Radiologists perform both interventional and non-interventional/non-invasive procedures. Interventional radiology procedures include diagnostic radiology imaging and ultrasound, while non-interventional procedures comprise standard radiographs, single or multiple views, contrast studies, computerized tomography and magnetic resonance imaging.

To get proper reimbursement for the procedures they perform, radiologists need to execute proper disease and diagnosis coding or ICD-9 coding (using three-digit codes that are modified by including a fourth or fifth digit as characters following a decimal point), and procedural coding using Current Procedural Terminology (CPT), comprising 5 digits with 2-digit modifiers. The procedure will be considered medically necessary only with a supporting ICD-9 diagnostic code. Sometimes multiple codes, such as radiological and surgical codes may become necessary to report a full procedure. Cardiology medical billers have to be thorough with radiology CPT codes that are bundled with other CPT codes. When billing for radiology services, ‘upcoding’ (coding a higher or more complex level of service than what was actually performed) has to be strictly avoided since this is regarded as fraud or abuse. Another important factor is to ensure whether the services require prior authorization to be properly reimbursed by the carrier.

Radiology Codes

Radiology codes comprise the 70,000 series of codes organized by the method or type of radiology and the purpose of the service. They are subdivided on the basis of the type of service and anatomical site.

These include:

• Diagnostic Radiology 70000 – 76499

• Diagnostic Ultrasound 76500 – 76999

• Radiologic Guidance 77001 – 77032

• Breast, Mammography 77051 – 77059

• Bone/Joint Studies 77071 – 77084

• Radiation Oncology 77261 – 77999

• Nuclear Medicine 78000 – 79999

Interventional radiologists use certain surgical codes to signify the procedures they perform. Some major surgical codes include the following:

• Mechanical Thrombectomy: 34201, 34421, 34490

• Biliary Drainage: 47510, 47511, 47530

• Cholecystostomy Tube Placement: 47490

• IVC Filter Placment: 37620

• Biliary Stone Removal: 47630

HCPCS Codes

Medical services and supplies that are not included in the CPT coding terminology are listed in the HCPCS (Healthcare Common Procedure Coding System procedural codes). These are represented by 1 letter (from A to V) followed by four digits. Numeric or alphanumeric modifiers can be used along with these codes to clarify a procedure.

Billing for Radiology Services

Radiological service can be billed for the physician’s work as well as the use of equipment or supplies. The technical component (TC) includes facility charges, equipment, supplies, pre-/post injection services, staff and so on. The professional component (PC) involves studying and making inferences about the radiological test and submitting a written report with the findings. Modifiers are used to signify the technical and professional components in a radiological service. They are 2-digit numbers that are used to explain a procedure in more detail. They can indicate repeat or multiple procedures, such as radiographs performed bilaterally. When billing for the technical component only, the modifier 52 has to be used; when billing only for the professional component, the modifier 26 is to be used. In the latter case, a written report by the physician providing the services is required to avoid claim denial.

Some other examples of modifiers:

• -22 – unusual (increased) procedural service

• -32 – mandated services

• -51 – multiple procedures

• -66 – surgical team

• -76 – repeat procedure by same physician

• -77 – repeat procedure by another physician

• -LT, -RT, -TA to -T9, -FA to -F9, -LC, -LD, -RC – Anatomical modifiers

The global fee comprises the total payment due for the technical and professional components and this also requires a formal written report.

Billing for Professional Component

Physicians can bill for the professional component of radiology services provided for an individual patient in all settings regardless of the specialty of the physician who performs the service. Reimbursement will be given under the fee schedule for physician services. However, for radiology services provided to hospital patients, insurance carriers reimburse the professional component only under the following conditions:

• Services should meet the fee schedule conditions

• Services provided should be identifiable, direct and discrete diagnostic or therapeutic services given to an individual patient

Payment for the Technical Component

As regards the technical component or TC of radiology services furnished to hospital patients and to Skilled Nursing Facility (SNF) inpatients during a Part A covered stay, insurance carriers might not provide reimbursement. The fiscal intermediary (FI)/AB MAC makes the payment for the administrative/supervisory services offered by the physician, as well as for the provider services. The TC of radiology services offered for inpatients in hospitals, excluding CAHs or Critical Access Hospitals are included in the FIs/AB MAC payment to hospitals. In the case of hospital outpatients, radiology and related diagnostic services are reimbursed according to the Outpatient Prospective Payment System (OPPS) to the hospital. In the case of a SNF, the radiology services offered to its inpatients will be included in the SNF Prospective Payment System (PPS). For services offered for outpatients in SNFs, billing can be made by the provider of the service or by the SNF according to arrangements made with the provider. When the billing is made by the SNF, Medicare reimburses in accordance with the Medicare Physician Fee Schedule.

Radiology Billing Standards

Radiology services can be billed in a number of ways. Some of the services are split billable and the codes for these are separately reimbursed by different providers for the professional and technical component. The physician and the facility can bill for their respective component with modifiers 26, TC or ZS. In full fee billing, the physician bills for both the professional and technical components and makes the payment due to the facility for the technical component provided. In standard billing, the facility bills for both the professional and technical components and reimburses the physician for his professional component. Services that cannot be separately billed are not individually reimbursed for the professional or technical components. These codes are reimbursed only for one provider and must not be submitted with the 26, TC or ZS modifiers.

Assigning the Codes

• Medical documentation is carefully studied to identify the radiological service performed.

• Identify the anatomical site

• Find the terms in the CPT index

• Select the codes on the basis of radiology terminology

• See whether modifiers are to be assigned

The following skills are essential for accurate coding and billing for radiology services:

• Ability to review clinical issues and CPT, ICD-9 and HCPCS coding guidelines for interventional and non-interventional radiology

• Knowledge about the differences between diagnostic radiology codes and therapeutic interventional radiology codes

• Skill to review coding guidance for modifier usage with interventional radiology procedures

• Ability to code challenging case scenarios

Professional Coding Services for Accurate Billing and Coding

When it comes to coding, the radiologist faces two main issues: first, understatement of completed treatment could mean insufficient reimbursement; second, if the codes overstate the treatment, it could result in risk of abuse, repayments and fines. Another problem is the complicated and ever-changing directives with regard to CPT procedures.

Radiologists can resolve all these issues by going in for the services of professional medical coding companies. They have skilled CPT coders to do the job. With great attention to detail, in-depth knowledge of the coding system, application of basic coding principles, and thorough documentation, these companies offer accurate, customized and affordable radiology medical billing and coding services in quick turnaround time. Most of the professional companies utilize state-of-the-art billing software to guarantee efficiency and accuracy in billing and coding, for checking local coverage determination and so on to ensure that all claims are reimbursed.

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In the highly competitive world of business, companies that can provide high quality products and services are likely to expand and grow despite the current economic crisis. An integral part of the success of any company its system of human resource management and the communication and development of relationships with its employees

From the smallest business to the largest company it is essential for the company’s human resource department to be able to monitor personnel files on daily basis so that individual performance levels can be measured, holiday dates scheduled, pensions kept up to date, the amount of sick leave balanced and salaries checked.

An additional, very important aspect of resource management is concerned with staff morale. An employee who is unhappy or unmotivated is unlikely to perform tasks well. If the employee feels that the company cares about him he will in turn care about the company and strive for its success. Employees should always feel able to talk to HR manager about any problems they may have and feel secure that the conversation will remain confidential. A good HR manager should also be able to find solutions where possible or offer constructive advice to an employee with difficulties whilst remaining unbiased.

As technology has progressed more companies are using software packages specifically developed for use in Management. Such packages allow creation and editing of individual employee records, database functions and report analysis so that the manager has access to all relevant information, collectively and individually, at the touch of a button. By relieving the administration workload, there is more time for one on one conversation with employees and personal contact with all departments and managers, facilitating a full understanding by all concerned of the working environment, moral and conditions within the company.

HR Management is the key to a happy workforce, identifying the individual ambitions and strengths of employees and encouraging them to make a worthwhile contribution to the success of the company.

Sitting behind a desk buried in administrative paperwork is not time well spent in a Human Resource department. The more time a HR Manager can devote to face to face communication, identifying training needs, problems with employee morale and co-coordinating communication between the relevant departments, the better the company will run. Resource Management improves performance, productivity and communication across the board and its role in the success of business cannot be underestimated.

This management has almost replaced the older personnel departments incorporating recruitment, selection, disciplinary action, bonus and reward incentives, training and liaison services among its many other roles. The Human Resource Manager is versatile, professional and unbiased with excellent communication skills making him or her one of the most valuable assets on the company payroll.

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Background:

Southwest Airlines is the largest airline measured by number of passengers carried each year within the United States. It is also known as a ‘discount airline’ compared with its large rivals in the industry. Rollin King and Herb Kelleher founded Southwest Airlines on June 18, 1971. Its first flights were from Love Field in Dallas to Houston and San Antonio, short hops with no-frills service and a simple fare structure. The airline began with one simple strategy: “If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline.” This approach has been the key to Southwest’s success. Currently, Southwest serves about 60 cities (in 31 states) with 71 million total passengers carried (in 2004) and with a total operating revenue of $6.5 billion. Southwest is traded publicly under the symbol “LUV” on NYSE.

Facts:

* The first major airline to fly a single type of aircraft (Boeing 737s)

* The first major airline to offer ticketless travel system wide including a frequent flier program based on number of trips and not number of miles flown.

* The first airline to offer a profit-sharing program to its Employees (instituted in 1973).

* The first major airline to develop a Web site and offer online booking. In 2001, about 40 percent ($2.1 billion) of its passenger revenue was generated through online bookings at [http://www.southwest.com]. Southwest’s cost per booking via the Internet is about $1, compared to a cost per booking through travel agents of $6 to $8.

Key competitive advantages:

* Low Operational costs / High Operational Efficiency

* Award winning customer service

* Human Resource practices / Work culture

Operations Analysis – Competitive Dimensions:

Southwest clearly has a distinct advantage compared to other airlines in the industry by executing an effective and efficient operations strategy that forms an important pillar of its overall corporate strategy. Given below are some competitive dimensions that will be studied in this paper.

1. Operational Costs and Efficiency

2. Customer Service

3. Employee/Labor Relations

4. Technology

1. Operational Costs and Efficiency

After all, the airline industry overall is in shambles. But, how does Southwest Airlines stay profitable? Southwest Airlines has the lowest costs and strongest balance sheet in its industry, according to its chairman Kelleher. The two biggest operating costs for any airline are – labor costs (approx 40%) followed by fuel costs (approx 18%). Some other ways that Southwest is able to keep their operational costs low is – flying point-to-point routes, choosing secondary (smaller) airports, carrying consistent aircraft, maintaining high aircraft utilization, encouraging e-ticketing etc.

Labor Costs

The labor costs for Southwest typically accounts for about 37% of its operating costs. Perhaps the most critical element of the successful low-fare airline business model is achieving significantly higher labor productivity. According to a recent HBS Case Study, southwest airlines is the “most heavily unionized” US airline (about 81% of its employees belong to an union) and its salary rates are considered to be at or above average compared to the US airline industry. The low-fare carrier labor advantage is in much more flexible work rules that allow cross-utilization of virtually all employees (except where disallowed by licensing and safety standards). Such cross-utilization and a long-standing culture of cooperation among labor groups translate into lower unit labor costs. At Southwest in 4th quarter 2000, total labor expense per available seat mile (ASM) was more than 25% below that of United and American, and 58% less than US Airways.

Carriers like Southwest have a tremendous cost advantage over network airlines simply because their workforce generates more output per employee. In a study in 2001, the productivity of Southwest employees was over 45% higher than at American and United, despite the substantially longer flight lengths and larger average aircraft size of these network carriers. Therefore by its relentless pursuit for lowest labor costs, Southwest is able to positively impact its bottom line revenues.

Fuel Costs

Fuel costs is the second-largest expense for airlines after labor and accounts for about 18 percent of the carrier’s operating costs. Airlines that want to prevent huge swings in operating expenses and bottom line profitability choose to hedge fuel prices. If airlines can control the cost of fuel, they can more accurately estimate budgets and forecast earnings. With growing competition and air travel becoming a commodity business, being competitive on price was key to any airline’s survival and success. It became hard to pass higher fuel costs on to passengers by raising ticket prices due to the highly competitive nature of the industry.

Southwest has been able to successfully implement its fuel hedging strategy to save on fuel expenses in a big way and has the largest hedging position among other carriers. In the second quarter of 2005, Southwest’s unit costs fell by 3.5% despite a 25% increase in jet fuel costs. During Fiscal year 2003, Southwest had much lower fuel expense (0.012 per ASM) compared to the other airlines with the exception of JetBlue as illustrated in exhibit 1 below. In 2005, 85 per cent of the airline’s fuel needs has been hedged at $26 per barrel. World oil prices in August 2005 reached $68 per barrel. In the second quarter of 2005 alone, Southwest achieved fuel savings of $196 million. The state of the industry also suggests that airlines that are hedged have a competitive advantage over the non-hedging airlines. Southwest announced in 2003 that it would add performance-enhancing Blended Winglets to its current and future fleet of Boeing 737-700’s. The visually distinctive Winglets will improve performance by extending the airplane’s range, saving fuel, lowering engine maintenance costs, and reducing takeoff noise.

Point-to-Point Service

Southwest operates its flight point-to-point service to maximize its operational efficiency and stay cost-effective. Most of its flights are short hauls averaging about 590 miles. It uses the strategy to keep its flights in the air more often and therefore achieve better capacity utilization.

Secondary Airports

Southwest flies to secondary/smaller airports in an effort to reduce travel delays and therefore provide excellent service to its customers. It has led the industry in on-time performance. Southwest has also been able to trim down its airport operations costs relatively better than its rival airlines.

Consistent aircraft

At the heart of Southwest’s success is its single aircraft strategy: Its fleet consists exclusively of Boeing 737 jets. Having common fleet significantly simplifies scheduling, operations and flight maintenance. The training costs for pilots, ground crew and mechanics are lower, because there’s only a single aircraft to learn. Purchasing, provisioning, and other operations are also vastly simplified, thereby lowering costs. Consistent aircraft also enables Southwest to utilize its pilot crew more efficiently.

E-Ticketing

The idea of ticketless travel was a major advantage to Southwest because it could lower its distribution costs. Southwest became electronic or ticketless back in the mid-1990s, and today they are about 90-95% ticketless. Customers who use credit cards are eligible for online transactions, and today Southwest.com bookings account for about 65% of total revenue. The CEO Gary Kelly thinks that this idea would grow further and that he wouldn’t be surprised if e-ticketing accounted for 75% of Southwest’s revenues by end of 2005. In the past, when there was a 10% travel agency commission paid, it used to cost about $8 a booking. But currently, Southwest is paying between 50 cents and $1 per booking for electronic transactions that translate to huge cost savings.

2. Employee and Labor Relations

Southwest has been highly regarded for its innovative management style. It maintains a relentless focus on high-performance relationships and its people-management practices have been the key to its unparalleled success in the airline industry.

Mission Statement

To Our Employees

“We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.”

The Southwest mission statement shows that the company has a strong commitment to its employees. The company affords the same respect to its employees that is provided to its customers. The Southwest mission statement is unique in that it recognizes the importance of its employees within the broader business strategy, which emphasizes superb customer service and operational efficiency. The employees reciprocate the respect, loyalty and trust that Southwest demonstrates. Southwest employees are known for their loyalty, dedication, attitude and innovation. The employees are the distinguishing factor between Southwest and the rest of the airline industry.

Hiring

Southwest hiring policy is unique not only within the airline industry, but also more broadly, and revolves around finding people with the right attitude that will thrive in the Southwest culture. Extensive procedures are employed to hire for positive attitude and dedication. Those who do not posses those qualities are weeded out. Colleen Barrett, a non-operational officer at Southwest, states that

“Hiring is critical, because you cannot institutionalize behavior. Instead, you must identify those people who already practice the behaviors you are looking for. Then you can allow Employees to be themselves and make decisions about Customer service based on common sense and their natural inclinations.” 1

Recruiting and interviewing at Southwest is a two-step process. The first step is a group interview, conducted by employees, where communication skills of potential candidates are evaluated. The next steps in this process are one on one interview, where the candidates’ attitudes and orientation toward serving others are evaluated. These hiring criteria apply to all job functions since all Employees at Southwest play a customer service role. A critical part of Southwest operational strategy is that every job at Southwest is a customer service position, whether it directly applies to the customer or whether it is internal.

The table below shows that even though Southwest is the most heavily unionized airline, at approximately 80%, that contract negotiations between the unions and Southwest are much shorter in duration than of the other major carriers. This shows the quality of relationship that Southwest has with its employees and with the unions that represent them.

Culture

Southwest was created as a different kind of company and from its beginnings a unique culture was nurtured. In 1990 Colleen Barrett formed the Southwest Culture Committee. This is unique within the industry and among all large companies. The committee also has a mission statement:

“This group’s goal is to help create the Southwest spirit and culture where needed; to enrich it and make it better where it already exists; and to liven it up in places where it might be “floundering”. In short, this group’s goal is to do “whatever it takes” to create, enhance, and enrich the special Southwest spirit and culture that has made this such a wonderful Company/Family.”

It is this unique approach to company values that has created a culture that differentiates itself from others. Southwest’s culture is the reason why it is successful.

3. Customer Service

The Mission of Southwest Airlines

The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.

Approach

Herb Kelleher, founder of Southwest, has been quoted as saying that “We’re in the Customer service business; we just happen to provide airline transportation”.2 Award winning customer service is a distinguishing characteristic of Southwest and it is referred to internally as “Positively Outrageous Service”. It means that from the top to bottom everyone does whatever he or she can to satisfy the customer. This includes Herb Kelleher, who has been known for helping out baggage handlers on Thanksgiving. It is through emphasizing the customer and employee that Southwest is able to differentiate itself from others in the airline industry. On a more technical level, each employee or group within Southwest has his or her own customer. This means that every employee ‘serves’ in one way or another despite not being directly involved with the passenger. The mechanic’s customer is the pilot and the caterer’s is the flight attendant.

Results

It can be said that the “Positively Outrageous Service” that is unique to Southwest “is not the result of a department, or a program, or a mandate from management. It is not secondary to the product; it is the product.” This approach creates the conditions where Employees are more likely to treat customers in ways that distinguish the company from others. There are numerous accounts of passengers who have received exceptional treatment from Southwest employees.

The question that needs to be answered is how Southwest’s customer service is different and why? Is it common for customers of other airlines to rave about their special service? The answer is that it is not. While Southwest does not have a monopoly on people who are kind and who are willing to go above and beyond to satisfy a customer, such behavior is nurtured at Southwest to a much greater extent.

It can then be concluded that the customer service that is inherent to Southwest is a part of its culture. This culture is supported through employee encouragement to do the extra to satisfy the customer. This approach inspires people who would ordinarily only on occasion go out of their way to help someone, to become consistent performers that offer exceptional service all the time. Southwest employees are what differentiate its customer service from the other airlines.

4. Technology

Southwest utilizes technology in many ways to fulfill its business objectives and maintain its efficient operations. According to its CEO, technology equals productivity. Launched in 1996, ticketless travel was first introduced by Southwest. On May 1st 2000, Southwest Airlines introduces “SWABIZ,” a portal that assists company travel managers in booking and tracking trips made through its web site [http://www.southwest.com]. There are many new technology initiatives being undertaken currently and some are in the pipeline.

Bar codes in Boarding Passes

Southwest Airlines has invested $12 million during the past three years to standardize corporate and terminal operations on about 10,000 Dell OptiPlex desktop and Latitude notebook computers according to its company executives. Southwest wanted to replace its well known, brightly colored plastic boarding passes with an electronic system with bar-code paper boarding passes. So it installed about 350 touch screen ticket readers powered by Dell OptiPlex desktops. The bar code gives Southwest more information to automatically reconcile the number of boarding passes with the number of passengers that actually board the plane.

Although the technology will help Southwest Airlines remain efficient by consolidating passenger information for the company’s 3,000 daily flights, there were concerns it could lengthen the time to get travelers on board. However it was found that scanning each bar code on the boarding passes didn’t increase or shorten boarding schedules, but it did take minutes from administrative processes, such as looking up customer records. The new paper bar code system is giving Southwest ticket agents the ability to match a customer record within having to scroll through and log into multiple software screens. The process is much more automated. Once the bar code on the boarding pass is scanned at the terminal gate it checks off the person from the passenger list in real time.

The old process was manual that involved finding the information, scrolling through several software screens from reservations to check-in to boarding. The bar code hardware to scan the boarding passes has been deployed. The company is in the process of replacing customer service back-office equipment at airports including at its headquarters in Dallas.

Software Upgrades

Software applications, such as those used by clerks to check in passengers, are being replaced. Southwest Airlines’ internally written “Airport Application Suite” is expected to rollout next year as the company transitions from green screens to Window-based user interface. Similar to Wal-Mart Stores Inc., Southwest Airlines believes in developing in-house the software that runs its operations. The company uses very little off-the-shelf software. There are between 75 and 100 projects in the works each year supported by approximately 900 IT employees.

RFID

Radio frequency identification technology, a favorable alternative to bar-coding for luggage identification, is also on Southwest’s radar. It plans to test RFID technology sometime in 2006. Even though, Southwest is playing a little catch-up with other airlines such as Air Tran, Alaska and Champion Airlines, in many cases they are able leapfrog to more sophisticated applications easily having waited longer.

Challenges:

Southwest has emerged very successful, despite the most troubled times in the airline market. However, it faces new challenges in the face of increasing competition from other low fare airlines such as JetBlue, ATA airlines, America West.

Reserved Seating

Due to increasing security guidelines since September 2001, Southwest would need to prepare for assigned (reserved) seating to track its in-flight passengers. This change will involve large technology investments and may impact its gate operations negatively since the current way of unassigned seating has helped in quick gate turnarounds.

Passenger Demand

The keep-it-simple philosophy has served Southwest well. But as its own business grows and grows more complex, with plans to purchase dozens of new aircraft and an expected upsurge in passenger traffic to about 80 million boarding’s a year, the simplicity strategy that has been reflected in the airline’s IT philosophy is evolving. The CIO Tom Nealon says that “It’s time to adapt our business processes for efficiency. As our airline scales for us to provide the same kind of high-touch customer service, we have to automate a lot of things we’ve been able to do without technology previously. The challenge is doing that without conceding the customer touch.” Southwest is also aggressively pursuing customer relationship management (CRM) techniques and has applications to get insight into customer’s wants and dislikes. According to an interview with its CEO Gary Keller, Southwest has its focus on improving in two areas – customer’s airport experience and in-flight experience.

In-Flight Entertainment

In an overall effort to improve customer’s in-flight experience, in-flight entertainment is something that Southwest is currently evaluating and which JetBlue has been very successful at already because of its introduction in its long-haul flights. In comparison, Southwest has 415 airplanes to consider and that represents an investment decision at a whole new dimension. Additionally, Southwest has to consider how things may fit into their environment. At this point, 60% of its service is still very short haul. Southwest needs to be mindful of the fact that a certain approach that has been successful for its competitor may not be necessarily work to its advantage.

Summary:

Southwest has long been regarded as a benchmark in its industry for operational excellence. Southwest Airlines is a fine example of a company that is committed to its core competencies – efficient operations to drive its low cost structure, outstanding delivery of customer service and innovative HR management practices. We hope this paper provided a good insight into Southwest operations, as part of its overall strategy, to achieve success and gain competitive advantage.

References:

1. [http://www.southwest.com] (Southwest airlines official web site)

2. “Southwest keeps it simple” – Air Transport World, April 2005, Pg 36

3. “Around the World on $48 (or So): How High Can Discount Airlines Fly?“ Strategy Management – Knowledge@ Wharton Newsletter Oct 5, 2005

4. TechWeb – [http://www.techweb.com/wire/ebiz/173601227]

5. “Southwest’s Strategy for Success: Consolidate!” – Oracle Magazine (Sept/Oct 2004 edition) http://www.oracle.com/technology/oramag/oracle/04-sep/o54swest.html

6. “Southwest Airlines: High Tech, Low Costs” – Eweek.com, April 2005

7. “Jet Fuel Hedging Strategies: Options Available for Airlines and a Survey of Industry Practices” – Kellogg School of Management Research Paper, Spring 2004

8. Winning Behavior: What the Smartest, Most Successful Companies Do Differently, Terry R. Bacon and David G. Pugh, 2003

9. Time Magazine, Oct 28th 2002 issue, Vol. 160 Issue 18, p. 45

10. “Wings Of Change”,Information Week, March 28, 2005,

11. Labor Contract Negotiations in the Airline Industry, Monthly Labor Review, July 2003, page 24

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Punctuation marks are just as important as your grammar. The incorrect placement of punctuation marks can give different meaning. It can change what you are trying to say in your writing and it can create confusions to your reader. Choosing the right punctuation marks to use is a less difficult thing to do than knowing the exact place and time to use it. Some can get confuse as to where to place it exactly. If you are one of those some who gets confused with the correct placement of punctuation marks, then the online punctuation checker can be such a big help to you.Such a checker program is a lot easier and faster to use than getting the software version of it. It is more convenient to use in many ways. One example is, basically you do not have to install it. Installation will take some of your precious time away and time is gold. Second is, most of these programs are not a freeware. You have to buy it, that will take away some of your money and admit it or not, money is such of importance these days. Third is, if you do not have your personal computer and you are just doing your work in the Internet café, this text checking solution will be much of a convenience to you. No need to install the software over and over again each time you enter an Internet café.

An online punctuation checker helps you in various ways. Aside from its main use which is to check for punctuation errors in your work, it can also be a help in saving some of your time. With such a document checking engine, you will definitely spend less time in checking your work for punctuation errors or likely you will spend no extra time at all. It will do the checking, scanning and corrections for you, all in a hassle free way. With correct placement of punctuation marks, definitely it is easier to read and understand your writing. It is a good thing for both your reader and you.

It is better to use a online punctuation checker if you do not want the risk of putting unwanted virus in your personal computer through installing the free versions of the software. You can never tell what trouble it can give you until you successfully installed it in your personal computer, better to be safe than sorry. Avoid punctuation errors with the latest tools, easy to use and absolutely no installation needed!

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If you are one of the many businesses that have Windows Server 2008, then you may have had the unexpected pleasure of having a Domain Controller fail on you. Now if you do not know what the domain controller is then you are in for a treat. The domain controller is only the most important computer within your Windows Server 2008 domain. But, on the other hand, you may have had a technician install this beast of a computer. I put this lightly. The domain controller is a power server but it does not have to be put on a very powerful box. What you do need to do is make sure that it is redundant. So, what should we do if the domain controller does go down and we have another domain controller? Well, first, I want to tip my hat to you. Not many companies know the importance of having more than one domain controller in their environment. Let’s digress a little. Why do you want to have multiple domain controllers? See, the domain controller does several different things. It has roles such as the Schema master, Domain Naming Master, RID Master, Infrastructure Master and PDC Emulator. These control the overall environment. Let’s go over some definitions. Don’t go to sleep on me. We will be getting to the good stuff soon enough.

Schema Master

Now you are asking, what is a schema? The schema is just a database. If you have used Excel or Access in the past then you have been exposed to a database. The schema is a database. Now the schema is composed of Classes which are the Tables and Attributes which are the fields. So, the Schema Master controls the updates to the schema. So, you can say that this is relatively important server. It only controls every entry that we make into the Active Directory Domain Service utility called ADUC which is short for Active Directory Users and Computers. This role is located on the first domain controller that is added to the Forest by default. There is only one Schema Master per Forest. When you update the schema which is known as extending the schema, you need to be in the same Forest as this domain controller.

Domain Naming Master

So, what is the definition of a domain? A domain is a logical grouping of computers where the domain controller is the central repository for accounts, security and policies. The Domain Naming Master is in charge of keeping track of the adding and deletion of more domains within the environment. This role is located on the first domain controller that is added to the Forest default. There is only one Domain Naming Master in the Forest.

PDC Emulator

Remember the old Operating System know as Windows NT 4.0. It was the predecessor to Windows Server 2008. Well in the old days which is really little over 10 years, the main domain controller was known as the Primary Domain Controller. So, that is where this role comes into play. It takes the place of the Primary Domain Controller. The main service that it controls is time. If this puppy is not functioning right then you whole environment will suffer. This role is located on the first domain controller that is added to the Forest by default. Now unlike the other roles, the PDC Emulator is located in every domain in the Forest. But, there is only one per domain. This is one of the most important servers in the Domain.

RID Master

The unique identifier for a database is known as the primary key. Well the primary key that provides uniqueness within Active Directory Domain Services is the SID which is known as the Security ID. The RID Master controls the RID Pool for the domain. The RID is the Relative Identifier. When we run out of RIDs then we will not be able to add additional security principals such as accounts. Here is a tip do not recover this server. If you bring this server on at the same time as another RID server then you will have a majorly messed up domain. This role is located in every domain in the forest but only one per domain.

Infrastructure Master

This is an odd animal. The main purpose of the Infrastructure Master is tracking movement within the domain. This needs some clarification. We are not talking about Big Brother. Well, maybe. The Infrastructure Master tracks the moving of an object (account) from one OU (Organizational Unit) to another or domain. Now the reason I call this an odd animal is because it should not be on the same server as the Global Catalog. Ok, I know we are about to go over the threshold limit of the human mind. But, the Global Catalog has a copy of every attribute in the Forest. This will be covered in another article. Back the Infrastructure Master, this role is also located in every domain and there is only one per domain.

Whew, I know that is a lot to remember. But this is important. See, remember our problem…. The domain is down. If you only have one domain controller is contains all of these roles. HELLO, can you see where we are going with this. Make sure you have more than one domain controller per domain. Ok, here is another topic. Replication. No this is not cloning but similar. The domain controllers in the Forest replicate there information to each other. This introduces another term multi-master replication. This just means that they have the same settings as the other guys. Anyway, we come into work and find that the #1 domain controller has bit the dust. Don’t panic we can fix this. Take a coffee break and realign your thought process.

To the Rescue

So, we have a pretty bad situation. Users cannot logon; email server is down, yada yada yada. So, here is the good stuff. How do we get our domain back up and functioning? Call me of course. Just kidding. This article is here to instruct you on how to recover from this disaster. Before can do this we need to use one of two tools ADUC (Active Directory Users and Computers) or ntdsutil. Of the tool tools, ntdsutil will allow us to everything that we need to do. Ok, are you ready…..

Recovering From Disaster

Step 1. Go to the second domain controller (will Call this Jupiter). Logon with administrative credentials

Step 2. Bring up the command prompt. Type cmd at the run command prompt or access it from the Accessories menu under Programs on the menu

Step 3. Type ntdsutil at the command prompt and press Enter

Step 4. Type roles at the ntdsutil prompt and press Enter

Step 5. Type connections at the roles prompt and press Enter

Step 6. Type connect to server Jupiter at the connections prompt and press Enter. You will be presented with a message saying you are connected and using current credentials

Step 7. Type quit at the connections prompt and press Enter. This will return you to the roles section

Step 8. Type seize Schema Master at the roles prompt and press Enter. This will take over the Schema Master role and give it to Jupiter.

Step 9. Type seize Naming Master at the roles prompt and press Enter. This will take over the Domain Naming Master role and give it to Jupiter

Step 10. Type seize PDC at the roles prompt and press Enter. This will take over the PDC Emulator and give it to Jupiter

Step 11. Type seize RID master at the roles prompt and press Enter. This will take over the RID Master and give it to Jupiter

Step 12. Type seize infrastructure master at the roles prompt and press Enter

Right now you are probably saying that is a lot of steps. We are complete with the first part. WHAT, there is more? Hold on don’t get antsy this will have take only about 5 hours. Just kidding. This whole process will take about 10-20 minutes. You will be the savior of the network. All righty then, on to the next part. By the way, the steps that are shown can be re-ordered when it comes to seizing. The commands are not case sensitive either.

Cleanup Time

Now in the beginning of the article, I pointed out each of the different roles and their purpose. Well we forcibly took over the roles. The other domain controller is still offline but still theoretically has those roles. If we were to bring that domain controller up again there would be major confusion. Also, Active Directory Domain Services does not know who to replicate changes. The KCC (Knowledge Consistency Check) is looking for the partner. The partner is no longer available. We need to clean up this mess and quickly.

Step 13. Type quit at the roles prompt and press Enter. This will take us back to the beginning.

Step 14. Type metadata cleanup at the ntdsutl prompt and press Enter. This routine will get rid of the SRV records lingering in DNS and also records of the other domain controller in Active Directory Domain Services database the Schema.

Step 15. Type select operation target at the metadata cleanup prompt and press Enter. We need to identify the downed domain controller.

Step 16. Type list sites at the select operation target prompt and press Enter. This will list the sites within the Forest

Step 17. Type the # associated with the Site which the downed domain controller is part and press Enter. This will select the site which has the records for the downed domain controller

Step 18. Type list servers in the site at the select operation target prompt and press Enter. This will list the domain controllers that are in the Site

Step 19. Type the # associated with domain the down domain controller and press Enter. This will select the domain with the downed domain controller

Step 20. Type quit at the select operation target and press Enter. This will take you back to the Metadata Cleanup section

Step 21. Type remove selected server at the metadata cleanup prompt and press Enter. This will remove the records within Active Directory Domain Services

Step 22. Type quit at the metadata cleanup prompt and press Enter. Takes you back to the beginning of ntdsutils

Step 23. Type quit at the ntdsutil prompt and press Enter. Quits the ntdsutil utility

Step 24. Check ADUC, DNS etc. Ensure that you can open ADUC. You may have to change focus of the domain controller.

Step 25. Take old domain controller off line and reinstall Windows Server 2008 and dcpromo it

Wow, what an ordeal. Just think if you did not have another domain controller within your Forest. Do yourself a favor and make sure you have more than one domain controller in your environment. There is a lot more that we can teach you. But, we will leave that for another article. Right now, go get that cup of coffee, high five your staff and relax. Your domain is back up and running. Now go change some passwords and play Halo at your desk. Oops, did I say that. See you later.

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Nine out of ten new businesses fail within their first year. This is an alarming statistic that may in fact be more of a myth than truth. However, recent data suggests the same trend just not as extreme. According to Brian Headd and data from the U.S. Census, a more realistic figure suggests that 62% of businesses close within the first six years of operation (Headd 2). This raises the question of: What makes a successful business? By analyzing and dissecting the intricacies of Lincoln Electric’s consistently stellar performance as well as paying close attention to several interesting financial pitfalls an answer can be found.

Value in the Individual

An organization at its core is made up of individuals and equipment. Now which of these has the most influence over the success of that organization? Most emphasis must be placed on the individual because he is the one that can be creative, motivated, skilled, efficient, and responsive. The proper function of management is to draw out these characteristics and encourage their growth in a productive setting. A large portion of Lincoln Electric’s (LE) success can be attributed to this unique and effective management style which ultimately leads to a competitive advantage. No matter the economies of scale a huge corporation such as GE can offer, the increased productivity level of a properly motivated individual production worker can easily compensate for it. This management style is further fostered through a combination of structural, strategic, and cultural norms within LE.

Structurally, Lincoln Electric aims to flatten the hierarchical structure and eliminate nonfunctional middle management positions. To do this, LE has fostered an “open-door” policy between production workers and executives as well as created an Advisory Board that has representatives of the workers who meet with executives twice a month. Strategically, LE pushes for an integrated approach of maximizing output and reducing costs. Though this seems straightforward and simple, the effectiveness is in the details. Cost reduction will be explored at a later time, but to maximize output, Lincoln Electric draws from its motivated employees. However, these employees are not naturally motivated. This is the role of James Lincoln’s Incentive Management System. This system provides a tool to motivate all employees through bonuses that redistribute a large portion of the corporation’s yearly profits. Two main results stem from this redistribution. First, there is a heightened sense of ownership in the company from top to bottom because if the company as a whole does well, everyone is compensated for it respectively.

Secondly, there is increased personal performance. This performance boost is the result of a sort of quiet competition within each work group. A specific bonus pool dollar amount is allotted to each work group, and the bonuses are then distributed to the members of that group according to their quantified relative performance on the semi-annual Merit Rating. Now the Merit Rating’s function is to counteract some of the pitfalls of a strategy based on speed and efficiency. Generally the result of an emphasis on speed is the sacrifice of quality and safety. Each tenet of the Merit Rating (including Dependability, Quality, Output, and Ideas/Cooperation) is a reaction to the common shortcomings of a traditional production worker. By being rewarded for attendance, work quality, and contribution of ideas on top of their piecework output leads to a well-rounded final product that is produced at the proper specifications in record time.

To further the speed of production, LE places a strong emphasis on idea generation and worker input. This allows for creative ideas and suggestions on the production process to be spread over the whole corporation. As a result, there is a strong and steady increase in LE’s productivity per worker. The Merit system also serves to increase coordination by rewarding teamwork while at the same time introducing an element that is historically known to be one of the greatest efficiency drivers of all time: competition. Though this seems like teamwork and competition would be in conflict, they are not. Since there are only a certain number of possible Merit Points available, competition over these points between members of the work group exists. However the total payoff at the end of the year is split up based on the profit of the corporation as a whole; therefore encouraging teamwork and idea sharing. This comprehensive Incentive Management System unifies the direction of the workforce and leads to a balanced and efficient set of goals that yields a strong competitive advantage over rival companies. In a commodity industry it is the process, not the product, that must prevail and be differentiated. Lincoln Electric has found the perfect process, but is it a universal process that can apply overseas?

Cost Reduction and Market Expansion

The blind pursuit of profit can easily lead to poor decision-making. That is why the means to creating income is vital. The question is how does a company increase margins? Two simple choices exist: Reduce costs, or increase output through expansion and efficiency. Lincoln Electric has identified this dynamic duo and integrated it into the general business strategy. To reduce costs, LE uses a variety of strong business tactics. There are three shifts on equipment, so it is constantly rotated and allows for no downtime on equipment. This prevents having excess capacity which leads to unnecessary overhead costs. Also, LE has aimed to flatten the structure of the company and eliminate levels of the organization that detract from the established open communication environment between workers and management. This reduces salary expenses and ultimately increases profit margin.

The concept of guaranteed employment is another brilliant cost-reducing idea of James F. Lincoln. The cost of retaining employees on payroll is less than the cost to recruit and train motivated and creative workers. As a result, during downturns, LE did not layoff workers but would retrain and deploy them elsewhere in the company. This would encourage loyalty to the company and highly reduce employee turnover, once again reducing cost to Lincoln Electric through a variety of quantitative as well as qualitative means. Lastly, there is the concept of limited benefits enhanced profits. This enhancement reflected back to bonuses and worker’s piecework compensation which put more control in the hands of the individual with the allotment of money and compensated for their lack of benefits. LE’s approach to maximizing output was explored previously, and the general consensus was a focus on developing a creative, motivated, and efficient production worker who consistently puts out more effort than a similar production worker in another firm. Another option to increase output is expansion into other markets.

Lincoln Electric first expanded to Canada by opening a manufacturing plant in Toronto in 1925. About twenty years later, LE Canada adopted the Incentive Management System (IMS) including its annual bonus and piecework facets. Due to the similar cultural norms between the U.S. and Canada, this adjustment flowed smoothly. However, poor decision-making led to this application of the IMS in other markets, including Europe and South America. Friction resulted because the cultural values of the production worker are different. Also, government regulation in Germany and Brazil led to major adjustments that undermined LE’s incentive efforts. In Europe, workers valued benefits such as vacation time over annual bonuses. It was discovered that annual bonuses did little to increase individual production efficiency without the piecework aspect of the IMS. Piecework was in fact illegal in Germany.

Obviously if more planning or research had been done, this crucial fact would have been discovered and LE would have avoided expansion into Germany. The root of Lincoln Electric’s troubles began with the quick expansionist mindset of George Willis. The main trouble was the speed of the expansion. LE incurred long-term financial debt for the first time in the corporation’s history. The added interest expense and permanent liability hurt future income statements heavily. A study of Lincoln Electric’s Consolidated Income Statement as well as the Balance Sheet reveals some interesting financial facts.

Starting in 1987, LE had no long-term debt. This skyrocketed along with the push for expansion in subsequent years to over $220 million in 1992. As the Income Statement suggests, the height of this long-term debt matches with the first net loss of Lincoln Electric. Failure to control spending and keep costs low (the historical competitive advantage of LE) undermined the desire to increase output through expansion. Another interesting fact is that as sales leveled off in 1992 and 1993, general costs and expenses failed to coincide so they continued to rise until 1994 which happens to also be the first posted net income after the losses of 1992-93.

This analysis of cost-reduction and market expansion raises several questions. How can Lincoln Electric prevent similar losses in the future? How closely correlated is the 1992-93 net loss with geographic expansion? What can Lincoln Electric do in the future to maintain its historical rapid growth and competitive advantage?

Recommendations

So decision time has come about Indonesia. Is Indonesia ready and willing to match up with Lincoln Electric’s strategy, or will it repel the incentives that are the key competitive differentiators? After analysis of Indonesia’s economic and financial situation, I recommend slow expansion into their welding market. The current distribution network of Tira and SSHJ should be altered so that it can be refined and expanded. Though smaller, SSHJ’s strategy coincides with LE’s more so than Tira’s strategy. I suggest using only SSHJ salespeople because they highlight the cost-savings and benefits of Lincoln Electric’s products while aiming to draw in new customers via LE’s name recognition and reputation for high-quality. LE should utilize cooptation to provide the company with local contacts and recommendations so that previous errors in incentive management can be addressed and altered. Exact details of my recommended Indonesian expansion are specified in the following list:

o Combination of piecework and salary with a salary representing a figure slightly lower than the average Indonesian manufacturing worker wage of 250,000 rupiah.

o No annual bonus because the economy is so shifty and volatile that it would most likely not affect daily effort.

o Guaranteed employment would exist through the understanding that economic change would not threaten a workers job. Job security would encourage intense loyalty and be a strong factor in building a consistent workforce.

With this comprehensive entry strategy into the Indonesian market, I feel that Lincoln Electric will only be met with success. This strategy encompasses the strongest aspects of LE’s Cleveland incentive system while tailoring it to be profit-maximizing in the specific Indonesian environment. Gillespie should have no worries as he presents these plans to his colleagues because the foundations of this plan are rooted in the historically successful traditions of Lincoln Electric, and have been adjusted to compensate for the differences that hindered previous global expansion.

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When a file is saved on a computer, the data is stored on the hard disk platter’s magnetic coating. This magnetic coating on the platters is the ‘glue’ that keeps your data. Any damage to that magnetic coating means that there is data loss as each piece of missing coating contains data. So a platter missing a little bit of that coating has a better chance of a successful data recovery as opposed to a platter that has had massive amounts of that magnetic coating removed or destroyed.

Hard Drive Failure Parts

Typical hard disk components that fail include:

Platters Hard disk platters, or spindle, is rotated by an electric motor. The speed of this rotation is measured in rotations per minute (RPM) and the higher the performance of the hard drive…the higher the RPM is which increases the reading and writing of data to the platters. Any surface contact to the platters can cause serious damage to the magnetic strip the contains the data. This includes dust, finger prints, water, and most important of all, the heads of the hard drive. Platter damage is the most serious type of damage to cause hard drive failure.

Heads (Head Crash) When the hard disk is not actively in use, the heads are parked until the hard drive needs to read or write data again. It is when this head moves outside the super thin cushion of air between platters that causes the head to crash and touches the hard disk platter.

Firmware Firmware is the program instructions located on the chips on the Printed Circuit Board (PCB). Each firmware revision is specific to its hard drive type and each hard drive can go through dozens of firmware revisions to increase that particular manufacturer’s disk drive’s performance. The older the hard drive, the more difficult it could be to find a working firmware for that specific hard disk model.

Printed Circuit Board (PCB) The PCB of the hard drive is the electronics of the hard disk that manages and operates the hard drive. If a PCB becomes damaged it is often replaced with an identical PCB with the same firmware on the original hard drive. Typically PCB damage is from water or fire, but there are other reasons why a PCB would fail. And many times a failed PCB affect other aspects like firmware or heads.

Types of Hard Drive Failure

Generally speaking, when a disk drive fails it is due to one of the following causes:

Media Failure Otherwise known as a head crash (as described above), the heads of the hard drive have physically touched and damaged the magnetic coating on the platters.

Mechanical Failure Generally speaking, any electronic failure to the hard drive falls in this category. Fire, water, electrical damage to the hard disk would require ‘parts’ replacement.

PCB Failure As described above, PCB failure falls in the mechanical failure type and typically can be ’swapped out’ for an identical PCB for that specific hard drive type. Along with the correct firmware for that disk drive, a PCB replacement can be a difficult type of hard drive repair if the hard drive is an older model.

Logical Drive Failure This type of hard drive failure is usually the least damaging to the data. This type of error usually means that the operating system of the computer (or utilities) can see the drive, has marked it as unallocated space, but because the computer’s MFT is corrupted or damaged, can’t read the data. Hard drive failure of this type is not that destructive and the chances of a complete successful data recovery are high.

Types of Non-Mechanical Hard Drive Failure

Other causes for data loss and why data recovery would be required could include the following:

Natural Disasters Extreme weather conditions that are out of our control can make a bad day even worse. Whether the computer was submerged in water due to a flood, scorched by fire or in the proximity of a lightning strike, there is still a chance to recover data from the hard drive.

The Human Factor Accidentally deleting files, formatting the wrong hard drive, and attempting to upgrade you operating system only to have it fail are common issues that come up. Also, as careful as most people are with their laptops, a small drop from the couch to the floor or down a flight of stairs, is the type of forceful jarring to the disk drive that could cause serious damage to the hard drive platters.

Viruses E-mail typically are the way most viruses are spread from computer to computer. Also, visiting questionable websites that have scripts, malware or spyware waiting to comprise your system and put your data at risk. It is recommended to run the most recent anti-virus software to protect your data from this sort of data loss and to reduce the need to require data recovery service.

So how do you protect yourself from losing your data? Back it up! However, should you still require data recovery services, be sure to use a company that specializes in hard drive data recovery.

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Question: How do I bypass a Windows 7 account password if the only account I can access is guest? Can I bypass Win 7 password with the guest account? I forgot my Windows 7 administrator password, how can I regain access to my computer without the password?

Recently I met many similar questions. Are you troubled with the same problem, before answering the question, you should understand what a guest account is?

What is a guest account in your Windows 7?

The guest account in your Windows 7 only allows people to use your computer without having access to your personal files. With the guest account, you can’t install any software or hardware, change settings, or create a password. Because the guest account allows a user to log on to a network, browse the Internet, and shut down the computer, you should disable the guest account when it isn’t being used.

Solution: After learning the definition of a guest account, you can understand it is not possible for you to bypass the Win 7 password through the guest account. But you can bypass it, with Windows Password Breaker, a safe and efficient tool for you to reset your Windows 7 password. It allows you to bypass your lost password in less than 5 minutes.

Windows Password Breaker is professional Windows password reset software with 3 editions: Windows Password Breaker Standard, Professional and Enterprise.

It is designed to bypass Windows domain, administrator and user password. With this tool, you can instantly regain access to your locked computer by burning a bootable CD/DVD or USB flash drive on your own. No need to reinstall computer or pay to PC experts when you forgot administrator or domain password on Win 7/Vista/XP/NT and Windows Server 2008(R2)/2003(R2)/2000.

How to bypass Windows 7 password easily?

Step 1: Download and install Windows Password Breaker Professional.

Step 2: Burn bootable CD/DVD or USB flash drive.

Step 3: Set your locked computer to boot from CD ROM or USB.

Step 4: Choose the installation path of Windows, and enter the ID of the path.

Step 5: All Windows account user names will be displayed for you. Enter the ID of a specified User Name to remove its account password.

Step 6: Enter y to confirm and continue your operation.

Step 7: Enter y to remove another Windows account password or enter n to finish your operation when the selected password is removed.

Step 8: Take the burned USB flash drive out of computer and press any key to restart your computer when you enter n to finish your operation.

The Windows 7 administrator password has been successfully reset and now you can access your computer without password. Please note this method to bypass Windows 7 password takes effect only when you log on computer after the password reset.

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An indispensable ground to start any business is to make profit and growth of revenue over time and innovation is the central subject in economic prosperity. Businesses, whether dealing products or services, are facing transformation like never before. Introduction of new or improved product decides the fate of any company these days. Innovation is the successful introduction of specific novel and useful things. It typically resides in the lap of creative ideas, but is not identical to it. Innovation involves acting on those creative ideas to make some specific and substantial differences in the sphere in which the innovation has been done.

However, just coming up with something that is ‘out-of-the box’ doesn’t mean that it will always work, because, the thing that is required more than just the generation of a creative idea is to put that thought into a process of action to make a visible difference to the product or service that is considered to be innovated. Hence innovation typically involves risk. A key challenge in it is maintaining a specific balance between the process and product. According to this viewpoint, creativity can be typically considered as the basis for innovation, and innovation as the successful implementation of creative base into a tangible product or an intangible service. Innovation can be easily distinguished from invention. As Invention is the conversion of cash into ideas and Innovation is the conversion of ideas into cash.

Innovation can be viewed well in the context of businesses. As every organization has a unique stance to face any challenge or adopt any modernization and this viewpoint differentiates one organization from the other. The success or failure story of any business depends largely on how well a system or culture is managed within an organization. This ‘innovative culture’ can often be the difference between a ’successful’ and a ‘not-so-successful’ organization. An organization with a well managed innovative culture almost always expands more rapidly than an organization without this understanding.

Consider the success story of Nokia… one of the first companies to enter the market for cell phone handsets, now has become the undisputed market leader through its high quality and wide product range, in various countries. Instead of relying on importing products with proven technologies in western markets, it carried out extensive study of its customers, got close interaction with them and developed products based on customer insight. Consequently, we got rid of carrying those heavy huge mobile phones of early days and now we enjoy almost every aspect from listening music & taking pictures to internet surfing in our handsets. But it became possible just through the process started from generating a creative thought to the realistic conversion into a “mini-world” for all of us, the way we see it now.

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In recent decades, barcode scanning has become a cost-effective data capture technology for enhancing processes in virtually every industry and market. Low-cost scanning solutions improve performance and reliability in a wide range of enterprise activities and deliver benefits such as increased productivity, improved task efficiency, and reduced operational costs.

Barcode Technology Integrated With Information Systems Can Reduce the Effort of Managing Physical Items

When integrated into an information system, barcoding allows businesses to track merchandise and perform inventory management, asset tracking and field data collection. Inventory can be reconciled in a fraction of the time required for that of manual procedures. Key assets can be tracked by the location where they have been transferred to or by the personnel that have checked them out. Data collection can be performed with fewer errors and barcoding provides more accurate data while saving both time and costs.

Combined with data-collection technology, bar codes provide a rapid, accurate, and efficient means to collect, process, transmit, record and manage data in a variety of industries including retail, warehouse management, medical equipment tracking, construction site equipment tracking, heavy equipment inspections (cranes, forklift), fire extinguisher inspections and fire alarm testing and inspections.

Tracking inventory manually is a laborious process. With barcodes applied to each item in inventory, portable scanners can be used. Barcode inventory control provides accurate, real-time inventory updates. This allows a company the opportunity to reduce stock levels and thereby reduce carrying costs. It also reduces the time taken to collect data for purposes such as annual inventories. With improved efficiency, operating costs are lower.

Reduced cost is the most obvious benefit of barcode data collection. In many cases, this cost savings alone is enough justification for implementing such a system. Reduced revenue losses resulting from data collection errors can however surpass the savings in labor costs.

Although hard to measure, improved management and better decision making due to automated data collection technology could be the best benefit of a barcode system. A barcode system can easily gather information that would be difficult or impossible to gather in other ways. This allows managers to make fully informed decisions that can affect the direction of a department or company. Faster access to information goes hand in hand with better decision-making.

A Broad Range of Barcode Types Exist to Meet the Needs of Many Industries

A barcode is an optical machine-readable representation of data. The mapping between barcodes and the data that the barcode represents is called a symbology. The three primary categories of symbologies are linear (1D), stacked and matrix (2D). The most common barcodes represent data in the widths and the spacings of parallel lines, and are referred to as linear or 1D (1 dimensional) barcodes or symbologies. Linear barcodes are one dimensional, meaning that the unique information is in the horizontal plane and the same information is repeated vertically. The heights of the bars can be truncated without any lose of information. This allows a symbol with printing defects, such as spots or voids, to still be read. The higher the bar heights, the more probability that at least one path along the bar code will be readable.

There are a number of 1D symbologies: UPC (numeric codes found on retail merchandise), Code 39 (numeric, uppercase letters and 7 special characters) and Code 128 (all 128 ASCII characters) are three of the more popular.

Stacked barcodes are a set of linear bar codes stacked on top of each other. An example of a stacked symbology is the PDF417 format used on airline boarding passes.

2D barcodes come in patterns of squares, dots, hexagons and other geometric patterns within images termed matrix codes or symbologies. Although 2D systems use symbols other than bars, they are also generally referred to as barcodes as well. Examples of 2D codes include semacodes which are optimized for use by cell phones and the similar QR codes originating out of Japan.

A 1D barcode can only encode a number or string of characters which can be entered into a database, while a 2D barcode can actually hold the entire database. For example, you can embed an Excel spreadsheet into a 2D barcode, to use as a portable database. Most 2D symbologies can hold at least 2,000 characters per bar code. The typical 1D bar code contains about 10-20 characters.

Not all Barcode Readers Can Read All Barcode Types

Barcode scanners are available with basically four types of readers:

(1) Laser,

(2) linear imagers/CCD,

(3) area imagers and

(4) two-dimensional CCD.

The reader type, and software included, will determine what type of barcode symbologies can be read.

A laser scanner sweeps a beam of light across the barcode in a straight line, reading a slice of the barcode light-dark patterns. Laser scanners can project a beam of light a long distance without diverging, or spreading out, as light from other sources do, enabling them to decode high density bar codes over wide ranges. This proves advantageous in applications that require scanning range flexibility, such as forklift operations where packages are often located on high shelves or hard-to-reach areas.

Stacked linear symbologies are also optimized for laser scanning, with the laser making multiple passes across the barcode. 2-D symbologies cannot be read by a laser as there is typically no sweep pattern that can encompass the entire symbol. Laser scanning is the preferred technology in high-throughput areas that require motion insensitivity, such as supermarkets, where users can rapidly swipe item after item over a fixed scanner, and the required symbology is limited to 1D linear codes.

Linear Imagers, also known as CCD barcode readers, use an array of LED’s and receptors to decode linear barcodes. Linear imager barcode scanners are better for reading damaged or poorly printed barcodes as well as barcodes under plastic film or covering and are ideal for a variety of applications including retail, shipping, receiving, and inventory. CCD readers can scan 1D and 1D stacked linear barcodes such as PDF417. Linear imagers use sensors to capture only a single row of pixels within the image. This allows linear imagers to decode a 1D bar code, but not entire images or 2D bar codes as an area imager can.

Digital area imagers use LED light that illuminates the target bar code. A lens projects the image of the bar code onto a 2D array, and the light is converted to an electrical signal to construct the digital image. Decoder software in the imager locates the bar code within the image, and processes its data using advanced decoding algorithms. Area imagers use sensors with pixels arranged in a 2-dimensional grid (multiple rows) and can read 1D and 2D symbologies.

Cell phones employ two-dimensional imaging scanners. They use a small video camera to capture an image of a bar code. Sophisticated digital image processing techniques decode the bar code. Video cameras use the same CCD technology as in a CCD bar code reader except that instead of having a single row of sensors, a video camera has hundreds of rows of sensors arranged in a two dimensional array so that they can generate an image.

Most smart phone barcode readers can read 2D codes but not all of them can read and decode 1D codes. The factors for consideration here are whether the smartphone camera supports autofocus and whether it has a macro lens. The Android smart phone and some versions of Blackberry’s (the Tour, Storm and the 9700 but this may not be an exhaustive list) meet this criteria. As of the writing of this article, the iPhone does not have a camera lens with auto-focus but there is an app that is optimized to read the numeric UPC and EAN codes of retail products.

There are some special purpose Windows Mobile/Pocket PC and to a lesser extent Palm OS devices that have barcode scanning capability. These are typically high-end rugged devices that cost in the $1500-$4000 price range. One of the companies in this space, Trimble, offers an Android version of their Trimble Nomad rugged handheld.

Smartphones with Barcode Reading Capability Links Physical Assets to Wide Area Communication and Information Networks

Smart phones are well recognized as consumer electronic devices with a number of personal productivity applications and the Blackberry is vital for many to stay in contact with the office and with clients. Smartphones can also be a game changing tool for savvy businesses to optimize core operations. Smart phones communication capabilities with voice, text and email are obvious uses, however they can also function as data collection devices. Their ability to operate with the physical world via barcode scanning and image and voice capture, along with their ability to operate with the virtual world via web-enabled applications that can communicate with software services that exist in the “cloud”, offer some unique capability to securely create, update, disseminate and manage business information from anywhere and at anytime.

Three functional areas that have broad applicability are inventory management, asset tracking and field data collection. Most businesses leverages one of these capabilities and many can benefit from all three. Most businesses have some form of inventory with retail and warehouse management being markets that can obviously benefit from an inventory management system. Most businesses have some form of assets and industries as diverse as health care and construction can benefit from an asset tracking system. Many businesses have the need to collect data from a location that is not tethered to a desk. This includes inspectors, field service personnel, home inspectors and installers. In many cases, the field data impacts safety and compliance. Electronic capture increases productivity, reduces errors and reduces oversights.

Inventory Management is Concerned with What You Have, What You Need to Order and What You Cannot Account For

Inventory management is concerned with maintaining optimal inventory levels to ensure that items are available when needed (for purchase by external customers or consumption by internal organizations). This includes knowing current stock levels, knowing which items (colors and sizes) are selling well and how much is unaccounted for.

Inventory Control software lets you see what you sold, what you need to order and what should be left in stock. Barcode technology can be used to track stock accurately and update current stock levels. As shipments come in, warehouse workers scan bar code labels on items, cartons, or pallets. The scanned information is verified against purchase orders and sent to the inventory software for update.

Retail Inventory Management Tracks Counts of Individual Items at the Point of Sale

Retail inventory management is the process and methods used to keep track of the stock in a retail business. These methods control everything from ordering, shipping, receiving, tracking inventory, retail turn-over, and storage. The objective is to see what is selling and what is not. Products that spend more time on the shelf should be re-evaluated or discounted to get rid of them. Barcode inventory management allows retail businesses to know what they have and where it is. You’ll be able to receive, put away, move and ship out (to internal or external users) all the items you have in inventory. Barcodes represent a time efficient means to managing retail inventory, making sure that products are always removed from the system as soon as they are sold. The same is true for receiving shipments of new stock and performing audits regularly to make sure the computerized system is accurate with what is actually in stock. Smartphone technology and inventory management software can provide every business an affordable means to perform inventory management. Even part-time eBay businesses can benefit cost-effectively.

Warehouse Management Tracks the In-flow, Inspection and Out-Flow of Palettes of Items

A warehouse inventory management system handles all aspects of inventory movement, from receipt to shipping platform. The software tracks inventory based on each SKU (stock keeping unit) and its location within the warehouse. The system will also track all inventory changes, sales and receipts of each SKU.

The inaccuracies of manual data recording and data entry are magnified as the number of transactions grows. Errors that are in your favor result in customer or vendor complaints and errors that are not in your favor may go unreported.

A warehouse management system incorporates an inventory control application designed for routine cycle counting. This software will determine which inventory to count, track these counts, and report any inventory irregularities.

A barcode warehouse management system offers efficiencies over manually accomplishing these tasks. Smartphones as part of a warehouse management system allows a single device to track inventory with the barcode capability, reorder stock using the web capability, and reconcile discrepancies with employees, suppliers and customers using the communication capabilities.

Asset Tracking is Concerned with Knowing Where Your Equipment (Tools, Computers) Is

Asset tracking refers to the ability to locate, identify, and assign assets to an organization, location or person. Assets are different than Inventory in that assets are re-used, and have a useful life of 12 months or more. Examples of assets would be things like torque wrenches, computers, copiers and forklifts. Their value is depreciated over time. Inventory items are consumed by the organization in the course of doing business.

An asset tracking system provides the ability to know the location and status of the assets in the organization, and allows you to do analysis of those assets to determine current status, total utilization, depreciation levels and maintenance requirements.

A barcode system can provide an efficient asset tracking means. Assets can be tracked by location or personnel. Tracking assets by location involves assigning assets to physical places like a room, a building, or a department or GPS coordinates.

Both locations (rooms, construction sites) and personnel badges can be barcoded. Personnel badges can be scanned at checkout and check-in and locations can be scanned when an item is moved from location to another.

Rapidly Tracking Medical Equipment in a Hospital Can Have Life-Saving Consequences

Hospitals routinely need to identify the location of medical equipment for inspections, repairs and for use in clinical procedures. Radio frequency identification (RFID) is touted as one means to accomplish this. A number of hospitals are evaluating this technology though to date there have been a limited number of deployments as there are a number of implementation considerations. The first step in such an implementation is to ensure that all equipment is identified in an asset tracking database. At this step alone, barcode and smartphone technology can be utilized with no further organizational disruption.

Hospital employees can scan medical tools and equipment as they are used, immediately updating inventory and ensuring critical items are replaced as necessary to guarantee they are always on hand for urgent situations. This also accounts for tools after a procedure and prevents loss of expensive equipment. Doctors and nurses can scan patients’ wristbands to access information quickly, right at the point of care. This provides immediate visibility into test results, blood type, and other vital health data, so medical personnel can make informed decisions at bedside, reducing treatment and medication errors based on faulty information.

An Inability to Track Tools at Multiple Construction Sites Can Be Costly

Controlling expensive tools, heavy equipment, and material at a construction site is critical to a successful and profitable project. Managing the tools, equipment and materials at a site can be quite difficult and challenging. With an asset tracking system, tools can be tracked in and out of the tool crib, tool room or from site to site. Tools can be assigned to a location or site manager and critical tool maintenance dates can be managed all in one tool tracking system.

Barcode technology coupled with asset management software allows construction material coming into a site to be tagged and the tag ID used to locate where on the site the material has to be stored. This technology has the potential to speed up delivery of material to the point of use. Using smartphone technology, this can be accomplished with a simple series of barcode scans, from a device that you already use in your everyday business. In some cases, a rugged device will be most appropriate for construction environments.

Field Inspections and Data Collection

Field data collection includes everything from collecting bridge, levee and offshore drilling rig inspection data across a region of a state, to performing food, drug and fire extinguisher inspections in a city, or servicing patients or medical equipment in a health care facility. A lot of field data collection, including safety inspections is captured using clipboard, pen and paper. In some cases the paper forms are later transcribed into a computer and in other cases this critical data is just archived as paper forms. In both cases, this manual process can be error-prone and it is laborious to generate reports and track trends. Barcode technology can be used to rapidly recall that portion of data that rarely changes and ensure that no items are missed when visiting a remote site. Electronic capture of field data introduces a tremendous amount of efficiency to the process and opens up a wealth of opportunity to use collected data to create safer better functioning environments.

Inspecting Every Fire Extinguisher in Every Public Facility Every Month Can Be Daunting

The National Fire Protection Association (NFPA) permits electronic record keeping for fire extinguisher inspection data as an alternative to paper logs. The electronic capture of inspection data reduces the time to perform inspections, reduces time preparing reports, and ensures compliance by identifying units that were overlooked, tracks annual and multi-year maintenance schedules. Each piece of equipment is labeled with a barcode. Each location is also labeled with barcodes, so the user can scan the location, and then scan all the pieces of equipment that need inspection at that location. A smartphone application can issue simple prompts to assist with the inspection. Barcode scanners represent an efficient means to rapidly record data such as unit serial numbers and location identifiers. Smartphones with the appropriate software can be an excellent means to capture fire extinguisher inspection data electronically as well as fire alarm test and inspection data.

Ensuring Heavy Equipment, Rig and Crane Inspections is Critical to Public Safety

Equipment deployed in the field may require interval based inspections and scheduled maintenance. This will include heavy equipment such as cranes. When inspectors go on site, they normally read the crane’s serial number, find its record and then carry out the inspection and make manual notes. Then they send a copy back to the customer. With barcode technology, the inspector’s smartphone can automatically register the crane, so they can start to immediately go through the inspection criteria. Once they press save, the record transmits to the web site, where they can download appropriate certificates and send reports.

Summary

Barcode scanning can deliver benefits such as increased productivity, reduced errors and reduced operational costs. Smartphone technology has the potential to deliver these benefits to budget constrained small businesses and to departments in larger organizations that are concerned about disruptions to enterprise-wide procedures. When coupled with the appropriate software, inventory management, asset tracking and field data collection can be performed efficiently.

Retail inventory and warehouse management are areas that can benefit from efficient inventory capability. Asset tracking of equipment at construction sites where multiple companies are working in the same location, or with critical medical equipment where rapid determination of its location can save lives are important factors for some organizations. Rapid identification and recall of past results is important for mandated fire extinguisher inspections. Scanning asset identification tags on widely distributed heavy equipment such as cranes can help ensure that that the correct equipment was inspected / maintained by scheduled due dates.

These are just a few examples to get you started thinking about what you can do with bar codes. Barcode systems routinely save companies money while improving quality, on-time performance, and other key business factors. Smartphones with barcode reading capability, voice capability and video capture capability represent a convergence of the virtual/information world, communications and the physical world.

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