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TECHNICAL NOTES AND INSTRUCTIONS CD-ROM VERSIONS

SYSTEM REQUIREMENTS

IBM PC or 100% compatible with 386 processor or better, 2 Meg RAM, (of which 550k free base memory) 256 colour VGA graphics, Hard drive, MicrosoftTM compatible mouse. CD-ROM Drive with 150K per second transfer rate. Supports AdLibTM, RolandTM and Sound BlasterTM.

INSTALLING THE GAME

Beneath a Steel Sky CD stores saved games and configuration information to your hard drive. To install, put the CD in your drive, select the drive and type INSTALL (then press RETURN).

The Install program will set up a directory on your Hard Drive called SKY and save the language information and machine configuration information into this directory.

RUNNING THE GAME

Once the installation is complete the program will exit to DOS and you can run Beneath a Steel Sky by selecting the SKY directory on your hard drive and typing SKY (RETURN). The program will remember which CD ROM drive to use along with all the other configuration information

PAUSING THE GAME

To pause the game press P; all action will freeze and the screen will be dimmed. Press P again to restart.

SCREEN SAVER

If you leave the game without moving the mouse for approximately 5 minutes, an automatic screen saver will be enabled and the game will freeze. To resume play simply move the mouse or press a key.

SCROLLING

In some parts of the game, screens will scroll. This feature can be disabled by pressing the SCROLL LOCK key.

SOUND CARD SUPPORT

Beneath a Steel Sky supports the RolandTM, Sound BlasterTM and Ad LibTM sound cards.

CONTENTS

CHAIRMAN'S FOREWORD

REICH S. COMMANDER

BRIEFING NOTES

OPERATION ’STEEL SKY’

REVOLUTION SOFTWARE LIMITED

CREDITS

FOREWORD BY THE CHAIRMAN

OF THE UNION SECURITY COUNCIL

The council is proud of the achievement of the security forces in promoting the interests of the Union Group. It is your fight against subversion that has allowed continued recovery.

Over the last year market share has again increased despite production restrictions due to mineral shortages. The acquisition of Asio-City makes the Union Group the second largest of the six remaining city states and represents the capitulation of the last non corporate city.

The quality of the air being re-cycled within the protection dome that encases the city continues to improve. The predictions made last century about deteriorating public health due to ecological poisoning has been proved to be untrue. Even the toxic air outside the dome in ‘the Gap’ has not deteriorated beyond the point of supporting human life.

Security in the Gap has been a top priority. After pre-emptive strikes against random Gap villages, there has been a marked increase in community taxation receipts and a reduction in economically damaging ‘scavenging’ raids.

The Hobart corporation continues the abhorrent market policies eradicated decades ago in the Union Group. Their discredited policies of labour representation and social benefits for the ‘needy’ contradicts the basic neo democratic principles agreed on cessation of hostilities of the Great Euro-American war. Since the LINC computer system was assigned control of all city functions twenty years ago, a determined economic war has been waged, and is being won, against Hobart which has consistently sought to undermine the foundations of our success.

We can congratulate ourselves on another successful year. And, as always, be vigilant, be alert.

NAME:

REICH S. COMMANDER

ADDRESS:

BELLE VUE GARDENS, EYRIE 2291

AGE:

36 YEARS

LINC STATUS:

SPECIAL OPERATIVE NO:

UO88 / H2

This Security Manual is to be carried by you at all times. It provides you with rules and guidelines to which you should adhere. Areas and suspects currently under surveillance are listed. Additions to the lists will be made via the special code files in your LINC directory. Ensure that you check your files daily using your Special Operative card for new information and special mission orders. You will report to Chief Blazer through LINC communiqués.

You will be based at Security Headquarters in Granville Heights Room 1030.

BRIEFING NOTES:

As Senior LINC Security Officer you are responsible for the protection of all Union City personnel from external espionage. It is known that Hobart personnel have attempted to infiltrate Union City and their identification and elimination is a top priority. This manual includes a list of blocks, with their reference number, in which Hobart activities are suspected. You should liaise closely with your counterparts in these blocks.

You have security clearance in the Industrial sector of Eyrie Tower and the suburban sector, Belle Vue. Special status clearance may be requested for operations outside immediate jurisdiction.

Briefing documents for your orders are included. Further details and updates are available from your LINC directory.

PRIORITY

BRIEFING NOTES REF: O2/OSS

LINC status: High - to be executed immediately.

Reconnaissance mission to gap to return Robert Overmann to Union City. Suspect to be returned alive. Repeat alive.

Read the following background information carefully. Subject Robert Overmann known to have been taken by mother Ref: VP06/N9 Pierro in bid to defect to Hobart. Engine sabotaged and flight terminated in Gap Ref: F9/367, S23/820. Initial inspection at crash site revealed a shallow grave containing the remains of Pierro. Presume subject Pierro buried by Gap people. No infant remains found in or around the crash site. Robert Overmann survival assumed. Crash site at location 01312 north 23100 west. Take a squadron to the grave site and carry out a full inspection. Proceed to search surrounding area for possible leads to Robert Overmann.

On return to Union City report to Chief Blazer using your LINC card for further instruction.

GOOD LUCK !

WHAT IS GOING ON IN UNION CITY?

In Beneath a Steel Sky you take the role of Robert Foster, abducted by brutal Security forces and brought to Union City. Foster’s fate is in your hands as he talks to people and explores the area around him in an attempt to discover why he was brought to the City. At the start of the game Foster has escaped from the wreck of the helicopter in which he was kidnapped. Now it is up to you to ensure that he eludes Security in order to discover his past and his destiny.

CONTROLLING THE GAME

Beneath a Steel Sky is played using the mouse to move a cursor about the game screen. Clicking on objects or characters will cause Foster to interact with them.A full description of how to use the mouse to tell the computer what you want to do is shown below in Game Control Summary.

MOVING ABOUT IN UNION CITY...

Normally, Foster can be moved by pointing the cursor at certain areas on the screen and clicking either of the mouse buttons. Obviously, Foster will not walk up walls or to areas to which he has no access. If he is blocked by another character while moving he will attempt to find an alternative route.

The cursor will change to a large arrow when positioned over a possible exit. Occasionally, Foster may be able to look through windows to adjoining rooms. This is done by clicking the RIGHT button while the cursor is over a window.

EXPLORING AND MANIPULATING ITEMS...

Certain objects in the game may be examined or used by Foster. These objects will be identified by their name and the cursor will change to a cross when over them. Pressing the LEFT button will cause Foster to examine the object. Pressing the RIGHT button will prompt Foster to pick up an object, or to attempt to use or operate the selected object. Virtual Theatre has a feature which automatically selects the most logical manner in which an object can be used or manipulated. For instance, if you click on a closed door the program assumes that you wish to OPEN it (or CLOSE an open door), or in the case of a button, that you want to PUSH it.

Objects which are picked up and carried will appear in Foster’s inventory. To display the inventory move the cursor to the top of the screen. Select an item by pointing at it and clicking the RIGHT button. The selected object will be highlighted and you are now able to use that item on any other visible object on screen, including other objects in the inventory. The selected object can also be offered to other characters.

PUTTING WORDS INTO FOSTER’S MOUTH...

Foster will meet many strange characters in the game, and from them he can find out more about the City. Not all of them will be friendly, but with perseverance and luck he may find allies who will help him.

When the cursor is moved over another character in the game, his or her name will be displayed (if known by the player). Clicking either mouse button will prompt Foster to talk to the selected character. Usually, you will have a choice of text which is displayed at the top of the screen. Select a question or remark by pointing the cursor at the line of text and click either mouse button.

GAME CONTROL SUMMARY

Don't panic, it's easy! The Virtual Theatre interface has been designed to be easy to use. You can interact with the backgrounds and people you meet easily and simply using your mouse. Follow the example shown below and you are on your way.

GAME SCREEN

When the game starts your mouse pointer will be a SMALL ARROW. Move the pointer over the door on the right hand side of the screen and it will change into a CROSS with the word DOOR next to it. Press the LEFT BUTTON and Foster will look at the door. Press the RIGHT BUTTON and Foster will use the door (try to open it). Unfortunately it's locked so you will have to find something to open it with.

CURSOR SHAPE LEFT MOUSE RIGHT MOUSE

Small arrow Walk to pointer Walk to pointer

Cross (over an object) Look at object Use/pick up object

Large Arrow (over doorway) Exit the location Exit the location

Cross (over a person) Talk to person Talk to person

INVENTORY MODE

Move the pointer to the top of the screen and a bar will drop down showing the items Foster is carrying. The mouse works in the same way with the items in the inventory. Pointing at them will reveal what they are. Press the LEFT BUTTON and you will get a description. Press the RIGHT BUTTON and you will pick up the item (it will be attached to the pointer). If you now move the pointer (with the item) over an object like the door and then click either button Foster will attempt to USE the inventory object on the background object/person.

CURSOR SHAPE LEFT MOUSE RIGHT MOUSE

Cross (over an item) Look at item Pick up item

Cross with item (over person) Give item to person Give item to person

Cross with item (over object) Use item on object Use item on object

If you direct Foster to attempt something impossible or pointless (using a Spanner on a Sandwich) he will turn and shrug his shoulders.

CONTROL PANEL

Press F5 to access the control panel. From this screen you can save and restore your position in the game, and change the game settings to your preference. To return to a game in progress, click on the PLAY button.

SAVING GAMES

As you play Beneath a Steel Sky you are advised to save your game at regular intervals. That way, if you want to backtrack to a certain section and choose a different path, or if you have been careless enough to get Foster into a “negative existence situation”, you need not play the whole game from the beginning.

Clicking on the SAVE button will display a list of slots in which you can save your position. This list can be scrolled by clicking on the up or down arrows to the right of the list. Click on one of the slots in order to select it, then use the keyboard to describe the current save (maximum of 18 characters). You may also use BACKSPACE to erase or rename a slot description. Click again on the SAVE button or press RETURN to save the game. If you change your mind and do not wish to save, click on the CANCEL button.

RESTORING SAVED GAMES

Click on the RESTORE button to display the current list of saved games, then click on one of the occupied slots to select it. Press RETURN or click on RESTORE to load a game. If you change your mind and do not wish to restore a game, click on the CANCEL button.

Remember when restoring a game that the current game in progress will be lost.

OTHER OPTIONS

The remaining buttons and sliders on the control panel enable you to Quit the game and exit to DOS, Restart the game, Change between ‘Speech Only’, ‘Text and Speech’ or ‘Text Only’, adjust music volume and the speed of the game.

PLAYING TIPS

Talking to the inhabitants of Union City will often provide clues which will help your progress. Examining

objects may also provide clues - and Joey’s analytical skills may prove of use.

If you are totally stuck, it may prove useful to return to areas of the City which you’ve already visited.

WARNING!!

THE FOLLOWING HINTS ARE SPECIFIC TO SECTION ONE.

THEY ARE INTENDED TO AID PLAYERS WHO ARE NEW TO THIS TYPE OF GAME.

To escape the first guard, get the rung from the left hand side of the ledge and use it to open the door on the right.

To obtain a spanner, stand on the lift to distract Hobbins. As soon as you can, walk through to his workshop and open the small cupboard on the left of the back wall. The spanner will be a very useful item later in the game, so grab it quick before Hobbins returns!

To get Joey up and running you must insert his character board into the discarded robot shell below the lift.

To start the transporter robot in the lift room, examine it then talk to Hobbins until he tells you what is wrong with the robot. You will then be able to tell Joey to mend the robot. This in turn will cause the lift to start running when the robot returns with a canister. As the lift descends you will be able to climb into the lift shaft.

To escape from the furnace, examine the slot beside the door. You will then be able to instruct Joey to open the door.

GOOD LUCK

TROUBLE SHOOTING

Beneath a Steel Sky uses a custom memory manager which should enable you to run the game without having to alter your machine set up or free up base memory. The memory manager will scan your memory set up and use any Base/Extended/Expanded memory it finds. If there is insufficient memory, because you have other programs running in memory, it will even use your hard drive as 'Virtual Memory'.

If the game gives an error message 'Out of Memory', then the memory manager has tried its best but you will need to do one of the following;

1: Free memory by removing any memory resident programs.

2: Free space on your hard drive by deleting old UNWANTED files.

3: Create a DOS boot disk. (Insert a blank floppy disk into your drive and type FORMAT A:\S (RETURN). Once formatting is complete, switch off your machine and switch on with the boot disk in the drive. The machine will start with a 'clean' system that has maximum free memory. You should now be able to play 'Steel Sky' without problems. Note: Remember to run your mouse driver before load-ing 'Steel Sky'.

CUSTOMER SERVICES

In the case of faulty disks you should return ONLY the disks to Customer Services Department, Sold Out Software, Unit 308 The Chandlery, 50 Westminster Bridge Road, London SE1 7QY with a covering letter containing your name, address and details of the fault.

If you encounter technical problems with Beneath A Steel Sky you should write to the above address or call the technical support line on 0171 721 8767 between the hours of 10.00am to 1.00pm and 2.00pm until 5.00pm. Please have full details of your machine configuration and the problem you are encountering with you when you call.

NOTES

Operation 'Steel Sky'

1.26pm - Reached grid location 01312 N, 23100 W. Temperature 109•C. Radiation levels high. Craft debris identified. Full inspection of grave site Ref: VP06/NP. Pierro. Exhumed body identified as Pierro. Confirm no infant remains found.

4.03pm - Investigated rock outcrop in which heat source was revealed. Discovered group of twenty subhuman dwellers who appeared to be suffering from Gap plague. No physical contact made for fear of contamination. Dwellers were unable to provide any information.

8.44pm - Encountered a small encampment after many hours of searching. Tribe leader indicated knowledge of someone resembling Robert Overmann’s description living with a group of migrants located due west. Despite further interrogation he was unable to provide any details.

10.23pm - Located tribal camp. Positive identification of subject achieved using DNA scanners.

10.45pm - Subject taken into custody and began return flight to Union City.

11.00pm - Carried out final mission orders. Prisoner showed signs of aggression and had to be temporarily restrained.

05.32am - Passed first guidance beacon. Automatic landing sequence initiated.

REVOLUTION SOFTWARE LIMITED

The following information was extracted under considerable duress from a reluctant subversive. This group should be identified and kept under close surveillance.

Revolution Software started life three years ago above a fruit shop in Kingston upon Hull. Born into the harsh world of entertainment software development, the fledgling company devised a system called ‘Virtual Theatre’. The system created a real world with real characters allowing unique features to be designed into graphic adventures. ‘Virtual Theatre’ would change the face of graphic adventures forever. Impressed by the system, Mirrorsoft - the publisher owned by Robert Maxwell - signed their first product, ‘Lure of the Temptress’.

A yachting accident put paid to Mirrorsoft - but not to Revolution or Virtual Theatre. Revolution jumped ship and then re-licensed ‘Temptress’ to Virgin games.

The success of their first project convinced Revolution to further expand their ambitions. Working with top comic book artist Dave Gibbons, it was decided to embark on designing a new generation of graphic adventure. The blueprint for ‘Beneath a Steel Sky’ was thus conceived. Two years later they are proud to present their work - a significantly enhanced Virtual Theatre system, driving a game that is six times larger than ‘Lure of the Temptress’.

Revolution is again planning what the next generation of computer gamers can expect. State-of-the-art graphics technology is being used to produce images to be displayed using advanced cinematic techniques. With support from the British Department of Trade and Industry, leading edge Artificial Intelligence is being written to be incorporated into future games.

BE VIGILANT! THE REVOLUTION HAS ONLY JUST BEGUN

You should be aware that the following Hobart Agents are believed to have written software that casts Union City and her Security Services in an unfavourable light.

THEY ARE:

Game Design - Charles Cecil,

Dave Cummins, Dan Marchant & Dave Gibbons

Script - Dave Cummins

V T System Concept - Charles Cecil,

Tony Warriner, Dave Sykes and Dan Marchant

V T System Design - Tony Warriner

V T System 2.0 Implementation - Dave Sykes & Tony Warriner

Programming - David Sykes, Tony Warriner & James Long

Comic - Dave Gibbons

Backgrounds Screens - Dave Gibbons

Background paintings - Les Pace and Steve Ince

Computer graphics & animation - Stephen Oades,

Adam Tween, Paul Humphreys & Steve Ince

Music - Dave Cummins

Music conversion & sound effects - Tony Williams

Quality Assurance - D. Marchant, J. Wright,

P. Coppins, R. Hewison, A. Phelan, J. Martin

Assistant Producers - Aron Phelan, Peter Hickman

Manual -Noirin Carmody, Dave Cummins and Charles Cecil

Produced - Daniel Marchant

Directed - Charles Cecil

Packaging Design -Root Associates

Logistics -Catherine Spratt, Robert Mc Grath,

Rosemarie Dalton, Rizwan Khan, Matthew Walker

TERMINATE ANY SUSPECT ON SIGHT.

This document represents voluntary guidance for the pharmaceutical excipient industry and the

contents should not be interpreted as regulatory requirements. Alternative approaches to those

described in this guide may be implemented.

FOREWORD

IPEC is an international industry association formed in 1991 by manufacturers and end-users of excipients. It is an association comprising four regional pharmaceutical excipient industry associations covering North America, Europe, China and Japan (which are known respectively as IPEC-Americas, IPEC Europe, IPEC-China and JPEC). IPEC’s objective is to contribute to the development and harmonization of international excipient standards, the introduction of useful new excipients to the marketplace and the development of best practice and guidance concerning excipients.

IPEC has three major stakeholder groups;

1. Excipient manufacturers and distributors, who are called suppliers

2. Pharmaceutical manufacturers, who are called users

3. Regulatory authorities who regulate medicines

This document offers best practice and guidance in the establishment of an excipient information package. The excipient supplier may be a manufacturer or a distributor (or both). The Guide highlights the factors to consider when preparing such a package.

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ACKNOWLEDGEMENTS

This guideline is the result of the hard work and substantial resources, of IPEC member companies. IPEC greatly appreciates the many hours the following individuals devoted to develop this guide and the generous support of their employers for providing the necessary time and resources.

IPEC-AMERICAS

* Alexa Smith, Colorcon

* Priscilla Zawislak, Hercules Incorporated

* Craig Scott, JRS Pharma LP

* Laura Horne, Mutchler, Inc.

* David B. Klug, sanofi-aventis

* Maria Guazzaroni Jacobs, Pfizer

* Londa Ritchey, Wyeth

* Chris Armstrong, Evonik

* Judy Emmert, Abbott

* Ann Van Meter, Dow

* Cindy Libonati, Purdue Pharma L.P.

IPEC EUROPE

* Iain Moore, Croda

* Kevin McGlue, Col orcon Limited

* Carl Mroz, Colorcon Limited

* Rebecca Roberts, Colorcon Limited

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INTRODUCTION

SCOPE AND PURPOSE

In order to use an excipient, users need to obtain a significant amount of data about the excipient manufacturer, distributor, where applicable, and the excipient itself. Many users have resorted to sending questionnaires and surveys to obtain this information using their own individual formats. Often these surveys and questionnaires address essentially the same quality and regulatory concerns. It is also difficult in some cases, due to the phrasing of specific questions, to interpret the intent of the question.

While excipient suppliers want to provide information to the user as quickly as possible, many excipient suppliers receive such a large volume of questionnaires and surveys from their customers that they are unable, due to resource constraints, to individually complete each customer’s specific form. Further, because these surveys and questionnaires vary to some degree in the specific questions asked, if a change in the information occurs, it is virtually impossible for the excipient supplier to determine which completed surveys and questionnaires are affected by the change. Significant time and resources are spent, both by the user and supplier, to send, complete, return, review and track these non-standardized questionnaires and surveys.

This guide was developed in order to address these issues. It defines the Standardized Excipient Information Package that comprises:

* Product Regulatory Datasheet

* Site Quality Overview

* Site And Supply Chain Security Overview

The primary goal of the template is to provide standards for the exchange of data between excipient suppliers and users that will simplify this process. By responding to surveys, questionnaires and other requests for information in this format, excipient suppliers can respond in a timely and efficient manner to all requests as well as ensure that consistent information is provided. Excipient users will be able to anticipate the type and format of the standard data that they receive from excipient suppliers. This will assist both users and suppliers in the task of information management. In the future, electronic transmission of this data for direct download may be possible. Additionally, this standardization will facilitate any necessary change notifications pertaining to previously supplied information further strengthening the excipient suppliers’ change notification program.

FORMAT OF THE EXCIPIENT INFORMATION PACKAGE DOCUMENTS

The Excipient Information Package (EIP) is set up much like a Material Safety Data Sheet (MSDS) with designated sections to include specified data. Each section covers specific topics. The minimum topics that should be covered in each section are defined, however, additional related information can also be provided at the discretion of the excipient supplier. If particular topics are not applicable to a particular excipient or site, it should be so indicated in the document. Where information is considered confidential, the document should reflect how the excipient user can obtain this information. For example, the document may state that the information may only be obtained under a confidentiality agreement.

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The presentation and format of the information is at the discretion of the supplier Short, bulleted formats are encouraged. Specific phrasing is not prescribed but suggested phrasing is provided in some sections and can be used if desired. Job titles should be used rather than names.

These documents should be version controlled by the excipient supplier. Suppliers should have a process in association with their management of change policy for updating EIP documents in a timely manner including updates to company and product information and EIP template revisions. The current version of the EIP template can be found on the IPEC website.

The documents do not require signatures, however they must be an official company document.

APPLICATION AND USAGE

The EIP documents are intended for individuals experienced and competent in the area of evaluating excipient suppliers and should not be viewed as a replacement for audits. While the documents are intended to form a complete package of information, each document within the EIP was designed to also be functional as a stand-alone document and therefore, some basic information may be common among the documents.

In order to provide additional guidance on specific topics, IPEC maintains a Regulatory Reference Guidance. The Regulatory Reference lists links to the specific regulatory references applicable in different regions to various sections in the EIP documents. These references can provide preparers of EIP documents detailed guidance on the information that needs to be addressed in various sections. IPEC’s Regulatory Reference Guidance is accessible through the IPEC-Americas website at the following address: www.ipecamericas.org.

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SECTION BY SECTION EVALUATION OF THE EXCIPIENT INFORMATION

DOCUMENTS

I. Product Regulatory Datasheet

The Product Regulatory Datasheet is designed as a means to assist in communicating to the user important physical, manufacturing and regulatory information specific to the excipient. This information is intended to facilitate the use of the excipient in drug products. Not every point is necessarily applicable to each excipient.

The following sections are expected to be included in the document unless otherwise specified.

Section 1 – General Product Information

This section provides identification information for the product .

Topics for this section:

* Product name/code

* Scope of document

* Other general product information (optional)

Section 2 – Manufacturing, Packaging, Release Site and Supplier Information This section provides general information about where the product is manufactured and other supply chain information. Include cross references to the Site Quality Overview and Site and Supply Chain Security Overview, where applicable.

Topics for this section:

* Sites of manufacturing, processing, packaging, product release and other related sites such as warehousing, terminals, contract labs, etc.

* Exclusive distribution channels (if applicable)

* GMP or GDP compliance statement, as applicable

* Multi purpose / dedicated equipment

Section 3 – Physico-chemical Information

This section provides general information about the chemistry and physical

characteristics of the product and its manufacture.

Topics for this section:

* CAS number

* Origin information (synthetic, animal, vegetable, mineral, product of biotechnology, product of fermentation, etc.)

* Synonyms (including INCI name if applicable) (Optional)

* Morphological form (Optional)

* Brief description of manufacture (blend, reaction, continuous / batch process etc.)

* Mixed excipient ingredient statement

* Country of origin for ingredients used in mixed excipients (optional)

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Section 4 - Regulatory Information

This section includes information related to the regulatory status of the excipient as well as addressing pertinent product specific topics of general regulatory concern. Topics for this section:

* Compendial compliance (for example, USP-NF, FCC, PhEur or BP, JP, JPE, JSFA) and other regulatory status (For example, 21 CFR, GRAS, other status as a food additive, European cosmetic directive compliance)

* Drug Master File (DMF) or EDQM Certificate of Suitability or other Master File availability

* BSE / TSE Information (both related to the product and the potential for cross-contamination). EDQM Certificate of Suitability information, if applicable

* Viral safety, if applicable

* Allergens / Hypersensitivities Information (both related to the product and the potential for cross-contamination) – Reference the Regulation or specific allergens evaluated.

* GMO Information

* Residual Solvents Information

* Metal catalyst and metal reagent residues

* Kosher / Halal status

* Irradiation treatment, if applicable

* Bioburden/pyrogens (Optional)

* Other concerns, as applicable, such as Proposition 65, aflatoxins or other toxins, preservatives, latex, silicones, status with respect to use in foods labelled as organic or as containing organic ingredients, etc. (Optional)

Section 5 - Miscellaneous Product Information

This section should be used by the supplier to provide any additional information that

may be pertinent to the product but is not covered elsewhere in this document or in

the other EIP documents.

Topics for this section:

* Explanation of the lot/batch numbering system

* Description of batch definition

* Expiration date and/or recommended re-evaluation interval

* Specific storage and shipping conditions which are required to assure excipient quality

* Common uses (Optional)

* Nutritional information (Optional)

* Packaging e.g. specification, size, types, new/recycled, bulk tankers, type of tamper evidence devices and labelling information (Optional)

Section 6 – Revisions

This section provides information related to version control for the document. The

document should have a date and a version number. This section should also describe

the changes made since the last revision.

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Section 7 - Contact Information

This section explains how the user should contact the supplier to get additional

information, if needed, regarding the topics provided in this document.

II. Site Quality Overview

The Site Quality Overview is a tool to assist in evaluating the manufacturing practices and quality systems of suppliers, as well as a reference to inform users of the systems in place to assure appropriate GMP requirements. The “Joint IPEC-PQG Good Manufacturing Practice Guide for Pharmaceutical Excipients 2006" was used as the basis to construct this document and should serve as the primary source for evaluating responses provided by the supplier. Users of this document should be familiar with the introduction, definitions, and general guidance that are contained within the IPEC-PQG GMP Guide, and should refer to the guide if further details are needed.

The Site Quality Overview is intended to communicate a summary of the Quality Systems and GMP used to manufacture the excipient(s). It may not necessarily include all of the details covered in an audit, nor are all of the points necessarily appropriate to every site.

The following sections are expected to be included in the document unless otherwise specified.

Section 1 - Site Overview

The purpose of this section is to describe the supplier’s organization and production

capabilities.

Topics for this section:

* Scope

? Site Name(s)

? Address(es)

? Excipients covered by this document (optional)

* Corporate ownership (if different from site identified in Scope)

* Customer audit policy (optional)

* Site Details

? General Site Information (e.g. size, history, number of employees, shift operations, site plan, union workforce (optional), etc)

? Site activities conducted (e.g. blending, packaging, testing, R&D)

? Primary applications of products produced at this site (pharmaceutical, food, cosmetic, etc)

? Facility production of antibiotics, steroids, or hormone products

? Organizational chart (including responsibility for product release)

? Use scope and control of sub-contractors, if applicable

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Section 2 - Compliance Evidence

This section should be used to describe any specific compliance information pertinent

to the facility being described.

Suggested examples of compliance information:

* ISO registration information e.g. 9001, 14001, OHSAS 18001, etc. (number, registrar, copies of certificates)

* GMP Inspections by Competent Authorities (Regulatory Agencies) including outcome

* General GMP statements

* Other certifications or external audit programs: IPEA, AIB, GMA-SAFE, BRC, etc.

Section 3 – IPEC-PQG GMP Compliance Details:

This section should be used to address how the supplier complies with each applicable element of the IPEC-PQG GMP Guide. Non-applicable elements should be noted as such. For more detail on the specific items that may be covered under each topic, please refer to the IPEC-PQG GMP Guide. Parenthetical references in the document template refer to sections in the IPEC-PQG GMP Guide. Additional reference information can be found in the IPEC-PQG GMP Audit Guideline for Pharmaceutical Excipients.

Section 4 - Miscellaneous Site Information

This section should be used by the supplier to provide any additional information that may be pertinent to the site but is not covered elsewhere in this document or in the other EIP documents. This section is optional and should be used as needed. Suggested topics for this section:

* Risk management plans such as HACCP

* Statistical Process Control / Process Analytical Technology (PAT)

Section 5 – Revisions

This section provides information related to version control for the document. The document should have a date and a version number. This section should also describe the changes made since the last revision.

Section 6 - Contact Information

This section explains how the user should contact the supplier to get additional

information, if needed, regarding the topics provided in this document.

III. Site And Supply Chain Security Overview

The Site And Supply Chain Security Overview is designed to provide users with information concerning the supplier's plans to ensure the protection of the product and the continuity of supply. It is intended to provide a high level overview of these plans while preserving confidential information.

The following sections are expected to be included in the document unless otherwise specified.

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Section 1 - Scope

The purpose of this section is to identify the manufacturing site and distribution

site(s) (where applicable) covered by this document.

Topics for this section:

* Scope

* Site Name(s)

* Address(es)

* Excipients covered by this document (optional)

* Corporate ownership (if different from site identified in Scope)

Section 2 - Supply Chain Security

The purpose of this section is to describe how the supplier assures the integrity of the excipient during storage and distribution and also complies with appropriate regulations to the user. Also covered should be any arrangements to comply with appropriate regulations concerning the transportation of the excipient. More details on these issues can be found in the IPEC Good Distribution Practices Guide 2006.

Topics for this section:

* Controls to assure the integrity and security of the product in transit from manufacturer to end user. The following are suggested areas that may be discussed where applicable:

? Evaluation of carriers

? Tamper evident packaging

? Environmental control (if appropriate)

? Qualification of distributors

? Qualification of forwarders/brokers

? Qualification of intermediate storage locations ? Repacking/relabelling activities

* Registrations with the FDA under the BioTerrorism Act, if applicable

* C-TPAT or AEO Participation, if applicable

* Approved distributors and how material pedigree/traceability is assured (where applicable) (Optional)

Section 3 - Security Information

The purpose of this section is to describe the elements of the supplier’s overall

security program.

Topics for this section:

* Scope of security plan including:

? Roles and Responsibilities, including title of person responsible

for implementing security

? Policies & Procedures

? Training

? Data and computer system protection

? Site access control (e.g. security fencing, visitor registration, employee badges, employee training, vehicular access, camera monitoring)

* Personnel security

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? Pre-employment background checks

? Background checks on temporary and contract personnel

? Training

? Termination of employees or contractors and preventing subsequent access to the site and computer systems

Section 4 - Safety & Environmental Information

The purpose of this section is to describe the supplier’s personnel safety and

environmental programs.

Topics for this section:

* Description of documented health and safety program

* Registrations to ISO 14001, OHSAS 18001 and/or Responsible Care etc.

* Description of documented emergency response plan

Section 5 - Miscellaneous Site Information

* Corporate social responsibility programs

* Business continuity plans

Section 6 – Revisions

Section 7 - Contact Information

This section explains how the user should contact the supplier to get additional

information, if needed, regarding the topics provided in this document

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EIP DOCUMENT TEMPLATES

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COMPANY LOGO/LETTERHEAD/OFFICIAL STATIONERY/COMPANY DOCUMENT

PRODUCT REGULATORY DATASHEET

Section 1 – General Product Information

Product name/code

Scope of document

Other general product information (optional)

Section 2 – Manufacturing, Packaging, Release Site and Supplier Information

Sites of manufacturing, processing, packaging, product release and other related sites such as warehousing, terminals, contract labs, etc.

Exclusive distribution channels (if applicable)

GMP or GDP compliance statement, as applicable

Multi purpose/dedicated equipment

Section 3 – Physico-chemical Information

CAS number

Origin information (synthetic, animal, vegetable, mineral, product of biotechnology, product of fermentation, etc.)

Synonyms (including INCI name if applicable) (Optional)

Morphological form (Optional)

Brief description of manufacture (blend, reaction, continuous / batch process etc.)

Mixed excipient ingredient statement

Country of origin for ingredients used in mixed excipients (optional)

Section 4 - Regulatory Information

Compendial compliance and other regulatory status

Drug Master File (DMF) or EDQM Certificate of Suitability or other Master File availability

BSE/TSE Information (both related to the product and the potential for cross-contamination)

EDQM Certificate of Suitability information, if applicable

Viral safety, if applicable

Allergens/Hypersensitivities Information (both related to the product and the potential for cross-contamination) – Reference the Regulation or specific allergens evaluated

GMO Information

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Residual Solvents Information

Metal catalyst and metal reagent residues

Kosher/Halal status

Irradiation treatment, if applicable

Bioburden/pyrogens (Optional)

Other concerns, as applicable (Optional)

Section 5 - Miscellaneous Product Information

Explanation of the lot/batch numbering system

Description of batch definition batch sizes

Expiration date and/or recommended re-evaluation interval

Storage and shipping conditions (where necessary to assure excipient quality)

Common uses (Optional)

Nutritional information (Optional)

Packaging e.g. specification, size, types, new/recycled, bulk tankers, type of tamper evidence devices and labelling information (Optional)

See User’s Guide for other optional information to include in this section

Section 6 Revision history

See User’s Guide for suggested information to include in this section

Section 7 Contact Information

See User’s Guide for suggested information to include in this section

Version 1 May 2009

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COMPANY LOGO/LETTERHEAD/OFFICIAL STATIONERY/COMPANY DOCUMENT

SITE QUALITY OVERVIEW

Section 1 Facility Overview

Scope

? Site Name(s)

? Address(es)

? Excipients covered by this document (optional)

Corporate ownership (if different from site identified in Scope)

Customer audit policy (optional)

Site Details

? General Site Information (e.g. size, history, number of employees, shift operations, site plan, union workforce (optional), etc)

? Site activities conducted (e.g. blending, packaging, testing, R&D)

? Primary applications of products produced at this site (pharmaceutical, food, cosmetic, etc)

? Facility production of antibiotics, steroids, or hormone products

? Organizational chart (including responsibility for product release)

? Use scope and control of sub-contractors, if applicable

Section 2 - Compliance Evidence

Include as applicable:

ISO registration number and registrar certificates

GMP Inspections by Competent Authorities (Regulatory Agencies) including outcome

General GMP statements

Other certifications or external audit programs

Section 3 – IPEC-PQG GMP Compliance Details:

Site compliance with the IPEC-PQG GMP Guide 2006 (if another level of GMP are used please specify). Parenthetical references are from the IPEC-PQG Good

Manufacturing Practices Guide for Pharmaceutical Excipients 2006.

Quality Management Systems-Excipient Quality Systems (4)

? General Requirements (4.1)

? Documentation Requirements (4.2)

? Change Control (4.3)

Management Responsibility (5)

? Management Commitment (5.1)

? Customer Focus (5.2)

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? Quality Policy (5.3)

? Planning (5.4)

? Responsibility, Authority and Communication (5.5) ? Management Review (5.6)

Resource Management (6)

? Provision of Resources (6.1)

? Human Resources (6.2)

? Infrastructure (Facilities and Equipment) (6.3)

? Work Environment (6.4)

Product Realization (7)

? Planning of Product Realization (7.1)

? Customer-Related Processes (7.2)

? Design and Development (7.3)

? Purchasing (7.4)

? Production and Service Provision (7.5)

? Control of Measuring and Monitoring Devices (7.6)

Measurement, Analysis and Improvement (8)

? General (8.1)

? Monitoring and Measurements(8.2)

? Control of Nonconforming Product (8.3)

? Analysis of Data (8.4)

? Improvement (8.5)

Section 4 Miscellaneous Site Information (Optional)

See User’s Guide for suggested information to include in this section

Section 5 Revision history

See User’s Guide for suggested information to include in this section

Section 6 Contact Information

See User’s Guide for suggested information to include in this section

Version 1 May 2009

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COMPANY LOGO/LETTERHEAD/OFFICIAL STATIONERY/COMPANY DOCUMENT

SITE AND SUPPLY CHAIN SECURITY OVERVIEW

Section 1 - Scope

Site Name(s)

Address(es)

Excipients covered by this document (optional)

Corporate ownership (if different from site identified in Scope)

Section 2 - Supply Chain Security

Controls to assure the integrity and security of the product in transit from manufacturer to end user. The following are suggested areas that may be discussed where applicable:

? Evaluation of carriers

? Tamper evident packaging

? Environmental control (if appropriate)

? Qualification of distributors

? Qualification of forwarders/brokers

? Qualification of intermediate storage locations

? Repacking/relabelling activities

Tamper evidence

Registrations with the FDA under the BioTerrorism Act, if applicable

C-TPAT or AEO Participation, if applicable

Approved distributors and how material pedigree is assured (where applicable) (Optional)

Section 3 - Security Information

Scope of security plan including:

? Roles and Responsibilities, including title of person responsible for implementing security

? Policies & Procedures

? Training

? Data and computer system protection

? Site access control (e.g. security fencing, visitor registration, employee badges, employee training, vehicular access, camera monitoring)

Personnel security

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? Pre-employment background checks

? Background checks on temporary and contract personnel

? Training

? Termination of employees or contractors and preventing subsequent access to the site

and computer systems

Section 4 - Safety & Environmental Information

Description of documented health and safety program

Registrations to ISO 14001, OHSAS 18001 and/or Responsible Care etc.

Description of documented emergency response plan

Section 5 - Miscellaneous Product Information

See User’s Guide for suggested information to include in this section

Section 6 Revision history

See User’s Guide for suggested information to include in this section

Section 7 Contact Information

See User’s Guide for suggested information to include in this section

Version 1 May 2009

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DEFINITIONS AND GLOSSARY

21 CFR

Title 21 of the United States Code of Federal Regulations Product Regulatory Datasheet – Section 4

AEO

Authorised Economic Operator – status applied to organisations in Europe which permits them to regulatory relief from customs inspections and documentary requirements. Akin to C-TPAT in that it also requires supply chain security measures to be implemented.

Site and Supply Chain Security Overview – Section 2

Aflatoxins

The aflatoxins are a group of structurally related toxic compounds produced by certain strains of the fungi Aspergillus flavus and A. parasiticus. Under favorable conditions of temperature and humidity, these fungi grow on certain foods and feeds, resulting in the production of aflatoxins. The most pronounced contamination has been encountered in tree nuts, peanuts, and other oilseeds, including corn and cottonseed. Aflatoxicosis is poisoning that results from ingestion of aflatoxins in contaminated food or feed. Product Regulatory Datasheet – Section 4

AIB

The American Institute of Baking

Site Quality Overview – Section 2

Allergens

A substance that causes an abnormal response by the immune

system to certain proteins found in the substance.

Product Regulatory Datasheet – Section 4

Animal Sourced

Contains starting materials of animal origin.

Product Regulatory Datasheet – Section 3

Active Pharmaceutical Ingredient (API)

Any substance, or mixture of substances, intended to be used in the manufacture of a drug product and that, when used in the production of a drug, becomes an active ingredient of the drug product. Such substances are intended to furnish pharmacological activity or other direct effect in the diagnosis, cure, mitigation, treatment, or prevention of disease or to affect the structure or any function of the body of man or animals.

Batch/Lot

A specific quantity of material produced in a process or series of processes so that it can be expected to be homogeneous. In the case of continuous processes, a batch may correspond to a defined fraction of the production. The batch size can be defined either by a fixed quantity or by the amount produced in a fixed time interval. Product Regulatory Datasheet – Section 5

Bioterrorism Act

The United States Public Health Security and Bioterrorism

Preparedness and Response Act of 2002

Site and Supply Chain Security Overview – Section 2

British Pharmacopoeia

Product Regulatory Datasheet – Section 4

BRC

British Retail Consortium

Site and Supply Chain Security Overview – Section 2

BSE

Bovine Spongiform Encephalopathy, a slowly progressive, degenerative, fatal disease affecting the central nervous system of

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adult cattle. The exact cause of BSE is not known but it is generally accepted by the scientific community that the likely cause is infectious forms of a type of protein, prions, normally found in animals cause BSE. In cattle with BSE, these abnormal prions initially occur in the small intestines and tonsils, and are found in central nervous tissues, such as the brain and spinal cord, and other tissues of infected animals experiencing later stages of the disease. There is a disease similar to BSE called Creutzfeldt-Jacob Disease (CJD) that is found in people. A variant form of CJD (vCJD) is believed to be caused by eating contaminated beef products from BSE-affected cattle.

Product Regulatory Datasheet – Section 4

CAS Number

Chemical Abstracts Service Registry Number. The CAS Registry is the largest substance identification system in existence. When a chemical substance, newly encountered in the literature, is processed by CAS, its molecular structure diagram, systematic chemical name, molecular formula, and other identifying information are added to the Registry and it is assigned a unique CAS Registry Number.

Product Regulatory Datasheet – Section 3

Certificate of Suitability to the European Pharmacopoeia (CEP)

Certification granted to individual manufacturers by the European Pharmacopoeia when an excipient or active ingredient is judged to be in conformity to a monograph or General Chapter 5.2.8 on "Minimising the risk of transmitting animal spongiform encephalopathy agents via medicinal products"

Product Regulatory Datasheet – Section 4

Country of Origin

Country of manufacture, meaning the last country in which a substantial transformation of the product occurred. A substantial transformation occurs if a new article with a different name, character, and use is created.

Product Regulatory Datasheet – Section 3

C-TPAT

Customs-Trade Partnership Against Terrorism is a joint government (US Customs)-business initiative to build cooperative relationships that strengthen overall supply chain and border security.

Site and Supply Chain Security Overview – Section 2

Drug Master File

(DMF)

A Drug Master File (DMF) is a submission to the Food and Drug Administration (FDA) that may be used to provide confidential detailed information about facilities, processes, or articles used in the manufacturing, processing, packaging, and storing of one or more human drugs.

Product Regulatory Datasheet – Section 4

EDQM

European Directorate for the Quality of Medicines

Product Regulatory Datasheet – Section 4

Excipient

Substances other than the API which have been appropriately evaluated for safety and are intentionally included in a drug delivery system.

Expected

Elements of the EIP documents that should be included and addressed in the EIP documents.

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Expiration Date

The date beyond which a product may no longer conform to

relevant specifications.

Product Regulatory Datasheet – Section 5

FCC

Food Chemicals Codex

Product Regulatory Datasheet – Section 4

GDP

Good Distribution Practice deals with the distribution of products,

including requirements for purchase, receiving, storage and export. GDP regulates the movement of products from the premises of the manufacturer to the end user, or to an intermediate point by means of various transport methods.

Product Regulatory Datasheet – Section 2

GMA - SAFE

The GMA (Grocery Manufacturers Association) - SAFE

assessment is a thorough description of a food production, handling or storage facility’s policies and practices, documented by a skilled auditing practitioner and communicated through a web based data management & reporting system that allows individual users of the assessment to determine if the audited facility will meet their own standards.

Site Quality Overview – Section 2

GMO

Genetically Modified Organism, meaning an organism, with the exception of human beings, in which the genetic material has been altered in a way that does not occur naturally by mating and/or natural recombination.

Product Regulatory Datasheet – Section 4

GMP

Good Manufacturing Practice. Requirements for the quality system under which drug products and their ingredients are manufactured. Current Good Manufacturing Practice (cGMP) is the applicable term in the United States. For the purposes of this guide, the terms GMP and cGMP are equivalent.

Product Regulatory Datasheet – Section 2

Site Quality Overview – Section 2

Site Quality Overview – Section 3

GRAS

"GRAS" is an acronym for the phrase Generally Recognized As Safe. Under sections 201(s) and 409 of the Federal Food, Drug, and Cosmetic Act (the Act), any substance that is intentionally added to food is a food additive, that is subject to premarket review and approval by FDA, unless the substance is generally recognized, among qualified experts, as having been adequately shown to be safe under the conditions of its intended use, or unless the use of the substance is otherwise excluded from the definition of a food additive.

Product Regulatory Datasheet – Section 4

HACCP

Hazard Analysis Critical Control Point

Site Quality Overview – Section 4

Halal

The term indicates that an item is permitted and fit for consumption

by Muslims.

Product Regulatory Datasheet – Section 4

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Hypersensitivity

A violent reaction by the immune system to a substance that is

normally considered harmless.

Product Regulatory Datasheet – Section 4

INCI Name

International Nomenclature of Cosmetic Ingredients as defined in the Cosmetic, Toiletry and Fragrance Association’s (CTFA) publication, the Cosmetic Ingredient Dictionary and Handbook. Product Regulatory Datasheet – Section 3

IPEA

International Pharmaceutical Excipients Auditing, Inc. Site Quality Overview – Section 2

ISO

International Organization for Standardization

Site Quality Overview – Section 2

ISO 14001

The International Organization for Standardization’s family of

standards on environmental management

Site and Supply Chain Security Overview – Section 4

OHSAS 18001

International occupational health and safety management system

specification.

Site and Supply Chain Security Overview – Section 4

Japanese Pharmacopoeia

Product Regulatory Datasheet – Section 4

JPE

Japanese Pharmaceutical Excipients

Product Regulatory Datasheet – Section 4

JSFA

Japanese Standards for Food Additives

Product Regulatory Datasheet – Section 4

Kosher

The term indicates that an item is fit for consumption according to

Jewish law.

Product Regulatory Datasheet – Section 4

Mineral Based

Contains starting materials of mineral origin.

Product Regulatory Datasheet – Section 3

MSDS

Material Safety Data Sheet

Mixed Excipient

A mixed excipient is defined as a simple physical mixture of two or more compendial or non-compendial excipients produced by means of a low- to medium-shear process where the individual components are mixed but remain as discrete chemical entities, i.e. the nature of the components is not chemically changed.

Product Regulatory Datasheet – Section 3

Nutritional

Information

The declaration of specific nutritional components such as total calories, calories from fat , total fat, saturated fat, cholesterol, sodium, total carbohydrate, dietary fiber, sugars, protein, vitamin A, vitamin C, calcium, iron.

Product Regulatory Datasheet – Section 5

Optional

Suggested topics that should be considered for inclusion in an EIP document.

Organic (organically grown)

Specific practices addressing livestock breeding, cultivation of crops, the level of processing and the production of food. Product Regulatory Datasheet – Section 4

Pedigree

Documentation that provides traceability of the material throughout

the supply chain.

Site and Supply Chain Security Overview – Section 2

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PhEur

European Pharmacopoeia

Product Regulatory Datasheet – Section 4

Process Analytical Technology (PAT)

A system for designing, analyzing, and controlling manufacturing through timely measurements (i.e., during processing) of critical quality and performance attributes of raw and in-process materials and processes with the goal of ensuring final product quality. Site Quality Overview – Section 4

Product of Biotechnology

A product derived from any technological application that uses biological systems, living organisms, or derivatives thereof, to make or modify products or processes for specific use.

Product Regulatory Datasheet – Section 3

Product of

Fermentation

A product derived from a process in which living cells harvest fuel molecules from a substance in order to generate ATP for their own energy needs. During that process, metabolic and bio-chemical alteration of the physico-chemical makeup of the fermented product occurs.

Product Regulatory Datasheet – Section 3

Proposition 65

The California Safe Drinking Water and Toxic Enforcement Act of 1986, better known by its original name of Proposition 65, is “right to know” legislation regarding substances known to the State of California to cause cancer or birth defects or other reproductive harm.

Product Regulatory Datasheet – Section 4

Recommended Re- evaluation Interval

The period beyond which the bulk pharmaceutical excipient should

not be used without further appropriate re-examination.

Product Regulatory Datasheet – Section 5

Residual Solvents

Residual Solvents, USP/NF General Chapter <467>

Residual solvents are defined as organic chemicals that are used or produced in the manufacture of active substances or Excipients, or in the preparation of medicinal products. ICH Q3C Impurities: Residual Solvents

Product Regulatory Datasheet – Section 4

Responsible Care

A voluntary program to achieve improvements in environmental, health and safety performance.

Adopted by most Chemical Industry associations worldwide. Site and Supply Chain Security Overview – Section 4

Site

A location where the excipient is manufactured. This may be within the facility but in a different operational area or at a remote facility including a contract manufacturer.

Product Regulatory Datasheet – Section 2

Site Quality Overview – Section 1

Site and Supply Chain Security Overview – Section 1

Statistical Process Control

Statistical process control involves using statistical techniques to

measure and analyze the variation in processes.

Site Quality Overview – Section 4

Supplier

A manufacturer or distributor who directly provides an excipient to the user.

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Synthetic

Products which are not derived from starting materials sourced from plants, animals or minerals and that are not products of fermentation. Note: Also see specific regional or national organic food legislation for additional information on the use of the term synthetic.

Product Regulatory Datasheet – Section 3

TSE

Transmissible Spongiform Encephalopathies. TSE's are rare forms of progressive neurodegenerative disorders that affect both humans and animals and are caused by similar uncharacterized agents that generally produce spongiform changes in the brain. Specific examples of TSE's include: scrapie, which affects sheep and goats; BSE, which affects cattle; transmissible mink encephalopathy; feline spongiform encephalopathy; chronic wasting disease (CWD) of mule deer, white-tailed deer, black-tailed deer, and elk; and in humans, kuru, Creutzfeldt-Jakob disease, Gerstmann-Straussler syndrome, fatal familial insomnia, and variant Creutzfeldt-Jakob disease (vCJD).

Product Regulatory Datasheet – Section 4

USP-NF

United States Pharmacopeia/National Formulary

Product Regulatory Datasheet – Section 4

Vegetable Sourced

Contains starting materials of plant origin. Product Regulatory Datasheet – Section 3

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Internal Auditing: Assurance &Advisory Services, Third Edition, continues to be the premier international textbook that supports the fast-growing global profession of internal auditing. Written through the collaboration of educators and practitioners, this textbook serves as a cornerstone for internal audit education. It covers key fundamentals of internal auditing that can be applied in an ever-changing business world, serving as a reference and training tool for internal audit practitionersThe textbook is organized in three sections: Fundamental Internal Audit Concepts, Conducting Internal Audit Engagements, and Case Studies. It is accompanied by a DVD-ROM containing case studies, The IIA’s Code of Ethics and International Standards for the Professional Practice of Internal Auditing, and the leading generalized audit software packages, ACL, IDEA, and CCH TeamMate. Supplemental teaching materials are available for instructors upon request.THE THIRD EDITION HAS BEEN UPDATED TO

LIMITED WARRANTY AND LIMITATION OF LIABILITY

Decko Products warrants this product free from material and/or manufacturing defects for one year from date of purchase (three years on select cast iron pumps). As the sole and exclusive remedy for a breach of this limited warranty, if the product is found by Decko Products to be defective, Decko Products, at its option, will refund the purchase price or replace the product with an equivalent product if it is returned to the place of purchase or returned postpaid to Decko Products, ATTN: Warranty Dept., 2301 Traffic St. NE, Minneapolis, MN 55413, with proof of purchase. Any disassembly, modification, or abuse of this product voids this limited warranty. This product is not designed for pumping flammable or corrosive fluids, and use of this product to pump such materials also voids this limited warranty

DECKO PRODUCTS DISCLAIMS ALL OTHER

EXPRESS OR IMPLIED WARRANTIES,

INCLUDING WARRANTIES OF

MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

IMPORTANT NOTICE: Some commercial and residential insurance policies extend coverage for damages incurred by product failure. In most cases, you will need to have possession of the product to support your claim. In the case where you need to retain possession of the product to support a damage claim you submit to your insurance company, Decko Products will exchange the unit or refund the original price once the claim is settled with the insurer.

2301 Traffic St. NE Minneapolis, MN 55413

1-800-495-9278

www.superiorpump.com

Superior Utility Manual Revised 10-08

If for any reason you have questions concerning your new Superior Pump, call us toll free at 1-800-495-9278, or contact us on the web at www.superiorpumpco.com

Carefully read and understand all of the Warnings and installation instructions in this manual. Failure to follow these instructions could lead to serious bodily injury and/or property damage. Retain these instructions for future reference.

This pump has been manufactured with your needs in mind. Properly installed in the right application, your new Superior Pump will give you years of carefree performance.

DANGER Water and electricity can be dangerous if certain precautions are not adhered

to. This pump is designed to operate perfectly safe in a water environment; however, improper use and installation can result in personal harm from electrical shock. Please pay attention to the following warnings.

WARNING

Never touch any electrical device, including this pump, when it is touching water, in water, or even in a moist environment. Always unplug (disconnect the electricity) when working on or installing the unit.

WARNING

RISK OF ELECTRICAL SHOCK. This pump is supplied with a grounding conductor and grounding-type attachment plug. To reduce the risk of electrical shock, be certain that it is connected only to a properly grounded, grounding-type receptacle.

WARNING Do not use the power cord or discharge hose to carry or handle the pump.

Doing so may cause damage to the power cord or discharge hose. Use the carrying handle supplied with the pump.

WARNING Always use a grounded outlet to attach the plug. A three-prong mating type

receptacle is needed for safe use. This should be in accordance with the National Electric Code and any additional codes or laws required by your local government.

NOTICE It is strongly recommended to use a ground fault interrupt device on any

electrical appliance, including this pump, when used in a wet or moist environment. This GFCI (ground fault circuit interrupter) should be listed by Underwriters Laboratories (UL). This is required by many local codes and enforcement agencies. It is strongly recommended by Superior Pump as it provides a much safer installation and will greatly reduce possible injury from electrical shock.

2 7

DANGER Do not use this unit to pump chemicals, flammable liquids, sewage or corrosive

liquids. You could injure yourself and the pump will fail. Pumping these types of liquids voids the warranty. Superior Pump and other pump companies manufacture pumps for these types of liquids. Make sure you purchase a pump designed for your specific needs. This pump will handle fluids with the same characteristics as water. If you have any questions call us at 1-800495-9278 or contact us on the web at www.superiorpumpco.com

WARNING

Your pump has thermal over-load protection built in. It is not recommended for pumping liquids over 120° F. The thermal overload protector will automatically shut down the pump in an overheat situation. It will then reset itself once the pump cools down. The pump will then work again. This overload is designed as a safety device and it will fail after repeated use. Normal operation is for fluids between 32° F & 120° F.

DO NOT RUN THE PUMP DRY. The pump depends on water for cooling and lubrication. Operating the pump without water may cause the motor to overheat or cause damage to parts of the pump. It may also shorten the life of your pump.

NOTICE

EXTENSION CORDS

For best performance, it is recommended to connect the power cord directly to the grounded GFCI outlet. If the use of an extension cord is necessary, always use a grounded waterproof type cord. Never use longer than a 25-ft. cord that is lighter than 14/3 gauge.

DANGER Keep all electrical connections away from wet and moist environments. Wet

connections can cause electrical shock resulting in personal injury.

USES

Your Superior Pump is designed to give you reliable performance and long life. It is designed to move water from one place to another. It is great for wet basements, roofs, ponds or waterfalls.

WARNING ALWAYS DISCONNECT THE POWER SOURCE BEFORE ATTEMPTING TO INSTALL, SERVICE OR PERFORM MAINTENANCE ON THE PUMP. FAILURE TO DO SO MAY RESULT IN FATAL ELECTRICAL SHOCK.

INSTALLATION/OPERATION

1. Place the pump on a hard surface in the water. Do not set the pump directly in mud or sand. This may cause the intake screen to clog or damage to your pump.

2. The water level must be at least 1” deep for the pump to operate.

3. Plug the power cord into a grounded 120-volt AC outlet. The pump will start to operate as soon as the cord is plugged in.

4. The pump will remove water down to the following levels:

Models

91025, 91026, 91250, 91255 - pumps down to 1/4” of the surface

91251, 91257, 91330, 91331, 91335, 91337 - pumps down to 1/2” of the surface

91501, 91505 - pumps down to 1” of the surface

5. The pump should be turned off once the water reaches these levels.

6. Do not let the pump run dry. The pump depends on water for cooling and lubrication. Operating the pump without water may cause the motor to overheat or cause damage to parts of the pump. It may also shorten the life of your pump.

Anything that will pass through the intake screen holes will pass through the pump without causing damage. The intake screen on the pump removes easily for cleaning. The units can also be back-flushed using the garden hose adapter.

NOTE: This pump has a built in anti-airlock device. Leakage is normal from this device.

6 3

PROBLEM

TROUBLESHOOTING

POSSIBLE CAUSES

HOW TO CORRECT

If the pump does not start or run

* Pump is not plugged in, switch or

breaker is off

* Plug pump in or turn on switch/breaker

* Check for blown fuses or tripped

circuit breakers or tripped GFCI outlets

* Replace fuse, reset breaker, reset GFCI outlet

* Motor thermal protector tripped

* Allow pump to cool. Pump will reset

If the pump runs but moves little or no water

* Clogged intake screen

* Clean or replace screen

* Clogged discharge hose/pipe

* Remove clog

* Frozen discharge hose/pipe

* Allow hose/pipe to thaw

* Pump is air locked

* Clean out airlock hole with a paper clip or pipe cleaner

* Low line voltage

* Check wire size and increase if necessary

* Worn, damaged or clogged pump

parts

* Inspect for wear, damage or clog

and clean or replace if necessary

* Discharge head exceeds pump capacity

* If pumping height is over 25’, the

pump will not move water. See performance chart

Power supply requirements 120V, 60 Hz

Motor Continuous Duty, Capacitor Start,

Thermally Protected

Liquid Temperature Range 32° F - 120° F (0° C - 49° C)

Circuit Requirements 15 amp

4 5

Safety Warnings

* Do not drop, tamper, disassemble or attempt to repair the unit by yourself.

* Do not immerse it in water or expose it to wet conditions.

* Do not expose it to fire or any heat source.

* Do not dispose the unit in your household waste.

* Before charging, please refer to the user’s manual of your specific device for manufacture’s required charging amperage and determine the appropriate charging cable for your device.

* Always insert the USB device in the correct direction. Failure to do so may result in damage to the USB device and this unit.

* Only use with products designed to be powered or charged via a USB socket.

* Do not use with a damaged USB charging cable as it can cause overheating and damage to your device.

While in use

* Unwind the cable to its full length.

* Never wrap the cable around the unit, or coil it together or leave it tangled. Doing so may result to product damage and related hazards.

* Do not charge the Powerbank and charge a digital device at the same time. This will shorten the Powerbank’s battery life.

For general information about this appliance and handy hints and tips, please visit www.knowhow.com/knowledgebank or call 0344 561 1234.

Visit Partmaster.co.uk today for the easiest way to buy electrical spares and accessories. With over 1 million spares and accessories available we can deliver direct to your door the very next day. Visit www.partmaster.co.uk or call 0344 800 3456 (UK customers only). Calls charged at National Rate.

The symbol on the product or its packaging indicates that this product must not be disposed of with your other household waste. Instead, it is your responsibility to dispose of your waste equipment by handing it over to a designated collection point for the recycling of waste electrical and electronic equipment. The separate collection and recycling of your waste equipment at the time of disposal will help conserve natural resources and ensure that it is recycled in a manner that protects human health and the environment. For more information about where you can drop off your waste for recycling, please contact your local authority, or where you purchased your product.

Notes for battery disposal

The batteries used with this product contain chemicals that are harmful to the environment.

To preserve our environment, dispose of used batteries according to your local laws or regulations. Do not dispose of batteries with normal household waste.

For more information, please contact the local authority or your retailer where you purchased the product.

DSG Retail Ltd. (co. no. 504877)

1 Portal Way, London, W3 6RS, UK

IB-G25PBxx16-161118V3

Product Overview

Indicators

Micro USB input socket

Charging the Powerbank

When using the unit for the first time, charge it fully first. While charging, the indicators will flash. When fully charged, the indicator will light up.

Charging Your Digital Devices

When the digital device is fully charged, the indicators will turn off.

Specifications

Battery type

Lithium ion Polymer

Capacity

2500mAh

Input

DC5V / 800mA

Output

DC5V / 800mA

Dimension (H x W x D)

7.7 x 59 x 107.5 mm

Charging time

About 3-4 hours

Features and specifications are subject to change without prior notice.

FUSION(1)(2)

Engine

Axle

Configuration

Maximum Loaded Trailer Weight (lbs.)

Automatic Transmission

1.51. EcoBoost® I4

FWD

1,000

2.01. EcoBoost® I4

FWD/AWD

2,000

2.51. I4

FWD

1,000

2.71. EcoBoost® V6

AWD

1,000(3)

(1) Fusion does not offer factory-installed towing equipment for this application; only available as aftermarket accessory.

(2) Fusion Hybrid and Fusion Energi are not rated to tow a trailer.

(3) Sport series only.

Note: Fusion calculated with SAE J2807 method.

Frontal Area Considerations

Frontal Area is the total area in square feet that a moving vehicle and trailer exposes to air resistance. The chart shows the maximum trailer frontal area that must be considered for a vehicle/trailer combination. Exceeding these limitations may significantly reduce the performance of your towing vehicle.

Brakes

Many states require a separate braking system on trailers with a loaded weight of more than 1,500 pounds. For your safety, Ford Motor Company recommends that a separate functional brake system be used on any towed vehicle, including those dolly-towed or towbar-towed. There are several basic types of brake systems designed to activate trailer brakes:

1. Electronically Controlled Brakes usually provide automatic and manual control of trailer brakes. They require that the tow vehicle be equipped with a controlling device and additional wiring for electrical power. These brakes typically have a control box installed within reach of the driver and can be applied manually or automatically.

2. Electric-Over-Hydraulic (EOH) Trailer Brakes are operated by an electrically powered pump that pressurizes a hydraulic fluid reservoir built into the trailer’s brake system. Many of the available EOH trailer brake models are compatible with the Ford factory installed, dash-integrated Trailer Brake Controller (TBC).

3. Surge Brakes are independent hydraulic brakes activated by a master cylinder at the junction of the hitch and trailer tongue. They are not controlled by the hydraulic fluid in the tow vehicle’s brake system, and the tow vehicle’s hydraulic system should never be connected directly to the trailer’s hydraulic system.

Be sure your trailer brakes conform to all applicable state regulations. See Towing Safely for All Vehicles on the next page for additional braking information.

Trailer Lamps

Make sure the trailer is equipped with lights that conform to all applicable government regulations. The trailer lighting system should not be connected directly to the lighting system of the vehicle. See a local recreational vehicle dealer or rental trailer agency for correct wiring and relays for the trailer and heavy-duty flashers.

Safety Chains

– Always use safety chains when towing. Safety chains are used to retain connection between the towing and towed vehicle in the event of separation of the trailer coupling or ball

– Cross chains under the trailer tongue to prevent the tongue from contacting the ground if a separation occurs. Allow only enough slack to permit full turning – be sure they do not drag on the pavement

– When using a frame-mounted trailer hitch, attach the safety chains to the frame-mounted hitch using the recommendations supplied by the hitch manufacturer

– See your vehicle’s Owner’s Manual for safety chain attachment information

– For rental trailers, follow rental agency instructions for hookup of safety chains

Trailer Wiring Harness

– Some vehicles equipped with a factory-installed Trailer Tow

Package include a trailer wiring harness and a wiring kit

– This kit includes one or more jumper harnesses (to connect to your

trailer wiring connector) and installation instructions

TOWING SAFELY

FOR ALL VEHICLES.

Towing a trailer is demanding on your vehicle, your trailer and your personal driving skills. Follow some basic rules that will help you tow safely and have a lot more fun.

Weight Distribution

* For optimum handling and braking, the load must be properly distributed

* Keep center of gravity low for best handling

* Approximately 60% of the allowable cargo weight should be in the front half of the trailer and 40% in the rear (within limits of tongue load or king pin weight)

* Load should be balanced from side-to-side to optimize handling and tire wear

* Load must be firmly secured to prevent shifting during cornering or braking, which could result in a sudden loss of control

Before Starting

* Before setting out on a trip, practice turning, stopping and backing up your trailer in an area away from heavy traffic

* Know clearance required for trailer roof

* Check equipment (make a checklist)

Backing Up

* Back up slowly, with someone spotting near the rear of the trailer to guide you

* Place one hand at bottom of steering wheel and move it in the direction you want the trailer to go

* Make small steering inputs – slight movement of steering wheel results in much greater movement in rear of trailer

Turning

When turning, be sure to swing wide enough to

allow trailer to avoid curbs and other obstructions.

Braking

* Allow considerably more distance for stopping with trailer attached

* Remember, the braking system of the tow vehicle is rated for operation at the GVWR, not GCWR

* If your tow vehicle is a F-150, F-Series Super Duty®, Transit or Expedition and your trailer has electric brakes, the optional Integrated Trailer Brake Controller (TBC) assists in smooth and effective trailer braking by powering the trailer’s electric or electric-over-hydraulic brakes with proportional output based on the towing vehicle’s brake pressure

* If your trailer starts to sway, apply brake pedal gradually. The sliding lever on the TBC should be used only for manual activation of trailer brakes when adjusting the gain. Misuse, such as application during trailer sway, could cause instability of trailer and/or tow vehicle

Towing On Hills

* Downshift the transmission to assist braking on steep downgrades and to increase power (reduce lugging) when climbing hills

* With TorqShift® transmission, select tow/haul mode to automatically eliminate unwanted gear search when going uphill and help control vehicle speed when going downhill

Parking With A Trailer

Whenever possible, vehicles with trailers should not be parked on a grade. However, if it is necessary, place wheel chocks under the trailer’s wheels, following the instructions below.

* Apply the foot service brakes and hold

* Have another person place the wheel chocks under the trailer wheels on the downgrade side

* Once the chocks are in place, release brake pedal, making sure the chocks will hold the vehicle and trailer

* Apply the parking brake

* Shift automatic transmission into park, or manual transmission into reverse

* With 4-wheel drive, make sure the transfer case is not in neutral (if applicable)

Starting Out Parked On A Grade

* Apply the foot service brake and hold

* Start the engine with transmission in park (automatic) or neutral (manual)

* Shift the transmission into gear and release the parking brake

* Release the brake pedal and move the vehicle uphill to free the chocks

* Apply the brake pedal while another person retrieves the chocks

Acceleration And Passing

The added weight of the trailer can dramatically decrease the acceleration of the towing vehicle – exercise caution.

* When passing a slower vehicle, be sure to allow extra distance. Remember, the added length of the trailer must clear the other vehicle before you can pull back in

* Signal and make your pass on level terrain with plenty of clearance

* If necessary, downshift for improved acceleration

Driving With An Automatic Overdrive Transmission

With certain automatic overdrive transmissions, towing – especially in hilly areas – may cause excessive shifting between overdrive and the next lower gear.

* To eliminate this condition and achieve steadier performance, overdrive can be locked out (see vehicle Owner’s Manual)

* If excessive shifting does not occur, use overdrive to optimize fuel economy

* Overdrive may also be locked out to obtain engine braking on downgrades

* When available, select tow/haul mode to automatically eliminate unwanted gear search and help control vehicle speed when going downhill

Driving With Cruise Control

Turn off the cruise control with heavy loads or

in hilly terrain. The cruise control may turn off

automatically when you are towing on long, steep

grades.

Tire Pressure

* Underinflated tires get hot and may fail, leading to possible loss of vehicle control

* Overinflated tires may wear unevenly

* Tires should be checked often for conformance to recommended cold inflation pressures

Spare Tire Use

A conventional, identical full-size spare tire is required for trailer towing (mini, compact and dissimilar full-size spare tires should not be used; always replace the spare tire with the road tire as soon as possible).

On The Road

After about 50 miles, stop in a protected location

and double-check:

* Trailer hitch attachment

* Lights and electrical connections

* Trailer wheel lug nuts for tightness

* Engine oil – check regularly throughout trip

High Altitude Operation

Gasoline engines lose power by 3-4% per 1,000 ft. elevation. To maintain performance, reduce GVWs and GCWs by 2% per 1,000 ft. elevation starting at the 1,000 ft. elevation point.

Powertrain/Frontal Area

Considerations

The charts in this Guide show the minimum engine

size needed to move the GCW of tow vehicle

and trailer.

* Under certain conditions, however, (e.g., when the trailer has a large frontal area that adds substantial air drag or when trailering in hilly or mountainous terrain) it is wise to choose a larger engine

* Selecting a trailer with a low-drag, rounded front design will help optimize performance and fuel economy

Note: For additional trailering information pertaining to your vehicle, refer to the vehicle Owner’s Manual.

For the latest RV/Towing information, check out www.fleet.ford.com/ towing-guides or for Ford Dealers go to esourcebook.dealerconnection.com.

Operating Instructions for The Competitive Strategy Game

Version 3.50

by Severin Borenstein

(slightly) Updated January 2011

I have tried to make the operation of the game user friendly, but it is still a long way from the polish of a professionally written and distributed program. If you stick with the instructions, however, it should operate without a hitch.

Before contacting me with problems, PLEASE check the FAQ that I have set up at http://faculty.haas.berkeley.edu/borenste/CSGsupport.html . There is no support for the software other than me and I don’t have time to respond to questions very promptly.

1. REQUIREMENTS: The CSG runs in all versions of Windows up through Windows 7. There is no version of the software for the Mac OS. The game is written to run inside a DOS window (yes, it is from an earlier era). It can be run from Windows (e.g., by clicking on the executable file in Explorer), but that has the disadvantage of closing the window immediately after the program runs. If there is an error in the execution, the window closes before you can see what the error is. This can be avoided by opening a DOS window (from the start button, “All Programs” ? > “Accesories” ? > “Command Prompt”), navigating to the relevant directory (e.g., “cd c:\CSGfiles”) and typing “csg350” at the command prompt.

For organizational purposes, it is best to give the game its own directory.

The biggest problem you are likely to face is the risk that you will accidentally lose or overwrite files. Since you have the only records of the game, that could be a disaster. For that reason, I make a lot of use of the DOS attrib command which can change files to “read only” so you cannot overwrite or erase them. The command “attrib +r <filename>” changes the file to read only and “attrib -r <filename>” changes it back. Each time the game is run, it concludes by asking you if you would like to change the files associated with the game to read only. I also recommend immediately copying all new files to a memory stick or another computer each time you run the game.

2. HOW THE GAME WORKS: The game is a simulation of the strategic interaction between eight companies that compete with one another in any or all of four different markets. Each market differs in the size and growth rate of demand, the capital intensity of production, the relative importance of entry, capacity and marginal production costs, the cost of and ability to inventory the product, and the demand substitutability of brands in the market. The markets also differ in the potential for competition or collusion, due to cost and product differentiation among firms, and the size of the market relative to the efficient scale of production. Within any one market, firms differ in their entry, capacity, and marginal costs.

Table 1: Operating Costs for Company X

Market

Entry Cost

10,000

20,000

100,000

3,000

Capacity Cost Per Unit

200

600

Marginal Cost

Each team of students controls one firm in the game. In doing so, they decide which market or markets to enter and when, how much investment to make in production facilities for each market and when to make that investment, when to exit a market, what quantities to produce and what prices to charge.

The game is divided into periods. Firm strategies for each period must be submitted before the game is run for each period. The game operator then enters the strategy and runs the game. The output from the period is then distributed to the players. The interaction with students – collecting strategies and distributing results – is most easily done through the CSG website, http://csg.haas.berkeley.edu . Running the game itself cannot be done on the website. That is done on your personal computer, which is where the software resides and all of the game output files are created.

An important aspect of the competitive strategy game is the role of information. Some data are public information, such as all firms’ prices and production capacities, the degree of substitutability across brands within each market, and some basic information about demand. Other variables are not publicly known, but noisy signals are available. For instance, each firm knows its own sales in each market, but the total sales in each market is known publicly only with a degree of error. Similarly, no firm knows the production costs of its competitors with certainty, but it does have an idea of the range of possible costs of other firms.

(2.1) PRODUCTION AND COSTS: In order to produce goods and sell them in a market, a company must (1) enter the market, (2) build production capacity for that market, and (3) produce goods. Each step in the process is costly. Costs for each step in each market differ across firms. Each firm’s company profile, which contains private information, includes a table, similar to table 1 that indicates each cost the company would have in each market. These costs do not change over the course of the game.

Market Entry Costs: In order to enter each market a firm must pay a one-time entry fee or setup cost. This cost is sunk once paid; it cannot be refunded or salvaged. It is assessed automatically when the firm builds its first unit of capacity in the market. (The entry fee is assessed again if a firm reenters a market in which it has retained no production capacity.) A firm can enter no more than one market each period. The operator can change this to

allow entry in to multiple markets simultaneously.

From the market profiles (see Attachment A for an example), which are public information, the teams learn the range of possible entry costs that firms might have for each market. For instance, the market profile for market A might indicate that the entry costs for this market are drawn from a distribution with a mean of $8,000 and a standard deviation of $2,000. (All random variables in the game are normally distributed.)

Costs Of Capacity: A firm’s production cost in each market is determined in part by its capacity in that market. (Each of the four markets involve completely different goods, so there is no way to use capacity in one market for production is another market.) Before a company can produce from capacity, it must take one period to build the capacity. If, for instance, a firm decided after period 2 that it wanted more production capacity in market D, it would announce a capacity increase as part of its strategy for period 3. It could not actually produce from that capacity, however, until period 4. Capacity changes become public information during the period in which they are announced, before they can be used for production. The decision to enter a market and the announcement of building capacity in that market occur simultaneously.

In the company profile, each team learns its firm-specific cost of building capacity in each market. There are no scale economies in building capacity; building 10 units of capacity costs exactly 10 times as much as building one unit of capacity. As with entry costs, the market profiles indicate the distribution of capacity costs for each market from which each firm’s individual capacity cost is drawn. Capacity can be increased at any time in the game.

A unit of capacity lasts until one of three things occurs: (1) the capacity exhausts its useful life (shown in the market profile), (2) the firm decides to eliminate units of capacity before they have exhausted their useful lives, or (3) the game ends. Unlike the entry costs, capacity costs are partially recoverable. In the period after a unit of capacity is installed, it declines in value by a certain percentage of its building costs, which is shown in the market profile. After that, the value drops by a (generally smaller) constant percentage each period. This percentage (of the contemporaneous value not of the original building cost) is also shown in the market profile. Shutting down capacity for its depreciated value can be done in increments as small as one unit, so for instance a team could reduce its capacity in an industry from 50 to 49 and receive the depreciated value of the unit. (Consistent with the timing of building and using capacity, a company that is liquidating capacity can produce from that capacity during the same period that it is liquidated. The liquidation occurs after production in that period.)

If a unit of capacity is used until it exhausts its useful life, then the capacity is automatically removed from the firm and the firm receives the scrap value of exhausted capacity (shown in the market profile). If a firm requests a reduction in capacity, the game will default to eliminating the youngest capacity (with the highest depreciated value) first, but this can

be overridden, as discussed below in the section on strategy submission. Note that expired capacity is eliminated before requests for capacity reduction are followed, so a team should not request a capacity reduction greater than the amount of capacity it holds in a market that is not expiring that period. If you do not want the complication of capacity expiring during the game, just set the capacity lives to be any two-digit number greater than the number of periods that will be played. If you do set the parameters so that capacity will expire during the game, then it is important for students to know the age profile of their capacity. This is included in the company updates unless you change a switch discussed below.

At the time that the game ends (see section 6, “Ending the Game”), all remaining capacity is automatically cashed in for its depreciated value.

Marginal Costs: Once a team has installed capacity for a market, it can produce and sell units at some marginal cost. If production is less than or equal to available capacity, then marginal cost of each unit is the marginal cost given in the company profile. The market profiles show the distribution of marginal production costs for each market from which each firm’s individual marginal cost is drawn.

Production can also exceed available capacity, but the marginal cost of producing units beyond capacity increases as production increases beyond capacity. The increase in marginal cost depends on the slope parameter s which determine the increase for a given ratio of output to capacity. So, the firm’s marginal cost function if it has available capacity k and marginal cost up to capacity of m is

MC(q) =

m, if q ? k;

m · (1 + s(?? ? 1)), if q > k.

The increase of marginal cost for production beyond capacity is common for all firms in a market and is shown in the market profile.

For instance, assume in a given market that a firm has 100 units of available capacity in market A and its company profile indicates a marginal cost of 20. Assume also that the market profile for A indicates that the slope parameter for MC is 0.5 for quantity beyond capacity. Every unit up to 100 would then cost the company 20 to produce. Unit 101 would be 1% above capacity and would therefore cost 0.5% more than the basic MC or 20.10. Unit 102 would be 2% above capacity and would therefore cost 1.0% more than the basic MC: $20.20. Producing 102 units would thus involve variable costs of 100·20+1·20.10 + 1 · 20.20 = 2040.30f. (Only available capacity is considered in determining costs. As explained above, capacity is not available until the period after it is produced. Note that producing in a market without capacity would involve exceeding capacity by an infinite amount and would therefore be infinitely costly.)

(2.2) PRODUCTION, SALES, AND INVENTORY: In the standard configuration of the game, a firm’s strategy each period will include its decision on quantity to produce and

price to charge. If there is sufficient demand, a firm may sell all of its production in that period plus any stock it has inventoried going in to the period. If the firm sells less than it produces, due to insufficient demand or a strategic choice, then the excess may be stored for future periods. The cost of storing one unit for one period is common to all firms in a market and is shown in the market profile. This standard configuration can be changed in two ways prior to the beginning of the game. One switch allows the game operator to make the good in any market perishable, so that it cannot be stored from one period to the next. In that case, a firm still produces in advance, but any product it does not sell in that market at its announced price goes to waste. Another switch makes the market produce-to-order. In this case, the firm does not set production in advance; it sets only its price and the maximum amount that it is willing to sell at that price.

Besides price, production quantity, and any adjustments to capacity, a firm’s strategy in each period may include a maximum allowed units to be sold. If no maximum is included in the standard-configuration market, then the maximum is the quantity produced plus the inventory quantity going in to the period. That is, the default is to sell all production and inventory if there is sufficient demand at the announced price. For instance, assume that in the first period a firm is in a given market chooses to produce 100 units. When demand is revealed, assume that it sells only 96 units at the price it has announced. It then carries 4 units into the following period, paying a cost of 4 times the per-unit storage cost. Assume that in the following period, the firm decides to produce 90 units. It may then sell up to 94 units, because it has four units in inventory. (Units do not deteriorate in inventory.) If it sells less than 94 units, then is will carry the difference into the following period as inventory. The firm may choose to restrict sales to less than 94 units, by setting a maximum sales of, say, 87 units. In that case, if demand is greater than or equal to 87, it will still sell 87 units and carry the 7 excess units into the following period. If demand is less than 87, the firm will carry 94 minus actual quantity demanded into the following period.

If the good is perishable, then the default maximum is to sell up to all production at the announced price. If the market is configured as produce-to-order, then the default maximum sales is the capacity of the firm, which is almost never optimal if the slope parameter for MC at outputs above capacity is less than infinite.

(2.3) COST OF FINANCING: Each firm begins the game with some amount of money in a bank account, currently set to $1,000,000, but this can be changed by the operator. All financing of the business comes from this account, but the balance can be negative or positive. The firm earns 2% interest per period on positive balances and pays 5% interest per period on negative balances. Both figures can be adjusted by the game operator. In addition, the interest rate on debt can escalate with the quantity borrowed, with as many as five steps in the function. See (4.4) below. Since there is no inflation in the game, these are real as well as nominal interest rates. Money spent is withdrawn from the account and revenues earned are deposited to the account at the end of each period.

(2.4) MARKET DEMANDS: As in the real world, firms do not know the demand function in any market. At the beginning of the game, they are given a bit of information in the market profiles: the quantities that would have been sold in period 1 at different prices and with different numbers of firms. At any point in time, the quantity sold will depend on the prices charged by each firm and – because consumers have heterogeneous tastes – the number of brands in the market. (Each firm may have at most one brand in each market.)

The sensitivity of total quantity sold to the number of brands in the market – holding price constant – will depend on the degree of heterogeneity among brands, i.e., the extent to which consumers consider different brands good substitutes. If consumers think that different brands are nearly identical, then adding brands to a market will have almost no direct effect on total quantity. If consumers think that different brands have very different attributes, then adding brands to a market will expand the size of the market to a greater extent. As the number of brands increases, the additional market-expanding effect of an additional brand in a market will decline. These effects are demonstrated in the first table of the market profile (attachment A).

Qualitative evaluations of the degree of brand substitutability in each market are given in the market profiles. This factor is independent of which firms introduce brands and cannot be affected by a firm’s strategic choices. Some quantitative information on brand substitution is given in the second table of the market profile.

The brands in a market are symmetrically differentiated. No brand has a perceived or actual overall quality advantage over others. If all brands in a market were to charge the same price, then all brands would be expected to get approximately equal market shares (provided each had sufficient production plus inventory to meet that demand). This would be true regardless of market shares in previous periods.

The actual structure of the differentiation is a variation of the logit demand model (described, for instance, by Besanko, Perry, and Spady, “The Logit Model of Monopolistic Competition – Brand Diversity,” Journal of Industrial Economics, June, 1990). The population of consumers in a market is determined by some starting population number multiplied by the market growth rate each period. Each consumer is assigned a base reservation price for the good, drawn from a normal distribution with mean zero (so about half of the population has negative reservation prices and no possibility of purchase. This is just a normalization factor.) This distribution implies that the density of consumers with a given (positive) reservation price declines monotonically in reservation price.

Every consumer (with positive base reservation price) is then assigned a brand-specific “offset” for every brand in the market, which is added to her base reservation price to determine the consumer’s reservation price for that brand. The offset is drawn from a normal distribution with mean zero and standard deviation equal to some proportion x of the specific consumer’s base reservation price for the good. This parameter x determines

the degree of product differentiation in the market. If, for instance, x is small, then a consumer’s reservation price is likely to be nearly equal for all brands —low product differentiation.

The consumer then purchases the one unit of the brand that gives her the highest positive net consumer surplus, which is equal to her base reservation price plus her brand-specific offset for the brand minus the price of the brand. If no brand gives her positive net consumer surplus, then she buys none.

This procedure is carried out for every consumer in every market. Note that since the reservation prices and brand-specific offsets are drawn from a random distribution, there is randomness in the sales made at a given price (and number of firms). Thus, in a particular instance a lower price (holding number of firms constant) could be associated with lower sales or a higher number of firms (holding price constant) could be associated with lower sales, though such outcomes will not occur on average. Also note that there is no customer loyalty or tendency to retain market share. Each period, reservation prices of every consumer for every brand in every market are redrawn. I may change this in future versions.

Total demand in a market changes over time. Each period the number of possible consumers in a market changes by some proportion, called the market growth rate. The market growth rate follows a random walk. The market profiles give the growth rate observed in period 1. In each market, the growth rate changes from the previous period by a random amount, but the average change in the growth rate is zero. Thus, if the growth rate was 7% last period, it will be 7% this period plus or minus the random change. Besides the period 1 growth rate, the market profiles also gives information on the amount by which the growth rate could change each period. Once the market growth rate changes from its original level, there is no tendency for it to return to that level.

After the initial market profiles, the only additional information firms receive about the size of each market is from observing prices and quantities sold in the market. The market update (see Attachment B for an example) distributed each period will give the production capacity of each firm in each market and the price charged by each firm in each market. It will also give an approximate market quantity sold during the previous period. All information in the market update is public.

(2.5) STRATEGIES AND MARKET OUTCOMES: Each period, every firm submits a strategy, which consists of (1) the price it will charge in each market in which it has production capacity, (2) the quantity it will produce in each market (if the market is not produce-to-order), (3) a maximum allowed level of sales in each market (less than or equal to production in the period plus inventory from the previous period in markets that are not produce-to-order), and (4) any changes in production capacity it will make. In addition, a strategy may include a public statement, which will be reported in the market update.

Once all strategies are received, the markets operate for that period. In each market, every firm sells to any consumer that wishes to buy its brand, up to the point that the firm’s sales are equal to its maximum allowed. If demand for a brand exceeds the maximum allowed sales for that brand, then the maximum allowed is sold and the output is distributed randomly among consumer trying to purchase from that firm. Consumers who do not obtain the brand they want due to this rationing may purchase another brand, if another brand offers them positive consumer surplus, or may not buy in the market.

After the market operates in a period, the program produces two sets of information. The first is the market update sheet. It contains the prices charged by each company in each market, the changes to capacity of each company in each market, approximate total sales in each market. It also contains any public statements made by each company. The second sheet is the company update (see Attachment C for an example), which contains private information on the quantity that the firm sold in each market that period as well as summary information on the costs, revenues, and financial status.

(2.6) GAME ENDING: To deal with the end game problem, I usually tell the class that the game will end randomly on one of the last three possible periods in the term. Each of these three periods is equally likely to be the last one of the game. This is obviously an imperfect solution, and you might think of the “end game problem” as an educational experience, rather than a problem.

3. GETTING THE GAME SET UP:

(3.1) You should choose a two-letter file extension for all files associated with your game. I will use ZZ in this document, but all references to ZZ below should be replaced with your two-letter file extension. The distinct extension is necessary to avoid confusion between files if you are running more than one game at once, and to avoid confusion between the original files that come with the game and those that you create.

Before you begin setting up the files for the game, you must decide whether you want output of the game to be produced as ascii files for printing on an HP-compatible printer, as TEX files (Plain TEX, not LaTEX), as ascii files for distribution by email, or as files for distribution through the CSG web page (see section (3.3)). Using the CSG web page is by far the most common choice and is strongly recommended. I don’t really support the other options, but have left them in for those who are used to using them. (The TEX output is more attractive than HP-compatible ascii files, but you must have TEX to use it. The email output looks like the HP-compatible ascii output, but it has no HP printer commands, and it outputs a separate file for each company that includes the company’s (private information) update and the (public information) market update.)

You also have to edit the header file to include the information that will go at the top of all output documents. If you want to use the CSG web page, then use an ascii editor to make changes to HEADERW.EXP. If you want output for an HP-compatible printer, then

use an ascii editor to make changes to HEADERH.EXP. If you will want TEX output, then use an ascii editor to make changes to HEADERT.EXP. If you will want output for email distribution, then use an ascii editor to make changes to HEADERE.EXP. (In any case, the second line of the file allows you to turn off the printing of the age profile of capacity in the company updates if, for instance, you think this is more information than the students can handle or need for you implementation of the CSG.) You should edit the next few lines after the first two lines of the file to set up the header information on the output files. Finally, you must then save the header file you have been editing as HEADER.ZZ (where ZZ is replaced by the two-letter name of your game, and note that the ”W” just before the extension is dropped) and I recommend changing the file attribute to read only: “attrib +r HEADER.ZZ” at the DOS prompt.1

(3.2) Before you can run the program, you also have to copy the file COMPNAME.EXP to COMPNAME.ZZ. Then you have to edit the file, using an ascii editor, replacing each line with the three-character name of a firm in your game (if you are using the web page, all names must contain only letters and numbers). These are the company names that will be used in all of the handouts and their order determines the number of each firm. If you are running a game with fewer than eight teams, you should just name the additional teams something that indicates they are not functioning (NUL, 000, etc. Each team MUST have a different name, e.g., you cannot call two non-functioning teams “NUL”. ). Then, each period the null teams should just submit a strategy of no capacity change, no production, and zero prices. Finally, you should change COMPNAME.ZZ file attribute to read-only so you don’t accidentally overwrite it: “attrib +r COMPNAME.ZZ” at the DOS prompt.

(3.3) The CSG Web Page. One of the options for administering the CSG is to use the CSG web page. The web page is http://csg.haas.berkeley.edu . You cannot run the CSG on the web page. The web page is used only for strategy submissions and output distribution. If you use it, you still need to obtain the CSG software and run the CSG on your own computer. The web page greatly reduces the administrative hassles with strategy submissions and with distributing output from the CSG. Instructions for using the web page can be found by going to it and clicking on “Instructors interested in creating a new game.”

(3.4) The CSG now ships with two sets of default parameters, which are described in the next section. For either version, there are sample instructions to students, STRAGAME-Advanced.do c and STRAGAME-Basic.do c (also .tex files). You will have to edit one of these files to match your course plan (or make up your own handout). The attachment tables for these handouts have been constructed in TEX so I distribute PDF versions STRAGAME-Advanced-tables.pdf and STRAGAME-Basic-tables.pdf.

1 NOTE: Many ascii editors add ”.txt” to the end of the filename as the default. The program won’t recognize the file if this happens. It must be saved as only HEADER.ZZ (replace ZZ with your game id).

4. CHANGES YOU CAN MAKE TO THE GAME: The CSG now ships with two default parameter sets, Basic and Advanced, which are in MKTINFO-Advanced.EXP and MKTINFO-Basic.EXP. The Advanced parameter set is the version that has been shipped with earlier versions of the CSG from 1998-2010. The Basic parameter set is a simplified version that eliminates many of the decision variables for students. In particular, in the Basic version, firms produce to order matching production to quantity sold up to their productions capacity. Firms cannot produce beyond their capacity. There are also no inventories in the Basic version. Finally, there is no change in market size in the Basic version, the growth rate is fixed at 0%.

If you do not want to use either of the default parameter sets, you can alter the parameters directly in either MKTINFO file. Think carefully before changing these parameters as it can affect the attractiveness of the market and the ability of firms to make a profit. Changes to the first few parameters will obsolete the tables in the market profiles. If you change these, you must run the demand data generator (described below) to produce new data for these tables. The handout file STRAGAME.DOC (or STRAGAME.TEX for the TEX version), which describes the game for students, is written for the parameters that are in the MKTINFO.EXP that I am shipping. If you change parameters in MKTINFO.EXP, you will need to make associated changes in STRAGAME and in the market profiles that you hand out to the students (which are in MKTPRFL.TEX and MKTPRFL.TXT).

(4.1) If you look at the parameters for each market in the file MKTINFO.EXP you will see that there are 20 lines for each market. Changing any of the first three lines makes the demand data in the market profiles obsolete. If the parameters on the first three lines are changed, the demand data generator (see section 8) must be used to generate new demand data for the market profiles. The next 16 parameters can be changed more easily, but you must also make the appropriate change in the associated market profile. With the exception of “Initial POP,” that simply involves changing the same number in the market profile. In changing any parameters in MKTINFO.EXP, make sure not to alter the location of the decimal point and the alignment of the number, since the program reads this file in fixed format. Any changes should be made with an ascii editor.

(4.2) Explanation Of Parameters –

Lines 1-3 (Mean of Consumer Reservation Price for the Good, Standard Deviation of Cons Res Price for the Good, Std Dev of Brand-Specific Adj as % of Res Price) – Explained in section 3. The “Std Dev of Brand-Specific Adj as % of Res Price” is the offset “x” discussed in section 3. Changing these parameters obsoletes the demand data in the market profiles and requires using the demand data generator (see section 8) to produce new data for the market profiles.

Line 4 (Initial POP (about half have res price < 0)) – Determines the size of the potential market. Since the mean of consumer reservation prices is zero, about half of these people will have positive reservation price for the good. If this number is changed, then every

number in the first table of the associated market profile (Information on Market Demand and the Effect of Brand Proliferation), which gives points on a market demand function, must be altered by the same proportion as Initial POP is changed. So, if this number is doubled, every entry in the market demand table must be doubled. No change to the second table in the market profile (Information on Brand Substitution) is necessary. Initial POP is the size of the population in period 1.

Line 5 (Initial Growth Rate) – The growth rate follows a random walk (note that it is the growth rate of population, not the population size itself, that follows a random walk). This parameter is the initial value of the population multiplier.

Line 6 (Standard Dev of Change in Growth Rate) – Each period the growth rate changes by the addition of a random variable that is normally distributed with mean zero and standard deviation equal to this parameter.

Lines 7-12 (Mean of EC, Std Dev of EC, Mean of K, Std Dev of K, Mean of MC, Std Dev of MC) – These are the means and standard deviations for the normal distributions from which each firm’s entry cost (EC), cost of acquiring capacity (K), and marginal cost (MC), respectively are drawn.

Line 13 (Inventory Cost Per Unit Per Period) – The cost of storing one unit of the good for one period. This parameter is moot if the product cannot be stored, as determined in line 20.

Line 14 (Slope parameter for MC for output > K) – When production exceeds capacity, the marginal cost of production increases as production increase. This parameter determines the slope of that change in MC.

Line 15 (Capital Depreciation in its first period) – A unit of capacity declines in value each period it is used. This parameter determines the proportional loss of value of the unit of capacity during the first period in which it is used.

Line 16 (Capital Depreciation per period after its first period) – This parameter determines the proportional loss of value of the unit of capacity during each period after the first period in which it is used.

Line 17 (Maximum Number of Periods that a Unit of Capacity Can Be Used) – The parameter determines how many periods a unit of capacity can be used before it evaporates. Note that the productivity of a unit of capacity does not decline. It has the same productivity during every period in which it is useful and then disappears. By setting this parameter to be greater than the possible number of periods that the game will be played, you can effectively make capacity infinitely lived (which was the case in previous versions of the game).

Line 18 (Scrap Value At End of Capacity Life (proportion of orig value)) – This parameter determines the proportion of the original purchase price that the firm recovers when the

capacity is used to the end of its useful life and then (automatically) scrapped. It should probably be set so that the absolute loss in value during the last period in which the unit of capacity is used is smaller than absolute loss in value during any previous period. That is, then Line18 should be set so that:

(1 ? Line15) · (1 ? Line16)(Line17?2) ? (1 ? Line15) · (1 ? Line16)(Line17?1)

> (1 ? Line15) · (1 ? Line16)(Line17?1) ? Line18.

Thus, the opportunity cost of using a unit of capacity will decline monotonically as the capacity ages, until it becomes useless. This parameter is moot if the life of capacity is set to be greater than the length of the game.

Line 19 (Match Output to Demand Each Period?(0=NO 1=YES)) – Setting this option to 1 eliminates the ability or need to inventory. You can think of this as made-to-order production: the price determines quantity demanded and then the firm produces that amount, or less. The maximum amount the firm will produce is determined by the QMAX that is part of the firm’s strategy. If QMAX is set to zero in a market where production is being matched to demand, the program defaults to allowing the firm to produce up to its capacity. Setting Line19=1 and requiring QMAX to equal capacity, causes the firm to produce the minimum of quantity demanded at the price it sets or capacity. (This was the operation of markets in Version 1.0 of the game, which I distributed and used in Winter 1994.) This is a much simpler market organization (and makes Line14 irrelevant). A slightly more complex setup is to set Line19=1, but allow students to choose QMAX. If output is to be matched to demand in all four markets (Line19=1 in all four markets), the program drops all reference to inventories in the output it produces. Obviously, changing Line19 from 0 (NO, the default) to 1 (YES) requires that you make some significant changes in STRAGAME.DOC.

Line 20 (Can the Product Be Stored? (0=NO 1=YES)) – This parameter allows you to make the product unstorable, but still maintain separate production and sales outcomes. Changing this from 1 (YES, the default) to 0 (NO) means that the firm still chooses production, and may sell up to the amount it produces each period, but any excess of production over sales goes to waste (there are no additional costs of disposing of the waste). This question is moot if you answer YES to the previous question and cause the program to match output to demand. If you answer YES to the previous question or NO to this question, then the cost of inventory is not relevant.

(4.3) The market parameters have been set to assure that at least a monopolist can make positive profits over the life of a 12 period game for the Advanced parameters and a 9-period game for the Basic parameters. If you plan to run the game for fewer periods, the mean of EC (and possibly K also if capacity life is long relative to the game) distributions should probably be lowered proportionally, e.g., a 6-period game should have mean EC

(and K) that are half those in the MKTINFO.EXP (and you should probably change the standard deviations to assure that you won’t get negative values).

(4.4) At the bottom of the MKTINFO.EXP file are more parameters that can be changed: the borrowing and savings interest rates, the initial cash positions, and a switch to allow multiple market entry by a firm in a single period. The interest rate on borrowing can step up at certain levels of debt. Both the debt levels at which the interest rate changes and the interest rates themselves can be adjusted by the operator.

(4.5) Once you have decided what, if any, changes to make to MKTINFO-Advanced.EXP or MKTINFO-Basid.EXP, you should make the changes with an ascii editor and then rename the file MKTINFO.ZZ. The descriptions of the markets are in MKTPRFL.TXT which you can also print using the DOS print command (TEX version MKTPRFL.TEX). If you change parameters in MKTINFO.ZZ from those in MKTINFO.EXP, then you must make the associated changes in MKTPRFL.TXT (or MKTPRFL.TEX). The market profiles should be distributed to the students when the game begins.

5. RUNNING THE GAME:

(5.1) Prior to running the first period of the game, you have to create the attributes of the eight firms. To do this, you start the game program by typing “CSG350” at the DOS prompt. The program will ask you for the two-letter identification of the game you want to run and the period that you want to run. To create the firm attributes, type zero (“0”) for the period you want to run. The program will recognize that the file COMPINFO.ZZ is not present in the directory and will announce that it is going to create COMPINFO.ZZ, which is its own company information file. COMPINFO.ZZ is a table of numbers with no text. It contains the cost structure of each firm in each market. The same information is also presented in more readable form in COMPPRFL.ZZ, a handout file that will be in HP ascii, TEX, email, or web format depending on which HEADER?.EXP you edited before (if email format, it will produce 8 files of the form COMPPRFL.*** where *** is the name of the firm). It will then change the file attribute on COMPINFO.ZZ to read only. At this point it is wise to copy all files you have created to a memory stick or another computer. If you lose COMPINFO.ZZ, you cannot recreate it because the cost values have been generated by a random number generator. You should print the COMPPRFL.ZZ file to hand out to students when the game begins (or send the COMPPRFL.*** by email). If you are using the CSG web site, you need only to have COMPPRFL.ZZ available when you register the game at the web site. The registration process includes uploading this file so that the cost information is placed on each team’s web page. (Team web pages are password protected.) Once you have registered a game, you will receive an email with the passwords for each team, which you will need to distribute to the teams.

(5.2) Now you are ready to run the first period of the game. To run each period, you have to create the file STRAIN??.ZZ, where ?? is replaced by the two-digit number of

the period. So, for the first period, you have to create STRAIN01.ZZ. If you are using the CSG web page, you need only follow the web page directions for creating the strategy input file. The structure of the STRAIN??.ZZ files is shown in STRAINFO.EXP. (Leaving the QMAX input set to zero when output is *not* being set to demand implies that the firm wants to sell everything, inventory (if the good is storable) plus all production. This is almost always the preferred option. When a market is produce-to-order, QMAX will generally be set above capacity by an optimizing firm.) The program reads this file in fixed format, so it is important that you do not change the alignment of the numbers and that you enter only integers. If a market has been set to be produce-to-order, then the production number has no meaning, but some number must still appear as the production figure (zero is fine in that case).

Note that there is one blank line between each strategy. The number above the name of each firm is the period to which the strategy applies. The program checks to make sure that this matches the period it is running, so that it catches cases in which you have inadvertently forgotten to change a team’s strategy from the previous period. The teams’ strategies need not be in the same order as the companies in COMPNAME.ZZ, but each name in STRAIN??.ZZ must match exactly (same case for letters) with a name in COMPNAME.ZZ. Remember, in the first period, firms can only invest in capacity (entering no more than one market per firm per period, unless you change that switch). They cannot sell output until the period after the capacity is built, so no sales take place in the first period.

The second strategy in STRAINFO.EXP (for MOO) illustrates how the normal response to a request for capacity reduction – removing the youngest capacity first – can be overridden. Rather than just ordering a certain reduction, the strategy can specify the age of capacity to be sold off. The MOO strategy shown indicates that the firm wants to sell off 2 units of capacity that are listed in the most recent company update as being 2-periods old (note that this is one period younger than these units will be when they are actually sold off) and 7 units of capacity that are listed in the most recent company update as being 3-periods old. Up to 10 units/age pairs can be included in the strategy of a given firm in a given market (all on one line, with each entry taking a total of 6 spaces including leading blank spaces). That said, this is unlikely to come up and I have avoided this complication in STRAGAME.TXT by telling the students to see me if they want to override the default. I expect that only very rarely will strategies deviate from the standard format illustrated by the other seven firms in STRAINFO.EXP. The CSG web page does not allow for overriding the standard capacity reduction, but it can still be done by hand by editing the strategy input file that the web page creates.

Earlier versions of the CSG website accomodated public statements by the firms, but in these days of social networking that has become outdated. The CSG webpage no longer accepts public statements.

(5.3) To run the game each period, within the DOS window in the directory where you are keeping the software and game files, you type “CSG350”. The program will then ask for the two-letter identification of the game and the period you want to run. If the program runs into trouble, it will tell you why – for instance a certain file is corrupted or a strategy charges a zero price in a market in which the company has positive capacity or tries to reduce capacity in a market below zero – and will then terminate. You can also run the game by clicking on the csg.exe file in Explorer, but the window then closes immediately after the game runs and will not let you see any error messages.

(5.4) The last step of running the game is to distribute the information it creates. Assuming that are using the CSG web page, refer to the instructions on the web page (section 9) for details of how to do this.2

(5.5) Finally, again copy all the files that you have created to a backup location, such as a memory stick or another computer. Because the market growth rates and consumer choices are generated by random processes, they cannot be recreated if you lose the data specific to your game.

(5.6) You can alter the history of play in the game. To do so, you must edit the most recent PLAYIN??.ZZ file. For instance, if you decided to fine a firm for violating antitrust laws, you would do so by using an ascii editor to change the relevant figure in the CASH AT END OF PERIOD area of the PLAYIN??.ZZ file. Be very careful making such changes and make sure that the placement of the numbers doesn’t change since the program reads the file in fixed format. To make a change, you need only to alter the most recent PLAYIN??.ZZ file (that is, if five periods had taken place at the time you wish to make a change, you would need only change PLAYIN05.ZZ). The program uses only the most recent PLAYIN??.ZZ file to get all game history when it runs.

6. ENDING THE GAME: On the last period of the game, you should inform the program that this is the last period. To do so, change the period number above each company name in the STRAIN??.ZZ file to 99. The program will accept 99 even though it will not match the period being played, and will prepare the game for completion. This means it will set all of the capacity change variables to liquidate all capacity at the end of the period. (The program does not make any allowance for residual inventory at the end of the period. Residual inventory receives zero value in the final cash calculation.)

7. PRODUCING A SUMMARY OF THE GAME: A supplementary program

2 If you have set the game for email distribution, then each period it will produce eight files called UPDATE??.*** where the ?? is the two-digit number of the period and *** is the three letter name of the firm. Each file contains the market update and the firm’s own company update. If you have set the game for HP-compatible or TEX output, then it will produce two files. The CMPUPD??.ZZ file contains eight pages, a separate company update for each firm (?? is the two-digit number of the period). The MKTUPD??.ZZ file contains just one page, the market update.

(summ350.exe) is included with the game that allows you to produce a summary sheet of all activity in the game, including information unknown to the players, such as market growth rates, and every team’s costs and sales. This may be useful to you during the game for you to analyze what is going on, and can be used in class at the end of the game as part of a retrospective analysis. To produce the game summary sheet, type “summ350”. The program will then ask for the name of the game you want summarized and the last period to include in the summary. The program produces a flat text file that is formatted to be easily read into a spreadsheet program. Once you load the output of summ350 into a spreadsheet program, you can produce graphs of data analysis.

8. THE DEMAND DATA GENERATOR: The demand data generator can be used to generate data for the period 1 demand in the market (before any growth). This is necessary if any changes are made to the fundamental structure of demand in a market, as represented by lines 1-3 of the market information (see section 4.2). Even if no such changes are made, the demand data generator can be used to give students enough additional “data” to estimate demand functions using regression. The demand data generator takes as input (1) the market for which data are to be generated, (2) the two-letter name of the game (e.g., ZZ), and (3) sets of prices for 1-8 firms in the market. Then, after reading MKTINFO.ZZ, the demand data generator reads each set of prices and produces quantities for each firm for which a price is given. As in the market profiles, the demand data generated assumes that each firm has sufficient capacity or production to meet its demand. The input file DMDGN350.IN gives the exact structure of the inputs. You need to open DMDGN350.IN with an ASCII editor and change the game id to your game id. Then you can edit the market letter, and the lines of data of number of firms and their prices. See the top of the file DMDGN350.IN for more information. Example input files for each of four markets are given in DMDGN350.INA through .IND. If you use these files, you must change the name of each to DMDGN350.IN before running the program.

9. USING THE CSG WEBSITE: The CSG website is an interface for students to submit their strategies and for the instructor to distribute results. The CSG itself runs on your PC completely independently of the website. But the CSG website makes it much easier to collect strategies and distribute results than any of the other alternatives, so using it is strongly recommended.

To use the CSG website, you must first set up the CSG on your PC. After unpacking the files, you should set up your first game before going to the website. That means editing the HEADERW.ZZ file (and saving it as HEADER.ZZ), the COMPNAME.ZZ file and the MKTINFO.ZZ file as discussed above. Then run period 0 of the CSG in order to create COMPPRFL.ZZ. You have to change “ZZ” to some other two-letter game id and it cannot be the same as any games currently running on the CSG website. So go to the website, http://csg.haas.berkeley.edu , to see what is already in use.

Setting Up a CSG Game on the Website: Now it’s time to set up the game on the website. Go to the CSG website, http://csg.haas.berkeley.edu , click on “Log In” and then click on “Register” if you have not previously registered as a user of the new CSG website. Fill out the form making sure to enter an email address that you monitor regularly. The address will receive your game setup confirmation. It is also where I will contact you when we need to delete your game from the website after the term is over. Once you have registered once, you don’t have to do this again.

Next log in to the website with your new user id and password and then click on “Create” just below the top banner. Enter the full game name, number of students and type of students. Then upload the company cost file that you created when you ran period 0 of the game COMPPRFL.ZZ . Then click the “create” button.

Once game is has been successfully created, go to your email account and make sure you received the confirming email, which will include the passwords for the game.

Then go back to the webpage and increment the period from 0 to 1. After doing that, click to unlock the page so students can start inputting their strategies for period 1.

Instructions to Students for Entering Strategies and Viewing Results: Students use the website to view their company cost parameters and the results of each round, and to enter their strategies. To do so, they need to get to their company webpages. First, the student should go to the CSG webpage and click the game in which their team is playing. Then click on their team name, which will take them to the team log in page. The username is the two-letter game id followed by a hyphen and the three-character team name, e.g., ZZ-XXX. Passwords are preset in the game creation process and have been sent to the instructor. You need to distribute the passwords to the appropriate students.

Entering the username and password takes the students to their team webpage, which has the public market updates, the private company updates. If the game is unlocked, then there is also a link at the top that says “Edit Team Strategy for Current Period (??)” where ?? is the current period number. Clicking on that links takes the student to a page that has fields for Price, Production Quantity, Max Quantity to Sell and Capacity Change. After filling out the fields that they don’t want to be zero, they can hit the submit button. If at any time later (before you download the strategies) they want to change their strategy, they can do so by returning to the page, making changes, and hitting submit again.

After submitting, the students should be sure to log out of the website so another used of the computer cannot get to their team webpage.

Downloading Strategies and Uploading Results: At the end of each round, the instructor has to download the submitted strategies, run the CSG on your own PC and upload the results. To do so, go to the CSG website and click the “Log In” button, then log in with

your user id and password. Then click on the game for which you want to download strategy submissions.3

Once you are at the game page, click near the top to lock the game so students cannot enter strategies while you are processing the results.4 Then, under “Master Input Files for Each Period” click and download the file for the current period. That is the STRAIN??.ZZ file for the CSG software to use.

Run the CSG on your PC, then return to the CSG webpage, log in and upload the results using the “Upload Results” link at the bottom of the page. After uploading the results, click the “Increment” button, so the webpage moves to the next period. Then click “Click here to Unlock” so students can start entering strategies for the next period.

10. TEACHING NOTES: The game can be used to illustrate many different economic and strategic teaching points. In almost all cases, the game’s educational value in enhanced by use of a spreadsheet. They can then use it to figure out costs, approximate demand curves, and run various scenarios of possible competitors.

When I start the game, I give a short lecture on a few of the major points about costs and product differentiation. I demonstrate how the fixed costs per period and the sunk costs of entering a market should be treated differently than marginal costs. I then circulate a spreadsheet that does the optimal capacity and price calculation for a monopolist (ignoring the uncertainty about market growth).

I also talk about residual demand curves, first in the context of homogeneous goods and then with product differentiation. This is a good time to remind them of the goal of profit maximization and the role of setting marginal revenue equal to marginal cost, since some students get it in their heads that they should set P = AC or P = MC. The demand function and cross-elasticity information in the market profiles can be used within a spreadsheet to create interpolated residual demand functions. I have also generated additional demand data points (using the demand data generator described below) to give the students enough to estimate the demand function with a regression (ignoring the fact that real data of this sort would present endogeneity problems).

The students catch on quickly to the fact that they must pursue their comparative advantage, and I often have a discussion about how one might figure out which markets are most likely to be hospitable. They realize that no one number determines comparative advantage in a market and they eventually figure out that they can construct a hypothetical cost function for a competitor who is, for instance, one standard deviation below the mean on all costs. A basic understanding of statistics is helpful. I explain that all cost variables are

3 You will only have access to the games that you have created.

4 The webpage will not let you download the strategy submissions unless the game is locked.

drawn independently, so the joint probability of being more than one standard deviation below the mean on all costs is actually quite low.

Since the residual demand and cost analysis leads to straightforward calculation of a best response function, one can even ask more advanced students to derive the (approximate) two-firm Nash equilibrium for given demand, cross-elasticity, and cost information. More generally, I ask the students to think about whether they can make money in a given market if their own costs are, say, 5% above a competitor’s. I want them to get the idea that this matters much more in market D, where the good is very homogenous, than in market C, which is highly differentiated.

I originally used the game in a course called “Competitive Strategy” at Stanford GSB and in a senior seminar at U.C. Davis. The early part of these courses was designed to cover topics that are relevant to the game: entry deterrence, residual demand curves, predation, exit, cooperative and non-cooperative oligopoly, collusion in repeated games, and multimarket contact. With all of these topics, examples and applications can easily be taken from the game. I have also used it in a Ph.D. course at Davis and have written problem sets that walk them through the demand, reaction function, and equilibrium estimation. At the end of that course, I had them estimate behavioral parameters (as Bresnahan called them in his I.O. handbook chapter) using the data from the game.

For many years, the game was used in the second half of the MBA core micro course at Berkeley-Haas. We used a basic version of the game (no growth, matching production to output, no ability to produce beyond capacity), but it seems to be quite successful. Many students have commented that it makes the oligopoly section of the course much more intuitive. Note that with fairly minor changes, markets can be turned into virtual Cournot (make the depreciation on capital zero in market D where goods are already nearly homogeneous, so firms set capacity first and then set prices) and differentiated Bertrand (make the capital cost zero in a market). The game is now used in a core strategy course at Haas that is taught in the last 7 weeks of the first-year curriculum. Since it’s creation in 1994, the CSG has been used at more than 75 universities and colleges in about 20 different countries.

11. TECHNICAL SUPPORT, QUESTIONS, AND USE RESTRICTIONS: I can be contacted most easily by email at borenste@haas.berkeley.edu . My address and telephone number are Haas School of Business, University of California, Berkeley, CA 94720-1900, 510-642-3689. Before contacting me with a problem, please check the FAQ at http://faculty.haas.berkeley.edu/borenste/csgfac.html .

This software may be copied and distributed freely so long as it is distributed in its original form. Please do not distribute files that you have altered. Also, please let me know if you are using the game as I like to keep track of the experience people have had with it. Please send me your comments and suggestions as I will be producing revised versions.

Attachment A: Example of a market profile

MARKET DESCRIPTION: Market X is a large market, but shows very little growth prospect. Consumers consider different brands to be usable substitutes if prices are sufficiently different, but they do have favorite brands, which they will buy if prices are close to one another. Entry costs for market X are moderate, and vary substantially across firms. Production is very capital intensive and there is significant variation across firms in the efficiency of production.

PRODUCTION COST INFORMATION:

Mean Entry Cost: $50000 Standard Deviation: $3000 Mean Cost of one unit of Capacity: $2000 Standard Deviation: $400

Mean Marginal Cost: $40 Standard Deviation: $5

Percentage Depreciation of Capital in Period After Construction: 30%

Percentage Depreciation of Capital in Following Periods: 10%

Maximum Useful Life of Capacity: 8 periods

Scrap Value As a Percentage of Original Capacity Cost: 35%

Inventory Cost: 10 per unit per period.

Slope parameter for MC for output > available capacity: 10

DEMAND INFORMATION: The following demand information is for period 1. Growth or decline of the market in subsequent periods would affect aggregate quantities. For the figures below, it is assumed that each firm has sufficient production plus inventory to supply the demand for its product at the indicated prices:

Information on Market Demand and the Effect of Brand Proliferation: If there had been the indicated number of firms each charging the same indicated price, the cell shows the approximate market output that would have resulted:

Number of

Firms in Market

Price

200

3059

3660

3831

4176

300

1439

1681

1915

2169

400

512

711

861

1059

Information on Brand Substitution: With two firms in the market, if firm 1 charges the price shown in the lefthand column and firm 2’s price differs by the amount shown in the top row, then the cell indicates the approximate market share of firm 1.

Price Differential

of Firm 2

-20%

-15%

-10%

-5%

Firm 1 Price

200

22%

28%

36%

43%

300

16%

22%

31%

40%

400

13%

21%

28%

39%

OTHER MARKET INFORMATION:

Market Growth Rate in Period 1: 1%

Standard Deviation of Change in Growth Rate: 0.5 percentage points

Attachment B: Example of a Market Update

UC MARKET UPDATE AFTER PERIOD 5

PRICES CHARGED: (***** indicates no capacity for production this period)

MKT

250.

300.

200.

*****

200.

220.

100.

*****

270.

*****

300.

*****

300.

*****

300.

*****

500.

800.

*****

600.

CAPACITY AT END OF PERIOD:

MKT

50.

200.

400.

480.

550.

500.

37.

60.

150.

40.

100.

700.

APPROXIMATE MARKET SALES: (±10%)

MARKET

APPX. SALES

3408.

535.

280.

2546.

Attachment C: Example of a Company Update

Company MOO(#UC2) Update After Period 5

Beginning Inventory

Production

100.

55.

Quantity Sold

100.

55.

Ending Inventory

Price

300.

Capacity at Start of Period

100.

45.

Capacity At End of Period

200.

37.

Inventory Costs

Variable Costs

5100.

2438.

Capacity Costs

86600.

-9782.

Entry Costs

Revenue

30000.

16500.

Net Revenue

-61700.

23844.

Cash At the End of Period 4:

813446.

Interest Earned (Expense) :

16269.

Total Net Revenues :

-37856.

Cash At the End of Period 5:

791859.

Age Structure of Capacity at End of Period 5

(*****

= maximum capacity life)

C D

Maximum Capacity Life

New Capacity

100

1-Period Old Capacity

100

2-Period Old Capacity

3-Period Old Capacity

4-Period Old Capacity

*****

5-Period Old Capacity

*****

6-Period Old Capacity

*****

7-Period Old Capacity

*****

8-Period Old Capacity

*****

9-Period Old Capacity

*****

10-Period Old Capacity

*****

Manual del Pequeño Empresario

Las cosas que un microempresario debería saber

El Manual para el pequeño empresario es un documento elaborado por Daniel Viera Castillo, profesor de economía de la Universidad de Tarapacá y Tomás Bradanovic Pozo, consultor en proyectos de inversión pública y privada.

Los temas escogidos se dirigen a la capacitación del pequeño y mediano empresario y son tratados en 17 capítulos que condensan los principales conceptos tratados en el curso de capacitación empresarial del que éste documento forma parte.Se ha procurado entregar los principales conceptos sobre dirección de pequeñas empresas de manera clara y resumida de modo que resulten de utilidad práctica e inmediata para los participantes.

El material de éste curso se basa en el seminario “Taller práctico para pequeños empresarios” y recoge tanto la experiencia personal de los autores como aportes bibliográficos sobre el tema, particularmente el libro “Lo que todo pequeño empresario debe saber” de Meredith, Nelson y Neck editado por la Oficina Internacionl del Trabajo de Ginebra.

Como se llega a ser empresario

Hay diferentes caminos por los que una persona se convierte en empresario, uno bastante común es la necesidad. Lo que diferencia a un empresario de los demás trabajadores es que no recibe un sueldo fijo por lo que hace sino que arriesga su tiempo, sus recursos financieros y su esfuerzo con la esperanza de obtener mejores ganancias que trabajando por un sueldo.

El precio de la seguridad es obtener ingresos limitados. Para el empresario no hay límites. Al menos eso es en teoría,. Es común encontrar entre los empresarios a ex vendedores, acostumbrados a cumplir metas bajo presión o a personas que siendo buenas en su oficio se independizaron.

Aparte de aquellos que nacen empresarios, heredando un negocio familiar por ejemplo, existe un gran número de personas que pasa de asalariado a hombre de empresa, bien por necesidad o por decisón propia. La cesantía es una importante escuela de iniciativa empresarial, hay personas que al quedar sin trabajo no permanecen de brazos cruzados y salen a trabajar por su cuenta ya sea limpiando autos, manejando un taxi, ofreciendo servicios especializados o montando un negocio o empresa industrial..

No hay duda que para ser empresario se necesitan ciertas características personales: generalmente son personas que prefieren mandar a ser mandadas, que confían en sus propias capacidades, dispuestas a arriesgarse, personas fuera de lo común y que piensan a largo plazo. Sin embargo también hay empresarios que no tienen ninguna de estas características. Así podemos decir que no hay reglas fijas para convertirse en empresario, mas que el estar dispuesto a hacerlo, aunque algunas de las virtudes señaladas ayudan bastante. Se definen como condiciones importantes de un empresario

“la confianza en si mismo, la capacidad para asumir riesgos, la flexibilidad, la necesidad de realizar y el deseo de ser independiente”.

Una de las cosas que impiden que el mundo esté lleno de empresarios es que muchas empresas fracasan. Este es un hecho consubstancial a la actividad de emprender y como a la mayoría de nosotros nos gusta la estabilidad y la seguridad mucha gente se conforma con llevar una vida

tranquila, con menos logros pero también con menos riesgos. Si le ofrecen a elegir a una persona entre ganar un sueldo excelente o ser empresario la mayoría escogería lo primero. Luego existen muchos empresarios que lo son solo porque no han encontrado un buen trabajo.

Así la vida empresarial presenta ventajas y dificultades y cada cual decide si vale o no la pena arriesgarse para trabajar por cuenta propia. Es raro el caso de un empresario que no haya fracasado y por ello los que permanecen emprendiendo a menudo son personas tenaces. Si hay algo característico de los empresarios es la voluntad de aceptar los fracasos y aprender de los errores.

A pesar de los miles de páginas que se han escrito con las “claves para el éxito empresarial” no existe ninguna receta que pueda garantizar el éxito. El emprender implica riesgo y las grandes ganancias requieren de grandes riesgos, el empresario trabaja en un mundo incierto y en gran medida fuera de su control. Este manual no pretende enseñar a tener éxito en los negocios sino mas bien a conocer la naturaleza de los negocios, las oportunidades, los peligros y los costos.

Lo que se pretende en éste manual es ayudar al pequeño empresario a conocer su negocio más allá del detalle, del día a día entregandole una visión global. No hay recetas que garantizen el éxito pero si algunas realidades simples que muchos de quienes se dedican a la actividad empresarial rara vez toman en cuenta.

El empresario es un líder

Sea cual sea su actitud o manera de ser, el empresario debe convertirse en un dirigente. Existen tantas maneras de dirigir como empresarios pero el hecho de llevar a otros a que lo sigan es la esencia del trabajo de un empresario. El Presidente de Pepsi Cola Roger Enrico lo explicaba así:

Y con los hechos en la mano, el individuo puede convertirse en empresario, gerente general sin título -un campeón. ¿Que hae un campeón en una compañía? Corre por los pasillos gritando “siganme muchachos”. Y si lo dice en forma lo suficientemente persuasiva, con bastante sustancia, ¿que ocurre?. Que lo siguen ”

En otras palabras es normal que un empresario exitoso tenga o adquiera la capacidad de entusiasmarse y transmitir a los demás el entusiasmo. Esto explica por que personas inteligentes pero indecisas nunca llegan a ser buenos empresarios, la capacidad de dirigir va mas allá de la mera inteligencia o habilidad técnica, también es una cuestión de carácter. A veces equivocarse y mantener el entusiasmo resulta mucho más valioso que no equivocarse nunca. Los errores pueden corregirse, el entusiasmo rara vez se recupera.

La capacidad para dirigir es fundamental en todo empresario ya que si no la tiene o no la adquiere, inevitablemente será un empleado suyo el que manejará su negocio. No siempre coincide el dueño y el jefe en una misma persona. La capacidad de dirigir debe desarrollarse y perfeccionarse día a día y debe estar de acuerdo al punto de vista y la personalidad del empresario.

Para dirigir a los demás es fundamental tener un punto de vista respecto al negocio, a los problemas y en general ante la vida. Un dirigente tiene una opinión definida frente a lo que ocurre y se guía por esa opinión para enfrentar los problemas. Mucha gente se deja llevar a la deriva por lo que le va pasando, sin formarse opiniones sobre las cosas. Sin un punto de vista es muy dificil que una persona logre dirigir a otros.

En general existen dos grandes estilos de dirección: los que ponen énfasis en los resultados (fijación de metas y su cumplimiento) y los que ponen énfasis en las personas (gratificación,

motivación, buenas relaciones humanas). Ambos estilos tienen ventajas y desventajas y es dificil encontrar alguien con un estilo “químicamente puro” ya que los extremos casi siempre terminan en fracaso.

Un buen dirigente debe lograr el doble objetivo de obtener resultados y mantener alta la moral de su gente. Esto no es tarea fácil ya que en muchos casos ambos objetivos se contraponen: la fijación de metas difíciles y su cumplimiento se logran con mayor facilidad usando el estilo despótico, pero los efectos de largo plazo sobre la moral de los trabajadores pueden llevar a efectos indeseables como la alta rotación de personal y el deterioro de las relaciones humanas dentro de la empresa.

Una cualidad importante de un buen dirigente es predicar con el ejemplo, solo puede exigir trabajo y eficacia quien se muestra como el más trabajador y eficaz, hay que recordar que una relación humana abusiva no puede funcionar bien permanentemente, al final cada uno cosecha lo que ha sembrado, no solo en el plano de los negocios.

Asií el empresario como dirigente tiene el deber de dar el ejemplo y la necesidad de motivar a su gente, hay que recordar que a menudo el trabajador gana lo mismo haga bien o mal su trabajo y por ello es la motivación la que hace la diferencia. El trabajador desmotivado llega inevitablemente a la ineficiencia, lo que significa el fracaso del empresario como líder.

El empresario y el riesgo

Existe la creencia común de que existen los “buenos” y los “malos” negocios y que la habilidad de un empresario consiste en descubrir los negocios buenos y evitar los malos. Por eso popularmente se cree que a los empresarios inteligentes les va bien y a los tontos les va mal.

Desgraciadamente el asunto no es tan sencillo. Si esto fuera cierto el mundo estaría repleto de empresarios multimillonarios, ya que después de tantos siglos es muy poco lo que queda por descubrir, esta creencia ha hecho la fortuna de miles de “gurus de la administración” que escriben libros muy convincentes con las recetas para tener éxito en los negocios.

Lo que explica porqué a personas inteligentes no siempre les va bien y porqué otros sin inteligencia alcancazan el éxito es el azar inherente a toda empresa.

En nuestra vida diaria corremos riesgos constantemente, es imposible evitar todos los riesgos pero si podríamos vivir tan seguros como nos sea posible. Ahora bien, la máxima seguridad la alcanzaríamos al no hacer absolutamente nada.

El dilema del empresario, en los negocios y en la vida, es encontrar hasta qué punto está dispuesto a arriesgarse:

“Un empresario sabe correr riesgos calculados.. No rehusa los desafíos, pero no es un jugador. Evita las situaciones en que el riesgo es muy pequeño, porque no entrañan ningún reto y no prometen gran cosa. También evita las situaciones en que el riesgo es excesivo, porque lo que quiere es triunfar. Evaluá con realismo los riesgos que vale la pena correr”.

Esa es la teoría, sin embargo en la práctica determinar en que medida un riesgo es “calculado” o “razonable” resulta imposible. La verdad es que cada uno determina el grado de riesgo que está dispuesto a correr.

Sin embargo hay un factor característico de los buenos empresarios: están siempre dispuestos a aceptar la posibilidad del fracaso, de asumir el fracaso y no culpar a otros o a la mala suerte cuando las cosas no han resultado como esperaban, es por eso que un buen empresario debe ser una persona tenaz, persistente. Si se descorazona con facilidad lo más probable es que termine buscando la seguridad de un sueldo fijo .

Es bastante dudoso definir que riesgos son razonables o no, cuales vale la pena correr y cuales no, especialmente si consideramos que la mayor utilidad, el mayor logro siempre está aparejado a riesgos altos. Muy poca gente está dispuesta a correr riesgos y muchos menos están dispuestos a a hacerse “personalmente responsables” de las consecuencias de sus decisiones. Por eso hay un gran campo abierto a los que no tienen miedo de arriesgarse.

La lógica dice que un pequeño empresario tiene mucho menos que perder que uno grande y por lo tanto debería estar dispuesto a correr los mayores riesgos. En la práctica sin embargo ocurre todo lo contrario, el empresario pequeño es el que tiene mayor aversión al riesgo. En la medida que se tenga audacia, persistencia y se esté dispuesto a asumir las consecuencias del fracaso mayores serán las posibilidades de éxito en la pequeña empresa.

Pero cuidado, la disposición al riesgo tiene que estar siempre acompañada de realismo y capacidad de analizar friamente las situaciones. Ese es el punto que diferencia a un empresario de un jugador (que en lo demás son bastante parecidos): el jugador juega por la emoción, el empresario juega por cálculo y para ganar.

El empresario y la toma de decisiones

Una de las obligaciones del empresario como líder de su negocio es la de tomar decisiones. En las grandes empresas esta labor se comparte, delegándose en gerentes la toma de decisiones operativas y tácticas, lo que deja libre al empresario para decidir sobre la orientación estrategica del negocio.

El pequeño empresario tiene la doble tarea de actuar como dueño y gerente, lo que tiene ventajas y desventajas para el negocio. Por una parte este doble papel le permite llevar un control más directo sobre la orientación de la empresa pero tiene la gran desventaja de eliminar al responsable operativo de la marcha de la empresa. El empresario como gerente no se reporta ante nadie sino ante si mismo lo que tiene muy mal efecto cuando toma alguna decisión equivocada.

Es sabido que todos tendemos a ser muy críticos con los errores de los demás y muy indulgentes con los nuestros. Es muy común que un pequeño empresario no sea autocrítico con su gestión operativa y que persista en repetir una y otra vez los mismos errores. Cuando existe un gerente reportándose ante el dueño deberá pagar por cada una de sus equivocaciones que incluso le pueden costar el trabajo, no ocurre lo mismo cuando es el propio dueño quien actúa como gerente.

Decíamos antes que la tenacidad es una cualidad que se encuentra en la mayoría de los empresarios, esta cualidad debe ir equilibrada con la flexibilidad, la disposición a reconocer los propios errores y corregirlos. De otro modo tenemos al típico empresario inflexible, porfiado, que tropieza una y otra vez con la misma piedra.. La tenacidad no debe ser sinónimo de inflexibilidad o miopía.

Para tomar decisiones acertadas hay que ser capaz de analizar las cosas friamente, estudiar bien cada problema, pesar los pro y los contra etc. Pero eso es solo una pequeña parte del proceso. La mayoría de las decisiones importantes son imposibles de analizar ya sea porque no se tiene información suficiente o simplemente porque no siguen ningún patrón lógico (como por ejemplo cuando se depende del clima).

Así es importante que un empresario sea capaz de analizar situaciones con inteligencia para decidir acertadamente, pero eso solo no es suficiente, además será necesario que muchas veces acuda al instinto, lo que se conoce como el “buen olfato empresarial” . Sobre esto no hay nada que decir ya que es una cualidad que cada uno tiene en mayor o menor medida.

Los problemas que enfrenta un empresario tienen un gran componente de azar e incerteza, ya lo hemos dicho antes. Sin embargo existe un cierto grado de maniobra dentro de las decisiones que se toman día a día. Muchas veces ocurrira que auque se tomen las decisiones “correctas” los resultados serán malos y eso debe ser aceptado como parte del juego empresarial. Sin embargo el que persiste en tomar decisiones irracionales o de gran riesgo tendrá en su contra dos veces la ley de probabilidades y no será raro que fracase sistemáticamente.

Finalmente, no se puede dejar de mencionar que las emociones son por lo general causa de la toma de decisiones equivocadas. La emoción produce un estado alterado de conciencia y nos lleva muchas veces a actuar de manera irracional, muchísimos empresarios se han arruinado por no haber sido capaces de controlar su orgullo, su miedo o su rabia en el momento de tomar una decisión importante. Las emociones son importantes como combustible de nuestro actuar, pero al momento de tomar decisiones lo mejor es hacerlo con la cabeza fria.

Planificando el negocio

“La vida es lo que nos ocurre mientras estamos ocupados haciendo planes”

Es necesario planificar, primero que nada para establecer los objetivos de la empresa. Si bien los grandes objetivos son relativamente obvios (crecimiento, éxito en la gestión financiera, prestigio, etc.) los objetivos específicos se pierden de vista con facilidad . Un ejemplo típico es cuando una empresa crece y comienza a generar negocios relacionados, unos mejores que subvencionan a otros no tan buenos. Una planificación cuidadosa es fundamental para identificar y separar los distintos negocios de una empresa y determinar cuales vale la pena mantener y cuales no.

Existen dos clases de planificación en la empresa: la planificación estratégica de las grandes decisiones y la planificación de control financiero. En el primer tipo se resuelven problemas como el del párrafo anterior: creación y cierre de líneas de negocio, estudio de los mercados, búsqueda de oportunidades, etc. En el segundo tipo se llevan controles y seguimiento de la gestión financiera: ventas, costos, gastos y utilidades mensuales, control del presupuesto, etc.

El control financiero puede delegarse a un contador o un gerente, pero la planificación estratégica no se puede escapar de las manos del empresario. La importancia relativa de estos tipos de planificación varía con el tamaño de la empresa: Mientras menor y mas simple sea el negocio más importante es la planificación y control financieros, pero a medida que crece en tamaño y complejidad va tomando importancia la planificación estratégica.

En pocas palabras el objetivo de planificar es fijar metas y objetivos y luego controlar si estos se están cumpliendo. Hay planes de corto, mediano y largo plazo (típicamente un mes, un año y más de cinco años respectivamente), mientras mayor sea el plazo más importante para el empresario es su cumplimiento. Por ejemplo una meta mensual puede que no se logre y no tendrá mayor efecto sobre el negocio, pero si una meta de cinco años no se alcanza es hora de preocuparse seriamente. Cuando existe un plan cada uno sabe con precisión cual es su tarea y cual es el rendimiento que se espera de él.

Además de la planificación de la empresa es fundamental que el empresario aprenda a planificar su propio tiempo “no tengo tiempo” o “necesito un día de 25 horas” es la queja típicade los que no han aprendido a administrar su tiempo.

“Una característica esencial de los empresarios es su capacidad de trabajar de manera organizada. A otros puede parecerles que son muy desorganizados, pero lo cierto es que la mente subconsciente de casi todo empresario está siempre atenta”

El tiempo es un capital muy especial, todos lo tenemos y solo podemos gastarlo. El tiempo pasa igual para ricos y pobres y el tiempo que perdemos jamas se vuelve a recuperar. Así es asombroso cuan poco cuidamos nuestro tiempo, es el ejemplo más claro de que lo que no nos cuesta no lo valoramos.

“Recuerde que una de las pocas cosas cuyo dominio esrtá casi totalmente en sus manos es el uso de su tiempo”

“Usted no puede elegir entre gastar o no gastar su tiempo. El tiempo es uno de sus recursos más valiosos, pero no tiene más remedio que gastarlo”. Aunque no hay regla fija entre lo que significa aprovechar bien o mal el tiempo una buena guía es la siguiente “Sin beneficios su empresa moriría. Tenga esto presente al programar el uso de su tiempo. Todo problema que incida en los beneficios debe ser atendido antes que cualquier otro”.

Como hacer un plan financiero

Un plan financiero es la expresión en cifras de lo que se espera de la empresa.: comprende la fijación de los objetivos, el estudio y selección de las estrategias que se usarán para alcanzarlos, la colocación de metas, etc.

Las empresas pequeñas normalmente funcionan sin ningún plan explícito. Pero el empresario que se dedica a diseñar un plan financiero (grande o pequeño, estará en gran ventaja respecto de aquel que se deja llevar por los múltiples factores de azar que influyen en los negocios: los barcos sin timón por lo general terminan encallados.

Los objetivos también tienen distintos niveles de prioridad y podríamos nombrer, entre otros a: la rentabilidad (es decir que sea mas conveniente invertir el capital en la empresa que depositarlo en un banco), la eficiencia (rendimiento deñl capital y la mano de obra), el crecimiento en el tiempo, las reinversiones, etc. Cada empresario tendrá sus propios objetivos y prioridades, lo importante es definir de manera explícita cuales son estos.

En una pequeña empresa, donde el empresario hace las veces de gerente, su casa la ocupa como oficina, su auto como vehículo de la empresa, etc. es muy importante considerar que, aunque no cuesten dinero, todas estas cosas no son “gratis”. Si no se les considera con su respectivo precio el plan financiero estará fuertemente distorsionado.

Los elementos básicos del plan financiero para un pequeño empresario son simples: ventas, costos, gastos, utilidad bruta, impuestos y beneficios (o utilidad neta). Sin embargo son sorprendentemente pocos los pequeños empresarios que fijan metas y controlan estas variables regularmente. Así es un milagro que muchas pequeñas empresas no quiebren y aún prosperen en medio de la más absoluta falta de control y planificación.

Un pequeño empresario tradicional gasta el dinero a medida que le va ingresando, ya sea de su capital propio, de préstamos o de las ventas, y solo se da cuenta si el negocio anda bien o mal en la medida en que le quede saldo a favor en su chequera a fin de cada mes.

Un buen empresario por otra parte estima detalladamente sus costos y gastos, fijando un sueldo incluso a su propio trabajo, a partir de eso estima cuanto debe vender como minimo para cubrir sus costos (y no tener que comerse el capital), es decir su “punto de equilibrio”. En base a éste dato puede hacer su presupuesto que luego deberá ir controlando mensualmente para saber como marcha el negocio. La mayoría de las quiebras se producen porque el empresario no se das cuenta de lo malo que está ocurriendo hasta que ya es demasiado tarde.

.Existe una serie de “test acidos” para determinar si un negocio vale la pena o no, si su endeudamiento es o no aceptabl, si vale la pena mantener el volumen de inventario, etc. Se

trata de “termometros” que marcan la buena o mala salud del negocio. La realidad es que los pequeños empresarios rara vez hacen caso de estos indicadores y muchas veces deciden seguir con negocios que dan todo tipo de señales de alarma con la esperanza de que las cosas mejorarán en el futuro. No es la manera más lógica de llevar una empresa pero si la más común, y muchas veces resulta debido a que el factor de azar inherente a las empresas produce

cambios dramáticos. Esto no quiere decir que la planificación sea inútil, al contrario, pero si hay que tener en cuenta que los indicadores numéricos no son infalibles y que no basta una buena planificación para asegurar el éxito de una empresa. No basta, unque ayuda bastante.

El dinero es un recurso clave de la empresa y debe ser bien administrado. Mientras más pequeña es la empresa más peligroso resulta el derroche. Así toda la planificación

anteriormente descrita debe servir de base para proyectar el flujo de caja. El “flujo de caja” es el detalle de las entradas y salidas de dinero del negocio y todo buen empresario sabe lo importante que resulta tenerlo controlado. Muchos dejan esta vital tarea a ls bancos, fijandose solo en los saldos a fin de mes. Nada más peligroso que esta práctica. Aunque el flujo de caja es dificil de proyectar si se puede controlar diariamente lo que dará al pequeño empresario una importante radiografía de la salud del negocio.

El empresario y los sueldos

“Después de seis meses yo seguía muy entusiasta, pero había un pequeño detalle que no dejaba de preocuparme: el cheque de mi sueldo no mostraba aumento alguno”Roger Enrico,

Presidente de Pepsi Cola

El sueldo es el precio del trabajo, cualquier empresa, aún cuando tenga un solo trabajador (el empresario) debe fijar sueldos. Es práctica normal entre los pequeños empresarios no considerar su propio sueldo dentro de los costos, sin embargo esto solo aumenta la confusión y dificulta determinar si vale la pena o no seguir una linea de negocios. El empresario debe fijarse un sueldo aproximadamente igual a lo que ganaría estando asalariado. Si el beneficio del negocio es menor o similar a ese sueldo hay una clara señal de que algo debe ser corregido.

Es un lugar común decir que el recurso humano es el capital mas importante de un negocio, pero no es solo eso; la calidad de los trabajadores es fundamental para el éxito o fracaso de cualquier negocio. El problema de los recursos humanos debe enfrentarse con realismo, un empresario

de buen corazón, que tolera a trabajadores que -sostenidamente -hacen mal su trabajo es un candidato seguro al fracaso. Una cantidad importante de empresas han quebrado por la falta de capacidad y motivación de sus trabajadores.

Existen dos factores claves que hacen la diferencia entre un buen y un mal trabajador:

capacidad y motivación y un empresario deberá rodearse de personas capaces y motivadas. Lo que pocos empresarios piensan es ¿por que un trabajador va a hacer su tarea con entusiasmo?, hay varias respuestas, pero sin duda que la más adecuada es:

simplemente por dinero.

Desde el punto de vista del contador los sueldos son un componente mas de los costos fijos. A menores sueldos menor costo, mayor espacio de maniobra para competir y mayores beneficios. Por otra parte situaciones coyunturales de cesantía, problemas macroeconómicos, sobreoferta profesional y de mano de obra, etc. hacen posible muchas veces conseguir personas bien calificadas dispuestas a trabajar con sueldos bajos.. Así, desde una perspectiva de corto plazo y para trabajos simples puede optarse por la mano de obra barata.

Sin embargo un empresario que desee ganar mercados y crecer con rapidez rara vez lo logra por la via de bajar costos críticos. Hay mercados como los orientales, sin leyes sociales y con mano de obra extremadamente barata que hacen muy dificil competir en esas condiciones. Un pequeño empresario, por regla general tiene que ganar espacios ofreciendo calidad, atención, productos y servicios personalizados. El verdadero nicho de todo pequeño empresario es la personalización, pues en ese campo las grandes empresas con economias de escala no pueden competirle. Ahorrar en sueldos es como echar agua a la leche. Puede que resulte por un tiempo pero la mala calidad del recurso humano finalmente se paga con creces.

No debe entenderse lo anterior como una recomendación a pagar altos sueldos sin relación al desempeño, camino seguro a la ruina. Nada de eso, lo más razonable es tener estructuras flexibles de remuneraciones que aseguren que sean los trabajadores destacados quienes reciban su recompensa costante y sonante.

Se podrían llenar libros completos listando pequeñas empresas exitosas por medio de la personalización y la calidad de sus servicios. Sin embargo esto no puede lograrse con empleados mal pagados, los seres humanos tienden a creer que es posible obtener algo a cambio de nada. No es posible. Solo se puede tener un producto de calidad con empleados de primera, bien incentivados, economicamente antes que nada, para que hagan su tarea de manera excelente.

Las pequeñas empresas comunmente ofrecen sus productos a un precio menor pues no cuentan con recursos para publicitarse al nivel de los grandes, esto que es algo inevitable al comienzo debe ser etapa superada en el menor plazo posible. El mercado está lleno de pequeñas empresas que ofrecen productos económicos y de calidad mediocre, sobreviviendo apenas y que nunca alcanzan el despeque. Una preocupación prioritaria de todo pequeño empresario debe ser romper este círculo vicioso y posicionar su empresa en un nivel superior de calidad, con precios adecuados que permitan tener al mejor personal y los mejores beneficios

Los créditos

A menos que sea hijo de millonarios, lo más usual es que el pequeño empresario comienze su negocio con pocos recursos. Como por regla general resulta imposible levantar una empresa (legítima) sin dinero, el empresario deberá recurrir al crédito para financiar su negocio.

Los empresarios que comienzan suelen tener aversión al crédito, preferirían en lo posible trabajar con recursos propios ya que no tienen ni la experiencia, ni el manejo de los instrumentos, ni el acceso al crédito. Para el empresario que se inicia todo es riesgo, todavía no tiene la suficiente confianza en sus propias fuerzas ni en su negocio y pasa por un estado de transición donde trata de ser independiente y ganar arriesgando el mínimo. Eso no es posible, solo quien arriesga gana pues el lucro va normalmente en proporción a los riesgos. Si alguien desea ser empresario y le da miedo endeudarse, mejor que se busque otro trabajo o que se conforme con un micronegocio de subsistencia.

La primera norma al pedir un crédito es que el dinero prestado debe emplearse en inversión y nunca en gasto. Inversión es cualquier cosa que genere dinero y el dinero que genere la inversión debe ser mucho mayor que el interés que se paga por el crédito. Esto que parece obvio no es siempre entendido por los empresarios que comienzan, no es raro ver pedir un crédito para comprar un vehículo o un equipo costoso que va a generar (supuestamente) la misma ganancia que otro más económico. Ese diferencial, así como muchos gastos personales u

otros que no generan ingresos son los gastos, el peso muerto. Los lujos así como cualquier gasto improductivo jamás se deben financiar con dinero prestado.

El negocio de los bancos es comprar y vender dinero. Las personas que tienen dinero sobrante y desean una ganancia pequeña con mínimo riesgo son los depositantes. Aquellos que necesitan dinero y se arriesgan a comprarlo con la esperanza de generar ganancias son los que piden crédito. El interés es el precio del dinero, si las ganancias son menores al interés aparece un agujero. Todas estas verdades triviales es necesario repetirlas pues no falta quien cree que el Banco presta dinero porque son filántropos y luego que cobran ineterses se convierten en usureros. El corolario de todo esto es que los créditos para fines de consumo están por lo general prohibidos para un empresario, a menos que su negocio esté tan bien establecido que le asegure una renta fija suficiente para cubrirlos.

Entre las diversas fuentes de financiamiento de un empresario tenemos el capital propio, los préstamos de familiares o amigos, los préstamos bancarios, los créditos directos de proveedores, los préstamos de fomento de entidades estatales, el leasing, etc.

Las fuentes de financiamiento son muchas y el costo del dinero varía en cada caso, lo mismo ocurre en cuanto a la exigencia o no de garantías para avalar los créditos. Con la enorme diversidad de modalidades de crédito que ofrece el mercado, la propaganda, engañosa en muchos casos, de los bancos y financieras, es indispensable que el pequeño empresario se asesore por alguien especializado y de su confianza a la hora de escoger sus fuentes de financiamiento. De no hacerlo así y al escoger basado en el instinto o en la propaganda no tendrá derecho a quejarse cuando lo estén embargando.

Lo fundamental es que sería absurdo pedir dinero si no se va a utilizar con provecho, esto es, con una seguridad razonable que se va a invertir bien y que se obtendrá un beneficio muy superior a los intereses que se pagarán por el crédito. Para ello hay que tener bastante claro el costo real del crédito y los beneficios esperados de la inversión. Sin riesgo no hay ganancias, pero con demasiado riesgo lo más probable es que haya un embargo. Es trabajo del empresario encontrar el punto de equilibrio.

Las relaciones con los demás

Un empresario debiera aprender, antes que nada a llevarse bien con los demás “si qiuieres recoger miel, no des puntapiés sobre la colmena” recomendaba Dale Carnegie con mucha razón. Las buenas relaciones personales -no solo con sus superiores -son parte del capital intangible más valioso que puede tener un empresario. Quien lleva una empresa depende fuertemente, día a día de los demás:

Depende desde luego de sus empleados, que ganarán el sueldo aunque hagan bien o mal su trabajo, depende fundamentalmente de sus clientes, de sus proveedores, de los bancos. La buena o mala voluntad que le tengan las

personasque lo rodean pueden determinar el éxito o el fracaso de su negocio. En los tiempos dificiles (que no serán pocos) puede bastar la buena voluntad de un amigo para salvarlo, o la antipatía de un enemigo para hundirlo. No se trata simplemente de cultivar amistades interesadas de quienes lo puedan ayudar, el servilismo solo da ventajas de corto plazo. El empresario debe cultivar una actitud abierta y servicial hacia todos como parte de sus activos.

Ya vimos lo importante que resulta que la gente simpatize sinceramente con nosotros. El problema es como lograrlo, hay personas con más o menos “angel” natural y no puede hacerse nada al respecto. Pero si hay actitudes que pueden mejorar o empeorar nuestras condiciones naturales para que los demás nos aprecien. Primero que nada el empresario debe aprender a

controlar su tendencia a la polémica y a la crítica, que es uno de los principales factores que nos hace desagradables. “es imposible vencer con argumentos a un hombre ignorante”, más aún, es imposible que cualquier persona cambie de idea en el curso de una discusión. Si finalmente se le demuestra que está equivocado, usted acaba de ganar un enemigo para el resto de su vida.

Un amigo le escribió a Benjamin Franklin lo siguiente: “Ben, eres insoportable. Tus opiniones son como una cachetada para quie difiera contigo. Tanto es así, que ya a nadie le interesan. Tus amigos van descubriendo que lo pasan mejor cuando tu no estás con ellos. Sabes tanto que ya nadie te puede decir nada...” . Franklin entendió el mensaje y desde ese momento cambió su actitud... ¿somos nosotros capaces de lograr eso?. No hay manera más segura de hacerse antipático que polemizar y criticar a los demás. La unica forma de ganar una discusión es evitándola.

Interesarse en los demás, escucharlos, ponerse en su lugar es otra de las maneras seguras de sembrar amistades.

Se pueden ganar más amigos en dos meses si se interesa uno en los demás que en dos años si se hace que los demás se interesen en uno.El mundo está lleno de personas egoistas y aprovechadoras. De manera que los pocos individuos que sin egoismo tratan de servir a los demás tienen enormes ventajas. No hay competencia contra ellos.

Cultivar amigos y buena voluntad entre los demás es gratis y constituye uno de los principales bienes intangibles de un empresario. No se trata de vivir al servicio de los demás y hacer todo lo que le digan, basta con comprenderlos, ponerse en su lugar y tratarlos con respeto. Como el mundo está lleno de prepotentes el resultado no se verá de inmediato. Pero la siembra de amigos es a la larga, un seguro mucho más eficaz que cualquier actitud prepotente o aprovechadora.

La personalidad de ave de rapiña puede dar resultados inmediatos y muchas veces positivos, pero va inevitablemnente acompañada de la siembra de enemigos. Y una de las caracteristicas fundamentales del empresario es pensar y actuar a largo plazo

Los sistemas de control

Existe la creencia que el control y la eficiencia en un negocio van en sentido contrario; a mayor control menos eficiente son los métodos y sistemas de trabajo. Desgraciadamente muchas veces es así: un control demasiado fino sobrecarga el trabajo y demora la ejecución de las tareas.

Por otra parte la ausencia o la deficiencia de control ha sido causa de innumerables quiebras. Es asunto de vida o muerte que el empresario sepa , con cierto grado de certeza, lo que está ocurriendo en su negocio. Así y todo es increible la cantidad de empresarios que no tienen idea de cuanto han ganado o perdido en el mes, en el semestre o aun en el año, cual es su verdadera situación de inventario, la tendencia de las ventas, todas estas variables indispensables de controlar en cualquier negocio.

El control, asi como la seguridad absoluta no existen, al emporesario le toca definir el nivel de control razonable que le permita manejar el negocio de la mejor manera y sin sobrecargar sus actividades directamente productivas, además es sabido que el control tiene un costo, bien en salarios, equipos y programas de computación, auditorías etc.

El control es visto a menudo desde una perspectiva demasiado estrecha por algunos empresarios: un control de inventario con el solo propósito de que sus empleados no le roben difícilmente será amortizable por obra de sus beneficios. Pero si se toma en una perspectiva

más amplia un control de inventario puede ser de gran utilidad para decidir racionalmente las compras de reposición o para tener el valor exacto de la mercadería en bodega, lo que ayudará en gran medida a conocer de manera fideligna la real situación financiera del negocio en un momento dado.

Los sistemas de control deben ser vistos primariamente como generadores de información. Algunas veces el negocio puede tener una muy buena situación de caja pero con un inventario sobrevalorado, el empresario tendrá un espejismo de prosperidad inexistente. Al contrario si tiene problemas de caja y un buen inventario puede liquidar para hacer efectivo sin riesgo de estar comiendose el capital. Todo esto a condición de que tenga el valor actualizado y fideligno de su inventario, cosa que muchas veces no ocurre.

Como los sistemas de control no son fáciles de implementar y causan muchas veces problemas en el trabajo cotidiano, muchos empresarios optan por no llevar controles o llevarlos de manera reducida o intuitiva, es decir optan por bajar el control en beneficio de eficiencia y menores costos. Lamentablemente la intuición muchas veces engaña ya que tendemos a ver las cosas como nos gustaría que fueran más que como son, así no es raro que estos empresarios sean los últimos en entrerarse que el negocio está en quiebra.

El control de un negocio no tiene por que ser complicado, ni menos detallado. La mayoría de las veces basta con controlar las grandes cifras, tal como lo hacen los inspectores de impuestos. Es fundamental para cualquier negocio disponer de un informe ejecutivo, ojalá mensual, que detalle lo siguiente:

Ventas del mes Costo de las ventas Gastos del mes Impuestos y Leyes Sociales Utilidad del mes (ventas menos costos, gastos e impuestos) Valor del Inventario a fin de mes

El empresario que logre conocer estas seis variables cada mes no tendrá necesidad de procuparse por controles más complicados, es como dicen en inglés “the bottom line”, la ultima línea del balance lo que realmente importa

Lamentablemente es más fácil decirlo que hacerlo, como veremos en El Empresario y las Computadoras, donde se abordará la tarea de elaborar este aparentemente sencillo informe.

El empresario y los computadores

Las computadoras son subconjuntos de un todo mas grande cual es el sistema de información de la empresa. En los últimos años se ha notado un avance explosivo en el desarrllo de la computación, tanto que muchas veces siembra duda y confusión entre los empresarios que hacen grandes inversiones en equipos y sistemas que nunca llegan a cumplir con las expectativas que generaron en su origen.

Primero que todo hay que tener claro que las computadoras y los programas

no son el sistema de información, son solo herramientas que ayudan a generar reportes. Comprar computadores sin tener establecido un sistema de información eficiente es garantía de fracaso. Lo primero entonces es disponer de un sistema de información eficiente. La compra de equipos y programas debe ser siempre el último paso de un proceso de diseño de métodos de control, implementación de controles manuales y finalmente uso de computadoras para automatizarlos.

Para un pequeño empresario un sistema de información puede ser bastante simple: informes diarios de movimiento (compras, ventas) e informes mensuales de resultados e inventario. En la mayoría de los casos eso es suficiente. Sin embargo es fundamental un buen diseño ya que la mayoría de los negocios tienen un funcionamiento y requerimientos distintos.

En el diseño de un sistema de información siempre aparecen compromisos : no es practico controlarlo todo y hay que hacer concesiones entre lo que es fundamental, lo deseable y lo superfluo. Lo fundamental es usualmente el control de la mercadería y los resultados (compras, ventas, costo de las ventas, gastos, impuestos, utilidad).

Hay aspectos del negocio no vale la pena informatizar. por ejemplo la contabilidad formal en negocios pequeños, es a veces preferible la lleve un contador externo y no se gana gran cosa informatizandola. Esos son los aspectos que deben considerarse en el diseño, separando lo importante de lo que no lo es tanto.

La mayoria de los sistemas computarizados exitosos han sido creados de manera evolutiva, muchas veces comienzan como controles manuales que se van refinando con el tiempo y luego se comienzan a informatizar paulatinamente. Es muy conocido el caso de los grandes rediseños que terminan en un fracaso de recriminaciones mutuas entre los tecnicos, los operadores y los ejecutivos.

Existe un paso intermedio de computarizacion que consiste en el uso de utilitarios de propósito general, especialmente las planillas de cálculo. Es muy recomendable que un sistema manual pase por una etapa de planilla de calculo en algun mopmento, ya que esto ayuda a preveer los problemas prácticos que surgirán al implementar programas, además de reegistrar información histórica que puede ser posteriormente aprovechada.

Otra consideración se relaciona con el uso de programas estandarizados versus los que se hacen a la medida del negocio. Los primeros son mas caros, mas eficientes y mas riesgosos (puede que nunca lleguen a funcionar), los segundos tienen la ventaja de estar bien probados, ser más económicos pero a menudo resultan tan poco flexibles que no vale la pena usarlos. Una solución interesante para el pequeño empresario consiste en contratar un alumno en práctica, son económicos, disponen de mucho tiempo y están ansiosos por probar su competencia. Sin embargo el diseño es fundamental que lo haga alguien con experiencia en ambos campos, los negocios y la computación

Finalmente no puede dejar de mencionarse la necesidad de diseñar sistemas sencillos. La imaginación popular ve a los computadores como máquinas capaces de hacer tareas muy complicadas; ese es un gran error, el computador es fundamentalmente una maquina tonta que se destaca haciendo tareas muy sencillas, repetidamente con enorme rapidez. Un diseño limpio, sencillo es clave para el buen éxito de un sistema de información computarizado.

Selección de personal

Una experiencia real:

Algunos años atrás me tocó abrir una sucursal en Santiago de la empresa donde trabajaba y para contratar al jefe de local coloqué un aviso en el periódico. Era época de recesión y me llegaron cerca de 200 currículum. Desde la primera revisión se destacó un postulante que calzaba a la perfección con nuestros requisitos, por lo que quedó entre los cinco seleccionados para la entrevista personal. Su desempeño durante la entrevista fue perfecto por lo que arreglé una conversación telefónica con mis jefes que tomarían la decisión final. El hombre quedó contratado y yo me quedaría un mes viendo su desempeño.

A los pocos días de su período de pruebas apareció golpeado y con evidentes signos que había estado borracho, luego dejo de ir a trabajar. Nunca más se supo de él hasta que varios años

después apareció implicado en un asalto que tuvo amplia cobertura en los medios. Allí estaba nuevamente nuestro candidato ideal.

“El personal competente no suele ser un recurso abundante en ninguna empresa.Pero si usted quiere triunfar, debe saber como encontrar y conservar buenos colaboradores”.Esa es la teoría pero la historia anterior muestra cuan difícil es saber de antemano la calidad laboral de un postulante. Escoger los empleados clave es una de las tareas complicadas que debe enfrentar el empresario. Por ello una buena idea es ir ascendiendo a los que se tienen de acuerdo a sus méritos. Cuando se necesitan nuevos trabajadores siempre existe el riesgo de equivocarse.

Una buena fuente donde buscar es en los recién egresados del colegio o universidad, ellos tienen instrucción y motivacion pero poca o ninguna experiencia lo que los hace inútiles para puestos claves. Sin embargo muchas veces existe gente talentosa entre ellos con capacidad para adquirir la experiencia con relativa rapidez. Lo razonable es que partan en puestos que no impliquen responsabilidades clave sino que vayan evolucionando desde los trabajos menores, no hay que olvidar que aparte de la falta de experiencia, la gente muy joven tiene también poco conocimiento de las relaciones humanas y del funcionamiento del sistema laboral como un todo, cosas que solo se aprenden durante el trabajo práctico.

Otra fuente muy usual es buscar personas que desempeñen o hayan desempeñado un trabajo similar en otras empresas. Algunos empresarios cuando necesitan llenar un puesto clave se lo ofrecen a un empleado que trabaja o ha trabajado en una firma competidora, ya que, tratandose de un producto “probado” y con experiencia se puede esperar un buen rendimiento desde su primer día de trabajo.

Las recomendaciones personales son también uno de los factores más importantes a considerar al contratar a un nuevo empleado. Al recomendar a alguien, nos convertimos de alguna manera en fiadores de su capacidad para efectuar bien el trabajo, por ello es tan importante la recomendación de alguien que nos merezca confianza

“La contratación de personal es una tarea de gran responsabilidad. Tómese todo el tiempo que necesite para seleccionar los mejores candidatos, son precisamente estos quienes pueden contribuír en mayor medida al éxito de su empresa”.

Buscando oportunidades de negocio

Uno de los errores más frecuentes de los empresarios que comienzan es pensar que basta con tener un buen producto y con eso el negocio irá a las mil maravillas. Lamentablemente no es tan sencillo, hay muchas empresas con productos realmente buenos que no llegan nunca a venderse bien pues no han descubierto o aprovechado correctamente las oportunidades del mercado.

El concepto de “oportunidad” tiene algo que ver con tiempo y espacio, algo es oportuno en un momento y un lugar dado, puede que en otro momento o en otro lugar no lo sea, exagerando un poco, no basta con que vendamos excelentes impermeables en un lugar donde nunca llueve o que vendamos lindos trajes de baño en pleno invierno. El empresario exitoso por lo general no parte con un buen producto al que luego le busca mercado, mucho más facil es hacer todo lo contrario, estudiar el mercado en busca de oportunidades de negocio y luego aprovechar esas oportunidades. Es más facil adaptarnos nosotros al mercado que intentar que el mercado se adapte a nuestro producto.

Para estos efectos es necesario estudiar cuidadosamente el mercado, lo que implica

Encontrar mercados rentables elegir productos vendibles enterarse de los cambios en las costumbres y los gustos de los consumidores mejorar las técnicas de comercialización fijar metas de ventas ajustadas a la realidad

La tendencia natural de decidir basado en las preferencias y sentimientos personales es muchas veces el primer paso al fracaso, pocas veces resulta que lo que preferimos personalmente coincida con una buena oportunidad de negocios, aunque no existe en esto una regla fija (se dice que al presidente de Sony, Akio Morita se le ocurrió la idea del Walkman porque le gustaba escuchar musica mientras jugaba golf). El problema mayor de cuando elegimos productos en base a nuestras preferencias es que no somos muy racionales a la hora de evaluar y nos cuesta mucho más aceptar cuando resultan un fracaso.

Las oportunidades de negocio se examinan usualmente por medio de estudios de mercado, es muy importante que estos estudios resulten realistas y no estén influenciados por un excesivo optimismo. No es raro que se hagan estudios solo como una forma de dar justificación racional a nuestros sentimientos personales, la trampa del estudio tendencioso es algo que debe evitarse a toda costa, pues son un desperdicio de tiempo y recursos que además nos puede afirmar en caminos equivocados.

Una observación sistemática del mercado y de los posibles (o actuales) clientes es el primer paso para identificar las oportunidades de negocio, el empresario deberá estar siempre atento a señales que lo puedan alumbrar en el camino de encontrar nuevas oportunidades.

Luego de identificada la oportunidad de manera más o menos intuitiva, conviene asegurarse por medio de un estudio formal de mercado que considere al menos los siguientes aspectos:

Definición clara de lo que queremos averiguar con el estudio Recopilación de datos de fuentes propias (cifras de ventas, compras, costos, etc.) Recopilación de datos de fuentes externas (libros, revistas, encuestas, estadísticas del gobierno, etc.) Interpretación de los datos

Algo importante de mencionar es que el estudio de mercado es solo una herramienta más del conjunto que posee el empresario para tomar sus decisiones. Las decisiones de esta clase son inciertas por lo que los números no son el único factor que pesa. Lo fundamental es hacerse un buen panorama general de la situación y decidir en base a este.

Como comercializar los productos

Acostumbramos pensar en la comercialización o marketing como sinónimo de publicidad, la verdad es que el asunto es mucho mas que eso. Hace años tuve un trabajo en que llegué a conocer como funcionaban las cosas en los departamentos de markerting de una empresa japonesa y me llamó la atención que la publicidad era solo un pequeño sub departamento dentro de un sistema enfocado principalmente a la inteligencia comercial. Para ellos era mucho más importante estudiar el mercado que persuadirlo.

La comercialización puede verse desde el punto de vista del deseo de colocar un producto persuadiendo a los consumidores o bien del que estudia el mercado para comprender su mecanismo, detectando nuevas oportunidades de negocio.

Es cosa bien sabida que por muy eficaz que un empresario sea en todos los demás aspectos de su negocio, no tendrá éxito si no vende sus productos y servicios. el éxito de una empresa depende ante todo de la demanda de sus clientes

La empresa debe satisfacer una necesidad o demanda de los clientes y debe hacerlo mejor que la competencia o a un precio más bajo. Luego es necesario descubrir estas necesidades (oportunidades de negocio) y crear los productos y servicios para satisfacerlas. Esta es la

secuencia lógica de una pequetra empresa pues crear un mercado independiente de las satisfacciones actuales (como fue el caso del Walkman por ejemplo) es algho que requiere grandes esfuerzos, mucho capital y un largo tiempo sin ganancias, lujos que el pequetro empresario rara vez se puede dar.

Asi, vemos que existen dos enfoques en este campo: crear un mercado que no existe o ingresar a competir en un mercado ya existente ofreciendo mejor calidad, menor costo o ambas cosas a la vez (algo que es por lo general muy dificil). La pequetra empresa tiene todas las ventajas para esta última estrategia, en cambio para la primera (crear un mercado) las ventajas están de parte de las empresas grandes.

Algunos indicadores significativos para el pequetro empresario son:

Las ventas: comparar las ventas con el mes o período anterior son uno de los índices más obvios de problemas en la comercialización. Hay que recordar que incluso los malos tiempos presentan oportunidades de negocio, ante una baja en las ventas algunos empresarios se limitan a quejarse, mientras otros lo ven como un sintoma de algo que anda mal, y si se diagnostica que está suficientemente mal, es hora de planificar un cambio en el negocio La cantidad de clientes: si aumenta la cantidad de clientes que visitan el negocio o que son visitados por los vendedores pero las ventas permanecen igual, ese es otro claro signo de alarma. Lo normal es que a mayor cantidad de clientes sigan mayores ventas. Las quejas o devoluciones: la tendencia a autojustificarnos es universal, y también es dificil aceptar que las quejas sean responsabilidad nuestra, sin embargo un buen empresario sabe que el cliente tienen siempre la razón (eso lo sabe hasta un nitro, lo difícil es actuar de acuerdo a ese principio)

Algunos puntos fuertes de las pequetras empresas que siempre deben tenerse en cuenta para sacar el respectivo provecho son

Menores costos: lo que permite políticas agresivas en la fijación de precio de venta Flexibilidad: que permite a las empresas pequetras cambiar con rapidez y“nadar con la corriente, ajustándose a los deseos y preferencias siempre cambiantes de los clientes”

.Finalmente es de primera importancia ampliar la base de clientes, para lo cual existen medios que no requieren de grandes inversiones en publicidad. Primero que todo está la recomendación de parte de los clientes satisfechos, que costituye un importante activo de la empresa, luego está el nombre, logotipo, marcas y todo aquello que facilita que la reconozcan también es importante que el propio empresario tome un interés personal en la venta de su producto.

No espere que los nuevos clientes vengan a usted, salga a buscarlos.

Un empresario estudia su negocio

Mucho se habla acerca del olfato empresarial, de esa capacidad para predecir y adelantarse a los cambios del mercado y aprovecharlos favorablemente. Popularmente se cree que es una especie de don de la naturaleza con el que algunas personas nacen y del que otros carecen. Aunque algo puede haber de cierto en esto, no es menos verdadero que el olfato de los empresarios es a menudo solo una consecuencia lógica del grado de conocimiento profundo que tienen de su negocio.

Mucha gente se lanza a la actividad empresarial armados solo de fe y confianza en si mismos. Estos tienen tanta oportunidad de triunfar como el que apuesta a un pleno en la ruleta y sus posibilidades de permanecer en el negocio son aún mucho menores. Si bien el entusiasmo, la

perseverancia y la confianza son importantes para el éxito inicial , para mantenerse con exito es indispensable que el empresario gaste gran parte de su tiempo en estudiar cada uno de los detalles de su negocio, que aprenda sus mecanismo no solo de la experiencia sino también de las cifras y que sepa usar provechosamente estos conocimientos.

Los empresarios exitosos son a menudo los que toman su actividad tan seriamente como un profesional que estudia una carrera, los que en lugar de dedicar gran parte de su tiempo a “apagar los incendios” del día a día ponen gran parte de su empeño y de su talento en comprender la naturaleza y los resortes ocultos de su actividad. El empresario debe aprender a leer las señales del mercado, aún las menos perceptibles, para poder adelantarse a las tendencias y tomas decisiones atinadas.

Numerosas son las pequen"as empresas que quiebran, la mayor parte de ellas en los primeros an"os de existencia. No se desanime, pero sepa que, en su calidad de empresario, usted deberá hacer frente a muchos problemas que pueden tener consecuencias graves para su negocio. En más de una ocasión deberá decidir sin disponer de toda la información que quisiera y sin comprender a fondo todos los aspectos de su problema. En muchos casos, la información o la ayuda que un empresario necesita existe en alguna parte, pero él no sabe donde, o sencillamente no está predispuesto a pedir ayuda.

Para comprender bien un negocio no basta con la propia experiencia, hay conocimientos y puntos de vista diferentes que son imprescindibles para tomar buenas decisiones y el buen empresario estará siempre atento a adquirirlos. No debe caer ciegamente a la influencia de los asesores, pero tiene que considerar otros puntos de vista. Mientras más información y más puntos de vista recabe, mejor informadas estarán las decisiones y en la medida que se haga el hábito de considerar puntos de vista diferentes al suyo le sorprenderá comprobar que a veces los otros tienen la razón, un conocimiento valiosísimo para cualquiera en cualquier ´área.

Las principales fuentes de información disponibles para un empresario son:

El personal: la propia gente que trabaja en el negocio en la línea de combate normalmente tiene valiosa información que aportar para el conocimiento del negocio. Acostumbre a conversar y obtener tanta información de ellos como le sea posible Los clientes: todos sabemos que “el cliente tiene siempre la razón” aunque a veces se nos olvida, un contacto fluído y franco con los clientes le permitirá aprender mucho sobre su propio negocio. Los proveedores: hay interés mutuo en que su empresa tenga éxito, por lo que no dude en pedir consejo e información a sus proveedores La competencia: aunque no es probable que le den información de buena gana es importante estudiar la competencia como un factor vital de su negocio Los asesores profesionales: contadores, abogados y otros profesionales a honorarios podrán venderle su expertise. Pero no confie en ellos ciegamente, los provesionales suelen tener criterios muy extremados en relación al riesgo. Recuerde que por algo ellos mismos no son empresarios. Asociaciones gremiales, industriales, etc. Organismos del estado (Corfo, Sercotec, Prochile, etc.)

Un pequen"o empresario tiene poco personal, poco tiempo y poco dinero, pero necesita mucha información, ideas, consejos y ayuda. No tiene, necesariamente, que seguir los consejos que le den, pero es fundamental escucharlos para tener un conocimiento lo mas completo y profundo del funcionamiento de su negocio y de su área de actiuvidad

Appendix 1

El Problema fundamental de la micro empresa

Las microempresas normalmente trabajan con márgenes muy altos y volúmenes de venta muy pequeños, a medida que crecen, lo normal es que las ventas suban y los márgenes bajen. Un vendedor callejero de comida margina fácilmente un 200% o más, mientras que un restaurant con suerte obtiene un beneficio final del 10% . La diferencia es que el callejero vende unos US$ 800 al mes, mientras que el restaurant debe vender más de 10 veces esa suma para llegar al punto de equilibrio. Por eso el problema fundamental entre una microempresa y otra pequeña o mediana es que a la microempresa le cuesta mucho aumentar las ventas, mientras que a la empresa pequeña o mediana le cuesta mucho bajar los costos. Son problemas completamente distintos y lo peor es que los consultores de empresas y los politicos que diseñan leyes no se den cuenta de esto por lo que ofrecen soluciones de fomento inútiles.

Esta incapacidad de entender el problema fundamental, hace que los gobiernos malgasten millones en subsidios y beneficios inútiles. Pongamos un ejemplo práctico: Juan tiene una micro empresa que se llama BGL Asesorias Económicas y Proyectos, donde son dueños al 50% él y su esposa. El año pasado facturó un solo proyecto por US$ 20.000.- Manejando correctamente el asunto de impuestos puede llegar a un margen del 500% o mayor. Este año no ha hecho ni una sola factura. Si va donde un consultor de los que pone el gobierno a los pequeños negocios, le preguntará donde tiene su oficina "en mi casa" será la respuesta -¿Y haces publicidad?- "claro que no, con que plata" -¿Y cual es tu plan de negocios?- "ninguno, solo hago lo que yo se hacer" -¿Tu capital de trabajo?- "normalmente cero" -¿Y como consigues los trabajos?- "bueno, me buscan los amigos, los que me conocen, en la universidad o por Internet" -¿Tienes cuenta corriente o trabajas con algún banco?- "claro que no, desde que sali de la universidad, gracias a un antigua deuda académica no soy sujeto de crédito". El consultor recordaria la plantilla que le enseñaron y le erecomendaria hacer un plan de negocios, le regalaria algo de plata -unos 2 o 3 mil dólares- le recomendaria arrendar una oficina y hacer algo de publicidad. ¿Que haria Juan entonces? con esa plata se compra un auto y se tomo lo que sobre en pagar sus deudas personales, asi todo volveria a quedar como antes, yo andaria en un auto un poco más decente gracias a la generosidad fiscal y cuando le caiga otro cliente podria echar gasolina y disfrutarlo, mientras le dure la plata. la micro empresa es más rentable y requiere de menos trabajo.

Y claro, el problema de Juan es que vende muy poco , exactamente el mismo problema de todos los micro empresarios del mundo, bajo volumen de ventas con márgenes altos. Por supuesto que su problema no es de capital de trabajo, ni publicidad, ni falta de oficina sino de bajas ventas, y para la microempresa no funciona la publicidad generica, porque son negocios de nicho. Cuando se creó Prochile en los años 80 sus primeros administradores eran expertos norteamericanos, diagnosticaron certeramente este problema y se convirtieron en el agente de ventas de las pequeñas empresas chilenas, el resultado está a la vista: los boom del salmón, de la fruta y del vino.

Luego Prochile pasó a manos chilenas y pasó a ser manejado por teóricos sin experiencia, desde hace varios años que dejó de ser un factor importante del desarrollo exportador, hoy se mueve con los lugares comunes del emprendimiento (que palabra más antipática) y nunca más volvió a gatillar nada importante. Existe una enorme brecha de comercialización entre el productor microempresario y el mercado.

1 INTRODUCTION

The goals of the postgraduate programmes at the Indian Institute of Technology Kanpur are: The development of scientific and engineering manpower of the highest quality, to cater to the needs of industry, R & D organisations and educational institutions, a broad grasp of the fundamental principles of the sciences and scientific methods, a deep understanding of the area of specialization, an innovative ability to solve new problems, and a capacity to learn continually and interact with multidisciplinary groups. Above all, the students should have a capacity for free and objective enquiry, courage and integrity, awareness and sensitivity to the needs and aspirations of society. With these goals in view, the postgraduate programmes are designed to include courses of study, seminars and project/thesis through which a student may develop his/her concepts and intellectual skills.

The procedures and requirements stated in this manual embody the philosophy of the postgraduate education and ensure a high standard of performance at the Institute. Within this general framework, subject to the approval of the Senate Postgraduate Committee (SPGC), the various departments and programmes may impose such additional requirements as will serve their particular academic goals.

1.1. Postgraduate Programmes

1. The Indian Institute of Technology offers one-year programme leading to the Diploma of the Institute (D. IIT.) in certain specified areas of engineering.

2. The Institute also offers programmes leading to the Master of Technology (M.Tech.) degree in Aerospace Engineering, Biological Sciences and Bio-Engineering, Chemical Engineering, Civil Engineering, Computer Science and Engineering, Earth Sciences, Electrical Engineering, Environmental Engineering and Management, Industrial and Management Engineering, Materials Science & Engineering, Materials Science Program, Mechanical Engineering, Nuclear Engineering and Technology and Photonics Science and Engineering.

3. Programme leading to the Master of Design (M.Des.) degree.

4. Programme leading to the Master of Business Administration (MBA) degree.

5. Programmes leading to the Doctor of Philosophy (Ph.D.) degree exist in Aerospace Engineering, Biological Sciences and Bio-Engineering, Chemistry, Chemical Engineering, Civil Engineering, Computer Science and Engineering, Design, Earth Sciences, Electrical Engineering, Humanities and Social Sciences (Economics, English, Philosophy, Psychology and Sociology), Industrial and Management Engineering, Materials and Metallurgical Engineering, Materials Science, Mathematics (including Statistics), Mechanical Engineering, Nuclear Engineering and Technology, Photonics Science and Engineering and Physics.

The Senate Postgraduate Committee (SPGC), established according to the bylaws of the Senate, operates through the Departmental Postgraduate Committees (DPGCs) to administer all aspects of the above programmes. The constitution, jurisdiction and functions of the SPGC and the DPGC are given in Annexure I.

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1.2. Waiver of Requirements in Special Cases

The procedures and requirements stated in this manual, other than those in section 2.3 (Eligibility for Admissions) and section 7.7 (Academic Performance Requirement) may be waived in special circumstances by the SPGC on the recommendation of the DPGC. All such exceptions shall be reported to the Senate.

2. Admission

2.1. Academic Session

The academic session of the Institute is divided into three parts: two regular semesters and a summer term. The first semester will normally commence in the last week of July every year, and the second in the last week of December. The summer term will run from the middle of May to the middle of July.

2.2. Admission Calendar

1. The admissions to the M.Tech./M.Des. and Ph.D. programmes may be made in either or both of the two regular semesters. Admission to the D.IIT. programme may be made once in a year but in either semester. The Head of the Department concerned may take the decision in this regard. Admissions to MBA programme are made once a year in first semester.

2. Admissions to the M.Tech./M.Des. and Ph.D. programmes are normally made in April-May for the first semester and in November- December for the second semester. The Dean of Academic Affairs will notify the admission calendar each semester. Admissions to the MBA program are normally made in March-April for the first semester.

3. In addition, the department may process applications for admissions to Ph.D. Programmes on a continuous basis and admit students as per the existing procedure. The candidates admitted during the course of a semester, would be required to register for proportionately reduced credits.

2.3. Eligibility for Admission and Reservation of Seats

1. The eligibility conditions given below are the absolute minimum. Departments may prescribe any requirements over and above these, subject to the approval of the SPGC.

2. The “specified minimum” marks/CPI (Cumulative Performance Index), referred to in subsequent sections, implies a minimum of 55 percent marks /5.5 (on a 10 point scale) as long as it is not less than the minimum pass marks/CPI; otherwise, the “specified minimum” marks/CPI implies the minimum pass marks/CPI.

3. Applicants having qualifications equivalent to the ones stated in sections 2.3.1 to 2.3.8 may also apply for admission to the appropriate programme.

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4. The number of admission that can be made to any programme shall be as decided by the Senate from time to time.

5. Reservation of seats for various reserved categories shall be as prescribed by the Board of Governors. Annexure II provides the details of the reservations approved by the Board.

6. Candidates belonging to the Scheduled Castes/Scheduled Tribes who have passed the basic qualifying degree as stated in sections 2.3.1 to 2.3.8, are eligible to apply irrespective of the marks/CPI and will be considered for admission.

2.3.1. D.IIT.

The applicant must have a bachelor's degree in engineering or a master's degree in science with marks/CPI not below the specified minimum. Only candidates sponsored by recognized industries are eligible for admission to this programme.

The applicant must have a bachelor's degree in engineering or science (4 year program) or a master's degree in science with marks/CPI not below the specified minimum. Only candidates sponsored by recognized industries are eligible for admission to this programme.

2.3.2. M.Tech.

The applicant must have a valid GATE score card, bachelor's degree in engineering or science (4 year program) or a master's degree in science with marks/CPI not below the specified minimum. For admission into M.Tech. in Biological Sciences and Bio-engineering, applicants having bachelor’s degree in pharmacy/medicine with marks/CPI not below the specified minimum may also be considered. The requirement of a GATE score is waived for M.B.B.S. degree holders and for engineering graduates from IITs with minimum CPI 8.0.

2.3.3. M.Des.

The applicants must have a bachelor’s degree in Engineering or science (4 year program), Design or Architecture with marks/CPI not below the specified minimum. Candidates holding degrees in Fine Arts or Interior Design are not eligible to apply.

2.3.4. M.B.A.

The applicants must have a valid CAT score and Bachelor’s degree in Engineering or science (4 year program) or B.Arch. (with mathematics in class XII) with minimum 60 percent marks/6.0 CPI.

2.3.5. Ph.D. in Engineering

An applicant from CFTI (Centrally Funded Technical Institutes) with CPI of at least 7.5/75% in his/her B.Tech.

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An applicant with a master's degree in engineering with marks/CPI not below the specified

minimum

An applicants with a bachelor's degree in engineering or science (4 year program) with a minimum

of 75 percent marks/7.5 CPI,

master’s degree in science or an allied area, satisfying each of the following criteria:

(a) a minimum of 65 percent marks/6.5 CPI in the master’s degree,

(b) first division in bachelor’s degree, and

For admission into Ph.D. in Biological Sciences and Bio-engineering, applicants having master’s degree in pharmacy/medicine with marks/CPI not below the specified minimum, or bachelor’s degree in pharmacy/medicine with a minimum of 75 percent marks/7.5 CPI, may also be considered.

2.3.6. Ph.D. in Sciences

The applicant must have a master's degree in the relevant subject or a bachelor's degree in engineering or science (4 year program) with marks/CPI not below the specified minimum.

2.3.7. Ph.D. in Humanities and Social Sciences (HSS)

The applicant must have a master's degree in the relevant subject or a bachelor's degree in engineering or sciences (4 year program) or a master's degree in sciences or in an allied field of HSS with marks/CPI not below the specified minimum.

2.3.8. Ph.D. in Management:

An applicant from CFTI (Centrally Funded Technical Institutes) with CPI of at least 7.5/75% in his/her B.Tech.

An applicant with a master's degree in engineering/technology with marks/CPI not below the

specified minimum

An applicants with a bachelor's degree in engineering or science (4 year program) with a minimum

of 75 percent marks/7.5 CPI,

master’s degree in science or an allied area, satisfying each of the following criteria:

(a) a minimum of 65 percent marks/6.5 CPI in the master’s degree,

(b) first division in bachelor’s degree, and

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An applicant from CFTI (Centrally Funded Technical Institutes) with CPI of at least 7.5/75% in

his/her B.Tech.

The applicant must have a master’s degree in Engineering/ Technology/ Design with marks/CPI not

below the specified minimum.

An applicants with a bachelor's degree in engineering or science (4 year program) with a minimum

of 75 percent marks/7.5 CPI,

master’s degree in science or an allied area, satisfying each of the following criteria:

(a) a minimum of 65 percent marks/6.5 CPI in the master’s degree,

(b) first division in bachelor’s degree, and

2.4 Admission Procedure

The applicants must apply for admission on prescribed forms, which must be sent directly to the Convener, DPGC of the department concerned.

1. All admissions will be made on approval by the Chairman, Senate on the recommendations of the duly constituted selection committees and the Chairperson, SPGC. A selection committee will consist of faculty members, one of whom will be from another department. The constitution of the selection committee will be proposed by the DPGC sand approved by the Chairperson, SPGC.

2. Separate selection committees may be appointed to select candidates belonging to different categories, viz., sponsored, regular, QIP, etc.

3. Admission to the M.Tech. programme may be made directly based on the GATE scores of the candidates and performance in the qualifying examination, and in addition, some of the candidates may also be called for written tests and/or interviews.

4. Candidates for D.IIT programme will be called for interview and may in addition be asked to take a written test.

5. Admission to the MBA programme will be made based on the CAT score and performance in the interview and/or group discussion.

6. Admission to the Ph.D. programmes will be based on written tests and/or interviews of the candidates shortlisted by the DPGC of the department concerned.

7. The admission of Scheduled Castes/Scheduled Tribes candidates will be decided without comparing them with the general category candidates.

8. The selected candidates who have completed all the examinations including project/thesis examination and the viva voce before the date of registration but are unable to produce the certificate in proof of having passed and secured the minimum specified qualifying marks, may be considered for provisional admission. However, if admitted provisionally, they will be required to

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produce the evidence of their having passed the qualifying degree examination with minimum specified marks by the last date for document submission as specified in the academic calendar (usually about 8 weeks from the date of registration), failing which the admission may be cancelled.

9. The provisions in para 8 shall not be applicable in the case of M.Sc./M.Tech. students of the institute, who have been provisionally selected for admission to a Ph.D. programme. These students will be admitted to the Ph.D. programme subject to the condition that they must successfully complete all the prescribed requirements including acceptance of their thesis in a particular semester by the late registration date as specified in the academic calendar.

10. On approval by the Chairman, Senate, the departments will issue the admission letters to the candidates who will be required to accept the offer of admission by depositing the prescribed fee before the specified date.

11. In case a candidate does not accept the offer by paying the prescribed fee by the specified date, the offer of admission may stand withdrawn, and the admission offered to the candidates in the waiting list, if any, in order of merit.

12. The offer of admission may also stand withdrawn if the candidate who has accepted the offer fails to register by the date for late registration.

2.5. Admission of Quality Improvement Programme (QIP) Candidates and Defence Personnel

The procedures and requirements for admission of QIP and defence personnel candidates will be as per the prescribed existing procedure. These candidates will have to satisfy the prescribed minimum marks and qualifications as laid down in section 2.3.

2.6. Admission of Indian Nationals Residing Abroad (INRA) and Foreign Nationals

1. INRA candidates must have been residing abroad continuously for at least one year at the time of applying for admission. Their applications may be processed by the departments as and when they are received or according to any schedule convenient to the department. The applications should be scrutinized to make sure that, both in terms of qualifications and attainment they are comparable with the candidates admitted in the general category.

2. The applications of foreign nationals, who are sponsored by the Indian Council of Cultural Relations (ICCR) will be scrutinized by the department concerned to assess their suitability for admission to the programme. The department's recommendation will be sent to the Chairman, Senate through the Chairperson, SPGC.

3. The applications of non-sponsored foreign national candidates will also be considered for admission to the postgraduate programmes. Such candidates who are in India and are seeking admission to the M.Tech. programme must satisfy the same GATE requirements (if eligible to take it) as the candidates in the general category. However, application of a candidate who is in India and has not been able to take GATE for valid reasons, will be considered by the department concerned on its merit. Admission of such candidates will be subject to no-objection from the Department of Education, Ministry of Human Resource Development.

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2.7. Admission to External Registration Programme for M.Tech. and Ph.D. (Engg.)

1. A candidate working in an R & D establishment which is equipped with the necessary research and library facilities may be considered for admission to the M.Tech. and Ph.D. (Engineering) programmes. Such a candidate must be sponsored by his/her employer and must have been in employment with the sponsoring organization for at least 2 year at the time of admission. The employer must expressly undertake to pay full salary to the candidate and relieve him/her to stay on the campus to enable the candidate to complete his/her residence requirement (specified in section 7.1).

For employees of research labs, centers of excellence, and other organizations such as DRDO, CSIR, DAE, DoS, DIT, DST, DBT, ICMR, ICAR etc., fully funded by the government (national/state), the minimum employment requirement will be only one year. The reduced employment requirement will also be applicable to employees of public sector unit (PSU) and central and state universities fully funded by the government

2. A candidate applying for admission to the external registration programme must provide detailed information about the research facilities available at his/her organization and a certificate that these would be available to him/her for carrying out research. He/she should also provide the biodata of the prospective supervisor who would supervise the candidate's work at his/her organization.

3. On the recommendation of the DPGC, the SPGC will approve an organization for carrying out M.Tech./Ph.D. research in a specified area. An application for admission from a candidate working in the approved organization will be considered only if he/she wishes to work in the specified area.

2.8. Admission of Sponsored Candidates

1. A candidate who is sponsored by his/her employer and who meets the additional conditions specified below may be admitted through a separate selection committee appointed specifically for the purpose.

2. A sponsored candidate must have been in service of the sponsoring organization for at least two years at the time of admission. The sponsoring organization must specifically undertake to provide full salary to the candidate and to relieve him/her to pursue the programme for its full duration.

3. Fulfillment of GATE eligibility requirement may be waived for such candidates. However, the sponsored candidates seeking admission to the M.Tech. programme who have not taken GATE will be called for interview and may in addition be asked to take a written test.

2.9. Admission to Part-Time Programmes

1. The Institute also offers part-time postgraduate programmes leading to the M.Tech/Ph.D. degrees for local professionally employed personnel such as working engineers, scientists and teachers who can, while employed, attend regular classes as per schedule of the Institute.

2. The applicant must be an employee of a recognized organization with at least two years of service at the time of admission and be engaged in professional work in the area to which admission is sought. For an employee of IIT Kanpur (project or regular) with a valid GATE score at the time

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of seeking admission, may be waived. An application for the part-time studies forwarded by the employer should be sent to the Convener, DPGC of the department concerned.

2.10. Admission of Non-Degree Students

1. A non-degree student is a student who is registered for a degree in a recognized institute or university in India or abroad, and who is officially sponsored by that institute or university to complete part of his/her academic requirements at I.I.T. Kanpur. For that purpose the non-degree student may carry out research or take courses for credit or otherwise or may use other academic facilities. However, any credits earned by a non-degree student cannot be applied for any degree programme at I.I.T. Kanpur at any time.

2. A candidate will be admitted as a non-degree student on a duly sponsored application to the Dean of Academic Affairs who will recommend admission on the advice of DPGC and SPGC to the Chairman Senate for approval. The strength of non-degree students in any programme should not be more than 5% of the programme strength.

3. Students so admitted will be governed by all rules, regulations and discipline of the Institute.

3 FINANCIAL ASSISTANCE

1. The Institute may provide to postgraduate students, financial assistance in the form of teaching or research assistantships (referred to as Institute Assistantship). Assistantships are awarded on a semester to semester basis for a period of up to 22 months for M.Tech. students and up to five years for Ph.D. students. The stipend for the assistantship is paid at the approved rates. A student is expected to devote up to eight hours per week towards job(s) assigned to him/her. The renewal of assistantship is contingent on the student's satisfactory performance in the academic programme and in the discharge of assistantship duties.

2. A student on teaching/research assistantship is also reimbursed for some contingency expenses as per the approved terms and procedures to be notified from time to time. The reimbursement for a M.Tech. student is done twice on annual basis, and for a Ph.D. student annually for the first four years of his/her programme, if he/she is on an Institute Assistantship.

3. Some financial assistantships in the form of research assistantships may also be available from sponsored research projects. Additional assistantships in the form of scholarships, fellowships, etc. may be available through other organizations, such as, the Council of Scientific and Industrial Research (CSIR), Department of Atomic Energy (DAE), etc.

4. In addition to the students admitted with financial assistance, students may also be admitted to the M.Tech./Ph.D. programmes on a self-financing basis.

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4 REGISTRATION

1. A student is required to register for I semester, II semester and Summer term for the courses/thesis credits that he/she intends to pursue in that semester/term. The registration process involves:

i) submitting a duly approved course programme to be followed in the semester/term,

ii) payment of fees for that semester/term and clearance of any outstanding dues, and

iii) signing the registration roll with the office of the Dean of Students Affairs.

2. A new entrant (to the postgraduate programme) who is awaiting the results of the qualifying examination, will be allowed to register "provisionally" on submission of a certificate from his/her institution certifying that he/she has appeared in the final qualifying examination (including all papers in theory, practical, project, oral, etc.). The candidate will submit attested copies of the certificates of having passed the qualifying examination by the last date for document submission as specified in the academic calendar (usually about 8 weeks from the date of registration), failing which the admission may be cancelled.

3. All students who are not on authorized leave must continue to register in the following semester/term till they submit their thesis. If, however, a student is likely to submit his/her thesis within two weeks from the commencement of classes, he/she need not register in that semester/term. This period will not be extended in any case.

4. Ph.D. students who have submitted their thesis and are waiting for the defence of the thesis will register for zero credits. They may, however, apply for leave from the Institute with permission to defend thesis while on leave.

5. In very special cases, students who have completed all the experimental work and analysis related to the thesis and are on sanctioned leave, the SPGC on the specific recommendations of the DPGC may allow submission of thesis without registration.

6. On the recommendation of the DPGC and the approval of the SPGC, the employees of IITK and QIP students registered for the Ph.D. programmes who have completed the course and thesis unit requirements and the prescribed residence period, may not register in the following semester, provided they have completed experimental work related to their thesis. However, they will be required to submit their thesis within the prescribed maximum period (specified in section 7.1).

7. If maternity leave (granted before the date of registration) extends beyond the date of late registration and expires before the end of seven weeks from the specified date of registration in a given semester the student will be allowed to register only for thesis credits. The number of credits that a student will be allowed to register will be worked out on a prorata basis. If the maternity leave extends beyond the date of registration during the summer term, registration may be waived.

8. A student in the external registration programme must complete the residence requirements (laid down in section 7.1) before the beginning of the semester in which he/she wants to register for

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thesis credits for the first time. The student in the external registration program is not required to register for the summer term.

9. The student in the external registration programme who has completed the residence requirement can register during the period starting from one week prior to the end of the previous semester till the late registration date provided he/she has been awarded grades for the previous semester/term.

4.1. Late Registration

1. If for any compelling reason like illness, a student is unable to register on the day of registration, he/she will be allowed to register on the day of late registration specified in the academic calendar (which is about one week from the date of registration). Any student registering late will be required to pay the specified late registration fee. No late registration is permitted for the summer term (section 4.4).

2. In exceptional cases, the SPGC on the recommendation of the DPGC may consider registration beyond the date of late registration. In such a case, the student will be allowed to register for thesis credits only.

4.2. Academic Advising

1. A student will be advised in the selection of courses by the registration adviser appointed by the DPGC of the concerned department. A student registering for thesis credits must have a thesis supervisor assigned to him/her.

2. A student may be permitted to repeat or substitute courses in which he/she has obtained D, E or F grades. Permission to repeat/substitute a course will be governed by the guidelines laid down in section 7.6. The request for repeat or substitution of a course must be given in writing duly endorsed by the DPGC to the Academic Section at the time of registration.

4.3. Semester Load Requirements

1. A semester load is defined as equivalent of 36 credits. Most courses carry 9 credits, while a few modular courses carry 6 or 11 credits (see annexure III for explanation). Thus, a student who has registered for a full semester load solely by course work is expected to attend 4 courses. For a well-merited case, the SPGC may permit a student to register for a maximum of 45 credits or a minimum of 26 credits.

2. The normal semester load for a part-time student is equivalent of 18 credits. For a well-merited case, the SPGC may permit a student to register for a maximum of 36 credits and a minimum of 17 credits during a regular semester.

3. A student in the external registration programme when registering for thesis research, to be carried out at his/her organization, can register for a maximum of 27 credits or a minimum of 9 credits during the regular semester.

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4. Notwithstanding the provisions of Para 1, a semester load is defined as equivalent of 54 credits for an MBA student. For a well-merited case, the SPGC may permit a student to register for a minimum of 36 credits.

4.4. Summer -Term Registration

A student is required to register in the summer term for up to a maximum of half the normal semester load.

4.5. Adding/Dropping of Courses and Withdrawing from Courses

1. Adding and dropping of courses after registration is permitted only if the student's request is endorsed by the instructor of the course that he/she is adding or dropping and is also endorsed by the Convener DPGC. The last dates of applying for adding and dropping of courses are specified in the academic calendar. No adding or dropping of courses is permitted in the summer term.

2. A student may be required to drop a course at any stage if it is determined that he/she does not fulfil the prerequisites for the course, or if a timetable clash exists which does not permit him/her to attend all the meetings of the course, or any rule in this manual which forbids him/her to take the course(s) that he/she has registered for.

3. The DPGC in consultation with the instructor and with the approval of the SPGC may allow a student at his/her request to withdraw from one or more courses during the semester, if he/she has been sick for considerable time and has submitted a certificate to the satisfaction of the DPGC, but the reduced load shall not be less than the minimum semester load (specified in section 4.3).

4. A student may withdraw from a maximum of one course, one month prior to the end semester exam on the recommendation of the DPGC and approval of the SPGC but the reduced load shall not be less than the minimum semester load (specified in section 4.3).

5. In the summer term, a student may withdraw from a course, two weeks prior to the end semester exam, on the recommendation of the DPGC and approval of the SPGC.

4.6. Change of Registration from M.Tech./M.Des/ Programme to Ph.D. Programme

A student registered for the M.Tech./M.Des programme may be allowed in the beginning of the second / third / fourth semester to change his/her registration to that of the Ph.D. programme in Engineering or Management on the recommendation of DPGC and with the approval of SPGC. Since this is a change of programme, Section 2.3 rules are not automatically applicable. Instead, one of the following two conditions must be satisfied:

(a) The student satisfies the eligibility criteria of Section 2.3.5 or 2.3.8 or 2.3.9 and has completed one/two/three semesters of the M.Tech./ M.Des. programme with a minimum of 12 credits through course work, and has a CPI of at least 7.0.

(b) The student does not satisfy the eligibility criteria of Section 2.3.5 or 2.3.8 or 2.3.9; however, he/she has completed two/three semesters of the M.Tech. programme as well as has completed course requirements of the M.Tech. programme with a CPI of at least 7.0. Such a change of

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registration shall be reported to the Senate. Students in part-time M.Tech. programme are not permitted to change over to part-time Ph.D. programme.

4.7. Change of Registration from Part-Time to Full-Time Programme

A student admitted to a part-time programme may be allowed to change his/her registration to full-time (regular) studies at the beginning of a semester upon the recommendation of the DPGC and with the approval of the SPGC. For the purpose of determining the maximum period of stay (specified in section 7.1), one-half of the period spent as a part-time student will be counted.

4.8. Change of Registration from Full-Time to Part-Time Ph.D. Programme

1. A student admitted to a full-time Ph.D. programme may be permitted to change to a part-time Ph.D. programme. A student requesting such a conversion must:

i) have completed the coursework, passed the comprehensive examination, given the "State of Art" seminar which is adjudged as satisfactory, and completed the residence requirements,

ii) get the request endorsed by the supervisor(s) and the DPGC,

iii) produce a "No Objection" Certificate from the Head of the institution/organisation, which he/she proposes to join.

2. Such conversion, if approved by the SPGC, will be subject to the following conditions:

i) The student must complete his/her thesis within 7 years counted from the date of his/her first registration in the programme,

ii) provision of conversion from full-time to part-time status can be availed of only once by the student during his/her programme, and

iii) the status of the student will be reviewed by the supervisor and the DPGC at least once every two semesters after the conversion, and his/her continuation on part-time status will be subject to his/her making satisfactory progress towards completing the Ph.D. thesis.

5 LEAVE RULES

Students may be granted leave under sections 5.1 and 5.2 on application to the Head of the Department concerned through the DPGC. Leave under sections 5.3 and 5.4 will be sanctioned by SPGC on the recommendation of DPGC. Applications must be submitted well in advance of the date of commencement of the leave requested. Leave for a period longer than that specified in sections 5.1, 5.2 and 5.3 may be sanctioned by SPGC on the recommendation of DPGC and it will entail loss of financial assistantship for the extended period.

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5.1. Vacation and Casual Leave

1. A postgraduate student may take a maximum of 30 days vacation leave in an academic year. This leave may be taken during the Institute’s vacation period (as defined in the academic calendar), or during the mid-semester recess period (up to maximum of 9 days)

2. In addition, a student may be allowed casual leave for up to 6 days per semester and 4 days during summer term subject to the condition that such leave will not be allowed for longer then 5 days at a time and 3 days at a time in regular semester and summer term respectively. The casual leave cannot be combined with any other kind of leave, and will not be carried over.

3. There will be no loss of financial assistantship for students going on vacation or casual leave. 5.2. Medical Leave

Leave on medical ground, duly supported by a medical certificate, may be granted to a student for up to 8 days per semester and 4 days during summer term. Un-availed leave may be carried over to the next semester up to a maximum of 8 days and 4 days during summer term. However, at a stretch, the medical leave shall not exceed 15 days during the semester and 8 days during the summer term. Such leave shall not entail any loss of financial assistantship.

5.3. Maternity Leave

A female student may be granted maternity leave for a maximum of 3 months. Leave up to 6 weeks can also be granted for miscarriage including medical termination of pregnancy, if supported by a proper medical certificate. Such leave can be combined with any other leave due and will not entail any loss of financial assistantship.

5.4. Semester Leave

Semester leave for up to a maximum of two semesters and a summer term for M. Tech., Ph.D. students may be sanctioned for bonafide reasons. Except for medical reasons, such leave would not normally be sanctioned before a student has completed his/her residence requirements and in no case before the student has spent two semesters and a summer term in the programme. However, on medical considerations such leave may be sanctioned after his/her stay of one semester. Leave for more than one semester at a time will not be granted. No semester leave will be granted to D.IIT. students.

5.5. Medical Certificate

If a student falls ill while on the IITK campus, the medical certificate must be obtained from the Institute's medical officer. If he/she falls ill outside the campus while on sanctioned leave, the medical certificate must be obtained from a registered medical practitioner.

5.6. Absence for a Minimum of 4 Weeks during the semester/2 Weeks during the summer term on Sanctioned Leave

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If a registered student is absent on sanctioned leave for a period of 4 weeks or more during a semester or 2 weeks during the summer term at a stretch, during the semester, SPGC may decide to convert the leave to a semester/term leave, or reduce the thesis credits (in blocks of 4 credits) appropriately, in case the student is registered only for thesis credits.

5.7 Absence without Sanctioned Leave

Absence without sanctioned leave (5.1-5.6) will entail loss of financial assistantship for the period of absence, and may result in the termination of the student's programme on the recommendation of the DPGC and approval of SPGC.

6. PERMISSION TO PROCEED FOR ACADEMIC WORK OUTSIDE IITK

6.1 PERMISSION TO PROCEED TO OTHER ACADEMIC INSTITUTIONS AS NON-DEGREE STUDENTS

In order to help-students broaden their horizons and enrich their cultural and academic experience, provision to proceed to other academic and research institutions in India or abroad as nondegree students is available. Rules and procedures to be followed for availing this provision are as follows:

i) An M.Tech. or a Ph.D. student who satisfies the minimum conditions laid down in para (ii) below may proceed to another academic institution in India or abroad with prior permission of the SPGC on the recommendation of the DPGC.

ii) Only those postgraduate students who have spent at least two semesters and have a CPI of at least 8.0 are eligible to proceed as non-degree students elsewhere.

iii) For permission to spend time as a non-degree student elsewhere, an eligible student will make an application to the SPGC through the DPGC, duly supported by a statement of purpose to undertake the proposed work and sufficient information about the department/institution for the purposes of para (iv) below.

iv) The DPGC will consider the student's application and will determine if the proposed programme of work is of such a nature that waiver for at least 18 credits per regular semester or 9 credits per summer term is possible. The SPGC may approve the application on the recommendation of the DPGC. In all such cases, the student will be informed about the requirements he/she must fulfill to apply for academic credit on his/her return.

v) Permission to proceed to an institution as a nondegree student does not imply that the student will automatically get any waiver from the academic requirements of IIT Kanpur.

vi) The student after completion of the work, will apply for waiver from requirements of his/her programme at IIT Kanpur supported by an official transcript of the grades obtained and whatever material the DPGC may require for the purpose given in para (vii) below.

vii) The concerned DPGC will evaluate the work done by the student and will make recommendations to the SPGC after determining by whatever means it deems fit, the equivalent IIT Kanpur courses/requirements for which the student may be given a waiver.

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viii) On the recommendation of the DPGC, the SPGC may allow the waiver for a maximum of 36 credits. Against each requirement for which a waiver is granted, a W would appear on the transcript with an explanatory note that W stands for waiver for work done at the Institution concerned. All such requirements will be deemed to carry zero weight for SPI/CPI calculations.

ix) The minimum residence requirement for the students who avail of this provision will remain unchanged for Ph.D. students but may be reduced by one semester for M. Tech students, provided they spend at least one semester of 16 weeks duration or two quarters of at least 11 weeks duration each as non-degree students elsewhere with prior permission.

x) Those students who are selected by the Institute using a Senate-prescribed procedure to proceed on any institutional exchange programme, except for the students going under the DAAD fellowship programme, will also have to go through the procedure and rules for the transfer of credits as outlined in paras (vi), (vii), (viii) and (ix) above.

6.2 PERMISSION TO PROCEED FOR ACADEMIC ACTIVITIES

The PG students can be permitted to proceed for academic activities outside IITK to carry out field work, library work, computational work, experimental work, and Lab works, and also to attend conference, courses and to undertake other research work etc. as recommended by the department. Permission for a duration upto 30 days be sanctioned by the department with an intimation to SPGC and more than 30 days by the Chairperson- SPGC on the recommendation of the Department.

7 ACADEMIC REQUIREMENTS

7.1. Minimum Residence, Maximum Duration and Academic Requirements

The following table lists the minimum residence and maximum duration allowed in the programme, and credits requirements for graduation in the various programmes:

"Course Work" includes only postgraduate course credits unless otherwise stated. To satisfy the "Minimum Residence" requirements, registration must be over consecutive semesters; exception will be made only if the student is on authorized leave. "Maximum Duration" is counted from the student's first registration date. SPI/CPI will be calculated on the basis of all postgraduate courses taken by the student.

Programme

Minimum Total Credits

Credits Through Course Work (Minimum)

Credits

Through

Research

(Minimum)

Minimum Number of courses

Minimum Residence

Maximum Duration

DIIT

2 Sem3

3 Sem5

M. Tech./ M.Des

144

541

4 Sem

4 Years5

MBA

216

4 Sem

3 Years

Ph.D (Engineering) students with B.Tech., M.Sc.

216

082

6 Sem4

7 Years

Ph.D (BSBE) students with B.Tech., M.Sc, B.Pharm, or M.B.B.S

216

162

062

6 Sem4

7 Years

Ph.D (Engineering /

144

042

4 Sem4

6 Years5

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Management) students with M.Tech., M.Pharm, or M.D.

Ph.D (Management) students with MBA (with M.Sc., M.A., B.Tech.)

144

042

4 Sem4

6 Years5

Ph.D (Management) students with MBA (with B.A., B.Sc.)

180

062

5 Sem

6 Years5

Ph.D (Management) students with B.Tech., M.Sc., M.A., or M.Com

216

082

6 Sem4

7 Years

Ph.D (Sciences / HSS) students with M.Sc., M.A., M.Phil

180

062

5 Sem

6 Years5

Ph.D (Sciences / HSS) students with B.Tech.

216

082

6 Sem

7 Years

Ph.D in Design

180

042

4 Sem4

6 Years5

1. May include one undergraduate course (permitted by the DPGC).

2. May register for undergraduate courses as a special case: these courses will be deemed to have zero credits and will be awarded an S/X grade. A student may take additional post graduate courses and will be awarded S/X grades unless the student requests for a course to be used for computing his/her CPI at the time of registration.

3. Excludes summer term.

4. Students in the External Registration Programme will be required to stay on the campus at least as long it takes to

(i) complete the required course work and pass the comprehensive examination and (ii) get a written proposal (prepared

in consultation with his/her supervisor and co-supervisor) outlining the work proposed to be done for his/her thesis.

5. Add an additional year in case of part-time/external students.

6. Department may specify minimum credits through courses over and above given in table 7.1. You may refer to Appendix IV.

A department may prescribe, with prior approval of the SPGC, additional credits of courses/thesis over and above the minimum specified in the above table.

7.2. Extension of Programme

1. No student who has completed the prescribed maximum duration in the programme shall be allowed to register in the subsequent semester unless he/she has been granted extension of the programme by the Senate on the recommendations of the DPGC and the SPGC.

2. However, those Ph.D. students who have submitted their theses and are waiting for the defence will be treated automatically as registered unless they apply for leave.

7.3. Audit Courses

The students are permitted to audit courses, but such courses shall not be shown either on the registration form or on the grade transcript.

7.4. Advance Standing at IITK

On the recommendation of the DPGC and approval of the SPGC, a student admitted to a postgraduate programme after partial completion of such or similar programme elsewhere may be

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granted an exemption up to 50 percent of the minimum course credits requirements. A Ph.D. student who has completed the twoyear M.Sc. programme at this institute can transfer a maximum of 18 postgraduate course credits earned during the M.Sc. programme towards fulfillment of his/her course requirement for the Ph.D. programme on the recommendation of the DPGC and approval of the SPGC, provided these credits were in excess of the minimum requirement for earning the M.Sc. degree. Further a student granted advanced standing at IITK may get an exemption of one semester from the residence requirement on the recommendation of the DPGC and approval of the SPGC.

7.5. Residence Outside IITK

Students registered in the postgraduate programmes may count for residence and credit requirements, research or field work undertaken outside the institute under the supervision of the Institute supervisor(s), if facilities for such work are not available at this institute. Such cases must be recommended by the DPGC and approved by the SPGC before the student proceeds to the place of assignment. The D.IIT. students will not be allowed to count research undertaken outside the institute for residence and credit requirements.

7.6. Credits, Grades, Semester and Cumulative Performance Index

1. In each course a student is registered (except courses covered under footnote 2 of clause 7.1), he/she earns certain approved credits and is awarded a letter grade indicating his/her overall performance in that course. There are ten letter grades: A*, A, B, C, D, E, F, S, X and I. The correspondence between grades and points (on a 10-point scale)/rating is given below:

A*: 10 A: 10 B: 8 C: 6 D: 4 E: 2 F: 0 S: Satisfactory X: Unsatisfactory I: Incomplete

2. If a student does not complete all the requirements for a course for a genuine reason, the instructor may award grade I (Incomplete). An I grade must be converted by the instructor to a regular letter grade by the last date for such conversion specified in the Academic Calendar, failing which it is automatically converted to an F grade.

3. A student getting an E or a F grade in a course must either repeat it or substitute it by another course as suggested by DPGC.

4. A student getting a D grade in a course may be allowed to repeat it or substitute it by another course, provided:

i) his/her CPI is less than the prescribed minimum and the student is allowed to continue in the programme (as per provisions of section 7.7), or the repetition/substitution is for a maximum of one course in the programme such that it does not lead to any increase in the semester load, and

ii) he/she has completed all the courses as prescribed by the department

In case a course is repeated or substituted, the old grade will also appear on the transcript although it will not be taken into account while computing the CPI/SPI.

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5. Seminars will be graded as satisfactory (S) or unsatisfactory (X) and will carry zero credits.

6. A student earns 9 credits for each D.IIT, M.Tech., M.Des., Ph.D project/thesis unit he/she is registered for in a semester. The grade S or X will be awarded for project/thesis credits as follows:

At the end of the semester, the project/thesis supervisors(s) will assess the student’s progress towards the project/thesis work during the semester and will award the grade S for each unit if the work is satisfactory and a X for every unsatisfactory unit. Thus a student registered for 4 credits can get one of the following five combinations SSSS, SSSX, SSXX, SXXX, XXXX.

Format for the M.Tech./M.Des/Ph.D. thesis grades in student’s transcripts

Thesis Credits

Grading Options

4S, 3S1X, 2S2X, 1S3X, 4X

3S, 2S1X, 1S2X, 3X

2S, 1S1X, 2X

1S, 1X

0S, 0X

7. If a student is on leave for a part of the semester or submits his/her thesis in the middle of a semester, the SPGC may reduce his/her thesis/ project credits appropriately.

7.6.1. Computation of the Semester Performance Index (SPI) and Cumulative Performance Index (CPI)

The SPI is an indicator of the overall academic performance of a student in all the courses he/she has registered during a given semester. It is computed as follows: If the grades awarded to a student are G1, G2 etc in courses with corresponding credits C1, C2 etc, the SPI is given by

SPI = (C1G1 + C2 G2 + ...) / (C1 + C2 + ...)

In the above computation, courses with S and X grades are ignored. Similarly, the CPI indicates the cumulative academic performance in all the courses taken including those taken in the current semester.

7.7. Academic Performance Requirement

1. The minimum CPI requirement for continuing in the programme or for graduation is given below.

D.IIT./M.Tech./M.Des./MBA programme : 6.5.

Ph.D. programme : 7.0.

2. In the first semester in which the student registers, the minimum CPI (SPI) may be relaxed to 6.0 and the student may be allowed to continue in the following semester on the recommendations of the DPGC and with the approval of the SPGC. A warning will be issued.

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3. If a D.IIT. /M.Tech./M.Des./MBA student secures a CPI between 6.0 and 6.5 or a Ph.D. student secures a CPI between 6.5 and 7.0, he/she may be allowed to continue in the following semester on the recommendation of the DPGC and with the approval of the SPGC. A warning will be issued

4. A student will normally not be allowed to continue in the D.IIT./M.Tech./M.Des./MBA programme if

i) his/her CPI is below 6.0.

ii) his/her CPI is below 6.5 in two consecutive semesters (however, SPGC may consider continuation as per provisions of para 3).

iii) he/she obtains two Fs or two Es or one F and one E in the same or different courses.

iv) he/she accumulates three or more Xs towards thesis grades.

5. A student will normally not be allowed to continue in the Ph.D. programme if

i) his/her CPI is below 6.5 (below 6.0 in the case of first semester student).

ii) his/her CPI is below 7.0 in two consecutive semesters (however, SPGC may consider continuation as per provisions of para 3).

iii) he/she obtains two Fs or two Es or one F and one E in the same or different courses.

iv) he/she accumulates eight or more Xs towards thesis grades.

v) he/she accumulates six or more Xs towards thesis grades in two consecutive semesters.

vi) he/she secures Xs in all the thesis credits registered for in two consecutive semesters.

6. A warning will be issued to a Ph.D. student when he/she accumulates two or more Xs.

7. The DPGC will keep a watch on the progress of every student and whenever a student fails to meet the requirements, will intimate the SPGC. If a student's programme is terminated, the Head of the Department will issue the letter of termination.

7.8. Exit from Ph.D. in Engineering

A Ph.D. student in an engineering department may exit from the programme with an M.Tech. degree provided

(i) a request to this effect is made at least six months before the exit but not before the student has completed two-and-half years (excluding the period of sanctioned leave, if any) in the programme;

(ii) the request is approved by the Senate on the recommendations of DPGC and SPGC; and

(iii) the student has completed all the requirements of the M.Tech. degree (including a thesis).

8 COMPREHENSIVE EXAMINATION OF Ph.D. STUDENTS

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1. Students registered in the Ph.D. programme must pass a comprehensive examination designed to test the overall comprehension of the student in the various subjects. A student can appear in the comprehensive examination only after he/she has completed the course requirements and satisfied the minimum specified CPI requirement

2. Students admitted with B.Tech., M.Sc., M.A. or M.Phil. degrees or part-time students with M.Tech. or equivalent degrees may appear in the comprehensive examination earliest at the end of the second semester, but must pass it before the end of the fifth semester after their first registration. Students admitted with M.Tech. or equivalent degrees may appear in the comprehensive examination earliest at the end of the first semester, but must pass it before the end of the fourth semester after their first registration. The above time limits are exclusive of the period of sanctioned leave, if any.

3. The examination will be in oral form but may be supplemented with a written part.

4. The comprehensive examination board will consist of at least three but not more than five faculty members of the student's department/IDP plus one faculty member from outside the department/IDP (discipline, in the case of Humanities & Social Sciences). There may be two faculty members from outside the department/IDP (discipline, in the case of Humanities & Social Sciences) in case thesis supervisor is from outside the department/IDP (discipline, in the case of Humanities & Social Sciences). Constitution of the board will be proposed by the DPGC in consultation with the Head of the department/IDP and the thesis supervisor, if already assigned, and will be forwarded to the Chairperson, SPGC who will send it to the Chairman, Senate for approval. The thesis supervisor of the student, if already assigned, will be the convener of the board. In case no thesis supervisor is assigned, the Convener, DPGC will be the convener of the board.

5. A student will be considered to have passed the comprehensive examination if all except at the most one member of the board are satisfied with student's performance in the examination. The report of the comprehensive examination must be sent to the Chairperson, SPGC within 8 weeks of the date of approval of the board.

6. When a student has not passed the comprehensive examination in his/her first attempt, a second comprehensive examination will be conducted by the same board that was constituted earlier unless otherwise approved by the Chairman, Senate on the recommendation of the DPGC and the SPGC. A student will not be allowed to appear in the comprehensive examination more than twice. All such cases shall be brought to the notice of the Senate.

9 CANDIDACY FOR THE Ph.D. DEGREE

A student enrolled in the Ph.D. programme is formally admitted to the candidacy for the Ph.D. degree after he/she has completed the course requirements for the degree with at least the minimum required CPI, and has passed the comprehensive examination. Only such students who are admitted to the candidacy will be allowed to submit Ph.D. theses in accordance with the guidelines laid down in section 11.4.2.

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10 STATE OF ART SEMINAR

Every Ph.D. student admitted to the candidacy for the Ph.D. degree is required to give a general seminar in the Department covering the State of Art of the area of research. This seminar must be given within six months of passing the comprehensive examination. A report of satisfactory completion of this requirement is to be communicated to Chairperson, SPGC by the thesis supervisor through the Convener, DPGC.

11 THESIS AND THESIS EXAMINATION

11.1. Appointment of Thesis Supervisors of D.IIT., M Tech., M. Des. and Ph.D. Students

1. A student shall not normally have more than two supervisors at any given time.

2. Thesis supervisor(s) of a student will normally be appointed from amongst the faculty members at IIT Kanpur using modalities decided by the departments.

3. Under exceptional circumstances, other employees of IITK with the rank of senior scientific officer and above can be appointed as co-supervisors of Ph.D. students. The recommendation of a peer group (appointed by the Head of the Department to which the student belongs) regarding the merit and qualifications of being considered as co-supervisor should be sent to the SPGC through the DPGC for approval. One such co-supervisor can be appointed to only one student at a time.

4. In exceptional cases a student can have a co-supervisor from outside the institute on the recommendation of the DPGC and the SPGC and approval of the Chairman, Senate.

5. The appointment or change of supervisor(s) will be communicated to the SPGC by the DPGC. No change/addition of supervisor(s) is allowed after the thesis has been submitted.

6. In case there has been a change/addition in the supervisor(s), the M.Tech./M.Des. thesis will not be submitted earlier than three months and the Ph.D. thesis will not be submitted earlier then six months from the date of such change.

7. If a student’s supervisor proceeds on long leave for more than one year in case of Ph.D. students, and on leave for more than three months in case of M.Tech./M.Des. students, the DPGC shall appoint a supervisor or a co-supervisor in consultation with the supervisor and the student. In such a case the number of supervisors may be more than two if an external supervisor already exists. If a student’s supervisor proceeds on leave for not more than one year in case of Ph.D. students*, and not more than three months in case of M.Tech./M.Des. students, the DPGC may appoint a programme coordinator to take care of various formalities.

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*Note: Depending on the stage of the thesis of the student, the Comprehensive examination can be conducted by the DPGC Convener or the program coordinator. However, the SOTA, Open seminar, Thesis submission & defense etc. might get postponed till the supervisor’s return. However, if the student has a co-supervisor, these things can be taken care of.

8. If all research work and related analysis is complete except writing of the thesis, and the supervisor proposes to go on leave, the DPGC may appoint a programme coordinator, to take care of the formalities, such as providing the list of examiners, conducting the oral examination, etc.

9. In case a supervisor resigns/retires or otherwise ceases to be a faculty member of the institute the DPGC will appoint a new supervisor or co-supervisor.

11.2. Open Seminar of Ph.D. Students

Before proceeding to finalize the thesis, each Ph.D. student must deliver a seminar open to faculty and students in which the research work will be presented to obtain comments and criticism which may be incorporated in his/her thesis. A notice of the seminar must be displayed at least four days in advance. A thesis can be submitted only after the satisfactory fulfillment of this requirement. The intimation that the open seminar has been given should be communicated by the thesis supervisor through the Convener, DPGC to the Academic Section.

The maximum time duration for the submission of the thesis after the delivery of the open seminar will be six months. In exceptional circumstances, the students may seek an extension up to three months with proper justification. However, if the thesis is not submitted within the desired period including the extension, the open seminar already delivered will stand cancelled and the student will be required to give a fresh open seminar before he/she submits his/her thesis.

11.3. Constitution of Committee/Board for Thesis and Oral Examination 11.3.1. M Tech/M Des Thesis and D.IIT. Project Oral Examination Committee

1. The thesis/project will be examined by an oral examination committee formed by the thesis supervisor(s)/programme coordinator in consultation with the Head of the Department/IDP. It must be recommended by the DPGC and approved by the Chairperson, SPGC.

2. The committee shall consist of the thesis supervisor(s)/ programme coordinator and at least two but not more than four other members, one of who should belong to a department/IDP other than the student's department/IDP. The thesis supervisor/programme coordinator will act as the Convener of the Committee.

11.3.2. Ph.D. Thesis Board

1. The thesis board shall consist of three members in addition to the thesis supervisor(s) approved by the Chairman, Senate. Unless some special circumstances make it impractical, at least two members of the thesis board (other than the supervisor(s)) must be from outside the Institute and at least one of these two must be from within the country.

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2. The procedure for constituting the thesis board is given below.

i) The thesis board may be proposed at the most 4 weeks before the submission of the thesis.

ii) The thesis supervisor(s)/programme coordinator, in consultation with the Head of the Department shall propose a list of examiners (in addition to the thesis supervisor(s)/programme coordinator) consisting of at least three extra names over and above the required number of members for the thesis board. This list along with adequate number of copies of synopsis (prepared according to the format prescribed in Specification and Information Regarding the Preparation of Thesis) shall be forwarded by the DPGC to Chairperson, SPGC.

iii) The Chairman, Senate in consultation with Chairperson, SPGC will select the members of the thesis board from this list. If considered necessary, the Chairman, Senate may require additional names of experts to be submitted. In case Chairman, Senate is the supervisor/co-supervisor of the student concerned, Chairperson, SPGC will select the members of the thesis board. In case Chairperson, SPGC is the supervisor of the student concerned, Chairman, Senate may consult Chairperson, SUGC for the selection of the thesis board.

iv) The names of the members of the thesis board shall be kept confidential till successful completion of the oral examination. However, on completion of Ph.D. thesis evaluation (as detailed in section 11.5.2), the Academic Section will send to the thesis supervisor(s) the names of the institute faculty who are the members of the thesis board, as well as that member who is from outside the institute but is from within the country so that these names can be included in the proposed list of the members of oral board.

11.3.3. Ph.D. Oral Board

1. The oral board shall consist of four members in addition to the thesis supervisor(s)/programme coordinator. Of the four, three shall be from among the faculty members of the institute (including those, if any, on the thesis board) and one shall be from among the members of the thesis board within the country but outside the institute. Of the three members from IIT Kanpur at least one shall be from a department or IDP (or discipline in case of Humanities and Social Sciences) which is different from the student's own.

2. The thesis supervisor(s)/programme coordinator in consultation with the Head of the Department shall propose the constitution of the oral board (forwarded through the Convener, DPGC) to the Chairperson, SPGC who will forward it to the Chairman, Senate for approval.

11.4. Submission of Thesis/Project

11.4.1. M.Tech./M.Des. Thesis / D.IIT. Project

After the M.Tech./M.Des./D.IIT. oral examination committee has been constituted, unbound copies of the thesis/project report one for each examiner of the oral board, prepared according to the format prescribed in the pamphlet entitled: Specification and Information Regarding the Preparation of Thesis, will be submitted at least a week before the probable date of oral examination. The Academic Section will arrange to send the copies of the thesis to the examiners. Two copies of the abstract (approximately 250 words) should also be submitted along with the thesis/project report.

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11.4.2. Ph.D. Thesis

Ph.D. thesis can be submitted only after the thesis board has been duly approved and the intimation of the satisfactory completion of the open seminar has been received. Bound copies of the Ph.D. thesis (prepared according to the format prescribed in the pamphlet entitled: Specification and Information Regarding the Preparation of Thesis) one for each examiner of the thesis board plus an additional adequate number of copies for the oral board, will be submitted.

11.5. Processing of Project/Thesis

11.5.1. M Tech/M.Des./D.IIT. Oral Examination

1. The oral examination will be conducted within four months from the date of submission of the thesis/project. If a student does not appear in the oral examination within this time period, his/her programme would be deemed to have been terminated. Request for reinstatement in the programme by such a student should be addressed to the Chairman, Senate. The request may be considered by the Senate and in case the Senate grants the request it shall specify the requirements that the student must fulfill for the award of the degree.

2. The thesis supervisor/programme coordinator will intimate the date of the oral examination to the Academic Section.

3. The oral examination committee will evaluate the thesis/project, conduct the oral examination and send a report of the examination to the Chairperson, SPGC through the Convener, DPGC.

4. A thesis will be considered to have been accepted if all members of the oral examination committee recommend its acceptance. A thesis, which is not accepted, will be considered to have been rejected.

5. If a thesis is rejected along with a recommendation for resubmission after incorporating any modification/correction suggested by the oral examination committee, oral examination of the resubmitted thesis/project will be conducted by the original committee unless a different committee is approved by the Chairperson, SPGC. If the re-submitted thesis is rejected, the matter will be reported to the Senate for appropriate action.

6. Acceptance of thesis/project will be reported to the Senate for approval. 11.5.2. Ph.D. Thesis Evaluation by the Thesis Board

1. After the synopsis has been submitted and the thesis board constituted, the Dean of Academic Affairs will send a letter by e-mail/fax to each member of the thesis board enclosing a copy of the synopsis and requesting him/her to serve as an examiner for the thesis. If the examiner refuses or no response is received for four weeks (with a reminder being sent after two weeks), then steps will be taken to appoint another examiner.

2. On receipt of the acceptance of examinership a copy of the thesis along with a thesis evaluation form for the examiner's report will be sent to each examiner.

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3. In case Dean of Academic Affairs is the supervisor of the student concerned, above processing (detailed in paras 1 and 2) will be done by the Dean of Faculty Affairs.

4. When an examiner's report is received, the Chairperson, SPGC will place it in one of the following three categories:

i) Category I: If an examiner suggests corrections regarding punctuation, grammar, spelling or language, the supervisor(s) can use their discretion regarding incorporation of such suggestions.

ii) Category II: If an examiner points out typographical errors other than those in (i) above, or minor technical mistakes, raises some queries or suggests modifications but does not imply that the acceptance of the thesis is subject to removal of these defects to the examiner's satisfaction, the supervisor will communicate to the Chairperson, SPGC the student's response to the above and the same will be incorporated in the thesis to the satisfaction of the oral board, and examiner(s) concerned should be informed of the changes made on the basis of his/her suggestions.

iii) Category III: If an examiner outright rejects the thesis or raises technical points or suggests modifications which must be answered/carried out to the examiner's satisfaction before the thesis is accepted, the supervisor will communicate to the Chairperson, SPGC the changes made in the thesis, if any, in response to the examiner's comments along with an explanatory note which will be sent to the examiner with a request to respond within six weeks; if the examiner's response is not received within this period, a reminder will be sent and if no reply is received within six weeks time, further action will be initiated.

5. Copies of the categorized report (without the identity of the examiner) will be sent to the thesis supervisor(s) and the Head of the Department.

6. On completion of the process detailed above, the Chairperson, SPGC will intimate the supervisor the concurrence of the Chairman, Senate, if given, to initiate the constitution of the oral board. This concurrence of Chairman, Senate will be given if all the examiners recommend acceptance of the thesis. If one of the examiners rejects the thesis, the matter will be referred to Chairman, Senate for deciding further course of action. If two or more examiners reject the thesis, the thesis will be rejected.

7. In case Chairperson, SPGC is the supervisor of the student concerned, the above processing (detailed in paras 4, 5 and 6) will be done by Chairperson, SUGC.

11.5.3. Ph.D. Oral Examination

1. The Ph.D. oral examination will be an open examination. The supervisor(s)/programme coordinator will be the convener of the oral board and will fix the date of the oral examination and intimate the date to the Academic Section.

2. If a member of the oral board communicates his/her inability to be present in advance or fails to be present on the specified date and time, the Chairman, Senate may appoint a substitute in consultation with the thesis supervisor(s)/programme coordinator, Head of the department and Chairperson, SPGC.

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3. Each member of the oral board will be given a copy of the thesis along with the entire technical correspondence with the thesis examiners at least one week before the date of the oral examination.

4. The oral board shall

i) examine the thesis reports,

ii) examine if necessary modifications suggested by the thesis examiners have been incorporated,

iii) elicit the candidate's replies to the questions raised by the thesis examiners,

iv) authenticate the work as the student's own,

v) judge if the presentation of the work by the student and the answers to the questions asked have been satisfactory, and

vi) give a report of the examination, which will be communicated by the supervisor(s)/programme coordinator to the Chairperson, SPGC through the Convener, DPGC.

5. If all, except at most one member, declare the student as passed, the student shall be deemed to have passed.

6. If a candidate has not passed, the oral board will specify whether

i) the candidate may be given another chance to appear in the oral examination and will specify the approximate date for re-examination. The original oral board will conduct the reexamination unless a different oral board is approved by the Chairman, Senate. In the reexamination, the board will declare whether the student has passed or failed as per the criteria laid down above but will not recommend holding a third oral examination.

ii) the candidate is declared to have failed.

7. On receipt of the report that the student has passed the oral examination, the Chairperson, SPGC will recommend to the Senate for award of the Ph.D. degree.

8. If the candidate has failed, the matter will be brought to the attention of the Senate for further action.

12 GRADUATION REQUIREMENTS

A student shall be deemed to have completed the graduation requirements., if the student has

i) passed all the prescribed courses,

ii) attained the minimum required CPI,

iii) satisfied the minimum academic and residence requirements,.

iv) satisfied all the requirements specified by the concerned department, if any,

v) satisfied all the requirements specified by the Senate and the Ordinances..

In addition, the student should have paid all the dues to the Institute and, should have no pending case of indiscipline.

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ANNEXURE I

POSTGRADUATE COMMITTEES

The Senate Postgraduate Committee (SPGC) shall consist of one representative from each of the academic departments/interdisciplinary programmes who must be the Convener of DPGC and six additional members of whom one shall be the outgoing Chairperson (if not otherwise a member) and four shall be students, two each from Ph.D. and M.Tech. programmes and nominated for the purpose by the Students Senate.

The Postgraduate Committee shall have jurisdiction in the following matters concerning the postgraduate programme of the Institute: the formal approval of new courses of instruction, modification of courses already approved, the credit value of courses, the formal approval of admission of postgraduate students, the admission of qualified students to candidacy for degrees, the rules governing the form of presentation and disposal of theses, the conduct of oral and written examinations and in such other related matters as may be referred to it by the Senate.

The functions of the Committee shall consist primarily of general policy determination, coordination and review, but the Senate shall retain the power of final review. In the discharge of its responsibilities the committee shall make full use of the appraisals and recommendations of the various academic departments concerned. This committee shall be assisted by the Departmental Postgraduate Committees.

Each department/interdisciplinary programme (approved by the Senate) shall have a Departmental Postgraduate Committee consisting of a Convener to be nominated by the Head of Department in consultation with the faculty of the department, the Head of the Department and a minimum of four and a maximum of eight faculty members to be chosen by the Department, and two students, one from the Ph D and other from the M. Tech programme. If an M.Tech. programme does not exist both shall be from the Ph.D. programme. The student members shall be chosen by the postgraduate students of the department for a period of one year.

The student members shall not participate when the cases of academic evaluation of individual students are being considered, although the students' opinion might be sought prior to taking any decision.

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ANNEXURE II

RESERVATION OF SEATS

SC/ST Category

In each programme 15 percent seats are reserved for the Scheduled Castes (SC) candidates and 7.5 percent seats are reserved for the Scheduled Tribes (ST) candidates. Such candidates are required to produce at the time of admission an original certificate in the prescribed format (see Annexure II.1).

OBC Category

Board of Governors has approved 27 percent reservation for Other Backward Classes (OBCs) candidates (other than those covered under the category of “creamy layer”) in a phased manner commencing from the academic year 2008-09 (ref: BOG 2008.3.16). The reservation is applicable to those OBC candidates who satisfy the following eligibility requirements.

1. They belong to one of the castes listed against the state of their residence on the web-site of National Commission of Backward Classes (NCBC), i.e., they belong to the central list of OBC (visit the URL: http://ncbc.nic.in/backward-classes/index.html).

2. They are excluded from the Creamy Layer as provided in the OM No. 36012/22/93-(SCT) dated 8th September, 1993 of the Ministry of Personnel, Public Grievance and Pension, Department of Personnel and Training as amended by that department vide OM No. 36033/3/2004-Estt.(Res) dated 9th March, 2004 and any other notification that may take place before the admission. More details on the definition of Creamy Layer are available at the following links: http://ncbc.nic.in/html/creamylayer.html http://persmin.gov.in/WriteData/WMS/ScanDocument/36033 5 2004 01April2005.htm

To ensure that the benefit of reservation is given only to the OBCs excluded from the Creamy Layer (as per the above-mentioned Office Memorandum), candidates belonging to the OBC category are required to produce at the time of admission an original certificate in the prescribed format (see Annexure II.2).

PD Category

In each category of seats (unreserved and reserved), 3 percent seats are reserved for the Physically Disabled (PD) candidates and are to be filled up as per the admission procedure laid down for that category. In case one or more of the seats reserved for the PD candidates in a category remain vacant, those are permitted to be filled up by the other candidates belonging to the same category.

Annexure II.3 gives the break-up of the seats in different categories as approved by the Senate for the academic year 2010-2011.

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ANNEXURE II.1

(Format of SC/ST Certificate)

FORM OF THE CERTIFICATE TO BE PRODUCED BY SCHEDULED CASTES AND

SCHEDULED TRIBES CANDIDATES IN SUPPORT OF HIS/HER CLAIM

1. This is to certify that Shri/Shrimati/Kumari* son/daughter* of of

Village/Town* in District/Division* of State/Union Territory* _____ belongs

to the Caste/Tribe* which is recognised as a Scheduled Caste/Scheduled Tribe* under:

The Constitution (Scheduled Castes) Order, 1950

*The Constitution (Scheduled Tribes) Order, 1950

*The Constitution (Scheduled Castes) (Union Territories) Order, 1951

*The Constitution (Scheduled Tribes) (Union Territories) Order, 1951

[As amended by the Scheduled Castes and Scheduled Tribes Lists (Modification Order) 1956, the Bombay Reorganisation Act, 1960, the Punjab Reorganisation Act, 1966, the State of Himachal Pradesh Act, 1970, the North Eastern Areas (Reorganisation) Act, 1971, the Scheduled Castes and Scheduled Tribes Orders, (Amendment) Act, 1976 and the Scheduled Castes and Scheduled Tribes Orders (Amendment) Act, 2002].

*The Constitution (Jammu & Kashmir) Scheduled Castes Order, 1956;

*The Constitution (Andaman and Nicobar Islands) Scheduled Tribes Order, 1959, as amended by

the Scheduled Castes and Scheduled Tribes Order (Amendment) Act, 1976;

*The Constitution (Dadara and Nagar Haveli) Scheduled Castes, Order, 1962;

*The Constitution (Dadara and Nagar Haveli) Scheduled Tribes, Order, 1962;

*The Constitution (Pondicherry) Scheduled Castes Order, 1964;

*The Constitution (Uttar Pradesh) Scheduled Tribes Order, 1967;

*The Constitution (Goa, Daman and Diu) Scheduled Castes Order, 1968;

*The Constitution (Goa, Daman and Diu) Scheduled Tribes Order, 1968;

*The Constitution (Nagaland) Scheduled Tribes Order, 1970;

*The Constitution (Sikkim) Scheduled Castes Order, 1978;

*The Constitution (Sikkim) Scheduled Tribes Order, 1978;

*The Constitution (Jammu and Kashmir) Scheduled Tribes Order, 1989;

*The Constitution (Scheduled Castes) Orders (Amendment) Act, 1990;

*The Constitution (Scheduled Tribes) Order (Amendment) Act, 1991;

*The Constitution (Scheduled Tribes) Order (Second Amendment) Act, 1991;

2. This certificate is issued on the basis of the Scheduled Castes/Scheduled Tribes* Certificate issued to

Shri/Shrimati* father/mother* of Shri/Shrimati/Kumari*

of Village/Town* in District/Division* of the State/Union Territory*

who belong to the Caste/Tribe* which is recognized as a Scheduled Caste/Scheduled Tribe*

in the State/Union Territory* issued by the dated _____.

3. Shri/Shrimati/Kumari* and/or* his/her* family ordinarily reside(s)** in

village/town* of District/Division* of the State/Union Territory* of .

Signature

Designation

(with seal of Office)

Place State/Union Territory*

Date

*Please delete the word(s) which are not applicable.

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IMPORTANT NOTES

1. The term “ordinarily reside(s)** used here will have the same meaning as in Section 20 of the Representation of the People Act, 1950.

2. Officers competent to issue Caste/Tribe certificates:

(i) District Magistrate/Additional District Magistrate/Collector/Deputy Commissioner/Additional Deputy Commissioner/Deputy Collector/1st Class Stipendiary Magistrate/City Magistrate/Sub-Divisional Magistrate/Taluka Magistrate/Executive Magistrate/Extra Assistant Commissioner.

(ii) Chief Presidency Magistrate/Additional Chief Presidency Magistrate/Presidency Magistrate.

(iii) Revenue Officers not below the rank of Tehsildar.

(iv) Sub-Divisional Officer of the area where the candidate and/or his family normally reside(s).

(v) Administrator/Secretary to Administrator/Development Officer (Lakshdweep Island).

3. Certificate issued by any other authority will be rejected.

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ANNEXURE II.2

(Format of OBC Certificate) Effective 2008-2009

FORM OF CERTIFICATE TO BE PRODUCED BY OTHER BACKWARD CLASSES APPLYING FOR ADMISSION TO CENTRAL EDUCATION INSTITUTES UNDER THE GOVERNMENT OF INDIA

This is to certify that Shri/Smt./Kum. Son/Daughter of Shri/Smt.

of Village/Town

District/Division in the State belongs to the

Community which is recognized as a backward class under:

(i) Resolution No. 12011/68/93-BCC(C) dated 10/09/93 published in the Gazette of India Extraordinary Part I Section I No. 186 dated 13/09/93.

(ii) Resolution No. 12011/9/94-BCC dated 19/10/94 published in the Gazette of India Extraordinary Part I Section I No. 163 dated 20/10/94.

(iii) Resolution No. 12011/7/95-BCC dated 24/05/95 published in the Gazette of India Extraordinary Part I Section I No. 88 dated 25/05/95.

(iv) Resolution No. 12011/96/94-BCC dated 9/03/96.

(v) Resolution No. 12011/44/96-BCC dated 6/12/96 published in the Gazette of India Extraordinary Part I Section I No. 210 dated 11/12/96.

(vi) Resolution No. 12011/13/97-BCC dated 03/12/97.

(vii) Resolution No. 12011/99/94-BCC dated 11/12/97.

(viii) Resolution No. 12011/68/98-BCC dated 27/10/99.

(ix) Resolution No. 12011/88/98-BCC dated 6/12/99 published in the Gazette of India Extraordinary Part I Section I No. 270 dated 06/12/99.

(x) Resolution No. 12011/36/99-BCC dated 04/04/2000 published in the Gazette of India Extraordinary Part I Section I No. 71 dated 04/04/2000.

(xi) Resolution No. 12011/44/99-BCC dated 21/09/2000 published in the Gazette of India Extraordinary Part I Section I No. 210 dated 21/09/2000.

(xii) Resolution No. 12015/9/2000-BCC dated 06/09/2001.

(xiii) Resolution No. 12011/1/2001-BCC dated 19/06/2003.

(xiv) Resolution No. 12011/4/2002-BCC dated 13/01/2004.

(xv) Resolution No. 12011/9/2004-BCC dated 16/01/2006 published in the Gazette of India Extraordinary Part I Section I No. 210 dated 16/01/2006.

Shri/Smt./Kum. and/or his family ordinarily reside(s) in the

District/Division of State. This is also to

certify that he/she does not belong to the persons/sections (Creamy Layer) mentioned in Column 3 of the Schedule to the Government of India, Department of Personnel & Training O.M. No. 36012/22/93-Estt.(SCT) dated 08/09/93 which is modified vide OM No. 36033/3/2004 Estt.(Res.) dated 09/03/2004.

Dated:

District Magistrate/

Deputy Commissioner, etc.

Seal

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NOTE:

(a) The term ‘Ordinarily’ used here will have the same meaning as in Section 20 of the Representation of the People Act, 1950.

(b) The authorities competent to issue Caste Certificates are indicated below:

(i) District Magistrate / Additional Magistrate / Collector / Deputy Commissioner / Additional Deputy Commissioner / Deputy Collector / Ist Class Stipendiary Magistrate / Sub-Divisional magistrate / Taluka Magistrate / Executive Magistrate / Extra Assistant Commissioner (not below the rank of Ist Class Stipendiary Magistrate).

(ii) Chief Presidency Magistrate / Additional Chief Presidency Magistrate / Presidency Magistrate.

(iii) Revenue Officer not below the rank of Tehsildar’ and

(iv) Sub-Divisional Officer of the area where the candidate and / or his family resides. -x-x-x-x-x-x

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ANNEXURE II.3

BREAK-UP OF SEATS IN DIFFERENT CATEGORIES FOR THE ACADEMIC YEAR

2014-2015

PhD

Programs

OBC

Total

CHE

MSE

CSE

MSP

IME

NET

PSE

BSBE

CHM

MTH

PHY

HSS

DES

Total

287

155

571

M.Tech./M.Des./MBA

Programs

OBC

Total

CHE

142

120

MSE

CSE

MSP

IME (MT)

IME (MBA)

NET

PSE

EEM

DES (MDes)

BSBE

Total

419

125

224

831

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ANNEXURE III

POSTGRADUATE COURSES

Course Number

Each postgraduate course will have a unique number consisting of two parts. The first part will consist of a code to identify the department/programme which will be of 1 to 3 characters of English alphabet and identical for all courses of a particular Department/Programme. In the case of Humanities and Social Sciences separate identification codes will be used for each of the approved disciplines. The second part will be a three-digit number beginning with 6, 7, 8 or 9. To ensure active participation of the identified department to run a IDP, the nomenclature of the individual courses offered under the programme shall reflect the identity of the department offering the course.

Course Credits

The credits of postgraduate courses will be arrived at as per the table given below. No course will have credits less than 3 or more than 5.

Contact hours/week for a course Credits

Two lecture hours 5/6

Three lecture hours 9

Two lecture hours + one tutorial hour 9

Two lecture hours + one lab session 9

Three lecture hours + one tutorial hour 11

Three lecture hours + one lab session 11 Three lecture hours + one tutorial hour + one lab session 11 Approval of a New Course

All postgraduate courses require the approval of the SPGC before being offered. A course should be proposed by an interested faculty member in a prescribed format at least six weeks before the preregistration dates of the semester in which it is proposed to be offered for the first time. The Convenor, DPGC should e-mail the proposal to all faculty members to elicit their comments and suggestions, and should send a hard copy of the proposal to the Chairperson, SPGC. A minimum period of three weeks should be allowed for such comments to be received. After this period, the

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Convenor in consultation with the proposer of the course will write to the Chairperson, SPGC for approval with the proposal in its final form after taking into account all comments/suggestions and making suitable modifications. The comments/suggestions received should be enclosed with the letter to the Chairperson, SPGC. If over 20 percent of the contents have been modified, the proposal should be re-circulated to all faculty members. At least one week should be allowed for the receipt of comments on the revised course proposal.

Discontinuation of Course

Any postgraduate course, which is not offered for three consecutive years, may be discontinued. The Academic Section will inform the department concerned about such course(s) and if a recommendation to keep the course in the list of approved courses is not received within one month, the course will be taken off from the list of approved courses. No course will be permitted to remain in the list of approved courses for over five years without being offered. The Head of the Department or Convener, DPGC can request in writing to the Chairperson, SPGC to remove a course from the list of approved courses for the department.

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T-7 FINGERPRINT TERMINAL

HARDWARE USER'S MANUAL Rev 1.1

Table of Contents

1. INTRODUCTION

1.1 SUPPLIED PART LIST

1.2 ABOUT PEGASUS T-7

1.3 HARDWARE SPECIFICATION

2. PRODUCT OVERVIEW

2.1 COMMUNICATION

2.2 POWER MANAGEMENT

2.3 KEYPAD FUNCTIONS

2.4 USER MANAGEMENT

2.5 USER ENROLLMENT

2.6 HARDWARE DESCRIPTION

3. BASIC SETTINGS

3.1 SYSTEM SETTINGS

3.1.1 TOTAL NUMBER OF ADMINISTRATORS

3.1.2 MACHINE NUMBER

3.1.3 BAUD RATE

3.1.4 LANGUAGE

3.1.5 AUTO POWER OFF

3.1.6 VOICE INDICATION

3.1.7 RESTORE FACTORY DEFAULT

3.2 EVENT SETTINGS

3.2.1 ADMINISTRATIVE EVENT FULL WARNING

3.2.2 ATTENDANCE EVENT FULL WARNING

3.2.3 VAID ATTENDANCE TIME INTERVAL

3.3 MENU HIERARCHY

3.3.1 FIRST LEVEL MENU ITEMS

3.3.2 SECOND LEVEL MENU ITEMS

3.3.3 “SETTING” CONFIGURES THE MAJOR FUNCTION OF T-7

3.4 MACHINE OPERATION FOR ADMINISTRATOR

3.4.1 TO SHOW THE FIRST LEVEL MENU

3.4.2 MACHINE MANAGERMENT

3.4.3 PASSWORD REGISTRATION

3.4.4 ID CARD REGISTRATION

(OPTIONAL FUNCTION FOR SPECIAL MODEL)

3.4.5 DELETE USER

3.5 ATTENDANCE LOG AND SYSTEM LOG MANAGEMENT

3.5.1 QUERY ATTENDANCE LOG

3.5.2 QUERY THE SYSTEM LOG

3.5.3 DELETE ALL RECORD

3.5.4 SETTINGS

3.5.5 MACHINE ID

3.5.6 MANAGERS

3.5.7 LANGUAGE

3.5.8 VOICE INDICATION

3.5.9 LCD CONTRAST

3.5.10 AUTO POWER OFF

3.5.11 RELAY OUTPUT SIGNAL (NOT FOR X628U)

3.5.12 RESTORE FACTORY SETTING

3.5.13 LOG MANAGEMENT

3.5.14 SYSTEM LOG WARNING

3.5.15 ATTENDANCE LOG WARNING

3.5.16 REVERIFY

3.5.17 LOG QUERY

3.5.18 ENROLL INFO

4. QUICK SETUP GUIDE

4.1 HARDWARE

4.1.1 POWER ON/OFF T-7

4.1.2 COMPUTER CONNECTION

A. THROUGH RS232

B. THROUGH RS485

C. THROUGH TCP/IP

4.2 SOFTWARE

4.2.1 PACKING LIST

4.2.2 FINGERPRINT REGISTRATION

4.2.3 SOFTWARE INSTALLATION

CHAPTER ONE INTRODUCTION

1.1 SUPPLIED PART LIST

1. T-7 Fingerprint Terminal 1pcs

2. 9V/1A Power Supply 1pcs

3. RS232 Cable (1m) 1pcs

4. Pegasus 5.0Attendance Management CD 1pcs

1.2 ABOUT PEGASUS T-7

The Pegasus T-7 is a flexible and reliable design to meet the market requirement for a robust and secure biometric Time & Attendance solution at a reasonable cost. T-7 allows you to register up to 2,000 fingerprints and store up to 50,000 transactions.

1.3 HARDWARE SPECIFICATION

Fingerprint Template Capacity

2,000

Transaction Capacity

50,000

Verification Mode

1:1 or 1:N

Communication

RS23 2/RS485(up to 32 channels) TCP/IP

Keyboard and Display

128x64 LCD with blue back light and 16-key keypad

Power Supply

9 VDC, standby current: 2.5A, operating current: 400mA

Identification speed

< =2 seconds

FRR (False Rejection Ratio)

< =0.01%

FAR (False Acceptance Ratio)

< =0.0001%

Operating Environment

Temperature: 0°C – 45°C

Humidity: 20% – 80%

Language Support

English

Dimension

189(L)*137(W)*50(H)mm

CHAPTER TWO

PRODUCT OVERVIEW

2.1 COMMUNICATION

Pegasus T-7 Provides RS232, RS485 and TCP/IP communication interfaces and depicted below:

2.2 POWER MANAGEMENT

When T-7 is in power down mode, the device is brought into operational mode once Power Key is pressed and ready for clocking.

When the device is in operational mode, the device is brought into power down mode once Power Key is pressed and held for 4 seconds.

If the automatic power down has been set, the device will be brought into power down mode according to defined time schedule.

2.3 KEYPAD FUNCTIONS

ESC

ESC Move one level up from the menu hierarchy

MENU Get into the system setting menu

OK Confirm the current setting

? Move the cursor up

? Move the cursor down

0...9 Numeric keys

? Power ON/OFF switch

2.4 USER MANAGEMENT

Two User roles are defined in T-7, namely manager or normal user.

? Normal users can clock on the device but can NOT access the settings. ? Managers can clock on the device as well as do system management:

1. Register/delete normal users' fingerprints and passwords.

2. Browser attendance records as well as other system information.

3. Set up system configurations

2.5 USER ENROLLMENT

Enrollment is the process of creating an ID, assigning a password (optional) and scanning a user’s fingers to create the fingerprint templates. All these associated information are stored in the device.

During user verification, the stored fingerprint templates are compared to the current scanned fingerprint to confirm the user’s identity.

Enrollment takes approximately 2 seconds for each user. Up to 3 fingers can be enrolled for the same ID number. Ideally, at least one finger on each hand should be enrolled in case of injures.

2.6 Hardware Description

CHAPTER THREE BASIC SETTINGS

3.1 SYSTEM SETTINGS

3.1.1 Total Number of Administrators

Setting

Description

1 -10

set total number of administrators in T-7

Factory Default

3.1.2 Machine Number

Setting

Description

1 -255

set an unique address ID to T-7 to network with multiple machines

Factory Default

3.1.3 Baud Rate

Setting

Description

9600

set the communication speed to 9,600 bps (Bit Per Second)

19200

38400

set the communication speed to 19,200 bps set the communication speed to 38,400 bps

Factory Default

38400

* Speed setting should be the same with PC, otherwise communication shall fail.

3.1.4 Language

Setting

Description

English

set all display information in English

Traditional Chinese

Set all display information in Traditional Chinese

Factory Default

English

3.1.5 Auto Power Off

Setting

Description

auto power off function is disabled

1 - 255

Auto power off when there are no activities on the device. The unit is in minute.

Factory Default

3.1.6 Voice Indication

Setting

Description

YES

Activate the voice indication

Inactivate the voice indication

Factory Default

YES

3.1.7 Restore Factory Default

If OK key is pressed, all the current setting will lose and restore to the factory default settings.

3.2 EVENT SETTINGS

3.2.1 Administrative Event Full Warning

The machine will give a “FULL” warning signal when the administrative event buffer is below the set threshold.

Setting

Description

There's no warning if there's no administrative event buffer left, and no further administrative events will be logged.

1 - 255

Factory Default

100

3.2.2 Attendance Event Full Warning

The machine will give a “FULL” warning signal when the attendance event buffer is below the set threshold.

Setting

Description

There's no warning if there's no attendance event buffer left, and no further attendance events will be logged.

1 - 1500

Factory Default

1000

3.2.3 Valid Attendance Time Interval

If this time interval is set, only ONE attendance event will be logged if there are multiple attendance events within this time interval for the same user.

Setting

Description

All attendance events will be counted as valid one.

1 - 255

Factory Default

3.3 MENU HIERARCHY

There are three kinds of menus:

1. Operation Menu

2. Setting Menu

3. Status Menu

3.3.1 First Level Menu Items

The first level menu items show up when MENU key is pressed if there’s no available administrators, affirmation will be done otherwise.

1. Enroll

2. Delete

3. Download

4. Time Set

5. Settings

6. Info View

3.3.2 Second Level Menu Items

User Registration Management

The Item “Enroll” includes 4 Sub Items which are “User Enroll”, “Manager Enroll”, “Sec Level Set” and “ USB Upload”

The Sub Items will show up after user select “Enroll” ,which under the first level menu, and Press “OK”.

Enroll

1. User Enroll

2. Manager Enroll

3. Sec Level Set

4. USB Upload

Select the level of user registration (User Enroll / Manager Enroll) and Press “OK”. The Third Level Menu Items show up as the figure below. “New Enroll” is for new user registration. “Backup Enroll” is for enrolling *“Backup Record” of registered user.

User Enrol / Manager Enroll

1. New Enroll

2. Backup Enroll

(*p.s.: “Backup Record” means the 2nd or 3rd Finger Print template, Password and ID card”.

The registration method shows up after “New Enroll” or “Backup Enroll” is selected.

New Enroll / Backup Enrol

1. Finger

2. Password

3. Card

“Sec Level Set”

There are 2 options under “Sec Level Set” whichare “1:1 Verify” and “1:N Identify”. “1:1 Verify” - Compare the user’s fingerprint and the fingerprint template stored in card. (Optional Setting depends on the model)

“1:N Identify” – Compare the user’s fingerprint with the fingerprint template of all registered user stored in machine.

Sec Level Set

1. 1:1 Verify

2. 1:N Identify

”USB Upload”

The Backup of Menu Setting can be uploaded from USB storage device to the FringerPrint

Machine. (Optional Setting depends on the model)

Delete User

The “Delete Menu” shows up after select “Delete” under the First Level Menu and pressed “OK”. Enter the UserID by number or direction key. Press “OK” to confirm the deletion.

Data Download

The Sub Items show up after select “Download” user First Level Menu.

Download

1. USB Download

2. RS232 Set

3. RS485 Use

4. Etnernet Set

USB Download

There are two options under the “USB Download”, which are “GLog” and “Enroll

Data”.(Optional Function depends on the model)

“Glog” Attendance Record Download

“Enroll Data” Fingerprint Template Download

Time Setting

The Time Setting Menu shows up after select “Time Set” under the First Level Menu and pressed “OK”.

Move the cursor location by direction key. Enter the correct value by number key. (The weekday value is generated by machine automatically).

3.3.3 “Setting” configures the major function of T-7.

There are two items under “Setting”, which are “Terminal” and “Log”.

Settings

1. Terminal

2. Log

“Terminal” configures the settings of machine operation. “Log” configures the settings of data logging

The sub items are shown below.

Terminal Set

1. Machine ID

2. Managers

3. Language

4. Voice Out

5. LCD Con

6. Auto Off

7. Lock Ctrl

8. Restore Def

Log Set

1. SLog Wrn

2. GLog Wrn

3. Reverify

Machine ID: The Unique ID of the machine on the same communication channel.

Managers: The maximum number of machine administrator.

Language: The language of operation menu. T-7 supports 2 languages which are Traditional Chinese and English.

Voice Out: Enable or disable the function of voice indication.

LCD Con: The contrast of between the display and back-light.

Auto Off: The machine will shut down after a certain idle time. (The function is disable on the default setting).

Lock Ctrl: The duration of Open door signal.

Restore Def: Restore all settings which under “Settings” to factory default setting.

Slog Wrn: To set the limit of residue system log memory. If the number of residue system log memoryreach the limit. Warning occurred. (All administrators’ operation is record as system log.)

Glog Wrn: To set the limit of residue attendance record memory. If the number of residue attendance record memoryreach the limit. Warning occurred.

Reverify: The duration of 2 successful attendances which from the same fingerprint. All duplicate attendance record doesn’t be recorded.

Detail Information

“Info View” shows the registration code, records, manufacturer and firmware version. The sub items are shown below.

Info View

1. Enroll Info

2. Log Info

3. Sys Info

Enroll Info: To show the information about user registration such as the number of registered user, number of registered administrator, number of fingerprint template, number of registered password and number of registered ID Card.

Log Info To show or operate the machine record such as number of attendance record, number of system log, attendance record of user, system log of administrator, and delete all record.

Sys Info: To show hardware information which includes Manufacturer, Machine Name, Release Date,. Serial Number, Engine Version and Soft Version.

3.4 Machine Operation for administrator

3.4.1 To show the First Level Menu

If the “manager confirm” is requested on the operation and the user didn’t enroll any administrator, please shut down the machine and contact with retailer.

If confirmation is fail, “Illegal” is shown and request the reconfirmation.

3.4.2 Machine Management

New User Registration / New Administrator Registration

Step 1 Enter the First Level Menu (Refer to Page.)

Step 2 Press “1” to choose “Enroll”

Step 3 Press “1” to choose “User Enroll” for normal user registration

Press”2” to choose “Manager Enroll” for administrator registration

Step 5 Press “1” to choose “Finger” for Fingerprint Enrolling.

Enroll Object

1.Finger

2.Password

3.Card

Step 6 Enter the User ID (i.e) 00001 and Press “OK”.

Step 8.Show you finger on the window again

Successful Registration

Step 10 Press ”ESC’ to quit the registration process.

Enrolled User Registration (Backup Enroll)

T-7 allow administrator enroll 2 more fingerprint temple, password and Card for the same

user as Backup.

3.4.3 Password Registration

Step 1 Enter the Menu “Enroll Object”

Step 2 Press”2” to choose “Password”

Enroll Object

1.Finger

2.Password

3.Card

Step 3 Enter the User ID (i.e) 00001 and Press “OK”.

Step 4 Enter the Password (4 digits) and Press “Enter”

Successful Registration

Step 6 Press ”ESC” to quit the registration process.

3.4.4 ID Card Registration (Optional function for special model)

Step 1 Enter the Menu “Enroll Object”

Step 2 Press “3” to choose Card

Enroll Object

1.Finger

2.Password

3.Card

Step 3 Enter the User ID (i.e) 00001 and Press “OK”.

Step 4 Please show Card on the detecting area.

Step 5 Card ID is shown on the screen and Press “OK” to confirm.

Card In

50741209

ESC ENTER

Successful Card Registration

Step 6 Press ”ESC” to quit the registration process.

3.4.5 Delete User

Step 1 Enter the First Level Menu (Refer to Page.)

Step 2 Press “2” to choose “Delete”

Successful Deletion

If any backup record belong the deleted User ID, the alert of deletion of backup record will show on the screen.

The type of record is indicated by the last digit.

“0” means 1st Fingerprint template.

“1” means 2nd Fingerprint template

“2” means 3rd Fingerprint template

“P” means Password

“C” means Card

3.5 Attendance Log and System Log Management 3.5.1 Query Attendance Log

Step 1 Enter the First Level Menu (Refer to Page.)

Step 2 Press”6” to choose “Info View”

Step 5 Press “OK” to query all attendance log. (In order by time)

Enter the User ID to query a certain user ‘s record. Press”OK”

Step 6 Press “? ” or “? ”to view the previous or next record.

C ? total amount of attendance record

(C-00022 means there are 22 records)

N ? the sequence of attendance record

(N-00001 means it is the first record)

V_F ? by fingerprint

V_P ? by password

00001 ? User ID of the current record

07/03/10 13:23 ? attendance time

3.5.2 Query the System Log

Step 1 Enter the Menu “Log View”

Step 2 Press”4” to choose “SLog View”

Step 3 Press “OK” to query all system log. (In order by time)

Enter the User ID to query a certain user’s system log. Press”OK”

Step 4 Press “? ”or “? ”to view the previous or next record.

E_U ? Normal user registration

E_M ? Administrator registration

E_DF ? Delete Fingerprint template

E_DP ? Delete Password

D_L ? Delete all record

S_T ? Time Setting

S_S ? System Setting

3.5.3 Delete all Record

Step 1 Enter the Menu “Log View”

Step 2 Press “5” to choose “Delete All Log”

Log View

3.GLog View

4.SLog View

5.Delete All Log

Step 3 Press”OK” to confirm the deletion

Successful Deletion

3.5.4 Settings

Follow the steps below to access Terminal Setting Menu.

Step 1 Enter First Level Menu

Step 2 Press”6” to choose “Setting”

Step 3 Press”1” to choose Terminal

3.5.5 Machine ID

The machine ID of each machine on the same channel should be unique. (No matter Using RS485

or TCP/IP protocol).

Step 1 Press “1” to choose Machine ID

Step 2 Enter the NEW ID with range between 1-255 (i.e “2”) and press “OK” to confirm.

3.5.6 Managers

Step 1 Press “2” to choose “Managers”

Step 2 Enter the maximum no. of machine administrator (i.e. 6) and press “OK” to confirm.

3.5.7 Language

Step 1 Press”3” to choose “Language”

Step 2 Press “? ”or “? ”to choose Language and press “OK” to confirm.

Terminal Set

1.Machine ID 1

2.Managers 6

3.Language TCHN

3.5.8 Voice Indication

Step 1 Press”4” to choose “Voice Out”

Step 2 Press “? ” or “? ”to enable or disable the function

Yes – Enable

No – Disable

Press “OK” to confirm.

3.5.9 LCD Contrast

Step 1 Press”5” to choose “LCD Con”

Step 2 Enter the contrast value and press “OK” to confirm

(“0” – Blank Display, “63” – Black Display)

3.5.10 Auto Power Off

Step 1 Press”6” to choose “Auto Off”

Step 2 Press “? ”or “? ”to disable the function or set the delay time (1 – 255mins)

3.5.11 Relay Output Signal (Not for X628U)

Step 1 Press “7” to choose “Lock Ctrl”

Step 2 Press “? ”or “? ”to disable the function or set the delay time (1 –16s)

3.5.12 Restore Factory Setting

Step 1 Press “8” to choose “Restore Def” and confirm the restoring.

All setting under terminal settings will be recovered to default factory setting. (Except System Log and Attendance Log)

3.5.13 Log Management

Follow the steps below to access Log Setting Menu.

Step 1 Enter First Level Menu

Step 2 Press”5” to choose “Setting”

3.5.14 System Log Warning

Step 1 Press” 1” to choose “SLog Wrn”

Step 2 Enter the number of residue system log memory (1 – 255) before the warning occur.

And press “OK” to confirm.

(i.e. “100” means the warning will occur if the residue system log memory reach 100.)

3.5.15 Attendance Log Warning

Step 1 Press”2” to choose “GLog Wrn”

Step 2 Enter the number of residue attendance record (1 - 1500)before the warning occur.

And press “OK” to confirm.

(i.e. “1000” means the warning will occur if the residue attendance log memory reach 1000)

3.5.16 Reverify

Step 1 Press”3” to choose “Reverify”

Step 2 Press “? ” or “? ”to disable the function or set the duration between 2 successful attendance (1 –255mins)

3.5.17 Log Query

Follow the steps below to access Information View Menu.

Step 1 Enter First Level Menu

Step 2 Press”6” to choose “Info View”

3.5.18 Enroll Info

It shows all amount of Enrolled record storage such as the number of enrolled user, the number of

enrolled administrator, enrolled fingerprint template, enrolled password and enrolled card.

Step 1 Press” 1” to choose “Enroll Info”

Step 2 Press “? ” or “? ”to view the information

CHAPTER FOUR

QUICK SETUP GUIDE

4.1 Hardware

? 4.1.1 Power on/off T-7

1. Connect the bundled Power Adaptor to a 220V/110V socket.

2. Connect the T-7, and then press Power Button to power on T-7.

3. Hold the Power Button for 2 seconds to power off T-7.

? 4.1.2 Computer Connection

There are there ways to establish the connection between T-7 and Computer.

A. Through RS232

1. Press “MENU” to enter menu. Press 3>>2>> 1

2. Set the baud rate to 38400 by pressing ? or ? and then press “OK” to save.

4. Power off T-7.

5. Connect RS232 cable to the 9-pin port or connect the bundled RJ45-RS232 cable to the RJ45 port on T-7.

6. Connect the other end of RS232/ RJ45-RS232 cable to computer COM-PORT.

7. Power on T-7.

B. Through RS485

1. Press “MENU” to enter menu. Press 3>>3

2. Set “RS485 Use” to “On”pressing ? or ? and then press “OK” to save. (Note: T-7 can

either enable RS485 connection or TCP/IP connection at the same time)

Download

1? USB Download

2? RS232 Set

3? RS485 Use On

3. Power off T-7.

4. Connect RS485 cable to the RJ45 port on T-7. (Note: please refer to 5. RJ45 Port Pin Assignment for details of the required RS485 cable)

5. Connect the other end of RS485 cable to a RS232/RS485 Converter

6. Connect the other end of RS232/RS485 to computer COM-PORT.

7. Power on T-7.

C. T hrough TCP/IP

1. Press “MENU” to enter menu. Press 3>>4>>1 to enter IP setup page.

IP Address

192. 168. 001. 224

ESC ENTER-Save

2. Configure the IP according to your network settings. The default IP of T-7 is 192.168.1.224. Please make sure that the IP of T-7 is within the same network with your computer. Thus, if IP of your computer is 192.168.001.xxx, then IP of T-7 must be 192.168.001.xxx also.

3. Power off T-7.

4. Connect computer directly with Ethernet 10/100Base-T Crossover Cable, or connect to network Hub/Switchwith Ethernet 10/100Base-T Straight Thru Cable.

5. Power on T-7.

6. Pin Assignment refer to below diagram

RJ45 Port Pin Assignment

Pin Function

1 TCP ---TX+

2 TCP ---TX

3 TCP ---RX+ / RS485A

4 RS485B

5 GND

6 TCP—RX

7 RS232---R

8 RS232---T

4.2 Software

4.2.1 Packing List

Finger Print Machine x1

9V/1A Power Adapter x1

RJ45-RS232 Connection Cable x1

Software CD-Rom x1

4.2.2 Fingerprint Registration

1. Connect the Power Adapter to T-7 and power socket, power on T-7.

2. Press “MENU”, and followed by 1>>1>>1>>1 to enter staff finger print registration page.

3. Input the user ID and then place the finger on scanner for three times.

4. Press “MENU”, and followed by 1>>2>>1>>1 to enter manager finger print registration page.

5. Once there is a user registered as Manager, the menu function will be locked. Thus no one can access to menu without manager authentication.

4.2.3 Software Installation

1. Put the Software CD-Rom into CD/DVD Drive of Computer.

2. Browse the root directory of the CD-ROM, and then double click on the Setup File in Pegasus 5.0 Folder.

3. The installation Wizard will guide you through out the whole installation process.

4. Please Read the Software manual for instructions on how to use the software .

The End

Thank You for Purchasing T-7

Jasa Konsultasi Disertasi Keuangan (1) dan Perbankan S3, hubungi WA 0821 2230 7021

Senin, 08 Agustus 2022

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