Procurement Cost Plan for Heating Installation

Procurement Cost Plan for Heating Installation Q) Establish some contractual and procurement difficulties if your Organisation were to be main contractor for installation of a district heating scheme serving 100 pensioners bungalows. Produce a basic procurement cost plan for contractors to price against. CHAPTER 1: INTRODUCTION District heating is a system where the heat for an area is produced centrally, and hot water or steam is transported to the buildings through a network of pipes. Heat is transferred into individual properties through a heat exchanger, and then used in conventional heating systems (in flats, for example, there may just be one heat exchanger for the whole block). District heating networks vary widely in scale from individual developments or apartment blocks to whole cities. In Denmark, where district heating accounts for about 60% of the heat supplied, cities such as Copenhagen receive heat from large-scale power stations and energy from waste plants situated up to 40km away. Modern district heating can be cost effective and reduce CO2 emissions compared to conventional heating systems. This is because generating heat centrally at large scale can reduce costs compared to generating heat in boilers in individual properties, particularly when combined heat and power (CHP) plants are used. Heat transported through the network can also be converted into cooling using absorption chillers, again improving the efficiency of the system and also providing an option to use heat produced in the summer.   District heating is more environmentally friendly than conventional heating, the potential to reduce emissions will depend greatly on the fuel used and the type of central plant that is generating the heat. Modern district heating offers the potential to use a variety of low carbon and renewable heat generation technologies, such as CHP using fossil fuels, biomass or waste, biomass boilers or surplus heat from industrial processes. As an experienced and tested technology, employed effectively in many countries, district heating has evolved significantly from the days when it was first installed. Networks are now highly efficient, with sophisticated heating controls that allow suppliers to maintain the network and consumers to easily manage their heat use. Underground sensors are able to quickly locate any leaks, and back-up generating plant, is used to limit the effect of possible problems with the central generating plant. CHAPTER 2: AIMS AND OBJECTIVES OF THIS STUDY The main aim is to establish the contractual and procurement difficulties of the main contractor for installation of the district heating scheme serving 100 pensioners bungalows. The aims and objectives can be summarized as follows; To install a district heating scheme to serve 100 pensioners bungalows. To conduct the feasibility study of CHP/CH for district heating. To establish contractual and procurement issues that may occur in this project scheme. To study life cycle costing of the district heating scheme. CHAPTER 3:   FEASIBILITY STUDY OF CHP/CH FOR DISTRICT HEATING SCHEMES Any CH development, whether new or refurbished, large or small, should start with a feasibility study, during which the technical and economic viability of community heating, compared with other possible options, will clearly emerge. The application of CHP enhances the combined heat option by providing heat and power with a very high overall efficiency. So this section deals primarily with the feasibility of CHP/CH schemes. Options should be compared using sound economic principles, always ensuring that full life-cycle costing is used. The content of the feasibility study will be far reaching and, in the course of the work, many fundamental decisions will be made as to the technical approach and the most attractive option to be pursued. Once the project development stage is reached it is much more difficult to change course. Consequently the feasibility study needs to be carefully procured, managed and fully discussed before proceeding further. 3.1:   Defining the brief Whether the study is being carried out in-house or using external resources, it is necessary to define a brief. This must state the objectives clearly, and provide information on existing buildings and their heating systems, the general aspirations of the organisation commissioning the study, and the time-scale for the study. Any particular issues of concern should be mentioned, but otherwise the brief should not constrain the scope of the study.   If external consultants are to be appointed, their selection should be primarily on the basis of the capability, qualifications and experience of the study team and their approach and methodology. The study should include engineering, economics, environmental and commercial issues, together with related health and safety matters, for which a comprehensive team of experts needs to be assembled, often with external consultants working closely with in-house lead personnel.   An indication of the economic parameters to be used in assessing options should be provided in the brief, e.g. the test discount rate and the period of analysis to be assumed in a discounted cash flow analysis. Such information will be needed during the study, and early discussion and agreement on these parameters is advisable. It is important to insist that the correct basis of full life-cycle costing is applied to each of the options under consideration.   Once the main options have been established, capital costs will need to be estimated, as well as operating and maintenance costs where these are the responsibility of the CHP/CH developer. 3.2:   Heat and electricity demand assessment The starting point of a study is the determination of the market for heat, cooling and power. Initially, this involves enlisting support for a scheme from organisations such as the local authority, large hospitals or a university, all of which can help to provide essential core load for a proposed scheme. It is also important to consider the concentration of heat demand which can accure from such potential customers. Cooling by means of absorption chillers offers a further use for heat, particularly at times when heating is not required. The heating, cooling and power requirement for buildings can be obtained from previous data, provided the existing building use is to be remain unchanged, or by energy modelling techniques. It is important that all cost-effective energy-saving measures for the building either be implemented, or at least considered, before determining heat demand. The fundamental minimum requirements of the heat demand assessments are: †¢ the temperature requirements of the heating system †¢ the determination of peak heat demands †¢ annual energy consumption. These data’s will enable some approximate economic work to commence. However, the revenues from the production of electricity vary with time of day and time of year, and hence the cost of heat production from a CHP plant will also vary over the years. It will, therefore, be necessary to determine a heat demand profile over the year, at least on a monthly basis and preferably weekly.   Monthly heat demand profiles can be estimated using weather data, together with establishing a hot water energy demand profile. In addition, the variation of heat demands over a 24-hour period will be useful, but these data are likely to be available only if a high level of instrumentation has already been installed within the buildings. The hourly heat demand profile is required so that simultaneous heat and power production can be simulated. For electricity, half-hourly data will normally be available for larger users, and monthly data from bills. Consideration needs to be given to the effect of the following on demand profiles for heat and power:    †¢ metering and charging tariffs — if historical data are based on un-metered heat, a change to metered supply normally leads to significant reductions in heat use. †¢ there may be cost-effective opportunities to reduce heat demand by adding insulation to the building fabric. †¢ liberalisation of the electricity market makes it easier to sell electricity directly to residents on community heating schemes. †¢ use of surplus heat for cooling, particularly in summer, when residential heating requirements are low or zero. At the feasibility stage these decisions will not have been finalised and it may therefore be necessary to proceed with a range of possible heat and power demands. 3.3:   Heating systems within buildings It is necessary to establish details of existing heating systems within the buildings. Some of these may be unsuitable for connection to CH systems, in which an outline engineering design will be needed for their replacement. Where systems are more compatible, their operating temperatures and pressures need to be established together with an assessment of their effectiveness in meeting current and future needs. If there is some extra capacity available then it may be possible to reduce operating temperatures and flow rates in heating circuits, which will generally be of benefit to the CH scheme. It is also important to establish the method of control used for both time and temperature in order to predict accurately effects on the CH systems. When details of existing systems are available it will be possible to propose a programme of works that will enhance existing systems and yet still be compatible with the proposed CH system. However, several options may have to be considered and cost estimates are prepared for use, in an overall option appraisal. In some buildings, the provision of domestic hot water may represent a significant part of the demand, and there are a number of ways of generating domestic hot water from a CH system. The most energy-efficient schemes will involve taking advantage of the low temperature of the cold water feed so as to cool the community heating return as close as possible to this temperature. This leads to the use of non-storage calorifiers or additional coil surface in cylinders. In larger buildings, two-stage heating, utilising the return water from a space-heating circuit to carry out pre-heating of the cold water feed, is the best solution, provided it should be economical. 3.4:   Central Plant Once the heat demand assessment has been made, work can commence on examining the central plant options. The aspects to be covered are: †¢ prime mover choice †¢ fuel choice, contract flexibility, and security †¢ site location and topography, and interfaces with fuel, electricity and CH  Ã‚  Ã‚      infrastructure †¢ balance between CHP heat and boiler heat †¢ provision of standby capacity †¢ building to house the plant.    It is likely that a number of options will present themselves and each will need to be analysed under similar assumptions to determine the optimum selection. Capital, operating and maintenance costs will need to be assessed for each combination of plant. The CHP operating strategy needs to be developed to establish the most economical method of operation in relation to varying heat and power demand profiles and varying selling prices, e.g. following the heat demand at full output and dumping heat. A spreadsheet-based operating model is essential to ensure that the correct operating strategy has been made and to calculate the annual energy flows, and to permit rapid sensitivity analysis. The optimum CHP plant capacity needs to be determined by considering a range of plant sizes and by carrying out an economic assessment of each.   For single-site CHP projects it is important to have a reasonable match between the generated output and the electricity demand. For a CHP/CH system, electricity is often sold in bulk and the site demand must also be taken into account. However, there may be good opportunities for selling electricity to customers who are more directly linked to the scheme, by use of system arrangements. In this case, modelling the CHP plant in relation to electricity demand may need to be considered. The use of thermal storage and heat dumping may be of greater assistance in allowing the CHP plant a higher flexibility in matching demand profiles. There may also be opportunities for tri-generation (heat, chilling and electricity). Some CH schemes are initially established without CHP, due to the large capital outlay involved. Even without CHP, there may still be environmental and economic advantages from load diversification, and further economic benefits from purchasing fuel in bulk. The use of pre-insulated pipes and low NO2, high-efficiency or condensing boilers have helped to make modern combined heat systems robust, environmentally friendly, and economically advantageous. It should be stressed, however, that CHP offers immediate environmental benefits, and long-term economic advantages.    3.5:   Heat Distribution systems After the building demands and the central plant location have been determined it is then possible to examine the heat distribution system. In order to analyse the network rapidly and to calculate costs, computer software is essential. For large schemes, only the primary mains, together with sample areas of sub-distribution mains, will need to be analysed at this stage. The more difficult aspect is to determine which routes for CH pipe work are technically feasible and cost-effective. Considerable assistance may be obtained by consulting ordnance Survey maps. These are now available on CAD format but at a significant cost. However, there is no substitute for an informed site survey, and a detailed examination of other utility services drawings. Within the feasibility study it will be necessary at least to identify any major constraints to routes, e.g. road and rail crossings, the presence of underground sewers, railway tunnels, etc. In selecting routes the use of open, grassed areas will lead to significant cost savings, as with the avoidance of major roads. Consultation with the Local Authority Planning and Highways Department is essential. 3.6: Optimisation This is the most complex phase of a feasibility study, where the various options available for CHP plant, heat distribution and building heating systems need to be assembled into a number of scheme options — all with their individual sets of cost and revenue streams. Some cases may be simplified by a process of logical comparison, but normally it will be necessary to compare the options using discounted cash flow analysis, and hence to determine the preferred option on the basis of maximising net present value or internal rate of return. Some of the system optimisation issues that are likely to need evaluation are given below. 3.6.1: Operating temperatures A high flow temperature will result in a larger temperature drop, lower flow rates and hence smaller pipe diameters can be used. This capital cost advantage will be offset by the need for more expensive building connections and possibly higher heat production costs, depending on the CHP plant selected. 3.6.2: Operating pressures The option exists to run the system at a lower operating pressure by over-sizing the network; the extra cost incurred should be compared with savings from using the cheaper direct connection method to link building heating systems to the community heating network. Pumping costs also need to be considered, particularly for larger systems, where higher design pressure reduces the amount of booster pumping required. The topographic variation will also need to be considered when deciding upon operation pressure. 3.6.3: Size of scheme A smaller scheme may be more compact and have a relatively inexpensive network, but larger schemes may result in economies of scale for the CHP plant arising from higher efficiency and lower capital cost per kW. The phased expansion of the scheme also needs to be considered, as does ways in which this might affect the plant and the network design. 3.6.3: Heat meters The installation of heat meters will result in lower buildings energy use and reduced operating costs. If the individual dwellings are equipped with heat meters, energy savings should be compared with the additional capital cost and consumer administration charges. It is also possible that the provision of heat meters for each dwelling may be the only way to achieve market acceptability by residents and energy developers. In addition, the inclusion of heat meters will have a positive effect on Standard Assessment Procedure rating (SAP). 3.6.4: Building heating systems The conversion of a heating system to more compatible operating conditions will involve additional capital cost, but if it results in better plant selection or increased heat sales it may be justified. One example is converting steam heating at a hospital to low temperature hot water heating suitable for connection to a community heating network. 3.6.5: Improvements to building fabric Some buildings, fabric insulation improvements will be cost-effective in energy terms. The economic advantage is not as great when the building is supplied by CHP/CH as it would be for small conventional boilers or electric space heating, because the marginal cost of heat is lower. There is, however, a financial advantage in reducing peak heat demands as the capacity of the CHP plant and the heat distribution network can be reduced. The resultant saving in capital cost needs to be included in the economic assessment of insulation measures. Once the main options have been established, capital costs will need to be estimated as well as operating and maintenance costs where these are the responsibility of the CHP/CH developer 3.7:   Revenues from heat and electricity sales 3.7.1:   Heat sales A good understanding of a customer’s current and likely future costs for conventional heating is required in order to judge the maximum heat sales income available. These costs will include fuel, operating and maintenance and provision for future boiler replacement. It will be necessary to structure a heat sales package so that the advantages can clearly be seen. At feasibility level there will need to be a sufficiently large discount to be confident that this level of income can be obtained for the period of analysis. A long-term commitment is unlikely to be obtained at this stage and information on existing costs may be limited, so a cautious approach may be needed. The situation is clearer in the residential sector where the costs of the conventional individual boiler systems are generally well established. The main options available in the residential sector are: †¢ sales to individual residents by means of a fixed charge related to size of dwelling †¢ sales to individual residents based on measuring the heat energy actually used (dwelling heat meters) †¢ sales to individual residents based on the measurement of actual energy used by a block of flats and an apportionment based on size of dwelling/occupancy.    Pre-payment systems can be used to collect either fixed or variable charges or a combination of both. Some consideration should be given to assessing the likely levels of bad debt where prepayment systems are not installed, and bad debt costs may need to be incorporated in the economic analysis. 3.7.2:   Electricity sales Where CHP plant is installed, it is vital to obtain the maximum income from the electricity produced. Typically, a 10% increase in electricity sales will improve the internal rate of return (IRR) of a project (see section 1.10) by 2%, whereas a 10% increase in heat sales will improve the IRR by 1%. The CHP/CH company may opt to sell electricity in bulk to the host public electricity supplier (PES), which will normally offer terms on a p/kWh basis for electricity generated at different times of the day and year seasonal time of day (STOD) tariff. However, if the CHP/CH company can supply electricity users directly (this may include residents themselves) a much better return can be obtained. Among the more favourable options that exist, (following the liberalisation of the electricity market in 1998) is the sale of electricity direct to residents and other customers. A summary of the options is as follows: †¢ sale to the host PES †¢ sale to a second tier supplier, i.e. othe r PES’s and other suppliers of electricity †¢ direct sale to customers as a second tier supplier. This implies pool membership for    an aggregate supply of more than 500 kW †¢ sale under the non fossil-fuel obligation (NFFO) (only for energy-from-waste       projects which have bid for this arrangement in advance). †¢ sale through the pool (this entails having pool membership and is more appropriate    for projects in the range 30 MWe-50 MWe) †¢ sale as an on-site generator to other customers on the same site. It will normally be helpful to use the conventional route of sale to the host PES for the base case analysis, with the other options considered as possible improvements that can be investigated, depending on the scale of the project and the resources of the study. An element of negotiation will be needed in most of these options. As a result, definite figures are not likely to be available at the feasibility stage and a range of results may be presented as a sensitivity analysis. The sale of electricity as a second tier supplier may be of particular interest to CHP/CH schemes because there will be the opportunity to market heat and electricity together to customers on the community heating scheme. Selling two utility services may also bring benefits in metering and charging arrangements. This option is therefore discussed further below.   If a CHP/CH scheme is to undertake to sell electricity direct to customers, additional arrangements will be required, for example: †¢ a top-up and standby purchase arrangement for times when the generation is less than customer demand (including times of CHP plant outage); as a pool member a second tier supplier can purchase this power direct from the pool †¢ a contract for selling spill power for times when more power is generated than customers demand †¢ either the payment of use-of-system charges, the purchase of existing electricity infrastructure or the installation of new cables in order to transfer power to the customers. In the domestic sector, the creditworthiness of customers should be considered and the possible need for a form of prepayment. The management of debt collection is a customer care issue, and disconnection policies need to be fully developed if customers are to be retained in the long term. 3.8:   Development Programme An important output from the feasibility study is a development programme. This is required first to permit the construction of cash flows for capital expenditure, and second to enable advance planning of subsequent stages. A separate, more detailed programme may be produced covering the period of development from the conclusion of the feasibility study to the start of construction, if the route to achieve this is sufficiently clear. It is also worth establishing a watching brief on all work involving renewal of underground services, so that opportunities may be taken to coordinate projects, thus reducing costs and disruption. Issues to consider when drawing up the programme are: †¢ the need for a further project definition stage †¢ the need for further site surveys and investigations    †¢ consultation with customers and adjacent building owners and residents †¢ planning applications (and associated environmental statements) †¢ Building Regulations applications †¢ energy rating and emission improvements †¢ preparation of invitations to tender †¢ tender period †¢ short-listing construction companies †¢ short-listing energy developer companies †¢ short-listing operating companies †¢ assessment of tenders and final negotiations of contracts †¢ mobilisation †¢ site clearance †¢ construction †¢ commissioning and testing †¢ operation and maintenance. Supervision during construction is of paramount importance in order to secure the necessary quality of system. 3.9: Economic Appraisals At the heart of any economic appraisal are the cash flows, a set of annual capital, operating and maintenance expenditures, and annual revenues from the sale of heat and electricity. These cash flows are normally evaluated in real terms.   To compare scheme options, and determine whether the project is economically feasible, there are a number of arithmetical calculations based on the cash flows. It is essential that, when conducting an economic appraisal, full life-cycle costs are used to compare the various options. Simple payback period Defined as the period in which the initial investment is recovered by the annual saving. Generally this approach is too simplistic where the capital expenditure may be spread over a number of years, and where the income may vary from year to year. It is therefore not recommended. Net Present Value (NPV) To calculate the NPV it is necessary to define the cost of borrowing capital (or lost income from capital which could have been invested elsewhere) and the period for the analysis of the project. Internal Rate of Return (IRR) This can be defined as the test discount rate that results in a net present value of zero. IRR is less robust than NPV as it can lead to the selection of a smaller-scale project which, although generating a higher return, involves less capital so that the total value of the income stream is lower than the maximum potential. Both NPV and IRR calculations are available within most spreadsheet software packages. The above parameters are normally sufficient to compare options and present the results to the client organisation for a decision to proceed further. An appraisal by a financier is also likely to involve the calculation of tax implications and debt cover ratios. As an illustration of an economic appraisal, two approaches are outlined below. †¢ From the perspective of a building owner who wants to examine the cheapest method of supplying heat and power to the building or groups of buildings. The economic analysis would assemble cash flows for capital and operating costs for both the CHP scheme and the alternative approach of conventional boilers. The CHP scheme would involve significant initial capital and have an income stream for surplus electricity sales. The conventional approach will have investments in future boiler plant scheduled for future years. The NPV approach enables these varying cash flows to be summed to give a single figure; the NPV in this case being the net present cost for supplying the site with heat and power over a defined period. If the CHP/CH option gives a lower cost then it is the more economical option. †¢ From the perspective of an energy developer company, cash flows will be established for capital investments and income from both heat and electricity sales. The heat and electricity selling prices will be related to the market for these energy products. An IRR can be calculated for the project investment and the NPV for a given discount rate. The CHP/CH option with the highest NPV will be selected and the IRR must be greater than the minimum required by the energy developer company, taking account of the risks in the project.   It is worthwhile investigating whether any local major consumer, such as a local authority, is willing to connect all their buildings to a scheme. This can reduce the investment risk significantly and improve cash flow. The question of economic viability cannot be separated from an analysis of risk, particularly where project finance is the route employed. It will be necessary to carry out an analysis in which as many of the costs and performance figures as possible can be contractually underwritten before presenting the results to a financial institution for a view on financial viability. A sensitivity analysis is of assistance in identifying which of the many parameters are the most important when considering the risk to the economic performance of the scheme, and also for indicating the range of likely outcomes. From this analysis the advantages of obtaining longer-term fuel purchase contracts or heat and power sales contracts can be judged.   Some community heating schemes are initially established without CHP, due to the large capital outlay involved. It may, however, be instructive to consider the economics of a boiler-only community heating option so that the benefits of the CHP plant itself can be separately demonstrated. 3.10:   Environmental Assessments A preliminary environmental assessment should form a part of the feasibility study, identifying both the advantages and disadvantages of CHP.    3.11:   Health and safety Any construction project is covered by the Construction Design and Management (CDM) regulations. The aim of these regulations is to ensure that safety issues are considered from the start of the project, and this may include the feasibility stage. It will be necessary to appoint a planning supervisor and to carry out an outline design risk assessment. CHAPTER 4: Contractual Issues   4.1:   Works contracts The EU Directive is implemented in the main by the Public Works Contracts Regulations 1991 (SI 1991:2680). The basic qualifying threshold is currently set at special drawing rights (SDR). The rules apply principally to building and civil engineering works together with associated activities such as installation work. Public work concessions are subject to a more relaxed regime under the rules.    Following the adoption of Council Directive 97/52/EC on 13 October 1997, amending the EU public sector directives to align with the new Government Procurement Agreement (GPA), all thresholds for the public sector should now be expressed in SDR.   Where the value of the contract exceeds the threshold, contracting bodies are required to publish a prior information notice giving the essential characteristics of qualifying works contracts following decisions to approve the planning of works. A contract notice should be published in the Official Journal when offers are sought in relation to a works contract. When inviting tenders, negotiated procedures may be used only in exceptional circumstances. The choice is mainly between open and restricted procedures under which all tenderer’s must bid against the same specification and terms and conditions of contract. The negotiated procedure allows a preferred bidder to be chosen before the final terms of the contract are agreed. There are strict provisions on technical standards requiring the use of European standards in tender documentation in preference to national ones.   The award of the contract must be either on the basis of the lowest price or the most economically advantageous te

Kant’s Categorical Imperative

Immanuel Kant was a German philosopher during the Age of Enlightenment in Europe in the mid to late 18th century.   Immanuel Kant advanced the deontological theory with his theory: the categorical imperative.   Deontology is the theory of duty or moral obligation.   Performing that duty is the righteous act in itself, not the act leading to an expected or attempted end.  Ã‚   In other words, the end does not justify the means, but the means is an end unto itself.â€Å"In his theory, Kant claimed that various actions are morally wrong if they are inconsistent with the status of a person as a free and rational being, and that, conversely, acts that further the status of people as free and rational beings are morally right.† (Categorical)   Kant believed that to carry out morally right actions was an absolute duty.   He believed there were two types of duty: contingent duties which needed to be carried out only under certain circumstances, and categorical duties which always needed to be carried out because they were based on the general nature of things. (Categorical)   From these categorical duties, Kant created the categorical imperative.The categorical imperative is comprised of five formulations. The first three were the most famous:â€Å"Act only according to that maxim whereby you can at the same time will that it should become a universal law.† â€Å"Act in such a way that you treat humanity, whether in your own person or in the person of any other, always at the same time as an end and never simply as a means† â€Å"Therefore, every rational being must so act as if he were through his maxim always a legislating member in the universal kingdom of ends.† (Kant )  The first two formulations will be discussed in this paper.   The third formulation seems to merely combine the commands of the first two formulations.In order to understand the categorical imperative theory, the definition of a maxim must be understood .   A maxim, according to Kant, is a principle or rule that an individual uses when making a decision to act. (Categorical)   Morality and rational demands apply to the maxims that motivate actions. (Categorical)The first formulation is the Formula of Universal Law.   It holds that one should only act on a maxim that the agent is willing to hold as a universal law.   Also, the law â€Å"must not come into conflict with itself.† (Categorical)   In other words, if the rule or maxim cannot or should not apply to everyone or if it contradicts itself in any situation, then it should not be acted upon.   If the maxim is rational and not contradictory to itself, then the action should and, in some cases, must be taken. (Categorical)   Kant divided this reference to the duty to act on maxims into perfect duty and imperfect duty.   The perfect duty is to act only on maxims that do not result in logical contradictions when they are universalized.   The imperfect duty is to act only on those maxims that the agent is willing to universalize.   One cannot create a maxim for oneself that he or she will not apply to someone else.The second formulation is the Formula of the End in Itself.   This formulation holds that one should consider other humans or â€Å"rational beings† as well as one's self as an end, never as a means. (Categorical)   This is the opposite of the ends justifies the means theory.   In this formulation, the means are considered an end.   Therefore, the means cannot justify the ends.   If it is wrong to lie, then it is wrong to lie whether the outcome from the lie is good or bad because the lie was the end in itself: the morally wrong action that was taken. This means that a person must apply all maxims to others as he applies them to himself or else the maxims would be contradictory.There is a strong point made with both formulations, as well as a weakness.   The strongest point in the first formulation is uni versality.   It makes sense that one should wish to apply all rules and laws to others as they are applied to one's self.   For example, if I were expected by a local law to keep my dog on a leash, I would expect my neighbors to abide by that law also.   Similarly, if I was allowed the freedom to have as many children as I wish, then I should not try to take that freedom from others.   This applies to the second formulation also.   If other rational beings are to be treated as rational beings and not a means to my outcomes, then these rational beings should all hold these same freedoms that I do.In contrast, both formulations have a weakness.   It is difficult to always judge actions, as they stand alone.   It is wrong to murder.   However, in self-defense, it may be necessary.   If we view a self-defensive murder according to the categorical formulation, it is wrong to murder no matter the outcome, good or bad.   But what if killing an attacker was the only meth od of saving one's own life and perhaps, depending on the scenario, the lives of others?   Then was it morally wrong to murder?   Would the obligation to save others overrule the principle that murder is wrong?   What is the maxim to act on in this case?   Too many contradictions and shaky situations can arise to dispute the formulation.The second formulation is easier to practice than the first.   It is sensible to apply the same rules to one's self as to other human beings.   However, because the first formulation requires that particular conditions not apply, it is more difficult to practice the first formulation.  Nevertheless, the second formulation supports the first.   If a maxim is contradictory, then it should not be used to make decisions.   Also, as in the second formulation, if a person or action was used as a means and not an end, then it could not be rational or universal which would render it contradictory.   So, one would be morally bound not to u se such a maxim to make decisions by perfect and imperfect duty.In order for the second formulation to be true, the first formulation must exist.   In the first formulation, it is explained that the maxim cannot be contradictory to itself and it must be willingly used universally.   In the second formulation, if a person demands an end for himself, he must demand the same end for everyone else.   Everyone has a moral obligation to seek the same ends for all mankind that he seeks for himself.   For example, if a man seeks the freedom to marry whom he pleases, then he must seek that right for every other man out there, too.   It would be morally wrong for him to choose another man's wife or a woman's husband.Thus, if the first formulation which specifies universality and uniformity were not true, then the second formulation which expounds universality between human beings would not be true.   Also, if the universality between rational beings was not true, then it would be contradictory to the first formulation which would then contradict itself and then neither would be true.   So, it is conclusive that these formulations must work together to create the standard for moral duty.All in all, Kant was trying to theorize that actions were not bound morally by consequences or outcome.   He was explaining that actions in themselves were good or bad no matter the outcome because people chose their actions by their sense of moral duty, not by the consequences of their actions.ReferencesCategorical Imperative Formulations. Wikipedia. [Online] Available at:                   https://en.wikipedia.org/wiki/Categorical_imperative#The_second_formulation      Accessed: 5 /12/2007.

Online Environment Essay

Normally, customers would have to call an associate from D & D and find out when the next trade show, showcase, or large event D & D will be featured in attendance so customers can make their way to the venue just to see the merchandise. One main focus that would have to be kept is the same local, hometown business feel. Although D & D would be looking to expand out of the greater Indianapolis area, the focus that needs to be kept is the community. An online market would be extremely beneficial to the community and the business because the times are changing and more and more customers each day are transitioning to the online marketplace by shopping in the comfort of their own home. D & D is a community based business who believes in taking care of all our customer’s needs whether it is live an in person, or 2:00 AM on a Sunday night. We can only offer this kind of service with an online presence. D & D wants to be the company a customer can count on anytime. Being part of an online environment will be a large part in making that a reality. As a business, we must ask ourselves is this a venture that will be successful for us? Given the type of market that our company is tapping into, we have the ability to be very successful. The quality of products that we offer along with our competitive prices will give us the competitive advantage over other similar small companies as even over some larger companies as well. Establishing D & D in an online environment against competition in the same type of business will force us to be aware of all that is going on with our competition. This way, we will able to compete with the larger companies like a JCPenny or Sears and the smaller businesses like D & D that have been in the online environment for a long time. We will strive to keep the quality of our products high and be able to keep our prices low. The success of our business will lie on our quality, and providing the best quality products will help us in generating income and building a larger customer base. Current Online Competitor Assessment Being that D & D is a very small local business; large competitors (Nordstrom. com, Macys. com, Sears. com, etc. ) offer more of a broad selection of merchandise while D & D specializes in one specific area of sales at extremely competitive prices and unique craftsmanship quality. Most of these larger companies will hold sales that provide their merchandise at discounted prices in-store and online but customers will not always catch the â€Å"Great Deal† or clearance sale. D & D wants to provide quality products that customers feel are always on sale. One competitive advantage that D &D will have over these companies is the originality of products. A large portion of the merchandise sold is hand-made, developed from original designs and ideas. Larger companies will most likely buy their products in bulk from over-seas distributors that will mimic merchandise of their competitors while D & D will offer quality products made right here in the United States. D & D will be able to back all the hand-made merchandise with a ‘Made in The USA’ tag which is something that most of the larger competitors will not be able to do. There are some name brand designers that are sold through D & D; however, prices for that particular merchandise will still be competitive. We understand that there are customers with a demand for name brand designers no matter what the item may be and we want to be the provider for that segment of customers as well. Larger companies in the retail industry will often sell merchandise seasonally in regards to the specific time of year or holiday. A huge advantage that D & D will have will be the ability to purchase seasonal merchandise year round. For example, if a customer wanted to purchase a Christmas themed hat in July or another customer wanted to purchase a Valentine’s Day gift basket in October, these options would be available to them. A larger company will most likely not offer that option on their site and especially not in their store. D & D’s goal is to be able to take care of each and every customer’s needs (and wants) to create customers for life. We know that we are not the only company in this market and we need to be aware of the disadvantages we face while competing against larger companies. One large disadvantage that we will face is the distribution of our products. D & D does not have a warehouse where stock is kept in comparison to a Sears or Macy’s. Therefore, in order for us to be successful, we must be able to maintain our stock and make sure that we keep enough on hand at all times. Another disadvantage that we face is the production of our hand-made items. Although our items do not take extremely long to make, we can run into the problem of not having a specific item when it is needed. This could be a major issue in the success of that particular product, but one advantage that we do have is that everyone on the sales team is able to help us create products if we happen to be short on certain items. This gives us a slight advantage over competitors large and small because there is no need for a middle man in our product line. All handmade products are able to be created and ready for sale immediately. We will still be in a similar situation with our competitors when it comes to all of the name brand clothing as far as shipping, ordering, receiving, etc. but being able to have our custom products manufactured and ready to sell within a fraction of time it would take for shipping procedures will keep us ahead and generating income. Online Marketing Suggestions & Strategies The strategy for D & D will be one with attainable goals. The first objective of our strategy is to know where we are going and what we want to achieve. Our first goal will be to set the amount of customers that we want to reach through our online presence. As long as we have an idea of how many customers we wish to gain through this method, we will stay focused and stay on the correct path to achieve our goal. The next step in our strategy is to dissect the final goal numbers and turn the results into action plans that we can use to repeat success. For instance, if D & D sets the target number in a time period for customers gained through our online presence, because the goal was dissected prior and broken down; D & D knows exactly what must be done to achieve that goal. The last step that D & D will implement in the strategy is to make sure all success is reviewed and evaluated thoroughly. All information that we received must be evaluated so we are making sure we are getting the results that we expected and wanted. One of the major tasks that we plan to accomplish with D & D’s online marketing efforts is to attain customers of a younger age group. Typically the D & D customer base age ranges from 30 – 60 for women and 29 – 50 for men. With the addition of new products and the expansion to an online environment, the goal could be easily reached. Another marketing strategy that D & D will use is advertising the current events and trade shows we will be featured in. By advertising and marketing D & D online as well as the different venues, customers will be informed of different things to do around the city in addition to taking some time to shop. Marketing ourselves this way will not only help our business, but it will also help our community which is helping us keep our main two focuses; Service our community and sell quality products to our customers. Search Engine Considerations & Optimization Strategies Taking into consideration that there has been a lot of cross-border selling, there is a growth that is happening with search marketers. This growth causes websites to be optimized for visitors from different regions and cultural backgrounds. There are constant attempts to develop techniques that attract visitors through search engines and search ads. One technique that D & D will be able to do is use country specific domain names, and possibly change spelling variations (i. e. color v. colour). D & D will also use keywords in other languages, which will target search engines such as Google AdWords and give us more search result hits. Expanding our name in search engines will be an excellent way to open the door to us being found by more people who are searching for similar items. Encouraging our customers to post regular reviews of our business on a variety of local search sites will not only let potential customers know we do a good job, but it will increase the number of search hits we receive. The more reviews we receive, the reviews will appear high within search results. The approach also will make it more likely for the next potential customer searching for a store like D & D to possibly contact our business based on the information they are receiving in the search results. A strategy such as this will improve the amount of search hits simply by choosing the words we want to be associated with our business and as long as we are doing a great job for our customers, a large portion of those words will be positive. Social Media Integration D & D is a small business that could benefit very well from using social media. The majority of D & D’s name being spread around the community is by word of mouth; however being well known in a small community can only take you so far. Integrating a social media site like Facebook would be a wonderful opportunity to promote the business and inform potential customers about the site as well as allowing current customers to refer a friend to the page and even comment. Integrating Facebook with the site will allow customers in a matter of seconds to â€Å"like† the D & D Facebook page and there will also be a link to click to directly go to the D & D web site. The potential comments left on the page could end up helping D & D by possibly providing suggestions that D & D could use to improve the overall customer experience. Along with Facebook, Twitter can also be utilized in the social media are by â€Å"tweeting† pictures of merchandise as well as updating customers with current information regarding products and shows. For customers who are always on the go, D & D will also reach customers by the use of Instagram. By using Instagram, customers who are following D & D will be able to see recently received merchandise that will be uploaded onto the mobile page by the D & D staff. With use of these sites, D & D will able to keep the current customer base updated with information about the products as well as allowing potential customers to gain a little bit of knowledge about D & D’s products and services by utilizing the online environment that is used in day-to-day life. Using these sites will also provide another medium of communication from customers so we can listen to their suggestions, wants, and needs. By listening to customers, we are able to receive first-hand feedback and a better understanding of how we can improve our service. In addition to using social media sites like Facebook, Twitter, and Instagram, D & D will also incorporate a small blogging section on the company website. This will give customers additional medium to converse and blog about their experiences with our company. Online Customer Relationship Management When a customer makes the decision to do business with any company, the customer expects that they will receive a very high standard of customer service. As a company, D & D will also hold a very high standard in providing customer service. A key component of customer service in any business is building a relationship with the customer. Communication between the customer and seller will have to be maintained in order to build that relationship. The best way to keep this channel of communication open with the customers would be through the exchange of email for any situation, problem, or question that may arise. Email would allow our customers to ask questions regarding our products, address a problem, or even inquire about making an order. Specific email templates, for whether there is a problem or a general question, will be made for any possible topic a customer may have and this will be integrated in the site. If there is any issue, a customer will be able to be as specific as they need to in asking their question. To be as efficient as we can with offering the email option to our customers, we will offer with all emails a ‘Within 24 hr. Guarantee Response Time. ’ Putting a guarantee on a service such as this will ensure to the customer that they will receive the most efficient and effective service available. We understand that all questions and issues may not be answered through email, so all escalated issues will be followed up with a phone call from a sales associate to help solve any issue that cannot be resolved in a timely manner. Within the website there will also be a FAQs (Frequently Asked Questions) page provided to possibly help with several general questions. Our FAQs page will be updated accordingly if we seem to receive a large volume of questions for a topic that is not currently on our FAQs page. Updating this page will be very valuable to our customers’ time and it will show that we are very thorough in our process. E-Commerce Solutions E-Commerce for D & D will be an extremely user-friendly process. Our plan is to utilize all E-commerce transactions through the Volusion software program. This program is very efficient and very effective on both sides of the E-commerce transaction from seller to customer. Volusion will provide multiple payment options to potential customers such as credit or debit card, using a checking account, E-check, and even PayPal. By giving our customers multiple ways to pay, we give ourselves more opportunity to make a sale. A â€Å"checkout† and â€Å"my cart† feature will also be integrated within the site so at any time customers can quickly add an item to their cart and check out or add a few items and then edit the cart if they are not satisfied with their selection or have selected too many of one item. A link to the â€Å"my cart† section will be available on every page so a customer will be able to easily navigate there. Volusion also offers customizable tax and shipping options which will be presented for each product depending on size and time frame for customers’ desired delivery time. Customers will also be given automatic email confirmations after all purchases to give reviews of purchases. The automatic email confirmations will also be followed up by a separate email that contains an additional e-receipt and shipping information. Customers also have the option to enroll in the D & D newsletter that will be created to update customers with information regarding current and future events as well as updates for newly created merchandise. This option will be available upon checkout so customers will be able to click yes or no. Security will be a major concern with E-commerce in any company you are associating with. The Volusion software offers state-of-the art E-commerce security which is PCI/CISP (Payment Card Industry Security Standards Council /Cardholder Information Security Program) certified. Other security features include the â€Å"CAPTCHA† type image validation for all forms of submissions to prevent unauthorized use, as well as an integrated IP blocking security feature, and SSL (Secure Sockets Layer) Encryption for encrypting customer information for additional security. International Considerations International business for D & D would be an excellent addition to the business. What better way would there be to grow the business than to expand globally? The retail market for fashion and apparel is a market that is not just popular in just one geographic location. Fashion retail is an area where with the right merchandise and approach, a company like D & D could go from servicing local customers to multi-national in a matter of months. Social media will play a large role in the international expansion of D & D just as it will locally. All considerations must be viewed before the international ventures can take flight. One major concern would be how the currency from other countries would be handled. Our payment system will be an incredible asset to how our transactions are completed. Exchange rates are automatically calculated and shipping calculations are also included. Transactions will not be simple for every country. Certain payment options that D & D accepts will not be available in all countries (i. e. Romania does not have PayPal), so all employees must be aware of situations like this if they were to arise. We will also have to make sure that we are complying with all government export regulations within each country. Using the Volusion software will also help with the language barrier of different countries. The Volusion software will make sure the website is friendly and ready for non-domestic and non-English-speaking visitors. All content on our website will be internationalized to cater to different areas of the globe. We believe that if we can customize our offering, service, and payment types to different areas, the business will enjoy huge success. Web Development & Maintenance Cost The actual development for D & D’s website would be fairly inexpensive compared to the amount of return the website would help generate. Base costs to start the development of the website would begin with the purchase of the domain name (i. e. www. DandDdesigns. com) that would range from $10 – $30. Annual fees to keep the website up and running would range from $100 – $150 in renewal fees. Most sites with under 2000 pages generally do not go over that threshold amount. There are a number of extra features that can be added to the site that could possibly increase the costs for running the webpage such as enabling Java for allowing motion images and small videos on the site (about $4. 5/month) and Restore Services that offer information recovery of any information deleted accidentally by any of the company’s associates (about $1. 50/month). Web hosting sites such as Lunarpages & Hostgator offer all of these great services with no additional maintenance costs. These sites also offer 24/7 server monitoring and customer support so if anything were to go wrong, there is always someone to call on at anytime. This will also remove the expense of hiring a web developer because any and all problems with the site can be fixed by employees at anytime.

Is The Best Option For A Long Time - 1714 Words

Here is the best options which any people are going in for because it is the easiest and the most comfortable option to get them out of their fiscal problems. There are many people who need money just for a short period, so that they can overcome the things that they have been planning for from a long time. 24 Month Loans are the best option for people with shirt term needs. The internet makes convenient provisions for approval of these deals. Thus, the online mode is gaining prominence and is very relevant now days due to its easy availability. There is also minimum efforts and time taken for accessing. Most important is to follow the conditions that are put forth by the lender while granting the advance. The condition should be properly followed for granting this advance. 24 month loans should be carefully read before they can be finalized. Hence, accuracy in realizing the terms is important. There is also a need to take regard of the high interest rate that is allowed to these co ntracts. If this feature is ignored, the borrower will be liable to bear the consequences including high penalty fees. 24 month loans are very helpful for the borrower to avail these forms of cash within just 24 hours . As a result, there is direct contact to these funds without homicide much time. They are very practical cash advances. Moreover, there is no credit verification carried out in these deals. Thus, anyone can make an appeal for these deals irrespective of his financial status. Thus,Show MoreRelatedHcs 405 Simulation Review Essay1282 Words   |  6 Pagesselect two cost cutting options in an effort to obtain this goal. The five cost cutting options to choose from are downsizing staff, reducing benefits, reducing agency staff, reducing length-of-stay, and changing the skill mix. The two options best suited to alleviate the financial pressures on The Elijah Heart Center and obtain their goal are to reduce agency staff and changing the skill mix. Reducing agency staff can eliminate contracted staff salaries, which are two times more than the salariesRead MoreSimulation Review1150 Words   |  5 Pagesthat, contracted nurses are paid twice that of the other hospital staff and EHC cannot articulate those kinds of continued expenditures. Overtime EHC will be able to, evaluate on whether or not there is need to fill those vacated position with a full-time equivalent employee. By changing the skilled mix that is, hiring unlicensed assistive personnel allowing nurse to handle to big picture stuff, and delegating day-to-day task to the assistive staff; e.g. bathing, vitals, grooming. The quality ofRead MoreHealthcare Management1062 Words   |  5 Pageshospitals, where quality care of every patient is essential. A steady and consistent cash flow can help improve the hospitals borrowing power, which will increase and maintain the income level. Capital Shortage My challenge was to decide on the best strategy to solve the cash flow problem at Elijah Heart Center (EHC). In addition, I had to implement two measures to achieve a cost saving target of $750,000 for the first quarter. In order to cover the remaining shortfall, I recommended â€Å"ReducingRead MoreMinimum Wage And Philosophical Theories1374 Words   |  6 PagesFirst one is that it is best to not have any minimum wage and let the employers and employees decide. Second, the current minimum wage should not change and stay the same as it is. Third suggestion is that the U.S. should raise up the minimum wage up to certain about such as $15 an hour. Ethical egoism suggests that he or she has to make decisions based on what’s best for his or her interests and it is the only way to make decisions in the long run. Over the three different options given on the questionRead MoreThe Importance and Benefits of Breastfeeding683 Words   |  3 PagesAs a parent, each woman inherently wants her child to live a prosperous full life. She inherently desires more than just mere adequacy, she wants the best. Often times, a new mother may spend much of the day and night concerned about the well being of her child. One of the greatest areas of this contemplation is the child’s health, an area in which a mother knowingly or unknowingly may be at risk of insufficient education. Thus, one may not know that lifelong health and wellness is greatly affectedRead MoreTaylor faces a predicament regarding her lumberyard business and employees due to competitive900 Words   |  4 Pagesat hand. The first option would be to retain her workforce by reducing the wages for her employees to match her competitors. This decision would leave the employees struggling financially but they would remain employed. Another option is to either let go of a few workers or institute part-time jobs and continue paying the rest of the workers a higher wage, which would not only result in unemployment for some but the remaining workers would question their job security. Last option for Taylor is to continueRead MoreWgu Jdt Task 11443 Words   |  6 Pageslead found in the whistles. The situation of determining how to handle the recently discovered high lead content in the large whistles order is a difficult one that will in some way affect the company. Three alternatives have been made to allow options for this decision. Alternative 1: Say nothing; allow the whistles shipment to go without notifying the customer. Alternative 2: Replace the customer’s order by providing whistles that meet the appropriate company standards. Alternative 3:Read MoreMarketing Of The Craft Beer Market1514 Words   |  7 Pagesdetermining the mindset of American consumers in relation to food and drink consumption. What the study unveiled was something most food and drink producers had already caught on to, that when faced with a choice of various food options Americans tend to prefer healthy options (USDA). As a result consumer are more conscious of where their food products originate and how they were produced. This has lead to increased consumer popularity for organic and locally produced goods. Traditional and alternativeRead MoreHow Soda Companies Reduce The Consumption Of Soda Drinks Essay1397 Words   |  6 PagesAfter reviewing the problem it is clear that our organization cannot sit back idly and hope for the best. Soda companies have continued to struggle with the political interference in the market. In the past few years, nations all over the world have passed taxes on soda beverages. France passed a tax on soda and sales dropped by 3%. In Mexico, sales dropped by 2% after a similar tax was passed. And though the drops in sales are alarming, it is not event the biggest threat. Ultimately, the goal ofRead MoreAnalysis Of Start Up A New Business797 Words   |  4 Pagesmarket due to lack of capital. There are many options available to start-ups on how they can succeed in the market. For instance, franchising, licensing or securing loans from banks may be among the options utilized by owners of patents (Maynard Warren, 2014). Making decisions on the best option may be a tough task since all the options have advantages and disadvantages. Through a critical analysis of the options, it would be possible to have the best choice on how to implement the business activity