingData marts for individual departments and for other usesthat require detailed, granular historical data. In practice,a large company may have more than one datawarehouse, but not too many.Data marts are built to address the analytical needsof individual departments. For example, while Actuarialand Underwriting areas could possibly share a data mart,Marketing may need to have a separate data mart orientedto its specific needs and the Claims Department may have11January-March2011

e-trackto have still another data mart. Like the larger datawarehouse, data marts typically contain historical data.Selected data is summarized to a level adequate to meetthe intended analytical needs, for inclusion in the datamart. For example, actuaries typically do not need manyitems of data that might be of interest to Claimsprofessionals. The data for the data mart may come eitherexclusively from a data warehouse or certain operationalsystems, or both.Many experts advise against building data martsbefore completing an enterprise-wide data warehouse.They also prefer to have all the data for the data mart comefrom the data warehouse. They fear that otherwise, datacleansing efforts will be inadequate and proliferation ofindependent ''stove pipe” data marts will result in manyinconsistent “versions of the truth”, resulting inindecision and frequent and expensive efforts atreconciling data sources.Operational Data Store, unlike the data warehouseor the data mart, contains near-real time data capturedfrom operational systems. This data is used for tacticalanalysis to support on-line operations.Data warehousing is an on-going process, ratherthan a “once and done” effort. As the company and thebusiness change, the data warehouse, operational datastores and data marts need to evolve with them. New datawill have to be captured, and analytical tools have to bedeveloped and continuously improved.Need for Data Warehouse in InsuranceIn a traditional environment, operational systemslike policy management and claims management systemsprovide function –specific reports which can be used toextract information about a particular event. Theseoperational reports are useful for functional staff;however they provide very little strategic insight aboutthe overall effectiveness of company operations.In order to assess the growth of company,management needs to assess the interdependencies andimpact of several factors like product risks, geography,claims volume, customer loyalty, underwritingeffectiveness, etc. on the bottom line. Such an exercise isimpossible without the ability to pull together data fromvarious operational processes and analyze the impact ofone factor on the other and on the whole. One of the mostdifficult aspects of this, however, is comparing apples toapples as information from operational systems is rarelycompatible.Figure 2.0 highlights key areas. Getting a betterhandle on these key areas is necessary for an insurancecompany to remain competitive and achieve profitablegrowth. It is important to note that no single departmentalapplication can be expected to provide an overall pictureof the business. The data from multiple process areasmust be combined together to get cross-functionalintelligence. This central repository is called a DataWarehouse.Key RatiosCustomer CuC LoyaltyAnalysis(Policy renewals, lostbusiness by CustomerSegment, broker, products)UnderwritingAnalysis(Earned & writtenpremium by customer,broker etc)Data WarehousePolicies Claims Finanace/ CRMAccountsFig 2: Central Data RepositoryProfitability AnalysisOperationalAnalysis(Quote to policy, leadtime, and customerservices etc )(A central data repository allows decision makers to put multiple pieces ofthe puzzle together and respond in a better and more timely manner).ImplementationThe business needs are most critical in determiningthe contents and capabilities of the Business Intelligencesystem. Often such projects fail because they are built onthe assumption that “if we build, they will come”. Evenhaving the right software and top management supportmay not provide the expected benefits unless there is buyinfrom the users. The process of building the datawarehouse should go hand in hand with buildinganalytical expertise. The implementation of data miningand data warehousing for the insurance sector willnecessitate adoption of OLAP – On Line AnalyticalJanuary-March2011 12

e-trackProcessing – Decision Support software that allows usersto analyze information into multidimensionalsummarized views and hierarchies. These help trendanalysis, exponential fits for decision making.The electronic capture and storage of vast amountof data in data warehouses provide adequate data foranalysis by Business Intelligence tools for strategicdecision making. OLAP gives information that helpsdecision making, on the other hand knowledgemanagement is itself a part of automated decision supportand decision making process. Knowledge managementprocess has six stages. These are shown in fig 3.Business UnderstandingData Understandingbetter designed policies, appropriate pricing; and lowerrisk to the insurer can ultimately lead to securitization ofrisk portfolios thereby providing stability, growth andgreat potential for the insurance sector.ReferencesData Information Management, www.sas.comKimball, Ralph (1996), The Data WarehouseToolkit. Practical Techniques for BuildingDimensional Data Warehouses, New York etc.:Wiley&Sons.DWMS: Data Warehouse Management System,Software AG of Far East, Inc.Technology Challenges in a Data Warehouse,Teradata Research and Development, San Diego,California, USAData PreparationModellingEvaluationDeploymentFig 3 : Knowledge Management ProcessConclusion:Data warehouses, data marts, OLAP and predictiveanalytics are essential components of a BusinessIntelligence system. The data warehouse enables efficientseparation of historical data used for analysis fromtransactional databases. Business needs must drivedecisions about the structure and functionality of the datawarehouse or data mart. The data warehouse must be wellplanned for the organization to realize the expectedanalytical efficiencies.Visionary leadership of leading, frontline playerscan take advantage of the potential of the technology thatdata warehousing and data mining can deliver to theinsurance industry capitalizing on the advantages ofAttitudeThe longer I live, the more I realize the impact attitudehas on life.Attitude to me is more important than facts.It is more important than the past, than education,than money, than circumstances, than failures,than successes, than what other people think or say ordo.It is more important than appearance, giftedness or skill.It will make or break a company...a church...a home.The remarkable thing is we have a choice everydayregarding the attitude we will embrace for the day.We cannot change our past. We cannot change the factthat people will act in a certain way.We cannot change the inevitable.The only thing we can do is play on the one string wehave,and that is our attitude.I am convinced that life is 10% what happens to me and90% how I react to it.And so it is with you.We are in charge of our attitudes.~Charles Swindol13January-March2011

e-trackUBIQUITOUS COMPUTINGArchana SahaiSr. Lecturer, Amity Institute of information technology, Lucknow CampusThe word "ubiquitous" can be defined as"existing or being everywhere at the same time,""constantly encountered," and "widespread." Whenapplying this concept to technology, the termubiquitous implies that technology is everywhereand we use it all the time. Because of thepervasiveness of these technologies, we tend to usethem without thinking about the tool. Instead, wefocus on the task at hand, making the technologyeffectively invisible to the user. Ubiquitoustechnology is often wireless, mobile, and networked,making its users more connected to the world aroundthem and the people in it.In general we can say that ubiquitouscomputing is making many computers availablethroughout the physical environment, while makingthem effectively invisible to the user. Ubiquitouscomputing is held by some to be the Third Wave ofcomputing. The First Wave was many people percomputer; the Second Wave was one person percomputer. The Third Wave will be many computersper person. Three key technical issues are: powerconsumption, user interface, and wirelessconnectivity. The idea of ubiquitous computing asinvisible computation was first articulated by MarkWeiser in 1988 at the Computer Science Lab atXerox PARC.Ubiquitous computing (ubicomp) is a post-desktop model of human-computer interaction inwhich information processing has been thoroughlyintegrated into everyday objects and activities. In thecourse of ordinary activities, someone "using"ubiquitous computing engages many computationaldevices and systems simultaneously, and may notnecessarily even be aware thatthey are doing so. This model isu s u a l l y c o n s i d e r e dadvancement from the desktopparadigm. More formallyUbiquitous computing isdefined as "machines that fit thehuman environment instead of forcing humans toenter theirs."At their core, all models of ubiquitouscomputing (also called pervasive computing) share avision of small, inexpensive, robust networkedprocessing devices, distributed at all scalesthroughout everyday life and generally turned todistinctly common-place ends.Successful ubiquitous applications augmentexisting valued interactions rather thanseeking to replace them.Successful applications use real world objectsand humans at crucial points in the distributionand transmission of data, they do not insist onend-to-end digital data transfer and control.For example, a domestic ubiquitouscomputing environment might interconnect lightingand environmental controls with personal biometricmonitors woven into clothing so that illuminationand heating conditions in a room might bemodulated, continuously and imperceptibly.Another common scenario posits refrigerators"aware" of their suitably-tagged contents, able toboth plan a variety of menus from the food actuallyon hand, and warn users of stale or spoiled food.Ubiquitous computing is the extensive use ofembedded micro-controllers and automatic idJanuary-March2011 14

systems in ways that are transparent to the user.Some examples are the engine control computer inyour car, tivo, DVD, blu-ray players and other audiovideogear. Location dependent services on cellphones are another example.Ubiquitous computing presents challengesacross computer science: in systems design andengineering, in systems modeling, and in userinterface design. Contemporary human-computerinteraction models, whether command-line, menu-driven, or GUI-based, are inappropriate andinadequate to the ubiquitous case. This suggests thatthe "natural" interaction paradigm appropriate to afully robust ubiquitous computing has yet to emerge- although there is also recognition in the field that inmany ways we are already living in an ubicompworld. Contemporary devices that lend somesupport to this latter idea include mobile phones,digital audio players, radio-frequency identificationtags, GPS, and interactive whiteboardsCreating such an intuitive and distributeds y s t e m r e q u i r e s t w o k e y i n g r e d i e n t s :communication and context. Communication allowssystem components to share information about theirstatus, the user and the environment---that is, thecontext in which they are operating. Specifically,context information might include such elements as:The name of the user's current location;The identities of the user and of other peoplenearby;The identities and status of the nearby printers,workstations, Live boards, coffee machines,etc.;Physical parameters such as time,temperature, light level and weatherconditions.The combination of mobile computing andcontext communications can be a powerful oneConsider, for example, an employee who wants toshow a set of figures to his manager. As heapproaches his office, a quick glance at his tabconfirms that the boss is in and alone. In the midst oftheir conversation, the employee uses the tab tolocate the data file on the network server and torequest a printout. The system sends his request bydefault to the closest printer and notifies him whenthe job is finished.A Ubiquitous Computing InfrastructureUbiquitous computing is roughly the oppositeof virtual reality. Where virtual reality puts peopleinside a computer-generated world, ubiquitouse-trackcomputing forces the computer to live out here in theworld with people. Virtual reality is primarily a horsepower problem; ubiquitous computing is a verydifficult integration of human factors, computerscience, engineering, and social sciences.Attaining the goals of Ubiquitous Computingwill require a highly sophisticated infrastructure. Inthe ideal system, a real-time tracking mechanismwill derive the locations and operational status ofmany system components and will use that context todeliver messages more intelligently. Users will beable to choose from among a variety of devices togain mobile, high-bandwidth access to data andcomputational resources anywhere on the network.These devices will be intuitive, attractive andresponsive. They will automatically adapt theirbehavior to suit the current user and context.Although one can speculate about the designof a future system, unfortunately the componentsneeded to build such an infrastructure have yet to beinvented.15January-March2011

e-trackFUTURE DIRECTIONS FOR TOTAL QUALITY MANAGEMENT1Nirupma PathakAssistant Professor, LBSIMDS, Lucknowimportance depending upon theneed or requirement of customer oruser. Some of the importantdefinitions of Quality are as under-AbstractTotal Quality Management is a managementstyle based upon producing quality service asdefined by the customer. TQM is defined as aquality-centered, customer-focused, fact-based,team-driven, senior-management-led process toachieve an organization's strategic imperativethrough continuous process improvement. TQMprinciples are also known as total qualityimprovement, world class quality, continuousquality improvement, total service quality, and totalquality leadership.TQM is not a complete solutionformula as viewed by many – formulas can not solvemanagerial problems, but a lasting commitment tothe process of continuous improvement.The main objective of this research paper is amethod by which management and employees canbecome involved in the continuous improvement ofthe production of goods and services. It is acombination of quality and management tools aimedat increasing business and reducing losses due towasteful practices.1. Introduction1.1 Definition of QualityQuality is a term which has a very wide rangeof meaning depending upon situation andcircumstances. It is a relative term. The quality isgood or bad is decided with respect to the somecontrary ideal one. It has been listen many times thatthe particular item or component failed due to thepoor quality and particular item or component ishaving a very long life due to its good quality. Thequality of a product may have greater or lesserIt is the degree to which thep r o d u c t m e e t s t h erequirement of Customer.It is the fitness of product or services for it'sintended use.The Quality of a product is it's reliability inrespect of it's various characteristics of shape,make, dimensions, finish, utility, durabilityand ease in use to the customer.Quality is the totality of features andcharacteristics of product and services thatbear on its ability to satisfy a given need. (Asper American Society of Quality Control i.e.ASQC, Standards A3 – 1987, Glossary andtable of SQC)The determination of quality is being done bycustomers itself. Following is the model fordetermination of quality by customer wherecustomer determines the quality in two ways i.e. byrequirement and assessment.CustomersCustomer’sAssesmentCustomer’sRequirement1.2 Goal of qualityVendorsQuality feed backInputQuality Feed BackQualitySpecificationProducer’sProcessQuality always spins arround the customers.January-March201116

e-trackThe core issue to start with is that the product andservice should be fit in functionality, performanceand reliability. It should also be to customer fit inrespect to on time delivery, quality and price. At thesame time goal of quality should be customerfocused. The ultimate goal of quality is the customerfocused as given in following models.Product/ service fit – core issue to start with* Functionality *Performance *ReliabilityCustomer Fit – It works as binder for* Time delivery * Quality * PriceGoal of Quality Figure-2Customer Focus – Ultimate goal to•Exceed the customer’s expectation•Understanding the customer’s business•Consulting and training•Organizational alignment1.3 Total Quality Management (TQM)1.3.1 Definition-The word "total" in Total Quality Managementmeans that everyone in the organization must beinvolved in the continuous improvement effort, theword "quality" shows a concern for customersatisfaction, and the word "management" refers tothe people and processes needed to achieve thequality.Total Quality Management is not a program;it is a systematic, integrated, and organizationalway-of-life directed at the continuous improvementof an organization. It is not a management fad; it is aproven management style used successfully fordecades in organizations around the world. TQM isnot an end in itself; it is a means to an organizationalend. Total Quality Management must not be theprimary focus of an organization; it should merely bethe means to achieve organizational goals.Total Quality Management differs from othermanagement styles in that it is more concerned withquality during production than it is with the qualityof the result of production. Other management styleshave different concerns. Some major styles arecompared with TQM as follows.Management-by-Objectives (MBO) emphasizesachieving specified objectives, under the control ofindividual managers. This approach works againstmulti-functional process performance and interfereswith teamwork and quality. TQM is not objectiveoriented,except for its one goal of achievingcontinuous quality improvement.Management-by-Results (MBR) is managementby viewing past results as an indication of futureresults. It has been compared to driving anautomobile in a forward direction while looking inthe rear view mirror. In today's fast-paced, quickchangingbusiness environment, managers cannotrely on past results as a predictor of futureperformance. In contrast, TQM is only concernedwith current results and ways to improve them.M a n a g e m e n t - b y - E x c e p t i o n ( M B E ) i smanagement by identifying specific targets formanagement attention and action. It produces short-term results by reacting to immediate problems, butthere is no analysis of the processes that producedthe problems, so long-term benefits are lost. On theother hand, TQM is more concerned with correctingprocesses that produce problems than it is withresponding to individual problems.1.3.2 History of TQM-Total Quality Management was developed inthe mid 1940s by Dr. W. Edward Deming who at thetime was an advisor in sampling at the Bureau ofCensus and later became a professor of statistics atthe New York University Graduate School ofBusiness Administration. He had little successconvincing American businesses to adopt TQM buthis management methods did gain success inJapan.After World War II, General Macarthur took17January-March2011

e-track200 scientists and specialists, including Dr. Deming, from management or denied, and thus being allowedto Japan to help rebuild the country. While working to blossom into larger less easily rectified problems,on the Japanese census, Dr. Deming was invited by they are tolerated and employees are encouraged tothe Japanese Union of Scientists and Engineers to try again. Employees begin to develop agive lectures on his statistical quality techniques. commitment to the organization rather than lookingOne of the attendees was a past professor to many of at it as just their employer. When employees feelJapan's CEOs. After attending the lectures, the they are an integral part of the organization, they feelprofessor told his CEO students that, if they wanted needed and enjoy work more, which may furtherto turn Japan's economy around in five years, they increase service quality.should attend Dr. Deming's lectures on using 1.3.4 Disadvantages of TQMstatisticsto achieve quality at a reduced cost. Many Some Total Quality Management detractorsof the CEOs took the professor's advice and attended have noted that long-range plans advocated by TQMthe lectures.may limit an organization's flexibility and agility.1.3.3 Advantages of TQM-TQM teaches that a long-term plan is required toShort-term and long-term advantages are achieve a complete quality transformation, but apresent in any management style. Total Quality long-term plan that has been pursued for a longManagement has few short-term advantages. Most period may become an end unto itself. Completion ofof its benefits are long-term and come into effect the plan becomes the ultimate goal. Objectives theonly after it is running smoothly. In large plan was designed to accomplish are forgotten;organizations, it may take several years before long- achieving the transformation becomes the mostterm benefits are realized.Long-term benefits that important objective. Instead of maintainingmay be expected from Total Quality Management continuous change, the organization may reach aare higher productivity, increased morale, reduced stable point and stagnate. To produce continuouslycosts, and greater customer commitment. These high quality services, an organization must reactbenefits may lead to greater public support and quickly to changes in the community and not beimprovement of an organization's public image. restricted by its management style.Eliminating errors and doing things right the firsttime saves time and resources. The savings may thenbe used for expansion of services or made available1.3.5 Adopt a TQM framework for qualitymanagementTotal Quality Management, or TQM, has beento employees in their efforts to increase service implemented in many healthcare organizationsquality.during the last decade. The teachings of industrialTotal Quality Management may create an quality gurus, such as Deming and Juran, haveorganizational atmosphere of excitement and sense established new principles and processes forof accomplishment through the rewarding of managing quality. Personally, I have found thatcreativity. When experimentation-oriented failures Deming provides the principles for what needs to beare accepted as a part of the learning process, done and that Juran describes the methodologies oremployees feel free to use their creative energies to processes for getting it done.develop new ideas.Instead of mistakes being hiddenJanuary-March201118

e-trackbear on the achievement and satisfaction ofcustomer needs. Characteristics such asturnaround time, patient preparation,specimen acquisition, etc., are monitoredthrough QA activities. Proficiency testingprovides an external or outside measure ofanalytical performance.Quality Improvement (QI) is aimed atdetermining the causes or sources of problemsFigure-3identified by QC and QA. The causes of someJuran's quality triology is particularly problems can be determined by individualimportant because it identifies quality planning as an analysts. Other problems may require a teamintegral component of TQM . We have illustrated of people and a team problem-solving processhow quality planning can be integrated with other and team problem-solving tools (such as thequality management functions using the model flowchart, Pareto diagram, Ishikawa causeshown in the accompanying figure [3]. This TQM and effect diagram, force field analysis, etc) .framework involves quality laboratory processes, Quality Planning (QP) is concerned withquality control, quality assessment, quality establishing and validating processes thatimprovement, quality planning, and quality goals. meet customer needs. The selection andQuality Laboratory Processes (QLP) refers evaluation of new methods and instrumentsto the policies, procedures, personnel fits here, as well as selection and design of QCstandards, and physical resources that procedures.determine how work gets done in the Quality Goals represent the requirements thatlaboratory. Laboratory method manuals must be achieved to satisfy the needs ofdescribe the standard operating processes for customers. For analytical quality, theproducing test results.requirement is to provide test results that areQuality Control (QC) refers to procedures for correct within stated limits.monitoring the work processes, detectingproblems, and making corrections prior to1.3.6 Learn the principles of quality planningfrom industrydelivery of products or services. Statistical Industry has learned that to guarantee quality itprocess control, or statistical quality control, is necessary to specify what performance is requiredis the major procedure for monitoring the and how to know if that performance is achieved. Ananalytical performance of laboratory operational definition is needed to tell people what tomethods.do and how to know if they're doing it right. ForQuality Assessment (QA) refers to the example, "answer the telephone within threebroader monitoring of other dimensions or rings" tells a person what to do and how to know ifcharacteristics of quality. Quality involves the they're achieving the desired performance. Thetotality of features and characteristics that important message here is that bench level19January-March2011

e-trackspecifications are needed to assure the quality ofroutine operations. For analytical quality, theseoperating specifications must describe theimprecision and inaccuracy that are allowable for themethod and the control rules and number of controlmeasurements that are necessary for routine QC.1.3.7 Utilize available quality-planning tools andtechnologyIt is easy to see how this planning approach canbe used to achieve the desired turnaround time for alaboratory test. A quality requirement can be definedin the form of an allowable turnaround time on thebasis of discussions with the users. The steps in theprocess can be identified from the point of orderingthe test, acquiring the specimen, transporting thespecimen, processing the specimen, analyzing asample, reporting the result, and receiving the result.Portions of the allowable turnaround time can thenbe allocated to different steps in the process,establishing specifications for each of the steps, andallowing those steps to be monitored to be sure thedesired performance can be achieved.convert quality requirements into specifications forthe imprecision and inaccuracy that are allowableand the QC that is necessary. These models aredeveloped by identifying the various factors or stepsin the process, allocating or budgeting a portion ofthe quality requirement to that factor or step,building in a QC check to assure the desired qualityor performance is achieved for that factor or step,then balancing the budget for the whole process andmonitoring (or controlling) that budget duringroutine operation .2. ConclusionTotal Quality Management encouragesparticipation amongst shop floor workers andmanagers. There is no single theoreticalformalization of total quality, but Deming, Juran andIshikawa provide the core assumptions, as adiscipline and philosophy of management whichinstitutionalizes planned and continuous..Improvement. and assumes that quality is theoutcome of all activities that take place within anorganization; that all functions and all employeeshave to participate in the improvement process.Cartoon by John Meyer, MD.Figure-4For analytical quality, the translation is moredifficult. Quality-planning models are used to3. Future WorkNo evaluation on quality management systemswould be complete without noting the potential foradditional improvements. The quality processdemands a push toward continuous improvement ofcustomer focus and operational procedures. Qualityis a journey, not a destination.In future, there are four major opportunities forimprovement in the quality planning process:Additional strategic planning initiativesOrganizational goal settingEvaluation of correct performance indicatorsDevelopment of additional internal andJanuary-March201120

e-trackexternal performance measures for the associated measures for empirical research”,organization. 1995, ISSN: 0263-5577The next few years should prove quite http://www.bia.ca/articles/ TheFuture ofexciting for organizations throughout the world. Quality and Project Management.htmQuality thinking will play an extremely important h t t p : / / w w w . q u a l i t y d i g e s t . c o m /role in changing these organizations. We are jan98/html/qmanage.htmlprobably only beginning to understand how muchAragon, R. (1993). Positive organizationalwe are going to change.culture. A Practical Approach. FBI LawEnforcement Bulletin, 62(12), pp. 10-13.4. ReferencesBennis, W. and Nanus, B. (1985). Leaders:http://www.google.co.in/search?hl= en&q= The Strategies for Taking Charge. New York:c o n c l u s i o n + o f + q u a l i t y + Harper & Row.management&meta=Biech, E. (1994). TQM for training. Newhttp://www.engineers-international.com/ York: McGraw-Hill.qualitysystem.htmlCartin, T. J. (1993). Principles and practices ofh t t p : / / w w w. i s o . o r g / i s o / i s o 9 0 0 0 - TQM. Milwaukee, Wisconsin: Quality Press.14000/iso9000/qmp.htmlColeman, D. (1997). A member of the youngerh t t p : / / w w w . i s i x s i g m a . c o m / generation dares to question Total Qualitylibrary/content/c031008a.aspManagement, a pillar of modern management.http://www.hkbu.edu.hk/samho/tqm/tqmex/ [ O n l i n e ] . A v a i l a b l e :intro.htlmhttp://www.teleport.com/~editor/cr/feb-http://www.globalqualityvillage.commar/page36.html [1998, January 6]./qmprinciples. phpEberts, R. and Eberts, C. (1995). The myths ofJapanese quality. Upper Saddle River, Newhttp://home.att.net/ iso9k1/tqm/tqm.htmlJersey: Prentice-Hall. h t t p : / / w w w . i n d i a n g y p s y . c o m /Favreau, D. F. and Gillespie, J. E. (1978).quality_assurance.htmlModern police administration. EnglewoodICH1 Guidance E6: Good Clinical Practice:Cliffs, New Jersey: Prentice-Hall.Consolidated guidelineFellers, G. (1992). The Deming vision:Pyzdek, T, "Quality Engineering Handbook",SPC/TQM for administrators. Milwaukee,2003, ISBN 0824746147Wisconsin: ASQC Quality Press. Galloway &Godfrey, A. B., "Juran's Quality Handbook", Fitzgerald (1992)1999, ISBN 007034003Garvin, D. A. (1984). What does "producthttp://en.wikipedia.org/wiki/ Quality quality" really mean? Sloan Management_management_system Review, 26(1), pp. 24-43.Forza ,C, “Quality information systems andquality management: a reference model andGray, K., Stohr-Gilmore, M. K., and Lovrich,N. P. (1991). Adapting participatory21January-March2011

e-trackmanagement for a paramilitary organization:The implementation of teams in theWashington State patrol. American Journal ofPolice, 10(4), pp. 27-47.Saylor, J. H. (1996). TQM simplified. Apractical guide. (2nd ed.). New York:McGraw-Hill.Warcup, D. (1992). Abandoning tradition: Theconcept of TQM in the police service. TheJanes, R. W. (1993). TQM: Can it work infederal probation? Federal Probation, 57(4), Police Journal, 65(1), pp. 56-61.pp. 28-33.Westgard JO, QA: Are laboratories assuring,Johnson, R. S. (1993). TQM: Leadership for assessing, or assuming the quality of clinicalthe quality transformation. Milwaukee, testing today? Proceedings of the CDC 1995Wisconsin: ASQC Quality Press.Institute on Critical Issues in HealthNavy Personnel Research and Development Laboratory Practice: Frontiers in LaboratoryCenter. (1992). Fundamentals of total quality Practice Research. CDC, Atlanta, GA, 1996,leadership. San Diego, California: pp 179-189.Department of the Navy.Westgard JO. Error budgets for qualityOmachonu, V. K. and Ross, J. E. (1994).Principles of total quality. Delray Beach,Florida: St. Lucie Press.Pym, J. (1993). What's wrong with TQM?Pym & Company Consulting.management: Practical tools for planning andassuring the analytical quality of laboratorytesting processes. Clin Lab Manag Review1996;10:377-403.Two Brothers and the GeeseTwo sons work for their father on the family's farm. The younger brother had for some years beengiven more responsibility and reward, and one day the older brother asks his father to explain why.The father says, "First, go to the Kelly's farm and see if they have any geese for sale - we need to addto our stock."The brother soon returns with the answer, "Yes they have five geese they can sell to us."That father then says, "Good, please ask them the price."The son returns with the answer, "The geese are $10 each."The father says, "Good, now ask if they can deliver the geese tomorrow."And duly the son returns with the answer, "Yes, they can deliver the geese them tomorrow."The father asks the older brother to wait and listen, and then calls to the younger brother in a nearbyfield, "Go to the Davidson's Farm and see if they have any geese for sale - we need to add to our stock."The younger brother soon returns with the answer, "Yes, they have five geese for $10 each, or tengeese for $8 each; and they can deliver them tomorrow - I asked them to deliver the five unless they heardotherwise from us in the next hour. And I agreed that if we want the extra five geese we could buy them at$6 each."The father turned to the older son, who nodded his head in appreciation. He now realized why hisbrother was given more responsibility and reward.~author unknownJanuary-March201122

BOOK REVIEWe-trackIndian Financial System - Evolution and Outlookby Mr. K. L. KhetarpaulThe author retired as the Executive Director ofReserve Bank of India (RBI) and today turns out tobe the leading Financial and ManagementConsultant in India with his new age consultancyenterprise, Khetarpaul and Associates. The book is areflection of author's 37 years of experience ofworking with the regulatory body of India, itsregulation and impact.About the book : The book is an endeavour tonarrate the basics of financial sector in simple termsand induct the reader to Indian Financial system'sevolution, present structure and outlook. It coversIndia's banking sector, monetary policy, capitalmarkets, foreign exchange and insurance sector -and the role of Reserve Bank of India in effectivelyguiding the sector. With 37year experience in India'sbanking system, the author shares a perspective of aregulator who has been involved in framingfinancial policy and regulation.About the Author : Krishan Lall Khetarpaulretired as Executive Director of RBI in June 2003.He served as the Head of the Standing TechnicalCommittee of RBI and SEBI for Capital Markets,was associated as Member of the Working Group onConsolidated Accounting and Supervision andMember of the Consultative Group of Directors ofBanks/ Financial Institutions to review thefunctioning of their boards. He served as a nomineedirector on the boards of Jammu and Kashmir Bank (2004 – 06)Ltd. and Punjab National Bank and also Trustee onthe board of Unit Trust of India. He was a director onthe board of Deposit Insurance and Credit Guranteecorporation and a Member on the GoverningCouncil of Indian Institute of Banking and Finance.He was the first Director of the Punjab NationalBank Institute of Information Technology, Lucknow23January-March2011

e-trackPunjab National Bank Institute ofInformation Technology (PNBIIT) set up byPunjab National Bank as an autonomousregistered non-profit society, has beenconducting various training programmes,seminars and conferences on contemporarytopics for senior and middle level executives ofbanks and educational programmes for studentsfor the past eight years.Endeavoring to provide well groomedAdvanced Diploma in Banking Technology(ADBT) in 2007 with focus on industry relevantcore IT and inputs of banking includingoperational areas to serve as a bridge betweenacademia and industry. ADBT prepares B Tech,BE & MCA pass outs with minimum 60% marksin qualifying examinations and age not morethan 25 years to become techno bankers.Out of the three successful batches ofADBT 83% students got placed from campus inprofessionals to banks and IT companies following organisations -supporting banks, PNBIIT launched a six monthADVANCED DIPLOMA IN BANKINGTECHNOLOGY (ADBT) – BATCH IVth4 Batch of ADBT commenced from 15.11.2010 and will conclude in May 2011. Details of the coursecurriculum and brief profile of the students of the ADBT-IV may be viewed athttp://pnbiit.ac.in/placement_cell.php. While wishing them all success in their career, we invite prospectivecompanies at the Institute for campus recruitment during 15th to 30th April 2011. For arrangements, pleasecontact Sh. Sunil Agrawal, Chief Faculty and Placement In charge (Tel : 0522 272 1442 / 1173 / 1174, Mobile:+91 9415008868)January-March201124