Analysis of variance models

Analysis of variance models Abstract: Analysis of variance (ANOVA) models has become widely used tool and plays a fundamental role in much of the application of statistics today. Two-way ANOVA models involving random effects have found widespread application to experimental design in varied fields such as biology, econometrics, quality control, and engineering. The article is comprehensive presentation of methods and techniques for point estimation, interval estimation, estimation of variance components, and hypotheses tests for Two-Way Analysis of Variance with random effects. Key words: Analysis of variance; two-way classification; variance components; random effects model 1. Introduction The random effects model is not fraught with questions about assumptions as is the mixed effects model. Concerns have been expressed over the reasonableness of assuming that the interaction term abij is tossed into the model independently of ai and bj . However, uncorrelatedness, which with normality becomes independence, does seem to emerge from finite sampling models that define the interaction to be a function of the main A and B effects. The problem usually of interest is to estimate the components of variance. The model (1) is referred to as a cross-classification model. A slightly different and equally important model is the nested model. For this latter model see (5) and the related discussion. 2. Estimation of variance components The standard method of moments estimators for a balanced design(i.e., = n ) are based on the expected mean squares for the sums of nij squares. The credentials of the estimators (4) are that they are uniform minimum variance unbiased estimators (UMVUE) under normal theory, and uniform minimum variance quadratic unbiased estimators (UMVQUE) in general. They do, however, suffer the embarrassment of sometimes being negative, except for .e which is always positive. The actual maximum likelihood estimators would occur on a boundary rather than being negative. The best way is to always adjust an estimate to zero rather than report a negative value. It should certainly be possible to construct improved estimators along the lines of the Klotz-Milton-Zacks estimators used in the one-way classification. However, the details on these estimators have not been worked out by anyone for the two-way classification. Estimating variance components from unbalanced data is not as straight-forward as from balanced data. This is so for two reasons. First, several methods of estimation are available (most of which reduce to the analysis of variance method for balanced data), but no one of them has yet been clearly established as superior to the others. Second, all the methods involve relatively cumbersome algebra; discussion of unbalanced data can therefore easily deteriorate into a welter of symbols, a situation we do our best (perhaps not successfully) to minimize here1. On the other hand, extremely unbalanced designs are a horror story. A number of different methods have been proposed for handling them, but all involve extensive algebraic manipulations. The technical detail required to carry out these analyses exceeds the limitations set for this article. On occasion factors A and B are such that it makes no sense to postulate the existence of interactions, so the terms abij should be dropped from (1). In this case .ab disappears from (3) and the estimators for .a and 1 Djordjevic V., Lepojevic V., Henderson?s approach to Variance Components estimation for unbalanced data, Facta Universitatis, Vol.2 No.1, 2004. pg. 59 Another variation on the model (1) gives rise to the nested model. In general, the nested model for components of variance problems occur more frequently in practice than does the cross-classification model. In the nested model the main effects for one factor, say, B, are missing in (1). The reason is that the entities creating the different levels of factor B are not the same for different levels of factor A. For example, the levels (subscript i ) of factor A might represent different litters, and the levels (subscript j) of factor B might be different animals, which are a different set for each litter. The additional subscript k might denote repeated measurements on each animal. To be specific, the formal model for the nested design is: and independence between the different lettered variables. It is customary with this model to use the symbol b rather than ab because the interpretation for this term has changed from synergism or interaction to one of a main effect nested inside another main effect. For a balanced design the method of moments estimators are based on the sums of squares: which have degrees of freedom I-1, I (J-1), and IJ(n-1) , respectively. The mean squares corresponding to (7) have the expectations: The increasing tier phenomenon exhibited in (8) holds for nested designs with more than two effects. The only complication arises when one or more of the estimates are negative. This is an indication that the corresponding variance components are zero or negligible. One might want to resent any negative estimates to zero, combine the adjacent sums of squares, and subtract the combined mean squares from the mean squares higher in the tier. Extension of these ideas to the unbalanced design does not represent as formidable a task for the nested design as it does for the crossed design. The sums of squares (7), appropriately modified for unbalanced designs, form the basis for the analysis. It is even possible to allow for varying numbers Ji of factor B for different levels of factor A. 3. Tests for variance components The appropriate test statistics for various hypothesis of interest can be determined by examining the expected mean squares in the table of analysis of variance. However, we encounter the difficulty that even under the normality assumption exact F tests may not be available for some of the   An analogous F statistic provides a test for H0:.b 2 =0 . Under the alternative no null hypotheses, these ratios are distributed as the appropriate ratios of multiplicative constants from (10) times central F random variables. Thus power calculations are made from central F tables for fixed effects models. The F tests of H :.2 =0 and H :.2 =0 mentioned in the 0 ab 0 a preceding paragraph are uniformly most powerful similar tests. However, they are not likelihood ratio tests, which are more complicated because of boundaries to the parameter space. Although their general use is not recommended because of their extreme sensitivity to no normality, confidence intervals can be constructed based on the distribution theory 10. The complicated method of Bulmer (1957), which is described in Scheffe [11 pg. 27-28], is available. However, the approximate method of Satterhwaite [10 pg. 110-114] may produce just as good results. The distribution theory for the sums of squares (7) used in conjunction with nested designs is straightforward and simple. To test the hypothesis H0:.b2 =0 one uses the F ratio MS (B)/MS(E), and to test H0:.a 2 =0 the appropriate ratio is MS (A)/MS (B). In all nested designs the higher line in the tier is always tested against the next lower line. If a conclusion is reached that .b2 =0 , then the test of H0:.a2 =0 could be improved by combining SS (B) and SS(E) to form a denominator sum of squares with I(J-1) + I J (n-1) degrees of freedom. Under alternative hypotheses these F ratios are distributed as central F ratios multiplied by the appropriate ratio of variances. This can be exploited to produce confidence intervals on some variance ratios. However, one still needs to rely on the approximate Satterhwaite [10 pg. 110-114] approach for constructing intervals on individual components. 4. Estimations of individual effects and overall mean For the two-way crossed classification with random effects interest The classical approach would be to use the estimates ?^ij = yij. The idea would be to shrink the individual estimates toward the common mean as in. where the shrinking factor S depends on the sums of squares SS (E), SS (AB), SS(B), and SS(A) . Unfortunately, the specific details on the construction of an appropriate S have not been worked out for the two-way classification as they have been for the one-way classification. Alternatively, attention might center on estimating a1,, aI , or, equivalently, on the levels of factor B. Again, specific estimators have not been proposed to date for handling this situation. In the nested design one sometimes wants an estimate and confidence interval for ?. One typically uses ?^= y . In the balanced case this estimator has variance. This can be estimated by MS (A)/I J n. In the unbalanced case an estimate for the variability of y can be obtained by substituting estimates .^2, .^b2 and 2 into the expression for the variance of y . Alternative estimators using different weights may be worth considering in the unbalanced case. 5. Conclusion Analysis of variance (ANOVA) models have become widely used tools and play a fundamental role in much of the application of statistics today. In particular, ANOVA models involving random effects have found widespread application to experimental design in a variety of fields requiring Two-Way Analysis of Variance for Random Models measurements of variance, including agriculture, biology, animal breeding, applied genetics, econometrics, quality control, medicine, engineering, and social sciences. With a two-way classification there are two distinct factors affecting the observed responses. Each factor is investigated at a variety of different levels in an experiment, and the combination of the two factors at different levels form a cross-classification. In a two-way classification each factor can be either fixed or random. If both factors are random, the model is called a random effects model. Various estimators of variance components in the two-way crossed classification random effects model with one observation per cell are compared under the standard assumptions of normality and independence of the random effects. Mean squared error is used as the measure of performance. The estimators being compared are: the minimum variance unbiased, the restricted maximum likelihood, and several modifications of the unbiased and the restricted maximum likelihood estimators.

Marriage and New Brand-name Establishments

– What a surprise to see you here. How many ages, since we’ve last seen, what’s new? – Oh, a lot of things. We’ve moved to another city, it’s much more comfortable to live in a city, not in countryside. It’s faster to get to the job, there are much more amusements and children are enraptured with their new school! – As for me, I don’t agree with you that live in the city is much easier, it’s healthier to live in the countryside, and, besides, what happened to you? I remember, that you had told, that you’ll never move to another place. We were all delighted about our city after graduation.By the way it has changed much. – You see, life moves fast, so I try to be in the swim. Now I think it’s time to move in the cities, it’s much more interesting there, much more employment prospects. And how are you? – I have left in our town after graduation. My life has changed a lot. We were gra duated as lawyers, but then I realized that law is not something for me, so I became a designer. – Oh, dear, what you are talking about? Are there any other women who would graduate from university of law and become a designer? Oh, well, you’ve always amazed me with your decisions.So, I see you’ve got married as well. – Yes, do you remember Harry? Our group mate? He is my husband. – Oh, what a surprise, my congratulations! Is he is still working as a legal assistant? – No, he is a court-appointed attorney. He used to work hard, finally he got this high position, I’m so proud of him. – You seem to have a very happy family life. I have never thought that you would become such a nice and adorable wife, you used to tell, that you’re going to take up the world as the best lawyer the earth ever seen and now you tell me, that you’re married and proud of your husband making your career. I do, I used to work as attorney as well, but I have left the job, because it’s very difficult for me to combine job and family. Now I am making some money on the side being a designer for one of those new brand-name establishments in our town. For me it’s very important to be a good wife, and, by the way, we’re waiting a baby. – Are you serious? Such a great piece of news! My congratulations. And as for me, I’ve got divorced. My husband didn’t like that I’m working so much, it was the time, when I was coming up to the world, I didn’t like the idea to risk with my career for living with him, so it was the end. But I know that you have a wonderful daughter, how old is she? – She is nine. We’ve got divorced after her birth. It was a good experience for me. I will not marry anyone, who’s going to teach me how to live. – You sound very independent. Are you really happy being single, I mean are you really sure of that kind, that happiness is when you’re making up your career and there’s no man in your life, who would take care of you? – Oh no, I just don’t want to live with somebody, who thinks, that my opinion is not that important as his.As for family, I hope to meet somebody, a true love, you see, and I feel, that this moment is quite near. – You’re right, and I’m sure, you’ll meet it very soon. Do you remember Patrick? – Oh yes, that boy from our group, that I used to like so much. – He was quite interested, when he heard that you’re coming to our city and he wants to see you. What do you think about going to an alumni reunion this evening? – I’d love to! I’ll be there. – Ok, see ya there, I’ll wait you in the hall at 6 pm – Ok)

Zara: It for Fast Fashion

Zara: IT for Fast Fashion Identification of issues: The case study, Zara: IT for Fast Fashion, focuses on the retail giant, Inditex, and how its largest retail chain, Zara, has been so successful with their business model of high fashion, product variation, low cost, speed, and flexibility. Several issues are identified in this case study. One glaring issue that is apparent relates to the fact that a long term Information Technology (IT) strategy does not exist. There is no formal system in place to plan and predict for their future needs, including operational and capital expenses.Another issue consists of the retailer not having a centralized distribution system in place, their stores do not share inventory counts, and the managers do not have a system in place to look up their inventory balances in their stores or other stores, (they accomplish this by canvassing the stores). Another significant current issue relates to the fact that their current IT system is unsustainable, as th e equipment is obsolete and unsupported by Microsoft. Their IT system is not wireless, their screens are small, they are using styluses, which can be cumbersome, and older technology such as floppy disks and modems.The last issue involves a lack of shared knowledge of the current system in place; one person is relied upon and depended for knowledge of the systems functionality. Being so dependant upon one person places the whole system at risk. Importance of the key issue: The key issue in this case study involves whether or not Inditex should upgrade the retailer’s information technology infrastructure and capabilities or whether they should continue using their current system. The problem that Zara faces now is that their current system, P-O-S (Point of Sales terminals), runs on DOS, which Microsoft does not support any longer.Any hardware change in the POS terminal would not be compatible with their current POS software. Without an upgrade, they risk that their current sup plier could no longer support them. Investing in IT infrastructure is inevitable as Microsoft DOS is obsolete technology and there is no guarantee that their POS vendor will continue supplying the same terminal without changes to their hardware. Personal Digital Assistants (PDA’s) are currently used in all Zara stores, POS terminals are not connected with Zara’s headquarters or with other stores. here is no system in place to link employees’ daily sales, causing employees to copy this information onto a floppy disk. Zara’s success and main business strategy is dependent upon their ability to respond very quickly to the demands of their customers. By upgrading their current system, they could add functionality and capabilities that could resolve other issues they face, such as sharing inventory, and being proficient at matching supply and demand. They can comfortably meet their mission by keeping current with fashion.Without the infrastructure to support i t, it would be impossible to accomplish, as they would not have the security controls, and back up systems in place. This issue is more important than any other issue to resolve, as Zara’s mission, success and future depends on technology reliability and accuracy. If this issue is not resolved, it is impossible to address all of the other issues identified above. Key Stakeholders: There are numerous stakeholders who are affected by the key issue of whether or not they should upgrade their IT Zara’s customers system want the latest fashions in stock, in their size and color, in a timey fashion.By having an upgraded, efficient IT system, Zara’s customers could experience better inventory controls to meet their needs. This in turn develops customer loyalty which equates to a higher volume of sales. Another key stakeholder is Zara’s employees. Employees want job security. A well defined, upgraded, efficient IT system can assist in sales volume, which turns in to profit for the company. Employees also want to reduce their workload and redundancy. Their current system does not take advantage of functional automation and communication, which can increase their work load.Another stakeholder, Zara’s IT vendor, certainly wants to maintain their business relationship with them, but may find it difficult to continue conducting business with a company who uses such an obsolete, unsupported, vulnerable system. Zara’s managers are also important stakeholders in the decision to upgrade. Their managers want the current POS system to do more, such as look up inventory balances in stores. This basic functionality is lacking. They want to be in a position to negotiate pricing and keep up with their competitors.Zara’s shareholders are interested in maintaining the financial success that Zara has experienced. They want a system in place to assure that their current fashion demands are met, that a system is in place to account for and share merchandise. They want to be able to invest wisely and innovate themselves to stay fresh in the apparel industry. Another stakeholder, Zara’s suppliers wants a functional IT system to provide better lead time for orders and materials, and to be able to communicate in a timely, seamless manner. Causes of the issue:There are many causes that contribute to the situation that Zara faces at the moment. Having a mission and vision without having a strategic plan to get there is a contributing factor. Having a decentralized decision making system in place can also be a root cause. Having equipment that is obsolescence is a result of the above factors. Not having staff and systems in place to effectively plan for the future, leads to antiquated equipment and manual, cumbersome, inaccurate, processes. Other factors responsible for the lack of strategic IT planning at Zara include their current business model and leadership complacency.Alternative solutions: There are three alter native solutions. The first would be to purchase the current POS terminals from their vendors so they can support their needs in case the vendor changes their machine to new technology, and continue functioning the way they have been. The second solution involves hire a consulting firm to review their situation and conduct a strategic financial analysis of their options. The third solution to the key issue identified is to proceed in upgrading their current IT system and add functional capabilities to meet the needs of their organization.Recommendations: I recommend the third solution, that Zara purchase and implementing a new POS networking system. This recommendation would create a robust system that is more responsive to Inditex’s supply chain network. It also removes the risk of the system becoming obsolete and non- compatible with the vendor’s machine upgrade. It decreases their exposure for system failures, helps to maintain and improve efficiency of decentraliza tion because information flow can be improved between stores, distribution chains and vendors.The most important aspect of Zara’s approach to information technology includes the ability to meet the needs of their customers, whether that involves accuracy, timeliness, marketing, demand, or communication. Their original business model involved linking demand to manufacturing, and linking manufacturing to distribution, this involves a reliable, compatible IT system. Upgrading the POS applications to include additional functionality, such as networking capability, and the ability to share inventory with other stores, only makes their corporation more productive and efficient.The use of larger screens, and keyboards, vs. smaller screens and styluses would also be beneficial to the employees and customers. There are however pitfalls to this recommendation. Above and beyond the obvious capital expense of the equipment and software, implementing the recommended solution in the short term may require restructuring the IT department to include a Chief Information Officer (CIO). The CIO would also be responsible to conduct a comprehensive review of current industry technologies and determine which IT capabilities and functionalities will best support the company’s strategic mission.This person would also be responsible to initiate a formal IT budgeting process that is part of the broader capital budget, and create a formal process for selecting and prioritizing IT projects that includes both financial and non-financial metrics (Porter, M, 2001). In the medium term, Zara may consider an outside team to initiate this IT change. It is questionable if Zara currently has the time and internal talent to effect the change. An outsourced professional team may accomplish this task, while allowing personnel to focus on their day to day operations.Zara can cross train a few IT personnel to work closely with the implementation team, to assure a seamless transition. A à ¢â‚¬Å"train the trainer† may be beneficial. This may mean that they may have to hire replacement personnel on a temporary basis. In the long term Zara should develop a â€Å"long-term IT renewal plan† as recommended by Feld and Stoddard, 2004, to develop a plan to maintain and sustain their new system; this requires time, money and talent. Incorporating the three principles in executing IT effectively: A long termIT renewal plan linked to corporate strategy, a simplified unifying corporate technology platform and a highly functional, performance-oriented IT organization would benefit Zara (Feld and Stoddard, 2004). Keeping up with technology allows Zara to focus on future fashion trends, with effective IT they will be able to stay ahead of the curve and keep their leadership. They will sustain their business model based on short deadlines, decrease quantities, and updated styles and fashion.If Zara anticipates opening up new stores in the future, they would need to upgr ade their system anyway. If they opened up new stores with new technology, their current technology would not be compatible and the stores could not communicate effectively with one another and share information. The second solution mentioned above, which involves hiring a consulting firm to review their situation and conduct a strategic financial analysis of their options is not in the best interest of the corporation.Hiring consultants takes time and energy and are expensive. They are not familiar with the organizations structure, strengths, weaknesses or capabilities. Financial resources would be better spent on the purchase of new upgraded equipment vs. putting off the inevitable. The first solution described above, purchasing the current POS terminals from their vendors so they can support their needs in case the vendor changes their machine to new technology and continuing to function they way they have been is not an option, if they want to remain viable.Change is unavoidable , as this profitable, highly reputable company cannot continue to function with obsolete equipment. Obsolete equipment sets them up for failure in the event the equipment fails or needs repair. It does not allow them to implement a systematic plan to move the organization forward, instead it stagnates their capabilities. The likely outcomes of my recommendation would be an efficient, accurate, timely IT infrastructure that communicates well with all stores, accurately accounts for all inventory, allowing manual processes to dissolve.This creates greater efficiencies on the part of the staff. Changing and upgrading their IT system would compensate for their internal communication weaknesses. Upgrading the POS terminals to modern inventory management software, would allow orders to be made on a daily basis instead of twice a week. This would allow the demand and supply to be matched more accurately, making the production process leaner. Inventory management software would lso allow de signers to follow the sales of garments more closely, instead of relying on manual orders from store managers. Store managers could send new fashion or fabric ideas over the internet to headquarters. This constant monitoring and updating can give designers an advantage over the competition in developing new styles and keeping up with the latest fashions. Updating their communication and IT system sooner, rather than later would overall sustain viability of the corporation and enhance their business success. Zara: It for Fast Fashion Zara: IT for Fast Fashion Identification of issues: The case study, Zara: IT for Fast Fashion, focuses on the retail giant, Inditex, and how its largest retail chain, Zara, has been so successful with their business model of high fashion, product variation, low cost, speed, and flexibility. Several issues are identified in this case study. One glaring issue that is apparent relates to the fact that a long term Information Technology (IT) strategy does not exist. There is no formal system in place to plan and predict for their future needs, including operational and capital expenses.Another issue consists of the retailer not having a centralized distribution system in place, their stores do not share inventory counts, and the managers do not have a system in place to look up their inventory balances in their stores or other stores, (they accomplish this by canvassing the stores). Another significant current issue relates to the fact that their current IT system is unsustainable, as th e equipment is obsolete and unsupported by Microsoft. Their IT system is not wireless, their screens are small, they are using styluses, which can be cumbersome, and older technology such as floppy disks and modems.The last issue involves a lack of shared knowledge of the current system in place; one person is relied upon and depended for knowledge of the systems functionality. Being so dependant upon one person places the whole system at risk. Importance of the key issue: The key issue in this case study involves whether or not Inditex should upgrade the retailer’s information technology infrastructure and capabilities or whether they should continue using their current system. The problem that Zara faces now is that their current system, P-O-S (Point of Sales terminals), runs on DOS, which Microsoft does not support any longer.Any hardware change in the POS terminal would not be compatible with their current POS software. Without an upgrade, they risk that their current sup plier could no longer support them. Investing in IT infrastructure is inevitable as Microsoft DOS is obsolete technology and there is no guarantee that their POS vendor will continue supplying the same terminal without changes to their hardware. Personal Digital Assistants (PDA’s) are currently used in all Zara stores, POS terminals are not connected with Zara’s headquarters or with other stores. here is no system in place to link employees’ daily sales, causing employees to copy this information onto a floppy disk. Zara’s success and main business strategy is dependent upon their ability to respond very quickly to the demands of their customers. By upgrading their current system, they could add functionality and capabilities that could resolve other issues they face, such as sharing inventory, and being proficient at matching supply and demand. They can comfortably meet their mission by keeping current with fashion.Without the infrastructure to support i t, it would be impossible to accomplish, as they would not have the security controls, and back up systems in place. This issue is more important than any other issue to resolve, as Zara’s mission, success and future depends on technology reliability and accuracy. If this issue is not resolved, it is impossible to address all of the other issues identified above. Key Stakeholders: There are numerous stakeholders who are affected by the key issue of whether or not they should upgrade their IT Zara’s customers system want the latest fashions in stock, in their size and color, in a timey fashion.By having an upgraded, efficient IT system, Zara’s customers could experience better inventory controls to meet their needs. This in turn develops customer loyalty which equates to a higher volume of sales. Another key stakeholder is Zara’s employees. Employees want job security. A well defined, upgraded, efficient IT system can assist in sales volume, which turns in to profit for the company. Employees also want to reduce their workload and redundancy. Their current system does not take advantage of functional automation and communication, which can increase their work load.Another stakeholder, Zara’s IT vendor, certainly wants to maintain their business relationship with them, but may find it difficult to continue conducting business with a company who uses such an obsolete, unsupported, vulnerable system. Zara’s managers are also important stakeholders in the decision to upgrade. Their managers want the current POS system to do more, such as look up inventory balances in stores. This basic functionality is lacking. They want to be in a position to negotiate pricing and keep up with their competitors.Zara’s shareholders are interested in maintaining the financial success that Zara has experienced. They want a system in place to assure that their current fashion demands are met, that a system is in place to account for and share merchandise. They want to be able to invest wisely and innovate themselves to stay fresh in the apparel industry. Another stakeholder, Zara’s suppliers wants a functional IT system to provide better lead time for orders and materials, and to be able to communicate in a timely, seamless manner. Causes of the issue:There are many causes that contribute to the situation that Zara faces at the moment. Having a mission and vision without having a strategic plan to get there is a contributing factor. Having a decentralized decision making system in place can also be a root cause. Having equipment that is obsolescence is a result of the above factors. Not having staff and systems in place to effectively plan for the future, leads to antiquated equipment and manual, cumbersome, inaccurate, processes. Other factors responsible for the lack of strategic IT planning at Zara include their current business model and leadership complacency.Alternative solutions: There are three alter native solutions. The first would be to purchase the current POS terminals from their vendors so they can support their needs in case the vendor changes their machine to new technology, and continue functioning the way they have been. The second solution involves hire a consulting firm to review their situation and conduct a strategic financial analysis of their options. The third solution to the key issue identified is to proceed in upgrading their current IT system and add functional capabilities to meet the needs of their organization.Recommendations: I recommend the third solution, that Zara purchase and implementing a new POS networking system. This recommendation would create a robust system that is more responsive to Inditex’s supply chain network. It also removes the risk of the system becoming obsolete and non- compatible with the vendor’s machine upgrade. It decreases their exposure for system failures, helps to maintain and improve efficiency of decentraliza tion because information flow can be improved between stores, distribution chains and vendors.The most important aspect of Zara’s approach to information technology includes the ability to meet the needs of their customers, whether that involves accuracy, timeliness, marketing, demand, or communication. Their original business model involved linking demand to manufacturing, and linking manufacturing to distribution, this involves a reliable, compatible IT system. Upgrading the POS applications to include additional functionality, such as networking capability, and the ability to share inventory with other stores, only makes their corporation more productive and efficient.The use of larger screens, and keyboards, vs. smaller screens and styluses would also be beneficial to the employees and customers. There are however pitfalls to this recommendation. Above and beyond the obvious capital expense of the equipment and software, implementing the recommended solution in the short term may require restructuring the IT department to include a Chief Information Officer (CIO). The CIO would also be responsible to conduct a comprehensive review of current industry technologies and determine which IT capabilities and functionalities will best support the company’s strategic mission.This person would also be responsible to initiate a formal IT budgeting process that is part of the broader capital budget, and create a formal process for selecting and prioritizing IT projects that includes both financial and non-financial metrics (Porter, M, 2001). In the medium term, Zara may consider an outside team to initiate this IT change. It is questionable if Zara currently has the time and internal talent to effect the change. An outsourced professional team may accomplish this task, while allowing personnel to focus on their day to day operations.Zara can cross train a few IT personnel to work closely with the implementation team, to assure a seamless transition. A à ¢â‚¬Å"train the trainer† may be beneficial. This may mean that they may have to hire replacement personnel on a temporary basis. In the long term Zara should develop a â€Å"long-term IT renewal plan† as recommended by Feld and Stoddard, 2004, to develop a plan to maintain and sustain their new system; this requires time, money and talent. Incorporating the three principles in executing IT effectively: A long termIT renewal plan linked to corporate strategy, a simplified unifying corporate technology platform and a highly functional, performance-oriented IT organization would benefit Zara (Feld and Stoddard, 2004). Keeping up with technology allows Zara to focus on future fashion trends, with effective IT they will be able to stay ahead of the curve and keep their leadership. They will sustain their business model based on short deadlines, decrease quantities, and updated styles and fashion.If Zara anticipates opening up new stores in the future, they would need to upgr ade their system anyway. If they opened up new stores with new technology, their current technology would not be compatible and the stores could not communicate effectively with one another and share information. The second solution mentioned above, which involves hiring a consulting firm to review their situation and conduct a strategic financial analysis of their options is not in the best interest of the corporation.Hiring consultants takes time and energy and are expensive. They are not familiar with the organizations structure, strengths, weaknesses or capabilities. Financial resources would be better spent on the purchase of new upgraded equipment vs. putting off the inevitable. The first solution described above, purchasing the current POS terminals from their vendors so they can support their needs in case the vendor changes their machine to new technology and continuing to function they way they have been is not an option, if they want to remain viable.Change is unavoidable , as this profitable, highly reputable company cannot continue to function with obsolete equipment. Obsolete equipment sets them up for failure in the event the equipment fails or needs repair. It does not allow them to implement a systematic plan to move the organization forward, instead it stagnates their capabilities. The likely outcomes of my recommendation would be an efficient, accurate, timely IT infrastructure that communicates well with all stores, accurately accounts for all inventory, allowing manual processes to dissolve.This creates greater efficiencies on the part of the staff. Changing and upgrading their IT system would compensate for their internal communication weaknesses. Upgrading the POS terminals to modern inventory management software, would allow orders to be made on a daily basis instead of twice a week. This would allow the demand and supply to be matched more accurately, making the production process leaner. Inventory management software would lso allow de signers to follow the sales of garments more closely, instead of relying on manual orders from store managers. Store managers could send new fashion or fabric ideas over the internet to headquarters. This constant monitoring and updating can give designers an advantage over the competition in developing new styles and keeping up with the latest fashions. Updating their communication and IT system sooner, rather than later would overall sustain viability of the corporation and enhance their business success.

How to Use a My Service Canada Account

The My Service Canada Account (MSCA) is available from Service Canada, the federal department charged with delivering a wide variety of government services. The account provides secure online access to view and update your personal information on Employment Insurance (EI), the Canada Pension Plan (CPP), and Old Age Security (OAS). How to Obtain an Access Code Before you can register for a My Service Canada Account, you need an access code—either an EI access code if you are applying for EI benefits or a Personal Access Code, which you must request. The four-digit EI Access Code is printed in the shaded area on the benefit statement mailed to you after you apply for Employment Insurance. To request a seven-digit Personal Access Code (PAC), read the information on the Request a Personal Access Code page. Read and print the Privacy Notice Statement for your records. Select continue, provide the following information, and submit your: Social Insurance NumberFirst nameLast nameDate of birthMothers maiden namePostal code and address information It will take five  to 10 days to receive your PAC by mail. Once you have an access code, you can register for a My Service Canada Account online. How to Register and Log In At the MSCA website, you can choose between logging in with CGKey using a Government of Canada User ID and password or using credentials you may already have with a Sign-In Partner, such as those you use for online banking. When you use a Sign-In Partner, Service Canada will not share personal information with the partner about the government services you access and the partner will not provide personal information it holds to Service Canada during the login process. Service Canada will not know which partner you are using. If you are a first-time user, follow the registration instructions to complete the sign-up process before logging in. GCKey Registration First, read and accept the terms and conditions. Be prepared to: Create a User IDCreate recovery questions, answers, and hintsCreate and confirm a password Sign-In Partner Registration Read and agree to the terms and conditionsSelect a Sign-In Partner Employment Insurance (EI) Once you are logged in, you can use the My Service Canada Account tool to view your electronic Records of Employment (ROEs) and information on your EI claim, including your weekly benefit rate, the start and end date of your claim, the start and end of your waiting period, your allowable earnings, the number of weeks you will be entitled to receive EI benefits, the number of weeks of EI benefits you have already received, payment dates, and details about payment deductions. This account tool also allows you to: View information on past EI claimsSubmit an Absence From Canada formSubmit a Course or Training formPrint your T4E tax slip for EI benefits to use when filing your income tax returnStart or stop the mailing of your T4E tax slipsRegister to pay EI premiums on your self-employment incomeChange your address or telephone informationSign up for direct deposit or change your banking information Canada Pension Plan (CPP) The My Service Account allows you to view information about your Canada Pension Plan (CPP) benefits and view and print your CPP Statement of Contributions. You can also use this tool to: Get an estimate of your CPP retirement benefitsPrint your T4A(P) tax slip for CPP benefits to use when you file your income taxesStart or stop the mailing of your T4A(P) tax slipsChange your address or telephone information (some exceptions apply)Sign up for direct deposit or change your banking information Old Age Security (OAS) Information on Old Age Security (OAS) benefits is also available in the My Service Account. The details of your benefits—including payment dates and monthly amounts—is found here. The tool also allows you to: Print your T4A (OAS) tax slip for OAS income for your income tax returnChange your address or telephone information (some exceptions apply)Sign up for direct deposit or change your banking information Questions and Assistance If you have difficulty using the My Service Canada Account tool, visit the nearest Service Canada Office. Experienced government personnel will be available to answer questions and provide assistance.