Pigments, color process for ready-mix concrete

With the Standley Color Batch system, ready-mix companies can incorporate Bayferrox C granulated pigments into a dry-to-wet mixing process to obtain all the advantages of liquid colors, but at a lower cost per yard. The process makes liquid colors on a single-batch basis using the producer’s own water. It uses granular pigments and separately weighs each of four primary colors. Pigment and water are mixed within seconds, and the liquefied pigment is transferred to the mixer. Flushing with water after each batch eliminates color contamination. Lanxess Corp. (formerly Bayer Chemicals), 800-526-9377, www.lanxess.com. Circle 33.

Color and UV Stabilization in Pigmented Injection-Molded Polypropylene

A previous study by Kanu, Spotts, and Chesebrough showed that some organic and inorganic pigments noticeably influence the tensile and impact properties of injection-molded polypropylene.1 As an extension of the previous study, this work examines the influence of the same organic and inorganic pigments on the color and UV stabilization of injection-molded polypropylene, specifically the action of these pigments as nucleating agents in the crystallization process of the semi-crystalline polypropylene. However, since organic and inorganic pigments have different chemical compositions and particle sizes, their action as nucleating agents will differ and consequently determine the degree of influence they exert on the properties of injection-molded polypropylene.
Plastics have made significant contributions to our standard of living. In many applications, such as in medical uses for hip bone and heart valve replacement, plastics are often the preferred material because their inherent properties make them more suitable than traditional materials like ceramics, wood, and metals. For example, Kevlar fibers are used in bulletproof vests and some combat protective helmets because of their high strength-to-weight ratio, and the polycarbonate material known as Lexan is used in ophthalmic lenses because it is lightweight, tough, and transparent.

While intrinsic properties make plastics attractive for many applications, the advantages of this material are only realized when the plastic resins are transformed into useful objects by primary processing techniques such as injection molding, extrusion, blow molding, rotational molding, compression and transfer molding, and thermoforming. However, if not done properly, the fabrication process that not only results in significant benefits can also diminish plastics’ attractive properties. For example, an abnormally high processing temperature employed in a fabrication process such as injection molding can degrade the plastic material, resulting in a finished product with lower mechanical properties and perhaps unacceptable visual effects such as blemishes and burn marks. Another potential disadvantage in the transformation process is the use of additives to achieve specific features in the finished products. For example, flame retardants are used to prevent plastic television casings from bursting into flames in the presence of electrical sparks, and processing aids or lubricants such as waxes are used to improve production of PVC pipes and vinyl sidings. In some cases, additives do achieve the expected results but also cause unpredictable property changes in the finished product; hence, additives may improve a product’s mechanical properties while simultaneously reducing its processiblity. Given this background, the authors examined the effects of some organic and inorganic pigments on the color and ultraviolet (UV) stabilization of injection-molded polypropylene (PP) tensile specimens.

Motivation

There are several studies that have sought to clarify the effects of additives on the physical, mechanical, optical, and rheological properties of polymeric materials. Jaffe et al. investigated Theologically effective organic pigments, and Yu et al. studied the effects of carbon black dispersion on polymer performance.2,3 Other authors like Spano and Steen examined the optical properties of pigmented polypropylene, while Krisher and Marshall studied the effects of pigments on the mechanical properties of polypropylene.4,5 In another study, Charvat et al. examined the shift in color in pigmented plastics after the injection molding of plastic parts.6 Concurrent with these studies is a discussion within the plastics industry concerning the use of both organic and inorganic pigments in the manufacture of plastics products, primarily because of health and environmental concerns; inorganic pigments are known to contain traces of potentially harmful impurities such as dioxins as well as heavy metals such as cadmium, lead, chromium, and mercury.7,8 To address these concerns, this study sought to examine and compare the influence of organic and inorganic pigments on the color and UV stabilization of injection-molded polypropylene. A secondary goal was to use the study as a pedagogical tool to reinforce important theoretical concepts involving pigmentation of plastics, injection molding, extrusion, reflectance spectrophotometry, and amorphous, semicrystalline, and nucleated crystallization properties.

Definitions

The following section defines some key concepts and technical terms used in this paper.

AMORPHOUS PLASTICS

In the amorphous state, plastics molecules exhibit no definite form of order. On a molecular scale, this state has been aptly described as resembling a bowl of cooked spaghetti.9 The nature of amorphous plastics is predominately amorphous while in the solid state, and mainly because of their irregular molecular structure, these materials show no tendency to crystallize. Examples of amorphous plastics are poly (methyl methacrylate), commercially known as acrylics (Atohaas’ Plexiglas, Id’s Lucite and Cyro Industries’ Acrylite); polycarbonate (GE Plastics’ Lexan); and atatic polystyrene, commercially known as generalpurpose polystyrene or crystal polystyrene.

Capitalism, Socialism and Interventionism - Open and Closed Systems

Although there have many “isms” to designate the various social systems that have existed throughout history there are basically only three. They are Capitalism, Socialism and Interventionism. All the “isms” can be placed in one of these three categories.

1. Capitalism is an economic concept of civilization that is based on the private ownership and control of the means of production.
2. Socialism is a system of social organization that calls for public (state) ownership of the means of production. The totalitarian state owns everything and everyone’s life.
3. Interventionism is the practice of government interference in the marketplace. The market economy is legally hampered.

I owe the above definitions to Percy L. Greaves’ book “Mises Made Easier.”

We must determine which system is an open system and the most effective for individuals to achieve their dreams and desires.

The Law of Entropy

Since I am not a Physicist I am keeping this simple with a short explanation of how the law of entropy works. Let’s say we’re converting coal into energy to power a steam-driven piston. Most, but not all of it is turned into motion. Some of the energy will be lost.

Also another effect is that eventually the machine wears out from the movement of the piston. So you have the effect of lost energy and the machine eventually breaking down.

The law of entropy also tells that the universe is expanding into a state of increasing disorder or increasing entropy.

The question is: Why does it seem that some things in the universe are tending towards increased order? Doesn’t this violate the laws of entropy (second law of thermodynamics)?

Open Systems

Ilya Prigogine solved and answered the above questions. He discovered order emerges because of the disorder (chaos). Evolution and growth are the inevitable consequences of open systems falling into temporary chaos and then reorganizing at higher levels of functioning.

Open systems take in energy and matter from their environment. They then dissipate the resulting entropy into the system and into the environment. What this means is that the system handles both growth and adversity to reorganize at a higher level.

When any system reaches it limits (threshold), it either becomes chaotic and breaks down-or reorganizes at a higher level. Which route it takes is determined by how efficient and adaptable the system is. An inefficient system collapses in chaos. An efficient system reorganizes at a higher level.

I would like to thank Bill Harris for the above information which was adapted from his book “Thresholds Of The Mind.”

Now let’s discover which social system is an open system that best meets the needs of its men and women.

Socialism

As stated, Socialism is a system where the state owns the means of production. Individuals can only follow the orders of those in charge. Individuals are restricted in the actions they can take to improve their well-being. Instead of the decisions of millions determining the organization of society, only a few make the decisions.

Can you imagine how stifled a system is when only a few people are able to freely use the information that is necessary for successful action? Plus when economic calculation is eliminated a vital source of information for the growth of a society is gone. The compass of successful action is no longer available. There is no gauge of success and failure. The system has closed down. It does not reorganize at a higher level.

It is obvious that Socialism is a closed system. It tends toward chaos and disintegration. People become impoverished and deprived. A few benefit at the expense of everyone else. I could supply you with thousands of pages of economic theory explaining why Socialism is a social system doomed to failure. However I think the facts speak for themselves. It actually did collapse because of its inability to adapt to change.

Socialism can’t and never will work because it is a closed system that quickly stifles and chokes off individual initiative. The impossibility of economic calculation in a purely Socialist system is enough to permanently cripple it. The fact that Socialism prevents the free flow of information dooms it to chaos and eventual collapse.

Interventionism

In a system of Interventionism the government interferes with the market place in order to benefit some at the expense of others. Government officials and do-gooders tell you that they are only trying to improve the efficacy of the marketplace by eliminating injustice. However I think the negative results of their interference show this is absurd.

Economic theory demonstrates that all government intervention in the economy violates economic law and has undesirable consequences. It worsens the situation-even from the point of view of its advocates.

As will be demonstrated, Capitalism is an open system. All interference with it cuts off its “vital force” and moves it closer to the closed system of Socialism.

Interventionism is futile and self defeating because it gradually sabotages the smooth functioning of the system. And it destroys people’s hopes, dreams and ambitions.

All government intervention delays progress, limits the systems adaptability and lower its threshold. The laws of Praxeology (Human Action) demonstrate this. The results are a violation of individual rights, limiting of individual choice, destruction of currency, corruption, wars, etc. Of course as the systems adaptability is hampered so is the individual’s adaptability hampered. As the system threshold is lowered so is the threshold of its individuals.

Once a system of extreme government intervention breaks down, which it must inevitably do, it is usually replaced by something worse. This doesn’t bode well for the Western World. The only reason the fall of communism led to a semi free market renaissance was because of the existence of semi free markets in the Western World. Otherwise is would have crumbled into hopelessness and despair.

Government intervention leads to a breakdown of the system. Since it is a restricted system that finally becomes closed, there is no reorganizing at a higher level. What replaces it is a totalitarian system. This is why countries end up be run by the Stalins, Hitlers, Mussolinis etc..

Of course it is always possible in a democracy that the citizens will rebel against government intervention and demand that their liberty and freedom be restored. The ensuing chaos could then lead to a system of unhampered Capitalism.

Capitalism

In a system of unhampered Capitalism everyone is free to choose. All voluntary exchanges are legal. It is a completely open system. The government only intervenes to protect life, liberty and property. Involuntary exchanges are illegal because these types of anti-social activities interfere with an individual’s freedom of choice. Obviously if someone’s freedom of choice is violated, his opportunities for success in life are limited. As more people’s freedom of choice is restricted the system moves towards being closed. It becomes unable to adapt to change and adversity.

Economic theory conclusively proves that unhampered Capitalism is the only system that can result in the happiness and prosperity that individuals desire. Realizing that the social system of unhampered Capitalism is the only arrangement of society’s activities that constitute an open system, we can come to the conclusion that all other systems will result in the misery, poverty and degradation of the masses.

Only unhampered Capitalism is an open system that can grow and thrive. If it ever does reach a breaking point it will evolve to a much higher state of organization.

Although Karl Marx is considered Capitalism’s greatest enemy, he was correct on one point. A system of pure unhampered Capitalism will lead to a new “utopia”. What must be understood is that the new system would also have to be unhampered for it to evolve into another higher state of organization.

When an open system such as Capitalism finally reaches its threshold what replaces it is vastly superior. Basically it is still be unhampered Capitalism, but at a much higher state of existence. The productivity of labor and the standard of living is so high that what follows is a society based on the spiritual. Production is mental and spiritual.

Imagine this: Instead of having to work 40 to 60 hours a week you only have to work one hour to accomplish the same standard of living. It is almost hard to envision what would follow. What does an incredibly advanced society produce? One thing for certain is that superior spiritual and mental powers are unleashed which results in a standard of living unheard of in our present state of development.

How Depreciation Increases the After-Tax Yields of Real Estate Investment Trusts

Depreciation is a difficult subject in the area of cost accounting for commercial real estate.

Accountants do strive to make their financial statements accurate, and so they must recognize a fundamental principle of the universe that has troubled philosophers for tens of thousands of years. As George Harrison sang years ago, “All Things Must Pass.”

There is nothing permanent in this three-dimensional world of space, time, matter and energy. Just as any Buddhist.

No building will last forever. Even the pyramids of Egypt will someday erode into dust.

Therefore, real estate property owners are allowed to deduct an expense from their gross income, called depreciation, on the theory that every year, the building is being worn down somewhat by the wear and tear of the universe. What physicists call entropy, according to The Third Law of Thermodynamics.

This depreciation expense is often calculated by dividing the total cost of the building by the number of years it’s expected to have a useful life.

If you pay one million dollars for a building, and it’s expected to last 10 years, that’s a straight-line depreciation expense of $100,000 per year.

Notice that $100,000 in cash is not actually paid out of your pocket. Depreciation simply reflects the reality that sooner or later, that building won’t be useful, and so the $1,000,000 you paid will be gone.

Although this is not practical, the ideal would be for you to pay someone $100,000 a year for ten years to build you a new, replacement building.

And when you take the depreciation expense, that is also deducted from the building’s cost basis. So after 10 years, in the above example, that building is officially worth nothing, even though it may still be in great condition in a prosperous neighborhood. If it’s well-maintained and in a good area, it can be useful for an indefinite period.

So one of the big problems is deciding what the useful life span of a commercial building is.

Of course, when we’re talking about shopping malls, we’re assuming their function is to lease space out to retail stores and restaurants, not to act as tourist attractions. So we can rule out multi-thousand year old spans such as represented by the Coliseum of Rome and the ruins of Angkor Wat — which attract tourist money even though they’ve fallen down.

Yet even when we come down the level of commonplace apartment building and shopping strip centers, we just don’t know for sure how long they’ll last. Sure, there’re castles in Europe hundreds of years old — but also stone farm houses where farming families still live.

So it’s entirely possible for a building in a good area to be bought or built, to have the depreciation expense taken on them . . . and 20 or 30 years later they’re now worth far more than you originally paid.

So, in a long-term sense, depreciation reflects something real, but it’s difficult to know just how much of an expense to take every year — without a crystal ball.

For example New York City’s Empire State Building is nearly 80 years old, but would be worth many millions if sold. The World Trade Center’s useful life ended prematurely in a way that couldn’t be predicted.

So when a Real Estate Investment Trust calculates its net income, it is required to apply Generally Accepted Accounting Principles. It will figure out its gross revenues, then subtract its operating expenses, then subtract a substantial figure representing depreciation on the buildings it owns — even though they may in fact have appreciated in value.

Let’s say XYZ REIT had gross revenues of $1,000,000 and operating expenses of $$700,000. That leaves $300,000. Then they deduct another $100,000 for depreciation. That leaves $200,000 as their net operating income.

The law requires them to pay at least 90% of this to their shareholders in the form of dividends. So they must mail out $200,000 X .90 = $180,000 to their investors.

But wait — the $100,000 depreciation expense is a “book entry” only. That is, it’s only on paper.

The $700,000 operating expenses represent cash that left the REIT’s bank account to pay for salaries, repairs, and other necessary expenditures.

Depreciation does not represent a cash payment to anybody. That $100,000 is still sitting in their bank account.

So why not pay it out to their shareholders also?

That’d be $180,000 plus $100,000 = $280,000 available for dividends for shareholders, making them even happier.

Why not, indeed? That’s what many of these companies do — pay out more in dividends that the law requires.

And receiving some dividend payments that represent depreciation should make the shareholders even happier than usual. Here’s why.

The percentage of the dividend checks they receive from real estate investment trusts that represents depreciation is not immediately taxable to shareholders.

Because it represents money that’s available only because the company took a depreciation expense, according to the IRS it’s officially a “return of capital,” not income.

A return of capital is not taxable because it’s not income. But it does reduce the cost basis of your REIT shares.

When is the only time you care about the cost basis of your shares of stock?

When you sell them.

If you don’t sell them . . . you don’t have to ever care.

Let’s say you bought 100 shares of XYZ REIT for $10 each. Your cost basis is $1000.

In the first year got a dollar back for each share, of which 25 cents per share was for depreciation. Which means your cost basis is reduced by .25 X 100 = $25.00.

So your cost basis in those 100 shares is now $975 instead of $1000.

You do have to pay taxes on the dividends, but only on $75, not the full $100.

If next year you decide to sell the shares of stock for $11 each, you’d get a total of $1100. You’d owe capital gains taxes on $125 instead of $100.

In effect, you’re now paying the taxes on that 25 cents per share depreciation in dividend checks you received the year before.

But let’s say you’re smarter than that. You don’t sell your shares of XYZ. You just keep collecting the dividends for as long as you live.

When do you pay taxes on the depreciation percentage? Never.

The implications of this aren’t widely known or understood. Even the best known REIT book writer, Ralph L. Block, doesn’t mention this in his book INVESTING IN REITS until the first Appendix.

The percentage of dividend checks that represent return of capital because of depreciation varies from company to company, and can of course vary over time. Historically, it runs 25% to 30%.

The bottom line for real estate trust shareholders is that — if they never sell their shares — their effective, net after-tax yields are significantly higher than they think. The exact amount depends on their marginal tax rate.

Let’s say that in the above example, your marginal tax rate is 35%.

You’ll owe ordinary taxes of .35 X $75 = $26.25.

You received $100, and paid $26.25 in taxes, leaving you with an after-tax net of $73.75.

Your after-tax net yield on your shares is 7.375%.

If this was an ordinary dividend-paying company in some business besides real estate, you’d have to pay taxes on the entire $100 in dividends, for a total tax owed of $35. For a net of $65. For a net after-tax yield of 6.5%.

Therefore, to figure out the true net, after-tax yield of a REIT, you must multiply its stated yield by (one plus the depreciation percentage X your marginal tax rate).

Thus, in the above example, the apparently yield is 10%. (One dollar in dividends for ten dollars worth of stock).

.10 X (1 + ((.25 X .35)) =

.10 X 1.0875 = 10.875% net after tax yield

Purists would argue that you should use the new cost basis, but my argument is that it’s irrelevant so long as you never sell the stock. In that case, your “practical” cost basis is what you originally paid for it.

So never sell it.

High Protein Diets - Myths, Half-truths and Outright Lies

Without question, protein is the king of all nutrients. It provides the building blocks for enzymes and hormones, enables nerve and brain cells to effectively communicate with one another, and fosters the repair and growth of muscle tissue. Every cell in your body contains protein; life could not go on without it.

The consumption of protein, however, is perhaps the most controversial of all nutritional topics. Unfortunately, many nutrition professionals have not kept abreast of recent research and continue to espouse outmoded theories on the subject. This has led to a host of myths that, in turn, have been taken as gospel by the general public. The following are some of the more common misconceptions about dietary protein intake:

Myth: High protein diets make you fat.

Fact: There is no doubt that eating too much protein will pack on the pounds-but so will eating too many calories from carbs or fat! Weight gain is governed by the law of thermodynamics: if you consume more calories than you expend, you’ll gain weight. Consequently, it’s not protein per se that causes weight gain; it’s an over consumption of calories. No matter what you eat, if you consume too much of it, you’ll ultimately end up getting fat.

In actuality, if you were to eat a meal containing only protein, carbs, or fat, the protein meal would cause the least amount of weight gain. You see, a large percentage of calories from protein are burned off in the digestion process. This is called the thermic effect of food. Of all the macronutrients, protein has the highest thermic effect, burning off approximately 25 percent of protein of the calories consumed . In comparison, only 15 percent of the calories from carbs are burned off in digestion; fat has virtually no thermic effect whatsoever . Thus, all other things being equal, a high protein diet would be less likely to cause fat deposition than either a high carb or high fat diet.

Moreover, unlike carbs, protein doesn’t stimulate a significant insulin response. Insulin is a storage hormone. While its primary purpose is to neutralize blood sugar, it also is responsible for shuttling fat into adipocytes (fat cells). When carbohydrates are ingested, the pancreas secretes insulin to clear blood sugar from the circulatory system. Depending on the quantities and types of carbs consumed, insulin levels can fluctuate wildly, heightening the possibility of fat storage. Since protein’s effect on insulin secretion is negligible, the potential for fat storage is diminished

What’s more, the consumption of protein tends to increase the production of glucagon, a hormone that opposes the effect of insulin. Since a primary function of glucagon is to signal the body to burn fat for fuel, fat loss, rather than fat gain, tends to be promoted.

Myth: High protein diets are damaging to your kidneys.

Fact: The metabolism of protein entails a complex sequence of events in order for proper assimilation to take place. During digestion, protein is broken down into its component parts, the amino acids (via a process called deamination). A byproduct of this occurrence is the production of ammonia, a toxic substance, in the body. Ammonia, in turn, is rapidly converted into the relatively non-toxic substance urea, which is then transported to the kidneys for excretion.

In theory, a large build-up of urea can overtax the kidneys, impairing their ability to carry out vital functions. This has been supported by studies on people with existing renal disease. It has been well documented that a high protein diet exacerbates uremia (kidney failure) in those on dialysis (i.e. the artificial kidney machine), while a low protein diet helps to alleviate the condition . Proteinuria and other complications also have been observed in this population .

However, there is no evidence that a diet high in protein has any detrimental effects on those with normal renal function. Healthy kidneys are readily able to filter out urea; any excess is simply expelled in the urine. Consider the fact that, over the past century, millions of athletes have consumed large quantities of protein without incident. Surely, if high protein diets caused kidney disease, these athletes would be all on dialysis by now. Yet, in otherwise healthy individuals, not one peer-reviewed journal has documented any renal abnormalities due to an increased intake of protein.

As an aside, it is beneficial to drink ample amounts of fluids when consuming a high protein diet. This helps to flush your system and facilitates the excretion of urea from the body. For best results, a daily intake of at least a gallon of water is recommended, drinking small amounts throughout the day.

Myth: High protein diets result in an inordinate intake of unhealthy saturated fat.

Fact: The majority of Americans get their protein from red meat and dairy products-foods that have a high percentage of saturated fat. High fat protein sources such as bacon, T-bone steaks, hard cheeses, and whole milk are staples of the American diet. What’s more, ketogenic “diet gurus” like Dr. Robert Atkins encourage the consumption of these products, touting them as viable dietary options . Accordingly, high-protein diets have become synonymous with the intake artery-clogging fats.

However, there is no reason that a high protein intake must be derived from cholesterol-laden foods. There are many protein sources that contain little, if any, saturated fat. Skinless chicken breasts, egg whites, and legumes are all excellent, low-fat protein choices. By simply choosing the “right” foods, a high protein diet can be maintained with minimal effect on fat consumption.

In addition, it is important to realize that certain fats, specifically the unsaturated, Omega fatty acids, are actually beneficial to your well being, aiding in the absorption of fat-soluble vitamins and facilitating the production of various hormones, cell membranes and prostaglandins. These “essential” fats cannot be manufactured by the body and hence must be obtained through nutritional means. Cold water fish (such as salmon, mackerel and trout), tofu and peanut butter are protein-based foods that also are terrific sources of essential fats. Their consumption has been shown to have a positive impact on cardiovascular health and reduces the risk of several types of cancers.

Myth: High protein diets are unnecessary for athletes.

Fact: If you believe the United States Department of Agriculture (USDA), there is no difference in protein requirements between athletes and couch potatoes. This is reflected in the RDA for protein, which is the same for all individuals regardless of their activity levels.

However, contrary to the USDA position, studies have shown that athletes do indeed require more protein than sedentary individuals . When you exercise, protein stores are broken down and used for fuel (via a process called gluconeogenesis). The branched chain amino acids (BCAAs), in particular, are preferentially mobilized as an energy source during intense training, as are alanine and glutamine. It has been shown that when athletes consume a low protein diet (equivalent to the RDA for protein), there is decreased whole body protein synthesis, indicating a catabolism of muscle tissue.

On the other hand, it is imprudent to ingest enormous quantities of protein in hopes that it will improve athletic performance. Bodybuilders often subscribe to this “more is better” philosophy and gorge themselves with protein-rich foods and supplements (one popular bodybuilder claims to ingest as much as 1000 grams of protein a day!). Unfortunately, the body only has the capacity to utilize a limited amount of protein. Once the saturation point is reached, additional protein is of no use to the body and is either used as energy or converted into triglycerides and stored as fat. In general, optimal protein synthesis can be achieved by consuming one gram of protein per pound of bodyweight. Thus, for maximizing strength and performance, a 150-pound person should consume approximately 150 grams of protein per day.

It also is important to realize that, by itself, protein has no effect on muscular gains. Contrary to claims made by various supplement manufacturers, protein powders aren’t magic formulas for building muscle. You can’t expect to simply consume a protein drink, sit back, and watch your muscles grow. This might make good ad copy, but it doesn’t translate into reality. Only through intense strength training can protein be utilized for muscular repair and promote the development of lean muscle tissue.

Revolutionary H-bath - Natural Weight Loss

Many years ago, during my Ph.D. program at Osaka University Medical School, I first heard of the half-body-bath (h-bath). My first impression of the idea to “Put the lower half of the body in warm water until the whole body is warm” was that it was hilarious. How could you warm up your body, while your upper half-body is out of the tub?

I had completely forgotten about it until 2 years ago, I was reminded of the h-bath by a friend, did some investigation on it, and then started the h-bath by myself. I read books about the h-bath and watched TV programs produced in Korea and Japan, and then I learned in detail about the h-bath. The h-bath was started by Dr. Yoshiharu Shindo, Japan, and spread into Korea and China over the years.

After I started the h-bath, first I was surprised at the amount of sweat in only in 20 minutes by putting lower body in the tub. Secondly, I felt my whole body was still warm enough even long after the h-bath (it lasted about 2 hours). I then recommended it to my wife who was suffering from “cold hands and feet”. Guess what! She was able to get rid of “cold hands and feet”, and was able to have good night sleep. Now even my 10-year-old daughter is enjoying the h-bath every night.

What other health benefits did we get from the h-bath practice? I lost 17 lbs in 8 months and also was relieved of shoulder pain I had for more than 15 years. Best of all, is the daily stress management by the h-bath. As mentioned previously, my wife was finally relieved of “cold hands and feet” (Raynaud’s disease), as well as the long-time-suffering of GERD (Gastro Esophageal Reflux Disease), a.k.a. acid reflux. We both gained much more energy than we previously had. Of course, I also did a daily exercise of 30 minutes of walking combined with 30 minutes of the h-bath. I am sure that the h-bath had a synergic effect in my weight loss.

Since I am not an exercise orientated person, like many of you, I knew that both walking and the h-bath were programs I could continue. My daily walking program is not strenuous; rather it is a relaxing slow walk of 30 minutes around the work place or on the treadmill during a lunch break. At night, I did 30 minutes of h-bath everyday. That’s it! I feel much energized now.

I am a scientist, majored in the medical sciences and quite often I couldn’t control the stress from research, discussions, and presentations and so on, until I started the h-bath. I never knew that a bath could be fun. Different from ordinary whole-body-bath, your arms and hands are free, which means you can read a magazine, book etc and fully enjoy the half bath experience.

I want to share the experiences and science of the h-bath with you and recommend the h-bath for healthier you. Best of all, you don’t need to purchase any special equipment for the h-bath, but you should learn proper instructions to start.

What is the half-body-bath (h-bath)?

The main purpose of taking a bath is to sanitize the body. After a bath, we feel relax and relieved of day to day stress. This implies that a bath has a stress relief effect. Fatigue can be relieved when submerging your whole body into the tub-full of hot water. And a bubble bath or few drops of essence oils can also help you to be relaxed. You may have experienced falling asleep while taking a bath, right? Taking a bath is not only good for cleaning purposes, but also for mental health.

The history of submerging-body-bath is older than we think. According to the history records, there was a public bath in Rome, AD 300. The ancient Greek mathematician Archimedes shouted “Eureka, eureka!” when he found the principle of buoyancy (Archimedes’ principle), while he was taking a bath. For a long time, taking a bath meant whole-body-bath (w-bath), which is submerging a body up to the neck. In the early 1980’s, Dr. Yoshiharu Shindo, an ENT clinician, established a revolutionary bathing method, the half-body-bath (h-bath). Dr. Shindo mentions this in his first book, [Remedy for all diseases - controlling the thermodynamics of the body];

“I have been suffering from the “cold hands and feet” especially during the winter, so I used to wear long boots and thick cloths. And, finally came across the thought that what if I warm up the lower-half-body in the bath. It was cold winter, but I tried everyday. I thought that winter is the best time to test the effect of the h-bath, since it is the most severe season for the “cold hands and feet”. After many trial and errors, I concluded that maximum effect can be obtained by using warm water (100-104oF = 38-40oC), which is slightly higher than the body temperature. And keep the water level up to the 3-4 inches above the belly button, and then stay in the water for 20-30 minutes.

I even tried that when I got a common cold. After 20-30 minutes for the h-bath, I started to sweat a lot, and experienced a complete cure from fever & cold the next day. I was also relieved of the shoulder and upper arm pains. They were gone after few months of the h-bath. Of course, a common cold is not the problem anymore. I used take a short nap during the day to have enough energy for the rest of the day, but after continuing the h-bath, I realized I could keep up my activity without a nap. After I investigated the relationship between coldness and diseases, I am assured that the unbalance of the thermodynamics of the body is what causes many diseases. By fixing this heat unbalance by the h-bath, many diseases related to thermal unbalance can be cured naturally. This can be confirmed through the observation of my patients. In combination with conventional medical treatments, the h-bath enhances the cure index in the most of respiratory diseases including common cold”.

Dr. Shindo not only found that the h-bath primarily controlled his “cold hands and feet”, the so called ‘Raynaud’s disease’, but he realized that the h-bath helped to restore the human body naturally by equilibrating body heat.

Blood flow is a prime method of distributing heat evenly throughout the body. Poor blood flow can cause a reduction in the temperature of the extremities, and researchers theorized that poor blood circulation can cause cold hands and feet, subsequently causing other problems such as insomnia. Needless to say, the heart is responsible for the delivering of “warm blood” throughout the body. However, for some reason, it does not go flow through to the end of the body, like the hands and feet. If you take thermography of the whole body, you can see that the heat distribution of the body is not even. The upper body has higher temperature (98.6 oF = 37 oC around the heart), however lower body has comparatively low temperature; especially the temperature of the feet which is below 87.8 oF (31 oC).

Japan was built up from volcanic eruptions, and has many naturally formed hot springs all around the country. So over a long period of time, they developed unique bathing culture. Taking a bath is a daily part of a life in Japan. Paradoxically, on average 10,000 people die in the bath every year. The majority of people who die in the bath are elderly, mainly caused by cardiac arrest, myocardial infarction and cerebral hemorrhage etc. If so, is taking a bath deadly for elderly?

The answer is “it depends on the way of bathing”. A traditional w-bath can produce a lot of stress to the heart, mainly caused by water pressure. Since the whole body is warmed up from the w-bath at the same time the heart is experiencing stress, the heart beat rate and blood pressure rapidly increases and sometimes can cause cardiac or vascular problems. Besides, body heat can hardly be equilibrated since 85 - 90% of your body is submerged in the same temperature, and head is the only place to get the extreme blood stream and excess heat.

However, with an h-bath, the blood circulation increases gradually and reasonably with less stress to the heart and also does not provide the added stress of the water pressure. According to scientists, the h-bath does not significantly increase the blood pressure, shown by measuring cardiograph during the h-bath. The h-bath is comparatively safe, and is hugely effective for blood circulation. However, it doesn’t mean that the h-bath is “totally safe” for elderly and cardiovascular disease patients. Consult your doctor prior to start the h-bath.

The h-bath has spread all around Japan, Korea and China in a short time period. Millions of people continue the h-bath everyday and are accumulating their experiences and pre-scientific data. According to the h-bath people’s network, the h-bath is very effective in weight loss, improving skin health, helps to decrease the discomfort during a woman’s menstrual cycle, and lowers the blood pressure by enhancing the blood circulation in general.

There is no need to purchase expensive equipment for the h-bath. A bathtub and warm water are basically enough. A thermometer, reading materials and a rubber ducky are optional. The rest is continuing the h-bath with consistency and making this part of your daily activity.

Life: The Achilles Heel of Naturalism

Biological requirements for Life

Just how “simple” can a functioning organism get? Microbiologists are the experts in the field. Here is what they say. At minimum, the first living organism must have possessed all of the following:

Something to hold together the energy and the molecules which make the cell function

Something to control movement of materials in and out of the cell

Something that will provide genetic instructions for duplicating itself and issue instructions for building proteins from amino acids

Something that will translate the genetic instructions and assemble the needed proteins

Something which will act as a factory for protein assembly

Something for transporting and storing energy

Something to act as a catalyst for chemical reactions

Something to fill in the cell area which will not impede operations.

These are the bare bone, essential requirements for life. Remove just one of these “somethings” and life will cease. This point cannot be over emphasized: Everyone of these functions, had to be in complete working order from the first instant. Otherwise, life would never have begun at all. A piecemeal or haphazard start will not work.

Bacteria and Blue-Green Algae

Fortunately for us, bacteria and blue-green algae have retained these basic elements without requiring new ones. If evolution has occurred, they haven’t heard of it. They possess:

An outer membrane which holds together energy and molecules that make the cell function, and the membrane controls movement of materials in and out of the cell

DNA, a nucleic acid which contains genetic instructions for making identical copies of itself and issues instructions for building proteins from amino acids

RNA, a nucleic acid which “reads” DNA and assembles proteins

Ribsomes, structural sites which act as factories for assembling proteins

ATP molecules for transporting and storing energy

Enzymes, proteins which act as catalysts for chemical reactions

Cytoplasm, a jelly-like substance that fills the cell wall.

These single-celled organisms are, in fact, what microbiologists describe when they state the essential requirements for life. And they are readily available for study. Here is the most extraordinary fact about bacteria: To produce this “simple” single-celled life form requires a DNA sequence of 3 million nucleotides, all aligned into a very specific order.

Change the order and you damage or destroy the bacteria. Simple? Absolutely not! The very first living microorganism started off as a highly complex and sophisticated form of life.

Charles Darwin did not have access to an electronic microscope. Consequently, he and his 19th century scientists could not see the intricate structures or the intense activity taking place in the cell. Little wonder Darwin thought the cell was simple. He reasoned if enough chemicals of the right sort were to bump into each other in a “warm little pond,” eventually, life would ensue from one of these chance meetings.

Amino Acids

That theory inspired scientists into a number of experiments. Researchers mixed precise measurements of water, hydrogen, ammonia, and methane; then sparked their concoctions with electric charges or exposed them to ultraviolet light. They did get results. They produced several amino acids, which are the building blocks of life. But that is all they are - building blocks. It is not life itself. In fact, it is nowhere near life.

Biogenesis

The chemical complexities of even the simplest form of life is a chasm over which random combinations of molecules cannot jump. Biologists know it. They have even codified it into law. The principle of biogenesis says that a living organism can originate only from one or two parents of the same kind. A cell comes from a previous cell; life comes from previous life. This rule is universally validated and has no known exceptions.

Law of Entropy

Not only is the “accumulating chemical” explanation for life contrary to the law of biogenesis, it is also at odds with the second law of thermodynamics, also called the law of entropy. We have run across this law before. It’s the law that says everything is running down; organization is deceasing, in general, the whole universe is headed toward an equilibrium where movement will cease.

Against that law, naturalists claim an exception. Instead of dissipating, chemicals of just the right type and quantity congregated and united [on their own initiative?] into ever increasing complex forms until they ultimately formed a living entity. Under normal circumstances, you can see how just the opposite would happen.

Get a glass of water and put in a couple drops of dye. After a few minutes, the whole glass of water becomes evenly colored with scattered atoms of dye. That proves the second law of thermodynamics, but what about the proposed exception?

Naturalist reply, “First we must have the right ingredients for life.” By that they mean the 24 naturally occurring types of atoms which are essential to the formation and development of living organisms. But there are 92 different types of naturally occurring atoms on earth. What do we do the the other 68 atoms?

“Keep them away from the mixture,” say the naturalists. Oh? That makes you wonder who or what in nature had the foresight to keep the 68 “bad” types of atoms away while the 24 “good” atom types frolicked and combined in the naturalist’s broth.

“Second,” say the naturalists, “we need the right proportions of ingredients. Heavy on the hydrogen, oxygen, and carbon atoms; medium on the nitrogen and calcium atoms; and light on the chlorine, iron, magnesium, potassium, silicon, sodium, and sulfur atoms. Hold the aluminum and no helium please!”

How did we happen to get these correct proportions four billion years ago? “Just chance,” claim the naturalists. “Natural selection culled out the other aspiring combinations.”

Oxygen in the Atmosphere

“Third, 3.5 billion years ago, there was no oxygen in the atmosphere to break down chemical combinations,” explain the naturalists. Recently however, geologists have concluded that early earth might well have had oxygen in the atmosphere after all. Oxygen would tend to break down chemical combinations.

Electric Charge or Radiation

Anything else? “Yes, there needs to be a jolt of electricity or perhaps a bit of radiation to jump start the brew.” But if a bolt of lightning hit anywhere near the chemical formation, in all probability, it would destroy the mixture or at least disperse it.

And if the geologists have it right, that is, if the early atmosphere contained oxygen, then planet earth also had an early ozone. We know that the ozone is a protective layer which dramatically reduces the opportunity of random radiation striking and energizing the naturalist’s broth.

Before we proceed, let’s review what we have discovered about life. The naturalist’s chemical combination formula for life is contested by both the laws of biogenesis, which says life comes only from prior life, and by the law of entropy, which says everything including chemicals tend to dissipate over time, not congregate and unite. Other than being basically untenable and contrary to established scientific law, is there anything else wrong with the natural origin of life theory?

Yes, its requirements strain credibility. Consider the following: One way or another 24 different types of the right sort of atoms must accidentally bump into each other in correct proportions no less. At the same time they must somehow completely exclude the other 68 wrong sort of atoms.

Once the chance meeting of the 24 atomically correct molecules takes place, they must stay put until something comes along and zaps them. Not too much of a zap mind you. That would do in the whole chemical concoction.

The alternative explanation is that perhaps an ultraviolet ray found its way through the ancient ozone and landed on the assembled chemicals energizing them into action.

DNA and Proteins

Could it have happened that way? No, probably not. Life requires both DNA and proteins. DNA cannot transfer its genetic information without the assistance of proteins. And proteins cannot be constructed without DNA instructions for manufacturing amino acids. One without the other is useless. We must have DNA and a host of other specialized proteins together and operating in sync before life can function.

The odds are decisively against a chance meeting of chemicals initiating any sort of life. The naturalists know that as well as anybody else. But if no one has been able to come up with a logical explanation for the origin of life, where does that leave the naturalists?

Most of them admit that is a serious problem for their side. Without a scientific solution for life’s inception, the claim that everything can be explained by natural means appears to be dead on arrival.

Here we find the Achilles heel of naturalism. Life’s origins is a riddle for which naturalism has no answer.

Quote of the Day: “A super-intelligence is the only good explanation for the origin of life and the complexity of nature.” Anthony Flew, British philosopher, at age 81, after decades of insisting belief is a mistake.

Southwest Airlines Operations - A Strategic Perspective

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 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 aircrafts, 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 aircrafts

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 aircrafts 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 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.

Franchising as a Vehicle for Economic Empowerment

WHAT IS FRANCHISING?

The simplest definition for franchising is: “A method of doing business whereby a franchisor licenses trademarks, systems and methods of doing business to a franchisee in exchange for a recurring ongoing consideration i.e. a royalty fee or a franchise management fee”.

Franchising is a form of a business by which the owner (franchisor) of a product, service, or method obtains distribution through affiliated dealers (franchisees). A franchisor is expected to offer assistance in organising, training, merchandising, marketing, and giving direction in return for a consideration.

Franchising usually involves a contractual arrangement between a franchisor (a manufacturer, a wholesaler, or a service sponsor) and a retail franchisee, which allows the franchisee to conduct a given form of business under an established name and according to a given pattern of business.

DOES FRANCHISING IMPLY THAT YOU ARE SELF-EMPLOYED?

In some respects, NO. You still have to answer to someone else and follow his or her direction. You don’t really own the business; you own the assets you’ve purchased in order to establish the business. If you consider that you are in business for yourself, but not by yourself, then YES…you are self employed.

FRANCHISING IS THE FASTEST GROWING BUSINESS ECONOMIC MODEL

Globally, franchising is the most popular and the fastest growing business economic model. It assembles business relationships that allow people to share brand identification, a proven method of doing business and a successful marketing and distribution system. When most people think of a franchise, they think fast food. Franchising, however, long ago grew beyond the burger and fried-chicken shops. Today franchise concepts span over 70 different product and service sectors, including such businesses as auto-repair shops, children’s art centers, fitness clubs, law & consulting practices, and many home based businesses. The franchising business model has turned into a major economic engine globally and it is one that’s providing increasing opportunities for companies and individual entrepreneurs alike.

For South Africa, and for Africa as whole, franchising is a perfect vehicle for the economic empowerment of the historically disadvantaged sectors of the population. This brings with it the need for the establishment of more franchises. That is, franchising businesses that are established, that has a unique offering and where the method of doing business has been tried, tested and perfected. Apart from empowering companies and individuals, there should be a particular focus on identifying labour intensive businesses that have the potential to make a significant and positive impact on employment creation as well as those businesses that have a product or service offering for export markets with the ultimate objective of booming local economies.

THE ADVANTAGES OF FRANCHISING

1. An investment is usually made into a proven business.
2. A faster start up, developing a customer base quicker, and experiencing profitability quicker are key attractions.
3. There is a known quantifiable proven formula.
4. Owner transition and training is available, and there is full control of strategic direction and ability to thoroughly review past records and company history.
5. The biggest advantage of franchising appears to be the reduction of risk you will be taking for your investment.
6. You also usually get better deals on supplies because the franchise company can purchase goods and supplies in bulk for the entire chain, and then pass that savings on to you and the other franchise units.
7. Customers are dealing with a “known” rather than an “unknown.”

THE DISADVANTAGES OF FRANCHISING

1. Some franchises can be very expensive. Franchisors expect you to follow their operations manuals to the letter. No flexibility on your part.
2. Buying a franchise is like marrying someone you haven’t known for long.
3. The relative security offered by franchisors may be exaggerated. Some franchisors are in for a quick buck.
4. Franchising as a pyramid scheme. Some companies try to make money by just collecting franchise fees, and won’t spend the time or money necessary to help their existing franchisees succeed.
5. Overcharging for supplies. Some franchisers may require you to buy supplies exclusively from them at inflated prices.
6. Fees for unnecessary training.
7. Misleading sales presentations. Some franchisors over-promise the moon in their pitches to prospective franchisees

BUSINESS OWNERS: IS YOUR BUSINESS FRANCHISE READY?
An appropriate first step in the decision to franchise is an examination of the question of whether or not a business concept is actually “franchisable.” Any organization seriously considering franchising should undertake this analysis before implementing a franchise strategy. While it is impossible to determine the franchisability of a business concept without a significant amount of analysis, most franchise experts are guided by the following criteria to assess the readiness of a company for franchising and the likelihood that it will achieve success as a franchisor.
1. Credibility: To sell franchises, a company must first be credible in the eyes of its prospective franchisees. Large organisation size, number of outlets, years in operation, strength of management are key credibility factors.
2. Differentiation: In addition to credibility, a franchise organisation must be adequately differentiated from its franchised competitors. This can come in the form of a differentiated product or service, a reduced investment cost, a unique marketing strategy, or different target markets.
3. Transferability of knowledge: The next criterion is the ability to teach a system to others. To franchise, a business must generally be able to thoroughly educate a prospective franchisee in a relatively short period of time.
4. Adaptability: Next, measure how well a concept can be adapted from one market to the next. Some concepts do not adapt well over large geographic areas because of regional variations in consumer tastes or preferences.
5. Refined and successful prototype operations: A refined prototype is necessary to demonstrate that the system is proven, and is generally instrumental in the training of franchisees. The prototype also acts as a testing ground for new products, new services, marketing techniques, merchandising, and operational efficiencies.
6. Documented systems: All successful businesses have systems. But in order to be franchisable, these systems must be documented in a manner that communicates them effectively to franchisees.
7. Affordability: Affordability merely reflects a prospective franchisee’s ability to pay for the franchise in question. This criterion is as much a reflection of the prospective franchisee as it is of the actual cost of opening a franchise.
8. Return on Investment: This is the real acid test. A franchised business must, of course, be profitable. But more than that, a franchised business must allow enough profit after a royalty for the franchisees to earn an adequate return on their investment of time and money.
9. Market trends and conditions: While not an indicator of franchisability as much as general indicators of the success of any business; these trends are key to long-term planning. Is the market growing or consolidating? How will that affect your business in the future? What impact will the Internet have? Will the franchisee’s products and services remain relevant in the years ahead? What are other franchised and non-franchised competitors doing? And how will the competitive environment affect your franchisee’s likelihood of long-term success.
10. Capital: While franchising is a low-cost means of expanding a business, it is not a “no cost” means of expansion. A franchisor needs the capital and resources to implement a franchise program. The resources required to initially implement a franchise program will vary depending on the scope of the expansion plan. If a company is looking to sell one or two franchised units, the necessary legal documentation may be completed at low costs. For franchisors targeting aggressive expansion, however, start-up costs can run into Hundreds of Thousands and more.
11. Commitment to relationships: Successful franchisors focus on building long-term relationships with their franchisees that are mutually rewarding. Unfortunately, not all franchise organizations understand the link that exists between relationships and profits. Strong franchisee relationships enable the franchisor to sell franchises more effectively, introduce needed changes into the system more easily, and motivate franchisees and their managers to provide a consistent level of products and services to their customers.
12. Strength of management: Finally, the single most important aspect contributing to the success of any franchise program is the strength of its management. More often than not, new franchisors will try to take everything on themselves. In addition to absorbing several new jobs for which the franchisor has little to no time, the franchisor needs to exhibit expertise in fields in which he or she may have little or no experience: franchise marketing, lead handling, franchise sales, ad fund management, training, and multi-unit operations management.

ENTREPRENEURS: HOW TO SELECT THE RIGHT FRANCHISE

Buying a franchise can be a daunting task. With thousands of franchises in over 70 different industries available worldwide, finding the best franchise can be like finding a needle in a haystack. Moreover, the best franchise for your neighbour might be a disaster in the waiting for you. How do you invest in the right franchise?
1. Why?: First, you must ask yourself certain questions and be very objective. Why do you want to own a franchise? If it’s to get rich or to get on easy street and not have to work, then franchising will probably not meet your expectations. If you are like many people who have the dream of owning your own business (but not being on your own), being your own boss and having control of your life, then franchising may be for you.
2. Strengths: Be realistic and fully understand your strengths and weaknesses. Invest your strengths into the right type of franchise. Don’t explore every franchise opportunity. Select only those you believe co-incides with your strengths
3. Research: Compile a list of the franchises that interest you. Go through their websites and set up meetings with the franchise manager/director.
4. Disclosure Document: Study the franchise disclosure document or prospectus. Here you want to see strong financial history, experienced people in key positions, and a company that has been in business for 3 years or more, the longer the better, has a large number of outlets and has few closed or bought back.
5. Franchise Agreement: Closely examine the franchise agreement. This is the contract between you and the company. Franchise agreements are always biased in favor of the franchisor, that’s just the way it is. This can be good and bad. The company can be unfair in it’s dealings with you and the franchise agreement may allow this, on the other hand you should want a strong franchisor.
6. References: Call as many franchisees as possible. Call at least 10. Find out how they are doing. The key question is “Would you buy this franchise again?”
7. Visits: Visit personally as many operating units as possible. At least three. Often the owner or manager will be more forthcoming in person than over the phone.
8. Verify Financial Information: If everything still looks good, then contact the sales rep and get as much definitive sales information as possible. Most franchisors will not make earnings claims but they will provide information with which you may extrapolate gross sales.
9. Advisors: If everything still looks good then go for it. If you are unsure, speak to qualified advisors.

THE FIVE REASONS FRANCHISES FAIL

Generally, on a global level, 30% of small independent businesses fail within the first year, with less than 20% going beyond year 5. Franchises, on the other hand, are significantly more successful. Less than 5% of franchises fail. The reason(s) for failure could be a number of factors, most of which could have been prevented by due diligence during the early phase. The following are the main reasons franchises fail:

1. The Idea. Whether you are franchising your own company or buying into a franchise system, how the concept is received by the community is critical. While burgers seem to have universal appeal, not all food chains meet with majority approval. Also, if your business model is complicated you are in for a struggle. You want to create an operational standard that can be taught to and replicated by any businessperson. A company may be successful when run by the entrepreneur who dreamed up the concept, however, if the business model or prototype is not easily duplicated the chances for success are not so optimistic.
2. Bad Location. Ask seasoned franchisees to name one of the most important keys to a successful franchise and undoubtedly they will say, “Location, location, location.” Even with a well-branded name, if you are off the beaten path, inconveniently located or in an isolated area the opportunity to be as lucrative as possible diminishes.
3. Poor Marketing/Advertising. Many well-established and reputable franchisors have marketing and advertising funds into which franchisees contribute monetarily. Chains like McDonald’s and Subway have national campaigns, while other types of franchises may advertise on a local level. Some franchise concepts require a lot of legwork on behalf of the franchisee. Depending on the business you chose, you may have to solicit your own clients, as in technical and computer support franchises. If you are considering a concept that requires outside sales skills and you lack them, you may want to rethink your choice.
4. Competition. There are approximately 160,000 franchises in operation in the US. That means a lot of competition. If your market already is saturated with a concept you may want to consider something that still is popular but not yet tapped out. Medical spas and restaurants offering healthy choices are gaining ground among the public but there is abundant room on the business owner side.
5. Unrealistic Expectations. New franchisees are notorious for having very high expectations for their businesses. It may take 2-3 years before you see a profit and if you don’t plan for that you may sink before you have a chance to swim.

A word to the wise: If you don’t like people you should not buy a franchise. If you want to make it you have to put in long hours and work with all kinds of personalities. It’s an undeniable fact that some people are more difficult to interact with than others. As a business owner you need to be able to interact well with people from all walks of life. The ability to manage employees also is essential to the success of your business.

Navy Seal Special Operations Warriors, Dead For Nothing

Petty Officer 2nd Class Marc Alan Lee was one of the world’s most highly skilled unconventional warriors - a U.S. Navy seal. But on the morning of August 2, the 28-year-old Oregon native was detached to a conventional U.S. Army force tasked with hunting-down guerrillas in a Ramadi neighborhood where four U.S. Marines had been killed the previous week.

When a firefight erupted between the Americans (and an accompanying Iraqi force) and a band of guerrillas, one seal was wounded, shot in the cheek by an enemy sniper. In the ensuing hour-long fight, stretching over several city blocks, another seal was struck in the shoulder.

Lee, who positioned himself between the two men, provided covering fire as they were evacuated. But he was later killed by a blast of machinegun fire. Lee was the first seal to die in Iraq. His actions during the fight have been reported as “heroic,” and he has been posthumously awarded the Silver Star to go along with his Bronze Star medal (with Combat V), Purple Heart, and a Combat Action Ribbon. But some members of the Naval Special Warfare community are telling me he did not have to die, with one officer contending, “They’re burning up seal.” The problem lies in the manner in which seals and other special operators are being deployed and for what kinds of missions.

“Special Operations warriors are not dispensable assets,” says Reserve seal Commander Mark Divine, who has been to Iraq several times and was tasked with evaluating the performance of a new Marine Corps special operations force during its developmental stages in 2004. “It will take two years to replace Lee with another combat-ready seal.”

The seal community is undermanned as it is, and it is the Navy’s number-one recruiting priority.” Divine’s concerns are based on the fact that the U.S. Defense Department is looking to boost its numbers of special operators, currently totaling about 40,000, by 15 percent over the next four years. SEALs, less than 2,500 men, must increase by about 20 percent, and without reducing standards.

The Global War on Terror - with all of its backdoors and shadows and high-tech, asymmetrical, rapidly changing battle spaces - has placed an enormous demand on U.S. special-warfare units. After all, these are the guys tasked with operating in the darkest environs. Consequently, taking a smart, committed young man with an athletic bent (Lee himself was a star soccer player in high school) and transforming him into a Navy SEAL is neither cheap - about $350,000 a copy - nor easy. Most seal hopefuls are unable to pass the entry physical fitness test. And most that do pass the PFT simply don’t have what it takes to become a seal.

The attrition rate is extremely high for seals: A staggering 80 percent fail to complete the hellish six-months of Basic Underwater Demolition/seal training (BUD/S). Those who do survive BUD/S must again prove themselves in an equally demanding post-graduate period with an active SEAL Team before officially becoming seals.

Special-operations teams like SEALs - including the super-secret Naval Special Warfare Development Group (formerly seal Team Six) - the Army’s special-operations forces (from Rangers to Green Berets to Delta), Air Force special-tactics teams, and the Marine Corps’ Force Recon and the brand-new Marine Corps Special Operations Command (MARSOC) teams, are responsible for conducting special missions, including counterterrorism, hostage rescues, prisoner snatches, foreign military training, special reconnaissance, sabotage, direct action, and the targeting of enemy leaders, among other highly sensitive operations.

And many of those operations - though unknown thus never reported - have tremendous strategic relevance. “In the context of Iraq, SEALs, who comprise a fraction of the Navy’s total force, are trained to handle those kinds of missions,” Divine tells National Review Online. “Every man is a critical asset in the war on terror. So to squander a life in support of a general cordon and search operation is just wrong.”

Divine says he first witnessed such misuse of SEALs back in 2004.”The conventional commanders would send a formal or informal request to the JSOTF [Joint Special Operations Task Force] for some sniper team support, and if the guys [special operators] were not employed they would usually say, ‘okay,’” Divine says. “The [seal] Team guys did not mind because they wanted action.

“But a 24-year-old’s motivation, and then the sound battlefield judgment on the part of the special-operations force leaders are two different things altogether. SEALs will always run toward the sound of the guns. It’s up to the leaders to protect them so that they can perform the high-value missions the taxpayers put them through training for.” Former SEAL John Chalus, who had one combat tour in Vietnam and whose two sons would later serve in the Navy (one of whom was a seal), tells NRO, ” seals should not be combined with regular units unless the regular unit is used to support the special operation.”

Conventional units often provide security for special operators, setting up a perimeter around the operation and “keeping the bad guys at bay,” says Chalus. And of course, special operators often conduct reconnaissance and gather intelligence for conventional operations. Richard Marcinko, the founder and first commander of seal Team Six, as well as the best-selling author of the Rogue Warrior book series, compares employing SEALs in a conventional capacity to “driving a Ferrari across the desert like a dune-buggy.”

It is a “waste of training,” Marcinko tells NRO. “The conventional force commanders use them for conventional missions for two primary reasons. First, they know they have a mature warrior [in a SEAL]. He’s been to a lot of schools, and he’s not some 19-year-old kid with limited training. Second, using SEALs or other highly trained Spec Ops guys protects whoever is in charge of the conventional operation. It’s kind of a political cover you’re thing to say, ‘hey, I sent in the teams that wouldn’t embarrass me.’”

Conventional commanders know SEALs will almost always kill or capture any bad guys encountered. Commanders also have an appreciation for the war-fighting skills special operators like SEALs might impart to conventional soldiers and sailors. And the SEALs themselves are always willing to pitch in on missions outside of their traditional roles. “Particularly the young kids who have just come out of BUD/S,” says Marcinko. “They’ve never been in combat, and they want to test what they’re made of.”

Some seals have told me that actual operations seem not nearly as tough as their training. But unlike a gun battle, almost no one dies in training, even training as high-speed and dangerous as that of the seals. A former U.S. Marine infantry leader, W. Thomas Smith Jr. writes about military issues and has covered conflict in the Balkans and on the West Bank. He is the author of five books, and his articles appear in a variety of publications.

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